Bevo Agro Inc. announces third quarter results.

LANGLEY, BC, May 25, 2012 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) reports sales for the third quarter ending March 31, 2012 of $2,928,350 compared to sales of $3,346,268 during the same quarter last year.  Sales for the nine months ending March 31, 2012 were $8,861,139, compared to sales of $9,641,370 the previous year.  While the number of plant units sold increased,  the price per unit declined.

The gross margin for both the three month and nine month periods are comparable to last year's gross margins.

Operating expenses for the nine months ending March 31, 2012 are slightly higher than last year, primarily due to increased depreciation and interest attributable to costs relating to the completed five acre greenhouse expansion.

Net earnings for the three months ending March 31, 2012 totaled $190,097 compared to $287,524 for the same period last year.  The nine month results show a loss of $287,231 versus a loss of $53,177 for the nine months ending March 31, 2011.

Readers are encouraged to view the Company's unaudited financial statements and accompanying MD&A at www.sedar.com.

Financial Summary

For the 3 months ending	Mar 31 ,2012			Mar 31 ,2011
Sales	$2,928,350	100%		$3,346,268	100%
Cost of Sales	$1,478,850	51%		$1,735,927	52%
Gross Margin	$1,449,500	49%		$1,610,341	48%
Expenses
Operating & administrative	$256,290	9%		$348,652	10%
Admin. fees, wages & benefits	$278,717	10%		$265,534	8%
Amortization	$402,956	14%		$367,557	11%
Interest expenses	$231,980	8%		$171,944	5%
Provision for bad debts				$34,200	1%
	$1,169,943	40%		$1,187,887	35%
Earnings  from operations	$279,557	10%		$422,454	13%
Earnings before taxes	$279,557	10%		$422,454	13%
Income taxes-future	$89,460	3%		$134,930	4%
Net earnings for period	$190,097	6%		$287,524	9%
EBITDA	$914,493	31%		$961,955	29%
For the 9 months ending	Mar 31 ,2012			Mar 31 ,2011
Sales	$8,861,139	100%		$9,641,370	100%
Cost of Sales	$5,923,812	67%		$6,402,343	66%
Gross Margin	$2,937,327	33%		$3,239,027	34%
Operating & administrative	$720,434	8%		$844,299	9%
Admin. fees, wages & benefits	$808,157	9%		$806,939	8%
Amortization	$1,128,764	13%		$1,082,304	11%
Interest expenses	$672,383	8%		$511,789	5%
Provision for bad debts	$29,980	0%		$72,273	1%
	$3,359,718	38%		$3,317,604	34%
Earnings (loss) from operations	-$422,391	-5%		-$78,577	-1%
Income taxes-future	-$135,160	-2%		-$25,400	0%
Net earnings (loss) for period	-$287,231	-3%		-$53,177	-1%
EBITDA	$1,378,756	16%		$1,515,516	16%

Bevo Agro is North America's leading supplier of propagated agricultural plants, growing and distributing vegetable, flower, berry and other plant seedlings to North America's growers. Bevo propagates quality seedlings and plants for wholesale vegetable greenhouse growers, field growers and nursery operators from its 40 acre production facility.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Jack Benne, President
Bevo Agro Inc.
Phone: [phone]
Fax: [phone]
Email:  [email protected]