Bevo Agro Inc. Announces Third Quarter Results

LANGLEY, BC, May 27, 2013 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) is pleased to report sales for the third quarter ending March 31, 2013 of $3,567,427 an increase of 21.8% compared to sales of  $2,928,350 during the same quarter last year.   Sales for the nine months ending March 31, 2013 totaled $10,502,417, compared to sales of $8,861,139 the same nine months the previous year, an increase of 18.5%.  The increase in sales is a result of adding new clients and an overall increase in the number of plants ordered by clients.

Gross margins for the quarters ending March 31^st were $1,469,809 (41%) in 2013 and $1,449,500 (49%) in 2012. Margins for the nine month period were $3,017,602 (29%) compared to $2,937,327 (33%) the previous year.  Margins this year are challenged by increased wages brought on by increases in the provincial minimum wage. Purchase costs were also higher as a result of increased biological expenses due to pest and disease issues.  This issue has since been resolved, and the Company does not expect a similar recurrence going forward.

Operating expenses totaled $3,454,417 or 33% of revenues for the nine months ending March 31, 2013. Operating expenses for the same period last year were $3,359,718 or 38% of revenues.

Net earnings for the three months ending March 31, 2013 totaled $210,919 compared to $190,097 for the same period last year.  The nine month results show a loss of $297,015 versus a loss of $287,231 for the nine months ending March 31, 2012.

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

Financial Summary

3 months ending March 31	2013			2012
Sales	$3,567,427	100%		$2,928,350	100%
Cost of Sales	$2,097,618	59%		$1,478,850	51%
Gross Margin	$1,469,809	41%		$1,449,500	49%
Expenses
Operating & administrative	$257,943	7%		$256,290	9%
Administrative fees, wages & benefits	$273,955	8%		$278,717	10%
Amortization	$398,845	11%		$402,956	14%
Interest expenses	$220,047	6%		$231,980	8%
Provision for bad debts	$            0	0%		$            0	0%
	$1,150,790	32%		$1,169,943	40%
Earnings before taxes	$319,019	9%		$279,557	10%
Income taxes-future	$108,100	3%		$89,460	3%
Net earnings  for period	$210,919	6%		$190,097	6%
Earnings per Share	$0.01			$0.01
9 months ending March 31	2013			2012
Sales	$10,502,417	100%		$8,861,139	100%
Cost of Sales	$7,484,815	71%		$5,923,812	67%
Gross Margin	$3,017,602	29%		$2,937,327	33%
Operating & administrative	$796,615	8%		$720,434	8%
Administrative fees, wages & benefits	$815,328	8%		$808,157	9%
Amortization	$1,174,641	11%		$1,128,764	13%
Interest expenses	$667,833	6%		$672,383	8%
Provision for bad debts	$             0	0%		$   29,980	0%
	$3,454,417	33%		$3,359,718	38%
Earnings (loss) before taxes	-$436,815	-4%		-$422,391	-5%
Income taxes-future	-$139,800	-1%		-$135,160	-2%
Net earnings (loss) for period	-$297,015	-3%		-$287,231	-3%
Earnings per share	-$0.01			-$0.01

Bevo Agro's trailing twelve months comparative results are summarized below;

12 months ending	Mar 31 ,2011	Sept. 30, 2011	Mar 31 ,2012	Sept.30, 2012	Mar 31 ,2013
Sales	$19,433,694	$18,002,834	$17,483,472	$19,279,800	$20,539,020
Gross Margin	$5,095,781	$4,531,873	$4,237,149	$4,825,211	$4,838,147
Net earnings (loss)	$557,571	-$17,124	-$189,926	$581,891	$561,997
EBITDA	$2,787,441	$2,175,972	$2,073,968	$2,658,234	$2,632,729

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 39 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.

 

 

SOURCE: Bevo Agro Inc.

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