Bevo Agro Inc. Reports Increase In Sales and Profit

LANGLEY, BC, Feb. 24, 2016 /CNW/ - Bevo Agro Inc. (TSXV: BVO) achieved record operating and financial results for the second quarter and for the six months ending December 31, 2015.

Second Quarter Highlights (versus Q2 last year)

• Record Q2 sales of $6,776,711, an increase of 5.5% over sales of $6,422,391 in Q2 last year.
• Net earnings of $364,948 in the second quarter.
• EBITDA totaling $1,136,051, a 77% increase over EBITDA of $642,742 last year.

Year to date Highlights (versus the first six months of last year)

• Record sales $11,288,378, an increase of 8.8% over the same six month period last year.
• Net earnings of $241,479 for the six month period, versus a loss last year.
• EBITDA totaling $1,604,574, a 66.5% increase over last year.

Bevo Agro Inc. (BVO: TSXV) reports record sales of $ $6,776,711 for the second quarter ending December 31, 2015, an increase of 5.5% on sales of $6,422,391 last year.

Sales for the six months ending December 31, 2015 totaled $11,288,378, compared to sales of $10,370,796 for the same period the year earlier.  Sales for both the three month (Q2) and six month periods represent all-time record highs for the company during these respective periods.

The gross profit for the three months ending December 31, 2015 was $1,709,775 compared to $1,295,981 in the same quarter the previous year. The gross profit of $2,820,345 for the first six months was a 31% increase over $2,151,744 last year.

Expenses for the six months were $2,494,026 (22% of sales) compared $2,474,360 (24%) for the same six months last year.

The company has not provided for any bad debt write offs in the second quarter, since accounts receivable which are reviewed monthly, are current and collectible.

The net profit for the six months ended December 31, 2015 was $241,479 versus a loss of $188,455 for the same period last year.

Readers are encouraged to view the Company's unaudited financial statements as at December 31, 2015, and accompanying MD&A at www.sedar.com.

Financial Summary

Consolidated Interim Condensed Statements of Operations and Comprehensive Income (Loss)

For the three months ending	Dec 31, 2015			Dec 31, 2014		Change
Sales	$6,776,711	100%		$6,422,391	100%	$354,320
Cost of Sales	$5,066,936	75%		$5,126,410	80%	($59,474)
Gross Margin	$1,709,775	25%		$1,295,981	20%	$413,794
Expenses
Operating & administrative	$279,042	4%		$345,800	5%	($66,758)
Admin wages & benefits	$294,682	4%		$307,439	5%	($12,757)
Amortization	$447,394	7%		$415,500	6%	$31,894
Interest expenses	$195,489	3%		$209,846	3%	($14,357)
Total	$1,216,607	18%		$1,278,585	20%	($61,978)
Earnings (loss) from operations	$493,168	7%		$17,396	0%	$475,772
Other
Earnings before taxes	$493,168	7%		$17,396	0%	$475,772
Income taxes-future	$128,220			$4,530		$123,690
Net earnings (loss) for period	$364,948	5%		$12,866	0%	$352,082
per share	$0.00			$0.00
EBITDA	$1,136,051	17%		$642,742	10%	$493,309
per share	$0.04			$0.03
For the six months ending	Dec 31, 2015			Dec 31, 2014		Change
Sales	$11,288,378	100%		$10,370,796	100%	$917,582
Cost of Sales	$8,468,033	75%		$8,219,052	79%	$248,981
Gross Margin	$2,820,345	25%		$2,151,744	21%	$668,601
Expenses
Operating & administrative	$611,879	5%		$644,138	6%	($32,259)
Admin wages & benefits	$603,892	5%		$611,962	6%	($8,070)
Amortization	$886,365	8%		$805,383	8%	$80,982
Interest expenses	$391,890	3%		$412,877	4%	($20,987)
Total	$2,494,026	22%		$2,474,360	24%	$19,666
Earnings (loss) from operations	$326,319	3%		($322,616)	-3%	$648,935
Other	$0			$67,951
Earnings before taxes	$326,319	3%		($254,665)	-2%	$580,984
Income taxes-future	$84,840	1%		($66,210)	-1%	$151,050
Net earnings (loss) for period	$241,479	2%		($188,455)	-2%	$429,934
per share	$0.01			($0.01)
EBITDA	$1,604,574	14%		$963,595	9%	$640,979
per share	$0.07			$0.04

Because revenue is accounted as "when goods are shipped", the Company provides the following 12 month trailing summary of financial performance.  

Bevo's trailing twelve months results are summarized below

12 months end	Dec 31, '13	June 30. '14	Dec 31, '14	June 30. '15	Dec 31, '15	Since 2013
Sales	$21,008,627	$23,309,085	$26,323,468	$26,221,677	$27,139,259	29%
Gross Margin	$5,350,194	$5,918,741	$6,255,564	$6,801,354	$7,469,955	40%
Pretax Earnings	$433,895	$923,245	$1,149,462	$1,509,756	$2,090,740	382%
Net earnings	$356,425	$738,745	$886,332	$1,197,556	$1,627,490	357%
EBITDA	$2,866,060	$3,359,710	$3,619,198	$4,078,579	$4,719,558	65%

Bevo Agro is North America's leading supplier of propagated agricultural plants, operating 45 acres of greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The Company's main products are the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses.  The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.  The majority of Bevo's sales result from repeat orders through recurring multiyear contracts. 

Bevo has achieved a ranking in the 2015 TSX Venture 50® which recognizes the strongest companies on TSXV by share price, trading volume, market capitalization and analyst coverage. The winning companies have seen impressive growth over the past year, offered strong return to their shareholders and are actively traded in the market.

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]