CERES GLOBAL AG CORP. REPORTS FIRST QUARTER RESULTS FOR FISCAL YEAR 2024

MINNEAPOLIS, MN, Nov. 9, 2023 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today announced its financial and operating results for the three-month period ended September 30, 2023. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the quarter ended September 30, 2023
(Comparisons to the quarter ended September 30, 2022)

• Gross profit for the quarter was $14.2 million, the second-best first quarter in the Corporation's history, up from $5.6 million in the previous year.
• Income from operations was $9.0 million, an increase of $11.2 million compared to the prior year.
• Net income for the quarter was $6.2 million, up $9.8 million compared to the previous year.
• The Corporation handled and traded 29.9 million bushels, up 7.2% from 27.9 million bushels in the previous year.
• On October 23, 2023, the Corporation resolved the investigation by the Commodity Futures Trading Commission and does not anticipate any other charges or fines from the U.S. Department of Justice or the Commodity Futures Trading Commission related to these matters.

CEO Commentary

"This quarter, driven by our farmer-direct origination strategy, methodical early crop development analysis, and our ability to leverage our asset footprint and network of partners, we effectively navigated extreme weather conditions and positioned the business to achieve the second-best first quarter financial results in the Corporation's history," commented Carlos Paz, President and CEO of Ceres.

"We achieved record-breaking first quarter results in the Seed Retail and Processing segment, and near-record first quarter results in all other segments, demonstrating the effectiveness of our fundamental strategy of optimizing our asset footprint around core products. Our joint venture at Berthold Farmers Elevator continues to be a valuable addition to our network, with volumes increasing 24% this quarter. With the implementation of operational efficiencies at our Jordan crush plant and our team's effective trading strategies, our quarterly soybean crush volumes reached a historic high, enabling us to achieve record-breaking gross margins in the Seed Retail and Processing segment this quarter."

Summary Financial and Operational Results

(in thousands of USD except per share amounts)	3-Months Ended September 30, 2023	3-Months Ended September 30, 2022
Revenue	216,000	260,113
Gross profit	14,179	5,565
Income from operations	9,039	(2,179)
Net income (loss)	6,206	(3,588)
Earnings (loss) per basic share	0.20	(0.12)
Adjusted net income^2	6,395	337
Adjusted EBITDA1	10,575	(218)

1, 2. See the Non-IFRS Financial Measures and Reconciliations section

Outlook 

Mr. Paz added, "Geopolitical tensions continue to intensify as the conflict in the Middle East has added another layer of uncertainty in markets. While the effects on markets are relatively muted compared to the Russia-Ukraine conflict, escalation remains a risk that could significantly impact our business units. As winter sets in and activity slows down in the Canadian Prairies and the U.S. Northern Plains, our team will shift its focus to Mexico and southern United States. Our strength lies in our ability to closely monitor fundamental drivers and global crop developments, and we will continue to seize opportunities as they emerge."

"Building on the momentum from our strong results this quarter, we remain focused on executing our core strategy of optimizing our network of partners, finding innovative, cost-effective methods for increasing direct farmer engagement, effectively trading and marketing our products, and developing regenerative agriculture and supply chain solutions for our customers."

Conference Call Details

Management of Ceres will host a conference call today, November 9, 2023, at 09:00 a.m. ET.  All interested parties can join the conference call by dialing 1-877-870-4263 or 1-855-669-9657. The conference call ID is 10183921. Please dial in 15 minutes prior to the call to secure a line.

A live audio webcast of the conference call will be available at: https://app.webinar.net/q3X20BOz1p8. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

Non-IFRS Financial Measures and Reconciliation

^1. Adjusted EBITDA (adjusted Earnings before Interest, Taxes, Depreciation and Amortization) is not a standardized financial measure prescribed by IFRS; however, it is a metric that is used by management to determine the Corporation's ability to service its debt and finance capital.

In calculating adjusted EBITDA, Ceres excludes gains and losses on property, plant and equipment, assets held for sale, and gains and losses on equity investments. Ceres may calculate adjusted EBITDA differently than other companies; therefore, Ceres' adjusted EBITDA may not be comparable to similar measures presented by other issuers.

Investors are cautioned that adjusted EBITDA should not be construed as an alternative to net income or loss, or to other standardized financial measures determined in accordance with IFRS and is not intended to represent cash flows or results of operations in accordance with IFRS. See the table below for the reconciliation of adjusted EBITDA.

(in thousands of USD)	3-Months Ended September 30, 2023	3-Months Ended September 30, 2022
Net income (loss) for the period	6,206	(3,588)
Interest expense	1,305	1,368
Amortization of intangible assets	62	62
Income tax (recovery)	1,943	178
Share of net (income) loss in investment in associates	(529)	103
Depreciation and amortization	1,588	1,659
Adjusted EBITDA	10,575	(218)

^2. Adjusted net income is not a standardized financial measure prescribed by IFRS; however, it is a metric that the Corporation believes can provide useful information to investors and shareholders as it can be used to evaluate the performance of the business. Adjusted net income excludes major one-time write offs, such as severance and employee cost reduction measures, as well as legal fees that relate to DOJ and CFTC investigations. See the table below for the reconciliation of adjusted net income.

(in thousands of USD)	3-Months Ended September 30, 2023	3-Months Ended September 30, 2022
Net income (loss) for the period	6,206	(3,588)
Executive severance and employee cost reduction	-	2,076
Regulatory investigations - legal related costs	189	1,849
Adjusted net income	6,395	337

About Ceres Global Ag Corp.

Ceres and its subsidiaries add value across agricultural, energy and industrial supply chains through efficient sourcing, storing, transporting and marketing of high‐quality agricultural commodities, value‐ added products and raw materials. Leveraging its network of commodity logistics centers and team of industry experts, Ceres connects farmers to customers around the world.

Ceres is headquartered in Golden Valley, Minnesota, and together with its affiliated companies, operates 11 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 29 million bushels.

Ceres has a 50% interest in Savage Riverport, LLC (a joint venture with Consolidated Grain and Barge Co.), a 50% interest in Berthold Farmers Elevator, LLC (a joint venture with The Berthold Farmers Elevator Company), a 50% interest in Farmers Grain, LLC (a joint venture with Farmer's Cooperative Grain and Seed Association), a 50% interest in Gateway Energy Terminal (an unincorporated joint venture with Steel Reef Infrastructure Corp.), a 25% interest in Stewart Southern Railway Inc. (a short‐line railway located in southeast Saskatchewan with a range of 130 kilometers), and a 17% interest in Canterra Seed Holdings Ltd. (a Canada‐based seed development company).

For more information about Ceres, please visit www.ceresglobalagcorp.com

Forward-looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information may include, but is not limited to, statements regarding future operations and results, anticipated business prospects and financial performance of Ceres and its subsidiaries, including the plans, costs, timing and capital for the further development of the Northgate Commodities Logistics Centre, expectations or projections about the future, strategies and goals for growth, expected and future cash flows, costs, planned capital expenditures, regulatory change, general economic political and market conditions anticipated capital projects, construction and completion dates, operating and financial results, critical accounting estimates, the expected financial and operational consequences of future commitments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", "may have implications" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Key assumptions upon which such forward-looking information is based are listed in the "Forward-Looking Information" section of the MD&A for the period ended September 30, 2023. Many such assumptions are based on factors and events that are not within the control of Ceres and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, among others, risks related to weather, politics and governments, changes in environmental and other laws and regulations, competitive factors in agricultural, food processing and feed sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, global and local economic conditions, the ability of Ceres to successfully implement strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Corporation's assets, the availability and price of commodities and regulatory environment, processes and decisions. Although Ceres has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results that are not anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE Ceres Global Ag Corp.

Carlos Paz, President and Chief Executive Officer, Ceres Global Ag Corp., 1-647-484-0475, [email protected]; Anna Speyer, Investor Relations Manager, NATIONAL Capital Markets, 416-848-1376, [email protected]