CERES GLOBAL AG CORP. REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR FISCAL YEAR 2023

MINNEAPOLIS, Sept. 15, 2023 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today announced its financial and operating results for the fourth quarter and year ended June 30, 2023. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the fourth quarter and fiscal year ended June 30, 2023 
(Comparisons to the fourth quarter and fiscal year ended June 30, 2022)

• Gross profit for the quarter was $4.9 million, and $22.8 million for the year;
• Net loss for the year was $7.9 million and adjusted net income¹ for the year was $3.1 million;
• The Corporation handled and traded 98.5 million bushels, up 2% from 96.6 million bushels in the prior year;
• In line with Ceres' long-term strategy of optimizing its footprint around core products and locations, the Corporation completed the sale of its Port Colborne facility on February 17, 2023. Total proceeds of the sale were $4.0 million, and the Corporation recognized a gain on the sale of $1.2 million;
• On June 28, 2023, Ceres announced its exit from the wholesale distribution of its seed business to consolidate the Corporation's focus on the core business.

CEO Commentary

"Throughout the year, whether it was the unprecedent drought that affected South American crops in the second quarter, the ongoing conflict in Ukraine, or the dry weather across the U.S. Northern Plains and the Canadian Prairies in the fourth quarter, the Ceres team skillfully navigated volatile market conditions and effectively positioned the business to deliver another year of positive adjusted net income," commented Carlos Paz, President and CEO of Ceres.

"Our farmer-direct origination strategy continues to show strong results, with volumes handled growing 2% this year compared to the previous year despite challenging macro conditions. Key drivers of this growth were our joint ventures with Berthold Farmers Elevator, in North Dakota, and with Farmer's Cooperative Grain and Seed Association in Thief River Falls, MN, where yearly volumes handled increased by 17% and 177%, respectively, exemplifying our ability to maximize our network of assets and deliver unique value to our customers."

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^1	Adjusted net income is a non-GAAP financial measure. Please refer to "Non-IFRS Financial Measures and Reconciliations" for more details.

Summary Financial and Operational Results

(in thousands of USD except per share amounts)	3-Months Ended June 30, 2023	3-Months Ended June 30, 2022	12-Months Ended June 30, 2023	12-Months Ended June 30, 2022
Revenue	205,652	278,150	1,036,703	1,060,941
Gross profit	4,940	3,693	22,765	55,875
Income from operations	(1,848)	(329)	(2,712)	23,973
Net income (loss)	(2,504)	(22,537)	(7,912)	(8,823)
Earnings (loss) per basic share	(0.08)	(0.73)	(0.25)	(0.29)
Adjusted net income^2	1,461	5,028	2,827	21,824
Adjusted EBITDA^1	2,798	2,724	7,241	32,038

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

Outlook

Mr. Paz added, "While markets have grown more accustomed to geopolitical risks associated with the conflict in Ukraine and volatility has dampened since the start of the war, the underlying risk remains, and the Ceres team is keeping an eye on any changes that can lead to higher levels of volatility returning to markets. Our team is also closely monitoring and evaluating the quality and quantity of crops in the Northern Plains and the Canadian Prairies to identify opportunities to maximize the margins of the capacity handled and best serve our end customers."

"This year, we made strategic changes to consolidate our business and enhance efficiencies to set a solid foundation for future success. We remain focused on our vision of partnering with farmers and other suppliers to enable our customers to do great things in the food, agriculture, and energy markets. Our team has the expertise and the solid base to maximize our assets and creatively partner with our network to increase Ceres' farmer-direct origination."

"Driven by the increasing demand for regenerative agriculture, our future growth will involve efficiently utilizing our capital through creative marketing and origination to solidify strategic trade flows. Effective trading and merchandising will remain the underpinnings of our business as we continue to maximize the value of our network of assets and deliver supply chain and regenerative agriculture solutions for our customers."

Conference Call Details

Management of Ceres will host a conference call today, September 15, 2023, at 09:00 a.m. ET.  All interested parties can join the conference call by dialing 1-888-390-0605 or 416-764-8609. The conference call ID is 83420424. 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/kKOBoNmJWGd. 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 June 30, 2023	3-Months Ended June 30, 2022	12-Months Ended June 30, 2023	12-Months Ended June 30, 2022
Net income (loss) for the period	(2,504)	(22,537)	(7,912)	(8,823)
Interest expense	1,264	1,126	6,236	4,770
Amortization of intangible assets	62	66	248	263
Income tax (recovery)	(1,337)	(345)	(865)	5,906
Share of net (income) loss in investment in associates	687	577	1,339	802
Depreciation and amortization	1,614	1,658	6,413	6,960
Gain (loss) on property, plant and equipment	12	(3,725)	(1,218)	(3,744)
Legal settlement reserve	3,000	-	3,000	-
Crush plant impairment	-	25,904	-	25,904
Adjusted EBITDA	2,798	2,724	7,241	32,038

^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 June 30, 2023	3-Months Ended June 30, 2022	12-Months Ended June 30, 2023	12-Months Ended June 30, 2022
Net income (loss) for the period	(2,504)	(22,537)	(7,912)	(8,823)
Crush plant impairment	-	25,904	-	25,904
Executive severance and employee cost reduction	220	-	2,574	-
Regulatory investigations - legal related costs	745	1,661	5,165	4,743
Legal settlement reserve	3,000	-	3,000	-
Adjusted net income	1,461	5,028	2,827	21,824

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, investigations of the CFTC and the DOJ into the Corporation's oat trading activities, 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 June 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, regulations and policies and the interpretations thereof, 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]