CERES GLOBAL AG CORP. REPORTS THIRD QUARTER RESULTS FOR FISCAL YEAR 2023

MINNEAPOLIS, May 12, 2023 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today announced its financial and operating results for the three and nine-month periods ended March 31, 2023. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the quarter ended March 31, 2023
(Comparisons to the quarter ended March 31, 2022)

• Gross profit for the quarter was $5.5 million, down from the previous year, which was one of the most profitable years in the history of the Corporation;
• Income from operations was $339 thousand compared to $3.6 million in the previous year;
• Net loss for the quarter was $553 thousand and adjusted net income for the quarter was $410 thousand. Please refer to Non-IFRS Financial measures and reconciliations for more details;
• The Corporation handled and traded 24.1 million bushels, up 20% from 20.1 million bushels in the prior year;
• On February 17, 2023, the Corporation completed the sale of its Port Colborne facility for $4.0 million and recognized a gain on the sale of $1.2 million.

CEO Commentary

"While markets remain volatile, mostly due to the ongoing conflict in Ukraine and mixed results from the South American crop season, the Ceres team skillfully navigated these erratic markets and effectively utilized the Company's asset network, resulting in another quarter with positive adjusted net income. This quarter, Ceres handled 20% higher volumes compared to last year and year-to-date handled volumes have surpassed fiscal 2022 volumes by 6%. One of the key contributors to these strong results was the performance of our joint venture in Berthold Farmers Elevator, where volumes handled have increased by 15%, demonstrating its continued value."

Summary Financial and Operational Results

(in thousands of USD except per share amounts)	3-Months Ended March 31, 2023	3-Months Ended March 31, 2022	9-Months Ended March 31, 2023	9-Months Ended March 31, 2022
Revenue	287,912	269,625	831,051	782,791
Gross profit	5,513	12,265	17,825	52,182
Income from operations	339	3,597	(864)	24,302
Net income (loss)	(553)	912	(5,408)	13,714
Earnings (loss) per basic share	(0.02)	0.03	(0.17)	0.45
Adjusted net income^2	410	2,457	1,366	16,796
Adjusted EBITDA1	2,208	5,389	4,442	29,313

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

Outlook 

Mr. Paz added, "While we are expecting delays in planting for North American crops due to the cool, wet spring in the Northern Plains and Canadian Prairies, we believe current elevated prices for core products will encourage farmers to maximize the acres planted, which should result in adequate volumes to merchandise barring adverse summer weather. Our team is assessing crops closely to best capitalize on market opportunities as they arise."

"One of Ceres' greatest competitive advantages is our network of partners, who we have built longstanding and trusted relationships with over the years. The success of these partnerships is borne out by our ability to leverage the trade flows developed over the past several years. Going forward, we will continue to focus on maximizing the full value of these assets and find creative ways to partner with independent co-ops to increase Ceres' farmer direct origination in order to keep up with the increasing demand for supply chain and regenerative agriculture solutions."

Conference Call Details

Management of Ceres will host a conference call today, May 12, 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 86523057. 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/rbpWKVXEvyA. 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 March 31, 2023	3-Months Ended March 31, 2022	9-Months Ended March 31, 2023	9-Months Ended March 31, 2022
Net income (loss) for the period	(553)	912	(5,408)	13,714
Interest expense	1,614	1,179	4,972	3,644
Amortization of intangible assets	62	66	186	197
Income tax (recovery)	(118)	1,362	472	6,251
Share of net (income) loss in investment in associates	821	112	652	225
Depreciation and amortization	1,595	1,770	4,798	5,301
Gain (loss) on property, plant and equipment	(1,213)	(12)	(1,230)	(19)
Adjusted EBITDA	2,208	5,389	4,442	29,313

^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 March 31, 2023	3-Months Ended March 31, 2022	9-Months Ended March 31, 2023	9-Months Ended March 31, 2022
Net income (loss) for the period	(553)	912	(5,408)	13,714
Executive severance and employee cost reduction	15	-	2,354	-
Regulatory investigations - legal related costs	948	1,545	4,420	3,082
Adjusted net income	410	2,457	1,366	16,796

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 March 31, 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]