Bevo announces first quarter results
By Bevo Agro
By Bevo Agro
Jan. 2, 2012, Langley, B.C. — Bevo Agro Inc. announces sales for the three months ending Sept. 30, 2011 were $1,700,825.
Jan. 2, 2012, Langley, B.C. — Bevo Agro Inc. announces sales for the three months ending Sept. 30, 2011 were $1,700,825. This compares to sales of $1,961,694 for the same quarter in 2010. The reduction in sales is a result of several orders from customers being reallocated to different time periods.
The first quarter is historically the lowest revenue-producing period of the year as greenhouses are transitioning from flowers and bedding plants delivered in the fourth quarter to propagated vegetable plants for delivery in the second and third quarters.
The gross margin for the quarter was $253,353 (14.90 per cent of sales) compared to $260,329 (13.27 per cent of sales) the prior year. Despite lower sales, the company managed to maintain gross margin levels, as a result of lower purchase and labour costs.
Expenses for the quarter ended Sept. 30, 2011 totalled $1,032,798, compared to $959,822 in the same quarter the year earlier.
The net loss and comprehensive loss for the quarter was $536,905 compared to a loss of $475,653 for the same quarter in the previous year.
SIGNIFICANT FIRST QUARTER EVENTS
Bevo has adopted and has transitioned to International Financial Reporting Standards (“IFRS”). These are the company’s first consolidated interim condensed financial statements prepared in accordance with IFRS. In preparing the opening IFRS financial statements, the company has adjusted amounts reported previously in financial statements prepared in accordance with GAAP. The transition from GAAP to IFRS had no significant impact on cash flows generated by the company.
IFRS requires an entity to make a policy choice to carry property, plant and equipment (“PPE”) at historical cost method or revaluation (fair value) method. This policy choice is made for each class of assets included in PPE. The company has elected to use the revaluation (fair value) method for its land, and historical cost method for all other items of PPE.
In other news, the five-acre expansion previously announced is substantially completed and will be used in growing additional plants in the second quarter. This expansion was funded by a new term loan and company funds.
Readers are encouraged to view the company's unaudited financial statements as of Sept. 30, 2011 and accompanying MD&A at www.sedar.com.