Strong second quarter sales for Bevo Agro
Feb. 26, 2015, Langley, B.C. – Bevo Agro Inc. is reporting a very strong second quarter.
It had record sales of $6,422,391 for the second quarter ending December 31, 2014, an increase of 23 per cent over the same period last year when sales of $5,206,237 were reported.
Sales for the six months ending Dec. 31, 2014 totaled $10,370,796, compared to sales of $7,356,413 for the same period the year earlier, an increase of 41 per cent. The three-month and six month figures represent all-time record high sales for both periods.
The gross profit for the six months ending Dec. 31, 2014 totals $2,151,744 an increase of 18.6 per cent when compared to gross profits of $1,814,921 for the six months in the previous year.
Expenses for the six months were $2,474,360 (24 per cent of sales) compared $2,315,192 (31 per cent of sales) for the same six months last year.
While expenses increased slightly in dollars, the expense-to-sales-ratio declined to 24 per cent compared to 31 per cent 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 collectable.
The net loss for the six months ended December 31, 2014 was $188,455 compared to a loss of $336,042 for the same period last year. EBITDA (Earnings before income taxes, depreciation and amortization) for the six months increased by 37 per cent, to $963,595 from $704,107 in the same six month period last year.
It should be noted that the company’s business is somewhat cyclical with the majority of sales and profits occurring in the second half of the fiscal year.
Readers are encouraged to view the company’s unaudited financial statements as at December 31, 2014, and accompanying MD&A at www.sedar.com.
ABOUT BEVO AGRO
Bevo Agro is a leading North American supplier of propagated agricultural plants, operating 45 acres of greenhouse facilities on 98 acres of land in Langley, and 20 acres of land in nearby Pitt Meadows. 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 multi-year 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. These companies have seen impressive growth over the past year, offered strong return to their shareholders and are actively traded in the market.