CRP Ceres Global Ag Corp

MINNEAPOLIS, Feb. 14, 2023 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today announced its financial and operating results for the three and six-month periods ended December 31, 2022. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the quarter ended December 31, 2022
(Comparisons to the quarter ended December 31, 2021)

• Gross profit for the quarter was $6.7 million, down from the previous year, which was one of the most profitable quarters in the history of the Corporation;
• Income from operations was $976 thousand compared to $7.0 million in the previous year;
• Net loss for the quarter was $1.3 million and adjusted net income for the quarter was $620 thousand. Please refer to Non-IFRS Financial measures and reconciliations for more details;
• The Corporation handled and traded 29.6 million bushels, up 14% from 25.9 million bushels in the prior year.

CEO Commentary

"North American grain stocks replenished this quarter and crop volumes stabilized, allowing us to deliver high quality products to our key customers. Contributing to our positive results was our joint venture in Thief River Falls, MN. Despite significant rail delays and macro headwinds, this effective partnership has allowed us to double the volume of grain handled in the first 7 months of 2023 compared to full-year 2022. While we continue to see volatility in the market due to the ongoing conflict in Ukraine and an unprecedented drought affecting South American crops, mainly in Argentina, our team was able to maximize the synergies created through our asset network and achieve positive Adjusted Net Income."

Summary Financial and Operational Results

Outlook

Mr. Paz added, "As we enter the spring planting season, we will be monitoring weather and crop decisions to leverage market opportunities for the new crop. Consistent with our FY2023 strategy, we will continue to maximize our network of assets to increase margins across all products and develop regenerative agriculture and supply chain solutions for the remainder of the year and beyond."

"Our focus on regenerative agriculture solutions will allow Ceres to increase the value in our core commodity portfolio and create significant opportunities to differentiate ourselves from competitors," Mr. Paz continued. "By connecting growers to end-user businesses, we will not only promote greater advocacy for efficient growing practices among farming partners, but also create consistency in supply for our end-users."

"In people news, we are pleased to welcome Jennifer Henderson to Ceres. Her extensive legal background, along with her commercial leadership experience in transportation and logistics, supply chain solutions, and futures and commodities trading will be a valuable asset to the Corporation as we continue to execute on our strategy and serve our customers," Mr. Paz added.

Conference Call Details

Management of Ceres will host a conference call today, February 14, 2023, at 09:00 a.m. ET. All interested parties can join the conference call by dialing 1-888-204-4368 or 1-647-794-4605. 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://bit.ly/CERESQ22023. 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

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.

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 12 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 31 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 December 31, 2022. 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.