AGT profits down slightly in second quarter

by World Grain Staff
Share This:
Search for similar articles by keyword: [AGT]
AGT Food and Ingredients logo
REGINA, SASKATCHEWAN, CANADA — AGT Food and Ingredients Inc. (AGT) reported on Aug. 11 that earnings for the second quarter were C$22.2 million ($17 million) or C45¢ per share, down slightly from C$24.4 million or C44¢ per share in the same quarter last year.

The food ingredients and packaged foods segment represented 21.5% of total tonnes invoiced and 38.5% of adjusted EBITDA for the quarter compared to 14% of total tonnes invoiced and 25.8% of adjusted EBITDA in the same quarter a year ago. Adjusted EBITDA was C$90.3 million for the trailing 12 months ended June 30 compared to C$74.1 million for the trailing 12 months ended June 30, 2014, an increase of 22%.

“This has been a good and consistent quarter for AGT,” said Murad Al-Katib, president and chief executive officer (CEO) of AGT.  "With what appears to be the return to more seasonal buying and the quarter two period reset in global pulses markets, we are pleased with how both our legacy and food ingredient and packaged foods segments are performing overall. There were limited carry-in stocks for the period, but buyers were purchasing at relatively higher margins to supply markets until the fall harvest in North America, where we are expecting significant production volumes for pulses.”

Harvest is underway in Canada and the U.S. and the expected production levels will fuel and supply import demand in the company’s key markets, AGT said. These are positive trends in AGT’s legacy business, particularly in the traditional shipping periods ahead, it said. The food ingredient and packaged foods segment continues to make gains, with increased volumes, margins, earnings and percentage of AGT’s sales overall.

“Our results from this quarter show that we are continuing to build from our strengths, particularly our facility, origination, logistics and processing strength, our global merchandising and management ability and our diversified product offering in both segments,” said Al-Katib. “These are major components that make AGT strong in all markets we are in and we are creating opportunities through our key investments in both segments. We will continue with these strategies to increase shareholder value and expand our business overall.”
Partners