MINNEAPOLIS, MINNESOTA, US — A strong fourth quarter capped a solid fiscal 2021 at Ceres Global Ag Corp.
Net income in the year ended June 30 totaled $12.044 million, equal to 39¢ per share on the common stock, up 178% from $4.34 million, or 14¢ per share, in fiscal 2020. Revenues climbed 29% to $748.2 million from $581.71 million.
In the fourth quarter, net income jumped to $11.73 million, or 38¢ per share, up sharply from $527,000, or 2¢ per share, in the same period a year ago. Revenues in the fourth quarter increased to $196.93 million, up 12% from $176.51 million.
“In fiscal year 2021, we handled 14.4 million more bushels, we strengthened our presence in crucial geographies on both sides of the US and Canadian border, and we maintained the positive trajectory of improved financial performance that began several years ago,” said Robert Day, president and chief executive officer. “Most notably, the profitable execution of our strategy and positive outlook enabled us to recognize $9.7 million in previously unrecognized deferred tax assets during the quarter.”
Highlights during fiscal 2021 included the establishment of Farmers Grain, LLC, a joint venture with Farmers Cooperative Grain and Seed Association of Thief River Falls, Minnesota, US, in February. Farmers Grain broke ground on a project to add 1.2 million bushels of storage and unit train loading capabilities.
In May, Ceres unveiled plans to build a $350 million integrated canola processing facility in Northgate, Saskatchewan, Canada. The facility will have the capacity to process 1.1 million tonnes of canola and refine more than 500,000 tonnes of canola oil, for both food and fuel, annually, according to the company.
Meanwhile, in June Ceres entered into a $50 million term debt credit facility with the Bank of Montreal, retiring the previous $30 million term debt facility and providing an additional $20 million to fund future growth projects and initiatives. Ceres said the new credit facility, with a significantly lower interest rate, will lower interest costs by approximately $900,000 per year on the initial $30 million drawn from the facility.
Moving forward, Day said Ceres expects fiscal 2022 to be a “transformative year.”
“Due to disciplined analysis of markets and prudent acquisition of supplies for key customers, we expect the first quarter of fiscal year 2022 will be a record for Ceres in terms of EBITDA and pre-tax profits,” he said. “Meanwhile, we are making progress on the canola crush project at Northgate as we prepare to break ground in 2022; Farmers Grain, LLC in Thief River Falls is off to a strong start and the expansion is on track for completion prior to harvest 2022; and the expansion of our soybean crush plant in Jordan, Manitoba, which is positioned to benefit from the fast-growing demand from food, feed, and renewable fuel markets, was completed in July 2021 and is expected to generate increased margins and profits once the new crop harvest begins in October.”