WINNIPEG, MANITOBA, CANADA —Ag Growth International Inc. (AGI) reported a third consecutive year of record sales and adjusted earnings that it largely attributed to organic growth efforts and initiatives.
The Winnipeg, Manitoba, Canada-based company said EBITDA for 2022 increased 33% year-over-year to C$235 million. Sales increased 22% to C$1.46 billion.
AGI management expects full year 2023 adjusted EBITDA to be at least C$260 million. Backlog is up 10% year-over-year as of Dec. 31, 2022, despite the deferred or canceled orders as a result of the conflict in Ukraine and is sitting at record-levels for year-end and near-record levels all-time.
“With progress across our three corporate strategic priorities — profitable organic growth, operational excellence, balance sheet discipline — and tangible improvements on the KPIs we use to track these priorities, we are highly encouraged by the significant progress and growth achieved in 2022,” said Paul Householder, president and chief executive officer. “With a strong backlog, momentum across the business, and a clear set of initiatives to continue our growth trajectory, we look forward to another excellent year for AGI in 2023.”
The commercial segment saw sales increase 23% for the year along with a 60% increase in adjusted EBITDA. Results were driven by significant growth in Canada, the United States, South America and Asia Pacific markets.
The Canadian market experienced sales growth of 83%, indicating a strong recovery in the region that initially was hit hard by the pandemic.
“The improvement in this region has also been accelerated by a more unified structure and approach to our overall North America commercial business,” AGI said.Growth in Brazil and India continues to be extraordinary, the company said. Sales increased 36% and 44% respectively, while adjusted EBITDA was up 28% and 68%. These increases underscore the importance of AGI’s regional diversification strategy and the benefits of investing in developing market positions within these agricultural regions, it said.