CERES GLOBAL AG CORP. REPORTS THIRD QUARTER RESULTS FOR FISCAL YEAR 2025

Cision Canada

14-05-2025

MINNEAPOLIS, May 14, 2025 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) (" Ceres" or the " Corporation") today announced its financial and operating results for the three-month and nine-month period ended March 31, 2025. All amounts are in U.S. dollars unless otherwise noted.
Highlights for the quarter ended March 31, 2025
(Comparisons to the quarter ended March 31, 2024)
Net income for the quarter was $1.6 million compared to income of $985 thousand for the same quarter in the previous year.
Tom Coyle was appointed Interim President and Chief Executive Officer, replacing Carlos Paz, effective January 1, 2025.
On February 3, 2025, the Corporation amended its revolving credit facility extending the maturity date two years. Under the new credit facility, the maximum amount remained the same with $50 million committed and $100 million uncommitted and is a sustainability linked loan which could decrease the interest rate by 8 basis points if the Corporation achieves the key performance indicator (" KPI") linked to its regenerative agriculture initiatives.
On February 10, 2025, the Corporation amended its term loan facility. The amendment reduced the applicable margin by 25 basis points and extended the maturity date to February 10, 2030.
"In light of recent U.S. trade policies and resulting tariff-driven market volatility, we adapted to changing market conditions to deliver solid quarterly and year-to-date results," commented Tom Coyle, Interim President and CEO of Ceres. "As uncertainty around tariffs persists, we remain committed to actively managing tariff risks while leveraging our cross-border network of assets to deliver value for our partners."
Mr. Coyle continued, "With our team of industry experts and effective trading and risk management practices, we were able to navigate these challenging market conditions. Our joint ventures, along with our Supply Chain Services and Seed Retail segments, have also continued to perform well this quarter."
Summary Financial and Operational Results
1, 2. See the Non-IFRS Financial Measures and Reconciliations section
Outlook
Mr. Coyle added, "Looking ahead, the landscape remains challenging with tariffs driving significant volatility in commodity markets. Uncertainties in U.S.-China trade relations and rising geopolitical tensions will continue to impact global agricultural supply chains. To navigate the shifting landscape and potential disruptions in trade flows, we are proactively positioning Ceres to mitigate these risks while remaining vigilant of evolving trade policies."
"With Canada and the U.S. entering their planting seasons, we will be closely monitoring weather conditions and crop developments to capitalize on market opportunities as they arise. By maintaining a strong focus on executing our core strategy of effectively trading our core products and maximizing the potential of our assets, we are well-prepared to navigate the complexities of the current market environment and deliver value to our shareholders."
Conference Call Details
Management of Ceres will host a conference call today, May 14, 2025, at 06:00 p.m. ET. All interested parties can join the conference call by dialing 1-888-510-2154 or 1-437-900-0527. The conference call ID is 52264. 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://app.webinar.net/ygp2lr3koBE. Please connect at least 15 minutes before the conference call to ensure adequate time for any software download required to join the webcast. An archived replay of the webcast will be available for 90 days.
Non-IFRS Financial Measures and Reconciliation
1. Adjusted EBITDA (adjusted Earnings before Interest, Taxes, Depreciation and Amortization) is not a standardized financial measure prescribed by IFRS; however, it is a metric that is used by management to determine the Corporation's ability to service its debt and finance capital.
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.
2. Adjusted net income is not a standardized financial measure prescribed by IFRS; however, it is a metric that the Corporation believes can provide useful information to investors and shareholders as it can be used to evaluate the performance of the business. Adjusted net income excludes major one-time write offs, such as severance and employee cost reduction measures, as well as legal fees that relate to DOJ and CFTC investigations. See the table below for the reconciliation of adjusted net income.
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 10 locations across Saskatchewan, Manitoba, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 29 million bushels. The Corporation also owns membership interests in three agricultural joint ventures that have an aggregate grain and oilseed storage capacity of approximately 16 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 41.6% interest in Gateway Energy Terminal (an unincorporated joint venture with Steel Reef Infrastructure Corp.), and a 25% interest in Stewart Southern Railway Inc. (a short‐line railway located in southeast Saskatchewan with a range of 130 kilometers).
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 March 31, 2025. 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.