Minneapolis, MN — Ceres Global Ag Corp. said strong performance across core operations and increased volumes powered a first-quarter gross profit of $23.9 million, a 526% increase over the previous fiscal year.
The company reported its first-quarter 2022 fiscal year results for the three-month period ended Sept. 30 on Friday, Nov. 12.
"A very strong first quarter has Ceres off to an excellent start to our fiscal year," said Robert Day, president and CEO of Ceres.
"Diversification over the past few years, relentless focus on our customers, and our ability to successfully navigate through a generational drought and volatile grain markets contributed to our strongest quarter on record."
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First Quarter Highlights: (Comparisons to first quarter of fiscal year 2021)
- Strong performance across core operations;
- Results driven by increased volumes and effective risk management;
- Gross profit increased 526% to $23.9 million;
- Income from operations was $13.7 million;
- Net income was $8.8 million, or $0.28 per share (~C$0.37 per share);
- Handled 31.6 million bushels of grain and oilseed, an increase of 12%;
- Jordan Mills soybean crush plant expansion completed in July, increasing the plant's production capacity by 50%.
- Advanced Northgate canola crush plant project by ordering major equipment and beginning design and engineering work.
"In addition to the record financial performance, we made significant progress on our growth and development; specifically, advancing the transformational canola crush project that was announced in May 2021," Day said.
"Looking ahead, we expect favorable conditions to continue through the second quarter.
"With strong demand and limited supplies, we expect to continue realizing opportunities through effective trading and positioning, and we anticipate that will level off in the second half of the year as supplies diminish."
"Meanwhile, we continue to make steady progress on plans to build a 1 million metric-ton integrated canola processing facility in Northgate, Saskatchewan.
"We have made deposits with major equipment suppliers, continued our progress on design and engineering, and will shortly begin to evaluate proposals from potential strategic partners."
For more details on Ceres' plans to build an integrated canola crush facility in Northgate, Saskatchewan,click here.
Headquartered in Minneapolis, and together with its affiliated companies, Ceres operates 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota.
These facilities have an aggregate grain and oilseed storage capacity of approximately 31 million bushels.
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