Ceres Global Ag Reports Financial Results for Q3 FY2018
Minneapolis, MN, (May 9, 2018) – Ceres Global Ag Corp. (TSX: CRP) (“Ceres” or the “Corporation”) today announced its financial and operating results for the three and nine months ended March 31, 2018. All amounts are in U.S. currency unless otherwise noted.
“As expected for the winter season, third quarter volumes and revenues were low due to Great Lakes and river closures,” said Robert Day, President and Chief Executive Officer of Ceres. “Adjusted net income was also impacted by deferred hedges on inventory that will be earned back over time, and a one-time write off due to a customer’s inability to pay. Combined, these two items represent more than half the gap between revenues and costs for the quarter, and absent those items, our gross margin per unit handled was much better when compared to the same quarter one year ago.”
“As we enter the fourth quarter, we are excited about efforts being made to establish a better balance between stable revenues and costs. The formation of Savage Riverport, LLC is a key step in that direction as it lowers costs and generates $8.5 million in cash proceeds that we can use to acquire and build assets, to increase our presence in origination of product direct from growers,” Mr. Day continued. “The joint venture will increase the value of our existing network of terminal facilities and lower our cost to supply customers.”