AGT Food and Ingredients Inc (TSE:AGT, Mkt cap 827.21M, P/E 16.64, Div/yield 0.15/1.69, EPS 2.13, Shares 23.93M), a Canadian company that processes and exports seeds and pulse crops, has reported net earnings of C$7.4m for the third quarter of 2016, up from the net loss of C$7.2m in the same period in 2015.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to C$27.4m for the three months ended September 30, an increase of 18.1% over C$23.2m for the corresponding period a year ago.
“We have a significant harvest completed in Western Canada and the Northern Tier United States with the highest production levels ever reported for peas and lentils,” commented Murad Al-Katib, AGT president and CEO. “While there have been some quality issues as a result of the late season and harvest weather, the produced product is certainly marketable to pulse consumption markets around the world.”
Although prices for pulses have been under pressure due to record harvests, this may help in further stimulating demand to markets like India and Turkey, Al-Katib noted.
He continued: “Our food ingredient business is continuing to advance and we are pleased with our progress as pulse ingredients continue to appear on the ingredient deck of all sorts of consumer packaged foods and petfood. Overall, our business is returning to normalized volumes and stable margins after the low remaining qualities available for processing and export earlier in the year.”
Huseyin Arslan, chairman of the board of directors, added: “AGT’s global business continues to advance and grow, leveraging our facility, origination strength and market access in markets around the world. We have seen movement in the market over the past periods; however, AGT has continued to perform consistently well to grow our business, service our customers and create value for our shareholders. The growing opportunities for AGT in India and the planned ramp-up of our railway bulk handling infrastructure in the next years are exciting developments for us. We are confident in our ability to continue this trend.”
AGT Food and Ingredients Inc. (TSE:AGT), formerly Alliance Grain Traders Inc., is a Regina SK based processor and splitter of pulse crops. The Company is engaged in pulse and staple food processing and distribution, with processing facilities and sales offices located around the world. It operates in three segments: Pulse and Grain Processing, which includes the operations of AGT subsidiaries and facilities in Canada, the United States, Australia, China and a portion of the operations in Turkey; Trading and Distribution, which includes operations in Europe, Russia, India and a portion of the operations in Canada, Turkey and Australia, and Food Ingredients and Packaged Foods, which include subsidiaries and facilities in the United States, Canada, South Africa and a portion of the operations in Turkey. AGT operates a retail packaged foods business, including packaged pasta under the Arbella brand name, and a retail business unit in Canada, offering various food products under the CLIC brand.
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