Canada Stockwatch – AGT Food and Ingredients Inc (TSE:AGT, Mkt cap 706.88M, P/E 24.46, Div/yield 0.15/1.96, EPS 1.25, Shares 23.07M) has posted adjusted net earnings of $36.2 million for 2014, up from up from $21.5 million in 2013, with the firm expressing further optimism for the 12 months ahead.
As the Regina Leader Post reports, AGT continues to nurture itself back to good health after being hit hard by the financial crisis and the recession. A recovery, says president and CEO Murad Al-Katib, has been made possible by sticking to the right strategy.
Al-Katib, who founded AGT in his Regina basement in 2001, said the company has no plans in 2015 to stray too far from the strategy that has served it so well, with diversification set to once again play a pivotal part in its growth aspirations.
AGT’s sales have continued to climb over the last few years, hitting $1.36 billion last year from $1.1 billion during 2013. This has enabled the firm to make a big capital investment in Minot, N.D., where it constructed a pulse-processing plant about a year ago.
Capacity at the plant is set to multiply this year with the addition of a $10-million “modification line,” which will “neutralize the flavour profile of pulse flours” to boost sales and inclusion in other food products.
Should that prove to be a success, the Minot plant will likely see more funds – to the tune of a further $10 million – headed its way in 2016, but Al-Katib was keen to stress that developments in Canada remain its focus.
“I’ve said we’re going to build a durum wheat-milling business in Canada. It’s part of our future,” he added.
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