USA- Ceres Global Ag Corp., a key player in the agricultural industry, has announced robust financial results for the first quarter of fiscal 2023, driven by exceptional performance in its Seed Retail and Processing segment.
The company’s net income for the quarter ended September 30 reached US$6.21 million, marking a significant turnaround from a loss of US$3.59 million during the same period the previous year. Adjusted net income soared to US$6.4 million, a substantial increase from US$337,000 a year ago.
While the total revenue for the first quarter of fiscal 2023 was reported at US$216 million, a 17% decline from US$260.11 million in the corresponding period last year, Ceres Global Ag Corp. highlighted that this decrease was influenced by lower commodity prices.
Despite challenging weather conditions impacting crop yields, Ceres successfully managed to handle 29.9 million bushels of grain and oilseed in the quarter, marking a 7.2% increase from 27.9 million bushels in the same period a year ago.
Carlos Esteban Paz, President and CEO of Ceres, credited this accomplishment to the company’s farmer-direct origination strategy, early crop development analysis, and the effective utilization of its asset footprint.
During a conference call with analysts on November 9, Paz stated, “Our joint venture with Berthold Farmers Elevator continues to be a great addition to the Ceres network with volumes increasing by 24% in the first quarter of 2020. This growth is a testament to our proactive positioning in the grain and oilseed markets. Our farmer-direct origination strategy and our ability to maximize the value of our network and assets.”
Paz also highlighted a historic high in quarterly soybean crush volume, surpassing the first quarter of fiscal 2023 by 18.5%. He attributed this success to timely and proactive soybean procurement, along with the implementation of operational efficiencies at Ceres’ crush plant in Jordan, Manitoba, Canada.
While acknowledging a decrease of 8% in volumes handled at Thief River Falls, Paz emphasized the positive outcomes of operational improvements, including negotiations with railroads, securing adequate freight capacity, and timely rail execution in the first quarter. These enhancements are expected to lay a solid foundation for future harvests.
The strong performance in the Seed Retail and Processing segment and other operational efficiencies contributed to Ceres Global Ag Corp.’s second-best first quarter in its history, showcasing resilience and adaptability in the face of market challenges.
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