WINNIPEG, MANITOBA, CANADA — Consistent sales and strong adjusted margin performance boosted AGI’s adjusted earnings before interest, taxes and depreciation (EBITDA) by 33% for the second quarter ended June 30.

Adjusted EBITDA for the quarter reached a new record of C$88 million. Sales of C$390 million were consistent on a year-over-year basis. For the first half of the year, EBITDA increased 27%.

“Our strong second-quarter margin performance highlights the progress and pace of many of our operational excellence initiatives,” said Paul Householder, president and chief executive officer of AGI. “A clear focus on manufacturing efficiency, centralized procurement, structured pricing programs, workforce optimization and many other operational excellence initiatives, are yielding clear benefits in terms of margin expansion. We anticipate the benefits of these efforts to be sustained through the rest of 2023 and into 2024.”

The company now is targeting full-year adjusted EBITDA of C$290 million for 2023.

Commercial segment sales dropped 4% while adjusted EBITDA increased 22% year-over-year, AGI said. Sales were impacted due to the cyclical nature of large commercial projects in North America and continued softness in the food platform, offset by a pickup in demand internationally.

Commercial sales internationally increased 14% driven by strong demand for AGI products and systems across South America. Demand for rice milling solutions in India continues to be a strong growth contributor with sales increasing 17%.

The company’s operational initiatives including effective management of manufacturing expenses contributed to the adjusted EBITDA margin percent increase to 18.5% from 14.6% year-over-year.