MINNEAPOLIS, MINNESOTA, US — Ceres Global Ag Corp. sustained a net loss for its fiscal year on slightly lower revenue, pointing to market volatility caused by severe drought in South America and the ongoing war in Ukraine as yearlong challenges to its bottom line.

Revenue at Ceres for the 12 months ended June 30 was $1.036 billion, down from $1.06 billion the previous year. Gross profit was $22.8 million, down from $55.8 million a year ago, and net loss was $7.9 million, improving from a loss of $8.8 million last year. Adjusted net income for the year was on the plus side at $3.1 million, though down significantly from $21.8 million last year.

“Throughout the year, whether it was the unprecedent drought that affected South American crops in the second quarter, the ongoing conflict in Ukraine or the dry weather across the US Northern Plains and the Canadian Prairies in the fourth quarter, the Ceres team skillfully navigated volatile market conditions and effectively positioned the business to deliver another year of positive adjusted net income,” said Carlos Paz, president and chief executive officer of Ceres.

In the fourth quarter of 2023, Ceres earned $205.6 million, which compared with $278.1 million during the same three-month period in 2022. Gross profit was $4.9 million, up from $3.7 million year-over-year, while net loss was $2.5 million, which compared with a loss of $22.5 million in the same period last year.

In 2023, Ceres completed the sale of its Port Colborne, Ontario, Canada, facility on Feb. 17. Total proceeds of the sale were $4 million, and Ceres recognized a gain of $1.2 million on the sale. On June 28, Ceres announced its exit from the wholesale distribution of its seed business to consolidate and focus on the company’s core business.

“This year, we made strategic changes to consolidate our business and enhance efficiencies to set a solid foundation for future success,” Paz said. “We remain focused on our vision of partnering with farmers and other suppliers to enable our customers to do great things in the food, agriculture, and energy markets. Our team has the expertise and the solid base to maximize our assets and creatively partner with our network to increase Ceres’ farmer-direct origination.”

Ceres handled and traded 98.5 million bushels, up 2% from 96.6 million bushels in the prior year. Key drivers of this growth were joint ventures with Berthold Farmers Elevator, in Berthold, North Dakota, US, and with Farmer’s Cooperative Grain and Seed Association in Thief River Falls, Minnesota, US, where yearly volumes handled increased by 17% and 177%, respectively.

Ceres, together with its affiliated companies, operates 11 locations across Saskatchewan, Manitoba and Ontario in Canada, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of about 29 million bushels.