MINNEAPOLIS, MINNESOTA, US — Effective trading, improved joint venture performance and capitalizing on its network of assets and partners helped drive strong third-quarter financial results at Ceres Global Ag.
Ceres posted net income of $985,000 in the third quarter ended March 31, equal to 3¢ per share on the common stock, which compared with a loss of $553,000 in the third quarter of fiscal 2023. Adjusted net income totaled $991,000, up 142% from $410,000 in the same period a year ago. Net revenue totaled $212.32 million, down 22% from $287.91 million.
For the nine months ended March 31, Ceres had income of $9.86 million, or 32¢ per share, which compared with a loss of $5.41 million in the same period a year ago. Adjusted net income was $10.12 million, up sharply from $1.37 million. Net revenue totaled $710.52 million, down 15% from $831.05 million.
“This quarter we continue to build on the positive momentum from the second best first quarter in Ceres history by delivering yet another new record quarter,” Carlos Esteban Paz, president and chief executive officer, said during a May 15 conference call with investment analysts. “Our effective trading practices and ability to navigate volatile markets, along with our focused execution of our core strategies has allowed us to achieve the second-best third quarter and the second best nine-month performance in Ceres history.”
Paz said favorable weather conditions led to potentially record crops in South America during the third quarter.
He noted that Ceres handled 23% less volume during the third quarter, which primarily reflected higher inventory levels due to favorable market carries and the company’s strategic divestment of the Port Colborne, Ontario, Canada, facility in the third quarter of 2023.
“In our grain segment, our joint ventures continue to demonstrate our ability to maximize the value of our network of assets, and we continue to reap benefits of the strong operational base we established at Thief River Falls (Minnesota),” he said. “Volumes handled at Farmers Elevator grew 17% in the third quarter. This increase is attributed to the solid foundation we established last year, which included working with railroads to ensure timely service and capacity as well as our focus on recruiting the best talent to serve our customers. Meanwhile, volumes handled at Berthold Farmers Elevator decreased by 17% this quarter into higher farmer retention.”
During the call Paz also pointed to recent strides in advancing its regenerative agriculture initiatives, specifically recent partnerships with Trimex, Mexico’s largest flour miller, and Lavie Bio.
“Our partnerships with Trimex and Lavie Bio marked initial steps in the unfolding potential of our regenerative agriculture initiatives,” he said. “We’re constantly seeking avenues of enhancing growing practices and creating practical regenerative agriculture and supply chain solutions for our strategic customers. In a world where environmental sustainability is becoming ever more critical, we recognize the growing importance of regenerative agriculture in combating climate change and delivering positive impacts for both our farmers and the planet.”
