REGINA, SASKATCHEWAN, CANADA — AGT Food and Ingredients (AGT) announced its adjusted EBITDA was C$101 million ($77,130,823) in the fiscal year ended Dec. 31, 2015, up 16.1% compared to C$87 million in the same period of last year.
Revenue for the year was C$1.7 billion compared to C$1.36 billion in the previous year.
Food ingredients and packaged foods segment represented 14.2% of total tonnes invoiced and 32.1% of adjusted EBITDA for the year ended Dec. 31, 2015 compared to 13.9% of total tonnes invoiced and 27.4% of adjusted EBITDA for the year ended Dec. 31, 2014.
For the three months ended Dec. 31, 2015, adjusted EBITDA was C$32.9 million, an increase of 34.8% over C$24.4 million for the same period a year earlier.
“This quarter continues to demonstrate the relative strength of both our legacy and our food ingredients and packaged foods segments, together providing AGT’s strong foundation for growth,” said Murad Al-Katib, president and chief executive officer of AGT. “Our revenue and adjusted EBITDA numbers are reporting at record levels, truly milestones for AGT, which we plan to build on as our business continues to grow and expand. We have made investments in logistics and processing infrastructure that we expect will benefit our business, with a large crop and strong customer demand expected in 2016.”
Mobil Capital Holdings Ltd. share purchase and acquisition of West Central Road and Rail Ltd. assets occurred during the year, augmenting AGT’s pulses shipping capacity.
AGT also announced the addition of production capacity at its Minot, North Dakota, U.S., facility for increased fiber processing and granulated pulse flour production, planned to commence installation in June, as well as the addition of production line four to increase overall production capacity, planned to commence installation in the third quarter. Both lines are expected to be commissioned by the first quarter of 2017.
“The addition of the fourth production line is expected to ensure that the volume business we have built with the first three production lines, which have been focused on pea products for the pet food sector, may continue uninterrupted as our human food business for conventional and organic flours, fiber and proteins from a full range of pulses builds in 2016,” said Huseyin Arslan, executive chairman of AGT’s board of directors. “We are also examining the feasibility of adding pulse flour and fiber processing capacity in Turkey to satisfy what we expect to be growing demand in Turkey and Europe for pulse ingredients. Turkey provides certain logistical advantages for this business and we expect to have a decision by the third quarter of 2016.”