Ceres Global Ag Corp. has released its financial results for the quarter ended December 31, 2024, revealing a mixed performance amid challenging macroeconomic conditions and harvest challenges.
The company reported a net loss of $379,000 for the quarter, compared to a net income of $2.7 million in the same period last year. Gross profit decreased to $3.8 million from $7.9 million, while income from operations swung to a loss of $407,000 from a profit of $3.7 million in the previous year.
Despite the quarterly setback, Ceres maintains a positive outlook for the year-to-date period, with net income of $1.5 million for the six months ended December 31, 2024.
Tom Coyle, recently appointed Interim President and CEO, commented on the results: "Although the macroeconomic environment and harvest conditions were challenging this quarter, we continued to focus on our core strategy to deliver positive year-to-date results."
Highlights of the quarter include:
- The sale of the Beausejour facility in Manitoba, resulting in a gain of $316,000
- Strong performance from the Berthold Farmers Elevator joint venture
- Continued momentum in Supply Chain Services and Seed Retail segments
Ceres has also strengthened its financial position by amending its credit facilities. The company extended its revolving credit facility by two years, maintaining the maximum amount at $50 million committed and $100 million uncommitted. Additionally, Ceres amended its term loan facility, reducing the applicable margin by 25 basis points and extending the maturity date to February 10, 2030.
Looking ahead, Coyle noted potential challenges arising from shifting tariffs under the new U.S. administration, stating, "We are proactively adjusting our trading strategies and market positioning to adapt to changing conditions."
As Ceres navigates the evolving agricultural landscape, the company remains focused on executing its core strategy of effective trading, asset value maximization, and leveraging partnerships to deliver shareholder value.
