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AGI Announces Q3 2020 Results

COVID-19 has had a material impact on company's North American commercial markets

Agi

Ag Growth International Inc. has announced its financial results for the three and nine-months ended September 30, 2020.

Continued robust performance in North American Farm markets, EMEA, Brazil, and India was offset by lower results in North American Commercial markets resulting in a record third quarter for sales and adjusted EBITDA despite ongoing COVID-19 challenges.

As indicated throughout 2020, commercial backlogs had been weighted to Q3. Sales in the quarter were also augmented by a relatively early harvest across North America.

COVID-19 has had a material impact on North American commercial markets as customers have delayed projects or are facing challenges in project progress.

AGI's Q3 2020 trade sales of $282.5 million grew 8.1% from Q3 2019 and adjusted EBITDA of $51.8 million grew 32.4% over Q3 2019. Farm sales in Q3 were up 24% over Q3 2019 and 9% year-to-date ('YTD').

North America Commercial sales were down 20% and 23% respectively in the three and nine months ended 2020 versus 2019.

The International business continues to excel over the previous year despite the obstacles of COVID-19 with a sales increase of 10% in the quarter and 16% YTD.

Excluding the Milltec acquisition, international sales in the nine- months ended September 30, 2020 increased 5% over 2019.

"Q3 2020 was a record third quarter for AGI in terms of both sales and adjusted EBITDA with broad-based and robust performance across all platforms except for NA Commercial, which has been hardest hit with COVID challenges," says Tim Close, president and CEO of AGI. "Q3 was also a record quarter for adjusted EBITDA, just beating Q2 2019 which was our prior high water mark. This strong performance in the quarter highlights the benefits of our diversification investments over the past five years, the resiliency of our business and our leadership in the global food infrastructure sector."

For the full report, click here.

About AGI

AGI is a leading provider of equipment solutions for agriculture bulk commodities including seed, fertilizer, grain, feed and food processing systems. AGI has manufacturing facilities in Canada, the United States, the United Kingdom, Brazil, France, Italy and India, and distributes its product globally.

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