Company reports record quarter of sales from its pea-splitting facility
HIGHLIGHTS OF Q2 2024
- Record quarter of split pea sales of $2.4 million.
- Revenue in the quarter of $17.6 million, with a greater focus on higher margin business lines, which represented 43.7% of total revenue in Q2 2024 compared to 31.4% in Q2 2023.
- Loss for the period improved by 11.8% over the prior comparable period to $2.0 million.
- Received a $3.0 million advance as a deposit against the pending investment in the Company's pet food division.
TORONTO, ON / ACCESSWIRE / November 28, 2023 / Global Food and Ingredients Ltd. (TSXV:PEAS)(OTCQX:PEASF) ("GFI" or the "Company"), today reported second quarter financial results for the three and six months ended September 30, 2023.
"The second quarter saw a return to normal seasonality after the impacts of delayed shipments in the prior year caused by supply chain issues at that time. GFI continued its efforts in prioritizing higher margin generating business lines, specifically split peas, which generated a record quarter," commented David Hanna, GFI's CEO. "Overall we are confident that our focus on our core ingredients business, particularly our value-added ingredients, and our rightsizing of non-revenue generating overhead expenses will drive the Company forward. We have a strong competitive position with our state-of-the art pea splitting facility in regular operation entering the current crop year, which began in late August. Our management team continues to focus on unlocking shareholder value and liquidity to support continued business growth and realize on timely market opportunities as they arise."
Second Quarter Results
Highlights - Three Months ended September 30, 2023
- The Company recorded revenue of $17.6 million in the three months ended September 30, 2023, down 26.4% from the prior year quarter as normal seasonality returned following last year's supply chain disruptions.
- The period included a record quarter of revenue from the Company's split pea operation, amounting to $2.4 million in the three months ended September 30, 2023.
- Sales backed by the Company's shift to higher margin product lines, specifically plant-based pet food ingredients, split peas and downstream retail packaged products, represented 43.7% of total revenue during the three months ended September 30, 2023, an increase of 12.3% over the prior year comparable period.
- Loss for the period from continuing operations was $2.0 million, an improvement of $0.3 million or 11.8% primarily due to a reduction in the Company's overhead expenses during the period.
Highlights - Six Months ended September 30, 2023
- The Company recorded revenue of $39.3 million in the six months ended September 30, 2023, a decline of 27% over the prior year period.
- Sales backed by the Company's shift to higher margin product lines, specifically plant-based pet food ingredients, split peas and downstream retail packaged products, represented 40.5% of total revenue during the six months ended September 30, 2023, an increase of 11.6% over the prior year period.
- Loss for the period was $4.1 million, an improvement of 34.6% over the prior comparable period, predominantly due to improved Company overhead and a significant reduction in one-time expenses not incurred in the current period.
Other Highlights & Business Updates
- The Company continues to work towards closing of the previously announced minority investment into its pet food division by 35 Oak Holdings Ltd. ("35 Oak"). During Q2 2024, the Company received a $3.0 million advance towards the pending transaction . The transaction is expected to unlock significant value, generating substantial capital to strengthen the Company's balance sheet. The Company has received conditional approval from its lenders, subject to certain conditions being met, and is working diligently on finalizing the definitive agreements to complete the transaction. The transaction, which is subject to TSXV approval, is anticipated to close in the coming months.
- As previously announced, the Company received a commitment from 35 Oak to purchase $500,000 of equity in a private placement of units. It is now anticipated that this investment will be in the form of a subordinated loan to the Company. The Company will no longer pursue a non-brokered private placement at this time.
The unaudited condensed consolidated interim financial statements for the three and six months ended September 30, 2023 ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for the three and six months ended September 30, 2023, are available under the Company's profile at www.sedarplus.ca.
About GFI
GFI is a Canadian plant-based food and ingredients company, connecting the local farm to the global supply chain for peas, beans, lentils, chickpeas and other high protein specialty crops. GFI's vision is to become a vertically integrated farm-to-fork plant-based company providing traceable, locally sourced, healthy and sustainable food and ingredients. GFI is organized into four primary business lines: Core Ingredients, Value-Added Ingredients, Plant-Based Pet Food Ingredients and Downstream Products. Headquartered in Toronto, GFI buys directly from its extensive network of farmers, processes its products locally at its four wholly-owned processing facilities in Western Canada and ships to 37 countries across the world.
Contact Information
For further information, please contact:
GLOBAL FOOD AND INGREDIENTS LTD.
Bill Murray, CFO
Phone: 416-840-6801
Email: bill.murray@gfiglobalfood.com
Disclaimer
Neither the TSXV nor its Regulation Service Provider (as defined policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statements
Forward-Looking Statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Forward looking statements in this press release include without limitation statements relating to the minority investment into the Company's pet food division by 35 Oak and the terms and conditions thereof. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. GFI undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of GFI, its securities, or financial or operating results (as applicable). Although GFI believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond GFI's control, including the risk factors discussed in GFI's annual information form for the year ended March 31, 2022, which are incorporated herein by reference and are available through SEDAR at www.sedarplus.ca. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. GFI disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE: Global Food and Ingredients
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