CERES GLOBAL AG CORP. REPORTS SECOND QUARTER RESULTS FOR FISCAL YEAR 2025

MINNEAPOLIS, Feb. 13, 2025 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today announced its financial and operating results for the six-month period ended December 31, 2024. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the quarter ended December 31, 2024
(Comparisons to the quarter ended December 31, 2023)

• Net loss for the quarter was $379 thousand compared to income of $2.7 million for the same quarter in the previous year.
• Gross profit for the quarter was $3.8 million compared to $7.9 million in the previous year.
• Income from operations was a loss of $407 thousand, compared to income of $3.7 million in the previous year.
• On November 15, 2024, the Corporation closed on the sale of its Beausejour facility in Manitoba, resulting in a gain of $316 thousand.
• Tom Coyle was appointed Interim President and Chief Executive Officer replacing Carlos Paz, effective January 1, 2025.
• On February 3, 2025, the Corporation amended its revolving credit facility extending the maturity date two years. Under the new credit facility, the maximum amount remained the same with $50 million committed and $100 million uncommitted and is a sustainability linked loan which could decrease the interest rate by 8 basis points if the Corporation achieves the KPI linked to its regenerative agriculture initiatives.
• On February 10, 2025, the Corporation amended its term loan facility. The amendment reduced the applicable margin by 25 basis points and extended the maturity date to February 10, 2030.

CEO Commentary

"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," commented Tom Coyle, Interim President and CEO of Ceres. "By leveraging our network of assets and experienced team while expanding our supply chain partnerships, we were able to navigate the challenges of operating in a lower-margin environment."

Mr. Coyle continued, "Our Berthold Farmers Elevator joint venture performed well this quarter and provided strong origination volumes. Furthermore, our Supply Chain Services and Seed Retail segments have continued to build on the momentum from the first quarter, resulting in strong year-to-date volumes in both segments."

Summary Financial and Operational Results

Outlook

Mr. Coyle added, "As we navigate the shifting landscape of tariffs under the new U.S. administration, we anticipate potential disruptions in existing trade flows between the U.S., Mexico, and Canada. To address the uncertainty, we are proactively adjusting our trading strategies and market positioning to adapt to changing conditions."

"With winter drawing to a close, we will be monitoring weather conditions and planting forecasts for the Corn Belt, Northern Plains, and Canadian Prairies to best position Ceres for the year ahead. We remain committed to executing our core strategy of effectively trading and marketing our core products, maximizing the value of our assets, and leveraging synergies within our partnerships. Our steadfast focus on strategic execution will enable Ceres to navigate this rapidly changing landscape while upholding our commitment to delivering shareholder value."

Conference Call Details

Management of Ceres will host a conference call today, February 13, 2025, at 09:00 a.m. ET. All interested parties can join the conference call by dialing 1-888-510-2154 or 1-437-900-0527. The conference call ID is 52264. Please dial in 15 minutes prior to the call to secure a line.

A live audio webcast of the conference call will be available at https://app.webinar.net/xG0zWK9l5RZ. Please connect at least 15 minutes before the conference call to ensure adequate time for any software download required to join the webcast. An archived replay of the webcast will be available for 90 days.

Non-IFRS Financial Measures and Reconciliation

^1. Adjusted EBITDA (adjusted Earnings before Interest, Taxes, Depreciation and Amortization) is not a standardized financial measure prescribed by IFRS; however, it is a metric that is used by management to determine the Corporation's ability to service its debt and finance capital.

In calculating adjusted EBITDA, Ceres excludes gains and losses on property, plant and equipment, assets held for sale, and gains and losses on equity investments. Ceres may calculate adjusted EBITDA differently than other companies; therefore, Ceres' adjusted EBITDA may not be comparable to similar measures presented by other issuers.

Investors are cautioned that adjusted EBITDA should not be construed as an alternative to net income or loss, or to other standardized financial measures determined in accordance with IFRS and is not intended to represent cash flows or results of operations in accordance with IFRS. See the table below for the reconciliation of adjusted EBITDA.

^2. Adjusted net income is not a standardized financial measure prescribed by IFRS; however, it is a metric that the Corporation believes can provide useful information to investors and shareholders as it can be used to evaluate the performance of the business. Adjusted net income excludes major one-time write offs, such as severance and employee cost reduction measures, as well as legal fees that relate to DOJ and CFTC investigations. See the table below for the reconciliation of adjusted net income.

About Ceres Global Ag Corp.

Ceres and its subsidiaries add value across agricultural, energy and industrial supply chains through efficient sourcing, storing, transporting and marketing of high‐quality agricultural commodities, value‐ added products and raw materials. Leveraging its network of commodity logistics centers and team of industry experts, Ceres connects farmers to customers around the world.

Ceres is headquartered in Golden Valley, Minnesota, and together with its affiliated companies, operates 10 locations across Saskatchewan, Manitoba, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 29 million bushels. The Corporation also owns membership interests in three agricultural joint ventures that have an aggregate grain and oilseed storage capacity of approximately 16 million bushels.

Ceres has a 50% interest in Savage Riverport, LLC (a joint venture with Consolidated Grain and Barge Co.), a 50% interest in Berthold Farmers Elevator, LLC (a joint venture with The Berthold Farmers Elevator Company), a 50% interest in Farmers Grain, LLC (a joint venture with Farmer's Cooperative Grain and Seed Association), a 50% interest in Gateway Energy Terminal (an unincorporated joint venture with Steel Reef Infrastructure Corp.),  and a 25% interest in Stewart Southern Railway Inc. (a short‐line railway located in southeast Saskatchewan with a range of 130 kilometers).

For more information about Ceres, please visit www.ceresglobalagcorp.com

Forward-looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information may include, but is not limited to, statements regarding future operations and results, anticipated business prospects and financial performance of Ceres and its subsidiaries, including the plans, costs, timing and capital for the further development of the Northgate Commodities Logistics Centre, expectations or projections about the future, strategies and goals for growth, expected and future cash flows, costs, planned capital expenditures, regulatory change, general economic political and market conditions anticipated capital projects, construction and completion dates, operating and financial results, critical accounting estimates, the expected financial and operational consequences of future commitments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", "may have implications" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Key assumptions upon which such forward-looking information is based are listed in the "Forward-Looking Information" section of the MD&A for the period ended December 31, 2024. Many such assumptions are based on factors and events that are not within the control of Ceres and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, among others, risks related to weather, politics and governments, changes in environmental and other laws and regulations, competitive factors in agricultural, food processing and feed sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, global and local economic conditions, the ability of Ceres to successfully implement strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Corporation's assets, the availability and price of commodities and regulatory environment, processes and decisions. Although Ceres has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results that are not anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE Ceres Global Ag Corp.