Minneapolis, MN — Revenue for Ceres Global Ag Corp. grew 68.6%, primarily due to an increase of 11.0 million bushels handled compared to the same quarter a year ago, the company said in financial and operating results reported Friday, May 14, for the quarter ended March 31, 2021.
All amounts are in U.S. currency unless otherwise noted.
Third Quarter Highlights
"We had a solid third quarter with higher than usual volumes for what is typically a weaker seasonal period," said Robert Day, president and chief executive officer of Ceres.
"Our team managed market volatility well and we were particularly pleased with the results from core products such as oats, wheat, and canola, despite limited logistical outlets due to seasonal closures in the Great Lakes and the upper Mississippi River.
"During the quarter, we also completed the formation of Farmers Grain, LLC — a joint venture whereby we are adding strategic origination of our core products while also expanding our geographic footprint in the upper Midwest region of the U.S."
Day continued: "With low ending inventories from the 2020/2021 crop year, Ceres expects to handle slightly lower volumes than normal in our fourth quarter ending June 30.
"However, overall price strength and volatility are providing opportunities to generate attractive gross margins."
"Meanwhile, we are making a significant amount of progress advancing several key growth initiatives.
"The expansion of our soybean crush plant in Jordan, Manitoba, remains on schedule for completion this summer, which we expect will have a meaningful impact on results starting with the coming crop year.
"In addition, our project pipeline is full as we look to continue adding origination to our existing network. We will have more to say about our growth initiatives in the coming quarters."
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 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 31 million bushels.