Green Rise Foods Reports Third Quarter 2021 Results Highlighted by Record Tomato Revenue and Provides Update on Crop Selection for Fiscal 2022
Toronto, Ontario – (Newsfile Corp. – November 23, 2021) – Green Rise Foods Inc. (TSXV: GRF) (âGreen Riseâ or the âCompanyâ) is pleased to announce the publication of its condensed interim consolidated financial results for the three and nine month periods ended September 30, 2021.
“We generated record tomato sales of $ 14.5 million with Adjusted EBITDA of $ 4.8 million in the first nine months of 2021, on 73 acres of managed crop capacity, an increase of 43 % from 51 acres over the same period in 2020. These increases are attributable to the acquisition of Mor Gro Farms Inc. (“GR2”) which closed on February 1, 2021, and helped offset the winds opposites we have faced, âsaid Vincent Narang, CEO of Green Rise. These macro-factor headwinds included a combination of lower yields due to adverse weather conditions during the three-month period ended September 30, 2021, revenue impacts attributable to a normalization of Beefsteak tomato prices in the during the first nine months of the year and increased labor costs resulting from federally mandated COVID-19 quarantine protocols for all inbound travelers to Canada. “
Third Quarter 2021 Financial Results
Achieved record tomato sales of $ 7.4 million for the third quarter of 2021, an increase of 14% from the $ 6.5 million generated in the quarter ended September 30, 2020.
Adjusted EBITDA generated of $ 3.1 million for the quarter ended September 30, 2021, compared to $ 3.6 million for the same period in 2020.
Realized the profit of a full harvest quarter at the newly acquired GR2 facility and, as of November 11, 2021, had shipped over 5.4 million pounds of Beefsteak tomatoes (3.5 million pounds for the three months ended September 30, 2021).
Financial results since the start of the year
Achieved record tomato sales of $ 14.5 million for the nine-month period ended September 30, 2021, an increase of 19% from the $ 12.2 million achieved during the same period in 2020.
Adjusted EBITDA generated of $ 4.8 million for the first nine months of 2021, compared to $ 6.0 million for the nine months ended September 30, 2020.
Continued increase in the company’s assets and growing capacity following the acquisition of the net assets of Mor Gro Farms Inc. on February 1, 2021, adding a 22-acre line of greenhouses on a 57-acre property acres in Kingsville, Ont. for matching money of $ 15.9 million.
The complete unaudited financial statements and related MD&A are available under the Company’s profile at www.sedar.com.
Crop selection decisions 2022
The Company is also pleased to announce the strategic decisions taken with its partners regarding its selection of 2022 crops, among which:
In the Company’s Green Rise 1 line (“GR1”), Green Rise will plant 36 acres of the medley tomato variety with fixed contract price sales.
Nine of the 36 acres will be a premium medley.
Fifteen additional acres will continue to be leased to the Company’s strategic distribution partner.
In the GR2 line, the Company will continue to produce 22 acres of Beefsteak tomatoes with sales at market prices.
As a result of these decisions, the Company will have 36 acres of production at the fixed contract price and 22 acres at the market price, up from 40 acres at the market price in 2021. The Company will effectively have 62% of its expected crop in the year. market price. prices in 2022 versus 31% for the 2021 harvest season. The Company’s medley variety tomatoes are high-yielding mini-hybrid specialty tomatoes that have consistent production yields. This allocation should allow Green Rise to capitalize on the efficiency of the workforce in its GR1 plant by reducing the number of product references.
âOur approach to fixed contract pricing, coupled with our plan to focus each line on a single product versus multiple products, provides workforce optimization and greater revenue certainty for the company. We are looking for ranges that increase our cash flow while offering stable growth to our shareholders and fresh quality products to our business partners â, concluded Vincent Narang.
ABOUT GREEN RISE
Green Rise is a fresh produce grower with 73 acres of greenhouses located in Kingsville, Ontario. On the path to being the âbest in classâ contract producer of fresh produce, the company takes pride in providing high quality, consistent and reliable products to meet growing consumer demand for locally grown fresh produce. By leveraging innovative growth solutions and embracing technology, Green Rise seeks to optimize its operations to generate improved product quality, increase profit margins and provide investors with significant and growing returns. The company prides itself on being an eco-friendly investment, producing fresh, locally grown, bee-pollinated produce using less water than produce grown on the land. The company is proud that its first range is EFI (Equitable Food Initiative) certified.
For more information, please contact:
George Hatzoglou, Chief Financial Officer
Phone: + 1-416-551-5015
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains “forward-looking information” within the meaning of applicable securities laws. Such forward-looking statements may be identified by words such as “expects”, “anticipates”, “believes”, “plans”, “plans” and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. The statements contained in this press release are made as of the date of this press release. Green Rise assumes no obligation to update these forward-looking statements if circumstances or management’s estimates or opinions change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on these forward-looking statements. Green Rise assumes no obligation to comment on any analyzes, expectations or statements made by third parties regarding Green Rise or their respective financial or operational results or (where applicable), their titles.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/104881