Monday 10th Aug, 2020

AGI reports record breaking financial year

More than 600 jobs will be created in regional Queensland following the latest round of funding from the State Government’s Rural Economic Development (RED) grants program.

Agricultural infrastructure company Ag Growth International (AGI) has reported record growth in 2018, significantly exceeding 2017 results.

The company’s annual results for 2018 show significant increases in trade sales and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). Farm sales increased compared with 2017, with higher sales in the United States and contributions from acquisitions offsetting an expected decrease in Canada.

International demand and continued momentum in the Canadian grain and fertiliser platforms.

The company’s net profit had been negatively impacted by the non-cash foreign exchange loss on the US dollar denominated debt and the non-cash loss on AGI’s equity compensation swap.

AGI says successive large crops in the US and market expectations for another large planting in 2019, alongside recent underinvestment in grain storage, has resulted in an on-farm storage deficit. The company anticipated strong demand for grain storage systems in 2019. Base on current conditions, the company anticipated that total farm shares and adjusted EBITDA will exceed 2018’s results.

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AGI President and CEO Tim Close said a strong fourth quarter closed off the record year for AGI in 2018.

“We made significant progress against our 5-6-7 strategy throughout 2018, resulting in organic sales growth of 12.8 per cent,” he said.

“We kicked off 2019 with three acquisitions as AGI added significantly to its food platform and made two transformational additions, one to its technology platform and more recently to establish a solid platform in India.

“Moving into 2019, a prolonged winter has impacted projects and deliveries, pushing some sales into the second quarter, however we expect continued organic growth in 2019 augmented with significant contributions from acquisitions,” Close said.