Winnipeg-based equipment supplier Ag Growth International (AGI) reported second-quarter adjusted profit of C$20.2 million on trade sales of $293 million, compared to the year-ago $22.3 million and $262.6 million, respectively. Adjusted EBITDA was up at $51.3 million from the year-ago $49.2 million. The company said profits decreased largely due to transitory items related to the acquisition of India-based Milltec.
Adjusted EBITDA, while up, was impacted by anticipated low sales volumes in Brazil, a seasonally low sales volume quarter in India, and the impact of challenging weather on grain storage system sales in the U.S. Despite the weather, the company noted that trade sales increased due to good demand for portable farm equipment, as well as recent acquisitions in India and France.
While noting that U.S. farmers are cautious regarding spending due to the recent weather issues, the company expects a significant increase in corn planted acres in 2020.
Six-month adjusted profit was $25.2 million on trade sales of $509.2 million, down from the year-ago $33.7 million and $476.7 million. Adjusted EBITDA was up, at $82 million from $79.9 million.