Key Takeaways:
- Record Revenue: Green Rise Foods reports year-to-date fresh produce revenue of CDN $21.6 million, a 19.4% increase from the previous year.
- EBITDA Growth: Adjusted EBITDA rose to CDN $3.5 million for the nine months, showing significant financial health.
- Improved Liquidity: The company increased its operating lines and added a new revolver facility, enhancing operating flexibility.
- Lease Renewal: Renewal of the 15-acre lease of the company’s organic greenhouse to Mastronardi Produce Ltd.
- Future Focus: Management is now focused on the 2024 seed and product selection and capital expenditure program to enhance efficiencies.
Financial Milestones Achieved
Green Rise Foods Inc. (TSXV: GRF), a leader in Controlled-Environment Agriculture (CEA), has released its interim condensed consolidated financial results for the three and nine-month periods that ended September 30, 2023. The company is pleased to announce significant financial growth and operational achievements.
Revenue and EBITDA Highlights
The company reported a year-to-date fresh produce revenue of CDN $21.6 million for the nine months ended September 30, 2023, versus CDN $18.0 million for the comparative prior year period, representing an increase of 19.4%. This growth is a testament to the company’s robust business model and market demand.
Adjusted EBITDA, a key financial metric, increased to CDN $3.5 million for the nine months, compared $2.2 million for the same period in the previous year. For the three months ended September 30, 2023, Adjusted EBITDA equaled CDN $2.8 million, indicating robust financial health and operational efficiency.
Liquidity and Financial Management
Green Rise Foods has improved its liquidity position by increasing the company’s operating lines from CDN $6.6 million to CDN $7.3 million. Additionally, a new CDN $800 thousand revolver facility was introduced, providing the company with greater operating flexibility. Reducing the company’s annual fixed coverage ratio from 1.25 to 1 to 1.10 to 1 further enhances this flexibility.
Operational Developments
The company successfully renewed the GR1 “Farm one” mortgage with a principal amount of CDN $12.8 million for a three-year term with a fixed annual interest rate of 5.75%. Furthermore, renewing the 15-acre lease of the company’s organic greenhouse to its distribution partner Mastronardi Produce Ltd. for a 3.5-year term to December 31, 2026, solidifies its operational foundation.
Dedication and Future Focus
The employees of Green Rise continue their dedication to operating with care and integrity. The company’s risk management practices and 2023 seed and varietal selections have improved yields. The finance team has been diligent in managing input costs and tracking labor expenses to meet annual targets.
Looking ahead, management is focused on the 2024 seed and product selection and the capital expenditure program. These costs are expected to add incremental revenue through increased yields while assisting leadership to manage labor programs better and enhance efficiencies.
Industry Engagement
The company recently attended the Global Produce and Floral Show in Anaheim, California. CEO Vincent Narang expressed excitement about the future of the industry and the role that Green Rise has in CEA.
Image provided by Green Rise Foods
