Green Rise Foods Inc. (TSXV: GRF), a leading player in the fresh produce sector, has announced its interim condensed consolidated financial results for the three and six-month periods ending June 30, 2023, showcasing impressive growth.
Key Financial Highlights:
- Surging Revenue: The company reported a record fresh produce revenue of $10.9 million for the six-month period ending June 30, 2023, marking a 33% increase from the $8.2 million reported for the same period in 2022.
- Strong EBITDA: For the three-month period ending June 30, 2023, the Adjusted EBITDA stood at $2.3 million, almost doubling from the $1.2 million reported for the corresponding period in 2022.
- Mortgage Renewal: Green Rise renewed a mortgage with a principal amount of $12.8 million, which matured on June 30, 2023. The renewed mortgage has a three-year term with a fixed annual interest rate of 5.75%.
- Enhanced Liquidity: The company amended its credit facility with RBC, increasing its operating lines from $6.6 million to $7.3 million. This amendment also allows for an additional draw of $800 thousand on a revolver facility and a reduction in the company’s annual fixed coverage ratio.
- Working Capital Improvement: The company’s working capital ratio deficit improved significantly, from $22.9 million as of December 31, 2022, to $8.4 million as of June 30, 2023.
- Lease Agreement Renewal: Green Rise renewed its lease agreement for 15 acres of its Organic greenhouse to Mastronardi Produce Ltd. for a term extending to December 31, 2026.
Vincent Narang, Green Rise Foods Chief Executive Officer, commented on the positive impact of the strategic mini-pepper acquisition made in 2022. He attributed the company’s successful Q2 results to optimal growing conditions, effective execution by the operations team, and diversification of product offerings. Narang also praised the efforts of the Green Rise team, emphasizing their role in consistently delivering quality, fresh Ontario-grown produce.
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