AGT Food and Ingredients Inc. Announces Financial Results for 2025
AGT Food and Ingredients Inc. Announces Financial Results for 2025 |
| [16-March-2026] |
SYMBOL: TSX: AGTF REGINA, SK, March 16, 2026 /CNW/ - AGT Food and Ingredients Inc. (TSX: AGTF) ("AGT" or the "Company") announces its financial results for the fourth quarter and year ended December 31, 2025. Overview The Company recently completed an Initial Public Offering ("IPO") of $449.5 million, and a private placement of shares for $200 million to Fairfax Financial Holdings Ltd. (the "Private Placement") on March 9, 2026. These transactions result in the Company having nominal debt and an Adjusted Net Debt to Adjusted EBITDA ratio of 0.22 with amended credit facilities having approximately $300 million of unused debt capacity. Revenue, Adjusted EBITDA and Free Cash Flow for both fiscal 2025 and Q4 2025 discussed below are within the guidance provided in the IPO prospectus document. "We are pleased with AGT's 2025 results which show the consistency of our business throughout a year that was challenging in the context of tariffs and macroeconomic circumstances. I also want to thank those investors who supported our vision for the future during the recent IPO process. We are excited to be a public company and to begin delivering on our business plan. Our clean balance sheet, continued strong growth in Packaged Foods and Ingredients and consistency in our Value Added Processing segment gives us a strong springboard for future free cash flow growth and the creation of shareholder value", said Murad Al-Katib, President and CEO. Year-end 2025 & Q4 2025 Highlights
This press release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted Gross Profit, Free Cash Flow and Adjusted Net Debt to Adjusted EBITDA Ratio that do not have any standardized meaning as prescribed by GAAP and, therefore, are considered non-GAAP measures. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. For further details, see the sections titled "Non-GAAP Financial Measures" in this release and in the Company's MD&A for the three months and years ended December 31, 2025 and 2024. Fourth Quarter and Annual Financial Summary
Additional Information A copy of AGT's Consolidated Financial Statements ("Financial Statements") for the years ended December 31, 2025 and 2024 and related Management's Discussion and Analysis ("MD&A") have been filed with the Canadian Securities Regulatory authorities and are available on SEDAR at sedarplus.ca and AGT's website at agtfoods.com. The Financial Statements have been prepared in accordance with International Financial Reporting Standards and the reporting currency is in Canadian dollars. Conference Call A conference call to discuss Fourth Quarter and Full Year 2025 results is scheduled for Tuesday, March 17, 2026 at 8:30 a.m. Eastern time. To join the conference, please dial 1-844-763-8274 (toll free from Canada & the U.S.) or +1-647-361-0247 (from outside Canada & the U.S.). An audio replay of the conference call will be available on AGT's website after the conference call by visiting www.agtfoods.com. About AGT AGT is a globally diversified food company that produces high-quality, nutritious products for everyday consumption. Our products reach consumers in 127 countries, and our global footprint consists of 39 state-of-the-art, highly efficient manufacturing facilities operating across 5 continents. These facilities are strategically located near critical freight and logistics infrastructure and in close proximity to key agricultural growing regions, which provides us with the ability to efficiently source, process, and produce healthy plant-based food products that are both tasty and affordable. Our integrated supply chain utilizes the latest manufacturing technologies, allowing us to produce a growing portfolio of packaged food brands in everyday categories including pasta, pulses, rice, and cereals. In addition, we are an integral partner to many global packaged food companies and international retailers through production, supply, and innovation partnership agreements to manufacture proprietary, value added products for their owned global and store brands. To learn more, please visit: www.agtfoods.com. Non-GAAP Performance Measures This press release makes reference to certain non-GAAP measures, including non-GAAP ratios. These measures are not recognized measures under IFRS Accounting Standards and do not have a standardized meaning under IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies Rather, these measures are provided as additional information to complement those IFRS Standards measures by providing further understanding of AGT's results of operations from management's perspective. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS Accounting Standards measures. We also believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management also uses non-GAAP measures in order to review operating performance and comparisons from period to period, prepare annual operating budgets, and assess AGT's ability to meet future capital expenditure and working capital requirements. Non-GAAP Measures (a) Adjusted Gross Profit is used to evaluate operating performance. It is calculated by adjusting for the non-cash impacts of hyperinflation accounting and revaluation depreciation from gross profit including net monetary gain. The most comparable IFRS Accounting Standards financial measure for Adjusted Gross Profit is gross profit including net monetary gain. Management uses Adjusted Gross Profit to measure the underlying operating performance of the business, excluding the effects of inflation-related accounting adjustments, to provide a clearer view of the Issuer's operating results. (b) Adjusted EBITDA are used to evaluate performance and profitability of segments, ability to create value and ability to generate liquidity through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures. Adjusted EBITDA is calculated by taking net (loss) earnings and adding or subtracting depreciation and amortization, finance expense, income taxes, unrealized foreign exchange loss (gain), share-based compensation and other, the impact of hyperinflation and the contribution of Mobil to periods prior to its sale. Adjusted EBITDA for a TTM period is calculated by deriving the last twelve months of Adjusted EBITDA calculated in the manner identified above. The most comparable IFRS Accounting Standards financial measure to Adjusted EBITDA is net (loss) earnings. (c) Free Cash Flow is used to evaluate the ability to generate liquidity to fund future working capital needs, service outstanding debt and to fund future capital expenditures and pay dividends to shareholders. Free Cash Flow is calculated by taking net (loss) earnings and adding or subtracting non-cash items including the impact of hyperinflation, interest paid on the Sponsor Notes, cash taxes paid and maintenance capital expenditures. The most comparable IFRS Accounting Standards financial measure is net (loss) earnings. (d) Adjusted Net Debt is used to evaluate existing borrowings and amounts available to fund future working capital needs and fund future capital expenditures. Adjusted Net Debt is calculated by taking the sum of bank indebtedness plus current and long-term debt and lease liabilities less Sponsor Notes payable and cash. Non-GAAP Ratios (a) Adjusted Net Debt to Adjusted EBITDA Ratio is used to evaluate existing borrowings and amounts available to fund future working capital needs and fund future capital expenditures. Adjusted Net Debt to Adjusted EBITDA Ratio is calculated by dividing Adjusted Net Debt by Adjusted EBITDA. The following provides a reconciliation of non-GAAP measures and non-GAAP ratios presented throughout the press release to the nearest measure under GAAP: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings to Free Cash Flow
Calculation of Adjusted Gross Profit
Calculation of Adjusted Net Debt
Forward-Looking Information This press release contains certain forward-looking statements. Forward-looking statements include but are not limited to, those with respect to: the impacts of the IPO, Private Placement, and related transactions, including on finance expenses and capital expenditures utilization. In certain cases, forward-looking statements can be identified by the use of words such as "expects" or variations of such words and phrases, or statements that certain actions, events or results "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations as well as the factors discussed under "Risk Factors" in AGT's supplemented PREP prospectus dated February, 2027 filed on SEDAR+. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although AGT believes the assumptions inherent in forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as at the date of this press release. In addition to other assumptions identified in this press release, assumptions have been made regarding, among other things, production quality; the volume and quality of crops held on-farm by producers and customers in North America; demand for and supply of open market pulses; movement and sale of pulses in Australia and Türkiye; agricultural commodity prices; demand for crop products and the market share of these products that will be achieved; general financial conditions for Western Canadian, US, Turkish and Australian agricultural producers; the ability of the railways to ship pulses to port facilities for export without labor or other service disruptions; the ability to maintain existing customer contracts and relationships; the impact of competition; the ability to obtain and maintain existing financing on acceptable terms; and currency, exchange and interest rates. AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required in accordance with applicable securities laws. SOURCE AGT Food and Ingredients Inc. | ||||||||||||||||||||
Company Codes: Toronto:AGTF |
