Mr. Carlos Paz reports

CERES GLOBAL AG CORP. REPORTS SECOND-BEST SIX-MONTH START IN COMPANY HISTORY

Ceres Global Ag Corp. has released its financial and operating results for the three- and six-month periods ended Dec. 31, 2023. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the quarter ended Dec. 31, 2023 (comparisons with the quarter ended Dec. 31, 2022):

• Gross profit for the quarter was $7.9-million, the second-best second quarter in the corporation's history, up from $6.7-million in the previous year.
• Income from operations was $3.7-million, increasing 280.4 per cent from $976,000 in the prior year.
• Net income for the quarter was $2.7-million, up $3.9-million compared with the previous year.
• On Feb. 12, 2024, the corporation announced an exclusive agreement with Grupo Trimex, Mexico's largest flour miller, to collaboratively develop and execute regenerative agriculture initiatives for hard red spring wheat grown in Canada and the United States that is destined for Mexico.

Chief executive officer commentary

"Building on the strong start to the fiscal year last quarter, we continued to focus on our fundamental strategy of maximizing our network of assets and finding creative, capital-efficient methods of expanding our farmer-direct origination," commented Carlos Paz, president and CEO of Ceres. "By remaining steadfast in our strategic approach and skillfully handling the trading and marketing of our core products, we achieved the second-best Q2 in the corporation's history.

"Our joint ventures at Berthold Farmers Elevator and Thief River Falls continue to show considerable growth, with volumes handled this quarter increasing 11 per cent and 33 per cent, respectively, highlighting the efficacy of our operational improvements and our ability to maximize the value of our network and assets. For the second quarter in a row, we achieved record-breaking volumes and gross margins in the seed retail and processing segment. Implementing operational efficiencies at the Jordan crush plant and our team's pro-active purchasing of soybean volumes drove this success, enhancing operational capacity and efficiency."

Outlook

Mr. Paz added: "Geopolitical instability continues to be a contributing factor to market volatility. As the conflicts in Ukraine and Gaza persist without resolution, the new crisis in the Red Sea has introduced additional uncertainties in the Middle East. While markets have adjusted to the shifting geopolitical landscape after initial surges in volatility, the potential for escalating geopolitical tensions could lead to renewed market volatility. Agricultural markets are currently focused on the prospect of record South American crops and the continued decrease in China's demand but will soon pivot to spring forecasts for the corn belt, Northern Plains and Canadian Prairies. Anchored by our ability to quickly identify market dynamics and global crop trends, our team's expertise will enable the corporation to capitalize on emerging market opportunities as they arise.

"Moreover, our partnership with Trimex to jointly create and implement regenerative agriculture initiatives illustrates the expansive opportunities for the advancement of our regenerative agriculture strategy. This collaboration puts us in a strong position to foster more efficient growing practices and offer tailored regenerative agriculture and supply chain solutions to strategic customers. The promising prospects of regenerative agriculture, combined with our dedication to efficiently trade and market our core products, maximize the value of our assets, and leverage synergies within our partnerships, position us favourably for the quarters ahead."

Conference call details

Management of Ceres will host a conference call today, Feb. 14, 2024, at 9 a.m. ET. All interested parties can join the conference call by dialling 1-888-390-0605 or 416-764-8609. The conference call ID is 82753696. Please dial in 15 minutes prior to the call to secure a line.

A live audio webcast of the conference call will be available on-line. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

About Ceres Global Ag Corp.

Ceres and its subsidiaries add value across agricultural, energy and industrial supply chains through efficient sourcing, storing, transporting and marketing of high-quality agricultural commodities, value-added products and raw materials. Leveraging its network of commodity logistics centres and team of industry experts, Ceres connects farmers to customers around the world.

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