Alliance Grain Traders recorded improved profits in 2011, but its full potential is being affected by global economic uncertainty.
The Regina company, which buys, processes and exports pulses and other crops in Canada and several other countries, had adjusted net earnings of $22.5 million for the year that ended Dec. 31 2011, up from $20.4 million in 2010.
That was based on full year sales of $760 million, up from $642.1 million the previous year.
Earnings before interest, taxes, depreciation and amortization were $47.6 million, up from $37.3 million.
But its fourth quarter results were off, with adjusted net earnings at $874,000 compared to $1.4 million in the same period the previous year.
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“The global credit crisis, economic downturn and political unrest have certainly affected all sectors in 2011, even staple foods like pulses, pasta and rice,” said Murad Al-Katib, president and chief executive officer of AGT.
“Tighter credit availability and the diminished liquidity of our global client base have affected our sales program temporarily as “hand-to-mouth” buying has continued.
“We are, however, optimistic that a return to more robust demand will come in 2012 as customers seek to replenish what we estimate to be low or depleted local market stocks.”
A more detailed story on the company’s results will be in the April 5 Western Producer.
