AGI Announces First Quarter 2024 Results Featuring Continued Margin Strength and Reaffirms Full Year Adjusted EBITDA Outlook

Winnipeg, MB, April 29, 2024 – Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we” or “our”) today announced its financial results for the three-months ending March 31, 2024.

First Quarter 2024 Highlights

Revenue1 of $315 million decreased by 9% on a year-over-year (‘YOY’) basis
Adjusted EBITDA2 of $50 million increased by 4% on a YOY basis
Adjusted EBITDA margin %3 increased by roughly 200 basis points to 15.9% from 13.9% on a YOY basis Net debt leverage ratio3 of 2.9x at March 31, 2024 vs 3.6x at March 31, 2023


  • We reaffirm our previously stated Adjusted EBITDA guidance for 2024 of at least $310 million2

  • Order book4 up 12% YOY to $729 million as of March 31, 2024, with significant strength in the International

    regions of our Commercial segment

  • While our overall outlook for the full year has not changed, we have observed a trend in Commercial project

    timing which has further shifted expected deliveries into the second half of the year

  • As a result, we expect all of the full year 2024 Adjusted EBITDA growth over 2023 to occur in the second half of 2024, with first half 2024 Adjusted EBITDA results generally expected to be down relative to first half 2023

    We are encouraged by our first quarter results which are largely on-track with how we expected the year to begin given our order book mix,commented Paul Householder, President & CEO of AGI. The increase in first quarter adjusted EBITDA, driven by favourable margins, reinforces our confidence that AGI’s profitability levels have structurally expanded. With high activity levels across most areas of the Company, we are closely monitoring the North American Farm segment where pockets of cautious purchasing behaviour existed through the first quarter and will impact second quarter Farm segment results. Overall, we remain confident in our full year outlook and reaffirm our 2024 Adjusted EBITDA guidance of at least $310 million given the support of a near-record level order book and strong Commercial activity internationally.

    “Balance sheet metrics remain in focus for the entire team across AGI,” added Jim Rudyk, CFO of AGI. “Our net debt leverage ratio again moved downward year-over-year, from 3.6x to 2.9x, edging upwards from 2.8x3 quarter-over-quarter. The increase was largely due to inventory investment required for the Commercial portion of our order book. This is the first time this ratio has ticked up quarter-over-quarter since early 2022. We remain squarely focused on moving this ratio below the 2.5x3 level in 2024 which is well within our operating plan. In advance of reaching our leverage milestones, we continue the financial analysis and strategic planning for various high priority growth investments under consideration.”