AGI Announces Record Third Quarter Revenue and Sustained Uptick in Margin Performance; Full Year Outlook for Adjusted EBITDA Margins Increased

Winnipeg, MB, November 7, 2023 – Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we” or “our”) today announced its financial results for the three-months ended September 30, 2023. 

Third Quarter 2023 Highlights 

  • Revenue1 of $410 million increased by 2% on a year-over-year (‘YOY’) basis; 5% sequentially from Q2 2023 
  • Adjusted EBITDA2 of $85 million increased by 11% on a YOY basis 
  • Adjusted EBITDA margin %3 increased by roughly 165 basis points to 20.6% from 19.0% on a YOY basis 
  • Net debt leverage ratio3 of 3.2x at September 30, 2023 vs 4.1x at September 30, 2022 or 3.3x at June 30, 2023 

Nine Months Year-To-Date 2023 Highlights 

  • Revenue1 of $1,147 million increased by 6% on a YOY basis 
  • Adjusted EBITDA2 of $221 million increased by 20% on a YOY basis 
  • Adjusted EBITDA margin % 3 increased by roughly 230 basis points to 19.2% from 16.9% on a YOY basis 


  • Management is reiterating full year 2023 Adjusted EBITDA guidance to be at least $290 million1 
  • Full year 2023 Adjusted EBITDA margin %2 guidance is increased to be at least 18.5%, up from 18.0% prior 
  • Order book4 continues to be strong and is up 3% YOY as of September 30, 2023 

“Our third quarter performance again delivered strong margins and continued progress against our stated strategic priorities,” noted Paul Householder, President & CEO of AGI. “Our company-wide operational excellence initiatives gained additional traction and have steadily translated into a clear positive trend in our margin performance. As our new business management processes become further ingrained in our teams and culture, we expect this new level of margin performance to be sustained and expanded upon over the long-term. As a result, we have again raised our full year Adjusted EBITDA margin guidance to 18.5% from 18.0%, up notably from our originally stated 2023 objective of 17.0%. Heading into the fourth quarter and early 2024, we are committed to complementing our new margin levels with continued revenue growth which will unlock significant value for all stakeholders.” 

“Our sustained focus on balance sheet priorities continued to deliver solid progress in the quarter,” added Jim Rudyk, CFO of AGI. “Our net debt leverage ratio again notched downward, now at 3.2x which decreased from 4.1x year-over-year and 3.3x quarter-over-quarter. In addition, our working capital metrics continue to make significant improvements across the organization, particularly with regard to inventory levels. As progress on inventory is solidified, we can turn our collective attention.

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