Bevo Agro Inc. (BVO:TSX-Ven.) reports a net profit of $434,357 for the three months ending December 31, 2003. This compares to net profits of $975,777 in the same quarter last year. Higher utility, labour and interest expenses associated with the 11.5 acre expansion affected the financial results for the quarter. The greenhouse portion of the 11.5 acre expansion is nearly complete and the additional alternative fuel system and shipping areas of the addition should be completed by June.
 
For the six months ending December 31, 2003, Bevo's net earnings were $476,858 ($0.02 per share), compared to $1,071,591 ($0.05 per share) for the six months ending December 31, 2002.
 
Sales (shipments to customers) were $4,568,547 for the second quarter compared to $5,263,479 for the same quarter a year earlier. For the six months, sales totaled $8,161,785 compared to $8,820,247 for the comparable period last year. Sales of seedlings are customer specific and delivered according to customer request, which may vary from season to season.
 
The full financial benefits of the 50% increase in propagation space are not expected to be realized until the next fiscal year. The increase in propagation space will be utilized to meet customer orders.

Second Quarter Highlights
    1. A portion of the 11.5 acre addition to the Langley propagation plant was opened in mid December.
    2. Maturing long term bank debt was extended with reduced interest rates.

    Financial Summary
    For the     3 months        3 months        6 months        6 months
     ending      Dec 31,         Dec. 31,        Dec. 31,        Dec. 31,
                  2003            2002            2003            2002
    Sales     $4,568,547 100% $5,263,479 100% $8,161,785 100% $8,820,247 100%
    Cost of
     Sales    $2,605,147  57% $2,455,034  47% $5,031,771  62% $4,847,239  55%
              ---------- ---- ---------- ---- ---------- ---- ---------- ----
    Gross
     Margin   $1,963,400  43% $2,808,445  53% $3,130,014  38% $3,973,008  45%
    Expenses
    Operating
     & admi-
     nistra-
     tive     $  461,533  10% $  317,624   6% $  765,985   9% $  584,398   7%
    Admin.
     fees,
     wages,
     benefits $  202,817   4% $  203,350   4% $  393,324   5% $  376,312   4%
    Amortiza-
     tion     $  369,744   8% $  317,126   6% $  717,491   9% $  614,520   7%
    Interest
     expenses $  226,505   5% $  263,821   5% $  487,951   6% $  531,065   6%
              ---------- ---- ---------- ---- ---------- ---- ---------- ----
              $1,260,599  27% $1,101,921  21% $2,364,751  29% $2,106,295  24%
    Earnings
     from
     opera-
     tions    $  702,801  16% $1,706,524  32% $  765,263   9% $1,866,713  21%
    Other                                     $    7,420
    Earnings
     before
     taxes    $  702,801  16% $1,706,524  32% $  772,683   9% $1,866,713  21%
    Income
     taxes -
     current  $  193,172   4% $  621,357  12% $  193,172   2% $  621,357   7%
    Income
     taxes -
     future   $   75,272   2% $  109,390   2% $  102,653   1% $  173,765   2%
              ---------- ---- ---------- ---- ---------- ---- ---------- ----
    Net
     earnings
     for
     period   $  434,357  10% $  975,777  18% $  476,858   6% $1,071,591  12%
    EBITDA    $1,299,050  28% $2,287,471  43% $1,978,125  24% $3,012,298  34%
    CASH FLOW $  879,373  19% $1,402,293  27% $1,297,002  16% $1,859,876  21%
    Net Earnings per share         $ 0.02    $ 0.04    $ 0.02    $ 0.05
    EBITDA per share               $ 0.06    $ 0.10    $ 0.09    $ 0.13
    Cash flow per share            $ 0.04    $ 0.06    $ 0.06    $ 0.08
    Bevo Agro's trailing twelve months comparative results are summarized
    below:
    For the 12 months    June 30,     Dec. 31,      June 30,      Dec. 31,
     ending               2002         2002          2003          2003
    Sales             $ 13,584,116  $ 17,221,384  $ 20,073,130  $ 19,414,667
    Gross Margin      $  4,149,215  $  5,889,168  $  7,222,435  $  6,379,440
    Net earnings for
     period           $    314,662  $  1,133,695  $  1,905,234  $  1,417,780
    EBITDA            $  2,590,046  $  4,178,025  $  5,387,846  $  4,622,089
    CASH FLOW         $  1,511,358  $  2,318,485  $  3,434,700  $  2,985,980