REGINA, SK, May 12, 2026 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGTF) ("AGT" or the "Company") announces its financial results for the quarter ended March 31, 2026.
Highlights
Adjusted Net Earnings $7.1 millionAdjusted Net Earnings per diluted share $0.15 (2025 - $0.06)Adjusted Free Cash Flow $16.4 millionAdjusted Free Cash Flow conversion 42%Adjusted EBITDA $39.1 millionNet debt to Adjusted EBITDA 0.54xQuarterly Common Share Dividend declared
Overview
During the first quarter of 2026, AGT completed an Initial Public Offering and concurrently closed a private placement with Fairfax Financial Holdings Limited ("Fairfax"). The Company raised $596 million and reduced its total debt by approximately $920 million. At March 31, 2026, the company has over $1.2 billion in equity, a strong balance sheet and is well positioned to execute its business plan and organic growth objectives.
"AGT delivered solid operating performance despite disruptions in global trade and food security programs related to the Middle East conflict," said Murad Al‑Katib, Chief Executive Officer. "We had stronger Adjusted Net Earnings and Adjusted Free Cash Flow in 2026. This quarter's performance highlights the success of our pivot to focus on packaged foods and valued added processing positioning us for accelerated growth in 2026 and beyond. Our pasta, "Better For You" and value-added businesses showed resiliency and strength and our strong balance sheet will allow us to execute on our business plan."
The table below summarizes the way management reviews the business.
First Quarter Financial Summary
Three months ended Mar 31,
(Stated in thousands of Canadian dollars excluding earnings per share)
2026
2025
Adjusted Net Earnings
$ 7,117
$ 2,345
Adjusted Free Cash Flow
16,356
13,708
Adjusted EBITDA
39,130
39,993
Gross profit including net monetary gain
68,720
61,350
Adjusted Gross Profit
62,870
63,381
Revenues
560,662
860,161
Net Loss
(96,937)
(4,956)
Net Loss per basic and diluted common share
(2.93)
(0.23)
Adjusted Net Earnings per diluted share
0.15
0.06
First Quarter Highlights
Adjusted Net Earnings in the current year quarter improved to $7.1 million or $0.15 per diluted share and adjusts the Net Loss for the IPO related impacts, interest expense on debt repaid from the IPO for the period up to March 9, 2026 and unrealized foreign exchange losses.
Adjusted Free Cash Flow improved to $16.4 million representing an Adjusted EBITDA conversion rate of 42%. The sale of AGT's rail assets in the first quarter of 2025 also had a $6 million positive impact on Adjusted Free Cash Flow in the prior year.
Adjusted EBITDA in 2026 of $39.1 million was relatively consistent with 2025 despite the impact of the conflict and unrest in the Middle East, weather related challenges in South Africa, and the one-week Türkiye plant shutdown for the Ramadan holiday in Q1 2026 versus Q2 in the prior year. On a combined basis, these resulted in lower Adjusted EBITDA of approximately $10 million in Q1 2026. Management believes these impacts are primarily timing differences and will largely reverse over the remainder of the year.
Gross profit including net monetary gain of $68.7 million in 2026, reflected an increase from $61.4 million in 2025 primarily attributable to the higher non-cash favourable impact of hyperinflationary accounting. Adjusted Gross Profit of $62.9 million in 2026 was consistent with $63.4 million in 2025.
Adjusted Net Debt to Adjusted EBITDA Ratio for the twelve months ended March 31, 2026 was 0.54 (3.35 at December 31, 2025) and reflects the positive impact of the IPO. Future Adjusted Free Cash Flow will be used to fund working capital, capital expenditures, dividends, and repay trade finance facilities.
Revenues for the three months ended March 31, 2026 were $560.7 million compared to $860.2 million in 2025 due to a reduction in total volumes of 13% primarily related to shipping delays related to the war in the Middle East including lower food security sales and lower commodity prices following the strong 2025 North American Harvest.
Dividend: The Company declared a quarterly cash dividend for Q2 2026 of $0.05 per common Share, payable on July 15, 2026 to shareholders of record as of the close of business on June 30, 2026. The Company's intention is to continue to declare dividends on a quarterly basis.
NCIB: AGT intends to file a normal course issuer bid ("NCIB") for its common shares, subject to TSX approval. If approved by the TSX, AGT would be permitted to purchase for cancellation, through facilities of the TSX or such other permitted means, up to 5% of AGT's issued and outstanding common shares over a period of twelve months (calculated in accordance with TSX rules) at prevailing market prices.
This press release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted Gross Profit, Adjusted Free Cash Flow, Adjusted Net Earnings, Adjusted Net Earnings per diluted common share, Adjusted Free Cash Flow conversion and Adjusted Net Debt to Adjusted EBITDA Ratio that do not have any standardized meanings as prescribed by GAAP and, therefore, are considered non-GAAP measures. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. For further details, see the sections titled "Non-GAAP Financial Measures" in this release and in the Company's MD&A for the three months ended March 31, 2026.
Additional Information
A copy of AGT's Unaudited Condensed Consolidated Interim Financial Statements ("Financial Statements") for the quarters ended March 31, 2026 and 2025 and related Management's Discussion and Analysis ("MD&A") have been filed with the Canadian Securities Regulatory authorities and are available on SEDAR at sedarplus.ca and AGT's website at agtfoods.com. The Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting using accounting policies that are consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the reporting currency is in Canadian dollars.
Conference Call
A conference call to discuss the First Quarter 2026 results is scheduled for Wednesday, May 13, 2026 at 8:30 a.m. Eastern time. To join the conference, please dial 1-833-821-0163 (toll free from Canada & the U.S.) or +1-647-846-7232 (from outside Canada & the U.S.). An audio replay of the conference call will be available on AGT's website after the conference call by visiting www.agtfoods.com.
Annual General Meeting
AGT's Annual Meeting (the "Meeting") will be held on June 23, 2026, at 11:00 a.m. Eastern time, in a virtual only format via live audio webcast at https://meetings.lumiconnect.com/200-879-895-807. or accessible on our website at www.agtfoods.com/AGM. Details on how to vote and access the Meeting can be found in the Management Information Circular, which is available on the AGT website at www.agtfoods.com, under the Company's profile at sedarplus.ca and at TSX Trust Company's website at https://docs.tsxtrust.com/gtxbbfo0u5.
About AGT
AGT is a globally diversified food company that produces high-quality, nutritious products for everyday consumption. Our products reach consumers in 127 countries, and our global footprint consists of 39 state-of-the-art, highly efficient manufacturing facilities operating across 5 continents. These facilities are strategically located near critical freight and logistics infrastructure and in close proximity to key agricultural growing regions, which provides us with the ability to efficiently source, process, and produce healthy plant-based food products that are both tasty and affordable. Our integrated supply chain utilizes the latest manufacturing technologies, allowing us to produce a growing portfolio of packaged food brands in everyday categories including pasta, pulses, rice, and cereals. In addition, AGT is an integral partner to many global packaged food companies and international retailers through production, supply, and innovation partnership agreements to manufacture proprietary, value-added products for their owned global and store brands.
To learn more, please visit: www.agtfoods.com.
Non-GAAP Performance Measures
This press release makes reference to certain non-GAAP measures, including non-GAAP ratios. These measures are not recognized measures under IFRS Accounting Standards and do not have a standardized meaning under IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies Rather, these measures are provided as additional information to complement those IFRS Standards measures by providing further understanding of AGT's results of operations from management's perspective. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS Accounting Standards measures. AGT also believes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management also uses non-GAAP measures in order to review operating performance and comparisons ...
