Lentil prices hurt AGT

Article Excerpt

AGT FOOD & INGREDIENTS $16.51 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 24.2 million; Market cap: $400.2 million; Dividend yield: 3.6%) continues to feel the negative impact of low worldwide prices for lentils. That’s due to bumper crops and a resulting oversupply. In the quarter ended December 31, 2017, AGT’s sales fell 29.5%, to $459.1 million from $650.9 million a year earlier. It lost $0.17 a share, compared to a profit of $0.72. A growing part of AGT’s operations has come from selling higher profit-margin products, including packaged foods. That helps to offset the cyclicality of commodity sales. AGT’s dividend, which yields 3.6%, appears safe. However, it still needs prices for lentils and other pulses to rebound. AGT Food & Ingredients is a hold. hold…