Our Farm segment posted another strong result in the fourth quarter with sales up 28% supported by significant strength in the US and abroad. In terms of materiality to AGI, results sales growth and margins profile, 2021 was a breakout year for AGI Brazil with now a well established brand, market leading solutions, increased market share and strong fundamental demand for our products and systems our Brazil operation is well-positioned for continued momentum and success in 2022. As of the fourth quarter, our margins in Brazil have caught up to overall AGI margins, and we are focused on continued improvement. AGI Brazil now accounts for approximately 10% consolidated sales. Sales in the fourth quarter alone were greater than all of 2020 combined. Sales grew 131% for the full year and 271% for the quarter. AGI’s business in Brazil continues to hit its stride and was a significant source of growth throughout 2021 and in the fourth quarter. Now let’s turn to a more detailed review of our fourth quarter and 2021 results. Our success in 2021 and our continued growth plan in 2022 is due in large part to an outstanding team that is aligned on shared goals, thrives on collaboration and is excited about creating a truly unique business, focused on delighting our customers. In fact, our current expectation is that 2022 adjusted EBITDA will exceed $200 million for the first time. The combination of strong backlogs and sales pipelines provide solid visibility for 2022 and inform our expectation for double digit growth in sales and adjusted EBITDA in 2022. Sales intake and quoting remain very active with notable strength in Brazil, US Farm, North American Commercial, EMEA and India. This is very much the case coming into 2022 with backlogs continuing to build despite very strong year over year comparables. Over the past five years, we have invested with a sense of urgency, building a strong foundation for AGI that also provides robust opportunities for continued growth. And today, Ukraine and Russia represent approximately 3% of our total business. Our efforts diversify, enabled AGI to post record results in 2021 despite a severe drought in Western Canada. At that time, close to half our farm business in Western Canada and nearly 100% of our international business was in Ukraine and the Black Sea region. There was a time not long ago where severe drought in Western Canada or conflict in Ukraine would have had a material impact on AGI. This diversification has increased both our growth potential and the resiliency of AGI. Our global platform is now nicely diversified by geography, segment and customer group. As a healthy combination of strong activity in our legacy businesses including our portable farm segment was augmented by robust growth from areas we have invested in recently including Brazil, AGI food, EMEA, US Farm, and AGI Digital. Solid organic growth, market share gains and resilient margin performance contributed to our results.įor the full year, sales and adjusted EBITDA grew 20% and 18% respectfully. Our fourth quarter included an outstanding year for AGI, setting records for both sales and adjusted EBITDA. We had a record fourth quarter with sales and adjusted EBITDA up 44% and 61%, supported by strong results across our farm, commercial, food and digital segments. As usual I will make a few remarks on the quarter, hand the call over to Jim for a more detailed recap and then open the call for questions. Now I thank you for joining Jim Rudyk and I to discuss our fourth quarter results and our outlook for 2022. Our team in the region is safe and we’re looking for ways to contribute to the world’s effort to support Ukraine. I will start this call by joining the world and expressing our support for the people of Ukraine, and strongly denouncing Russia and the actions we are all witnessing. I would now like to turn the conference over to Tim Close. This call is being recorded on Wednesday, March 9, 2022. Good morning, ladies and gentlemen, and welcome to the AG Growth International 2021 Fourth Quarter Results Conference Call. ( OTCPK:AGGZF) Q4 2021 Earnings Conference Call Ma8:00 AM ET
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