Mr. G.W.J. Pottow reports

THE BECKER MILK COMPANY LIMITED: 2023 ANNUAL FINANCIAL RESULTS

The Becker Milk Company Ltd. has released the results for the year ended April 30, 2023.

Highlights:

• Total revenues for the year ended April 30, 2023, were $2,860,435 compared with $2,670,042 for the same period in 2022;
• Net operating income for the year was $2,294,028 compared with $2,121,894 in 2022;
• There was a net loss of 43 cents per share for the year, compared with $3.13 net income per share in 2022.

Financial highlights

Net operating income for the year ended April 30, 2023, increased $172,134 to $2,294,028 as compared with the previous year, primarily as a result of a non-recurring increase in total property revenue related to completion of negotiations with Mac's Convenience Stores Inc. regarding base rents for most of its locations. In addition, property operating expenses were lower in the year ended April 30, 2023.

Components of the $6,444,338 decrease in net income for the year ended April 30, 2023, compared with the year ended April 30, 2022, are as shown in the attached table.

The large unfavourable change in the fair value adjustment to investment properties was the result of revised assumptions with respect to capitalization rates as at April 30, 2023.

Adjusted funds from operations

For the year ended April 30, 2023, the company recorded adjusted funds from operations of $612,280 (34 cents per share) compared with $553,929 (31 cents per share) in 2022.

Strategic review

The board of directors continually evaluates strategic directions for the company and has engaged in discussions with potential acquirers. While the company has engaged in some discussions within the last year, none of those discussions are active at this time. The company continues to review its strategic alternatives and will update the market as appropriate, and as required.

The company's annual financial statements for the year ended April 30, 2023, along with the management's discussion and analysis and annual information form, will be filed with SEDAR.