Mr. David Hanna reports

GFI ANNOUNCES SECOND QUARTER 2024 RESULTS

Global Food and Ingredients Ltd. has released its second quarter financial results for the three and six months ended Sept. 30, 2023.

"The second quarter saw a return to normal seasonality after the impacts of delayed shipments in the prior year caused by supply chain issues at that time. GFI continued its efforts in prioritizing higher margin generating business lines, specifically split peas, which generated a record quarter," commented David Hanna, Global Food's chief executive officer. "Over all, we are confident that our focus on our core ingredients business, particularly our value-added ingredients, and our rightsizing of non-revenue-generating overhead expenses will drive the company forward. We have a strong competitive position with our state-of-the-art pea splitting facility in regular operation entering the current crop year, which began in late August. Our management team continues to focus on unlocking shareholder value and liquidity to support continued business growth, and realize on timely market opportunities as they arise."

Second quarter results

Highlights -- three months ended Sept. 30, 2023:

• The company recorded revenue of $17.6-million in the three months ended Sept. 30, 2023, down 26.4 per cent from the prior-year quarter, as normal seasonality returned following last year's supply chain disruptions.
• The period included a record quarter of revenue from the company's split pea operation, amounting to $2.4-million in the three months ended Sept. 30, 2023.
• Sales backed by the company's shift to higher-margin product lines, specifically plant-based pet food ingredients, split peas and downstream retail packaged products, represented 43.7 per cent of total revenue during the three months ended Sept. 30, 2023, an increase of 12.3 per cent over the prior-year comparable period.
• Loss for the period from continuing operations was $2-million, an improvement of $300,000, or 11.8 per cent, primarily due to a reduction in the company's overhead expenses during the period.

Highlights -- six months ended Sept. 30, 2023:

• The company recorded revenue of $39.3-million in the six months ended Sept. 30, 2023, a decline of 27 per cent over the prior-year period.
• Sales backed by the company's shift to higher-margin product lines, specifically plant-based pet food ingredients, split peas and downstream retail packaged products, represented 40.5 per cent of total revenue during the six months ended Sept. 30, 2023, an increase of 11.6 per cent over the prior-year period.
• Loss for the period was $4.1-million, an improvement of 34.6 per cent over the prior comparable period, predominantly due to improved company overhead and a significant reduction in one-time expenses not incurred in the current period.

Other highlights and business updates:

• The company continues to work toward closing of the previously announced minority investment into its pet food division by 35 Oak Holdings Ltd. During Q2 2024, the company received a $3-million advance toward the pending transaction. The transaction is expected to unlock significant value, generating substantial capital to strengthen the company's balance sheet. The company has received conditional approval from its lenders, subject to certain conditions being met, and is working diligently on finalizing the definitive agreements to complete the transaction. The transaction, which is subject to TSX Venture Exchange approval, is anticipated to close in the coming months.
• As previously announced, the company received a commitment from 35 Oak to purchase $500,000 of equity in a private placement of units. It is now anticipated that this investment will be in the form of a subordinated loan to the company. The company will no longer pursue a non-brokered private placement at this time.

The unaudited condensed consolidated interim financial statements for the three and six months ended Sept. 30, 2023, and related management's discussion & analysis (MD&A) for the three and six months ended Sept. 30, 2023, are available under the company's profile at SEDAR+.

About Global Food and Ingredients Ltd.

Global Food is a fast-growing Canadian plant-based food and ingredients company, connecting the local farm to the global supply chain for peas, beans, lentils, chickpeas and other high-protein specialty crops. Global Food's vision is to become a vertically integrated farm-to-fork plant-based company providing traceable, locally sourced, healthy and sustainable food and ingredients. Global Food is organized into four primary business lines: core ingredients, value-added ingredients, plant-based pet food ingredients and downstream products. Headquartered in Toronto, Global Food buys directly from its extensive network of farmers, processes its products locally at its four wholly owned processing facilities in Western Canada and ships to 37 countries across the world.

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