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Verde Announces Q1 2024 Results By

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(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in Q1 2024: C$1.00 = R$3.67)

SINGAPORE, May 14, 2024 (GLOBE NEWSWIRE) — Verde AgriTech Ltd (TSX: NPK) (“Verde or the Company) announces its financial results for the period ended March 31, 2024 (Q1 2024).

Verde’s Q1 2024 results were affected by adverse climate conditions, which reduced overall fertilizer demand in Brazil. This contrasts with Q1 2023, which benefitted from record potash prices and agricultural commodity prices, in good part as a consequence of the outbreak of Ukraine-Russia war.

In 2022, Brazilian farmers committed to purchasing agricultural inputs in advance for the 2023 “second crop (known locally as safrinha) of corn that is sowed after the main crop. That year, agricultural commodity prices were high and the outlook for the 2023 safrinha of corn was still excellent. The application of fertilizers for the safrinha usually occurs in the first quarter of the year, which further drove the positive financial results for Verde in Q1 2023.

In Q1 2024, however, a “perfect storm” hit the Brazilian fertilizer market. Startin in the second half of 2023, the El Niño effects altered rainfall patterns, severely affecting Brazil’s agricultural cycle all the way through early 2024. The irregular and unpredictable precipitation complicated agricultural planning, increasing risks to crop productivity and profitability. Consequently, many soybean farmers postponed planting, leading to a widespread decision to forego planting the safrinha corn. This resulted in a significant decrease in fertilizer demand in the first quarter of 2024.

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All in all, the Company’s results for Q1 2024 are lower than those for Q1 2022 and Q1 2023, quarters that benefitted from the previously mentioned geopolitical factors. When compared to the sales volume and revenue of Q1 2021 however, the Q1 2024 results were approximately five times greater, confirming the broader trend:

  Q1 2021 Q1 2024 ˆ†Q1 21-24
Sales (˜000 tons) 17 85 400%
Revenue (C$’000) 831 5,068 510%
  FY 2021 FY 2024 ˆ†FY 21-24
Sales (˜000 tons) 400 TBD TBD
Revenue (C$’000) 27,709 TBD TBD

Though we are disappointed with the overall market conditions and results for Q1 2024, these were still over five times greater than Q1 2021. In that year, by December 2021, Verde had delivered 400 thousand tonnes. The fundamentals are in place…

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