VERDE GROWS SALES BY 63% AND REVISES UPWARDS ITS 2021 SALES TARGET
Verde AgriTech Plc (OTCQB: AMHPF) reported a strong Q1 2021, with sales up 63% at 16,558 tonnes and revenues reaching $831,000, compared to $510,000 in Q1 2020. Brazilian Real revenue soared 113% to R$3,599,000. Despite a net loss of $1,008,000 (up from $792,000 in Q1 2020), cash reserves rose 150% to $2,021,000. The company increased its 2021 revenue target to R$55 million, indicating a promising growth trajectory. Gross margins improved to 41% from 35% in the previous year. The company plans to unveil new technology on June 2, 2021.
- 63% sales increase with 16,558 tonnes sold.
- Revenue up 63% to $831,000 from $510,000.
- Brazilian Real revenue increased by 113% to R$3,599,000.
- Gross margin improved to 41% from 35%.
- Cash reserves increased by 150% to $2,021,000.
- Raised 2021 revenue guidance by 10% to R$55 million.
- Net loss increased to $1,008,000 from $792,000.
- Loss per share rose to $0.020 from $0.017.
Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) ("Verde” or the “Company”) is pleased to announce its financial results for the first quarter, ended on March 31, 2021 (“Q1 2021”).
Q1 2021 FINANCIALS
-
Sales increased by
63% with 16,558 tonnes sold, compared to 10,170 tonnes sold in the first quarter of 2020 (“Q1 2020”). -
The Company recognised revenue of
$831,000 , an increase of63% compared to$510,000 in Q1 2020. -
Brazilian Real (“R$”) revenue increased by
113% , to R$3,599,000 compared to R$1,690,000 in Q1 2020. -
Gross margin increased to
41% in Q1 2021, compared to35% in Q1 2020. -
In line with the Company's expectation for Brazil's rainy season typical of the years’ first quarter, Verde recorded a Q1 2021 net loss of
$1,008,000 , compared to a net loss of$792,000 in Q1 2020. -
Cash held by the Company increased by
150% , to a total of$2,021,000 in Q1 2021, compared to$806,000 in Q1 2020.
“We are excited with another strong first quarter, especially in light of the triple-digit revenue growth in local currency. We are confident 2021 will be another successful year in our fast-growth trajectory,” said Cristiano Veloso, Verde’s Founder.
2021 GUIDANCE
The Company’s target for 2021 was to achieve R
"If we continue to see strong sales in the following months above initial expectations, it is natural that the yearly guidance may be further increased over the next quarterly results,” completed Mr. Veloso.
SELECTED ANNUAL FINANCIAL INFORMATION
The following table provides information about three months ended March 31, 2021 as compared to the three months ended March 31, 2020. All amounts in CAD $'000.
C$’000 |
Q1 2021 |
Q1 2020 |
Tonnes sold ‘000 |
17 |
10 |
Revenue per tonne sold $ |
50 |
50 |
Production cost per tonne sold $ |
(30) |
(32) |
Gross Profit per tonne sold $ |
20 |
18 |
Gross Margin |
|
|
|
|
|
Revenue |
831 |
510 |
Production costs |
(490) |
(332) |
Gross Profit |
341 |
178 |
Gross Margin |
|
|
Sales and product delivery freight expenses |
(531) |
(422) |
General and administrative expenses |
(697) |
(420) |
Operating Profit/(Loss) before non-cash events |
(887) |
(664) |
Share Based Payments (Non-Cash Event) * |
(19) |
(40) |
Depreciation and Amortisation * |
(5) |
(12) |
Profit on disposal of plant and equipment * |
9 |
- |
Operating Profit/(Loss) after non-cash events |
(902) |
(716) |
Corporation tax** |
(31) |
(18) |
Interest Income/Expense |
(75) |
(58) |
Net Profit / (Loss) |
(1,008) |
(792) |
* Included in General and Administrative expenses in financial statements. |
||
** For further details please refer to Q1 2021 Management’s Discussion and Analysis. |
||
Q1 2021 compared with Q1 2020
For Q1 2021 the Company generated a net loss of
Product Sales
In Q1 2021, the Group sold 16,558 tonnes, an increase of
Revenue
Revenue from sales for Q1 2021 was
Production costs
Production costs include all direct costs from mining, processing, logistics from the mine to the factory and supply chain salaries, which are paid in R$. Production costs for Q1 2021 were
SALES EXPENSES
C$’000 |
Q1 2021 |
Q1 2020 |
Sales and marketing expenses |
(302) |
(265) |
Product delivery freight expenses |
(229) |
(157) |
Total |
(531) |
(422) |
Sales and marketing expenses
Sales and marketing expenses include sales and marketing salaries, the promotion of the Product such as fees paid to sales agents, marketing events, car rentals, travel within Brazil, hotel expenses and Customer Relationship Management (CRM) Software licenses. Expenses increased by
Product delivery freight expenses
Product delivery freight expenses were
GENERAL AND ADMINISTRATIVE EXPENSES
C$’000 |
Q1 2021 |
Q1 2020 |
General administrative expenses |
(478) |
(220) |
Legal, professional, consultancy and audit costs |
(159) |
(163) |
IT/Software expenses |
(52) |
(22) |
Taxes and licenses fees |
(8) |
(15) |
Total |
(697) |
(420) |
General administrative expenses
These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of the executives and administrative staff in Brazil. The costs have increased by
Legal, professional, consultancy and audit costs
Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fee and regulatory consultants. The costs in Q1 2021 are comparable with Q1 2020.
IT/Software expenses
IT/Software expenses include software licenses such as Microsoft Office and enterprise resource planning (ERP). In Q1 2021 expenses were
Taxes and licences
Taxes and licence expenses include general taxes, product branding and licence costs. In Q1 2021, expenses were
Share Based Payments (Non-Cash Event)
These costs represent the expense associated with stock options granted to employees and directors. In Q1 2021 expenses were
Q1 2021 RESULTS CONFERENCE CALL
The Company will host a conference call on Thursday, May 20, 2021 at 11:00 am Eastern Time (4:00 pm Greenwich Mean Time), to discuss Q1 2021 results and provide an update. Subscribe using the link below and receive the conference details by email.
Date: |
Thursday, May 20, 2021 |
Time: |
11:00 am Eastern Time (4:00 pm Greenwich Mean Time) |
Subscription link: |
The Company’s first quarter financial statements and related notes for the period March 31, 2021 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
TECHNOLOGY LAUNCH:
The Company will introduce a new technology to the market on June 02, 2021 and host a Q&A session on June 09, 2021 in order to provide further details about it. Subscribe using the link below and receive the conference details by email.
Date: |
Wednesday, June 09, 2021 |
Time: |
11:00 am Eastern Time (4:00 pm Greenwich Mean Time) |
Subscription link: |
INVESTORS NEWSLETTER
Subscribe to receive the Company’s monthly updates at: http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at: http://bit.ly/InvestorsNL-April2021
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
Cautionary Language and Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005240/en/
FAQ
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