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Verde announces strategic sales partnership with Lavoro

Published by , Editorial Assistant
World Fertilizer,

Verde AgriTech has announced that it has entered a strategic partnership with Grupo Lavoro, the largest distributor of agricultural inputs in Latin America, to more swiftly open up new markets for Verde’s multinutrient potassium products, BAKS® and K Forte® sold internationally as Super Greensand® in Brazil.

Lavoro operates over 190 stores, staffed by 2500 employees in Brazil, many of whom are agronomists and farming specialists who work closely with its over 55000 clients. Lavoro will be a distributor of Verde’s Products.

“There is an increasing demand for products that enable more sustainable food production methods. We are therefore proud to now offer Verde AgriTech’s Products to our portfolio, expanding the options for our clients”, commented Roberto Rosa, Lavoro’s Purchasing Director. “Over the years, Verde has assembled a formidable sales team that supports our clients from the first contact all the way through to a successful harvest. Lavoro embodies many of our team’s values and competencies, but with a reach beyond Verde’s current geographical scope.

Furthermore, Lavoro’s track record in promoting biological products in Brazil will help accelerate the successful uptake of K Forte-Bio Revolution, helping enable the fourth agricultural revolution through microorganisms across Brazil”, commented Cristiano Veloso, Verde’s founder, and CEO.

The Company’s 2022 guidance updated on May 03, 2022 provides for sales of 1 000 000 t of Verde’s Product, with revenue of C$109.09 million, EBITDA of C$49.06 million and net earnings per share of C$0.87. The 2023 guidance provides for sales of 2 000 000 t.

Verde currently operates Plant 1 with a capacity of 0.6 million tpy. Plant 2 is on track for commissioning in 3Q22 with an additional capacity of 2.4 million tpy. With Plant 2, the Company’s overall production capacity is expected to be 3 000 000 tpy, establishing Verde as Brazil’s largest potash producer by capacity. Plant 3’s construction is planned for 2023, and is expected to add 10 million tpy, which will allow the Company to produce up to 16.4% of the current national demand for potash.

Verde has a combined measured and indicated mineral resource of 1.47 billion t at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade). This amounts to 295.70 million t of potash in K2O, sufficient to supply Brazil’s potash demand for generations. In 2021 Brazil’s total consumption of potash in K2O was 7.92 million.

With over 6000 clients since 2017, the Company achieved an Earned Growth Rate of 165% in 2021, compared to 61% in 2020, demonstrating a higher client repurchase rate and successful client referrals in Brazil, Canada, China, Thailand, Paraguay, and the United States.

Through its proprietary technologies – Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution – used in the development of its Products, Verde was able to achieve a triple-digit growth in revenue and sales in the last years. With the launch of Bio Revolution, Verde’s technology that enables the incorporation of microorganisms to its Product, the Company expects to become a world leader at offering a cost-efficient platform for adding microorganisms to agriculture, boosting plant productivity while improving soil biodiversity.

Verde’s Plant 1 is already endowed with a facility for deploying Bio Revolution. At Plant 2, currently under construction, a proportionally larger Bio Revolution facility will be built, and its operations will start by the end of the year.

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