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Verde announced 2H20 financial results

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World Fertilizer,

Verde AgriTech Plc has recently announced its financial results for 2Q20, ended 30 June 2020.

2Q20 financial highlights

  • The company recognised revenue of CAN$2 492 586, an increase of 87% compared to CAN$1 329 127 in 2Q19.
  • Production increased by 139% with a total of 80 490 t mined, compared to 33 671 t in 2Q19.
  • Sales increased by 202% with a total of 71 183 t sold, compared to 23 600 t in 2Q19.
  • The company generated a net profit of CAN$443 525, compared to a net loss of CAN$222 657 in 2Q19.
  • Gross margin increased by 12%, with a total of 62% in 2Q20 compared to 50% in 2Q19.

Subsequent events

  • In July 2020, the company secured a bank loan of R$5.3 million (CAN$1.473 million), for CAPEX investment and working capital.
  • In July 2020, the new mill purchased by the company was delivered. It will replace the first mill bought in 2018, thereby increasing Plant 1 name plate production capacity by 14% to 2880 tpd, with expected operational capacity of 2000 tpd.

"Far more important than our net profit is the consistent growth that Verde AgriTech is delivering as it introduces new sustainable technologies to support global food production. We expect this growth to accelerate in the coming years as we launch a new generation of technologies currently under advanced development. Verde AgriTech is looking to revolutionise sustainable production of food,” commented Cristiano Veloso, Verde’s Founder, President and CEO.

“The company continues to show improved year-on-year sales and operational improvement and continued progress toward the stated target of R$32 million revenue for the year, representing 76% growth,” concluded Veloso.

In 2Q20, the vompany sold 71 183 t of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (the product), an increase of 202% in comparison to 23 600 t for 2Q19.

The revenue for 2Q20 increased by 87% with a total of CAN$2 492 586, compared to CAN$1 329 127 in 2Q19. The gross margin for 2Q20 was 62% and the operating profit before non-cash events was $584 500.

The company generated a net profit of CAN$443 525 for 2Q20. The profit per share in 2Q20 was CAN$0.009, against a loss per share of CAN$0.004 in 2Q19.

Most of the product sales in Brazil are expected to take place between June and September, due to the climatic seasonality in the agricultural cycle. Thus, the company’s operations are set for improved production, sales and consequently improved financial results for 3Q20.

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