Replenish Nutrients Announces 2024 Full-Year and Fourth Quarter Financial Results and Business Update
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Business Update and Market Outlook
The fourth quarter of 2024 saw lower revenues and sales volumes, but improved gross profit margins, gross profit percentage and adjusted EBITDA compared to the same quarter in the prior year. While revenues, sales volumes and margins were down on a full year basis, the Company expects increased revenues, margins and cash flows once full-scale granulated fertilizer production ramps up at the
As it relates to the recent macro economic events surrounding tariffs and various international trade relations, the Company believes the resilient and large domestic agriculture market in
On the financing front, subsequent to year end, the Company closed multiple debt and equity financings for a total of approximately
Overall, the fourth quarter continued to demonstrate the strong metrics of the Company's granulated fertilizer product while also making significant progress on the
Consolidated Financial Highlights
- Revenues of
$2.6 million and$6.9 million compared to$3.6 million and$13.9 million in the prior year, a decrease of$1.0 million and$7.0 million , respectively. The decrease is largely due to the expected cycling of different application rates of nutrient requirements for different crop types. Customer demand for the Company's product remains robust. - Gross profit of
$0.3 million and$0.6 million compared to$0.2 million and$1.4 million in the prior year, a increase of$0.1 million and a decrease of$0.7 million , respectively. The increase in the quarter is due to higher average pricing and lower input costs while the increase for the full year is due to lower average pricing and higher input costs. - Net loss of
$3.1 million and$4.3 million compared to net earnings of$1.0 million and$0.1 million in the prior year, a decrease of$4.1 million and$4.4 million , respectively. The decrease is largely due to the non-cash impairment of intangible assets recognized in the fourth quarter of 2024. - Cash flows from operating activities of
$0.4 million and$0.3 million compared to cash flows used-in operating activities of$0.3 million and$0.5 million in the prior year, an increase source of cash of$0.7 million and$0.8 million . The increases were predominantly due to higher sources of cash from working capital year over year.
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Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to financial and operating results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will", "may", "would", "should", "could", "plans", "expects", "budget", "schedule", "estimates", "forecasts", "intends", "anticipates", "believes", and similar expressions, including variations thereof and negative forms. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; regulatory risks; other risks of the energy and fertilizer industries and other risk factors disclosed in our public disclosure which can be found under our profile on SEDAR+ at www.sedarplus.ca. Readers are cautioned that these risk factors should not be construed as exhaustive. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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