Replenish Nutrients Announces 2025 First Quarter Financial Results and Business Update
/NOT FOR DISSEMINATION IN
Business Update and Market Outlook
The first quarter of 2025 saw notable improvements in gross profit percentage and cash flow from operating activities despite lower revenues and sales volumes compared to the same quarter in the prior year. The Company is well poised to continue this strong gross profit trend through its spring and summer sales season. The Company also expects to steadily improve revenues, sales volumes, margins and cash flows as 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, the Company closed multiple debt and equity financings for a total of approximately
Overall, the first quarter continued to demonstrate strong gross profit percentage metrics for granulated and blended fertilizer products while also making significant progress on the
Consolidated Financial Highlights
- Revenues of
$0.4 million compared to$1.3 million in the prior year, a decrease of$0.9 million . 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 and has already surpassed the second quarter volumes and revenues compared to the prior year. - Gross profit of
$0.1 million compared to$0.2 million in the prior year, a decrease of$0.1 million . The decrease in the quarter is due to lower total sales volumes partially offset by higher average pricing and lower average input costs. Notably, the gross profit percentage of 19% compared to 12% in the prior year was 7% higher due to higher average pricing and lower average input costs. - Net loss of
$1.2 million compared to a net loss of$1.6 million , an improvement of$0.4 million . The improvement is largely due to improved margins partially and lower non-operating expenses compared to the prior year. - Cash flows from operating activities of
$0.1 million compared to cash flows used-in operating activities of$0.2 million an increase source of cash of$0.3 million . The increase is largely due to improved margins and lower non-operating expenses compared to the prior 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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