Verde Agritech Ltd · TSX:NPK
Verde Agritech — Q1 2024 Earnings Presentation
19 slides from Verde Agritech's earnings presentation, May 2024
Slide 1: Q1 2024 Update
May /2024 Q1 2024 Update
Slide 2: We are not good enough for you to invest if you
If you are risk averse don’t buy our stock. Don’t rely on anything on this We are not good enough for you to invest if you: TSX: NPK presentation. This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect Are risk averse. to Verde A
Slide 3: Buy Super Greensand at Amazon
TSX: NPK Buy Super Greensand® at Amazon: 5% OFF Coupon (USA): MAY245OFF 5% OFF Coupon (CA): Sold out The discount codes are valid through June 30, 2024. The codes are limited to a single unit per order and to a single order. 3
Slide 4: Contents
TSX: NPK 1. Market Overview 2. KCl prices contents_ 3. 4. Brazilian agricultural market Brazilian economic scenario and currency exchange 5. Q1 2021 X Q1 2024 6. Q1 2024 results 7. El Niño Impact 8. Q1 2024 financial statements 9. Operational summary 10. Sales, general and administrative expenses 11
Slide 5: Market overview
market overview _ AGRITECH
Slide 6: KCl prices
KCl prices_ TSX: NPK After the historic high reached in 2022, average KCl CFR price declined by 40% in the first quarter of 2024 compared to 2023, and by 66% compared to Q1 2022. KCL CFR Brazil Prices 1200 1000 800 600 400 200 Following the onset of the Ukraine-Russia conflict in early 2022, the agr
Slide 7: Brazilian agricultural market
700 900 1100 1300 1500 1700 100 120 140 160 200 180 Source: 04/01/2021 22/01/2021 11/02/2021 05/03/2021 25/03/2021 15/04/2021 06/05/2021 26/05/2021 16/06/2021 06/07/2021 26/07/2021 13/08/2021 02/09/2021 levels observed in Q1 2022 and Q1 2023. 23/09/2021 14/10/2021 04/11/2021 1 - EPEA – ESALQ / USP.
Slide 8: El Niño Impact
El Niño Impact TSX: NPK In Q1 2024, however, a "perfect storm" hit the Brazilian fertilizer market. Startin in the second half of 2023, the El Niño effects altered rainfall patterns, severely affecting Brazil's agricultural cycle all the way through early 2024. The irregular and unpredictable precip
Slide 9: Brazilian economic scenario and currency exchange
brazilian economic scenario and currency exchange_ TSX: NPK The current SELIC interest rate is 10.5%. The Central Bank of Brazil projects the Canadian dollar devaluated by 4% versus Brazilian Real in Q1 2024 compared to SELIC rate to reach 9.8% per annum by the end of 2024, 9.0% in 2025 and Q1 2023.
Slide 10: Q1 2024 results
Q1 2024 results_ UZ AGRITECH
Slide 11: Q1 2024 highlights
Q1 2024 highlights_ TSX: NPK Cash Cash and other receivables held by the Group in Q1 2024 were $17.3M, compared to $34.3M in Q1 2023 and $4.9M in Q1 2021. The Group has secured bank loans of $1.8M (BRL $6.8M) in Q1 2024. As of March 31, 2024, the Group's total loan balance was $45.7M. Profitability
Slide 12: Q1 2024 financial statements
Q1 2024 financial statements_ TSX: NPK All amounts in CAD $’000 Q1 2024 Q1 2023 %Δ Revenue 5,068 11,125 (54%) Production costs (1,671) (2,710) (37%) Gross Profit 3,397 8415 (60%) Gross Margin 67% 76% N/A Sales and marketing expenses (970) (1,207) (20%) Product delivery freight expenses (1,595) (3,86
Slide 13: Operational summary
operational summary_ TSX: NPK All amounts in CAD $’000 Q1 2024 Q1 2023 %Δ Tons sold ‘000 85 108 (21%) Average Revenue per ton sold $ 60 103 (42%) Average Production cost per ton sold $ (20) (25) (20%) Average Gross Profit per ton sold $ 40 78 (49%) Gross Margin 67% 76% N/A operational summary – excl
Slide 14: Sales, general and administrative expenses
sales, general and administrative expenses_ TSX: NPK All amounts in CAD $’000, except percentages Q1 2024 Q1 2023 %Δ Sales expenses Sales and marketing expenses 837 1,070 (22%) Fees paid to sales agents 133 137 (3%) Total Sales expenses 970 1,207 (20%) General expenses General administrative expense
Slide 15: Logistics
logistics_ TSX: NPK FOB vs CIF (tons sold) 120,000 , 107,596 • The volume sold as CIF as a percentage of the total sales was 66% in 100,000 , , 85,042 Q1 2024, compared to 68% in Q1 2023. 80,000 , 72,988 • Product delivery freight expenses decreased by 59% in Q1 2024, to , 60,000 ,55,848 $1.6M compa
Slide 16: Q1 Results: CAGR in the last 5 years
Q1Results: CAGR in the last 5 years TSX: NPK Q1 Total Sales Volume (tonnes) Q1 Total Revenue ('000) 120,000 12,000 11,304 112,000 11,125 108,000 100,000 10,000 85,000 80,000 8,000 60,000 6,000 5,068 40,000 4,000 20,000 17,000 2,000 10,170 831 510 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
Slide 17: Financial condition
financial condition_ TSX: NPK • Cash held by the Group in Q1 2024 was $3.2M compared to $4.3M in Q1 2023 a decrease of 25%. • As of December March 31, 2024, the Group's total loan balance was $45.7M compared to $46.1M in Q4 2023, with and average loan rate of 14.4% per annum. • In April 2024, the Gr
Slide 18: AGRITECH
AGRITECH
Slide 19: Thank you
thank you_ We are uma Somos an agricultural empresa detechnology tecnologiacompany that agrícola que produces produz multi-nutrient fertilizantes potassium potássicos fertilizers. multinutrientes. We bringo together Unimos melhor dathe best of nature natureza and da e o melhor technologypara tecnolo