Verde Agritech Ltd · TSX:NPK
Verde Agritech — Q4 2023 Earnings Presentation
16 slides from Verde Agritech's earnings presentation, Apr 2, 2024
Slide 1: Q4 & FY 2023 Update
April / 2024 Q4 & FY 2023 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): 5OFFQ12024 5% OFF Coupon (CA): Sold out The discount codes are valid through April 30, 2024. The codes are limited to a single unit per order and to a single order. 3
Slide 4: Contents
TSX: NPK contents_ 1. 2. Market Overview Brazilian agricultural market and KCl prices 3. Brazilian economic scenario and currency exchange 4. 2023 results 5. Q4 & FY 2023 financial statements 6. Operational summary 7. Sales, general and administrative expenses 8. Logistics 9. Financial condition 4
Slide 5: Market overview
market overview __ UZ AGRITECH
Slide 6: Brazilian agricultural market and KCl prices
Brazilian agricultural market and KCl prices_ TSX: NPK The agricultural commodities market has been experiencing significant After the historic high reached in 2022, average KCl CFR price declined fluctuations on a downward trend since H1 2022, impacting the fertilizers’ by 54% in 2023 compared to t
Slide 7: Brazilian economic scenario and currency exchange
Brazilian economic scenario and currency exchange_ TSX: NPK The current SELIC interest rate is 10.75%. The Central Bank of Brazil projects the Canadian dollar devaluated by 7% versus Brazilian Real in FY 2023, with and SELIC rate to reach 9.00% per annum by the end of 2024, 8.5% in 2025 and 2026. av
Slide 8: 2023 results
2023 results __ UZ AGRITECH
Slide 9: Q4 & FY 2023 highlights
Q4 & FY 2023 highlights_ TSX: NPK Cash Cash held by the Group increased by $5.8M in FY 2023. Cash utilized from investing activities decreased to $4.0M in FY 2023, compared to $42M in 2022. This reduction is attributable to the significant infrastructure investments made in Plant 2 during 2022. Cash
Slide 10: Q4 & FY 2023 financial statements
Q4 & FY 2023 financial statements_ TSX: NPK All amounts in CAD $’000 Q4 2023 Q4 2022 %Δ FY 2023 FY 2022 %Δ Revenue 7,058 16,837 (58%) 37,863 80,271 (53%) Production costs (2,230) (3,762) (41%) (9,689) (17,181) (44%) Gross Profit 4,828 13,075 (63%) 28,174 63,090 (55%) Gross Margin 68% 78% (13%) 74% 7
Slide 11: Operational summary
TSX: NPK operational summary_ All amounts in CAD $’000 Q4 2023 Q4 2022 %Δ FY 2023 FY 2022 %Δ Tons sold ‘000 104 125 (17%) 428 628 (32%) Average Revenue per ton sold $ 68 135 (50%) 89 128 (31%) Average Production cost per ton sold $ (21) (30) (29%) (23) (27) (17%) Average Gross Profit per ton sold $
Slide 12: Sales, general and administrative expenses
sales, general and administrative expenses_ TSX: NPK All amounts in CAD $’000, except Q4 2023 Q4 2022 %Δ FY 2023 FY 2022 %Δ percentages Sales expenses Sales and marketing expenses (923) (533) 73% (3,912) (3,451) 13% Fees paid to sales agents (73) (196) (63%) (110) (1,172) (91%) Total Sales expenses
Slide 13: Logistics
logistics_ TSX: NPK FOB vs CIF (tons sold) Sales Channels (% of total sales) 700,000 , 70% 63% 627,613 59% 600,000 60% 500,000 , , 444,631 50% 427,750 400,000 40% 32% 32% , 302,696 300,000 30% , 182,982 20% 200,000 , 125,054 9% 100,000 10% 5% 0 0% 2023 2022 FY 2023 FY 2022 1 2 FOB CIF Total Direct S
Slide 14: Financial condition
financial condition_ TSX: NPK Loan Profile Loans remaninig at the end of each quarter Loan Payments • On December 31, 2023, the Group held cash of $6.9M, 50,000 an increase of $5.8M on the same period in 2022. This 45,000 was expected due to the additional bank loans taken 40,000 35,000 out in Q4 20
Slide 15: Agritech
AGRITECH
Slide 16: 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