Verde AgriTech faces challenges in 2024, but optimistic about market recovery in 2025.
From GlobeNewswire: 2025-03-20 19:10:00
Verde AgriTech Ltd (TSX: “NPK”) announces its financial results for FY 2024 and Q4 2024. The company faced challenges due to economic and climatic issues in Brazilian agriculture, but is optimistic about market recovery in H2 2025. Verde successfully renegotiated loans with major creditors, reducing outstanding debt significantly. The company’s sales volume decreased by 25% in FY 2024, with a 43% revenue decrease. Verde’s products have the potential to capture CO2 and prevent emissions, with a total impact of 297,782 tons of CO2 since 2018. The Company’s net loss for FY 2024 was -$12.6 million.
Brazilian agricultural businesses struggled in 2024 due to liquidity challenges and economic instability. Verde faced financial strain due to high-interest rates and limited access to working capital. The Selic interest rate was 12.25% by the end of 2024, impacting farmers’ credit access. Verde’s average cost of debt was 16.2% in 2024, hindering financial flexibility. Farmers faced tight working capital, impacting input purchases. The Canadian dollar appreciated by 6.2% against the Brazilian Real in FY 2024.
Verde’s financial condition improved in 2024 through loan renegotiations, resulting in a working capital surplus of $10.0 million. The Company’s net cash generated from operating activities decreased to -$1.9 million in FY 2024. Investing activities used $0.8 million, and financing activities generated -$3.1 million. Verde’s production costs decreased by 13% in FY 2024, with a shift towards more cost-efficient operations. The Company’s sales and marketing expenses, product delivery freight expenses, and general administrative expenses decreased in FY 2024.
Verde AgriTech is committed to advancing sustainable agriculture through innovative fertilizers. The Company’s products have the potential to capture and prevent CO2 emissions. Forward-looking statements indicate Verde’s focus on environmental sustainability and agricultural productivity. For further information, visit Verde’s website or contact Cristiano Veloso, CEO.
Read more at GlobeNewswire: Verde Announces Q4 and FY 2024 Results