Latest news with #VNPKF
Yahoo
19-05-2025
- Business
- Yahoo
Verde AgriTech Ltd (VNPKF) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verde AgriTech Ltd (VNPKF) has seen a recovery in the price of potassium chloride, which could positively impact their pricing strategy. The company has successfully renegotiated its debt, reducing interest rates and extending payment terms, which improves cash flow. Operational cost reductions have been achieved, including a 23% decrease in general administrative expenses. The company has a strong field sales team that is helping to identify creditworthy customers, leading to an increase in approved and delivered orders. Verde AgriTech Ltd (VNPKF) is actively pursuing enhanced rock weathering (ERW) technology, which could open new revenue streams through carbon credits. Sales volume in Q1 2025 was 48,000 tons, a 44% reduction compared to Q1 2024, indicating a significant decline in demand. The company is facing a challenging market environment with high interest rates in Brazil and a devaluation of the Brazilian currency. There is a catastrophic increase in bankruptcies in the Brazilian agricultural sector, affecting Verde AgriTech Ltd (VNPKF)'s ability to collect payments. The company reported a net loss of CAD3.8 million in Q1 2025, although this was an improvement from the previous year's loss. High staff turnover and cost-cutting measures have raised concerns about management stability and employee satisfaction. Warning! GuruFocus has detected 6 Warning Signs with VNPKF. Q: What is Verde AgriTech's forecast for a return to profitability? A: Cristiano Delozo, CEO, stated that he does not know the exact quarter or year for a return to profitability. However, he emphasized that everything within their control is being done to achieve profitability and growth as quickly as possible. Q: Can you explain the high staff turnover in recent years? A: Cristiano Delozo, CEO, explained that the turnover is part of cost reduction efforts. He emphasized the importance of not being afraid to fire staff when necessary and highlighted the use of AI to further cut costs. He disagreed with the notion that turnover is a red flag, citing it as a strategic decision. Q: Why is Verde AgriTech not capturing market share domestically in Brazil when international competitors can? A: Cristiano Delozo, CEO, responded that the recent years have been challenging due to a massive crisis in the agricultural sector. He noted that their growth track record was phenomenal before the crisis and expressed hope for a return to normal market conditions soon. Q: What are the challenges with the Enhanced Rock Weathering (ERW) program? A: Cristiano Delozo, CEO, explained that the challenges are due to the different rock type they are using compared to other companies. He mentioned that they are working with leading scientists and conducting trials to quantify carbon capture, which is crucial for issuing reliable carbon credit certificates. Q: How is Verde AgriTech addressing the financial and operational challenges it faces? A: Cristiano Delozo, CEO, highlighted the significant debt renegotiation they achieved, which provides a more favorable cash flow situation. He expressed confidence in the company's ability to navigate the current crisis, citing past experiences of overcoming difficult situations. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
24-03-2025
- Business
- Yahoo
Verde AgriTech Ltd (VNPKF) (Q4 2024) Earnings Call Highlights: Navigating Challenges and ...
Release Date: March 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verde AgriTech Ltd (VNPKF) has assembled a strong and experienced leadership team, including a new Chief Revenue Officer and Chief Marketing Officer, which is expected to drive growth. The company has achieved 60% of the previous year's sales within the first 79 days of the current year, indicating a strong start and potential for significant growth in 2025. There is a positive outlook for corn production in Brazil, driven by ethanol production, which could benefit Verde AgriTech Ltd (VNPKF) as a supplier of agricultural inputs. The company has successfully renegotiated its debt, extending payment terms and reducing short-term financial pressure, which should improve cash flow management. Verde AgriTech Ltd (VNPKF) has reduced production costs per ton by optimizing plant operations and renegotiating supplier contracts, which should enhance profitability as volumes increase. The company experienced a 43% reduction in revenue in 2024 compared to 2023, highlighting significant financial challenges. Verde AgriTech Ltd (VNPKF) reported a net loss of CAD 12.6 million in 2024, doubling the loss from the previous year, indicating worsening financial performance. The agricultural sector in Brazil has been severely impacted by high insolvency rates, affecting Verde AgriTech Ltd (VNPKF)'s ability to collect receivables and increasing credit risk. The company faces challenges from fluctuating exchange rates and high interest rates in Brazil, which have negatively impacted financial results. There is uncertainty regarding the future of potash prices and geopolitical factors that could affect the agricultural input market, posing risks to Verde AgriTech Ltd (VNPKF)'s business model. Warning! GuruFocus has detected 5 Warning Signs with VNPKF. Q: Can you talk about the pipeline and order book and compare it to other years? Seems like the order book is ahead of schedule. Please provide more details. A: The CEO mentioned that they have already achieved 60% of last year's total sales within the first 79 days of 2025. The team is optimistic about exponential growth, and the current order book is looking strong, indicating a promising year ahead. Q: Are there any news regarding enhanced rock weathering (ERW)? A: The CEO stated that they are working on a dedicated press release about ERW. They have been collaborating with scientists and are optimistic about the progress, although the market for ERW has changed significantly, requiring more field validation. Q: What about OB Rare Earths? Will it be introduced on ASX as previously announced? A: OB Rare Earths shares should have been issued already, but administrative issues have delayed the process. The company plans to hold a webinar to update shareholders on the progress and developments. Q: You state that in 2025, after only 79 days, Verde Agritech already has orders and delivered products representing 60% of all products delivered in 2024. Did this happen all of a sudden, or was there a notable acceleration that had already begun at the end of 2024? A: The CEO explained that this growth did not happen suddenly but is the result of consistent improvement and preparation throughout the previous year. The economic environment in Brazil is also stabilizing, contributing to this positive trend. Q: Is the LCA audit complete? Is there anything positive you can share with regard to commitments from corporate producers committed to reducing the carbon footprint of their supply chains? A: The CEO confirmed that the LCA audit is complete and plans to issue a press release to highlight the low carbon footprint of their product. This will be informative for both investors and the corporate agriculture market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
