Latest news with #Veloso
Hamilton Spectator
15-05-2025
- Business
- Hamilton Spectator
Verde Announces Q1 2025 Results
(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in Q1 2025: C$1.00 = R$3.93) SINGAPORE, May 15, 2025 (GLOBE NEWSWIRE) — Verde AgriTech Ltd (TSX: 'NPK') ('Verde' or the 'Company') announces its financial results for the period ended March 31, 2025 ('Q1 2025'). As previously disclosed on March 28, 20251, product deliveries for the first half of 2025 were significantly impacted by the severe crisis in the Brazilian agricultural sector, which led to the insolvency of some of the country's largest agricultural input suppliers and farming operations. Looking ahead to the second half of 2025, Verde is experiencing a recovery in orders as overall market credit risk declines, enabling stronger sales performance. In 2025, up to date, the Company has approved and delivered volumes equivalent to over 70% of the total delivered throughout the entire year of 2024. From January to May 2025, confirmed orders are 40% higher compared to the same period in 2024, reflecting a significant acceleration driven by increased credit approvals. 'With our installed capacity, Verde can supply around 4% of Brazil's potash demand—a modest share in a market worth over 6 billion dollars annually. This reflects not a limitation, but the scale of the opportunity ahead, which we are positioned to pursue with no need for further investment,' said Cristiano Veloso, Verde's Founder & CEO. 'We went through years of accelerated growth, which were abruptly interrupted by a major crisis. Now, we are focused on regaining our growth trajectory, with the near-term goal of at least reaching full capacity at our existing plants,' Mr. Veloso added. Q1 2025 Highlights Operational and Financial Highlights Other Highlights Subsequent Events Court Approval of Debt Renegotiation Agreement In April 2025, Verde secured court approval for its debt renegotiation agreement initially disclosed in October and November 2024. Under this restructuring plan, adherent creditors representing approximately 92% of Verde's total outstanding debt agreed to extended repayment terms of up to 126 months, an 18-month grace period on principal and interest payments, and reduced interest rates. Non-adherent creditors faced a mandatory 75% reduction in their principal obligations.7 Q1 2025 in Review Agricultural Market In Q1 2025, Brazil's agricultural sector remained impacted by the financial difficulties that have accumulated since 2022. Access to credit continued to be restricted, and many producers and distributors are still managing high debt levels arising from prior input purchases made under unfavorable market conditions. Financial restructuring remains a common feature across the sector, with a significant number of companies either undergoing judicial recovery proceedings or engaged in informal renegotiations with creditors, reflecting the long tail of the previous liquidity crisis 8. At the same time, certain indicators pointed to a gradual shift in market conditions. Potash prices, particularly potassium chloride (KCl), remained stable and showed an upward trend throughout the quarter. This variation, combined with a slowdown in new judicial recovery filings, suggests the early stages of a potential recovery in credit availability and commercial activity. Deliveries in the first half of 2025 continued to reflect the legacy of a challenging 2024. The past two years were marked by severe liquidity restrictions, high interest rates, and an increase in insolvency filings across Brazil's agricultural supply chain. These factors significantly affected payment behavior in the sector. In response, Verde adopted a more conservative commercial posture, deliberately limiting sales to clients with higher credit risk. While this decision impacted delivered volumes, it was essential to protect cash flow and maintain the Company's financial stability. Global market competition The Brazilian market remained impacted by high financing costs, with the Selic rate at 14.25% at the end of Q1 2025 and currently at 14.75%9. The persistent credit restriction continued to pressure agribusiness, hindering investments in technology and inputs, and prolonging the contraction cycle that has affected the sector in recent quarters. Projections suggest that the Selic rate, currently at 14.75%, will remain at this level through the end of 2025, before potentially declining to 12.50% in 2026. Annual inflation forecasts stand at 5.50% for 2025 and 4.50% for 202610, which may provide some relief as economic conditions begin to stabilize. Despite early signs of price recovery, the sales environment remained difficult. High levels of leverage among rural producers—aggravated by successive harvest losses and a surge in judicial recovery filings in 202411—continued to limit purchasing power in Q1 2025. Amid these challenging market conditions, Brazilian farmers faced tight working capital during the critical period for purchasing inputs like fertilizers for the upcoming planting season. In response, many farmers sought suppliers offering the most favorable payment terms and interest rates, opting to differ payments until after the harvest, typically between 9 to 12 months later. While this approach is common in the agricultural sector, it increases the risk of non-payment for suppliers, including fertilizer companies, reflecting the heightened financial pressures within the industry. Currency exchange rate Canadian dollar valuated by 11% versus Brazilian Real in Q1 2025 compared to Q1 202412. Q1 Results Conference Call The Company will host a conference call to discuss Q1 2025 results and provide an update. Subscribe using the link below and receive the conference details by email. The questions must be submitted in advance through the following link before the conference call: . The Company's financial statements and related notes for the period ended March 31, 2025 are available to the public on SEDAR at and the Company's website at . Results of Operations The following table provides information about three months ended March 31, 2025, as compared to the three months ended March 31, 2024. All amounts in CAD $'000. (1) – Non GAAP measure (2) – Included in General and Administrative expenses in financial statements (3) – Included in General and Administrative expenses and Cost of Sales in financial statements (4) – Please see Summary of Interest-Bearing Loans and Borrowings notes (5) – Please see Income Tax notes External Factors Revenue and costs are affected by external factors including changes in the exchange rates between the C$ and R$ along with fluctuations in potassium chloride spot CFR Brazil, agricultural commodities prices, interest rates, among other factors. For further details, please refer to the Q1 2025 Year in Review section. Financial and operating results In Q1 2025, revenue from sales declined by 44%, accompanied by a 0.3% decrease in the average revenue per ton compared to Q1 2024. Excluding freight expenses (FOB price), the average revenue per ton fell by 11%, primarily driven by a reduction in sales of specialty products, which decreased from 7% to 3% of the sales mix. The shift reflects farmers' increasing preference for lower value-added products, as many continue to face restricted cash flows. The decline in sales price per ton and volume were the key drivers of the Company's significantly lower results compared to the previous year. Additionally, the Company continues to maintain a high level of Expected Credit Losses ('ECL'), which further impacted EBITDA negatively. The Company is actively negotiating with these clients, and if successful, the provision will be reversed. The Company reported a net loss of $3.8 million in Q1 2025, compared to a net loss of $4.8 million in Q1 2024. The year-over-year improvement was primarily driven by a $1.6 million reduction in non-cash expenses related to stock options granted by the Company compared to the previous year. Basic loss per share was -$0.07 for Q1 2025, compared to a basic loss per share of -$0.09 for Q1 2024. Production costs The average cost per ton decreased by 21% in Q1 2025, primarily due to renegotiated supplier contracts, a reduction in operational headcount, and an 11% devaluation of the Brazilian real, alongside a lower proportion of specialty product orders compared to regular products. Production costs include all direct costs from mining, processing, and the addition of other nutrients to the Product, such as Sulphur and Boron. It also includes the logistics costs from the mine to the plant and related salaries. Verde's production costs and sales price are based on the following assumptions: Sales, General and Administrative Expenses: SG&A represents a non-operating segment that includes corporate and administrative functions, essential for supporting the Company's operating segments. Sales Expenses Sales and marketing expenses cover salaries for employees, car rentals, domestic travel in Brazil, hotel accommodations, and Product promotion at marketing events. As part of the Company's sales and marketing strategy, Verde compensates its independent sales agents through commissions. Fees paid to independent sales agents fell by 38% in Q1 2025, due to a decrease in sales volume. Product delivery freight expenses Expenses decreased by 30% in Q1 2025 compared to the same period last year, due to a volume reduction presented this year. The volume sold as CIF (Cost Insurance and Freight) in Q1 2025 represented 87% of total sales, compared to 66% in Q1 2024. The Company achieved a reduction in average freight costs per ton for products sold on a CIF basis, to $27 in Q1 2025 from $29 in the comparable period of the previous year. The 6% decrease in freight costs can primarily be attributed to a reduction in the percentage of sales made to regions that are more distant from Verde's production facilities. General and Administrative Expenses General administrative expenses include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of executives, directors of the Board and administrative staff. General administrative decreased by 8% compared to the same period last year, due to a series of contract renegotiations with suppliers and a reduction in administrative headcount. Legal, professional and audit costs include fees along with accountancy, audit and regulatory costs. Consultancy fees encompass consultants employed in Brazil, such as accounting services, patent processes, lawyer's fees and regulatory consultants. This showed a decrease of $0.2 million compared to Q1 2024 due to expenses related to external consulting services. Allowance for expected credit losses Allowance for expected credit losses had an increase of $0.4 million, compared to the same period in 2024. The increase in the allowance for expected credit losses in Q1 2025 compared to Q1 2025 is attributed to the fact that in 2024, the agricultural sector experienced a significant rise in insolvency protection cases, directly impacting a portion of Verde's clients. As per Verde's sales policy, any outstanding customer payments overdue for more than 12 months must be provisioned. Share Based, Equity and Bonus Payments (Non-Cash Event) Share Based, Equity and Bonus Payments (Non-Cash Events) encompass expenses associated with stock options granted to employees and directors, as well as equity compensation and non-cash bonuses awarded to key management personnel. In Q1 2025, the costs associated with share-based payments decrease to $0.2 million compared to $1.8 million for the same period last year. This decrease was primarily due to a lower number of options issued in 2025 compared to the previous year. Liquidity and Cash Flows For additional details see the consolidated statements of cash flows for the quarters ended March 31, 2025, and March 31, 2024, in the quarterly financial statements. On March 31, 2025, the Company held cash of $2.5 million, a decrease of $0.7 million on the same period in 2024. In addition to cash, the Company had $7.7 million in short-term receivables, bringing the total of cash and receivables to $10.2 million in Q1 2025. Operating activities In agricultural sales, credit transactions are common due to the cyclical nature of farming income, which sees fluctuations with seasonal highs during harvests and lows during planting. This cycle necessitates that farmers have access to essential inputs like seeds, fertilizers, and pesticides ahead of their selling season. To accommodate this, credit terms are offered, allowing farmers to procure these inputs in advance and align their payments with their revenue cycle. Verde's approach to credit in the agricultural sector reflects a deep understanding of these operational nuances, resulting in a substantial portfolio of receivables. The Company's normal credit term is 30 to 120 days upon shipment, depending on the period of the year, tailored to the specific needs of each farmer, considering the crop cycle, creditworthiness, and other key factors. This strategy ensures farmers have the necessary resources for each planting season, while Verde secures its financial interests through aligned payment schedules. In Q1 2025, net cash utilized in operating activities decreased to $0.9 million, compared to $2.9 million utilized in Q1 2024. In the first quarter of 2025, the Company recorded a decrease in interest expenses compared to 2024, driven by lower interest payments on loan facilities. Cash and trade receivables decreased by 41% in Q1 2025, totaling $10.2 million, compared to $17.3 million in Q1 2024. The Company anticipates an improvement in performance from July onward and expects cash and trade receivables to be in a stronger position by year-end relative to 2024. Investing activities Cash utilized from investing activities was $0.1 million in Q1 2025, compared to $0.3 million in Q1 2024, primarily due to a reduction in capital expenditure compared to the prior year. Financing activities Cash utilized in financing activities was $0.04 million in Q1 2025, compared to $0.77 million in Q1 2024. This reduction reflects the loan renegotiation process, under which the Company did not make any principal debt repayments during Q1 2025. After the court approved the debt renegotiation agreement with its creditors on April 15, 2025, the Company secured a 75% reduction of the principal on certain debts, equivalent to approximately C$1.7 million, bringing the total restructured loan amount to C$42.4 million.13 Financial condition The Company's current assets decreased to $12.0 million in Q1 2025, compared to $19.6 million in Q1 2024. Current liabilities decreased to $2.9 million in Q1 2025, compared to $28.6 million in Q1 2024; providing a working capital surplus of $9.1 million in Q1 2025, compared to the working capital deficit of $9.0 million in Q1 2024. This improvement was primarily driven by the renegotiation of loans, extending their payment terms to the long term, which positively impacted the Company's working capital position. About Verde AgriTech Verde AgriTech is dedicated to advancing sustainable agriculture through the innovation of specialty multi-nutrient potassium fertilizers. Our mission is to increase agricultural productivity, enhance soil health, and significantly contribute to environmental sustainability. Utilizing our unique position in Brazil, we harness proprietary technologies to develop solutions that not only meet the immediate needs of farmers but also address global challenges such as food security and climate change. Our commitment to carbon capture and the production of eco-friendly fertilizers underscores our vision for a future where agriculture contributes positively to the health of our planet. For more information on how we are leading the way towards sustainable agriculture and climate change mitigation in Brazil, visit our website at . Corporate Presentation For further information on the Company, please view shareholders' deck: Company Updates Verde invites you to subscribe for updates. By signing up, you'll receive the latest news about the Company's projects, achievements, and future plans. Subscribe here: Cautionary Language and Forward-Looking Statements All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. This document contains 'forward-looking information' within the meaning of Canadian securities legislation and 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as 'forward-looking statements' are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as 'expects', 'anticipates', 'plans', 'projects', 'estimates', 'envisages', 'assumes', 'intends', 'strategy', 'goals', 'objectives' or variations thereof or stating that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. All forward-looking statements are based on Verde's or its consultants' current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include, but are not limited to: Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks related to the court approval process for the debt restructuring; risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde's Annual Information Form filed with SEDAR in Canada (available at ) for the year ended December 31, 2023. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law. For additional information please contact: Cristiano Veloso, Chief Executive Officer and Founder Tel: +55 (31) 3245 0205; Email: investor@ | 1 Learn more at: Verde Announces Q4 & FY 2024 Results. 2 The carbon capture potential of Verde's products, through Enhanced Rock Weathering (ERW), is 120 kg CO2e per ton of K Forte®. For further information, see ' Verde's Products Remove Carbon Dioxide From the Air '. 3 K Forte® is a fertilizer produced in Brazil using national raw materials. Its production process has low energy consumption from renewable sources and, consequently, a low environmental and GHG emissions footprint. Whereas the high carbon footprint of KCl results from a complex production process, involving extraction, concentration, and granulation of KCl, in addition to the long transportation distances to Brazil, given that 95% of the KCl consumed in the country is imported. 12Mt of K Forte® is equivalent to 2Mt of KCl in K2O content. Emissions avoided are calculated as the difference between the weighted average emissions for KCl suppliers to produce, deliver, and apply their product in each customer's city and the emissions determined according to K Forte®'s Life Cycle Assessment for its production, delivery, and application in each customer's city. 4 From 2018 to Q1 2025, the Company has sold 1.89 million tons of Product, which can potentially remove up to 237,106 tons of CO2. Additionally, this amount of Product could potentially prevent up to 69,059 tons of CO2 emissions. 5 Verde's Product is a salinity and chloride-free replacement for KCl fertilizers. Potassium chloride is composed of approximately 46% of chloride, which can have biocidal effects when excessively applied to soils. According to Heide Hermary (Effects of some synthetic fertilizers on the soil ecosystem, 2007), applying 1 pound of potassium chloride to the soil is equivalent to applying 1 gallon of Clorox bleach, with regard to killing soil microorganisms. Soil microorganisms play a crucial role in agriculture by capturing and storing carbon in the soil, making a significant contribution to the global fight against climate change. 6 1 ton of Product (10% K2O) has 0.1 tons of K2O, which is equivalent to 0.17 tons of potassium chloride (60% K2O), containing 0.08 tons of chloride. 7 Learn more at: 'Verde Announces Court Approval of Debt Renegotiation Agreement' 8 Source: Bankruptcies in Brazil's agribusiness expected to rise in 2025 . 9 As of March 31, Source: Brazilian Central Bank . 10 As of March 31, Source: Brazilian Central Bank . 11 Source: Requests for Judicial Recovery in Agribusiness Increased by 300% for Individual Farmers in Brazil. 12 Source: Brazilian Central Bank . 13 Learn more at: 'Verde Announces Court Approval of Debt Renegotiation Agreement'
The Guardian
08-04-2025
- Entertainment
- The Guardian
Everyday people: the parking wardens, estate agents and more who inspired classic songs
Last week Joe DePugh, a star high school baseball player from Freehold, New Jersey, died aged 75. It made headlines because he was the guy who 'could throw that speedball by you / Make you look like a fool, boy' in Bruce Springsteen's 1984 hit Glory Days – one of the numerous ordinary people that have proved inspirational in pop. The old crowd from the Jersey Shore still make their way into Springsteen's songs: the centrepiece ofhis huge stadium shows these last couple of years has been a solo acoustic number called Last Man Standing, which appeared in his 2020 album Letter to You. It was written following the death of George Theiss, in 2018. As a teenage boy, Theiss had been courting Springsteen's sister Virginia, but ended up instead in a band with the young Bruce – the Castiles. When Theiss died, it left Springsteen the last living member of his high school band, and he composed a requiem for his friend: 'Faded pictures in an old scrapbook / Faded pictures that somebody took / When you were hard and young and proud / Backed against the wall, running raw and loud.' It's no fun being a traffic warden. In Liverpool they've been given bodycams; in Essex there is a campaign to raise awareness of the human cost of abuse for those who give out parking tickets. So Meta Davies got away lightly when she penalised Paul McCartney. 'It was in the spring of 1967 that I ticketed Paul's car,' she said. 'He was on a meter showing excess, so I gave him a 10-shilling ticket.' After noting her unusual name, McCartney asked if he might use it in a song. When she heard the song – in which the singer 'took her home and tried to make her' – Davies admitted, 'it makes me blush.' 'For over 35 years, Sharona has held a coveted position in the upper echelon of Los Angeles area real estate,' observes Sharon Alperin's website, She gets to call it that because she was the Sharona written about by Doug Fieger of the Knack. He wrote the song about his infatuation with her – she was in her late teens, he nine years older – though they also had a relationship and she appears on the cover of the single. Fortunately, there were no recriminations – though they went their separate ways, they remained friends until his death in 2010. Back in 1962 Vinicius de Moraes would see the same girl pass by the Veloso cafe on the Ipanema beachfront in Rio all the time. She was 17-year-old Heloísa Eneida Menezes Paes Pinto, and when De Moraes and Antonio Carlos Jobim were asked to write for a musical, she became one of their subjects. She was, De Moraes said, 'a golden teenage girl, a mixture of flower and mermaid, full of light and grace, the sight of whom is also sad, in that she carries with her, on her route to the sea, the feeling of youth that fades, of the beauty that is not ours alone.' And what did she think? 'It's eternal. Whenever I listen, I remember my past, my younger days,' she told the Guardian in 2012. 'Ipanema in 1962 was a great place. You never saw aggression. Everyone wanted to fall in love.' Tom Higgenson of Plain White Ts met Delilah DiCrescenzo when she was a student at Columbia University. Besotted, he told her would write a song about her – even though she had a boyfriend – which he did. Several years later, in 2007, Hey There Delilah became a huge hit. By that time, DiCrescenzo was a star in her own right as an international athlete. The experience didn't seem to scar her: she attended the Grammys in 2008 as Higgenson's guest. The irony is that these days Higgenson doesn't have a Wikipedia page, but DiCrescenzo does. Fame is fickle. At school in south London, Mick Jones had been friends and co-conspirators with a lad called Robin Crocker. One of them went on to join the Clash, and the other went on to rob banks. On the second Clash album, Jones wrote a nostalgic reverie for his pal, and his joy on hearing of his release from prison: 'And if you're in the Crown tonight / Have a drink on me / But go easy / Step lightly / Stay free.' Croker was moved. 'Somebody once said to me it's the most outstanding heterosexual male-on-male love song, and there is a lot of truth in that,' Crocker told the Guardian in 2008. 'Unfortunately, I didn't Stay Free. I did a wages snatch in Stockholm and got banged up again.' Danny Nedelko moved to England from Ukraine, aged 15, ending up in Bristol and befriending Joe Talbot, who would co-found Idles. When Idles released their second album, Joy As an Act of Resistance, they were still a cult band, and Nedelko was their mate in an another, less successful band. By the end of that album campaign, he was the subject of lines roared by thousands of people at every Idles gig: 'My blood brother is an immigrant / A beautiful immigrant.' Fortunately, he was not disgruntled by being made a political poster boy, pronouncing himself 'very flattered and humbled'. Perhaps the most double-edged song about a real person – but that's Ray Davies' writing for you. The Kinks' staple – later recorded by the Jam – was named for a promoter in Rutland with whom the Kinks had dealings, and who had a crush on Dave Davies. Hence David Watts being 'so gay and fancy free'. But it's also homoerotic in itself, and Ray later said it was also inspired by a real-life schoolfriend, whom he wouldn't name because they were still in touch. And the envy, the desperation, to be that boy is palpable: 'And when I lie on my pillow at night / I dream I could fight like David Watts / And lead the school team to victory / Take my exams and pass the lot.'
Yahoo
20-03-2025
- Business
- Yahoo
Verde Announces Q4 and FY 2024 Results
(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in FY 2024: C$1.00 = R$3.93) SINGAPORE, March 20, 2025 (GLOBE NEWSWIRE) -- Verde AgriTech Ltd (TSX: 'NPK') ("Verde' or the 'Company') announces its financial results for the full year ended December 31, 2024 ('FY 2024') and the fourth quarter 2024 ('Q4 2024'), as audited by RSM SG Assurance LLP ('RSM'). "Looking back, 2023/24 will undoubtedly be remembered as one of the most challenging periods for Brazilian agriculture in this century. A historic number of farmers and input suppliers faced insolvency, overwhelmed by an unprecedented combination of economic and climatic challenges. The effects of this crisis have already spilled into the first half of 2025, continuing to present significant obstacles for the sector. Navigating through this 'perfect storm' required exceptional resilience, and those who persevered have demonstrated remarkable strength and adaptability," stated Cristiano Veloso, Founder and CEO of Verde Agritech. 'For H2 2025 deliveries, we are seeing strong market optimism driven not only by favorable geopolitical factors but also by improved commodity prices, better climatic conditions, and a recovering global supply chain. Verde is strategically positioned to capitalize on the resurgence of Brazil's agricultural profitability, which is bolstered by these favorable dynamics. Our order books for the second half of the year reflect significant growth to date, marking a notable improvement compared to 2024,' Mr. Veloso added. As previously announced on October 2, 20241, the Company successfully renegotiated its loans with its two largest creditors, covering 73% of its total outstanding debt. This deal, which extends the repayment term to 120 months and suspends principal payments for 18 months, is projected to generate R$115 million in cash savings over the next 24 months. Interest payments will also be suspended during this period, with a significantly reduced interest rate to follow. The agreement has proven to be a critical step in strengthening Verde's financial position. Further progress was reported on November 11, 20242 when Verde secured an agreement with creditors representing over 92% of the company's total debt, leading to improved financial terms for the company. Non-adherent creditors will face a 75% reduction in their outstanding balance, with the remaining debt subject to a much lower interest rate of 0.82% per year. The agreement, which is pending court approval, is expected to result in the cancellation of R$8.5 million in debt. Additionally, Verde successfully renegotiated additional loans. This comprehensive effort means that more than 99.8% of the Company's outstanding debts have now been renegotiated, significantly reducing its short-term obligations for 2025 to R$1.5 million. "It has been over four months since we entered the final stage of the renegotiation process, and we are now awaiting the homologation of the agreement by the court. We remain confident that the approval is imminent, and its recognition will be finalized soon. This will be a significant milestone for the Company,' stated Cristiano Veloso, Founder and CEO of Verde Agritech. Fourth Quarter and Full Year 2024 Highlights Operational and Financial Highlights Verde's sales volume amounted to 319,000 tons; a 25% reduction compared to 2023. Additionally, revenue had a 43% decrease compared to the previous year, with $21.6 million in FY 2024. In 2025, after only 79 days, Verde already has orders and delivered products representing over 60% of all products delivered in 2024. Cash held by the Company decreased by $3.5 million, from $6.9 million in FY 2023 to $3.4 million in FY 2024. Additionally, the Company has $6.9 million in short-term receivables. The total Cash and short-term receivables were $10.3 million in FY 2024. EBITDA before non-cash events was -$2.5 million in FY 2024, compared to $2.0 million in FY 2023. The Company reported a net loss of -$12.6 million in FY 2024, compared to a net loss of -$6.0 million in FY 2023. Sales and General Administrative Expenses decreased by $1.6 million, from $11.7 million in 2023 to $10.1 million. Other Highlights The Product sold in FY 2024 has the potential to capture up to 25,429 tons of carbon dioxide ('CO2') from the atmosphere via Enhanced Rock Weathering ('ERW').3 The potential net amount of carbon captured is estimated at 16,255 tons of CO2. In addition to the carbon removal potential, Verde's FY 2024 sales avoided the emissions of 9,116 tons of CO2e, by substituting potassium chloride ('KCl') fertilizers.4 Combining the potential carbon removal and carbon emissions avoided by the use our Product since the start of production in 2018, Verde's total impact stands at 297,782 tons of CO2.5 16,776 tons of chloride have been prevented from being applied into soils FY 2024, by farmers who used the Product in lieu of KCl fertilizers.6 A total of 155,935 tons of chloride has been prevented from being applied into soil by Verde's customers since the Company started production.7 2024 Year in Review Agricultural Market In 2024, many agricultural businesses have been confronted with severe liquidity challenges, prompting an increasing number to seek insolvency protection as part of efforts to restructure their debts. The scarcity of accessible credit has not only hindered investments but also disrupted the broader agribusiness ecosystem, impacting suppliers and financial institutions alike. This crisis stems from the high commodity prices at the beginning of 2022, which led farmers to expect that both commodity and input prices would remain elevated. However, while input costs stayed high for longer, commodity prices began to drop. As a result, farmers who purchased fertilizers at elevated prices, expecting high commodity prices, were left struggling with mismatched financial conditions. Consequently, 2024 continues to be marked by significant financial strain, as businesses work to manage the debt burdens accumulated in recent years. Furthermore, economic instability in Brazil further intensified challenges in the agricultural market. High interest rates and fluctuating exchange rates created additional financial strain for farmers, limiting their access to working capital. Amid the record rise in farmer insolvencies, several distributors experienced financial distress, with some seeking credit protection. In response, Verde adopted a cautious approach to farmer financing, prioritizing financial stability over short-term sales growth. The Company chose to limit credit offerings, forgoing potential sales to minimize exposure to default risks, which inevitably had an impact on overall sales performance. Global market competition The Brazilian agricultural sector faced significant challenges in 2024, driven by evolving macroeconomic factors. The Selic interest rate, which stood at 12.25% by the end of the year, restricted farmers' access to credit, limiting their ability to invest in productivity-enhancing input. Projections suggest a gradual increase in the Selic rate in 2025, with estimates indicating 15.00% by the end of 2025, followed by a potential decrease to 12.50% by 2026. Annual inflation forecasts for 2025 and 2026 stand at 5.50% and 4.20%, respectively, which may provide some relief as economic conditions stabilize.8 In 2024, Verde's average cost of debt was 16.2% per annum, reflecting the high-interest environment that has become a defining characteristic of the current economic landscape. Brazilian corporations, particularly those in the agricultural sector, faced significant financial constraints and limited access to working capital, which further hampered their ability to invest in productivity and input purchases. Compared to international players, Verde's capacity to offer financing with longer tenors is considerably limited, putting the company at a disadvantage in terms of competitive financing options for its customers. Unlike many of its competitors, Verde does not have the ability to shift a significant portion of its debt to US dollar-denominated liabilities at attractive interest rates, further amplifying the impact of local interest rates on its financial flexibility. Amid these challenging market conditions, Brazilian farmers faced tight working capital during the critical period for purchasing inputs like fertilizers for the upcoming planting season. In response, many farmers sought suppliers offering the most favorable payment terms and interest rates, opting to defer payments until after the harvest, typically between 9 to 12 months later. While this approach is common in the agricultural sector, it increases the risk of non-payment for suppliers, including fertilizer companies, reflecting the heightened financial pressures within the industry. Currency exchange rate Canadian dollar valuated by 6.2% versus Brazilian Real in FY 2024 compared to FY 20239. Q4 and FY 2024 Results Conference Call The Company will host a conference call to discuss Q4 and FY 2024 results and provide an update. Subscribe using the link below and receive the conference details by email. Date: Friday, March 21, 2025 Time: 09:00 am Eastern Time Subscription link: The questions must be submitted in advance through the following link before the conference call: The Company's full year and fourth quarter financial statements and related notes for the period ended December 31, 2024 are available to the public on SEDAR at and the Company's website at Results of Operations The following table provides information about three and twelve months ended December 31, 2024 as compared to the three and twelve months ended December 31, 2023. All amounts in CAD $'000. All amounts in CAD $'000 3 months ended Dec 31, 2024 3 months ended Dec 31, 2023 12 months ended Dec 31, 2024 12 months ended Dec 31, 2023 Tons sold ('000) 48 104 319 428 Average revenue per ton sold $ 60 68 68 89 Average production cost per ton sold $ (21 ) (21 ) (20 ) (23 ) Average gross profit per ton sold $ 39 47 48 66 Average gross margin 65 % 68 % 71 % 74 % Revenue 2,888 7,058 21,597 37,863 Production costs (986 ) (2,230 ) (6,302 ) (9,689 ) Gross Profit 1,902 4,828 15,295 28,174 Gross Margin 65 % 68 % 71 % 74 % Sales and marketing expenses (842 ) (996 ) (3,686 ) (4,022 ) Product delivery freight expenses (938 ) (3,001 ) (7,705 ) (14,510 ) General and administrative expenses (1,947 ) (2,527 ) (6,432 ) (7,666 ) EBITDA (1) (1,825 ) (1,696 ) (2,528 ) 1,976 Share Based, Equity and Bonus Payments (Non-Cash Event) (2) 13 (304 ) (2,133 ) (449 ) Depreciation and Amortization (3) (753 ) (640 ) (3,232 ) (3,716 ) Operating (Loss) / Profit after non-cash events (2,565 ) (2,640 ) (7,893 ) (2,189 ) Interest Income/Expense (4) (262 ) (2,795 ) (4,634 ) (6,381 ) Net (Loss) / Profit before tax (2,827 ) (5,435 ) (12,527 ) (8,570 ) Income tax (5) (4 ) 2,787 (31 ) 2,591 Net (Loss) / Profit (2,831 ) (2,648 ) (12,558 ) (5,979 ) (1) – Non GAAP measure(2) – Included in General and Administrative expenses in financial statements(3) – Included in General and Administrative expenses and Cost of Sales in financial statements(4) – Please see Summary of Interest-Bearing Loans and Borrowings notes(5) – Please see Income Tax notes External Factors Revenue and costs are affected by external factors including changes in the exchange rates between the C$ and R$ along with fluctuations in potassium chloride spot CFR Brazil, agricultural commodities prices, interest rates, among other factors. For further details, please refer to the 2024 Year in Review section (page 3). Financial and operating results In FY 2024, revenue from sales fell by 43%, accompanied by a 23% reduction in the average revenue per ton. Excluding freight expenses (FOB price), the average revenue per ton decreased by 20%. This decline in average revenue per ton was primarily attributed to a decrease in potassium chloride prices, the provision of additional discounts by the Company to strategic customers to increase market adoption, and a shift in the product mix due to farmers limited working capital. With many farmers facing restricted cash flows, there has been a noticeable shift towards opting for lower-value-added products. Despite these challenges, Verde managed to increase sales of premium products, with Low-Carbon Specialty Fertilizer Products accounting for 13% of total sales in 2024, up from 7% in 2023. However, the share of sales in big bags declined from 20% in FY 2023 to 13% in FY 2024, negatively impacting the average revenue per ton. The decline in sales price per ton and volume were the key drivers of the Company's significantly lower results compared to the previous year. Additionally, the Company continues to maintain a high level of Expected Credit Losses ('ECL'), which further impacted EBITDA negatively. The Company is actively negotiating with these clients, and if successful, the provision will be reversed. The Company generated a net loss of -$12.6 million in FY 2024, compared to a net loss of -$6.0 million in FY 2023. Basic loss per share was -$0.24 for FY 2024, compared to a basic loss per share of -$0.11 for FY 2023. Production costs The average cost per ton fell by 13% in FY 2024, driven by fluctuations in the Brazilian real and a shift towards greater utilization of Plant 2, which operates at a lower cost than Plant 1 due to enhanced operational efficiency. Sales from Plant 2 accounted for 76% of total sales in 2024, further contributing to the reduction in average production costs per ton. Production costs include all direct costs from mining, processing, and the addition of other nutrients to the Product, such as Sulphur and Boron. It also includes the logistics costs from the mine to the plant and related salaries. Verde's production costs and sales price are based on the following assumptions: Micronutrients added to the product increase its production cost, rendering K Forte® less expensive to produce. Production costs vary based on packaging type, with bulk being less expensive than Jumbo Bags. Plant 1 produces K Forte® Jumbo Bags and Low-Carbon Specialty Fertilizer Products, while Plant 2 exclusively produces K Forte® Bulk. Therefore, Plant 2's production costs are lower than Plant 1's costs. Sales, General and Administrative Expenses: SG&A represents a non-operating segment that includes corporate and administrative functions, essential for supporting the Company's operating segments. Sales Expenses CAD $'000 3 months ended 3 months ended 12 months ended 12 months ended Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Sales and marketing expenses (740 ) (923 ) (3,246 ) (3,912 ) Fees paid to independent sales agents (102 ) (73 ) (440 ) (110 ) Total (842 ) (996 ) (3,686 ) (4,022 ) Sales and marketing expenses cover salaries for employees, car rentals, domestic travel in Brazil, hotel accommodations, and Product promotion at marketing events. As part of the Company's sales and marketing strategy, Verde compensates its independent sales agents through commissions. Fees paid to independent sales agents increased by $330,000 in FY 2024, partially due to a $249,000 provision reversal recorded in 2023. Product delivery freight expenses Expenses decreased by 47% in FY 2024, to $7.7 million compared to $14.5 million in FY 2023. The volume sold as CIF (Cost Insurance and Freight) in 2024 represented 74% of total sales, compared to 71% in FY 2023. However, the Company achieved a reduction in average freight costs per ton for products sold on a CIF basis, to $33 in 2024 from $48 in the comparable period of the previous year. The 31% decrease in freight costs can primarily be attributed to a reduction in the percentage of sales made to regions that are more distant from Verde's production facilities. General and Administrative Expenses CAD $'000 3 months ended Dec 31, 2024 3 months ended Dec 31, 2023 12 months ended Dec 31, 2024 12 months endedDec 31, 2023 General administrative expenses (330 ) (665 ) (2,413 ) (3,646 ) Allowance for expected credit losses (1,302 ) (1,138 ) (2,320 ) (1,754 ) Legal, professional, consultancy and audit costs (207 ) (521 ) (1,112 ) (1,435 ) IT/Software expenses (102 ) (182 ) (529 ) (715 ) Taxes and licenses fees (6 ) (21 ) (58 ) (116 ) Total (1,947 ) (2,527 ) (6,432 ) (7,666 ) General administrative expenses include office expenses, rent, bank fees, insurance, foreign exchange variances, and remuneration for executives, Board directors, and administrative staff. In FY 2024, general administrative expenses decreased by 34%, primarily due to a series of contract renegotiations with suppliers, a reduction in administrative headcount, and lower leasing expenses, such as water trucks and metallic structures used to support operations. As per Verde's sales policy, any outstanding customer payments overdue for more than 12 months must be provisioned. The total ECLs booked in Q4 2024 amounted to $2.3 million, compared to $1.8 million of provision in Q4 2023. In 2024, the agricultural sector experienced a significant rise in insolvency protection cases, directly impacting a portion of Verde's clients. Legal, professional and audit costs include fees along with accountancy, audit and regulatory costs. Consultancy fees encompass consultants employed in Brazil, such as accounting services, patent processes, lawyer's fees and regulatory consultants. Share Based, Equity and Bonus Payments (Non-Cash Events) encompass expenses associated with stock options granted to employees and directors, as well as equity compensation and non-cash bonuses awarded to key management personnel. In FY 2024, the costs associated with share-based, equity, and bonus payments increased. This was primarily due to new options issuance. Income tax Brazilian corporations are subject to income taxes (IRPJ and CSLL) using an 'Actual Profits' method (i.e. APM - 'Lucro Real', in Portuguese), which is based on taxable income (the tax in this method is approximately 34% of the EBITDA), adjusted by certain additions and exclusions as determined by the legislation. As of January 2023, the Brazilian subsidiary switched from 'Assumed Profits' taxation to 'Real Profits' taxation. With this transition, the Subsidiary is allowed to offset up to 30% of accumulated losses in subsequent years when profits are generated. Based on the projected taxable income, considering the approved budget and an extended period of up to ten years the recognized deferred tax assets on the Brazilian entities are deemed recoverable, resulting in the recognition of $2.8 million of deferred tax assets in such entity. The Company also recognized an allowance for tax losses carry forward for the amount that is not expected to be offset against future taxable income within ten years. Liquidity and Cash Flows For additional details see the consolidated statements of cash flows for the quarters ended December 31, 2024 and December 31, 2023 in the financial statements. Cash received from / (used for):CAD $'000 3 months endedDec 31, 2024 3 months endedDec 31, 2023 12 months endedDec 31, 2024 12 months endedDec 31, 2023 Operating activities (214 ) 20,709 (1,885 ) 4,619 Investing activities (197 ) (2,308 ) 753 (4,022 ) Financing activities 171 (20,806 ) (3,120 ) 5,017 On December 31, 2024, the Company held cash of $3.4 million, a decrease of $3.5 million on the same period in 2023. In addition, the Company had $6.9 million in short-term receivables, bringing the total of cash and receivables to $10.3 million in FY 2024. Operating activities In agricultural sales, credit transactions are common due to the cyclical nature of farming income, which sees fluctuations with seasonal highs during harvests and lows during planting. This cycle necessitates that farmers have access to essential inputs like seeds, fertilizers, and pesticides ahead of their selling season. To accommodate this, credit terms are offered, allowing farmers to procure these inputs in advance and align their payments with their revenue cycle. Verde's approach to credit in the agricultural sector reflects a deep understanding of these operational nuances, resulting in a substantial portfolio of receivables. The Company's credit term is 30 to 120 days upon shipment, depending on the period of the year, tailored to the specific needs of each farmer, considering the crop cycle, creditworthiness, and other key factors. This strategy ensures farmers have the necessary resources for each planting season, while Verde secures its financial interests through aligned payment schedules. Net cash generated under operating activities decreased to -$1.9 million in FY 2024, compared to $4.6 million in FY 2023. This was mainly due to a decrease in receivables and payables from the last financial year. Trade and short-term receivables decreased by 50% in FY 2024, to $6.9 million compared to $13.7 million in 2023. Trade and other payables decreased by 57% in FY 2024, to $1.7 million compared to $4.0 million in 2023. Investing activities Cash utilized from investing activities increased to $0.8 million in FY 2024, compared to -$4.0 million in 2023. This increase was due to the redemption of financial applications. Financing activities Cash generated from financing activities decreased to -$3.1 million in FY 2024, compared to $5.0 million in FY 2023. This decline resulted from a lower volume of loans issued in 2024 compared to the previous year. Financial condition The Company's current assets decreased to $12.0 million in 2024, compared to $23.0 million in 2023. Current liabilities decreased to $2.0 million in FY 2024, compared to $40.0 in FY 2023, providing a working capital surplus of $10.0 million in 2024. This improvement was primarily driven by the renegotiation of loans, extending their repayment terms to the long term, which positively impacted the Group's working capital position. Although the restructuring plan is pending court homologation, most of the creditors have agreed to the new terms. About Verde AgriTech Verde AgriTech is dedicated to advancing sustainable agriculture through the innovation of specialty multi-nutrient potassium fertilizers. Our mission is to increase agricultural productivity, enhance soil health, and significantly contribute to environmental sustainability. Utilizing our unique position in Brazil, we harness proprietary technologies to develop solutions that not only meet the immediate needs of farmers but also address global challenges such as food security and climate change. Our commitment to carbon capture and the production of eco-friendly fertilizers underscores our vision for a future where agriculture contributes positively to the health of our planet. For more information on how we are leading the way towards sustainable agriculture and climate change mitigation in Brazil, visit our website at Corporate Presentation For further information on the Company, please view shareholders' deck: Company Updates Verde invites you to subscribe for updates. By signing up, you'll receive the latest news about the Company's projects, achievements, and future plans. Subscribe here: Cautionary Language and Forward-Looking Statements All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the estimated amount and grade of Mineral Resources and Mineral Reserves; (ii) the estimated amount of CO2 removal potential per ton of rock; (iii) the PFS representing a viable development option for the Project; (iv) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods; (v) the estimated amount of future production, both produced and sold; (vi) timing of disclosure for the PFS and recommendations from the Special Committee; (vii) the Company's competitive position in Brazil and demand for potash; (viii) estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine. (ix) the expected terms of the debt restructuring; (x) the expected financial impact of the debt restructuring to the Company; (xi) the timeline for court approval of the debt restructuring; and (xii) the potential arising from the re-assaying of certain core samples. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "envisages", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. All forward-looking statements are based on Verde's or its consultants' current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include, but are not limited to: (i) the presence of and continuity of resources and reserves at the Project at estimated grades; (ii) the estimation of CO2 removal based on the chemical and mineralogical composition of assumed resources and reserves; (iii) the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities of water and the quality of the water that must be diverted or treated during mining operations; (iv) the capacities and durability of various machinery and equipment; (v) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times; (vi) currency exchange rates; (vii) Super Greensand® and K Forte® sales prices, market size and exchange rate assumed; (viii) appropriate discount rates applied to the cash flows in the economic analysis; (ix) tax rates and royalty rates applicable to the proposed mining operation; (x) the availability of acceptable financing under assumed structure and costs; (xi) anticipated mining losses and dilution; (xii) reasonable contingency requirements; (xiii) success in realizing proposed operations; (xiv) receipt of permits and other regulatory approvals on acceptable terms; and (xv) the fulfilment of environmental assessment commitments and arrangements with local communities. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks related to the court approval process for the debt restructuring; risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde's Annual Information Form filed with SEDAR in Canada (available at for the year ended December 31, 2023. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law. For additional information please contact: Cristiano Veloso, Chief Executive Officer and Founder Tel: +55 (31) 3245 0205; Email: investor@ 1 Learn more at: Verde Successfully Renegotiates Loans with Its Two Largest Creditors 2 Learn more at: Verde Secures Debt Renegotiation Agreement Covering 92% of Total Debts, Reaching Improved Financial Terms 3 The carbon capture potential of Verde's products, through Enhanced Rock Weathering (ERW), is 120 kg CO2e per ton of K Forte®. For further information, see 'Verde's Products Remove Carbon Dioxide From the Air'. 4 K Forte® is a fertilizer produced in Brazil using national raw materials. Its production process has low energy consumption from renewable sources and, consequently, a low environmental and GHG emissions footprint. Whereas the high carbon footprint of KCl results from a complex production process, involving extraction, concentration, and granulation of KCl, in addition to the long transportation distances to Brazil, given that 95% of the KCl consumed in the country is imported. 12Mt of K Forte® is equivalent to 2Mt of KCl in K2O content. Emissions avoided are calculated as the difference between the weighted average emissions for KCl suppliers to produce, deliver, and apply their product in each customer's city and the emissions determined according to K Forte®'s Life Cycle Assessment for its production, delivery, and application in each customer's city. 5 From 2018 to 2024, the Company has sold 1.85 million tons of Product, which can potentially remove up to 231,376 tons of CO2. Additionally, this amount of Product could potentially prevent up to 66,405 tons of CO2 emissions. 6 Verde's Product is a salinity and chloride-free replacement for KCl fertilizers. Potassium chloride is composed of approximately 46% of chloride, which can have biocidal effects when excessively applied to soils. According to Heide Hermary (Effects of some synthetic fertilizers on the soil ecosystem, 2007), applying 1 pound of potassium chloride to the soil is equivalent to applying 1 gallon of Clorox bleach, with regard to killing soil microorganisms. Soil microorganisms play a crucial role in agriculture by capturing and storing carbon in the soil, making a significant contribution to the global fight against climate change. 7 1 ton of Product (10% K2O) has 0.1 tons of K2O, which is equivalent to 0.17 tons of potassium chloride (60% K2O), containing 0.08 tons of chloride. 8 As of December 30, Source: Brazilian Central Bank. 9 Source: Brazilian Central in to access your portfolio
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17-02-2025
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INSEAD Will Expand Its U.S. Presence In 2026, Dean Says
Francisco Veloso speaking at the Americas Conference in San Francisco in 2023. The French school, which also has campuses in Singapore and Abu Dhabi, will expand the use of its San Francisco campus to give MBA students the opportunity to spend two of their 10 months there. File photo In early February, INSEAD used the occasion of the biennial Americas Conference to celebrate its five-year anniversary in San Francisco — and to commit to a deeper investment in the city, the capital of Silicon Valley and the epicenter of innovation in artificial intelligence. For the last five years, INSEAD's San Francisco Hub for Business Innovation has been a space largely used for executive education offerings and conferences, as well as MBA and master in management courses of short durations — a week here and a week there for students, including those on experiential treks to visit tech companies based in the region. But beginning next year, students in INSEAD's MBA program will have the option to spend a full period — two months — of the 10-month full-time program at the school's Hub in the heart of the Northern California city. It's a major shift that will further cement INSEAD's 'connection to the spirit of innovation' in San Francisco, Dean Francisco Veloso says. 'The Hub has been a really interesting opportunity for us to connect to the region, to the innovation spirit there, and we want to take that to the next level,' he tells Poets&Quants. 'And so we are planning next year to start offering an entire period of the MBA available here in Silicon Valley, similar to what we have, for example, with our Wharton exchange and in Abu Dhabi.' Veloso was in San Francisco this month for the Americas Conference, a gathering of alumni, faculty, school leadership, authors, journalists, and tech luminaries for a series of discussions about the future. In an exclusive interview, he spoke to Poets&Quants about the rapid pace of growth in artificial intelligence, the ongoing curriculum overhaul that weaved sustainability into all of the school's courses, the struggles the MBAs (including INSEAD's) had on the job market in 2024, and about the politicization of sustainability and ESG in the U.S. The topic of the day, however was the San Francisco Hub's five-year anniversary and INSEAD's big plans for its future. Beginning in 2026, INSEAD's MBA students will have the option to spend one-fifth of the program in San Francisco, learning and studying from a base in the Mission Bay section of the city near Oracle Park, where the San Francisco Giants Major League Baseball team plays. It's a big shift for the school, and for its students — and a bit of a gamble. 'We would offer the opportunity for the students to stay here one period,' which is two months out of the full-time program's 10, Veloso says. 'There is this 'P' lingo — P1, P2, P3, P4. This is our own lingo. So we would offer one of the P's as a possibility for them to come here and spend the period which a two-month period here. And that would be a way to really engage with the AI environment here. 'We believe that the global epicenter of AI is here in the Valley, in San Francisco in particular, and we have now had this great trajectory already of engagement with the Hub, but that tended to be more shorter engagements. They would come here for one week, and that was true for the master's in management. It's true for the MBA. It's true for the executive MBA. 'We now want to extend that and provide a deeper opportunity here — to try to understand first, is this interesting for our students? Do they want this? I mean, we will continue to have the other options. They can spend more time in Singapore. They can go to Abu Dhabi. But we're going to create this opportunity here. And so it's going to be interesting to understand what our students think. Is this interesting as an option? So are we going to have a lot of demand, little demand? We'll see.' It seems like a solid bet: In 2024, U.S.-based companies were the fastest-growing market for INSEAD graduates, Veloso says. Being a global B-school with a U.S. location shows those companies that they an trust INSEAD's commitment to the U.S. market. 'And so we want to double down on the original idea of the Hub and deepen it, especially leveraging this big transformation around AI,' he says. 'And we think that this is going to be an interesting opportunity. We will explore that more. We will continue to expand on our executive education as well. It's part of this idea of deepening our connection here and exploring the opportunities, and we will be continuing to do so.' Francisco Veloso: 'We want to double down on the original idea of the San Francisco Hub and deepen it, especially leveraging this big transformation around AI' Unsurprisingly, the 2025 Americas Conference was largely focused on AI, which has become the thing everyone talks about — these days topping even sustainability, which INSEAD made its raison d'etre beginning in early 2024, weaving it into every aspect of its MBA program. That was part of the reason P&Q named INSEAD its 2023 Program of the Year. Though the 2025 conference included Sustainability Awards and some panel discussions devoted to the topic, AI was on everyone's minds, Veloso acknowledges, because it has exploded with such enormous potential — and because it carries a lot of questions for business schools. He is enthusiastic about INSEAD leading that conversation — now, and into the future. 'It's perhaps not surprising being here in San Francisco that a lot of the discussion is around some of the important technological shifts that are taking place around us, and maybe not surprisingly AI at the heart of it,' he says. 'What does it mean? What does it imply? How do we work with it? How do we prepare? What's the role of business schools on that? So there's an important set of discussions. 'It is about change. It's about how to lead into a better world, understanding how and what is happening with this important disruption related to AI. And so it is also an opportunity to mobilize, of course, our alumni base here in North America, in particular, and connect with them, learn from them, share with them, and also create opportunities for them to connect between themselves, and this is also very valuable. 'So it's a substantive element that's important: that's meaningful tech, particularly AI and sustainability being two important angles of that. But it's also celebrating with our amazing community the five years of our presence here in San Francisco.' Edited for length and clarity Poets&Quants: 2024 was a really important year for INSEAD. You had a curriculum overhaul, integrating sustainability into the curriculum in the way that you did. More than a year later, what's your view on how things have gone? Francisco Veloso: I think it's been going quite well. I think it's been going very well in different ways, actually. First, it's clear, at least for us, that the approach that we decided to take, that sustainability is not something that is kind of confined in a particular course, but something that has B2E integrated and weaved through the business function as an important element that any level strategy, marketing, operations, is certainly something that we are now completely convinced that that's in our way. It's the only way to think about this. And so we're very happy with that. We also think that there is a lot of value in this idea of combining that element of the capstone project to also have an important sustainability component, so that that is seen in a solution business-oriented context rather than just something that you have to understand. We think that it's important to think this is as part of the business set of solutions that are amazing opportunities to do things better, to do things differently. I think that can be very powerful because that's the way that they should approach it. This is not about corporate social responsibility. This is about finding business solutions that drive results and have an impact. And that's been very interesting also from the point of view that we're actually internally putting different faculty working together in this capstone, because they themselves have been thinking about it, in the context of accounting or finance or in the context of operations: 'But now, let's work together to develop a case that actually brings these things all together.' And so I've had some very interesting conversations with students about how they value it, but also with faculty about their own learning journey about working together to create this case. But of course, it's the first time that we're doing it and so it was also valuable to hear from the students to say, 'Here's some things that I think we can do better that perhaps we need to improve, change.' And you also have the entire distribution, students that then come to you and say, 'Oh, I thought we would have much more sustainability than we did.' And the students that said, 'Oh, there were some things there, but I don't think it really brings value. Perhaps we shouldn't do it.' So you of course have the whole spectrum and that's the value of diversity that we encourage and that we value it. But by and large, I think people are very happy with the sets of decisions and the trajectory we learned. We will continue our improvement every time we have a major curricular review. I think it is important to recognize that not everything works perfect and that there are things that we can streamline better, which is just part of doing major changes. You think about that — but a lot of very, very positive feedback. And significant feedback from your corporate partners and recruiters as well? Yes and no. In Davos, we had a very interesting panel that I was a part of about that, which is I think that we have this dichotomy of situations: One is you have students, graduates, and companies that have that very clear as part of their mission and their vision, and then they are very happy that we're bringing this to the students and that this is part of the portfolio and this is part of the capabilities that they bring. And this becomes then part of also the 'selling proposition' for the student because of the nature of the company that they're looking for. But I think that if you ask me about, I would say, more the mainstream to say, 'Okay, if your average employer in a FMFCG or in a consulting firm is asking about sustainability part of, say, the standard sets of questions and skills that the employers are primarily or are significantly including in their questions,' I don't think we are there yet. Are there areas of collaboration that come to mind with other business schools, maybe other schools in Europe or other U.S. schools, in a time where in the U.S., in particular, we're in an interesting political environment and some things are being pushed back in the U.S.? Are there areas of collaboration where INSEAD could take the lead? Yes. Certainly, I mean, this area of sustainability is one, and in ESG more generally, I think that it is important. This is an important commitment that we have as a school and that we'll continue to have. And so I think it's unfortunate that this has gotten politicized, because I don't see it as a political decision, as a left-and-right discussion. And so I think it's unhelpful that we went into that direction and that we went into that rabbit hole, unfortunately. But now that we're in it, you can't get out of it. I know, I know. But that's the difficulty. So we will continue to be pushing this because it has nothing to do with politics. It has to do with business. It has to do with the world and what the world needs regardless of the political spectrum, and that's why we will continue to certainly advocate that. I think that there's a lot to be done in these areas of AI because I think each of us are thinking about what to do. But I think the nature of the changes is so profound that having that exchanges between business schools and what the different faculty, the different solutions, approaches, organizations are taking place is and will be quite significant, and so I think this is another area that I think it would benefit a lot. For example, we have a very strong collaboration with Wharton. And we were having a discussion on how we could, without restricting the academic freedom that is important, create the focus point around AI so that the faculty between the two places could exchange, learn, share what they're doing and how they're looking at that world, and there was a lot of enthusiasm to try to do that, so we're trying to find a way to make that happen as part of our collaboration. That is one example, but I think more can be done. So that's certainly another area that I think there's a lot of opportunities to learn across different business rules. How do you think business schools in Europe should respond to what's going on in the United States? Do you think that they should continue to push for, make investments in sustainability, and do you think that they will? I think the reaction is only to the extent that people feel that there are, I would say, attacks on freedom of speech or something like that that become more salient, and though that's a different story because if this becomes important, then we can have a different role there. But the reason why we're doing this, as I said, is not political. So I don't think it's changing course either to now that if this is not important, we're going to double down on these or if this is less important, we don't have to do less. I think that the journey that many of them are in, which is our own journey, is a journey that we've identified because of what we think are the needs of businesses and society, and we will continue to press on that. We're not going to diminish it or heighten it because the administration in the U.S. has or doesn't have a certain position in relation to these. And I believe that many of the other schools are going to continue as well. What I don't think is we should dampen it, right? I think that there may be some movement to dampen some elements here because of political pressures, but I hope that the schools here will find a way to navigate this more politically charged environment. But I think in Europe and in other parts of the world, we will continue the journey because it's an important journey, but not as a way to try to politicize it as well because that should not be our goal and our contribution. Late last year, you contributed to us with a , which you've done, I believe, a couple of years now. And thank you for that. One line from that was in this year's contribution: 'We will bring further innovation through AI-driven approaches and solutions.' You've talked a lot about AI. We're going to continue to talk a lot about AI, I think, for the foreseeable future. But do you have any concerns about AI? Do you think there are any downsides to AI? I'm not talking about robots taking over the world. I'm talking about the tech not quite being ready for the things that we think that it's ready for. Well, I don't think it's the tech that's not ready. It's the organizations and the people that are not ready. Because I think the tech is evolving quite rapidly. I made this comment in a session just now, which was to say, 'I think that both the level and the trajectory that we are in, the position and the speed is already significant. So they're both so significant that we are going to have difficulty adapting as individuals and organizations just catching up. That connects to the downside in the sense that I do think it is quite significant and quite profound, which means that if we don't seriously reflect on how it affects the way that we do things, then it can be an immense source of frustration. It can be an immense source of tension also if we don't steward it properly, and this goes to your point: Are some of my faculty worried? I think they are in the sense that you can drive this technology like all technologies in many different directions. Nuclear fission has led the creation of nuclear reactors that power thousands of homes and businesses, but it led also to the atomic bomb. And so all technologies have these. Drones are nice tools, but as we've seen are also now key war machines that didn't exist before. So those are everywhere and that's certainly true for AI. So the stewardship of AI is going to be quite important. And I'm not even talking about malevolent use, right? There are criminals out there that would be using these for malevolent use. Competent use. Exactly. Competent use or even how you direct it because one of the issues that appears all the time is this notion that we're going to direct AI to replace jobs, for example. So how you leverage this tool in an organization in a productive way versus a way that is about, say, automating tasks for the sake of it because you want to reduce the number of employees. That could be quite damaging for society. So there is an element of stewardship and governance that I think is quite important, about how we do it in a way that enhances human value and augments human value, rather than detracts and diminishes human value. So we do have many faculty concerned about these at the high level, but then you also have more micro level, which is how do you create trust in people to embrace it even at the more fundamental level, because then people are afraid to leak data. They're afraid that they're doing something bad. They're afraid that they are, for example, misattributing things because they wrote a text with AI. 'Now it's not my text. This is my text.' And so all of these are things that we need to do. And if you don't take this thing seriously in an organization, be it a business school, be it a company, or if you take it also haphazardly it can be an immense source of frustration and very damaging. So these are the concerns that I see that are important at a different level. But we, as a school, we are taking it quite seriously in different ways. I mean, we have, fortunately, faculty members that are really at the cutting edge of leveraging and learning about AI from people that are studying how OpenAI organized their own systems, how entrepreneurs are leveraging AI, and how strategic processes are being reshaped because of that. I mean, we have people studying how can you deploy some of these technologies to automate learning for underserved languages, for example. We have the whole gamut going on, which is wonderful to see, and just like we looked at the curriculum for the sustainability elements, we're also taking a serious look about how do we integrate it in deep ways in the curriculum. My dean of the degree programs told me last semester, one of the last elective periods, he had to now restrict the number of AI electives because there were too many already going on, and so the students could not possibly take all of them. And so that is already completely populated precisely because of all the wonderful work that our academics are doing in this area. 2024 was a rough year for MBAs coming out of just about every business school, . Are you encouraged that 2025 is going to be a better year, that 2026 will be a better year, and that 2024 will perhaps be remembered as a down year? I think it was a combination of elements. We are known, for example, as a school that produces a lot of graduates that go into consulting jobs in general. We know what happened that post-'21, post-Covid, a lot of hiring occurred and then there was a little bit of having to deal with perhaps too much and then having to readjust some of that. So I think that realignment of the cycles in the consulting sector is probably going to occur. I think talking to some of the leaders it is readjusting onto a more stable journey. I think that's already occurring. That's the sense that I have. The co-founders of the global finance jobs platform, are alums from INSEAD, and I met one of them in Davos and we were having a conversation and he was telling me that they were seeing the plateauing and perhaps some early signs of a movement up. So there was another nice example and as you know, if there are people that have a very good sense of where the market is, it is the job platforms. They see the listings, they hear it first before any of the official job statistics. So I thought that that was also encouraging. Talking to a couple of the leaders of Google in Europe that are alums as well, they were telling me that they were starting to see internally the number of job offers starting to move up. One of the leaders of Google was telling me that he was seeing some movement, that he had seen the initial movement first in the jobs that they have in their Ireland hub that was very large, but he was starting to again see it in other parts. So all of these instances are suggesting that we may have turned the corner in terms of the difficult market that exists, but we will see the proof is in the pudding and our students will let us know. I can't tell you how difficult or how easy that market will be, but I think we're going to be in better shape. I was talking to students and several of them were telling me that they were starting to see some movement on some of the applications and stuff that they had not seen a few months before. And so again, it's the combination of elements that suggest that we are going to be probably on a better trajectory. DON'T MISS and The post INSEAD Will Expand Its U.S. Presence In 2026, Dean Says appeared first on Poets&Quants.
