- Verde AgriTech (TSX:NPK) has reported an 830 per cent growth in sales for the first quarter of 2020, compared to the previous corresponding period
- Furthermore, the Brazil-based fertiliser manufacturer increased quarterly revenue by 230 per cent to C$509,532, compared to $154,279 in the first quarter of 2019
- However, the company reported a net loss of $792,195 for the quarter, a nine per cent improvement on 2019’s first quarter net loss
- Verde AgriTech (NPK) is up 7.14 per cent, with shares trading at $0.45 and a market cap of $20 million
Verde AgriTech (TSX:NPK) has reported a net loss for the first quarter of 2020, despite an 830 per cent growth in sales.
The Brazil-based fertiliser manufacturer increased revenue 230 per cent to $509,532, compared to $154,279 in the first quarter of 2019.
Furthermore, quarterly fertilizer production was up to 6,375 tonnes, compared to 4,825 tonnes in the previous corresponding period.
Sales increased by 830 per cent with a total of 10,170 tonnes compared to 2019’s same quarter.
However, the bump in sales didn’t stop the company from posting a net loss of $792,195 for the quarter, nine per cent down on 2019’s first quarter.
The company’s production cost per tonne slid from $4,463 in 2019 first quarter, to $3,257 in 2020. This was caused by the Brazilian Real sliding 15 per cent against the Canadian Dollar, due to coronavirus playing havoc with world currency markets.
President and CEO of Verde, Cristiano Veloso said he was encouraged by the continued exponential growth the company is experiencing.
“The first quarter of a calendar year is naturally its weakest for fertiliser demand because of the climate seasonality in the agricultural cycle.
“Most of our sales are expected to take place between June and September, period which therefore has a greater impact on second and third quarter financial results,” he said.
Cristiano went on to say that, despite the impact of COVID-19, the company is on track to meets its 2020 growth target of 76 per cent.
Verde AgriTech (NPK) is up 7.14 per cent, with shares trading for $0.45 at 11:22 am EDT.