Results surpass EPS guidance by 254%
Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the first quarter of 2022 (“Q1 2022”).
Q1 2022 Financials
- Revenue increased by 1,260% in Q1 2022, to $11,304,000 compared to $831,000 in Q1 2021.
- Revenue in Brazilian Real (“R$”) increased by 1,196% in Q1 2022, to R$46,627,000 compared to R$3,597,000 in Q1 2021.
- Sales by volume increased by 574% in Q1 2022, to 111,667 tonnes sold compared to 16,558 tonnes sold in Q1 2021.
- Gross margin increased to 77% in Q1 2022, compared to 41% in Q1 2021.
- EBITDA before non-cash events increased to $3,678,000 in Q1 2022, compared to an operating loss of $887,000 in Q1 2021.
- Net profit increased to $3,033,000 in Q1 2022, compared to a net loss of $1,811,000 in Q1 2021.
Subsequent Events
- In April 2022, the Company announced that Plant 2 was on track to start production in Q3 2022, initially with a 1,200,000 tpy production capacity, as announced by the Company in the press release published on March 03, 2022. The final Plant 2 capacity of 2,400,000 tpy is expected to be reached in Q4 2022. Therefore, by Q4 2022, with Plant 2’s expansion, overall production capacity is expected to be 3,000,000 tpy, establishing Verde as Brazil’s largest potash producer.
- In April 2022, the Market Study (the “Study”) that will underpin the preparation of the New Pre-Feasibility Study announced by the Company on March 01, 2021 (the “PFS”) was concluded. The Study calculated the potential Brazilian agricultural market for potash, sulphur, and the micronutrients zinc, boron, copper and manganese. The Study was conducted between May 2021 and March 2022, it will be an integral part of the PFS. The PFS will contemplate a scenario of total annual production of up to 50,000,000 tonnes per year (“tpy”) of Verde’s Product, equivalent to 63% of the total Brazilian potash consumption in 2021.
- In April 2022, Bio Revolution, Verde’s newest technology that enables the incorporation of microorganisms to mineral fertilizers, was launched by the Company.[1] K Forte® will be the first fertilizer in the world to use Bio Revolution technology. Bacillus aryabhattai, widely renowned in agriculture for its multiple benefits, will be the first microorganism to be incorporated into Verde’s Product. Verde’s Plant 1 is already equipped with a facility for deploying Bio Revolution. At Plant 2, a proportionally larger Bio Revolution facility will be built, with operations expected by the end of 2022.
- In May 2022, Verde announced an increase in its 2022 guidance, previously published on January 10, 2022. The revised 2022 guidance provides for sales of 1,000,000 tonnes of Verde’s multinutrient potassium products, BAKS® and K Forte® sold internationally as Super Greensand® (the “Product”), with revenue of C$109.09 million, EBITDA of C$49.06 million and net earnings per share (“EPS”) of C$0.87. The 2023 guidance provides for sales of 2,000,000 tonnes.
“2022 has started in a very shaky manner for the agricultural market globally. In Brazil, which depends on imports for over 96% of its potash supplies, the concern with fertilizers has been at the forethought of most farmers. Despite the record rainfalls during the period, which postponed Verde’s delivery of an additional 25,133 tonnes of Product in Q1 2022, our Team successfully reached a growing portion of Brazil’s market. Verde’s target towards the delivery of 1,000,000 tonnes by the end of 2022 is further boosted by these latest results.” declared Verde’s Founder, President & CEO Cristiano Veloso.
2022 Guidance
On May 03, 2022, Verde announced an increase in its 2022 and 2023 guidance,[2] previously published on January 10, 2022.[3] The Company’s original and revised 2022 targets are detailed on a quarterly basis, to reflect the market demand’s seasonality, as follows:
| Period |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
FY 2022 |
| Guidance |
Original
Jan 2022 |
Achieved
in Q1 2022 |
Original
Jan 2022 |
Revised
May 2022 |
Original
Jan 2022 |
Revised
May 2022 |
Original
Jan 2022 |
Revised
May 2022 |
Original
Jan 2022 |
Revised
May 2022 |
| EPS (C$) |
0.02 |
0.06 |
0.18 |
0.21 |
0.25 |
0.35 |
0.06 |
0.25 |
0.50 |
0.87 |
| EBITDA (C$’000)[4] |
1,358 |
3,678 |
10,155 |
11,808 |
13,414 |
19,259 |
3,506 |
14,319 |
28,434 |
49,065 |
| Revenue (C$’000) |
10,070 |
11,304 |
21,954 |
22,902 |
27,228 |
40,121 |
13,011 |
34,769 |
72,263 |
109,097 |
| Sales target (tonnes) |
115,000 |
111,667 |
200,000 |
200,000 |
250,000 |
353,718 |
135,000 |
334,615 |
700,000 |
1,000,000 |
The 2022 guidance is underpinned by the following assumptions:
- Average Brazilian Real (“R$”) to Canadian Dollar exchange rate: C$1.00 = R$4.40
- Verde’s Product CIF and FOB average price for the full year, including delivered orders, committed orders and projected orders: C$109 per tonne
- Sales Incoterms: 50% CIF and 50% FOB
- Sales channels: 40% direct sales and 60% indirect sales
2023 Guidance
For 2023, Verde’s updated sales volume target is 2,000,000 tonnes. This target represents a potential 100% growth Year-on-Year (“YoY”).
| Period |
FY 2023 |
| Guidance |
Original
Jan 2022 |
Revised
May 2022 |
| Sales target (tonnes) |
1,400,000 |
2,000,000 |
Selected Annual Financial Information
The table below summarizes Q1 2022 financial results compared to Q1 2021:
All amounts in
CAD $’000 |
Q1 2022 |
Q1 2021 |
| Tonnes sold ‘000 |
112 |
17 |
| Revenue per tonne sold $ |
101 |
50 |
| Production cost per tonne sold $ |
(24) |
(30) |
| Gross Profit per tonne sold $ |
77 |
20 |
| Gross Margin |
77% |
41% |
|
|
|
| Revenue |
11,304 |
831 |
| Production costs |
(2,654) |
(490) |
| Gross Profit |
8,650 |
341 |
| Gross Margin |
77% |
41% |
Sales and product delivery
freight expenses |
(3,931) |
(531) |
| General and administrative expenses |
(1,041) |
(697) |
| EBITDA (1) |
3,678 |
(887) |
Share Based and Bonus
Payments (Non-Cash Event) (2) |
(64) |
(822) |
| Depreciation and Amortisation (2) |
(26) |
(5) |
Profit on disposal of plant and
equipment (2) |
– |
9 |
Operating Profit / (loss) after
non-cash events |
3,588 |
(1,705) |
| Interest Income/Expense |
(185) |
(75) |
| Net Profit / (Loss) before tax |
3,403 |
(1,780) |
| Income tax |
(370) |
(31) |
| Net Profit / (Loss) |
3,033 |
(1,811) |
(1) – Non GAAP measure
(2) – Included in General and Administrative expenses in financial statements
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 CIF (Minas Gerais) prices. The table below summaries these changes.
|
Change % |
3 months ended
Mar 31, 2022 |
3 months ended
Mar 31, 2021 |
Canadian Dollar (C$)
Average Exchange Rate |
-5% |
R$4.12 |
R$4.33 |
Potassium Chloride CIF
(Minas Gerais) Lowest Price(1) |
+154% |
US$800 |
US$315 |
Potassium Chloride CIF
(Minas Gerais) Highest Price(1) |
+204% |
US$1,200 |
US$395 |
(1) – Source: Acerto Limited Report.
Net Profits and EPS
The Company generated a net profit of $3,033,000 for Q1 2022, an increase of $4,844,000 compared to a net loss of $1,811,000 for Q1 2021. The basic earnings per share was $0.060 for Q1 2022, compared to loss per share of $0.036 for Q1 2021.
Product Sales
Sales by volume increased by 574% in Q1 2022, to 111,667 tonnes sold compared to 16,558 tonnes sold in Q1 2021.
Revenue
Revenue from sales increased by 1,260% in Q1 2022, to $11,304,000 from the sale of 111,667 tonnes of the Product, at $101 per tonne sold; compared to $831,000 in Q1 2021 from the sale of 16,558 tonnes of the Product, at $50 per tonne sold.
Revenue per tonne excluding freight expenses (FOB price) improved by 105% in Q1 2022, to $75 compared to $36 in Q1 2021.
The KCl price increased by 204% in Q1 2022, compared to Q1 2021. Verde did not, however, see a proportional increase in its pricing for Q1 2022 sales because it had sold part of its Q1 production in Q4 2021 and discounts are applied.
Revenue per tonne in Q1 2022 was higher than Q1 2021 mainly due to:
- Product volume sold as CIF (Cost Insurance and Freight) increased from 34% of total sales in Q1 2021 to 60% in Q1 2022.
- Potassium Chloride CIF (Minas Gerais) price increased from US$315-395 per tonne in Q1 2021 to US$800-US$1,200 per tonne in Q1 2022 (as reported by Acerto Limited, a market intelligence firm).
Production costs
Production costs include all direct costs from mining, processing, and the addition of other nutrients to the Product, such as Sulphur and Boron. They also include the logistics costs from the mine to the factory and related salaries.
Production costs increased by 442% in Q1 2022, to $2,654,000 compared to $490,000 in Q1 2021. This was due to a 574% increase in volume sold, from 16,558 tonnes in Q1 2022 to 111,667 tonnes in Q1 2021. Cost per tonne decreased by 20% in Q1 2022, to $24 compared to $30 in Q1 2021. This reduction was mainly driven by fixed cost dilution in Q1 2022.
Sales Expenses
| CAD $’000 |
Q1 2022 |
Q1 2021 |
| Sales and marketing expenses |
(822) |
(293) |
| Fees paid to independent sales agents |
(136) |
(9) |
| Product delivery freight expenses |
(2,973) |
(229) |
| Total |
(3,931) |
(531) |
Sales and marketing expenses
Sales and marketing expenses include employees’ salaries, car rentals, travel within Brazil, hotel expenses, customer relationship management (CRM) software licenses, and the promotion of the Product in marketing events.
Expenses increased by 181% in Q1 2022, to $822,000 compared to $293,000 in Q1 2021, mainly due to a further expansion of Verde’s sales and marketing team, with professional headcount in the team increasing from an average of 43 in Q1 2021 to 62 in Q1 2022. This increase is in line with the Company’s accelerated growth strategy.
Fees paid to independent sales agents
As part of Verde’s marketing and sales strategy, the Company pays out commissions to its independent sales agents.
Fees paid to independent sales agents increased by 1431% in Q1 2022, to $136,000 compared to $9,000 in
Q1 2021, as a direct result of increased sales and higher volume sold by sales agents compared to internal sales and distributors.
Product delivery freight expenses
Product delivery freight expenses increased by 1197% in Q1 2022, to $2,973,000 compared to $229,000 in Q1 2021, as the Company has significantly increased the volume sold as CIF (Cost Insurance and Freight), up from 34% of total sales in Q1 2021 to 60% in Q1 2022 and due to higher fuel prices, which increased 44% in Q1 2022 compared to Q1 2021.
General and Administrative Expenses
| CAD $’000 |
Q1 2022 |
Q1 2021 |
| General administrative expenses |
(410) |
(478) |
Legal, professional, consultancy
and audit costs |
(411) |
(159) |
| IT/Software expenses |
(204) |
(52) |
| Taxes and licenses fees |
(16) |
(8) |
| Total |
(1,041) |
(697) |
General administrative expenses
These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of executive and administrative staff in Brazil.
Expenses decreased by 14% in Q1 2022, to $410,000 compared to $478,000 in Q1 2021 mainly due to incentive compensation to the key management in Q1 2021.
Despite the reduction, salary costs have increased in 2022 as they include additional administrative employees, with professional headcount in the team increasing from an average of 26 in Q1 2021 to 57 in Q1 2022 to help support the Company’s growth.
Legal, professional, consultancy and audit costs
Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fees and regulatory consultants.
Expenses increased by 159% in Q1 2022, to $411,000 compared to $159,000 in Q1 2021, due to higher expenses with environmental, legal, accounting, and IT consultancies.
IT/Software expenses
IT/Software expenses include software licenses such as Microsoft Office, Customer Relationship Management (CRM) software and enterprise resource planning (ERP).
Expenses increased by 290% in Q1 2022, to $204,000 compared to $52,000 in Q1 2022, mainly due to CRM and ERP consultants services.
Taxes and licences
Taxes and licence expenses include general taxes, product branding and licence costs.
Expenses increased in Q1 2022, to $16,000 compared to $8,000 in Q1 2022.
Share Based and Bonus Payments (Non-Cash Event)
These costs represent the expense associated with stock options granted to employees and directors and non-cash bonuses paid to key management.
Share Based Payments costs decreased by 92% in Q1 2022, to $64,000 compared to $822,000 in Q1 2021.
Q1 2022 Results Conference Call
The Company will host a conference call on Wednesday, May 25, 2022, at 09:00 am Eastern Time, to discuss Q4 and FY 2021 results and provide an update. Subscribe using the link below and receive the conference details by email.
The questions can be submitted in advance through the following link up to 48 hours before the conference call:
The Company’s first quarter financial statements and related notes for the period ended March 31, 2021 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
About Verde AgriTech
Verde is an agricultural technology Company that produces potash fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.
Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.
Verde’s focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.[5] Currently, the Company is fully licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers K Forte® and BAKS®, sold internationally as Super Greensand®.[6]
By the end of 2022, Verde aims to become Brazil’s largest potash producer by capacity.[7] Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).[8] This amounts to 295.70 million tonnes of potash in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 7.92 million.[9]
Brazil ranks second in global potash demand and is its single largest importer, currently depending on external sources for over 96% of its potash needs. In 2021, potash accounted for approximately 2% of all Brazilian imports by dollar value.
Corporate Presentation
For further information on the Company, please view shareholders’ deck: https://verde.docsend.com/view/tr4c6e5qhjr442t3
Investors Newsletter
Subscribe to receive the Company’s updates at:
http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at:
Cautionary Language and Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.
For additional information please contact:
Cristiano Veloso, President, Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
[1] See the release at: https://investor.verde.ag/verde-launches-bio-revolution/
[2] See the release at: https://investor.verde.ag/verdes-2022-guidance-and-two-year-outlook-revised-upwards/
[3] See the release at: https://investor.verde.ag/verde-announces-2022-guidance-and-two-year-outlook/
[4] Before non-cash events.
[5] Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9
[6] See the release at: https://investor.verde.ag/2-5-million-tonnes-per-year-potash-mining-concession-granted-to-verde/
[7] See the release at: https://investor.verde.ag/verde-to-reach-3-million-tonnes-potash-production-capacity-in-2022/
[8] As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2017. See the Pre-Feasibility Study at: https://investor.verde.ag/wp-content/uploads/2021/01/NI-43-101-Pre-Feasibility-Technical-Report-Cerrado-Verde-Project.pdf
[9] Union of the Agricultural Fertilizers and Correctives Industry, in the State of São Paulo (“SIACESP”, from Sindicato da Indústria de Fertilizantes e Corretivos Agropecuários, no Estado de São Paulo).
(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in 2021: C$1.00 = R$4.31)
Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the fourth quarter 2021 (“Q4 2021”) and full year ended December 31, 2021 (“FY 2021”).
Q4 2021 Financials
- Revenue increased by 391% in Q4 2021, to $10,851,000 compared to $2,209,000 in Q4 2020.
- Revenue in Brazilian Real (“R$”) increased by 450% in Q4 2021, to R$46,723,000 compared to R$8,489,000 in Q4 2020.
- Sales by volume increased by 137% in Q4 2021, to 134,350 tonnes sold compared to 56,585 tonnes sold in Q4 2020.
- Gross margin increased to 75% in Q4 2021, compared to 59% in Q4 2020.
- Operating profit before non-cash events increased by 6786% in Q4 2021, to $2,452,000 compared to $36,000 in Q4 2020.
- Net profit increased to $1,878,000 in Q4 2021, compared to a net loss $192,000 in Q4 2020.
FY 2021 Financials
- Revenue increased by 202% in FY 2021, to $27,709,000 compared to $9,167,000 in FY 2020.
- Revenue in R$ increased by 239% in FY 2021, to R$119,310,000, compared to R$35,232,000 in FY 2020.
- Sales by volume increased by 64% in FY 2021, to 400,133 tonnes sold compared to 243,707 tonnes in FY 2020.
- Gross margin increased to 74% in FY 2021, compared to 62% in FY 2020.
- Operating profit before non-cash events increased by 305% in FY 2021, to $6,450,000 compared to $1,591,000 in FY 2020.
- Net profit increased by 540%, to $3,522,000 in FY 2021 compared to $550,000 in FY
Subsequent Events
- In January 2022, as a result of the Company’s continued accelerated market expansion, Verde announced its Paid for Growth (“P4G”) strategy, a cornerstone program aimed at distributing gains to shareholders. P4G strategy is possible because cashflow is now freed up thanks to Verde’s ability to finance expansion backed by future sales contracts. Previously, financing could only be secured by invoice discounting or guaranteed by capital goods; now, Verde’s future sales contracts are accepted as debt collateral.
- In February 2022, Verde adopted Earned Growth Rate (“EGR”) as a key metric for market success. EGR measures the sales growth by volume generated by returning customers and new client purchases made by existing clients’ referrals. The Company achieved an EGR of 165% in 2021, compared to a rate of 61% in 2020, demonstrating a higher client repurchase rate and successful client referrals.
- In February 2022, the Company received a new Mining Concession for the extraction of up to 2,500,000 tonnes per year (“tpy”) of Product. Verde is now fully permitted to produce up to 2,833,000 tpy.
- In February 2022, Verde AgriTech Plc’s Brazilian subsidiaries, Verde Fertilizantes LTDA and FVS Mineração LTDA, earned ISO 9001 and ISO 14001 certifications.
- In February 2022, the Company created a Special Committee to evaluate when and how to share profits with shareholders. The Special Committee to conduct the analysis is comprised of independent directors of the Board, consisting of Mr. Michael St Aldwyn (Verde’s Lead Independent Director), Mr. Renato Gomes and Mr. Paulo Sérgio Ribeiro.
- In February 2022, the Company’s Board of Directors unanimously approved an accelerated investment program to bolster an expansion plan that has two objectives: First, expand Plant 2’s operational capacity from 1,200,000 to 2,400,000 tpy by Q4 2022; and second, upgrade local infrastructure to sustain Plant 2’s logistics with added capacity to enable a future Plant 3. By Q4 2022, with Plant 2’s expansion, Verde expects to have raised its overall production capacity to 3,000,000 tpy. The approved expansion plan investment totals R$ 51 million Brazilian Reais (“R$”), which comes on top of the R$22 million previously approved for the construction of Plant 2. The Company aims to fund the expansion plan through a combination of future cashflow and debt finance backed by future sales contracts.
“Thanks to our team and all their efforts in 2021, Verde continued its accelerated growth with improving numbers in every subsequent quarter. We are excited and proud to be part of a team that is second to none when it comes to motivation and competence. We all recognize how fortunate we are to make a living while making a major contribution to the world”, declared Verde’s Founder, President & CEO Cristiano Veloso.
2021 Guidance
The Company’s original 2021 revenue guidance was R$50 million, the amount was revised upwards on November 15, 2021, to R$110 million. However, the realized 2021 revenue totalled R$119 million.
2022 Guidance
As announced in the press release published on January 10, 2022, the Company’s 2022 target, detailed on a quarterly basis to reflect the market demand’s seasonality, is as follows:
| Period |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
FY 2022 |
| Sales target (tonnes) |
115,000 |
200,000 |
250,000 |
135,000 |
700,000 |
| Revenue ($’000) |
10,070 |
21,954 |
27,228 |
13,011 |
72,263 |
| EBITDA ($’000) |
1,358 |
10,155 |
13,414 |
3,506 |
28,434 |
| EPS ($) |
0.02 |
0.18 |
0.25 |
0.06 |
0.50 |
The 2022 guidance is underpinned by the following assumptions:
- Average Brazilian Real (“R$”) to Canadian dollar exchange rate: C$1.00 = R$4.40 (in March 18, 2022, the exchange rate closed at C$1.00 = R$3.99).
- Average KCl CFR Brazil of US$500, compared to current price of US$1,025 per tonne (as per the market intelligence firm Acerto Limited weekly price for March 17, 2022).
- Sales Incoterms: 50% CIF and 50% FOB.
- Sales channels: 50% direct sales and 50% indirect sales.
Note that the assumption above does not include the grant of a new mining concession, as originally presented in the January 10, 2022, press release, because in February, 2022, Verde was awarded a Mining Concession for extraction of an additional amount 2,500,000 tpy of Product, bringing Verde’s total permitted mining capacity to 2,833,000 tpy.
“The 2022 Guidance is a noticeable leap from 2021 numbers. We still expect, however, to revise these numbers upwards as the year progresses to reflect both Product demand and increased potash prices, despite Q1 having been one of the wettest ever rainy seasons and the oil price increases,” commented Cristiano Veloso.
2023 Guidance
For 2023, Verde’s original sales volume target is 1.4 million tonnes. This target represents a potential 100% growth Year-on-Year (“YoY”) but it is now under review in light of the recent total 2.8 million tonnes permitted production capacity following the permits received in February, 2022, and increased production potential for 2022.
2021’s Key Objectives:
On March 31, 2021, Verde announced its key objectives for the year. A review of those objectives is detailed below:
Achieve 10% of the Company’s total sales as BAKS®:
BAKS® accounted for 9.8% of the total volume sold in 2021. BAKS® demand outstripped Verde’s production capacity for the period.
Launch a new technology in the second quarter of 2021:
On June 02, 2021, the Company launched N Keeper®, a proprietary processing technology for glauconitic siltstone that alters its physical-chemical properties to enable ammonia retention for use as a calibrated additive in Nitrogen fertilizers. This combination is responsible for the reduction of Nitrogen volatilization loss, allowing more agronomic efficiency for farmers and contributing to the reduction of global warming impacts caused by Nitrogen fertilizers manufacturing and application.
Get ISO 9001 and ISO 14001 certified:
Verde AgriTech Plc’s Brazilian subsidiaries, Verde Fertilizantes LTDA and FVS Mineração LTDA, were ISO 9001 and ISO 14001 certified in February 2022.
Obtain the Mining Concession for 2,500,000 tpy for Mine Pit 2:
Verde received the Mining Concession for extraction of up to 2,500,000 tpy for Mine Pit 2, which will supply raw material for our Plant 2, to boost our production in the coming years. Verde is now fully permitted to produce up to 2,833,000 tpy.
This is one of the milestones towards the target of 25,000,000 tonnes annual production, which represents a NPV per share of $50.94, based on the NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project filed by the Company on SEDAR in 2017 (“Old Pre-Feasibility),[1] which relied on a KCl price of US$250, instead of US$1,025 per tonne currently negotiated (as per the market intelligence firm Acerto Limited weekly price for March 17, 2022).
Initiate the construction of Plant 2, with the completion of the necessary infrastructure for its development, such as the plant’s power grid connection, access routes improvement and preliminary civil construction:
As disclosed in the press release published on November 16, 2020, the construction of Plant 2 was scheduled to begin in the second half of 2021. Groundbreaking took place in August 2021, and Plant 2 is expected to reach commercial production by Q3 2022.
Verde’s Key Objectives for 2022:
- Reach Plant 2’s commercial production by Q3 2022.
- Expand Plant 2’s operational capacity from 1,200,000 to 2,400,000 tpy by Q4 2022, raising Verde’s overall production capacity to 3,000,000 tpy.
- Upgrade local infrastructure to sustain Plant 2’s logistics with added capacity to enable a future Plant 3.
- Finish the New Pre-Feasibility Study (“PFS”), which is currently under elaboration. In addition to the potash market, the New PFS has the objective to assess sulfur and micronutrients’ potential market in Brazil, based on the technologies MicroS and 3D Alliance developed by the Company. The New PFS will revamp the information disclosed in the Old Pre-Feasibility Study. The New PFS will contemplate a scenario of total annual production of 50,000,000 tonnes of Verde’s Product, equivalent to 63% of the total Brazilian potash consumption in 2021.
- Launch a new technology in Q2 2022.
- Reach 100 cities with Cultivando Amor, Verde’s flagship social engagement program that in 2021 raised over R$270,000 for charities across 16 cities in Brazil. The program donates part of Verde’s sales proceeds to charities chosen by the Company’s clients in their municipalities.
Environmental
Verde’s production process is sustainable. The processing does not require tailings dams, nor does it generate any waste by products. In sum, the ore recovery rate is 100%.
The mined area is mainly composed of degraded pasturelands that, once mined, Verde transforms into tropical forest. To that end, the Company planted 4,300 trees in 2019, 5,000 trees in 2020, and 9,888 trees in 2021. All planted species are originally native to the region, many of which are today deemed endangered species.
Selected Annual Financial Information
The table below summarizes Q4 and FY 2021 financial results compared to Q4 and FY 2021:
| All amounts in CAD $’000 |
Q4 2021 |
Q4 2020 |
FY 2021 |
FY 2020 |
| Tonnes sold ‘000 |
134 |
57 |
400 |
244 |
| Revenue per tonne sold $ |
81 |
39 |
69 |
38 |
| Production cost per tonne sold $ |
(20) |
(16) |
(18) |
(14) |
| Gross Profit per tonne sold $ |
61 |
23 |
51 |
23 |
| Gross Margin |
75% |
59% |
74% |
62% |
|
|
|
|
|
| Revenue |
10,851 |
2,209 |
27,709 |
9,167 |
| Production costs |
(2,691) |
(912) |
(7,131) |
(3,515) |
| Gross Profit |
8,160 |
1,297 |
20,578 |
5,652 |
| Gross Margin |
75% |
59% |
74% |
62% |
| Sales and product delivery freight expenses |
(4,463) |
(673) |
(11,252) |
(2,270) |
| General and administrative expenses |
(1,245) |
(588) |
(2,876) |
(1,791) |
| Operating Profit before non-cash events |
2,452 |
36 |
6,450 |
1,591 |
| Share Based and Bonus Payments (Non-Cash Event) (1) |
(23) |
(18) |
(1,551) |
(425) |
| Depreciation and Amortisation (1) |
(18) |
(4) |
(53) |
(23) |
| Profit on disposal of plant and equipment (1) |
– |
– |
9 |
(17) |
| Operating Profit after non–cash events |
2,411 |
14 |
4,855 |
1,126 |
| Income tax (2) |
(360) |
(79) |
(931) |
(330) |
| Interest Income/Expense |
(173) |
(127) |
(402) |
(246) |
| Net Profit |
1,878 |
(192) |
3,522 |
550 |
(1) – Included in General and Administrative expenses in financial statements
(2) – Please see Income Tax notes.
Q4 and FY 2021 compared with Q4 and FY 2020
Q4 2021
The Company generated a net profit of $1,878,000 for Q4 2021, an increase of $2,070,000 compared to a net loss of $192,000 for Q4 2020. The profit per share was $0.037 for Q4 2021, compared to loss per share of $0.003 for Q4 2020.
FY 2021
The Company generated a net profit of $3,522,000 in FY 2021, an increase of 540% compared to a net profit of $550,000 in FY 2021. The increase was due to the continued growth of the Company. The earnings per share was $0.070 for FY 2021, compared to $0.012 for FY 2020.
Product Sales
Q4 2021
Sales by volume increased by 137% in Q4 2021, to 134,350 tonnes sold compared to 56,585 tonnes sold in Q4 2020.
FY 2021
Sales increased by 64% in FY 2021, to 400,133 tonnes sold, compared to 243,707 tonnes FY 2020, as the Company’s Product continues to grow in the market.
Revenue
Q4 2021
Revenue from sales increased by 391% in Q4 2021, to $10,851,000 from the sale of 134,350 tonnes of the Product, at $81 per tonne sold; compared to $2,209,000 in Q4 2020 from the sale of 56,585 tonnes of the Product, at $39 per tonne sold.
Revenue per tonne excluding freight expenses (FOB price) improved by 24% in Q4 2021, to $53 compared to $31 in Q4 2020.
The KCl price increased by 165% in Q4 2021, compared to Q4 2020. Verde did not, however, see a proportional increase in its pricing for Q4 2021 sales because it had sold most of its Q4 production earlier in the year.
Despite the 7% Brazilian Real devaluation against the Canadian Dollar, revenue per tonne in Q4 2021 was higher than Q4 2020 mainly due to:
- Product volume sold as CIF (Cost Insurance and Freight) increased from 23% of total sales in Q4 2020 to 63% in Q4 2021.
- Potassium Chloride CIF (Minas Gerais) price increased from US$315-US$320 per tonne in Q4 2020 to US$760-850 per tonne in Q4 2021 (as reported by Acerto Limited, a market intelligence firm).
- BAKS® has a higher sales price per tonne than K Forte®. BAKS® was launched in December 2020 and in Q4 2021 it accounted for 7,2% of the total volume sold by the Company.
FY 2021
Revenue from sales increased by 202% in FY 2021, to $27,709,000 from the sale of 400,133 tonnes of the Product, at $69 per tonne sold; compared to $9,167,000 in FY 2020 from the sale of 243,707 tonnes of the Product, at $38 per tonne sold.
Revenue per tonne excluding freight expenses (FOB price) improved by 42% in FY 2021, to $47 compared to $33 in FY 2020.
The KCl price increased by 136% in FY 2021, compared to FY 2020. Verde did not, however, see a proportional average increase in its pricing for FY 2021 sales because it had sold most of its Q4 production earlier in the year.
Despite the 12% Brazilian Real devaluation against the Canadian Dollar, revenue per tonne in FY 2021 was higher than FY 2020 mainly due to:
- Product volume sold as CIF (Cost Insurance and Freight) increased from 13% of total sales in FY 2020 to 52% in FY 2021.
- Potassium Chloride CIF (Minas Gerais) price increased from US$280-US$360 per tonne in FY 2020 to US$315-850 per tonne in FY 2021 (as reported by Acerto Limited).
- BAKS® has a higher sales price per tonne than K Forte®. BAKS® was launched in December 2020 and in FY 2021 it accounted for 9.8% of the total volume sold by the Company.
Production costs
Production costs include all direct costs from mining, processing, and the addition of the other nutrients to the Product, such as Sulfur and Boron. They also include the logistics costs from the mine to the factory and related salaries.
Q4 2021
Production costs increased by 195% in Q4 2021, to $2,691,000 compared to $912,000 in Q4 2020. This was due to a 135% increase in volume sold, from 57,000 tonnes in Q4 2020 to 134,000 tonnes in Q4 2021, and due to local inflation. Cost per tonne increased by 24% in Q4 2021, to $20 compared to $16 in Q4 2020. This increase was due in large part to higher fuel prices, which increased by 45% in Q4 2021 compared to Q4 2020.
FY 2021
Production costs increased by 103% in FY 2021, to $7,131,000 compared to $3,515,000 in FY 2020. This was due to a 64% increase in volume sold, from 244,000 tonnes in FY 2020 to 400,000 tonnes in FY 2021, and due to local inflation. Cost per tonne increased by 24% in FY 2021, to $18 compared to $14 in FY 2020. This increase was due in large part to higher fuel prices, which increased by 37% in FY 2021 compared to FY 2020. The production costs increase are also due to the larger production of BAKS®, which has a higher cost per tonne because its feedstock includes other nutrients that Verde purchases from third parties.
Sales Expenses
| CAD $’000 |
3 months ended
Dec 31, 2021 |
3 months ended
Dec 31, 2020 |
12 months ended
Dec 31, 2021 |
12 months ended
Dec 31, 2020 |
| Sales and marketing expenses |
(578) |
(179) |
(1,818) |
(975) |
| Fees paid to independent sales agents |
(203) |
(16) |
(464) |
(162) |
| Product delivery freight expenses |
(3,682) |
(478) |
(8,970) |
(1,133) |
| Total |
(4,463) |
(673) |
(11,252) |
(2,270) |
Sales and marketing expenses
Sales and marketing expenses include employees’ salaries, car rentals, travel within Brazil, hotel expenses, customer relationship management (CRM) software licenses, and the promotion of the Product in marketing events.
Q4 2021
Expenses increased by 222% in Q4 2021, to $577,000 compared to $179,000 in Q4 2020, mainly due to a further expansion of Verde’s sales and marketing team, with professional headcount increasing from an average of 35 in Q4 2020 to 54 in Q4 2021. This increase is in line with the Company’s accelerated growth strategy.
FY 2021
Expenses increased by 86% in FY 2021, with a total of $1,818,000, compared to $975,000 in FY 2020, also mainly due to a further expansion of Verde’s sales and marketing team, with professional headcount increasing from an average of 32 in FY 2020 to 46 in FY 2021. Such as for Q4 2021, this increase is in line with the Company’s accelerated growth strategy.
Fees paid to independent sales agents
As part of Verde’s marketing and sales strategy, the Company pays out commissions to its independent sales agents.
Q4 2021
Fees paid to sales independent agents increased by 1150% in Q4 2021, to $203,000 compared to $16,000 in Q4 2020, as a direct result of increased sales.
FY 2021
Fees paid to sales independent agents increased by 185% in FY 2021, to $464,000 compared to $162,000 in FY 2020, for the same reason as in the quarter.
Product delivery freight expenses
Q4 2021
Product delivery freight expenses increased by 671% in Q4 2021, to $3,682,000 compared to $478,000 in Q4 2020, as the Company has significantly increased the volume sold as CIF (Cost Insurance and Freight), up from 23% of total sales in Q4 2020 to 63% in Q4 2021 and due to higher fuel prices, which increased 45% in Q4 2021 compared to Q4 2020.
FY 2021
Expenses increased by 692% in FY 2021, to $8,970,000 compared to $1,133,000 in FY 2020, as the Company has significantly increased the volume sold as CIF (Cost Insurance and Freight), up from 13% of total sales in FY 2020 to 52% in FY 2021 and due to higher fuel prices, which increased 37% in FY 2021 compared to FY 2020.
General and Administrative Expenses
| CAD $’000 |
3 months ended
Dec 31, 2021 |
3 months ended
Dec 31, 2020 |
12 months ended
Dec 31, 2021 |
12 months ended
Dec 31, 2020 |
| General administrative expenses |
(612) |
(494) |
(1,621) |
(1,149) |
| Legal, professional, consultancy and audit costs |
(516) |
(75) |
(915) |
(520) |
| IT/Software expenses |
(103) |
(23) |
(307) |
(98) |
| Taxes and licenses fees |
(14) |
4 |
(33) |
(24) |
| Total |
(1,245) |
(588) |
(2,876) |
(1,791) |
General administrative expenses
These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of executive and administrative staff in Brazil.
Q4 2021
Expenses increased by 24% in Q4 2021, to $612,000 compared to $494,000 in Q4 2020, as they include additional administrative employees, with professional headcount increasing from an average of 20 in Q4 2020 to 51 in Q4 2021 to help support the Company’s growth and incentive compensation.
FY 2021
Expenses increased by 41% in FY 2021, to $1,621,000 compared to $1,149,000 in FY 2020, as they include additional administrative employees, with professional headcount increasing from an average of 18 in FY 2020 to 43 in FY 2021.
Legal, professional, consultancy and audit costs
Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fees and regulatory consultants.
Q4 2021
Expenses increased by 584% in Q4 2021, to $516,000 compared to $75,000 in Q4 2020. The increase is largely due to a $347,000 provision in Q4 2021, set aside for a contested claim made by a consultant retained by the Company in 2012. The consultancy services were for an environmental report, the quality of which was disputed by Verde and payments withheld. A court decision in Q4 2021 was partially favourable to the consultant and requested an adjusted payment, the Company has appealed the decision.
FY 2021
Expenses increased by 76% in FY 2021, to $915,000 compared to $520,000 in FY 2020, mainly due to the provision in Q4 2021.
IT/Software expenses
IT/Software expenses include software licenses such as Microsoft Office, Customer Relationship Management (CRM) software and enterprise resource planning (ERP).
Q4 2021
Expenses increased by 350% in Q4 2021, to $103,000 compared to $23,000 in Q4 2020.
FY 2021
Expenses increased by 213% in FY 2021, to $307,000 compared to $98,000 in FY 2020, due to an increase in third party computing services and number of software licenses used by the Company in Brazil.
Taxes and licences
Taxes and licence expenses include general taxes, product branding and licence costs.
Q4 2021
Expenses increased by 450% in Q4 2021, to $14,000 compared to a credit of $4,000 in Q4 2020. During Q4 2020, an amount of $15,000 was credited to licence costs for reversal expenses which should have been capitalised in Q1 and Q3 2020.
FY 2021
Expenses increased by 34% in FY 2021, to $33,000 compared to $24,000 in FY 2020.
Share Based and Bonus Payments (Non-Cash Event)
These costs represent the expense associated with stock options granted to employees and directors and non-cash bonuses paid to key management.
Q4 2021
Share Based Payments costs increased by 25% in Q4 2021, to $23,000 compared to $18,000 in Q4 2020, as they represent the expense associated with stock options granted to employees as part of the Company’s long-term incentive programme in Q4 2021. These are measured under the Black-Scholes Model.
FY 2021
Share Based Payments costs increased by 265% in FY 2021, to $1,551,000 compared to $425,000 in FY 2020.
Income tax
Brazilian corporations are subject to income taxes (IRPJ and CSLL) using an ‘Actual Profits’ method (i.e. APM – Lucro Real), which is based on taxable income (i.e. earnings before taxes or EBT), adjusted by certain additions and exclusions as determined by the legislation. The Actual Profit can be calculated annually or quarterly – for the annual calculation, the tax authorities collect anticipations during the year, as the taxpayer is obliged to calculate the income tax monthly.
Subject to certain restrictions (i.e. where gross income does not exceed R$78 million and depending on the activity), Brazilian taxpayers have the option to calculate IRPJ and CSLL using a ‘Assumed Profits’ method (i.e. PPM – Lucro Presumido). Under the PPM, the income is calculated on a quarterly basis on an amount equal to different percentages of gross revenue (i.e. based on the entity’s activities) and adjusted as determined by the prevailing legislation.
The Brazil subsidiaries are currently under ‘Assumed Profits’ method, which is the most efficient method at this time. Under ‘Assumed Profits’ method, it is not possible to utilise prior period losses to reduce income tax. When the Company switches to “Realized Profits” method, these losses can be utilised.
Cultivando Amor
Cultivando Amor is an initiative from Verde, in which there is a partner charity institution for each of the project’s member cities. For each hectare in the region that is cultivated with BAKS® or K Forte®, Verde donates part of the sales’ profits to the partner institution of that city. The initiative has the support of the cities’ Rural Union of Farmers (Sindicato Dos Produtores Rurais).
In 2020, Cultivando Amor’s pilot project was conducted in the city of Patrocínio, where the program’s funds contributed to the Cancer Hospital of Patrocínio, a regional reference in cancer treatment.
In 2021, Verde raised over R$270,000 for charities across 16 cities in Brazil.
Cultivando Amor’s goal for 2022 is to magnify its impacts to 100 cities.
Q4 and FY 2021 Results Conference Call
The Company will host a conference call on Wednesday, April 06, 2022, at 09:00 am Eastern Time, to discuss Q4 and FY 2021 results and provide an update. Subscribe using the link below and receive the conference details by email.
| Date: |
Wednesday, April 06, 2022 |
| Time: |
09:00 am Eastern Time |
| Subscription link: |
|
The questions can be submitted in advance through the following link up to 48 hours before the conference call:
The Company’s full year and fourth quarter financial statements and related notes for the period ended December 31, 2021 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
About Verde AgriTech
Verde is an agricultural technology company that produces fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.
Corporate Presentation
For further information on the Company, please view shareholders’ deck: https://verde.docsend.com/view/vidm2xesz92yhyht
Investors Newsletter
Subscribe to receive the Company’s updates at:
http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at:
Cautionary Language and Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.
For additional information please contact:
Cristiano Veloso, President, Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
[1] Based on $2.607 billion NPV after tax divided by 50,398,619 shares outstanding as of March 21, 2022. Estimated Net Present Value after tax of US$1.99 billion, with 8% discount rate and Internal Rate of Return of 287% (see NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, MG, Brazil, page 207). Currency exchange: US$1.00 = C$1.29.
(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in Q3 2021: C$1.00 = R$4.26)
Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the third quarter, ended on September 30, 2021 (“Q3 2021”).
Q3 2021 Financials
- Revenue increased by 169%, to $10,651,000 compared to $3,956,000 in the third quarter of 2020 (“Q3 2020”).
- Revenue in Brazilian Real (“R$”) increased by 206%, to R$45,409,000 compared to R$14,815,000 in Q3 2020.
- Gross margin increased to 77% in Q3 2021, compared to 67% in Q3 2020.
- Operating profit before non-cash events increased by 124%, to $3,665,000 compared to $1,635,000 in Q3 2020.
- Trade and other receivables increased by 141%, to $8,238,000 compared to $3,415,000 in Q3 2020.
- Sales by volume increased by 45%, to 153,674 tonnes sold compared to 105,769 tonnes sold in Q3 2020.
- Net profit increased by 192% in Q3 2021, to $3,183,000, compared to $1,090,000 in Q3 2020.
“Our hard work over the years is yielding consistent growth since production started in 2017. In Q3 2021 the effort was relentless as we sought to meet our heightened target, which was achieved thanks to the high quality and commitment of our team. We will endeavour to maintain an exponential growth expansion for the foreseeable future”, said Cristiano Veloso, Verde’s Founder and CEO.
Subsequent Events
- In October 2021, the Company has secured $3.75 million (R$16 million) in loan agreements to fully cover the capital expenditure for the construction of Plant 2. The first $1.17 million (R$5 million) was released to the Company by Santander. The remaining $2.58 million (R$11 million) was approved in the same month by Santander and Bradesco, to be drawn down according to the project requirements. The total construction cost of Plant 2 is expected to be $5.16 million (R$22 million) with $1.41 million (R$6 million) invested through internally generated cashflow.
“From September onwards, market demand has outstripped Plant 1’s operational capacity. Therefore, after having invested over C$66 million to reach our current rate of production, we are proud to finance the tripling of current capacity based on debt and cashflow alone. Many shareholders have continuously supported Verde over the years – it is therefore gratifying to reciprocate by growing through a shareholder-friendly dilution-free strategy”, declared Mr. Veloso.
2021 Guidance
The Company is pleased to announce another increase in its 2021 guidance. The new target is set at R$110 million of revenue for 2021, which would represent an increase of 120% to the Company’s original guidance of R$50 million. If achieved, this new target will represent a 212% growth Year-on-Year (“YoY”).
Selected Annual Financial Information
The table below summarizes Q3 2021 financial results compared to Q3 2020 and provides information about 2021 and 2020 year-to-date (“YTD”). All amounts in CAD $’000.
| CAD $’000 |
Q3 2021 |
Q3 2020 |
YTD 2021 |
YTD 2020 |
| Tonnes sold ‘000 |
154 |
106 |
266 |
187 |
| Revenue per tonne sold $ |
69 |
37 |
63 |
37 |
| Production cost per tonne sold $ |
(16) |
(12) |
(17) |
(14) |
| Gross Profit per tonne sold $ |
53 |
25 |
47 |
23 |
| Gross Margin |
77% |
67% |
74% |
63% |
|
|
|
|
|
| Revenue |
10,651 |
3,956 |
16,858 |
6,957 |
| Production costs |
(2,452) |
(1,316) |
(4,440) |
(2,602) |
| Gross Profit |
8,199 |
2,640 |
12,418 |
4,355 |
| Gross Margin |
77% |
67% |
74% |
63% |
| Sales and product delivery freight expenses |
(4,022) |
(570) |
(6,789) |
(1,596) |
| General and administrative expenses |
(512) |
(435) |
(1,631) |
(1,203) |
| Operating Profit before non-cash events |
3,665 |
1,635 |
3,998 |
1,556 |
| Share Based and Bonus Payments (Non-Cash Event) (1) |
(13) |
(339) |
(1,528) |
(407) |
| Depreciation and Amortisation |
(20) |
(3) |
(35) |
(18) |
| Profit on disposal of plant and equipment |
– |
(18) |
9 |
(18) |
| Operating Profit after non–cash events |
3,632 |
1,275 |
2,444 |
1,113 |
| Income tax |
(352) |
(136) |
(571) |
(252) |
| Interest Income/Expense |
(98) |
(49) |
(229) |
(119) |
| Net Profit |
3,182 |
1,090 |
1,644 |
742 |
(1) – Included in General and Administrative expenses in financial statements.
Q3 2021 compared with Q3 2020
For Q3 2021 the Company generated a net profit of $3,182,000, an increase of $2,093,000 compared to Q3 2020. The earnings per share was $0.06, compared to $0.02 for Q3 2020.
Product Sales
In Q3 2021, the Company sold 153,674 tonnes, an increase of 45% in comparison to Q3 2020. BAKS® accounted for approximately 10% of Verde’s sales in Q3 2021.
Revenue
Revenue from sales for Q3 2021 was $10,651,000 from the sale of 153,674 tonnes of the Product, at $69 per tonne sold. Despite the 14% Brazilian Real devaluation against the Canadian Dollar, revenue per tonne was higher than Q3 2020 ($37 per tonne sold) mainly due to three factors:
- Product volume sold as CIF (Cost Insurance and Freight) increased from 14% of total sales in Q3 2020 to 50% in Q3 2021.
- Potassium Chloride CIF (Minas Gerais) price increased from US$290-US$310 per tonne in Q3 2020 to US$515-790 per tonne in Q3 2021 (as reported by Acerto Limited, a market intelligence firm).
- BAKS has a higher sales price per tonne than the Product, it was launched in Q4 2020 and in Q3 2021 it accounted for 10.5% of the total volume sold.
Production costs
Production costs in R$ include all direct costs from mining, processing, and the addition of the other nutrients such as Sulfur and Boron, the logistics from the mine to the factory and related salaries. Production costs for Q3 2021 were $2,452,000, an increase of $1,136,000 compared to Q3 2020. Cost per tonne for the quarter was $16 compared to $12 for the same period in 2020. This increase was due in large part to higher fuel prices, which increased 80% in Q3 2021 compared to Q3 2020, and due to the production of BAKS, which has a higher cost per tonne because its feedstock includes other nutrients that Verde purchases from third parties.
Sales Expenses
| CAD $’000 |
Q3 2021 |
Q3 2020 |
YTD 2021 |
YTD 2020 |
| Sales and marketing expenses |
(601) |
(294) |
(1,241) |
(796) |
| Fees paid to independent sales agents |
(188) |
(12) |
(260) |
(145) |
| Product delivery freight expenses |
(3,233) |
(264) |
(5,288) |
(655) |
| Total |
(4,022) |
(570) |
(6,789) |
(1,596) |
Sales and marketing expenses
Sales and marketing expenses include employees’ salaries, car rentals, travel within Brazil, hotel expenses, customer relationship management (CRM) software licenses, and the promotion of the Product in marketing events. Expenses increased by $483,000 in Q3 2021 compared to Q3 2020 mainly due to a further expansion of Verde’s sales and marketing team, with professional headcount increasing from 32 in Q3 2020 to 57 in Q3 2021. This increase is in line with the Company’s accelerated growth strategy. The Company’s sales and marketing team had 50 employees in Q2 2021.
Fees paid to independent sales agents
As part of Verde’s marketing and sales strategy, the Company pays out commissions to its independent sales agents. Fees paid to sales independent agents increased by $176,000 in Q3 2021 compared to Q3 2020. This was mainly due to an overestimated provision of $80,000 for Q1 and Q2 2020, which left a surplus that was therefore deducted from the Q3 2020 costs. Taking into account the surplus, the expenses increased by $96,000 for Q3 2021, due to increased sales success.
Product delivery freight expenses
Product delivery freight expenses were $2,969,000 higher in Q3 2021 compared to Q3 2020 as the Company has significantly increased the volume sold as CIF (Cost Insurance and Freight), up from 14% of total sales in 2020 to 50% in 2021 and due to higher fuel prices, which increased 80% in Q32021 compared to Q3 2020.
General and Administrative Expenses
| CAD $’000 |
Q3 2021 |
Q3 2020 |
YTD 2021 |
YTD 2020 |
| General administrative expenses |
(291) |
(240) |
(1,009) |
(656) |
| Legal, professional, consultancy and audit costs |
(134) |
(160) |
(399) |
(444) |
| IT/Software expenses |
(82) |
(26) |
(204) |
(75) |
| Taxes and licenses fees |
(5) |
(9) |
(19) |
(28) |
| Total |
(512) |
(435) |
(1,631) |
(1,203) |
General administrative expenses
These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of executive and administrative staff in Brazil. The costs have increased by $51,000 in Q3 2021 compared to Q3 2020 as they include an additional 36 administrative employees, with professional headcount increasing from 20 in Q3 2020 to 56 in Q3 2021 to support the Company’s growth and due to incentive compensation. The Company had 47 administrative employees in Q2 2021.
Legal, professional, consultancy and audit costs
Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fees and regulatory consultants. The costs in Q3 2021 are $26,000 lower than Q3 2020 mainly due to audit cost reduction and Brazilian Real devaluation against Canadian dollar.
IT/Software expenses
IT/Software expenses include software licenses such as Microsoft Office, CRM and enterprise resource planning (ERP). In Q3 2021 expenses were $82,000, an increase of $56,000 on Q3 2020 due to an increase in the number of software licenses used by the Company.
Taxes and licences
Taxes and licence expenses include general taxes, product branding and licence costs. In Q3 2021, expenses were $5,000 compared to $9,000 in Q3 2020.
Share Based and Bonus Payments (Non-Cash Event)
These costs represent the expense associated with stock options granted to employees and directors and non-cash bonuses paid to key management.
Share Based Payments costs in Q3 2021 represent the expense associated with stock options granted to employees as part of the Company’s long-term incentive programme. These are measured under the Black-Scholes Model.
Q3 2021 Results Conference Call
The Company will host a conference call on Wednesday, November 24, 2021 at 09:00 am Eastern Time, to discuss Q3 2021 results and provide an update. Subscribe using the link below and receive the conference details by email.
The questions can be submitted in advance through the following link: https://bit.ly/Q3-2021-QuestionForm
The Company’s first quarter financial statements and related notes for the period September 30, 2021
are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
Investors Newsletter
Subscribe to receive the Company’s monthly updates at:
http://cloud.marketing.verde.ag/InvestorsSubscription
The most recent edition of the newsletter can be accessed at: https://bit.ly/InvestorNL-October2021
About Verde AgriTech
Verde is an agricultural technology company that develops and produces fertilizers. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable for farmers. We work to improve the health of all people and the planet.
Cautionary Language and Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in Q2 2021: C$1.00 = R$4.32) Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the second quarter, ended on June 30, 2021 (“Q2 2021”), and the upwards revision of its target revenue for 2021.
Q2 2021 Financials
- Revenue increased by 116%, to $5,376,000 compared to $2,492,000 in the second quarter of 2020 (“Q2 2020”).
- Revenue in Brazilian Real (“R$”) increased by 159%, to R$23,215,000 compared to R$8,965,000 in Q2 2020.
- Gross margin increased to 72% in Q2 2021, compared to 62% in Q2 2020.
- Operating profit before non-cash events increased by 109%, to $1,220,000 compared to $584,000 in Q2 2020.
- Trade and other receivables increased 259%, to $6,020,000 compared to $1,675,000 in Q2 2020.
- Sales by volume increased by 35%, to 96,233 tonnes sold compared to 71,183 tonnes sold in Q2 2020.
- Verde recorded a net profit of $79,000, compared to a net profit of $444,000 in Q2 2020. A $887,000 non-cash charge from Verde’s long-term incentive programme for 58 employees was the main reason for the reduction in net profit for the period.
- Cash held by the Company increased by 214%, to $1,908,000, compared to $ 607,000 in Q2 2020.
“We are proud to see that Verde achieved triple-digit growth in revenue for the second quarter, especially in light of the considerable improvement in gross margin. This consistent growth in the first half of the year made it possible for us to, once more, increase our revenue target for 2021”, said Cristiano Veloso, Verde’s Founder.
2021 Guidance
Originally, the Company’s target for 2021 was to achieve R$50 million revenue, as announced in the press release disclosed on November 15, 2020. On May 17, 2021, however, Verde announced a 10% increase in its guidance, aiming for a new a revenue target of R$55 million for 2021. In light of the results of Q2, the Company is pleased to announce a second 10% increase in its 2021 guidance, now aiming for a total revenue target of R$60.5 million, which if achieved would represent a 72% growth Year-on-Year (“YoY”). “The pride we have in the Company’s achievements to date have only boosted our efforts to continue the hard work to meet our latest guidance. Beyond the next two quarters, the Verde team is also heavily engaged with the Company’s expansion plans to increase our production capacity for the year of 2022”, completed Mr. Veloso.
Selected Annual Financial Information
The table below summarizes Q2 2021 financial results compared to Q2 2020 and provides information about 2021 and 2020 year-to-date (“YTD”). All amounts in CAD $’000.
| CAD $’000 |
Q2 2021 |
Q2 2020 |
YTD 2021 |
YTD 2020 |
| Tonnes sold ‘000 |
96 |
71 |
113 |
81 |
| Revenue per tonne sold $ |
56 |
35 |
55 |
37 |
| Production cost per tonne sold $ |
(16) |
(13) |
(18) |
(16) |
| Gross Profit per tonne sold $ |
40 |
22 |
37 |
21 |
| Gross Margin |
72% |
62% |
68% |
57% |
| |
|
|
|
|
| Revenue |
5,376 |
2,492 |
6,207 |
3,001 |
| Production costs |
(1,498) |
(955) |
(1,988) |
(1,286) |
| Gross Profit |
3,878 |
1,537 |
4,219 |
1,715 |
| Gross Margin |
72% |
62% |
68% |
57% |
| Sales and product delivery freight expenses |
(2,236) |
(604) |
(2,767) |
(1,026) |
| General and administrative expenses |
(422) |
(349) |
(1,119) |
(768) |
| Operating Profit/(Loss) before non-cash events |
1,220 |
584 |
333 |
(79) |
| Share Based Payments (Non-Cash Event)1,2 |
(887) |
(28) |
(905) |
(68) |
| Depreciation and Amortisation2 |
(10) |
(3) |
(16) |
(15) |
| Profit on disposal of plant and equipment 2 |
– |
– |
9 |
– |
| Operating Profit/(Loss) after non-cash events |
323 |
553 |
(579) |
(162) |
| Corporation tax3 |
(188) |
(98) |
(219) |
(116) |
| Interest Income/Expense |
(56) |
(11) |
(131) |
(70) |
| Net Profit / (Loss) |
79 |
444 |
(929) |
(348) |
1 – One time, non-cash charge from Verde’s long-term incentive programme regarding the vesting of stock options granted to 58 employees. 2 – Included in General and Administrative expenses in the Financial Statements. 3 – For further details please refer to Q2 2021 Management’s Discussion and Analysis.
Q2 2021 compared with Q2 2020
For Q2 2021 the Company generated a net profit of $79,000, a decrease of $365,000 compared to Q2 2020. The earnings per share was $0.001, compared to $0.009 for Q2 2020. This reduction was due to a $887,000 non-cash charge from a long-term incentive programme regarding the vesting of stock options granted to 58 employees.
Product Sales
In Q2 2021, the Company sold 96,233 tonnes, an increase of 35% in comparison to Q2 2020. BAKS® accounted for approximately 13% of Verde’s sales in Q2 2021.
Revenue
Revenue from sales for Q2 2021 was $5,376,000 from the sale of 96,233 tonnes of the Product, at $56 per tonne sold. Despite the 20% Brazilian Real devaluation against the Canadian Dollar, revenue per tonne was higher than Q2 2020 ($35 per tonne sold) mainly due to three factors:
- Product volume sold as CIF (Cost Insurance and Freight) increased from 6% of total sales in Q2 2020 to 43% in Q2 2021.
- Potassium Chloride CIF (Minas Gerais) price increased from US$287-US$303 per tonne in Q2 2020 to US$395-535 per tonne in Q2 2021 (as per Acerto Limited report).
- BAKS® has a higher sales price per tonne than the Product, it was launched on Q4 2020 and in Q2 2021 it has accounted for 13% of the total volume sold.
Production costs
Production costs include all direct costs from mining, processing, and the addition of the other nutrients such as Sulfur and Boron, logistics from the mine to the factory and supply chain salaries, which are paid in R$. Production costs for Q2 2021 were $1,498,000, an increase of $543,000 compared to Q2 2020. Cost per tonne for the quarter was $16 compared to $13 for the same period in 2020. This increase was due in large part to higher fuel prices, which increased 45% in Q2 2021 compared to Q2 2020, and due to the production of BAKS, which has a higher cost per tonne due to the addition of other nutrients to the Product.
Sales Expenses
| CAD $’000 |
Q2 2021 |
Q2 2020 |
YTD 2021 |
YTD 2020 |
| Sales and marketing expenses |
(410) |
(369) |
(712) |
(634) |
| Product delivery freight expenses |
(1,826) |
(235) |
(2,055) |
(392) |
| Total |
(2,236) |
(604) |
(2,767) |
(1,026) |
General and Administrative Expenses
| CAD $’000 |
Q2 2021 |
Q2 2020 |
YTD 2021 |
YTD 2020 |
| General administrative expenses |
(240) |
(197) |
(718) |
(416) |
| Legal, professional, consultancy and audit costs |
(106) |
(121) |
(265) |
(284) |
| IT/Software expenses |
(70) |
(27) |
(122) |
(49) |
| Taxes and licenses fees |
(6) |
(4) |
(14) |
(19) |
| Total |
(422) |
(349) |
(1,119) |
(768) |
General administrative expenses
These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of the executives and administrative staff in Brazil. The costs have increased by $43,000 in Q2 2021 compared to Q2 2020 as they include an additional 29 administrative employees, with professional headcount increasing from 18 in Q2 2020 to 47 in Q2 2021 to support the Company’s growth and due to incentive compensation. The Company had 26 administrative employees in Q1 2021.
Legal, professional, consultancy and audit costs
Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fee and regulatory consultants. The costs in Q2 2021 are $15,000 lower than Q2 2020 mainly due to audit cost reduction and Brazilian Real devaluation against Canadian dollar.
IT/Software expenses
IT/Software expenses include software licenses such as Microsoft Office, CRM and enterprise resource planning (ERP). In Q2 2021 expenses were $70,000, an increase of $43,000 on Q2 2020 due to an increase in the number of the software licenses used by the Company.
Taxes and licences
Taxes and licence expenses include general taxes, product branding and licence costs. In Q2 2021, expenses were $6,000 compared to $4,000 in Q2 2020.
Share Based Payments (Non-Cash Event)
The directors have not received any shares in lieu of compensation since Q3 2020. Share Based Payments costs in Q2 2021 represent the expense associated with stock options granted to employees as part of the Company’s long-term incentive programme. These are measured under the Black-Scholes Model.
Capital Expenditure
In Q2 2021, the Company invested $515,000 in infrastructure improvements: the grounds of Plant 1 were paved to provide greater operational efficiency; access routes to the mine pits have been enhanced; project developments for Plant 2 were further advanced.
Q2 2021 Results Conference Call
The Company will host a conference call on Wednesday, August 25, 2021 at 11:00 am Eastern Time (4:00 pm Greenwich Mean Time), to discuss Q2 2021 results and provide an update. Subscribe using the link below and receive the conference details by email.
| Date: |
Wednesday, August 25, 2021 |
| Time: |
11:00 am Eastern Time (4:00 pm Greenwich Mean Time) |
| Subscription link: |
|
The Company’s first quarter financial statements and related notes for the period March 31, 2021 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
Investors Newsletter
Subscribe to receive the Company’s monthly updates at: http://cloud.marketing.verde.ag/InvestorsSubscription The last edition of the newsletter can be accessed at: https://bit.ly/InvestorNL-July2021
About Verde AgriTech
Verde is an agricultural technology company that develops and produces fertilizers. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable for farmers. We work to improve the health of all people and the planet.
Cautionary Language and Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in Q1 2021: C$1.00 = R$4.33)
Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the first quarter, ended on March 31, 2021 (“Q1 2021”).
Q1 2021 Financials
- Sales increased by 63% with 16,558 tonnes sold, compared to 10,170 tonnes sold in the first quarter of 2020 (“Q1 2020”).
- The Company recognised revenue of $831,000, an increase of 63% compared to $510,000 in Q1 2020.
- Brazilian Real (“R$”) revenue increased by 113%, to R$3,599,000 compared to R$1,690,000 in Q1 2020.
- Gross margin increased to 41% in Q1 2021, compared to 35% in Q1 2020.
- In line with the Company’s expectation for Brazil’s rainy season typical of the years’ first quarter, Verde recorded a Q1 2021 net loss of $1,008,000, compared to a net loss of $792,000 in Q1 2020.
- Cash held by the Company increased by 150%, to a total of $2,021,000 in Q1 2021, compared to $806,000 in Q1 2020.
“We are excited with another strong first quarter, especially in light of the triple-digit revenue growth in local currency. We are confident 2021 will be another successful year in our fast-growth trajectory”, said Cristiano Veloso, Verde’s Founder.
2021 Guidance
The Company’s target for 2021 was to achieve R$50 million revenue, as announced in the press release disclosed on November 15, 2020. Verde is pleased to announce a 10% increase in its guidance, totalling a revenue target of R$55 million for 2021, which will represent a 56% growth YoY.
“If we continue to see strong sales in the following months above initial expectations, it is natural that the yearly guidance may be further increased over the next quarterly results”, completed Mr. Veloso.
Selected Annual Financial Information
The following table provides information about three months ended March 31, 2021 as compared to the three months ended March 31, 2020. All amounts in CAD $’000.
| C$’000 |
Q1 2021 |
Q1 2020 |
| Tonnes sold ‘000 |
17 |
10 |
| Revenue per tonne sold $ |
50 |
50 |
| Production cost per tonne sold $ |
(30) |
(32) |
| Gross Profit per tonne sold $ |
20 |
18 |
| Gross Margin |
41% |
35% |
|
|
|
| Revenue |
831 |
510 |
| Production costs |
(490) |
(332) |
| Gross Profit |
341 |
178 |
| Gross Margin |
41% |
35% |
| Sales and product delivery freight expenses |
(531) |
(422) |
| General and administrative expenses |
(697) |
(420) |
| Operating Profit/(Loss) before non-cash events |
(887) |
(664) |
| Share Based Payments (Non-Cash Event) * |
(19) |
(40) |
| Depreciation and Amortisation * |
(5) |
(12) |
| Profit on disposal of plant and equipment * |
9 |
– |
| Operating Profit/(Loss) after non–cash events |
(902) |
(716) |
| Corporation tax** |
(31) |
(18) |
| Interest Income/Expense |
(75) |
(58) |
| Net Profit / (Loss) |
(1,008) |
(792) |
* – Included in General and Administrative expenses in financial statements.
** For further details please refer to Q1 2021 Management’s Discussion and Analysis.
Q1 2021 compared with Q1 2020
For Q1 2021 the Company generated a net loss of $1,008,000, an increase of $216,000 compared to Q1 2020. The loss per share was $0.020, compared to $0.017 for Q1 2020. In line with Brazil’s rainy season typical of the years’ first quarter, sales are lower for Q1 and in 2021 Verde is making more investments than in 2020 in order to continue growing at an accelerated pace while upholding customer satisfaction.
Product Sales
In Q1 2021, the Group sold 16,558 tonnes, an increase of 63% in comparison to Q1 2020. BAKS® accounts for approximately 3.9% of Verde’s sales in Q1 2021, and accounts for 14% of Verde’s total sales orders for 2021 up to March 31, 2021.
Revenue
Revenue from sales for Q1 2021 was $831,000 from the sale of 16,558 tonnes of the Product, at $50 per tonne sold. Average revenue per tonne was consistent with Q1 2020 ($50 per tonne sold). The Product price is based on the current US$ Potassium Chloride price.
Production costs
Production costs include all direct costs from mining, processing, logistics from the mine to the factory and supply chain salaries, which are paid in R$. Production costs for Q1 2021 were $490,000, an increase of $158,000 compared to Q1 2020. Cost per tonne for the quarter was $30 compared to $32 for the same period in 2020. The reduction of 6% was due to the devaluation of the Brazilian Real against the Canadian Dollar in Q1 2021 as compared to Q1 2020.
Sales Expenses
| C$’000 |
Q1 2021 |
Q1 2020 |
| Sales and marketing expenses |
(302) |
(265) |
| Product delivery freight expenses |
(229) |
(157) |
| Total |
(531) |
(422) |
Sales and marketing expenses
Sales and marketing expenses include sales and marketing salaries, the promotion of the Product such as fees paid to sales agents, marketing events, car rentals, travel within Brazil, hotel expenses and Customer Relationship Management (CRM) Software licenses. Expenses increased by $37,000 in Q1 2021 compared to Q1 2020 mainly due to a further expansion of Verde’s sales and marketing team, with professional headcount increased from 29 in Q1 2020 to 43 in Q1 2021. This growth is in line with the Company’s accelerated growth strategy.
Product delivery freight expenses
Product delivery freight expenses were $72,000 higher in Q1 2021 compared to Q1 2020 as the Company has significantly increased the volume sold as CIF (Cost Insurance and Freight), from 3% of total sales in 2020 to 34% in 2021.
General and Administrative Expenses
| C$’000 |
Q1 2021 |
Q1 2020 |
| General administrative expenses |
(478) |
(220) |
| Legal, professional, consultancy and audit costs |
(159) |
(163) |
| IT/Software expenses |
(52) |
(22) |
| Taxes and licenses fees |
(8) |
(15) |
| Total |
(697) |
(420) |
General administrative expenses
These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of the executives and administrative staff in Brazil. The costs have increased by $259,000 in Q1 2021 compared to Q1 2020 as they include an additional 12 administrative employees, with professional headcount increasing from 14 in Q1 2020 to 26 in Q1 2021 to support the Company’s growth and due to incentive compensation.
Legal, professional, consultancy and audit costs
Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fee and regulatory consultants. The costs in Q1 2021 are comparable with Q1 2020.
IT/Software expenses
IT/Software expenses include software licenses such as Microsoft Office and enterprise resource planning (ERP). In Q1 2021 expenses were $52,000, an increase of $30,000 on Q1 2020 due to increased third party computing services provided in Brazil.
Taxes and licences
Taxes and licence expenses include general taxes, product branding and licence costs. In Q1 2021, expenses were $8,000 compared to $15,000 in Q1 2020.
Share Based Payments (Non-Cash Event)
These costs represent the expense associated with stock options granted to employees and directors.
In Q1 2021 expenses were $18,000, compared to $40,000 in Q1 2020. The decrease is a result of less options vesting in the period.
Q1 2021 Results Conference Call
The Company will host a conference call on Thursday, May 20, 2021 at 11:00 am Eastern Time (4:00 pm Greenwich Mean Time), to discuss Q1 2021 results and provide an update. Subscribe using the link below and receive the conference details by email.
The Company’s first quarter financial statements and related notes for the period March 31, 2021
are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
Technology Launch:
The Company will introduce a new technology to the market on June 02, 2021 and host a Q&A session on June 09, 2021 in order to provide further details about it. Subscribe using the link below and receive the conference details by email.
Investors Newsletter
Subscribe to receive the Company’s monthly updates at:
http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at: http://bit.ly/InvestorsNL-April2021
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
Cautionary Language and Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verde.ag
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
