- Verde AgriTech (TSX:NPK) has reported strong financial results across the board for the year ending December 31, 2019
- Revenue increased by 344 per cent to C$6,029,000, compared to $1,358,000 in 2018
- Gross profit was up to $2,864,000, with gross margins up to 48 per cent
- Production also increased by 310 per cent to 122,035 tonnes, compared to 29,764 tonnes in 2018
- Verde AgriTech (NPK) is up 17.86 per cent to $0.33 per share, with a market cap of $13.17 million
Verde AgriTech (TSX:NPK) has reported strong financial results across the board for the year ending December 31, 2019.
The company is currently promoting sustainable and profitable agriculture through the development of its Brazil-based Cerrado Verde Project. The potassium-rich deposit facilitates the production of a variety of solutions, including crop nutrition, crop protection, and soil improvement.
Verde AgriTech’s product range is primarily built around agricultural fertilisers, specifically the Super Greensand fertiliser. The Super Greensand is commercialised in Brazil as K Forte.
Revenue for the 2019 year significantly increased by 344 per cent to C$6,029,000, compared to $1,358,000 in 2018.
Gross profit also increased from $291,000 in 2018 to $2,864,000. Gross margins were up to 48 per cent from 21 per cent.
Central to the spike in financial performance was the considerable 310 per cent increase in production and sales. The company sold 29,648 of the 29,764 tonnes that it produced in 2018. It successfully offloaded 119,809 of the 122,035 tonnes that it produced in 2019.
In addition, revenue per tonne was up to $50 from $45 in 2018, while production costs per tonne were down to $26 from $36.
Verde AgrTech’s President and CEO, Cristiano Veloso, is turning his attention to 2020, with a $10.6 million sales target.
“If successful, we will deliver a 76 per cent growth year-on-year and expect to generate our maiden net profit.
“We are working hard to deliver this result and are confident that every lesson learned in 2019 will help to achieve another year of significant growth,” he said.
The company will hold a conference call on April 8, 2020 at 11:30am EST. During the call, the company will discuss financial results and provide a corporate update.
Verde AgriTech (NPK) is up 17.86 per cent to $0.33 per share at 3:49pm EST.