Harvest Minerals Ltd (AIM:HMI, OTC:HMIFF), which owns the Arapuá fertiliser project in Brazil, has exceeded its guidance for 2022 after receiving sales orders of 172,000 tonnes for its organic, multi-nutrient fertiliser, KP Fértil.
In the same announcement, investors were told the company's invoiced sales for the full year increased by 79% to 150,422 tonnes, representing a compound annual growth rate of 83% over the last three years.
The strong sales performance has prompted the company to set a new sales guidance for 2023, targeting invoiced sales of 200,000 tonnes, which represents a 33% increase over the sales of 2022.
Its growth is driven by clients progressively recognising the benefits of using KP Fértil, including its quality and value, which has led to repeat and increasing orders as well as new clients, the company said.
To support the anticipated uplift in sales volumes and provide a more streamlined and efficient operation, the company expanded its product storage and drying area from a capacity of 30,000 tons to 60,000 tons. The expansion will be ‘fully captured’ in 2023.
Brian McMaster, chairman of Harvest, said: “Given the rate of our continued growth, we fast-tracked our expansion plans, including the development of our product storage and drying capacity area, and accordingly we are now ideally positioned to supply even more product to the rapidly growing market in 2023 and beyond.
“Our growth is due to a number of factors, notably, as clients progressively recognise the benefits of using KP Fértil, including its quality and value, we have seen repeat/increasing orders while adding new clients to our list at a faster pace.
“With a high rate of client retention, continued penetration of our product, and a very strong end to the year, we have high hopes for 2023."
In the opening exchanges, the shares were up almost 6% at 8.08p.