Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) reported a year-over-year increase in revenue and sales volumes to third-party customers for the first quarter, which it said demonstrated consistent and growing demand for its fertilizer products.
The agricultural bioscience company, which is developing regenerative and sustainable fertilizer solutions, said that during the quarter its granulated fertilizer product being produced at its Beiseker facility in Alberta demonstrated strong pricing and margins compared to the blended product.
It believes this demonstrates the upside potential of an upgraded Beiseker facility that aims to produce and sell 20,000 to 25,000 metric tonnes of granulated fertilizer per year.
Replenish Nutrients expects to use a combination of internal cash flows, debt and equity, as required, to complete the Beiseker facility upgrade in the second half of this year.
“Although granulated fertilizer volumes were modest in the quarter, the company was pleased with the strong granulated pricing and margins and expects significant margin and cash flow improvements from higher granulated production rates and sales volumes out of Beiseker in the later half of the year,” it said in a statement.
“Until then, the company expects the blended fertilizer product margins to sufficiently support the day-to-day cash requirements of the business.”
For Q1, Replenish Nutrients reported revenue of $1.3 million, down from $2.5 million due to a large related party sale last year as third-party revenues and sales volumes increased.
Its gross profit was $0.2 million, up from $0.1 million in the year-ago quarter, attributed to stronger margins in the power segment from higher power pricing and increased margins on granulated fertilizer products, partially offset by lower margins on blended fertilizer products.
Its net loss was $1.6 million, compared to $0.3 million in the year-ago quarter.