Progressive Planet Solutions Inc (TSX-V:PLAN). has reported a sharp improvement in its gross margin for the first quarter ended July 31, 2022.
The company which manufactures agricultural, household and industrial products said its gross margin in the quarter was 27% compared to 13% in the prior quarter.
"We are delighted to announce our improved gross margin," stated Steve Harpur, CEO in a statement. "We have not relaxed our efforts to improve production efficiencies as we pursue a strategy of increased output per plant operator by building our fertilizer and cement production capacities in a standalone building at our premises in Kamloops, BC.”
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“We are continuing our strategy to convert waste mineral powders into regenerative fertilizers and low-carbon cements as mentioned in our news release on September 22, 2022. We are implementing this strategy by utilizing existing team members and equipment where possible. The first line is expected to be operational and producing regenerative fertilizer powders by October 17, 2022."
The company, whose pioneering technology turns post-consumer glass into high-performance cement using CO2 sequestration, said revenue during the quarter was $5,177,709 while net loss came in at $477,494.
The company also said that during the first quarter, it successfully addressed a major unprofitable legacy customer relationship which was one contributing factor to the increase in its gross margin.
“Immediately upon taking over operations, we were faced with legacy customer relationships that were no longer profitable in the inflationary environment we inherited. Tough decisions were made in the short-term to position the company for better long-term growth (and we appreciate the support of our customers through this transition)," it said.
With the acquisition of Absorbent Products Ltd in February 2022, Progressive Planet Solutions is now a vertically-integrated mineral processor which continues to hold all the properties under development before the acquisition. Progressive Planet Solutions also holds patent pending, intellectual property associated with converting post-consumer glass into a low carbon cement.
Contact the author at jon.hopkins@proactiveinvestors.com