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Highlights

  • Q2 2025 revenue fell 6% to CAD 4.8 million on lower sales volumes and reduced specialty product share.
  • Net loss narrowed to CAD 2.4 million from CAD 2.6 million in Q2 2024, with lower non-cash expenses.
  • Debt restructuring moved 99.5% of loans to long-term, cutting short-term debt from CAD 22.9M to CAD 0.2M.

Verde AgriTech Ltd (TSX: NPK) reported a Q2 2025 net loss of CAD 2.4 million, or CAD 0.04 per share, compared to a net loss of CAD 2.6 million, or CAD 0.05 per share, in the same period last year. Revenue for the quarter was CAD 4.8 million, down 6% from Q2 2024, with sales volumes declining 6% to 80,354 tons. The company recorded a gross margin excluding freight of 58%, up from 55% in the prior year.

The average revenue per ton fell 21% year-over-year, driven by a 9.2% devaluation of the Brazilian Real and a reduced proportion of specialty products, which fell from 18% to 9% of sales. The shift reflected customer preference for lower value-added products amid restricted cash flows in Brazil’s farming sector. Excluding freight, the average revenue per ton decreased 17%.

EBITDA before non-cash events was negative CAD 0.2 million, compared to breakeven in Q2 2024. Operating cash inflow totaled CAD 0.2 million, compared to an outflow of CAD 0.3 million in the prior year. Interest expenses were CAD 1.4 million, while depreciation totaled CAD 0.8 million.

Production costs declined 24% compared to Q2 2024, aided by renegotiated supplier contracts, reduced headcount, currency devaluation, and a lower proportion of specialty products in the sales mix. The company said its cost control measures have helped sustain gross margins despite pricing pressure and credit constraints among customers.

During the quarter, Verde completed a debt restructuring with over 97.5% of creditors, moving approximately 99.5% of its loans to long-term maturities. Short-term loans dropped to CAD 0.2 million from CAD 22.9 million a year earlier. The restructuring also reduced the principal owed to non-adherent creditors by 75% to about BRL.7.0 million and lowered interest rates on this debt to the Taxa Referencial, currently around 1.36% annually.

On the sustainability front, the company estimated that Q2 2025 sales have the potential to capture up to 9,640 tons of CO2 from the atmosphere via Enhanced Rock Weathering, with a net estimated capture of 6,890 tons. Sales also avoided an estimated 4,102 tons of CO2e emissions by replacing potassium chloride fertilizers and prevented 6,368 tons of chloride from entering soils.

Since production began in 2018, Verde’s cumulative potential environmental impact includes the removal or avoidance of 315,564 tons of CO2 and the prevention of 182,002 tons of chloride from being applied to agricultural land.