Verde AgriTech Ltd
Anticipating a Recovery in H2-2024
Published: 4/10/2024
Author: Sid Rajeev, B.Tech, CFA, MBA
*See important disclosures at the bottom of this reportSector: Basic Materials | Industry: Agricultural Inputs
Ticker Symbols:
NPK.TO - TSX 🔹
VNPKF - NASDAQ 🔹
Highlights
- 2023 revenue was down 53% YoY, and 12% lower than our estimate, due to lower product sales (down 32% YoY), and prices (down 30% YoY).
- EPS declined YoY from $0.34 to -$0.11, missing our forecast of -$0.09.
- In 2023, fertilizer demand was influenced by sluggish global GDP growth, elevated interest rates, volatile fertilizer prices, and harsher climate conditions.
- Potash prices (Brazil) are down 28% YoY, and 11% QoQ, to $305/t vs the five-year average of US$360/t. We are cautiously optimistic, and anticipate a recovery