The following is a summary of the Verde Agritech Ltd. (VNPKF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Verde Agritech reported a 53% drop in 2023 revenue to CAD 37.9 million due to decreased potash prices and sales volume.
Notable net loss of over CAD 6 million in 2023 due to reduced revenue, increased ECL's, depreciation, and interest expenses.
Company secured additional loans in Q3 and Q4 increasing cash by $5.8 million YoY.
Total non-current assets in 2023 were $73.1 million, up from $65.2 million in 2022.
There was a significant reduction in cash used in investing to $4 million in 2023 from $42 million in 2022, attributable to investments in Factory 2.
Business Progress:
Verde Agritech is committed to adapting its strategy to overcome 2023 challenges and achieve growth objectives.
The company is working towards preselling carbon credits and exploring niche markets and new pricing strategies to boost sales.
It is changing sales approach from traditional long-distance sales to more direct field sales targeting.
Following customer reduction, the company plans for direct interactions with clients.
Verde Agritech successfully secured loans from Bank of Brazil and Banco Bradesco in Q3 and Q4.
Plans for the future involve reducing G&A, adapting product strategy and boosting sales to be cash flow positive.
The company is also negotiating with BNDS and BDMG for better terms for farmers and exploring product improvements such as granulation techniques.
More details: VERDE AGRITECH LTD IR
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