EarthRenew Inc. (CSE: ERTH; OTCQB: VVIVF), owner of leading regenerative fertilizer producer Replenish Nutrients, is pleased to announce its Q1 2022 financial results highlighted by a record first-quarter revenue.
As raw material demand increases due to supply shortages caused by the Russian invasion of Ukraine,
farmers are experiencing the highest prices of inputs in nearly a decade. Replenish Nutrients is uniquely positioned to provide affordable and consistent regenerative fertilizer products. This, in addition to the strategic expansion of production capacity, has led EarthRenew to experience a record first quarter.
“With strong product demand in our existing markets of central and northern Alberta, Replenish
Nutrients is pleased to have outperformed historic revenue in this quarter, especially since this is typically a low revenue season,” stated EarthRenew CEO, Keith Driver.
By The Numbers
- Recorded $3.1 million of revenue in Q1 2022, compared to $500K same time last year.
- Sales performance aligns well with the seasonal sale of fertilizers and the historic trend of low
Q1 and Q3 sales buoyed by high second and fourth quarters. As a greater portion of the company’s sales trend towards sale of granulated vs blended product, the degree of seasonality will flatten out. - Normalized for the acquisition of Replenish Nutrients, revenue on a proforma basis is up to
$700K – or 30 per cent – over Q1 2021. - A net loss of $1.4 million due to commissioning of the Beiseker facility and personnel increase
required to meet the growth in demand.
Second Quarter and Full-Year Outlook
The spring planting season (Q2) and fall harvest (Q4) are typically the strongest selling seasons with the
fall sales weighing more heavily by several times. The company has already built-up sizeable inventory at
below-market prices to support more attractive margins. As such, the company expects the following in
Q2 and the balance of the year:
- Expected sales for the first half of the year to be between $8 or $9 million.
- Adjusted revenue guidance for 2022 from $24 million to $27 million.
- Continued capacity building through additional facility expansions at DeBolt and Bethune.
“Our fall season is tracking at double those figures as the majority of our business happens in the second half of the year,” Driver continued. “The market is still squeezed by limited phosphate fertilizer supply – we’re accumulating inventory at favorable pricing to ready ourselves for what we anticipate will be another record season.”
