The company is pleased to report to you on its year-to-date progress and share the outlook for the balance of 2021. The company has continued to build on its strong foundation and believes it is well-positioned to continue to deliver value for stakeholders. Some of the more exciting developments include:
We completed the acquisition of Replenish Nutrients, a leader in the formulation and delivery of regenerative fertilizer products to the conventional and organic markets in Canada, and welcomed Replenish Nutrients’ team to the EarthRenew family. We were rewarded with a revenue line of $4.3 million for the first 6 months of the year on top of the $4.7 million they recorded in the last six months of 2020, prior to the acquisition. We anticipate this will provide greater opportunities for our current and future stakeholders.Q3 numbers are coming soon!
Amid a backdrop of high commodity prices and reduced yield, EarthRenew’s subsidiary, Replenish Nutrients, is in the midst of a strong season of sales as farmers continue investing in their soil for next year. With such strong demand, it will be our challenge to keep up with demand this season – we have grown our sales targets for this year and have a backlog to prime sales for Spring 2022, creating a solid financial foundation for growth in the coming year.
Watch the full stakeholder presentation video below:
Our march to profitability and year-over-year growth is on track, but so too, are we reaping the fruits of our investment in operations. In the past several months we have worked to build a business where our feedstocks are secured, production is well in hand and off-take agreements are in place as a means to expand market share.
Our growth plans are ambitious – we aim to grow production from 40,000 tonnes to 400,000 tonnes in the next five years and we are already making good on that promise. We are currently completing the upgrades at our Beiseker facility which will allow us to meet the demand for 20,000 tonnes per year of granulated product as of this spring. This facility in central Alberta will become our specialty products and custom formulation production hub and support R&D for new products and additives. The upgrade at the Beiseker site is foundational for the selection of technology for our larger facilities planned in western Canada and into the US.
Our plan to co-locate our next production facility at the K+S Potash site provides us with a cost-efficient, secure source of potash fines for use in our innovative regenerative solutions. Working within the footprint of this existing facility, we are reducing project development costs and leveraging the regional strength of the province’s potash distribution capabilities. Coupled with our relationships with Fertoz and GFL, we now have the supply of feedstock secured to support our next phase of growth.
With coming growth in capacity, we are also focused on offtake agreements for producing product. To that end, we have secured a relationship with Parrish & Heimbecker (P&H), a Canadian agribusiness supply giant with more than 60 locations across the country. We plan to collaborate on education and marketing programs to energize the market and accelerate sales growth and we will replicate this program with other distributors.
As we streamline our activities and focus on production and distribution of the Replenish Nutrients products, we have rationalized our branding. EarthRenew is being positioned as the parent company and will be forefront as we talk about production capacity development and commercialization of the core waste heat utilization technology. Replenish Nutrients will continue to be the customer-facing and distribution brand for our regenerative products.
To read the full letter from our CEO, Keith Driver, click here.