Replenish Nutrients Announces 2025 First Quarter Financial Results and Business Update

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES/

OKOTOKS, AB, May 30, 2025 /CNW/ - Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF) ("Replenish" or the "Company"), is pleased to announce its 2025 first quarter financial results and business update.

Business Update and Market Outlook

The first quarter of 2025 saw notable improvements in gross profit percentage and cash flow from operating activities despite lower revenues and sales volumes compared to the same quarter in the prior year. The Company is well poised to continue this strong gross profit trend through its spring and summer sales season. The Company also expects to steadily improve revenues, sales volumes, margins and cash flows as the Beiseker facility completes the final stages of commissioning this summer, with full production capacity still expected by mid-year. Notably, blended fertilizer revenues and gross profit to date in the second quarter have already surpassed the prior year, demonstrating continued strong demand for the Company's product and the expected cycling of increased demand for additional crop inputs from the Company's strong customer base.

As it relates to the recent macro economic events surrounding tariffs and various international trade relations, the Company believes the resilient and large domestic agriculture market in Canada as well as the diversified nature of Canada's agriculture exports bodes very well for Canada and the Company's products. Further, the Company is very proud to claim that its products are 100% Canadian manufactured with nearly 100% Canadian sourced raw materials, supporting Canadian workers and supply chains and demonstrating Canadian leadership and innovation in the critical agriculture and food supply chain sectors.

On the financing front, the Company closed multiple debt and equity financings for a total of approximately $5.6 million to support the final upgrades and commissioning of the Beiseker granulation facility as well as the settlement of approximately $0.6 million of trade payables, with approximately $1.4 million of this financing having closed in the first quarter and the remaining $4.2 million having closed subsequent to quarter end. See the Liquidity and Capital Resources section below for further details. Overall, these financings demonstrate confidence in the Company's diligent development of a robust business model around an innovative regenerative fertilizer product in an emerging and fast-growing market in regenerative and sustainable agriculture. On the DeBolt project, the Company's ERA grant continues to be available once the remaining debt and equity financing is closed.

Overall, the first quarter continued to demonstrate strong gross profit percentage metrics for granulated and blended fertilizer products while also making significant progress on the Beiseker facility upgrades and securing financing for the Company's future growth. As of the date of this MD&A, the Company has completed the interior construction upgrades at Beiseker and expects to have the final plant automation and exterior construction finalized by mid year. The Company expects Beiseker to reach full operational capacity of approximately 2,000 metric tonnes per month by mid year, with steadily improving revenues, margins and cash flows as granulated production and sales ramp up, with the Company having firm sales commitments for the first 6,000 metric tonnes of product produced.

Consolidated Financial Highlights

• Revenues of $0.4 million compared to $1.3 million in the prior year, a decrease of $0.9 million. The decrease is largely due to the expected cycling of different application rates of nutrient requirements for different crop types. Customer demand for the Company's product remains robust and has already surpassed the second quarter volumes and revenues compared to the prior year.
• Gross profit of $0.1 million compared to $0.2 million in the prior year, a decrease of $0.1 million. The decrease in the quarter is due to lower total sales volumes partially offset by higher average pricing and lower average input costs. Notably, the gross profit percentage of 19% compared to 12% in the prior year was 7% higher due to higher average pricing and lower average input costs.
• Net loss of $1.2 million compared to a net loss of $1.6 million, an improvement of $0.4 million. The improvement is largely due to improved margins partially and lower non-operating expenses compared to the prior year.
• Cash flows from operating activities of $0.1 million compared to cash flows used-in operating activities of $0.2 million an increase source of cash of $0.3 million. The increase is largely due to improved margins and lower non-operating expenses compared to the prior year.

 About Replenish Nutrients

Replenish Nutrients manufactures and sells proprietary fertilizer products containing essential macro and micro nutrients and biological material while using a proprietary zero-waste manufacturing process. Replenish Nutrients is a wholly-owned subsidiary of Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF). To learn more about Replenish visit our website at www.replenishnutrients.com.

About Replenish Nutrients Holding Corp. (formerly EarthRenew Inc.)

Replenish Nutrients Ltd. is a wholly owned subsidiary of Replenish Nutrients Holding Corp. (formerly EarthRenew Inc.) (CSE: ERTH) (OTC: VVIVF).

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to financial and operating results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will", "may", "would", "should", "could", "plans", "expects", "budget", "schedule", "estimates", "forecasts", "intends", "anticipates", "believes", and similar expressions, including variations thereof and negative forms. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; regulatory risks; other risks of the energy and fertilizer industries and other risk factors disclosed in our public disclosure which can be found under our profile on SEDAR+ at www.sedarplus.ca. Readers are cautioned that these risk factors should not be construed as exhaustive. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Replenish Nutrients Holding Corp.