Replenish Nutrients Q1 comment by ESGFIRE 2025: Strengthening Profitability and Growth

MALMÖ, Sweden, June 3, 2025 /PRNewswire/ -- 

Company: Replenish Nutrients
Listings: CSE Canada , Frankfurt and US OTC
Tickers: ERTH / VVIVF / WIMN
Market cap at time of publication: $12M CAD
Stock price at time of publication: $0.085 CAD
Business: Regenerative agriculture
Website: https://replenishnutrients.com/

ESGFIRE's Comment:

ESGFIRE portfolio company Replenish Nutrients' first-quarter (Jan–Mar) 2025 results show clear signs of operating leverage and margin improvement.  Gross profit margins jumped (to ~19% vs 12% a year ago) even though revenues were seasonally lower .  Management reports that demand remains robust and Q2 blended fertilizer sales have already topped last year's levels, signaling that the year-start softness was due to normal crop-cycle timing rather than weakening demand .

Key financial highlights are:

• Revenue: C$0.4 M vs C$1.3 M (Q1'24) .  The drop reflects expected seasonal cycling of crop nutrient needs, but demand is strong and customer volumes are rebounding.
• Gross Profit & Margin: C$0.1 M vs C$0.2 M (Q1'24); gross margin ~19% vs 12% a year ago .  This ~7-point margin gain reflects higher selling prices and lower input costs per tonne.
• Net Loss: –C$1.2 M vs –C$1.6 M (Q1'24) .  The loss narrowed by C$0.4 M, largely due to the improved gross margin and tighter cost control.
• Operating Cash Flow: +C$0.1 M vs –C$0.2 M (Q1'24) .  Replenish turned positive cash flow from operations for the first quarter, reflecting the leaner cost structure and better margins.
• Facility and Sales Commitments: The Beiseker granulation plant has completed interior upgrades and is in final commissioning.  Full capacity (~2,000 tonnes/month) is on track by mid-2025 , and management already has firm orders for the first ~6,000 tonnes of output , ensuring a clear revenue ramp.
• Sustainability (ESG) Strength:  Replenish's fertilizer is 100% Canadian-made with almost 100% Canadian inputs .  This fully domestic supply chain (supporting local agriculture and workers) adds ESG appeal and protects margins against global trade disruptions.

Building on Prior Strategy

These results validate the company's recent strategic moves.  After FY2024, Replenish raised about C$5.6 million (debt/equity) to complete the Beiseker plant and extend its distribution network .  That capital infusion is now paying off: as we noted in our earlier FY2024 commentary, the company was already seeing gross-profit gains in late 2024 .  The Q1 outcome shows this trend continuing – the plant upgrades and broader market reach are driving better unit economics and a stronger customer pipeline.

Outlook for FY2025

We expect these early signs to translate into robust full-year results.  Spring planting is underway, and management reports that early Q2 sales exceed last year's pace .  Once Beiseker hits full output, annual run-rate volume could exceed 20,000–24,000 tonnes, which at current margins would substantially boost revenue and profits.  Moreover, the company's disciplined cost base suggests further margin expansion as scale grows.  In our view, Q1's combination of improving gross margins, positive cash flow, and committed sales order book confirms that Replenish Nutrients is on track to meet its 2025 growth targets.  We remain optimistic in our outlook given that the Q1 results underscore the company's strengthened financial profile and the long-term upside of its regenerative fertilizer platform. 2025 is set to be a big turn around year for Replenish Nutrients .

About ESGFIRE

ESGFIRE is an investment company and research firm that focuses on ESG companies with either an environmentally friendly service or product. ESGFIRE has a performance record of over 1000 % returns since 2018.

Legal Disclaimer

This post is based upon reliable sources, namely regulated press releases from the company, as referred to above. Nevertheless, this post may contain interpretations, estimates, or opinions of the authors, or other non-factual information. If that is the case, this is continuously stated above. Furthermore, any projections, forecasts, or similar are explicitly stated as such.

The author holds shares and/or other securities of these companies and the relevant
companies may or may not have paid the author for content posted on this website. This
may impact the content on the website. Because of the above, ESGFire urges the visitors to always analyze all the posts critically in an objective manner, e.g., concerning the reliability of the relevant source and of what constitutes the authors' personal interpretations. The visitor is hereby reminded that the post does, as set forth in the Post, contain interpretations, estimates, or opinions of the authors. This post was written by Filip Erhardt, at ESGFIRE, published June 3rd 2025 by Filip Erhardt.

CONTACT:

Contact details
Website: www.esgfire.com
Group CEO: Filip Erhardt
Email: Filip@esgfire.com
Telephone:+46701609605

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