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

Rhea-AI Summary

Replenish Nutrients (VVIVF) demonstrated significant operational improvements in Q1 2025, with gross profit margins expanding to 19% from 12% year-over-year despite seasonally lower revenues of C$0.4M (vs C$1.3M in Q1'24). The company narrowed its net loss to C$1.2M from C$1.6M and achieved positive operating cash flow of C$0.1M. The Beiseker granulation plant is nearing completion, targeting full capacity of 2,000 tonnes/month by mid-2025, with firm orders already secured for 6,000 tonnes. Following a C$5.6M capital raise, the company's strategic investments are yielding results, with Q2 blended fertilizer sales already surpassing last year's levels. The company's 100% Canadian-made fertilizer production strengthens its ESG profile and supply chain resilience. Management anticipates reaching 20,000-24,000 tonnes annual run-rate once Beiseker achieves full output, positioning 2025 as a potential turnaround year.

Positive

• Gross profit margins improved significantly to 19% from 12% year-over-year
• Net loss narrowed by C$0.4M to C$1.2M in Q1 2025
• Achieved positive operating cash flow of C$0.1M vs -C$0.2M in Q1'24
• Secured firm orders for first 6,000 tonnes of Beiseker plant output
• Q2 blended fertilizer sales already exceeding previous year's levels
• Successfully raised C$5.6M in debt/equity financing for plant completion

Negative

• Revenue declined to C$0.4M from C$1.3M in Q1'24
• Still operating at a net loss of C$1.2M
• Beiseker plant not yet at full capacity, limiting current production capabilities

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
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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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FAQ

What were Replenish Nutrients (VVIVF) Q1 2025 financial results?

In Q1 2025, Replenish Nutrients reported revenue of C$0.4M, gross margin of 19%, and a net loss of C$1.2M, with positive operating cash flow of C$0.1M.

What is the production capacity of Replenish Nutrients' Beiseker plant?

The Beiseker plant is expected to reach full capacity of 2,000 tonnes/month by mid-2025, with potential annual run-rate of 20,000-24,000 tonnes.

How much capital did Replenish Nutrients raise for its expansion?

Replenish Nutrients raised approximately C$5.6 million through debt and equity financing to complete the Beiseker plant and extend its distribution network.

What is Replenish Nutrients' current market capitalization?

At the time of publication, Replenish Nutrients had a market capitalization of C$12M with a stock price of C$0.085.

How has Replenish Nutrients' gross margin improved in Q1 2025?

Gross margin improved to approximately 19% in Q1 2025 compared to 12% in Q1 2024, reflecting higher selling prices and lower input costs per tonne.