Verde AgriTech Reports Q2 2025 Results with Stable Margins, Lower Debt & Continued Sustainability Impact

Key Takeaways

• Verde AgriTech’s Q2 2025 sales volume reached 80,354 tons, generating $4.8 million in revenue, down 6% year-over-year.
• Gross margin (ex-freight) improved to 58%, with production costs per ton down 24%.
• Net loss narrowed to $2.4 million from $2.6 million in Q2 2024.
• Debt renegotiation shifted 99.5% of loans to long-term maturities, reducing short-term obligations to $0.2 million.
• Products sold in Q2 2025 had the potential to remove or avoid 13,742 tons of CO₂ emissions.

Verde AgriTech Maintains Margins Despite Revenue Decline

Verde AgriTech (TSX: NPK) announced its Q2 2025 results, reporting revenue of $4.8 million, a 6% decrease from the same period in 2024, due to lower sales volumes and a 21% decline in average revenue per ton. The drop was influenced by the devaluation of the Brazilian Real and a reduced share of higher-value specialty products in the sales mix.

Despite these headwinds, gross margin excluding freight improved to 58% from 55% a year earlier, supported by a 24% reduction in production costs per ton through renegotiated supplier contracts, lower operational headcount, and currency effects.

Loan Restructuring Strengthens Financial Position

A major highlight for Verde AgriTech was the completion of a debt renegotiation process that restructured over 99.5% of its loans into long-term maturities. Short-term loans fell to $0.2 million from $22.9 million in Q2 2024, significantly easing near-term repayment pressures.

The new terms provide grace periods of up to 19 months, repayment schedules extending over nine years, and reduced interest rates for certain creditor groups. Management says the changes have fortified the company’s balance sheet against ongoing sector volatility.

Sustainable Impact Remains a Core Driver

Products sold in Q2 2025 have the potential to capture 6,890 tons of CO₂ through Enhanced Rock Weathering and avoid 4,102 tons of CO₂e emissions by replacing potassium chloride fertilizers. Since starting production in 2018, Verde AgriTech estimates its products have removed or avoided over 315,000 tons of CO₂ and prevented 182,000 tons of chloride from entering soils.

CEO Cristiano Veloso emphasized that this “double dividend” of higher crop productivity and measurable climate benefits differentiates the company in the fertilizer market.

Market Conditions and Verde AgriTech’s Outlook

The Brazilian agricultural input market in Q2 2025 remained cautious, with high farmer indebtedness, limited credit, and elevated interest rates at 15.00%. Potash prices showed modest upward movement, but demand for fertilizers remained constrained as producers prioritized essential inputs.

Looking ahead to the second half of 2025, Verde AgriTech will focus on expanding its product portfolio with new multi-nutrient formulations, strengthening commercial outreach in core regions, and advancing research on its carbon capture initiatives. The company aims to be well-positioned for a potential rebound in sector demand.

Read the complete financial results here.