Key Takeaways
- Verde AgriTech reported a net loss of $12.6 million in FY 2024, compared to $6.0 million in 2023, amid declining sales and broader market headwinds.
- Sales volume declined by 25%, while revenue dropped 43% year-over-year to $21.6 million.
- The company renegotiated 99.8% of its total debt, significantly reducing short-term obligations for 2025 and projecting R$115 million in cash savings over two years.
- FY 2024 product sales had the potential to capture or avoid more than 25,000 tons of CO₂ emissions and replace over 16,000 tons of chloride in agricultural soils.
- By March 2025, Verde AgriTech had already delivered or received orders for over 60% of its total 2024 volume, signaling a more positive outlook.
Financial and Operational Performance in 2024 of Verde AgriTech
Verde AgriTech released its audited financial results for the year ended December 31, 2024, showing a decline in operational performance due to ongoing challenges in the Brazilian agricultural sector. Sales volume fell to 319,000 tons, while revenue declined to $21.6 million, a 43% decrease compared to the previous year.
- EBITDA before non-cash items: – $2.5 million (FY 2023: $2.0 million).
- Net loss: $12.6 million (FY 2023: $6.0 million).
- Cash and cash equivalents: $3.4 million, with an additional $6.9 million in short-term receivables.
- General and administrative expenses decreased by $1.6 million, reflecting cost control efforts.
Cristiano Veloso, Founder and CEO of Verde AgriTech, remarked, “Navigating through this period required exceptional resilience. Those who persevered have demonstrated remarkable strength and adaptability.”
Verde AgriTech Debt Restructuring Strengthens Financial Position
In 2024, Verde AgriTech undertook a significant debt restructuring initiative, renegotiating terms with creditors representing over 99.8% of its total outstanding debt.
- Repayment terms extended to 120 months, with principal and interest payments suspended for 18 months.
- Cash savings of R$115 million are projected over the next two years.
- Creditors not participating in the agreement will face a 75% reduction in their balances, with the remainder subject to 0.82% annual interest.
- Short-term obligations for 2025 reduced to R$1.5 million.
Veloso added, “We remain confident that court approval of the agreement is imminent. This would mark a significant milestone for the company.”
Market Conditions in Brazilian Agriculture
The financial difficulties in 2024 were linked to declining commodity prices, persistent high input costs, and restricted access to credit, prompting many agricultural businesses to restructure their debt or seek insolvency protection.
Verde AgriTech opted for a cautious financing approach, limiting credit offerings to mitigate risk, which also affected sales volume. The average cost of debt for the company stood at 16.2%, while the Selic interest rate was 12.25% at year-end and is projected to rise further in 2025.
Currency fluctuations also had an impact, with the Canadian dollar appreciating 6.2% against the Brazilian real over the year.
Environmental Contributions and Product Impact
In FY 2024, Verde AgriTech’s product sales contributed to:
- Up to 25,429 tons of CO₂ potentially captured via Enhanced Rock Weathering.
- 9,116 tons of CO₂e emissions avoided by replacing traditional potassium chloride fertilizers.
- 16,776 tons of chloride prevented from being applied to soils.
Since the beginning of production in 2018, Verde estimates a cumulative environmental impact of 297,782 tons of CO₂ captured or avoided and 155,935 tons of chloride avoided in total.
Verde AgriTech’s Outlook for 2025
Early 2025 shows signs of recovery. Verde AgriTech reports that, within the first 79 days of the year, it has already received orders and delivered volumes accounting for over 60% of total 2024 sales.
Veloso noted that favorable commodity prices, improved climatic conditions, and a recovering global supply chain are contributing to renewed optimism. The company plans to build on this momentum while maintaining its focus on financial prudence and environmental impact.
