Replenish Nutrients Announces 2025 Second Quarter Financial Results and Business Update

Executive Summary

• Replenish Nutrients Holding Corp. reported its 2025 Second Quarter financial results, highlighting improvements in revenue, gross profit, and adjusted EBITDA driven by higher sales volumes, stronger pricing spreads, and reduced SG&A expenses.
• The company closed approximately $5.6 million in debt and equity financings to support the final upgrades and commissioning of the Beiseker granulation facility and settle trade payables.
• The Beiseker facility is currently producing high-quality granulated fertilizer with an expected 30%+ gross margin for the fall season, while commissioning activities aim to increase throughput to 2,000 metric tonnes per month.

Key Details

• Revenue Performance:
  • Revenues increased by $0.6 million for the three months ended Q2 2025 compared to the prior year, driven by higher sales volumes and improved pricing spreads.
  • Revenues decreased by $0.3 million for the six months ended Q2 2025 compared to the prior year, due to slightly lower average pricing partially offset by higher sales volumes.
• Profitability Metrics:
  • Gross profit decreased by $0.1 million for the three-month period but increased gross profit percentage by 6 percentage points.
  • For the six-month period, gross profit percentage increased by 1 percentage point.
  • The increase in gross profit percentage is attributed to improved pricing spreads resulting from lower average input costs.
• Net Income/Loss:
  • Net loss remained flat for the three-month period.
  • Net loss decreased by $0.4 million for the six-month period, largely due to improved pricing spreads and lower selling, general, and administration (SG&A) expenses.
• Cash Flow:
  • Cash flows from operating activities decreased by $1.1 million for the three-month period and $0.8 million for the six-month period compared to the prior year.
  • The decrease was primarily due to increased use of cash for working capital purposes, partially offset by higher cash flows from operating activities of $0.4 million (3-month) and $0.7 million (6-month).
• Financing Activities:
  • Total of approximately $5.6 million in debt and equity financings closed.
  • $1.4 million closed in Q1 2025; $4.2 million closed in Q2 2025.
  • Proceeds are allocated to final upgrades/commissioning of the Beiseker granulation facility and settlement of approximately $0.6 million in trade payables.
  • The company's ERA grant for the DeBolt project remains available once remaining debt and equity financing is secured.
• Operational Updates:
  • Beiseker facility is producing high-quality granulated fertilizer.
  • Target throughput rate: 2,000 metric tonnes per month.
  • Commissioning activities include final equipment installations, key process improvements, and additional labor shifts for 24-hour operations.
  • Expected gross margin for fall season sales: 30%+.
• Business Development:
  • Discussions underway with counterparties to develop a pelletized version of the proprietary fertilizer.
  • Potential licensing deals for distribution of granulated and pelletized products are in negotiation.
  • Company anticipates announcing formal agreements in coming weeks/months.
  • Expected impact: No significant capital outlays; meaningful incremental margins and cash flows within the next year.

Notable Quotes

• "The second quarter of 2025 saw improvements in revenue, gross profit, gross profit percentage, funds used in operations and adjusted EBITDA on the back of higher sales volumes, stronger pricing spreads and lower selling, general and administration expense compared to the same 3-month period in the prior year."
• "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."