Replenish Nutrients Holding (ERTH) investor relations material

Executive summary

• Transitioned from blended to granulated and pellet fertilizer, with significant increases in granulated sales: over 1,200 metric tonnes for the quarter and 1,600 metric tonnes for the half-year, year-over-year, reflecting growing demand and successful distribution relationships.

• Strategic CAD 15 million ($15M) investment from SRC Agrominerals provides capital, secures long-term mineral input, and accelerates production ramp-up and expansion.

• Multiple facilities at various stages of commissioning and ramp-up, targeting over 250,000 tons of annual capacity, with potential to exceed 300,000 tons.

• Licensing and partnership models with entities like Farmers Union, MJ Ag, and FUE enable scalable growth with limited capital outlay.

• Demand-led capacity expansion aligns with established distributor and farmer demand, avoiding excess inventory.

Financial highlights

• Q2 2026 revenue was approximately CAD 980,000 ($978,300), down from CAD 1.5 million ($1,474,329) in Q2 2025, due to transition from blended to higher-margin granulated products.

• Gross margin on granulated products was 19% in Q2 2026, below the 25%-35% target, impacted by commissioning and ramp-up costs.

• Adjusted EBITDA loss of CAD 842,000 ($842,141) in Q2 2026, compared to a loss of CAD 460,000 ($460,251) in Q2 2025.

• Net loss for Q2 was $(1,569,625), compared to $(1,301,540) last year.

• Post-quarter, balance sheet strengthened by CAD 15 million SRC investment.

Outlook and guidance

• Expect financial profile to improve in Q4 2026 and into fiscal 2027 as new facilities reach full capacity and licensing revenues begin.

• Targeting gross margins of 25%-35% for granulated and pelletized products at scale; blended business to maintain 10%-15% gross margin.

• Beiseker facility targeting 2,000 metric tonnes/month; Beiseker Hutterite colony targeting 1,600 metric tonnes/month, both by Q4 2026.

• Licensing deals expected to reach full annualized capacity by end of 2026.

• New 150,000 ton Beiseker facility expected to be completed in Q1 2028, with funding in place and additional support from grants and debt.