Replenish Nutrients Holding (ERTH) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 saw modest revenues, sales volumes, and margins due to higher cost inventory and deferred sales to the fall season.

• Demand for regenerative fertilizer products remains robust, with growth from both existing and new customers, despite seasonal fluctuations.

• Focus remains on shifting sales mix from lower margin blended fertilizer to higher margin granulated fertilizer.

Financial highlights

• Revenues were $0.9 million for Q2 and $2.2 million year-to-date, down from $4.3 million and $6.8 million in the prior year, mainly due to seasonal demand variability.

• Gross profit was $0.0 million for Q2 and $0.2 million year-to-date, compared to $0.6 million and $0.7 million in the prior year, impacted by higher cost inventory.

• Net loss was $1.3 million for Q2 and $2.9 million year-to-date, compared to $0.6 million and $0.8 million in the prior year.

• Cash flows used in operating activities were $0.2 million for Q2 and $0.4 million year-to-date, compared to $0.2 million generated and $0.5 million used in the prior year.

Outlook and guidance

• Second half 2024 revenues and gross margin percentages are expected to exceed those of the same periods in 2023.

• Anticipates significant margin and cash flow improvements from increased granulated fertilizer production in late 2024 and into 2025.