Replenish Nutrients Announces 2024 Full-Year and Fourth Quarter Financial Results and Business Update

Replenish Nutrients Announces 2024 Full-Year and Fourth Quarter Financial Results and Business Update

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES/

OKOTOKS, AB, April 30, 2025 /CNW/ - Replenish Nutrients Holding Corp. (formerly EarthRenew Inc.) (CSE: ERTH) (OTC: VVIVF) ("Replenish" or the "Company"), is pleased to announce its 2024 full-year and fourth quarter financial results and business update.

Business Update and Market Outlook

The fourth quarter of 2024 saw lower revenues and sales volumes, but improved gross profit margins, gross profit percentage and adjusted EBITDA compared to the same quarter in the prior year. While revenues, sales volumes and margins were down on a full year basis, the Company expects increased revenues, margins and cash flows once full-scale granulated fertilizer production ramps up at the Beiseker facility by mid-2025. The Company continues to have strong repeat business from its retained customer base in addition to selling incremental volumes to new customers during the year, demonstrating the efficacy and strong demand for the Company's regenerative fertilizer products.

As it relates to the recent macro economic events surrounding tariffs and various international trade relations, the Company believes the resilient and large domestic agriculture market in Canada as well as the diversified nature of Canada's agriculture exports bodes very well for Canada and the Company's products. Further, the Company is very proud to claim that its products are 100% Canadian manufactured with nearly 100% Canadian sourced raw materials, supporting Canadian workers and supply chains and demonstrating Canadian leadership and innovation in the critical agriculture and food supply chain sectors.

On the financing front, subsequent to year end, the Company closed multiple debt and equity financings for a total of approximately $5.6 million to support the final upgrades and commissioning of the Beiseker granulation facility as well as the settlement of approximately $0.6 million of trade payables. See the Liquidity and Capital Resources section of the MD&A for further details. 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. On the DeBolt project, the Company's ERA grant continues to be available once the remaining debt and equity financing is closed.

Overall, the fourth quarter continued to demonstrate the strong metrics of the Company's granulated fertilizer product while also making significant progress on the Beiseker facility upgrades and securing financing for the Company's future growth. As of the date of this MD&A, the Company has completed the interior construction upgrades at Beiseker and expects to have the final plant automation and exterior construction finalized by mid 2025. As noted above, the Company expects Beiseker to reach full operational capacity of approximately 2,000 metric tonnes per month by mid 2025, with steadily improving revenues, margins and cash flows as granulated production and sales ramp up, with the Company having firm sales commitments for the first 6,000 metric tonnes of product produced.

Consolidated Financial Highlights

• Revenues of $2.6 million and $6.9 million compared to $3.6 million and $13.9 million in the prior year, a decrease of $1.0 million and $7.0 million, respectively. The decrease is largely due to the expected cycling of different application rates of nutrient requirements for different crop types. Customer demand for the Company's product remains robust.
• Gross profit of $0.3 million and $0.6 million compared to $0.2 million and $1.4 million in the prior year, a increase of $0.1 million and a decrease of $0.7 million, respectively. The increase in the quarter is due to higher average pricing and lower input costs while the increase for the full year is due to lower average pricing and higher input costs.
• Net loss of $3.1 million and $4.3 million compared to net earnings of $1.0 million and $0.1 million in the prior year, a decrease of $4.1 million and $4.4 million, respectively. The decrease is largely due to the non-cash impairment of intangible assets recognized in the fourth quarter of 2024.
• Cash flows from operating activities of $0.4 million and $0.3 million compared to cash flows used-in operating activities of $0.3 million and $0.5 million in the prior year, an increase source of cash of $0.7 million and $0.8 million. The increases were predominantly due to higher sources of cash from working capital year over year.

About Replenish Nutrients

Replenish Nutrients manufactures and sells proprietary fertilizer products containing essential macro and micro nutrients and biological material while using a proprietary zero-waste manufacturing process. Replenish Nutrients is a wholly-owned subsidiary of Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF). To learn more about Replenish visit our website at www.replenishnutrients.com.

About Replenish Nutrients Holding Corp. (formerly EarthRenew Inc.)

Replenish Nutrients Ltd. is a wholly owned subsidiary of Replenish Nutrients Holding Corp. (formerly EarthRenew Inc.) (CSE: ERTH) (OTC: VVIVF).

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to financial and operating results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will", "may", "would", "should", "could", "plans", "expects", "budget", "schedule", "estimates", "forecasts", "intends", "anticipates", "believes", and similar expressions, including variations thereof and negative forms. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; regulatory risks; other risks of the energy and fertilizer industries and other risk factors disclosed in our public disclosure which can be found under our profile on SEDAR+ at www.sedarplus.ca. Readers are cautioned that these risk factors should not be construed as exhaustive. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Replenish Nutrients Holding Corp.