Verde AgriTech Ltd

Q1 revenue was $1.7 million versus $2.9 million in the prior-year quarter, and volumes sold fell to approximately 27,000 tons from 47,000 tons. Bad-debt provision declined to close to zero from $500,000 last year, and EBITDA before non-cash events improved modestly to negative 1.3. Cash was $6.4 million at quarter-end, with $5.2 million in short-term receivables, compared with $2.5 million in cash and $7.7 million in receivables a year earlier. Management also cited a private placement in Q1 that delivered about $4.0 million in net proceeds. Gross margin on a per-ton basis fell from 56% to 41%, and cost per ton rose from $16 to $23. The company expects BRL 7.5 million of savings this year and about BRL 9.4 million over 12 months from its cost-reduction program.

Cristiano Veloso said the operating environment in Brazil remains very challenging, with high interest rates, a strong Brazilian real, and worsening credit conditions across agribusiness. He framed the company’s tighter credit policy as necessary, even if it hurts sales, because many farmers and distributors are no longer paying creditors. He was upbeat about efficiency gains from AI-driven workflow changes and said the team is finding ways to do more work with fewer people and less delay.

Felipe Paolucci focused on the financial impact of lower volume and mix, saying revenue fell to $1.7 million and volumes to about 27,000 tons, which pushed cost per ton up from $16 to $23. He noted that bad-debt provision fell to close to zero from $500,000 because the company is avoiding credit sales to doubtful customers, and he pointed to margin pressure with gross margin declining from 56% to 41%. On liquidity, he said cash ended at $6.4 million plus $5.2 million in short-term receivables, supported by about $4.0 million in net private-placement proceeds, and he reiterated the cost-reduction plan targeting BRL 7.5 million of savings this year and BRL 9.4 million over 12 months.

Analysts focused on the rare earth project, asking about assay release timing, the delay in recovery-rate results, and whether the initial resource estimate would still arrive in H1 2026. Management said the pace is slower because the team is running both the fertilizer business and the rare earth project, and that more updates should come next week. They also addressed customer credit risk, saying even long-time customers are being declined if their credit profiles deteriorate, and they discussed Microsoft’s pullback on carbon-credit purchases as a reason to revisit the ERW strategy.