Search company, investor...
Replenish Nutrients company logo

Replenish Nutrients

replenishnutrients.com

Founded Year

2020

Stage

Acquired | Acquired

Valuation

$0000 

About Replenish Nutrients

Replenish Nutrients provides nutrient-dense soil health solutions for regenerative and sustainable agriculture systems across North America. On May 4th, 2021, Replenish Nutrients was acquired by EarthRenew.

Headquarters Location

220 Stockton Avenue

Okotoks, Alberta, T1S 2C3,

Canada

403-880-2929

Missing: Replenish Nutrients's Product Demo & Case Studies

Promote your product offering to tech buyers.

Reach 1000s of buyers who use CB Insights to identify vendors, demo products, and make purchasing decisions.

Missing: Replenish Nutrients's Product & Differentiators

Don’t let your products get skipped. Buyers use our vendor rankings to shortlist companies and drive requests for proposals (RFPs).

Latest Replenish Nutrients News

EARTHRENEW : MANAGEMENT'S DISCUSSION AND ANALYSIS For the 3 and 9 Months Ended September 30, 2022 and 2021

Dec 1, 2022

11/29 12/01/2022 | 10:14am EST Message : November 29, 2022 The following Management's Discussion and Analysis (MD&A) for EarthRenew Inc. (EarthRenew, Replenish or the Company) was prepared as of November 29, 2022, and focuses on information and key statistics from the September 30, 2022, condensed consolidated interim financial statements, together with the accompanying notes thereto and pertains to known risks and uncertainties relating to the agriculture and manufacturing sectors. This discussion should not be considered all-inclusive, as it does not include all changes regarding general economic, political, governmental, and environmental conditions. This MD&A contains certain financial measures that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or to cash from (used-in) operating, investing, and financing activities determined in accordance with IFRS, as indicators of our performance. We provide these measures to assist investors in determining our ability to generate income and cash provided by operating activities and to provide additional information on how these cash resources are used. This MD&A should be read in conjunction with the Company's annual audited consolidated financial statements as at and for the years ended December 31, 2021, and 2020, together with the accompanying notes thereto and the cautionary statement regarding forward-looking information and statements below. Unless otherwise indicated, all dollar amounts presented herein are in Canadian dollars. BUSINESS OVERVIEW EarthRenew is incorporated in the province of Ontario, Canada. The Company's common shares are traded on the Canadian Securities Exchange ("CSE") under the symbol "ERTH". The head office is located at 610 - 600 6th Avenue SW, Calgary, Alberta, Canada, T2P 0S5. EarthRenew and its wholly owned subsidiary Replenish Nutrients Ltd. (Replenish) delivers leading regenerative fertilizer solutions to support a farm system that prioritizes healthy soils and grower profitability. By combining essential macro and micro nutrients with our proprietary manufacturing process, the Company has developed a sustainable alternative to synthetic fertilizers that enhances overall soil function and biology while providing valuable plant-available nutrients farmers rely upon for healthy crops. Additional information can be found on the Company's website at www.replenishnutrients.com and on SEDAR at www.sedar.com . During the third quarter, the Company revised its reportable segments in accordance with IFRS 8 - Operating Segments to be the Fertilizer and Corporate segments, whereby the Company's historical power generation business and corporate functions have been combined into one reportable segment. The Company believes the fertilizer and corporate segments provide the most relevant information for users to evaluate the nature and financial effects of the business activities and the economic environment in which the Company operates. Under these new segments the Company tracks revenues, expenses, and profitability metrics for which the Company's chief operating decision maker evaluates performance and allocates resources. Prior period balances conform to current period presentation. MARKET OUTLOOK AND GUIDANCE The fertilizer sector continues to be a key area of growth in the larger agriculture and food supply chain sectors. While input costs have risen consistently over the past year in light of global geopolitical tensions, these cost increases have also resulted in higher pricing for fertilizer products both in Canada and globally. In spite of this increased price volatility, Replenish continues to generate resilient margins in its business on the back of its innovative and regenerative fertilizer products, while continuing to develop and scale the business in a sustainable and durable fashion. As is typical in the fertilizer business, the third quarter is a lower transitional quarter leading into a busy fourth quarter as fertilizer application begins after crops come off late in the third quarter and early in the fourth quarter. 2 Looking forward into the fourth quarter, the Company expects some of the $27 million in annual projected revenue to shift into the first half of 2023 on the back of a late regional crop harvest and inclement weather this fall. The Company has already received deposits for spring fertilizer sales and expects strong demand to continue for its products in the spring planting season. OVERALL PERFORMANCE 1These are non-IFRS financial and operational measures - refer to Non-IFRS Financial and Operational Measures section For the quarter ending September 30, 2022, the Company continued to grow the fertilizer business with increased revenues and sales volumes and lower overheads. Increases in revenues were driven by higher sales volumes and higher pricing as the Company continues to increase its market penetration in Western Canada. At the same time, the Company also realized cost efficiencies through lower selling, general and administrative expenses. Segmented Results Refer to discussion of segmented results under "Results of Operations" for the 3 and 9 months ended September 30, 2022 and 2021. RESULTS OF OPERATIONS Business Acquisitions On May 12, 2021, EarthRenew acquired 100% of the issued and outstanding securities of Replenish Nutrients Ltd. "Replenish", a regenerative fertilizer and nutrient company located in Okotoks, Alberta. The Company paid $1,502,490 in cash and issued a total of 21,264,093 common shares of EarthRenew at a price of $0.248 per common share. As additional consideration, the Company agreed to pay two separate earn-out payment of $7,000,000 and $2,000,000, respectively, based on qualifying annual gross revenues. The acquisition has an effective date of May 1, 2021. Refer to note 5 of the Company's interim financial statements for further details. 3 Revenue Revenue increased $0.4 million and $9.0 million for the 3 and 9 months compared to the same periods in the prior year. The increase year-over-year is due to higher sales volumes from increased market penetration of the Company's products in Western Canada and flat to higher average selling prices from higher regional fertilizer prices driven by larger macro and global economic supply and demand forces related to higher pricing for crop inputs and outputs. As noted under the "Business Combinations" heading, Replenish was acquired in May 2021, resulting in the 9-month comparative period being a partial period of 5 months. Adjusted for a 9-month comparison, revenues were also up year over year. Gross Profit Gross profit increased $0.1 million and $0.8 million for the 3 and 9 months compared to the same periods in the prior year. The increase year-over-year is due to increased revenues, sales volumes and sales prices as noted in the revenue section above. The Company's gross profit percentage was flat and decreased by 7 percentage points for the 3 and 9 months compared to the same periods in the prior year. The flat gross margin percentage for the 3 months ended is driven by higher prices for fertilizer products being equally offset by higher input costs, mostly for materials and transportation. The lower gross margin percentage for the 9 months ended is driven by higher prices for fertilizer products lagging the higher input costs, mainly materials and transportation. As can been seen by the Company's results for the 3 months ended, the Company has been able to steadily recover those increased input costs as the year has progressed. Accordingly, the Company expects gross margin percentages to continue to improve going forward as uncertainty around geo-political tensions ease and global commodity, crop input and crop output prices stabilize back to historical averages. 4 Depreciation and Amortization Depreciation and amortization increased $0.1 million and $0.6 million for the 3 and 9 months compared to the same periods in the prior year. The increase is primarily due additional capital spend on a quarter-to-date and year-to- date basis as well as the fact that Replenish was not acquired until May 2021 in the prior year. Selling, General and Administration Selling, general and administrative expense increased $0.7 million and $1.4 million for the 3 and 9 months compared to the same periods in the prior year. A large part of this increase was the transfer of certain resources from the corporate segment to support the operational, commercial, administrative, and financial needs of the fertilizer segment. When taken together with the corporate segment, selling, general and administration expense decreased $0.2 million and $0.4 million for the 3 and 9 months compared to the same periods in the prior year. This demonstrates that the Company has been able to successfully grow the business year over year on a lower run-rate overhead cost basis. The Company continuously evaluates ways to be more efficient in all of its support functions and expects to maintain this diligent approach going forward. Non-Operating Income and Expense The fertilizer segment realized higher non-operating income and lower non-operating expense of $0.2 million and less than $0.1 million for the 3 and 9 months compared to the same periods in the prior year. The higher non- operating income and lower non-operating expense was driven mostly by increased government funding related to the Company's efforts hire, test, and develop resources and products in the regenerative agriculture sector. This was partially offset by higher finance costs from higher debt and lease balances and higher research and development costs on a 9-month basis, where the comparative period is only 5 months on a year-to-date basis in the prior year. Corporate Segment Depreciation and Amortization Depreciation and amortization decreased less than $0.1 million and less than $0.1 million for the 3 and 9 months compared to the same periods in the prior year. The decrease is due to an insignificant depreciation true-up on a right-of-use asset land lease. Selling, General and Administration Selling, general and administrative expense decreased $0.9 million and $1.8 million for the 3 and 9 months compared to the same periods in the prior year. As noted in the discussion of selling, general and administration expense in the fertilizer segment, this decrease was largely the result of transferring certain resources from the corporate segment to support the operational, commercial, administrative, and financial needs of the fertilizer segment. When 5

Replenish Nutrients Frequently Asked Questions (FAQ)

  • When was Replenish Nutrients founded?

    Replenish Nutrients was founded in 2020.

  • Where is Replenish Nutrients's headquarters?

    Replenish Nutrients's headquarters is located at 220 Stockton Avenue, Okotoks.

  • What is Replenish Nutrients's latest funding round?

    Replenish Nutrients's latest funding round is Acquired.

  • Who are the investors of Replenish Nutrients?

    Investors of Replenish Nutrients include EarthRenew and VC7K Capital.

Discover the right solution for your team

The CB Insights tech market intelligence platform analyzes millions of data points on vendors, products, partnerships, and patents to help your team find their next technology solution.

Request a demo

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.