Verde falls as roadwork delays to hit Q3 revenue, profit

Verde AgriTech

09/09/2022 16:14

** Shares of Verde AgriTech   NPK.TO  fall as much as 24% to
 C$5.38, lowest in nearly seven months
    ** Verde says roadworks it was performing for increased
truck accessibility to and from its second plant in Brazil
incurred unforeseen groundwater issues
    ** Plant 2 is ramping up production to 1.2 million tonnes
per year of Verde's multinutrient potassium product
    ** Q3 rev now expected at C$24.7 million ($18.94 million)
from previous expectations of C$27.2 mln, while EPS is expected
to be C$0.12 from earlier outlook of C$0.25 
    ** Over the next 4 to 8 weeks, limited delivery of plant 2's
production will be possible, with an impact to company's 2022
results
    ** Plant 2's delayed output will miss most of the 2022
season's peak demand, thereby negatively impacting Verde's full
year volume
    ** Company says Plant 1 is operating at capacity to meet
demand 
    ** NPK up 112% so far this year
($1 = 1.3041 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))