RE:RE:RE:News OutDefinitely not a great quarter with a terribly worded nr completely de-emphasizing the fact that the company actually generated an operating net profit and has very nice year over year comparables. That being said, the growing pains apparently will continue for some time further but it's far from the disaster you're portraying here zzstocks.
Pros:
- gross margins were about in line with expectations.
- working capital surplus of 1.6M for the quarter.
- tiny net profit, far better than an operational loss.
- plant 1 capacity successfully expanded from 200 to 500k tonnes per annum.
- cash on hand is 740K even after plant expansion.
Cons:
- 2019 sales target not met and 2020 revenue target is barely above what was expected for this year. I'm perplexed as to how they have such visibility on 2020 sales. The whole pitch with verde has always been that a few successful hectares one growing season could turn into the whole farm in the next season. Anyone have any thoughts on this?
- in terms of 2019 sales though, clearly the majority of farmers are not yet convinced of the upside in using k forte.
- these ongoing permitting hurdles need to be cleared. Currently only fully permitted for149K tonnes vs a current 500K production capacity is an issue (when demand picks up).
- the new Sales VP, with all the credentials, lasted less than 6 months. This company needs to clarify a sales plan going forward. All imo.