Vegalab Announces First Quarter 2018 Financial Results
Vegalab, Inc. (OTCQB: VEGL) disclosed Q1 2018 financial performance for the quarter ending March 31, 2018. The company operates through two complementary divisions: an Agronomy Business focused on manufacturing and distributing natural crop protection and soil enhancement products, and a Packing Business operating a citrus processing facility.
Agronomy Group Acquisition
In February 2018, Vegalab acquired The Agronomy Group, LLC, previously the company's leading US sales organization. This acquisition expanded internal marketing capabilities and enhanced the breadth of product offerings available to commercial growers across North America.
"The acquisition of The Agronomy Group, LLC, was a strategic business decision that expanded the Company's offerings and footprint in the United States."
— David Selakovic, CEO, Vegalab
Selakovic noted that agrochemical product revenue surged dramatically compared to the prior year period, as the combined entity's go-to-market capability accelerated commercial traction with regional distributors and growers.
Financial Summary — Q1 2018
| Metric | Q1 2018 | Q1 2017 |
|---|---|---|
| Total Revenues | $7,288,629 | $208,816 |
| Agrochemical Product Sales | $2,729,141 | $208,816 |
| Packing Business Revenue | $4,559,488 | — |
| Net Loss | $(56,769) | $(225,148) |
| Net Loss Per Share | $(0.00) | $(0.01) |
Total revenues reached $7,288,629 versus $208,816 in the comparable prior-year period. The packing business, acquired in October 2017, contributed $4,559,488 in citrus processing revenue during the quarter. Net loss improved significantly to $56,769 compared to $225,148 in Q1 2017, reflecting the operational leverage gained from the combined business structure.