Farmers Edge

[KFRCanuk]

As per the 2023 Shareholders Letter

 

Quote

Farmers Edge had another challenging year in 2023. CEO, Vibhore Arora, reduced the cost base by nearly 50% since he took the reins in 2022. Unfortunately, acre and revenue growth has not yet materialized. In addition, the overall market for Digital/Precision Agriculture has been slower than anticipated to emerge. Management and the  board have decided that the turnaround plan can be executed best outside of the public markets. As such, Farmers Edge is being taken private in 2024 so that management can focus on executing the business plan.

 

I'm curious about the turnaround plan. Created this as a tracking post more than anything.

Edited Friday at 10:52 PM by KFRCanuk

[KFRCanuk]

As per the 2024 Shareholders Letter

 

Quote

Farmers Edge led by CEO Vibhore Aurora completed a successful pivot of the business in 2024 with the Fairfaxsponsored go-private transaction and a restructuring of the business. The company will continue to deliver its traditional digital services to a smaller set of growers. Management also believes there is an important growth and value opportunity by building its managed services and soil sampling businesses. A focus on operational efficiency has led to significantly reduced cash flow deficiency. We have written off our investment in Farmers Edge and it has cost us $385 million over the last eight years – another big mistake by your Chairman!

 

Edited Friday at 10:58 PM by KFRCanuk

[jbwent63]

Can one of you fine folks explain to me why we have plowed so much money into Farmers Edge with seemingly no end of losses in sight? It's not like I've never done the same in my business. One good year and your optimism takes over and you support the losses believing another good year will come soon. What are the prospects for the business to keep Fairfax from selling it for pennies or ceasing operations? Is this Fairfax's spinning mill business? Thanks in advance.

[Hoodlum]

1 hour ago, jbwent63 said:

Can one of you fine folks explain to me why we have plowed so much money into Farmers Edge with seemingly no end of losses in sight? It's not like I've never done the same in my business. One good year and your optimism takes over and you support the losses believing another good year will come soon. What are the prospects for the business to keep Fairfax from selling it for pennies or ceasing operations? Is this Fairfax's spinning mill business? Thanks in advance.

my understanding is that there are significant tax losses that can now roll up to Fairfax since they took them private.  They just need to break even on earning going forward.