Bioceres Crop Solutions Reports Fiscal Second Quarter 2024 Financial and Operational Results

Rhea-AI Summary

Bioceres Crop Solutions Corp. (BIOX) reported strong financial results for the fiscal second quarter ended December 31, 2023. Total revenues were $140.2 million, a 49% increase from the same period last year. GAAP net income was $1.2 million, and adjusted EBITDA was $24.1 million. The company achieved broad-based revenue growth across all product segments, driven by a strong summer crop season in the Southern Hemisphere and increased demand for its technologies.

Positive

• Total revenues increased by 49% year-over-year, reaching $140.2 million.
• GAAP net income was $1.2 million, compared to a loss of $8.4 million in the year-ago quarter.
• Adjusted EBITDA was $24.1 million, more than double the previous year's figure.
• The company experienced strong growth in all product segments, with Crop Protection, Seed and Integrated Products, and Crop Nutrition all contributing to the revenue increase.
• The HB4 Wheat harvest was completed, meeting FY24 guidance, and a new US Patent was awarded for HB4 Soy, extending technology protection until 2042.

Negative

• None.

Financial Analyst

Revenue Growth Analysis: The reported 49% year-over-year revenue increase for Bioceres is a significant indicator of the company's market performance and expansion. This robust top line growth, especially in the context of a post-drought recovery in Argentina, suggests effective management of supply chain and distribution channels to capitalize on the resumed product demand. The diversified growth across all product segments reinforces the company's resilience and adaptability to market conditions. Investors might view these results as a positive signal of the company's ability to navigate environmental challenges and leverage opportunities for growth.

Profitability and Operational Leverage: The improvement in operating profit from a loss in the previous year to a GAAP net income of $1.2 million is noteworthy. The more than doubling of adjusted EBITDA reflects strong operational leverage and cost management. This could indicate a sustainable growth trajectory and operational efficiency that may appeal to shareholders looking for long-term value creation. The ability to maintain steady gross margins despite the significant increase in revenues is also a testament to the company's pricing power and cost control measures.

Market Research Analyst

Market Dynamics and Competitive Positioning: Bioceres' performance must be contextualized within the broader agricultural biotechnology market. The company's success in increasing revenue and expanding margins can be partly attributed to the growing global demand for climate-resilient crops. Bioceres' HB4 Wheat and Soy technologies, which are designed to withstand climate stressors, position the company advantageously in a market increasingly concerned with food security and sustainable agriculture. The new US patent for HB4 Soy, extending protection until 2042, provides a competitive moat and could potentially lead to increased market share and long-term revenue streams.

Agricultural Biotechnology Expert

Technological Impact and Regulatory Landscape: The advancements in HB4 Wheat and Soy technologies are critical to understanding Bioceres' strategic direction. The validation of HB4 Wheat's competitiveness and the rapid expansion of the soybean program in Brazil highlight the company's R&D capabilities and the potential for market disruption. Additionally, new regulatory approvals in various countries not only open up new markets but also signify a growing acceptance of genetically modified crops. This could lead to a broader adoption of Bioceres' products, impacting future revenue streams and positioning the company as a leader in the agricultural biotech space.

2Q24 revenues at $140.2 million, 49% higher YoY

GAAP net income at $1.2 million, and adjusted EBITDA¹ at $24.1 million

ROSARIO, Argentina--(BUSINESS WIRE)-- Bioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change, announced financial results for the fiscal second quarter ended December 31, 2023. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards. All comparisons in this announcement are year-over-year (YoY), unless otherwise noted.

FINANCIAL & BUSINESS HIGHLIGHTS

• Total revenues in 2Q24 were $140.2 million, a 49% increase compared to the same quarter last year. Top line growth during the quarter was mainly driven by a strong summer crop season in the Southern Hemisphere, with resumed product demand post-drought in Argentina.
• Operating profit for the period was $16.8 million with GAAP net income at $1.2 million, compared with $2.2 million and a loss of $8.4 million, respectively, for the year-ago quarter.
• Adjusted EBITDA¹ for the quarter was $24.1 million, more than double last year´s metric and reflecting top line growth and operational leverage.
• HB4 Wheat harvest completed, with resulting inventories in line to meet FY24 guidance.
• New US Patent awarded for HB4 Soy, extending technology protection until 2042.

________________________________
1	Adjusted EBITDA is a non-GAAP measure. See “Use of non-IFRS financial information” for information regarding our use of Adjusted EBITDA and its reconciliation from the most comparable financial measure.

MANAGEMENT REVIEW

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “Despite the headwinds the industry experienced in the quarter, we are pleased to announce record quarterly results. While we are not immune to the broader destocking process in several geographies, our portfolio of innovative products, secular growth drivers, and strong execution by our commercial teams allowed us to continue to outperform the industry and deliver our highest quarterly revenues yet.

We also continue to make progress on HB4, namely:

• Results from the wheat harvest in Argentina validate the competitiveness of our newer varieties against top commercial varieties
• Our soybean program in Brazil is advancing quickly with a 7x increase in hectares from last year
• We obtained new regulatory approvals for soybeans in Australia, New Zealand, Thailand and Malaysia, and for wheat in Thailand
• We were granted an additional patent by USPTO that should protect the HB4 Soy technology through at least 2042

Finally, our current wheat inventories are sufficient to meet our FY24 guidance for this business, allowing us to focus on commercial execution during the upcoming winter wheat planting season in South America.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted “Our quarterly performance continued to build on the momentum we highlighted in the first quarter. Revenue growth was broad-based, with all product families delivering solid results, and margin recovery across many categories that had been affected by record droughts last year in key geographies. Importantly, cost discipline allowed us to deliver strong operating leverage in the quarter, leading to record results. As we look forward to the second half of our fiscal year, we remain focused on delivering growth, by investing in our innovative portfolio, and advancing the global penetration of our novel technologies.”

KEY FINANCIAL METRICS
Table 1: 2Q24 & 1H24 Key Financial Metrics
(In millions of U.S. dollars)	2Q23	2Q24	% Change	1H23	1H24	% Change
Revenue by Segment
Crop Protection	53.3	71.2	34%	116.3	127.2	9%
Seed and Integrated Products	16.3	32.2	97%	30.2	54.5	81%
Crop Nutrition	24.7	36.8	49%	75.0	75.1	0%
Total Revenue	94.4	140.2	49%	221.5	256.8	16%
Gross Profit	35.3	51.5	46%	86.7	96.5	11%
Gross Margin	37.4%	36.7%	(62 bps)	39.1%	37.6%	(157 bps)
	2Q23	2Q24	% Change	1H23	1H24	% Change
GAAP net income or loss	(8.4)	1.2	115%	(4.5)	(1.4)	68%
Adjusted EBITDA1	10.3	24.1	134%	34.9	40.4	16%

2Q24 Summary: Total revenues were $140.2 million in 2Q24, a 49% year-over-year increase. Second fiscal quarter performance was largely shaped by a strong summer crop season in the Southern Hemisphere, with a normalization of weather conditions in Argentina, and overall higher demand for Bioceres’ technologies. All three business segments delivered strong growth compared to the year-ago quarter – which had been marked by a historic drought in Argentina – and contributed almost evenly to the $45.8 million increase in revenues. Top line growth in Crop Protection and Crop Nutrition was achieved with margin expansion as sales mix favored higher margin technologies. The increase in Seed and Integrated Products revenues was driven by higher HB4 seed and downstream sales, with a less favorable product mix compared to the year-ago period. Overall, the 49% increase in revenues was achieved with a steady gross margin of 37%. 2Q24 results build on 1Q24´s strong performance, and confirm double-digit growth rates for revenues, net income and adjusted EBITDA¹ for the first half of the fiscal year.

For a full version of Bioceres second quarter 2024 earnings release, click here.

SECOND QUARTER 2024 EARNINGS CONFERENCE CALL

Management will host a conference call and question-and-answer session, which will be accompanied by a presentation available during the webcast or accessed via the investor relations section of the company’s website.

To access the call, please use the following information:

Date:							Thursday, February 8, 2024
Time:							4:30 p.m. EST, 1:30 p.m. PST
US Toll Free dial-in number:							1-833-470-1428
International dial-in numbers:							Click here
Conference ID:							507024
Webcast:							Click here

Please dial in 5-10 minutes prior to the start time to register and join.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website here.

A replay of the call will be available through February 15, 2024, following the conference.

Toll Free Replay Number:							1-866-813-9403
International Replay Number:							+44 204 525 0658
Replay ID:							203673

About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation Crop Nutrition and Protection solutions. Through its HB4® program, the company is bringing digital solutions to support growers’ decisions and provide end-to-end traceability for production outputs. For more information, visit here.

Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include estimated financial data and, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses by governments, clients and the company, on our business, financial condition, liquidity position and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. These forward-looking statements include, but are not limited to, whether (i) the health and safety measures implemented to safeguard employees and assure business continuity will be successful, (ii) the uncertainty related to COVID-19 in the farming community will be short lived, and (iii) we will be able to coordinate efforts to ramp up inventories. Such forward-looking statements are based on management’s reasonable current assumptions, expectations, plans and forecasts regarding the company’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations or could affect the company’s ability to achieve its strategic goals, including the uncertainties relating to the impact of COVID-19 on the company’s business, operations, liquidity and financial results and the other factors that are described in the sections entitled “Risk Factors” in the company's Securities and Exchange Commission filings updated from time to time. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.

Unaudited Consolidated Statement of Comprehensive Income (Figures in million of U.S. dollars)
	Three-month period ended 12/31/2023	Three-month period ended 12/31/2022
Revenues from contracts with customers	140.3	94.6
Initial recognition and changes in the fair value of biological assets at the point of harvest	(0.1)	(0.1)
Cost of sales	(88.7)	(59.1)
Gross profit	51.5	35.3
% Gross profit	37%	37%
Operating expenses	(34.8)	(31.9)
Share of profit of JV	2.1	0.0
Change in net realizable value of agricultural products	(0.7)	(1.5)
Other income or expenses, net	(1.2)	0.3
Operating profit	16.8	2.2
Financial result	(7.3)	(10.0)
Profit/(loss) before income tax	9.6	(7.7)
Income tax	(8.3)	(0.7)
Profit/(loss) for the period	1.2	(8.4)
Other comprehensive profit	0.5	0.6
Total comprehensive profit/(loss)	1.7	(7.8)
Profit/(loss) for the period attributable to:
Equity holders of the parent	0.1	(8.2)
Non-controlling interests	1.1	(0.3)
	1.2	(8.4)
Total comprehensive profit/(loss) attributable to:
Equity holders of the parent	0.5	(7.8)
Non-controlling interests	1.2	(0.1)
	1.7	(7.8)
Weighted average number of shares (in million)
Basic	62.8	61.7
Diluted	63.9	61.7
For the three-month period ended December 31, 2022, diluted weighted average number of shares was equal to basic as the effect of potential ordinary shares would be antidilutive.

Unaudited Consolidated Statement of Financial Position (Figures in million of U.S. dollars)
ASSETS	12/31/2023	06/30/2023
CURRENT ASSETS
Cash and cash equivalents	24.4	48.1
Other financial assets	17.0	12.1
Trade receivables	199.7	158.0
Other receivables	24.9	28.8
Income and minimum presumed income taxes recoverable	1.1	9.4
Inventories	123.7	140.4
Biological assets	0.9	0.1
Total current assets	391.9	397.1
NON-CURRENT ASSETS
Other financial assets	0.4	0.4
Other receivables	1.6	2.5
Income and minimum presumed income taxes recoverable	0.0	0.0
Deferred tax assets	7.1	7.3
Investments in joint ventures and associates	42.4	39.3
Investment properties	3.8	3.6
Property, plant and equipment	71.4	67.9
Intangible assets	172.7	173.8
Goodwill	112.2	112.2
Right-of-use leased asset	13.7	13.9
Total non-current assets	425.4	420.9
Total assets	817.2	818.1

LIABILITIES
CURRENT LIABILITIES
Trade and other payables	164.0	150.8
Borrowings	113.5	107.6
Employee benefits and social security	8.2	9.6
Deferred revenue and advances from customers	23.5	24.9
Income tax payable	0.9	0.5
Consideration for acquisition	4.1	1.4
Lease liabilities	4.0	3.9
Total current liabilities	318.2	298.7
NON-CURRENT LIABILITIES
Borrowings	31.5	60.7
Deferred revenue and advances from customers	0.7	2.1
Investments in joint ventures and associates	0.1	0.6
Deferred tax liabilities	40.7	35.8
Provisions	0.5	0.9
Consideration for acquisitions	2.6	3.6
Secured notes	78.0	75.2
Lease liability	9.6	10.0
Total non-current liabilities	163.7	188.9
Total liabilities	482.0	487.6
EQUITY
Equity attributable to owners of the parent	300.5	298.6
Non-controlling interests	34.7	31.9
Total equity	335.3	330.5
Total equity and liabilities	817.2	818.1

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208046705/en/

Bioceres Crop Solutions

Paula Savanti

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.

FAQ

What were Bioceres Crop Solutions Corp.'s 2Q24 revenues?

Bioceres Crop Solutions Corp.'s 2Q24 revenues were $140.2 million, a 49% increase compared to the same quarter last year.

What was the GAAP net income for Bioceres Crop Solutions Corp. in 2Q24?

Bioceres Crop Solutions Corp.'s GAAP net income in 2Q24 was $1.2 million.

What was the adjusted EBITDA for Bioceres Crop Solutions Corp. in 2Q24?

Bioceres Crop Solutions Corp.'s adjusted EBITDA in 2Q24 was $24.1 million.

What was the percentage change in revenue for Bioceres Crop Solutions Corp. from 2Q23 to 2Q24?

The percentage change in revenue for Bioceres Crop Solutions Corp. from 2Q23 to 2Q24 was 49%.

What new patent was awarded to Bioceres Crop Solutions Corp. in 2Q24?

A new US Patent was awarded for HB4 Soy, extending technology protection until 2042.