Adjusted EBITDA for the nine-month period ended
March 31, 2019 increased by 94%. Management expects to exceed
guidance of $38 million for fiscal year ending June 30, 2019.
Over $35 million in debt recently termed-out
through multiple agreements.
Bioceres Crop Solutions Corp. (“Bioceres”) (NYSE American:
BIOX), a fully integrated provider of crop productivity solutions
company, today announced its consolidated financial results for the
three-month and nine-month periods ended March 31, 2019.
The company also announced that, as part of an ongoing debt
repositioning process, it has entered into two agreements that
enable the restructuring of $19.5 million of its current
liabilities into longer term facilities. These agreements are
additional to the $16 million offering of corporate bonds due 2021
completed in April by Rizobacter Argentina S.A., a subsidiary of
the Company.
“One-time transaction expenses associated with the closing of
our business combination are reported in this quarter,
deteriorating our profitability for the period. However, we are
pleased to confirm that the strong operational performance showed
by our business in the second half of 2018 has extended throughout
the first calendar quarter of 2019, historically our weakest sales
quarter. We have maintained focus on the execution of our growth
initiatives around micro-beaded fertilizers and international
expansion, with satisfactory results for the quarter. Our Adjusted
EBITDA for the period showed a significant improvement, and at this
time we estimate that our guidance of $38 million for the fiscal
year ending June 30th will be exceeded,” said Federico Trucco, CEO
of Bioceres.
Enrique López Lecube, CFO of Bioceres, said, “We are very
pleased with the results we have accomplished during the first
quarter of the calendar year. Considering these months have
historically been low season for our business, careful cost
management has been critical to reduce operating expenses net of
one-time transaction expenses compared to the same period in 2018.
Also, I throughout April and May of 2019 we have entered into
several debt agreements that strengthen our balance sheet by
restructuring current debt into longer term facilities, increasing
our average maturity by almost one year while bringing new capital
into the business. We will continue to explore additional
opportunities to further term out debt and ensure capital
availability for a growing business.”
Business and financial
highlights
Growth drivers
- Last-twelve months installed
capacity utilization rate of the micro-beaded fertilizer plant
was 21%, an almost two-fold increase from the same period in
2018.
- Inoculants doses aggregated
volume for the nine-month period ended March 31, 2019 increased
by 100% compared to the same period in 2018, mainly driven by
continuous growth in international subsidiaries and exports.
- Adjuvants aggregated volume for
the nine-month period ended March 31, 2019 increased by 6% compared
to the same period in 2018, mainly driven by growth in Brazil which
offset a decrease in sales in Argentina.
Third quarter financial overview
- Revenues decreased by 11% to
$18.7 million, compared to $20.9 million during the same period in
2018. The change in the translation mechanism from the application
of IAS 21 and IAS 29 had a negative impact of $5.2 million offset
by an increase of $3.0 million in revenues on an inflation neutral
basis.
- Gross profit decreased by 11% to
$7.7 million, compared to $8.7 million during the same period in
2018.
- Operating expenses net of
one-time transaction expenses were $5.4 million, a decrease of 33%
compared to the corresponding period in 2018 principally due to the
effects of the Argentine Peso devaluation year-over-year.
- Adjusted EBITDA increased $2.5
million to $3.3 million from $0.8 million during the same period in
2018, mainly driven by a decrease in operating expenses net of
one-time transaction expenses.
- Finance loss of $8.0 million
includes a net loss of $2.7 million related to net foreign exchange
differences generated by the effect of devaluation of the Argentine
Peso on certain dollar denominated balance sheet items, and net
gain of inflation effects on monetary items.
Nine-month period ended March 31, 2019 financial overview
- Revenues increased by 9% to
$110.7 million, compared to $101.9 million during the same period
in 2018. The change in the translation mechanism from the
application of IAS 21 and IAS 29 had a negative impact of $2.4
million offset by an increase of $11.3 million in revenues on an
inflation neutral basis.
- Gross profit increased by 25% to
$52.1 million, compared to $41.8 million during the same period in
2018.
- Adjusted EBITDA increased by 94%
to $32.6 million from $16.8 million during the same period in
2018.
- Finance loss of $22.6 million
includes a net loss of $4.9 million related to net foreign exchange
differences generated by the effect of devaluation of the Argentine
Peso on certain dollar denominated balance sheet items, and net
gain of inflation effects on monetary items.
Third quarter Revenues on an inflation neutral basis
- Revenues on an inflation neutral
basis is a key operational metric used by our management team
to assess year-over-year sales isolated from the effect of
variables such as inflation and exchange rates.
- Revenues on an inflation neutral
increased by 14% to $23.9 million, compared to $20.9 million during
the same period in 2018, mainly explained by growth in the crop
nutrition segment.
- Crop Protection revenues on an
inflation neutral basis increased by $0.7 million to $16.0 million
explained by higher adjuvants sales.
- Seed and integrated products
revenues on an inflation neutral basis decreased by $1.7 million to
$2.0 million, due to lower sales in seeds as well as seed treatment
packs.
- Crop nutrition revenues on an
inflation neutral basis increased by $4.0 million to $5.8 million,
explained by higher inoculants sales in Brazil and continuous
growth in micro-beaded fertilizers sales.
Debt restructuring
highlights
- On April 4, 2019 Rizobacter Argentina
S.A. completed the offering of $16 million in aggregate principal
amount of corporate bonds due 2021.
- On May 2, 2019 Rizobacter Argentina
S.A., executed the restructuring of $4.5 million of its short-term
borrowings into a 3-year maturity loan.
- On May 7, 2019 Bioceres Crop Solutions
Corp., Bioceres LLC and Bioceres S.A. entered into an agreement for
the restructuring of $15 million of the outstanding intercompany
loans into a facility with a 5-year maturity.
Table 1: Revenues on an inflation neutral basis
reconciliation
Three-month period ended March 31,
2019
Seed and integrated
products
Crop protection
Crop nutrition
Total Revenue as per statement of income
1,273,357 13,153,909 4,256,076 18,683,342 IAS 29 and IAS 21
adjustment 790,420 2,866,595 1,569,738
5,226,753 Revenues on an inflation neutral basis
2,063,777 16,020,504 5,825,814 23,910,095
Three-month period ended March 31,
2018
Seed and integrated
products
Crop protection
Crop nutrition
Total Revenue as per statement of income 3,727,062
15,322,086 1,867,105 20,916,253
Nine-month period ended March 31,
2019
Seed and integrated
products
Crop protection
Crop nutrition
Total Revenue as per statement of income 20,767,886
59,589,614 30,397,307 110,754,807 IAS 29 and IAS 21 adjustment
303,306 1,451,196 694,745
2,449,247 Revenues on an inflation neutral basis 21,071,192
61,040,810 31,092,052 113,204,054
Nine-month period ended
March 31, 2018
Seed and integrated
products
Crop protection
Crop nutrition
Total Revenue as per statement of income 21,298,538
61,024,142 19,600,811 101,923,491
Considering the recent completion of the business combination
between Bioceres LLC and Union Acquisition Corp., Bioceres will not
hold a conference call at this time. As previously announced, the
Company intends to host a conference call and webcast to
comprehensively discuss its full annual results and performance for
the fiscal year ending June 30, 2019 at the time of their
release.
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. is a fully integrated provider of
crop productivity solutions, including seeds, seed traits, seed
treatments, biologicals, high-value adjuvants and fertilizers.
Unlike most industry participants that specialize in a single
technology, chemistry, product, condition or stage of plant
development, Bioceres has developed a multi-discipline and
multi-product platform capable of providing solutions throughout
the entire crop cycle, from pre-planting to transportation and
storage. Bioceres’ platform is designed to cost effectively bring
high value technologies to market through an open architecture
approach. Bioceres’ headquarters and primary operations are based
in Argentina, which is a key end-market as well as one of the
largest markets globally for genetically modified crops. Through
its main operational subsidiary Rizobacter, Bioceres has a growing
and significant international presence, particularly in Brazil and
Paraguay.
For more information, visit www.Biocerescrops.com.
Forward-looking statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are subject to known and
unknown risks and uncertainties, many of which may be beyond our
control. We caution you that the forward-looking information
presented in this press release is not a guarantee of future
events, and that actual events may differ materially from those
made in or suggested by the forward-looking information contained
in this press release. Any forward-looking information presented
herein is made only as of the date of this press release, and we do
not undertake any obligation to update or revise any
forward-looking information to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise.
Non-IFRS financial information
We supplement the use of IFRS financial measures with non-IFRS
financial measures, including Adjusted EBITDA and revenues on an
inflation neutral basis measures.
The non-IFRS measures should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS and may be different from non-IFRS measures used by
other companies. In addition, the non-IFRS measures are not based
on any comprehensive set of accounting rules or principles.
Non-IFRS measures have limitations in that they do not reflect all
of the amounts associated with our results of operations as
determined in accordance with IFRS. This non-IFRS financial
measures should only be used to evaluate our results of operations
in conjunction with the most comparable IFRS financial
measures.
Adjusted EBITDA
We define Adjusted EBITDA as profit/(loss) exclusive of
financial income/(costs), income tax benefit/(expense),
depreciation, amortization, share-based compensation, inventory
purchase allocation and one-time transactional expenses.
We believe that Adjusted EBITDA provides useful supplemental
information to investors about us and our results. Adjusted EBITDA
is among the measures used by our management team to evaluate our
financial and operating performance and make day-to-day financial
and operating decisions. In addition, Adjusted EBITDA and similarly
titled measures are frequently used by our competitors, rating
agencies, securities analysts, investors and other parties to
evaluate companies in our industry. We also believe that Adjusted
EBITDA is helpful to investors because it provides additional
information about trends in our core operating performance prior to
considering the impact of capital structure, depreciation,
amortization and taxation on our results. Adjusted EBITDA should
not be considered in isolation or as a substitute for other
measures of financial performance reported in accordance with IFRS.
Adjusted EBITDA has limitations as an analytical tool,
including:
- Adjusted EBITDA does not reflect
changes in, including cash requirements for, our working capital
needs or contractual commitments;
- Adjusted EBITDA does not reflect our
financial expenses, or the cash requirements to service interest or
principal payments on our indebtedness, or interest income or other
financial income;
- Adjusted EBITDA does not reflect our
income tax expense or the cash requirements to pay our income
taxes;
- Although depreciation and amortization
are non-cash charges, the assets being depreciated or amortized
often will need to be replaced in the future, and Adjusted EBITDA
does not reflect any cash requirements for the replacements;
- Although share-based compensation is a
non-cash charge, Adjusted EBITDA does not consider the potentially
dilutive impact of share-based compensation; and
- Other companies may calculate Adjusted
EBITDA and similarly titled measures differently, limiting its
usefulness as a comparative measure.
We compensate for the inherent limitations associated with using
Adjusted EBITDA through disclosure of these limitations,
presentation of our combined financial statements in accordance
with IFRS and reconciliation of Adjusted EBITDA to the most
directly comparable IFRS measure, income/(loss) for the period or
year.
Revenues on an inflation neutral basis
We define revenues on an inflation neutral basis as revenues
excluding the impact of monthly inflationary adjustments and
monthly conversion adjustments from the application of IAS 21 and
IAS 29. Revenues on an inflation neutral basis is among the
measures used by our management team to evaluate our financial and
operating performance and make day-to-day financial and operating
decisions.
Reconciliation of this non-IFRS financial measure to the most
comparable IFRS financial measures can be found in the tables
included in this quarterly report.
The Company believes that reconciliation of revenues on an
inflation neutral basis to the most directly comparable IFRS
measure provides investors an overall understanding of our current
financial performance and its prospects for the future.
Specifically, we believe this non-IFRS measure provides useful
information to both management and investors by excluding monthly
inflationary adjustments and monthly conversion adjustments from
the application of IAS 21 and IAS 29 that may not be indicative of
our core operating results and business outlook.
Application of IAS 29
Argentina has been classified as a hyperinflationary economy
under the terms of IAS 29 beginning July 1, 2018. IAS 29 requires,
to adjust all non-monetary items in the statement of financial
position by applying a general price index from the day they were
booked to the end of the reporting period. At the same time, it
also requires that all items in the statement of income are
expressed in terms of the measuring unit current at the end of the
reporting period. Consequently, on a monthly basis, results of
operations for each reporting period are measured in Argentine
Pesos and adjusted for inflation by the applicable monthly
inflation rate each month. All amounts need to be restated by
applying the change in the general price index from the dates when
the items of income and expenses were initially recorded in the
financial statements. As a result, each monthly results of
operations are readjusted each successive month to reflect changes
in the monthly inflation rate.
After the restatement explained above, IAS 21 “The Effects of
Changes in Foreign Exchange Rates,” addresses the way results must
be translated under inflation accounting, stating that all amounts
shall be translated at the closing rate at the date of the most
recent statement of financial position. Accordingly, monthly
results of operations in Argentine Pesos, after adjustment for
inflation pursuant to IAS 29, as described above, must then be
converted into U.S. dollars at the closing exchange rate for such
monthly reported period. This conversion changes every prior
reported monthly statement of income in U.S. dollars as each
monthly amount is readjusted under IAS 29 for inflation per above
and reconverted at different exchange rates for each monthly
reported period under IAS 21. As a result, the impact of monthly
inflationary adjustments and monthly conversion adjustments vary
the results of operation month to month until year end.
Table 2: Consolidated statement of comprehensive
income
Nine-monthperiod ended
Nine-monthperiod ended
Three-monthperiod ended
Three-monthperiod ended
LTM periodended
03/31/2019 03/31/2018 03/31/2019
03/31/2018 03/31/2019 Total revenue
110,754,807 101,923,491 18,683,341 20,916,254 142,374,020 Cost of
sales (58,648,951) (60,115,955) (10,996,272) (12,249,675)
(75,627,547)
Gross profit 52,105,856
41,807,536 7,687,069 8,666,579
66,746,473 % Gross profit 47% 41% 41% 41% 47%
Operating expenses (27,638,361) (30,002,549) (9,869,152)
(8,075,875) (36,849,600) Share of profit (loss) of JV 306,386
(872,051) (506,207) (799,813) (958,364) Other income or expenses,
net (25,825) 299,245 272,737 12,473 288,319
Operating profit /
(loss) 24,748,056 11,232,181 (2,415,553)
(196,636) 29,226,828 Finance result
(22,611,318) (19,923,104) (8,065,011) (6,730,309) (43,638,930)
Profit / (Loss) before income tax 2,136,738
(8,690,923) (10,480,564) (6,926,945)
(14,412,102) Income tax (3,445,656) 7,378,351
1,605,093 1,522,299 104,510
Loss for the period
(1,308,918) (1,312,572) (8,875,471)
(5,404,646) (14,307,592) Other comprehensive
loss (5,587,090) (19,124,269) (3,075,367) (7,473,158) (18,296,375)
Total comprehensive loss (6,896,008)
(20,436,841) (11,950,838) (12,877,804)
(32,603,967) Profit / (loss) for the period
attributable to: Equity holders of the parent (3,442,406)
(2,314,544) (7,671,412) (3,442,089) (12,167,395) Non-controlling
interests 2,133,488 1,001,972 (1,204,059) (1,962,557) (2,140,197)
(1,308,918) (1,312,572) (8,875,471) (5,404,646) (14,307,592)
Total comprehensive income / (loss) attributable to: Equity
holders of the parent (7,581,626) (14,936,797) (9,840,204)
(8,752,354) (26,571,901) Non-controlling interests 685,618
(5,500,044) (2,110,634) (4,125,450) (6,032,066) (6,896,008)
(20,436,841) (11,950,838) (12,877,804) (32,603,967)
Loss per
share Basic and diluted loss attributable to ordinary equity
holders of the parent (0.12) (0.08) (0.28) (0.13) (0.44)
Table 3: Adjusted EBITDA reconciliation
The table below provides a reconciliation of our loss for the
period to Adjusted EBITDA.
Reconciliation of adjusted EBITDA:
Nine-monthperiod ended
Nine-monthperiod ended
Three-monthperiod ended
Three-monthperiod ended
LTM periodended
Loss for the period (1,308,918) (1,312,572) (8,875,471)
(5,404,646) (14,307,592) Income tax (benefit)/expense 3,445,656
(7,378,351) (1,605,093) (1,522,299) (104,510) Finance results
22,611,318 19,923,104 8,065,011 6,730,309 43,638,930 Depreciation
of property, plant and equipment 1,782,683 1,614,784 697,852
454,825 2,398,780 Amortization of intangible assets 1,495,522
1,677,543 503,230 541,866 1,959,455 Inventory purchase price
allocation charge - 2,257,378 - - - Stock-based compensation
charges 71,231 34,219 62,310 - 67,017 Transaction expenses
4,479,913 - 4,479,913 - 4,479,913
Adjusted EBITDA
32,577,405 16,816,105 3,327,752 800,055
38,131,993
Table 4: Consolidated statement of financial position
ASSETS
03/31/2019 06/30/2018
CURRENT ASSETS Cash and cash equivalents 6,139,337 2,215,103
Other financial assets 5,324,516 4,550,847 Trade receivables
68,408,216 52,888,427 Other receivables 5,213,401 4,240,205 Income
and minimum presumed income taxes recoverable 2,151,617 2,082,269
Inventories 23,240,074 19,366,001
Total current assets
110,477,161 85,342,852
NON-CURRENT ASSETS Other
financial assets 336,949 243,358 Other receivables 812,919
4,979,507 Income and minimum presumed income taxes recoverable
84,337 126,653 Deferred tax assets 934,851 5,601,821 Investments in
joint ventures and associates 25,641,028 19,072,055 Property, plant
and equipment 39,955,867 40,177,146 Intangible assets 33,913,458
26,657,345 Goodwill 20,937,480 14,438,027
Total non-current
assets 122,616,889 111,295,912
Total assets 233,094,050
196,638,764
LIABILITIES
03/31/2019 06/30/2018 CURRENT LIABILITIES
Trade and other payables 40,676,909 27,708,830 Borrowings
93,912,237 65,308,928 Employee benefits and social security
3,492,543 4,411,713 Deferred revenue and advances from customers
897,035 1,007,301 Income and minimum presumed income taxes payable
- 2,569 Government grants 3,100 17,695 Financed payment -
Acquisition of business 5,740,746 20,223,590
Total current
liabilities 144,722,570 118,680,626
NON-CURRENT
LIABILITIES Borrowings 16,938,555 25,708,205 Government grants
7,932 15,532 Investments in joint ventures and associates 1,995,995
2,012,298 Deferred tax liabilities 15,336,866 13,591,942 Provisions
436,593 845,486 Financed payment - Acquisition of business
-
2,651,019
Total non-current liabilities 34,715,941
44,824,482
Total liabilities 179,438,511 163,505,108
EQUITY
Equity attributable to owners of the parent 40,055,429
13,713,484
Non-controlling interests 13,600,110 19,420,172
Total equity 53,655,539 33,133,656
Total
equity and liabilities 233,094,050 196,638,764
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190523005375/en/
Investor relationsLaura
Amelonginvestorrelations@Biocerescrops.comhttps://Biocerescrops.com/investor-contact/
Bioceres Crop Solutions (AMEX:BIOX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bioceres Crop Solutions (AMEX:BIOX)
Historical Stock Chart
From Apr 2023 to Apr 2024