Adjusted EBITDA up 58% to $8.8 million in 4Q19
and 85% to $41.3 million in FY19 HB4® Drought Tolerant Soybean
technology approved by the USDA
Bioceres Crop Solutions Corp. (“Bioceres”) (NYSE
American:BIOX), a fully integrated provider of crop
productivity solutions, announced today its unaudited consolidated
financial results for the three-month period and fiscal year ended
June 30, 2019. Financial results are expressed in U.S. dollars and
are presented in accordance with International Financial Reporting
Standards.
4Q19 Business and Financial
Highlights
- Revenues up 57.7% year over year (YoY) to $49.9 million (+12.1%
on a comparable basis) as the Company continues to ramp up existing
capacity, driving sales growth both in Argentina and abroad.
- Adjusted EBITDA up 57.8% YoY to $8.8 million; Adjusted EBITDA
margin was stable at 17.6% for the quarter, reaching 25.7% for the
full fiscal year ended June 30, 2019.
- Net debt to LTM EBITDA declined to 2.25x as of June 30, 2019
from 4.34x as of June 30, 2018.
- On August 8, 2019 HB4® Drought Tolerant Soybean technology was
approved by the USDA. With this approval Verdeca, a joint venture
between Bioceres Crop Solutions and Arcadia Biosciences, has now
achieved regulatory approvals covering more than 80% of the global
soybean market.
Commenting on the results for the quarter, Mr. Federico
Trucco, CEO of Bioceres, said, “I am pleased to report that in Q4
and in fiscal year 2019 we made good progress on our strategic
objectives, including increasing international sales of our
biological products and adjuvants, along with a significant ramp-up
of our micro-beaded fertilizers business. As a result, Adjusted
EBITDA increased 85% year over year, exceeding our full year
expectations. We are extremely pleased also to have recently
received USDA approval for commercialization of our HB4® Drought
Tolerant Soybean. Without minimizing the importance of our robust
financial performance, this USDA approval enables us to enter the
most valuable soybean geography in the world, representing a
meaningful historical milestone for our Company and its mission in
helping global agriculture transition towards carbon neutrality. I
am truly excited about where we are today and how we are positioned
for future growth.”
Mr. Enrique Lopez Lecube, CFO of Bioceres, said, “I am pleased
with the performance and profitability of our business throughout
the quarter and the fiscal year. While there were some transitory
factors that boosted our financial results in the most recent year
(and were headwinds in the prior year), we are excited about
continuing the momentum in the business as we prepare for the
formal launch of HB4 soybean. There has been volatility in the
Argentine Peso in recent weeks, but a combination of a largely
dollarized business, significantly improved financial leverage, and
healthy farmer balance sheets leave us in a good position to
weather macro-economic volatility in the region. Importantly, we
made progress in extending debt maturities in FY2019 and will
continue to do so opportunistically going forward.”
REVIEW OF OPERATING PERFORMANCE
Inoculants doses aggregated volume for the twelve-month
period ended June 30, 2019 increased 73% compared to the same
period in 2018, driven by growth in international subsidiaries and
exports.
Adjuvants aggregated volume for the twelve-month period
ended June 30, 2019 decreased 17% compared to the same period in
2018, following a shift from high volume, low margin products into
higher margin adjuvants in Argentina. By contrast, sales volumes in
Brazil increased 66% in the period as the Company continues to
execute its growth strategy in that country.
Installed capacity utilization of the micro-beaded fertilizer
plant for the twelve-month period ended June 30, 2019 reached
22%, a 73% increase from that same period in 2018 reaching a total
of 11.1 k tons of fertilizer sold throughout the fiscal year.
REVIEW OF FOURTH QUARTER 2019 RESULTS
Comparable Revenues and Comparable Gross Profit are key
operational metrics used by the management team to assess the
Company's underlying financial and operating performance. The
Company has introduced the term “Comparable” to reflect the result
of a given metric excluding the impact of IAS 29.
For comparison purposes, the impact of adopting IAS 29 is
presented separately in each of the applicable sections of this
earnings release, in a column denominated “As Reported”. For
further information please review Application of IAS 29
section.
Revenues
Table 1: 4Q Revenues by Segment
(Figures in US dollars)
As Reported
IAS 29
Comparable
4Q18
4Q19
% Chg.
4Q19
% Chg.
Revenue by segment
Crop protection
16,631,529
30,609,790
84.0%
(8,852,258)
21,757,532
30.8%
Seed and integrated products
5,504,169
4,544,242
(17.4%)
(1,547,278)
2,996,964
(45.6%)
Crop nutrition
9,483,515
14,696,457
55.0%
(3,994,906)
10,701,551
12.8%
Total revenue
31,619,213
49,850,489
57.7%
(14,394,442)
35,456,047
12.1%
Revenues increased 57.7% to $49.9 million in 4Q19,
compared to $31.6 million during the same period in 2018.
Comparable Revenues for the quarter, excluding the impact
of IAS29 as explained above, increased 12.1% YoY reflecting higher
revenues in the crop protection and crop nutrition segments,
partially offset by lower revenues in seed and integrated
products:
- Crop Protection Comparable Revenues increased 30.8% YoY,
or $5.1 million, to $21.8 million, driven by higher sales of seed
treatment insecticides and fungicides, stored grain products, and
formulation services to third parties.
- Seed and Integrated Products Comparable Revenues
declined 45.6% YoY, or $2.5 million, to $3.0 million reflecting
farmers' delayed purchase decisions for winter crops seed treatment
packs, which was partially offset by higher seeds sales.
- Crop Nutrition Comparable Revenues increased 12.8% YoY,
or $1.2 million, to $10.7 million driven by the continuous growth
in micro-beaded fertilizers sales, partially offset by delayed
inoculants sales in Brazil.
Table 2: Fiscal Year Revenues by Segment
(Figures in US dollars)
As Reported
IAS 29
Comparable
FY18
FY19
% Chg.
FY19
% Chg.
Revenue by segment
Crop protection
77,655,671
90,199,405
16.2%
(6,701,062)
83,498,343
7.5%
Seed and integrated products
26,802,707
25,312,127
(5.6%)
(1,943,970)
23,368,157
(12.8%)
Crop nutrition
29,084,326
45,093,764
55.0%
(3,300,161)
41,793,603
43.7%
Total revenue
133,542,704
160,605,296
20.3%
(11,945,193)
148,660,103
11.3%
Revenues increased 20.3% to $160.6 million in FY19,
compared to $133.5 million during the same period in 2018.
Comparable Revenues for FY19 increased 11.3% YoY to
$148.7 million, mainly driven by growth in the crop nutrition and
crop protection segments which offset lower seed and integrated
product sales:
- Crop Protection Comparable Revenues increased 7.5%, or
$5.8 million, to $83.5 million mainly driven by higher adjuvants
sales in Brazil.
- Seed and Integrated Products Comparable Revenues
declined by 12.8%, or $3.4 million, to $23.4 million, reflecting a
slight decrease in seed treatment packs and lower seed sales as a
result of a restructuring process in Bioceres Semillas SA, the
Company’s proprietary seed commercial channel, in preparation for
the upcoming HB4 launch.
- Crop Nutrition Comparable Revenues increased 43.7% YoY,
or $12.7 million, to $41.8 million, driven by growth of
international inoculants sales and continued growth of micro-beaded
fertilizers sales in Argentina, Brazil, Paraguay and Bolivia.
Gross Profit
Table 3: 4Q Gross Profit by Segment
(Figures in US dollars)
As Reported
IAS 29
Comparable
4Q18
4Q19
% Chg.
4Q19
% Chg.
Gross profit by segment
Crop protection
6,996,668
11,679,799
66.9%
(2,876,229)
8,803,570
25.8%
Seed and integrated products
3,337,741
1,969,771
(41.0%)
(251,719)
1,718,052
(48.5%)
Crop nutrition
4,306,208
7,884,989
83.1%
(1,638,095)
6,246,894
45.1%
Total Gross profit
14,640,617
21,534,559
47.1%
(4,766,043)
16,768,516
14.5%
% Gross profit
46.3%
43.2%
(310) bps
47.3%
99 bps
Gross profit increased 47.1% YoY to $21.5 million in
4Q19, compared to $14.6 million during the same period in 2018.
Comparable Gross profit increased 14.5% to $16.8 million
in 4Q19 from $14.6 million in the year-ago quarter, with gross
margin expanding 99 basis points to 47.3% from 46.3% in the same
period in 2018:
- Crop Protection Comparable Gross profit increased $1.8
million YoY to $8.8 million representing a gross margin of
40.5%.
- Seed and Integrated Products Comparable Gross profit
declined $1.6 million YoY to $1.7 million, with a gross margin of
57.3%, as a result of the previously discussed restructuring
program.
- Crop Nutrition Comparable Gross profit increased $1.9
million to $6.2 million due to the micro-beaded fertilizer ramp-up
and inoculants sales abroad, with a gross margin of 58.4%.
Table 4: FY Gross Profit by Segment
(Figures in US dollars)
As Reported
IAS 29
Comparable
FY18
FY19
% Chg.
FY19
% Chg.
Gross profit by segment
Crop protection
28,202,504
36,220,014
28.4%
1,543,675
37,763,689
33.9%
Seed and integrated products
13,388,949
15,528,390
16.0%
(205,525)
15,322,865
14.4%
Crop nutrition
14,856,700
21,892,011
47.4%
93,957
21,985,968
48.0%
Total Gross profit
56,448,153
73,640,415
30.5%
1,432,107
75,072,522
33.0%
% Gross profit
42.3%
45.9%
358 bps
50.5%
823 bps
During FY19 gross profit increased 30.5% YoY to $73.6
million. Comparable gross profit increased 33.0% to $75.1
million in FY19 from $56.5 million in the year-ago period. As a
result of a significant depreciation of the Argentine Peso during
the fiscal year, manufacturing costs measured in US Dollars
decreased, helping to drive a gross margin expansion of 823 basis
points to 50.5% from 42.3% in the same period in 2018:
- Crop Protection Comparable Gross profit increased by
$9.6 million to $37.8 million. This resulted in a gross margin
expansion of 891 basis points to 45.2% from 36.3% in FY18, driven
by a shift towards higher margin adjuvants and reduced
manufacturing costs as a result of Argentine Peso
depreciation.
- Seed and Integrated Products Comparable Gross profit
increased $1.9 million to $15.3 million. Gross margin was 65.6% up
from 50.0% in the prior fiscal year, mainly driven by lower
manufacturing costs as a result of Argentine Peso
depreciation.
- Crop Nutrition Comparable Gross profit increased $7.1
million to $22.0 million. Gross margin increased 152 basis points
to 52.6% from 51.1% in FY18. Benefits on gross margins from reduced
manufacturing costs were partially offset by a change in product
mix, with increased share of micro-beaded fertilizers relative to
inoculants.
Selling, General and Administrative Expenses
SG&A in 4Q19 was $13.7 million compared to $8.1 million in
the corresponding period in 2018. As a percentage of revenues,
SG&A increased 258 basis points to 27% in 4Q19, from 24% in
4Q18.
For FY19, SG&A was $39.2 million, compared to $35.3 million
in the same period in the prior year. Excluding one-time
transaction expenses related to the merger with Union Acquisition
Corp. of $4.5 million that took place in 3Q19, SG&A declined by
$0.6 million representing 21.6% of sales, down from 26.4% in FY18,
mainly driven by the steep depreciation of Argentine Peso.
Research & Development
R&D expenses include ongoing efforts to maintain and
continuously update the Company’s existing product portfolio.
R&D expenses in the quarter were up by $0.5 million YoY to $1.6
million. For the full fiscal year, R&D expenses were $3.7
million, compared with $4.0 million in FY18, largely driven by the
steep depreciation of the Argentine Peso.
Also, throughout FY19 the Company invested $1.9 million in
R&D activities related to intangible assets and JVs. These
investments are additional to the R&D expenses described
above.
Adjusted EBITDA & Adjusted EBITDA Margin
Adjusted EBITDA increased 57.8% or $3.2 million YoY to $8.8
million in 4Q19 from $5.6 million during the same period of 2018.
Adjusted EBITDA margin for the quarter was stable at 17.6% YoY.
During FY19 Adjusted EBITDA increased 84.8% to $41.3 million
from $22.4 in FY18. The margin expanded by 901 basis points to
25.7% in FY19 compared to 16.8% in FY18, driven by strong sales
growth and solid cost control allowing for operating leverage. The
significant devaluation of the Argentine Peso had positive impacts
on both gross margin and SG&A.
Table 5: Adjusted EBITDA Reconciliation and Adjusted EBITDA
Margin
(Figures in US dollars)
4Q18
4Q19
% Chg.
FY18
FY19
% Chg.
Loss for the year
(12,998,674)
(1,246,676)
(90.4%)
(14,311,246)
(16,358,891)
14.3%
Income tax (benefit)/expense
(3,550,166)
3,540,628
(199.7%)
(10,928,517)
6,986,284
(163.9%)
Finance results
21,027,612
5,043,602
(76.0%)
40,950,716
41,458,217
1.2%
Depreciation of property, plant and
equipment
616,097
667,573
8.4%
2,230,881
2,450,256
9.8%
Amortization of intangible assets
463,933
881,398
90.0%
2,141,476
2,376,920
11.0%
Inventory purchase price allocation
charge
-
-
-
2,257,378
-
-
Stock-based compensation charges
(4,214)
(174,058)
4030.5%
30,005
(102,827)
(442.7%)
Transaction expenses
-
55,334
-
-
4,535,247
-
Adjusted EBITDA
5,554,588
8,767,801
57.8%
22,370,693
41,345,206
84.8%
Adjusted EBITDA Margin
17.6%
17.6%
2 bps
16.8%
25.7%
899 bps
Financial Income and Loss
Table 6: Net finance result
(Figures in US dollars)
4Q19
4Q18
% Chg.
FY19
FY18
% Chg.
Exchange differences
(2,376,932)
(16,298,492)
585.7%
(17,845,189)
(23,829,412)
33.5%
Interest expenses
(6,379,524)
(3,907,602)
(38.7%)
(22,783,441)
(15,560,578)
(31.7%)
Financial commissions
(537,496)
(716,623)
33.3%
(1,578,292)
(1,628,075)
3.2%
Other finance result
114,676
(104,895)
(191.5%)
406,310
67,349
(83.4%)
Gain for cancellation of purchase
option
-
-
-
6,582,849
-
(100.0%)
Share based payment cost of listing
shares
-
-
-
(20,893,789)
-
(100.0%)
Net gain of inflation effect on monetary
items
3,521,245
-
(100.0%)
14,653,335
-
(100.0%)
Total net finance result
(5,658,031)
(21,027,612)
271.6%
(41,458,217)
(40,950,716)
-1.2%
Interest expenses from financial debt obligations represent the
main financial metric that management uses to assess cost of
financing. Exchange difference income and expenses are believed to
have a limited impact on the underlying business, as a significant
portion of both cash flows and financial debt obligations are in US
dollars.
During 4Q19 the Company reported a net financial loss of $5.6
million compared to a net financial loss of $21.0 million in 4Q18,
principally due to a decrease in exchange differences of $13.9
million caused by FX variations in Argentina during those periods,
offset by an increase of $2.1 million in interest and financial
expenses.
For FY19, Bioceres reported a net financial loss of $42.1
million compared to $41.0 million in FY18. Excluding a one-time
$14.3 million accounting registration loss related to the merger
with Union Acquisition Corp and a $14.5 million net gain of
inflation effects on monetary items from the application of IAS 29,
interest expense on financial debt obligations increased by $7.2
million, partially offset by lower exchange differences of $5.5
million. Increase in interest expense on financial debt obligations
compared to FY18 was mainly driven by an increase in interest rates
paid for debt and financial services in Argentina.
Balance Sheet & Cash Flow
Table 7: Capitalization and Debt Ratio
(Figures in US dollars)
As of June 30,
2018
2019
Total Debt 1
- Short-Term Debt
75,289,314
63,496,517
- Long-Term Debt
28,359,224
37,079,521
Cash and Cash Equivalents
(2,215,103)
(3,266,168)
Restricted short-term deposit
(4,298,101)
(4,327,275)
Total Net Debt
97,135,334
92,982,595
Equity attributable to equity holders of
the parent
13,713,484
47,117,157
Equity attributable to non-controlling
interests
19,420,172
14,793,003
Capitalization
130,268,990
154,892,755
LTM Adjusted EBITDA
22,370,693
41,345,206
Net Debt /LTM Adjusted EBITDA
4.34x
2.25x
1- Excludes discounted checks and includes outstanding
installments of financed payment from the acquisition of
Rizobacter.
Cash and cash equivalents on June 30, 2019 was $3.3
million. During the quarter, cash and cash equivalents increased by
$1.1 million, while the total debt balance decreased by $4.1
million to $93.0 million as of June 30, 2019. During the quarter,
the Company undertook the following financial transactions:
- 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.
Net Debt to LTM EBITDA declined to 2.25x at the end of
4Q19, compared with 4.34x as of June 2018. This was driven by both
strong EBITDA growth and strong cash flow.
During 4Q19, the Company made capital expenditures of
$0.2 million compared to $0.6 million in 4Q18. For fiscal year
2019, total capital expenditures amounted to $2.0 million. Bioceres
has already undertaken significant investments in modern production
capacity and new product lines which provide a solid platform for
near and longer-term growth. Therefore, funds invested in the
quarter and full year were primarily used for maintenance
capex.
SUBSEQUENT EVENTS
On August 8, 2019, the Company announced that Verdeca, a joint
venture between BCS Holding Inc., a wholly owned subsidiary of
Bioceres and Arcadia Biosciences, Inc. (Nasdaq:RKDA) successfully
completed the regulatory review process and received approval from
the U.S. Department of Agriculture (USDA) for HB4® drought tolerant
soybean, which will allow for commercialization in the U.S. market.
The approval comes two years after the U.S. Food and Drug
Administration’s (FDA’s) approval of HB4® trait in 2017. More than
30 million of the world’s soybean hectares are grown in the United
States. With USDA approval, the HB4 trait now has regulatory
approval in more than 80 percent of the global soybean market. The
HB4 trait has already been approved in Argentina and Brazil, with
regulatory submissions currently under consideration by China,
Paraguay, Bolivia and Uruguay. Import approval from China is needed
for commercial launch in Argentina and is now expected in 2020.
4Q19 EARNINGS CONFERENCE CALL
When:
September 16, 2019
Times:
8:30 a.m. Eastern time,
Who:
Mr. Federico Trucco, Chief Executive
Officer
Mr. Enrique Lecube, Chief Financial
Officer
Mr. Maximo Goya, Investor Relations
Leader
Dial-in:
1-844-839-9680 (U.S. domestic);
1-647-689-2346 (International)
Conference ID:
Bioceres
Webcast:
CLICK HERE
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NYSE American:BIOX) is a fully
integrated provider of crop productivity technologies designed to
enable the transition of agriculture towards carbon neutrality. 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 https://investors.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
The Company supplements the use of IFRS financial measures with
non-IFRS financial measures, including Adjusted EBITDA, Adjusted
EBITDA Margin, Net debt, Comparable revenues and Comparable gross
profit which exclude the impact of IAS29 as explained below.
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 the Company’s results of operations in
conjunction with the most comparable IFRS financial measures.
Adjusted EBITDA and Adjusted EBITDA Margin
The Company defines 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.
Management believes that Adjusted EBITDA provides useful
supplemental information to investors about the Company and its
results. Adjusted EBITDA is among the measures used by the
management team to evaluate the Company’s 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 competitors, rating agencies, securities
analysts, investors and other parties to evaluate companies in the
same industry. Management also believes that Adjusted EBITDA is
helpful to investors because it provides additional information
about trends in the Company’s core operating performance prior to
considering the impact of capital structure, depreciation,
amortization and taxation on 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, working capital needs or contractual
commitments;
- Adjusted EBITDA does not reflect financial expenses, or the
cash requirements to service interest or principal payments on
indebtedness, or interest income or other financial income;
- Adjusted EBITDA does not reflect income tax expense or the cash
requirements to pay 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.
The Company compensates for the inherent limitations associated
with using Adjusted EBITDA through disclosure of these limitations,
presentation in the 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.
Comparable figures or Figures ex-IAS 29 (Comparable revenue and
Comparable gross margin)
Comparable figures or Figures ex-IAS 29 result from dividing
nominal Argentine pesos for the Argentine operations by the average
foreign exchange rate of the Argentine Peso against the US Dollar
in the period.
For comparison purposes, the impact of adopting IAS 29 is
presented separately in each of the applicable sections of this
earnings release, in a column denominated “IAS 29”. The IAS 29
adjustment results from the combined effect of: (i) the indexation
to reflect changes in purchasing power on results against a
dedicated line in the financial results, and (ii) the difference
between the translation of results at the closing exchange rate of
June 30, 2019 and the translation using the average year-to-date
rate on the reported period, as applicable to non-inflationary
economies.
Net Debt and Net Debt to Adjusted EBITDA
Net debt is defined as the sum of long and short-term borrowings
and finance payment from business combinations, less cash and cash
equivalents and restricted short-term deposit. This measure is used
by management and investment analysts and management believes it
shows the financial strength of the Company. Management is
consistently tracking the Company’s leverage position and its
ability to repay and service the debt obligations over time.
Therefore, management has set a leverage ratio target that is
measured by net debt divided by Adjusted EBITDA.
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,
adjusting 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.
-Tables to Follow-
Unaudited Consolidated Statement of Comprehensive Income
(Figures in US dollars)
Fiscal year ended
Fiscal year ended
Three-month period ended
Three-month period ended
06/30/2019
06/30/2018
06/30/2019
06/30/2018
Total revenue
160,605,296
133,542,704
49,850,489
31,619,213
Cost of sales
(86,964,881)
(77,094,551)
(28,315,930)
(16,978,596)
Gross profit
73,640,415
56,448,153
21,534,559
14,640,617
% Gross profit
46%
42%
43%
46%
Operating expenses
(42,933,191)
(39,213,788)
(15,294,830)
(9,211,239)
Share of profit (loss) of JV
1,012,486
(2,136,801)
706,100
(1,264,750)
Other income or expenses, net
365,900
613,389
391,725
314,144
Operating profit / (loss)
32,085,610
15,710,953
7,337,554
4,478,772
Finance result
(41,458,217)
(40,950,716)
(5,043,602)
(21,027,612)
Profit / (Loss) before income
tax
(9,372,607)
(25,239,763)
2,293,952
(16,548,840)
Income tax
(6,986,284)
10,928,517
(3,540,628)
3,550,166
Loss for the year
(16,358,891)
(14,311,246)
(1,246,676)
(12,998,674)
Other comprehensive loss
3,730,306
(31,833,554)
9,317,396
(12,709,285)
Total comprehensive loss
(12,628,585)
(46,144,800)
8,070,720
(25,707,959)
Profit / (loss) for the period
attributable to:
Equity holders of the parent
(18,369,045)
(11,039,533)
(1,123,342)
(8,724,989)
Non-controlling interests
2,010,154
(3,271,713)
(123,334)
(4,273,685)
(16,358,891)
(14,311,246)
(1,246,676)
(12,998,674)
Total comprehensive income / (loss)
attributable to:
Equity holders of the parent
(14,507,096)
(33,927,072)
6,877,827
(18,990,275)
Non-controlling interests
1,878,511
(12,217,728)
1,192,893
(6,717,684)
(12,628,585)
(46,144,800)
8,070,720
(25,707,959)
Loss per share
Basic and diluted loss attributable to
ordinary equity holders of the parent
(0.60)
(0.39)
(0.04)
(0.31)
Unaudited Consolidated Statement of Financial Position
(Figures in US dollars)
ASSETS
06/30/2019
06/30/2018
CURRENT ASSETS
Cash and cash equivalents
3,266,168
2,215,103
Other financial assets
4,683,508
4,550,847
Trade receivables
59,237,620
52,888,427
Other receivables
1,981,055
4,240,205
Income and minimum presumed income taxes
recoverable
1,263,795
2,082,269
Inventories
27,592,582
19,366,001
Total current assets
98,024,728
85,342,852
NON-CURRENT ASSETS
Other financial assets
376,413
243,358
Other receivables
1,560,310
4,979,507
Income and minimum presumed income taxes
recoverable
1,184
126,653
Deferred tax assets
1,587,220
5,601,821
Investments in joint ventures and
associates
25,321,028
19,072,055
Property, plant and equipment
43,834,548
40,177,146
Intangible assets
39,616,426
26,657,345
Goodwill
29,804,715
14,438,027
Total non-current assets
142,101,844
111,295,912
Total assets
240,126,572
196,638,764
LIABILITIES
06/30/2019
06/30/2018
CURRENT LIABILITIES
Trade and other payables
40,456,014
27,708,830
Borrowings
66,477,209
65,308,928
Employee benefits and social security
5,357,218
4,411,713
Deferred revenue and advances from
customers
1,074,463
1,007,301
Income and minimum presumed income taxes
payable
142,028
2,569
Government grants
2,110
17,695
Financed payment - Acquisition of
business
2,826,611
20,223,590
Total current liabilities
116,335,653
118,680,626
NON-CURRENT LIABILITIES
Borrowings
37,079,521
25,708,205
Government grants
8,098
15,532
Investments in joint ventures and
associates
1,970,903
2,012,298
Deferred tax liabilities
18,945,382
13,591,942
Provisions
1,015,344
845,486
Financed payment - Acquisition of
business
-
2,651,019
Private warrants
2,861,511
-
Total non-current liabilities
61,880,759
44,824,482
Total liabilities
178,216,412
163,505,108
EQUITY
Equity attributable to owners of the
parent
47,117,157
13,713,484
Non-controlling interests
14,793,003
19,420,172
Total equity
61,910,160
33,133,656
Total equity and liabilities
240,126,572
196,638,764
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190913005508/en/
Investor Relations Maximo Goya, Investor Relations
+54-341-4861100 maximo.goya@biocerescrops.com
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