2Q22 Comparable Revenues up 89% YoY –
Baseline Business Adjusted EBITDA up 48% in the first two quarters,
reaching $61.8M LTM
HB4 Wheat maintains performance as grower
exposure increases more than 8X. Brazil regulatory approval and
inventory levels in place for 4Q22 limited launch
HB4 Wheat opportunity estimated at $195M at
peak revenues in current market, with incremental EBITDA target of
$15-20M set for FY2024
Bioceres Crop Solutions Corp. (“Bioceres”) (NASDAQ:
BIOX), a fully integrated provider of crop productivity
solutions designed to enable the transition of agriculture towards
carbon neutrality, has reported financial results for the second
quarter 2022, ended December 31, 2021. Financial results are
expressed in US dollars and are presented in accordance with
International Financial Reporting Standards. All comparisons in
this announcement are year-over-year (“YoY”), unless otherwise
noted.
FISCAL SECOND QUARTER FINANCIAL HIGHLIGHTS
- Comparable Revenues increased 89% in 2Q22, to $90.3
million, up from $47.7 million in the year-ago quarter, resulting
in an accumulated growth of 72% year to date. Growth in revenues
was mainly driven by inoculants across various geographies
globally, seed treatment packs in South America, and a successful
high-season marketing of micro-beaded fertilizers in Argentina. The
combined growth in Europe and the United States reached 146% YoY
during the quarter.
- Comparable Gross Profit for the quarter was up 69%,
compared to the year-ago quarter, reaching $42.2 million.
Year-to-date comparable gross profit reached $70.1 million, up 56%
compared to fiscal year 2021. With all regions' nominally growing
contributions to gross profit compared to the year-ago quarter,
Europe and the United States stood out, representing approximately
15% of total gross profit, up from 11% in 2Q21.
- LTM Adjusted EBITDA for the Baseline Business, which
excludes HB4 pre-launch costs, reached $61.8 million, up 46%
compared to the year-ago metric, and 15% on a quarterly sequential
basis. LTM HB4 pre-launch expenses comprised of SG&A, inventory
ramp-up and data acquisition costs, totaled $6.2 million -
inclusive of a $1.9 million negative IAS29 accounting adjustment to
HB4 grain inventories - leading to a reported LTM Adjusted EBITDA
of $55.6 million. HB4 pre-launch costs are expensed as incurred and
accounted for in SG&A and Other Income or Loss, both line items
with an impact in reported Adjusted EBITDA. Upon completion of the
harvest season, HB4 Wheat seed inventory has reached the required
level for a limited commercial launch, stabilizing the run rate of
inventory ramp-up costs.
- Bioceres’ subsidiary Rizobacter Argentina S.A.
completed a $20.0 million public offering of series VII
corporate bonds, which mature in December 2024 and pay an
annual nominal interest rate of 1.49%. Proceeds allowed Bioceres to
maintain a strong liquidity position of $39.9 million by
quarter-end and increased the long-term portion of total debt from
63% to 74%, stabilizing the average cost of debt at 7.1%. Net
Financial Debt to LTM Adjusted EBITDA ratio decreased from 2.74x to
2.66x on a sequential basis.
FISCAL SECOND QUARTER HB4 HIGHLIGHTS
- HB4 Wheat outyielded non-HB4 varieties, with a 12.8% average
increase across all environments and locations. In targeted
environments, representing more than one-third of all harvested
hectares, the average yield improvement was 49%. 2nd generation
varieties showed a 16% yield improvement in high yielding
environments, when compared to 1st generation materials.
- Brazil's regulatory authority, CTNBio, granted the import
approval for HB4 wheat flour for animal and human consumption in
November 2021. This approval is a major milestone in Bioceres’
mission to build agricultural systems that enhance carbon
sequestration and climate resiliency, and a necessary step for a
commercial launch in the upcoming planting season.
- Estimations based on growers’ feedback, portfolio of varieties
and seed multiplication plans set EBITDA target for HB4 Wheat at
$15-20 million for FY2024. Opportunity peak estimated at 2.3
million hectares and $195 million in revenues for the Company in
current market.
- Rollout of new HB4 Soy varieties affected by reduction in
late season plantings due to severe drought conditions during
December. Top-performing 3rd generation HB4 varieties planted
at 100% of available inventory, while 2nd generation materials
planted on 60% of planned hectares. 1st generation varieties fully
discontinued as indicated in 4Q21. Shift towards new
varieties expected to unlock further yield gains going
forward.
- Alexandre Garcia joined the management team as Global Head
of Seed Business to enhance focus on accessing and developing top
performing genetics for the HB4 trait and new technologies. In
his former position as Innovation and Research Director at TMG, a
leading provider of soybean genetics for Latin America, Alexandre
led the collaboration efforts on HB4 in Brazil since 2014. He
completed a PhD in Agronomy at the State University of Maringa
(Brazil) / University of Illinois (US), an MBA from Fundação
Getulio Vargas (Brazil), and has more than 15 years of experience
in the seed business.
MANAGEMENT REVIEW
Mr. Federico Trucco, Chief Executive Officer of Bioceres,
commented: “We are thrilled to report a record setting quarter for
our Company, with comparable revenues at $90.3 million and LTM
Adjusted EBITDA at $61.8 million, excluding HB4 pre-launch costs.
Our very strong performance during the second quarter contributed
to a 72% growth in revenues year-to-date, with robust growth across
all three business segments. We are also very proud to report that
our combined growth in Europe and the United States (at 146% for
the period) places these important geographies close to 10% of our
global revenues, a huge step forward in our international
diversification strategy”.
“On the HB4 front, I would like to mention the announcement in
November by the Brazilian National Biosafety Commission (CTNBio),
that decided unanimously to approve the import certification for
HB4 wheat flour for human and animal consumption in that country.
This approval is a major milestone and a key step in Bioceres’
mission to build agricultural systems that enhance carbon
sequestration and climate resiliency, and is a necessary step for a
commercial launch in the upcoming planting season. We are now in a
position to estimate an incremental EBITDA contribution for HB4
Wheat of $15-20M for fiscal year 24”, concluded Trucco.
Mr. Enrique Lopez Lecube, Chief Financial Officer of Bioceres,
added, “We had a great quarter that built on top of the momentum
our business had experienced in previous quarters; LTM adjusted
EBITDA excluding HB4 pre-launch costs grew 46% year over year and
15% on a sequential basis. The main drivers behind the quarter’s
numbers were a remarkable commercial performance and market
penetration of scaling technologies. Micro-beaded fertilizers
delivered record growth, while inoculants and seed treatment pack
sales were outstanding in North America and Europe. It is exciting
to think about the prospect of adding to this business the EBITDA
target we have now set for HB4 Wheat.”
“During the quarter we further fortified our balance sheet with
a $20 million issuance of 3-year maturity corporate bonds in our
subsidiary Rizobacter. The strong financial performance of our
baseline business combined with a stable debt structure and
liquidity position provides a solid foundation for growth,”
concluded Lecube.
Key Operational Metrics (In millions of US dollars,
unless where otherwise stated)
Table 1: Key Financial Metrics
2Q22
As Reported
% Change
Revenue by Segment
2Q21
2Q22
Reported
Comparable1
Crop Protection
27.1
47.3
75%
76%
Seed and Integrated Products
12.5
16.1
29%
26%
Crop Nutrition
9.2
29.3
218%
212%
Total Revenue
48.7
92.7
90%
89%
Gross Profit
23.7
37.3
58%
69%
Gross Margin
48.6%
40.3%
(827 bps)
(563 bps)
Adjusted EBITDA
14.3
19.7
38%
HB4 pre-launch costs
0.2
3.0
1461%
Baseline Business Adjusted EBITDA
14.5
22.7
57%
Baseline Business Adjusted EBITDA
Margin
29.7%
24.5%
(524 bps)
1. Comparable excludes the impact of IAS29
as discussed in more detail on page 15.
Table 2: HB4 Wheat Metrics
Hectares
Number of Varieties
Growers
Contributed goods1
FY20 7,000
FY20 2 (1st Gen)
FY20 25
FY20 1.4M
FY21 53,000
FY21 3 (1st Gen)
FY21 225
FY21 6.4M
∆ 657%
4 (2nd Gen)
∆ 800%
∆ 303%
Table 3: HB4 Soy Metrics
Hectares
Number of Varieties
Growers
Contributed goods1
FY21 23,000
FY21 4 (1st Gen)
FY21 148
FY21 2.2M
FY22 23,000
3 (2nd Gen)
FY22 102
FY22 2.0M
∆ -%
FY22 3 (2nd Gen)
∆ (31%)
∆ (10%)
9 (3rd Gen)
1 Metric will be used to account for and track the underlying
economic performance of our HB4 Wheat and HB4 Soy Program ahead of
reporting HB4 revenues and related accounting measures. By
publishing the level of contributed goods, the investment community
can also use this information to better gauge our progress.
For a full version of Bioceres Fiscal Second Quarter 2022
Earnings Release, click here.
FISCAL SECOND QUARTER 2022 EARNINGS CONFERENCE CALL
Bioceres Chairman & Chief Executive Officer Federico Trucco,
Chief Financial Officer Enrique Lopez Lecube and Head of Investor
Relations Rodrigo Krause will host the conference call followed by
a question-and-answer session. The conference call will be
accompanied by a presentation, which can be viewed during the
webcast or accessed via the investor relations section of the
company’s website here.
To access the call, please use the following information:
Date:
Thursday, February 10, 2022
Time:
8:30 a.m. EST, 5:30 a.m. PST
Toll Free dial-in number:
1-844-200-6205
Toll/International dial-in number:
1-929-526-1599
Conference ID:
510191
Webcast:
Click here
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have difficulty connecting with the conference
call, please contact MZ Group at +1 (949) 491-8235.
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 17, 2022
following the conference.
Toll Free Replay Number:
1-866-813-9403
International Replay Number:
+44 204 525 0658
Replay ID:
510901
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NASDAQ: 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 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 information
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 US dollars)
Three-month
period ended
12/31/2021
Three-month
period ended
12/31/2020
Six-month
period ended
12/31/2021
Six-month period
ended 12/31/2020
Total revenue
92,662,853
48,738,690
159,679,098
91,093,951
Cost of sales
(55,332,989)
(25,073,842)
(93,325,442)
(48,186,484)
Gross profit
37,329,864
23,664,848
66,353,656
42,907,467
% Gross profit
40%
49%
42%
47%
Operating expenses
(20,198,593)
(12,334,536)
(37,813,335)
(23,450,991)
Share of profit of JV
1,141,323
65,975
919,087
305,687
Other income or expenses, net
(571,365)
135,132
(1,717,982)
140,322
Operating profit
17,701,229
11,531,419
27,741,426
19,902,485
Finance result
(8,221,621)
(5,896,874)
(13,401,289)
(18,632,336)
Profit before income tax
9,479,608
5,634,545
14,340,137
1,270,149
Income tax
(4,141,102)
(3,835,587)
(6,736,415)
(5,841,453)
Profit/ (Loss) for the period
5,338,506
1,798,958
7,603,722
(4,571,304)
Other comprehensive profit / (loss)
5,472,717
658,996
11,201,854
795,127
Total comprehensive Profit /
(Loss)
10,811,223
2,457,954
18,805,576
(3,776,177)
Profit / (loss) for the period
attributable to:
Equity holders of the parent
3,427,093
648,193
4,301,230
(6,323,365)
Non-controlling interests
1,911,413
1,150,765
3,302,492
1,752,061
5,338,506
1,798,958
7,603,722
(4,571,304)
Total comprehensive income / (loss)
attributable to:
Equity holders of the parent
7,660,743
1,244,596
13,382,802
(5,789,271)
Non-controlling interests
3,150,480
1,213,358
5,422,774
2,013,094
10,811,223
2,457,954
18,805,576
(3,776,177)
Unaudited Consolidated Statement of
Financial Position (Figures in US dollars)
ASSETS
12/31/2021
06/30/2021
CURRENT ASSETS
Cash and cash equivalents
36,187,804
36,046,113
Other financial assets
3,696,803
11,161,398
Trade receivables
119,285,056
88,784,172
Other receivables
17,822,854
11,153,705
Income and minimum presumed income taxes
recoverable
1,072,748
990,881
Inventories
87,308,712
61,037,551
Biological assets
8,142,920
2,315,838
Total current assets
273,516,897
211,489,658
NON-CURRENT ASSETS
Other financial assets
832,159
1,097,462
Trade receivables
121,234
135,739
Other receivables
1,810,645
2,543,142
Income and minimum presumed income taxes
recoverable
31,112
12,589
Deferred tax assets
5,689,401
3,278,370
Investments in joint ventures and
associates
34,054,957
30,657,173
Property, plant and equipment
48,946,555
47,954,596
Intangible assets
72,563,018
67,342,362
Goodwill
29,904,359
28,751,206
Right-of-use leased asset
1,488,608
1,327,660
Total non-current assets
195,442,048
183,100,299
Total assets
468,958,945
394,589,957
LIABILITIES
12/31/2021
06/30/2021
CURRENT LIABILITIES
Trade and other payables
107,583,347
72,091,408
Borrowings
48,141,499
76,785,857
Employee benefits and social security
6,472,078
4,680,078
Deferred revenue and advances from
customers
7,110,046
6,277,313
Income tax payable
11,687,238
7,452,891
Lease liabilities
635,240
750,308
Total current liabilities
181,629,448
168,037,855
NON-CURRENT LIABILITIES
Borrowings
90,738,228
47,988,468
Government grants
-
784
Investments in joint ventures and
associates
616,173
1,278,250
Deferred tax liabilities
24,597,731
25,699,495
Provisions
484,490
449,847
Consideration for acquisitions
12,443,071
11,790,533
Convertible notes
48,890,332
48,664,012
Lease liability
570,505
390,409
Total non-current liabilities
178,340,530
136,261,798
Total liabilities
359,969,978
304,299,653
EQUITY
Equity attributable to owners of the
parent
81,743,560
67,743,242
Non-controlling interests
27,245,407
22,547,062
Total equity
108,988,967
90,290,304
Total equity and liabilities
468,958,945
394,589,957
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220210005420/en/
Investor Relations Contact Chris Tyson Executive Vice
President MZ Group – MZ North America (949) 491-8235
BIOX@mzgroup.us www.mzgroup.us
Bioceres Crop Solutions Rodrigo Krause Head of Investor
Relations investorrelations@biocerescrops.com
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