Key regulatory milestone obtained in China:
food & feed approval of HB4 Soy enables commercial launch.
Incremental EBITDA projected at $20-25 million for FY25
HB4 Wheat approved for food & feed in
Colombia, Australia and New Zealand
Trigall Genetics reached preliminary
understanding to acquire wheat breeding program in
Australia
3Q22 Comparable Revenues up 72% to $60.1
million
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 third
quarter 2022, ended March 31, 2022. 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 THIRD QUARTER & SUBSEQUENT FINANCIAL &
BUSINESS HIGHLIGHTS
- Comparable Revenues up 72% to $60.1 million and Comparable
Gross Margin at 42.3%, leading to $25.4 million in Comparable Gross
Profit. Growth in all product categories of the Crop Protection
segment combined with continued momentum in micro-beaded
fertilizers sales lead to record-high fiscal third quarter
sales.
- LTM Adjusted EBITDA for the Baseline Business, which
excludes HB4 pre-launch costs, reached $61.3 million, a 30%
increase compared to the previous fiscal year. LTM Adjusted EBITDA
relatively flat on a sequential basis as a result of IAS29
accounting adjustments to third quarter reported gross profit and
higher third quarter SG&A due to anticipated expenses and
unfavorable inflation and FX effects.
- Announcement of the merger with Marrone Bio Innovations,
Inc. to create a global leader in the development and
commercialization of sustainable agricultural solutions. F-4
was filed with the U.S. Securities and Exchange Commission (SEC) on
May 9, 2022. The transaction is expected to close in the first
quarter of fiscal 2023, after MBI’s Shareholders’ Meeting.
FISCAL THIRD QUARTER & SUBSEQUENT HB4 HIGHLIGHTS
- China´s Ministry of Agriculture granted food & feed
approval for HB4 Soy this past April. The approval was a
necessary step for the unrestricted commercial launch of HB4 Soy in
Argentina, which had been conditional on Chinese food & feed
approval. Chinese approval also enables commercial launch by
third-party licensees in multiple geographies. HB4 Soy is now
cleared for growth and commercialization in the United States,
Canada, Brazil, Argentina and Paraguay, together representing
roughly 85% of the global soybean trade.
- HB4 Soy EBITDA target for fiscal year 2025 at $20-25
million. Total addressable market estimated at an aggregate of
35 million hectares for the top three soybean markets, Argentina,
Brazil and the United States. Estimations based on portfolio
evolution, seed multiplication processes and proprietary and
non-proprietary channels sales plans.
- HB4 Soy was planted in Argentina in approximately 23,000
hectares in the second quarter of fiscal 2022. Harvesting has
already begun and is currently about 52% concluded.
- On May 6, 2022, the Food Standards Australia New Zealand
(FSANZ), agency in charge of providing the safety assessment in
Australia’s and New Zealand’s regulatory processes, notified the
HB4 Wheat Approval Report considering HB4 Wheat to be safe for food
and feed. The final approval from the Food Minister’s Meeting
(FMM) is expected to be received in 4Q22.
- Trigall Genetics and S&W Seed Company entered into
discussions to create a new entity, Trigall Australia, to develop
wheat varieties for all Australian regions and uses. Trigall
Australia would acquire all of the breeding assets of S&W Seed
Australia. The newly formed entity would be expected to be the
platform for Bioceres Crop Solutions and Florimond Desprez,
co-owners of Trigall Genetics, to develop their activities in the
region. With a 13 million hectares planted and 27 million tons in
exports in the past year, Australia is a priority development
geography for Trigall Genetics.
- Colombia’s regulatory authority granted HB4 Wheat food &
feed approval this past February 2022.
- HB4 Wheat on track and expected to generate revenues of
approximately $10-12 million in the upcoming planting season,
revenue recognition subject to the granting of plant variety
protection registrations required for invoicing.
- Collaboration agreement reached with African Agricultural
Technology Foundation (AATF), to develop drought tolerance
technology in wheat in Sub-Saharan Africa. The combined efforts
will be focus on introgressing the HB4 trait into locally adapted
wheat varieties for drought-prone environments in the region.
MANAGEMENT REVIEW
Mr. Federico Trucco, Bioceres´ Chief Executive Officer,
commented: “Our third fiscal quarter has been historically our
weakest and less eventful quarter for various reasons, most
importantly because it overlaps with the Latin American summer, not
an important planting period for any one crop. The third quarter of
fiscal year 2022, which we are currently reporting, deviates from
this historical rule. And this is not only because of the great
momentum we continue to observe in our sales, with revenues
increasing 72% on a comparable basis, but also and significantly
due to the business development and regulatory milestones that were
achieved during the period and subsequently thereafter.”
Trucco added, “As we communicated in March, we are pursuing a
transformational merger with Marrone Bio Innovations (MBI) to
become an undisputable leader in the ag biologicals’ space, and
just recently in April we have received the long-awaited regulatory
green light from China which allows us to move HB4 Soy into its
commercialization phase. With regards to the MBI merger, we were
able to file F-4 documents with the SEC this last Monday, and we
remain on track for a first quarter FY23 closing. In terms of HB4
Soy, we are today providing guidance for FY25, when we expect HB4
Soy to contribute between $20 million and $25 million of
incremental EBITDA.”
“Outside of these important milestones, we are taking advantage
of the renewed global interest in wheat to advance commercial
agreements for HB4 Wheat within Latin America and expand outside of
the region. Our wheat subsidiary, Trigall Genetics, has reached a
preliminary understanding with S&W Seed of Australia to acquire
all of its wheat breeding program and assets. This agreement is
reached at the time when a positive recommendation is obtained from
regulators in Australia regarding the use of HB4 wheat for food and
feed. We have also reached a collaboration agreement with the
African Agricultural Technology Foundation to start the path to
bring HB4 Wheat into Sub-Saharan Africa. All these opportunities
are now available due to investment decisions we made many years
ago, which position us as a technology leader for this critical
crop,” Trucco concluded.
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer,
added, “Following a solid performance in the first half of our
fiscal 2022, this third quarter brought record-high sales.
Comparable revenues for the quarter reached $60.1 million and YTD
comparable revenues have accumulated $215.2 million, both
representing a 72% increase versus the year-ago quarter and YTD
metrics. LTM Adjusted EBITDA for our baseline business stood at
$61.3 million despite some macro headwinds affecting costs in our
Argentine operations and unusually high logistics costs as we
decided to anticipate shipment of high-margin products to end
markets as a precautionary measure to the constraints in global
supply chains.”
“Subsequent to the quarter´s closing we announced the conversion
of 75% of the outstanding amount of the convertible note issued in
2019, reducing our short-term debt by roughly $37 million as we
prepare for two major events, the closing of the merger agreement
with MBI and the commercial launch of HB4. Following the recent
approval in China, it is reassuring to have set targets for HB4
Wheat and Soy that would imply an additional contribution of $35
million to $45 million of EBITDA in the next two to three years to
a healthy and growing baseline business”, Lopez Lecube
concluded.
Key Operational Metrics (In millions of US dollars,
unless where otherwise stated)
Table 1: Key Financial Metrics
3Q22
Comparable
% Change
Revenue by Segment
3Q21
3Q22
Comparable1
As Reported
Crop Protection
16.5
35.8
118%
136%
Seed and Integrated Products
3.5
3.5
0%
21%
Crop Nutrition
15.1
20.8
38%
58%
Total Revenue
35.0
60.1
72%
92%
Gross Profit
16.0
25.4
59%
54%
Gross Margin
45.6%
42.3%
(339 bps)
(824 bps)
As Reported
% Change
Adjusted EBITDA
6.9
4.8
(30%)
HB4 pre-launch costs
0.5
2.3
360%
Baseline Business Adjusted EBITDA
7.4
7.1
(4%)
1. Comparable excludes the impact of IAS29
as discussed in more detail on page 15.
For a full version of Bioceres Fiscal Third Quarter 2022
Earnings Release, click here
FISCAL THIRD 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, May 12, 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:
922379
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 May 17, 2022,
following the conference.
Toll Free Replay Number:
1-866-813-9403
International Replay Number:
+44 204 525 0658
Replay ID:
823380
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 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 US dollars)
Three-month period ended
03/31/2022
Three-month period ended
03/31/2021
Nine-month period ended
03/31/2022
Nine-month period ended
03/31/2021
Total revenue
Cost of sales
69,482,518
(45,823,445)
36,221,113
(20,901,909)
229,051,616
(139,038,887)
127,315,064
(69,088,393)
Gross profit
% Gross profit
23,659,073
34%
15,319,204
42%
90,012,729
39%
58,226,671
46%
Operating expenses
Share of profit of JV
Other income or expenses, net
(19,869,946)
(203,954)
(1,437,718)
(11,656,378)
906,241
205,127
(57,683,281)
715,133
(3,155,700)
(35,107,369)
1,211,928
345,449
Operating profit
2,147,455
4,774,194
29,888,881
24,676,679
Finance result
(4,784,248)
(5,008,002)
(18,185,537)
(23,640,338)
Profit before income tax
(2,636,793)
(233,808)
11,703,344
1,036,341
Income tax
(4,340,156)
(390,710)
(11,076,571)
(6,232,163)
Profit/ (Loss) for the period
(6,976,949)
(624,518)
626,773
(5,195,822)
Other comprehensive profit / (loss)
12,367,795
1,911,937
25,990,283
2,707,064
Total comprehensive Profit /
(Loss)
5,390,846
1,287,419
26,617,056
(2,488,758)
Profit / (loss) for the period
attributable to:
Equity holders of the parent
Non-controlling interests
(6,486,721)
(490,228
(1,180,484)
555,966
(2,185,491)
2,812,264
(7,503,849)
2,308,027
(6,976,949)
(624,518)
626,773
(5,195,822)
Total comprehensive income / (loss)
attributable to:
Equity holders of the parent
Non-controlling interests
3,889,873
1,500,97
510,325
777,094
19,685,934
6,931,122
(5,278,946)
2,790,188
5,390,846
1,287,419
26,617,056
(2,488,758)
Unaudited Consolidated Statement of
Financial Position (Figures in US dollars)
ASSETS
03/31/2022
06/30/2021
CURRENT ASSETS
Cash and cash equivalents
39,041,287
36,046,113
Other financial assets
2,243,803
11,161,398
Trade receivables
113,388,127
88,784,172
Other receivables
16,457,851
11,153,705
Income and minimum presumed income taxes
recoverable
1,272,791
990,881
Inventories
102,350,569
61,037,551
Biological assets
22,199,193
2,315,838
Total current assets
296,953,621
211,489,658
NON-CURRENT ASSETS
Other financial assets
859,981
1,097,462
Trade receivables
634,428
135,739
Other receivables
1,964,822
2,543,142
Income and minimum presumed income taxes
recoverable
39,349
12,589
Deferred tax assets
4,582,941
3,278,370
Investments in joint ventures and
associates
35,783,222
30,657,173
Property, plant and equipment
50,656,642
47,954,596
Intangible assets
75,714,907
67,342,362
Goodwill
34,688,835
28,751,206
Right-of-use leased asset
1,700,405
1,327,660
Total non-current assets
206,625,532
183,100,299
Total assets
503,579,153
394,589,957
LIABILITIES
03/31/2022
06/30/2021
CURRENT LIABILITIES
Trade and other payables
123,224,013
72,091,408
Borrowings
76,364,127
76,785,857
Employee benefits and social security
6,600,609
4,680,078
Deferred revenue and advances from
customers
2,655,322
6,277,313
Income tax payable
5,970,572
7,452,891
Convertible notes
37,578,030
-
Lease liabilities
838,776
750,308
Total current liabilities
253,231,449
168,037,855
NON-CURRENT LIABILITIES
Borrowings
78,155,343
47,988,468
Government grants
-
784
Investments in joint ventures and
associates
449,943
1,278,250
Deferred tax liabilities
27,991,379
25,699,495
Provisions
507,219
449,847
Consideration for acquisitions
12,747,736
11,790,533
Convertible notes
12,895,578
48,664,012
Lease liability
539,935
390,409
Total non-current liabilities
133,287,133
136,261,798
Total liabilities
386,518,582
304,299,653
EQUITY
Equity attributable to owners of the
parent
88,306,816
67,743,242
Non-controlling interests
28,753,755
22,547,062
Total equity
117,060,571
90,290,304
Total equity and liabilities
503,579,153
394,589,957
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220512005441/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
Bioceres Crop Solutions (NASDAQ:BIOX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bioceres Crop Solutions (NASDAQ:BIOX)
Historical Stock Chart
From Jul 2023 to Jul 2024