Revenues increased 71% compared to 1Q22 pro
forma numbers
1Q23 Adjusted EBITDA nearly doubled YoY,
reaching $73 million on an LTM basis after excluding HB4 pre-launch
costs
Announced agreement with Syngenta Seedcare
supporting inoculant growth internationally
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, announced financial results for the fiscal first
quarter ended September 30, 2022. 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 1Q23 were $127.1 million, a 71%
increase with respect to the comparable pro forma numbers for the
first quarter of last year, which are inclusive of historical
revenues from Pro Farm. Top line growth was driven by continued
outstanding performance in micro-beaded fertilizers, as well as
inoculants, adjuvants and third-party products.
- Gross profit for the quarter increased 52% year over year
compared to 1Q22 pro forma numbers, reaching $51.4 million,
with all three product segments contributing to gross profit
growth.
- Adjusted EBITDA for the quarter was $24.5 million,
nearly doubling last year’s quarterly result, reflecting strong top
line and gross profit growth.
- The company announced an agreement with Syngenta
Seedcare for the development and commercialization of certain
biological seed treatments. The partnership will drive global
expansion, sustain double digit growth in the category, and provide
a baseline of minimum profit sharing over the life of the
agreement. Additionally, an upfront payment of $50 million was
received in early October 2022.
- HB4 Wheat harvest and Soy planting are beginning in Latin
America, a season characterized by a very severe drought. HB4
Soy hectares more than double year ago seed multiplication level,
for early season plantings. Two soybean varieties are being scaled
in Brazil for an upcoming launch in this territory.
- Merger with Pro Farm triggers adoption of the U.S. dollar as
the functional currency in main operational subsidiaries, starting
in 1Q23. The Pro Farm merger and subsequent business
integration drove a functional currency switch from local currency
to the U.S. dollar in the main Argentine subsidiaries, whose
operations are carried out almost exclusively in U.S. dollars. The
shift eliminates the need for IAS 29 inflationary adjustments going
forward.
- Completion of previously announced $5 million share buy-back
program. Program to be extended through the approval of an
additional $5 million.
MANAGEMENT REVIEW
Mr. Federico Trucco, Bioceres´ Chief Executive Officer,
commented: “We are delighted to report on a fantastic beginning to
FY23, with revenues growing 71% for the quarter and adjusted EBITDA
almost doubling for the period. This achievement is even more
remarkable after six consecutive quarters of revenue expansion.
Severe drought conditions in Argentina may transiently slow down
sales in the current quarter for our core portfolio, an impact
which we expect to be partially moderated with Pro Farm sales in
North America and Europe. At the same time, the drought is creating
a unique opportunity to showcase HB4 technology, with the
country-wide wheat crop decline expected to be at the 40% level
compared to last year’s harvest. We are also making good progress
with HB4 Soy breeding and multiplication efforts, with early season
plantings well under way and, with two varieties being scaled in
Brazil for an upcoming launch with multipliers in this important
geography.”
Trucco continued, “As exciting and promising as these data
points may be, they are not the highlights of the quarter. In 1Q23
we have closed two transactions that give us an unmatched platform
for future growth in biological ag inputs, positioning our company
as a clear leader in sustainable solutions for the agriculture of
the future. With the integration of Pro Farm (formerly Marrone Bio
Innovations), we now have an existing portfolio - or pipeline - of
products designed to replace or significantly reduce the use of
synthetic chemicals in most functions for which they are required
in high productivity agriculture. Where we can most immediately
achieve this substitution is in the seed care segment of the
industry, a $4-5 billion market where biologicals have already
achieved a 20% penetration. And we are starting this journey with
the recent announcement of a long-term collaboration agreement with
one of the segment leaders, Syngenta.”
“We have been collaborating with Syngenta Seedcare for 20 years
in Argentina and have jointly achieved and held the #1 position for
our inoculants, bio fungicides and Syngenta molecules for a long
time. This new collaboration creates the right structure to expand
this success internationally, at an accelerated pace. We expect the
international revenues generated by our inoculants alone to at
least double in the next two years. While Syngenta will now cover
working capital needs as well as sales and marketing activities, we
have secured minimum profits that average $23 million per year over
the life of the agreement, not including an upfront fee of $50
million in exchange for the different rights granted for the
collaboration. On top of these annual minimum profits, we will
receive between 50% and 30% of the incremental profits generated by
the collaboration, depending on the geography and the year. The
collaboration is not just designed to maximize our commercial
reach, but it is also focused on accelerating our R&D efforts,
with Syngenta covering 70% of the R&D investments required for
early pipeline products and new products that we may opt to develop
jointly within this framework." Trucco finished by adding, “we want
to thank Syngenta Seedcare leadership for their trust and hard work
to get to this point and reassure them of our full commitment to
the success of this joint endeavor.”
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer,
noted, “This was an extremely important quarter from a strategy
standpoint. We started the fiscal year on a strong note with the
completion of the merger with Pro Farm and made considerable
progress on our integration and synergy efforts throughout the
quarter. Simultaneously we executed an ironclad agreement with
Syngenta Seedcare that solidifies a profitable long-term growth
path for our inoculants. These two milestones put us in a unique
position to structurally benefit from the secular growth trend and
high profitability profile that biologicals offer. Our first
quarter financial performance continued to build on past execution,
adding a 71% top line expansion to the already outstanding 62%
growth reported for our last full fiscal year. Importantly, this
growth transcended revenues and brought a record-high $24.5 million
Adjusted EBITDA for the quarter, even as we account for HB4
inventory ramp-up costs and negative EBITDA from Pro Farm. Our
balance sheet and cash position remain strong, particularly after
the issuance of the $55 million convertible notes in July, followed
by the $50 million upfront payment received from Syngenta in early
October”. Lopez Lecube added, “Despite severe weather conditions
currently affecting farmers in an important end market like
Argentina, our strong first quarter results and the revenue
diversification we gained from Pro Farm, make us feel confident
about the growth outlook for the full fiscal year. We will remain
focused on executing our HB4 strategy and making Pro Farm assets
EBITDA contributors before year end”.
KEY FINANCIAL METRICS
(In millions of U.S. dollars, unless where otherwise stated)
Table 1: 1Q23 Key Financial Metrics
1Q23
1Q22 Pro Forma 1
1Q23
% Change
Revenue by Segment
Crop Protection
41.0
63.0
54%
Seed and Integrated Products
8.7
13.8
59%
Crop Nutrition
24.8
50.3
103%
Total Revenue
74.5
127.1
71%
Gross Profit
33.9
51.4
52%
Gross Margin
45.5%
40.5%
(505 bps)
1. 1Q22 pro forma financials include Pro Farm historical numbers
and Bioceres comparable metrics.
1Q22
1Q23
% Change
Adjusted EBITDA
12.4
24.5
98%
HB4 ramp-up cost
1.9
1.0
(48%)
Adjusted EBITDA excluding HB4 ramp-up
cost2
14.4
25.5
78%
2. Only excludes HB4 ramp-up cost. The remaining HB4 operating
expenses are included in the Adjusted EBITDA metric.
1Q23 – Summary: 1Q23 was an outstanding quarter with
revenues increasing 71% to $127.1 million when compared to 1Q22 pro
forma revenues that include historical sales from Pro Farm.
Top-line growth was driven by continued strong performance in
micro-beaded fertilizers, as well as adjuvants, third-party
products, and seed treatment packs. Gross profit increased 52%,
with an overall growth margin of 40.5%. Adjusted EBITDA nearly
doubled at $24.5 million. This number includes the effect of HB4
ramp-up costs and negative EBITDA from Pro Farm.
For a full version of Bioceres first quarter 2023 earnings
release, click here.
FIRST QUARTER 2023 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, November 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:
941140
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 November 15,
2022, following the conference.
Toll Free Replay Number:
1-866-813-9403
International Replay Number:
+44 204 525 0658
Replay ID:
062915
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 U.S. dollars)
Three-month period ended
09/30/2022
Three-month period ended
09/30/2021
Total revenue
127,105,318
66,906,245
Cost of sales
(75,675,878)
(37,882,453)
Gross profit
51,429,440
29,023,792
% Gross profit
40%
43%
Operating expenses
(35,756,924)
(17,614,742)
Share of profit of JV
842,240
(222,236)
Other income or expenses, net
478,041
(1,146,617)
Operating profit
16,992,797
10,040,197
Finance result
(8,326,449)
(5,179,668)
Profit before income tax
8,666,348
4,860,529
Income tax
(4,754,347)
(2,595,313)
Profit for the period
3,912,001
2,265,216
Other comprehensive profit / (loss)
(7,213)
5,729,137
Total comprehensive Profit
3,904,788
7,994,353
Profit for the period attributable
to:
Equity holders of the parent
498,297
874,137
Non-controlling interests
3,413,704
1,391,079
3,912,001
2,265,216
Total comprehensive profit attributable
to:
Equity holders of the parent
414,561
5,722,061
Non-controlling interests
3,490,227
2,272,292
3,904,788
7,994,353
Unaudited Consolidated Statement of
Financial Position
(Figures in U.S. dollars)
ASSETS
09/30/2022
06/30/2022
CURRENT ASSETS
Cash and cash equivalents
47,387,568
33,475,266
Other financial assets
3,930,613
5,401,133
Trade receivables
142,754,854
111,752,310
Other receivables
22,957,655
19,327,584
Income and minimum presumed income taxes
recoverable
1,567,204
1,647,398
Inventories
141,910,323
126,044,122
Biological assets
1,026,744
57,313
Total current assets
361,534,961
297,705,126
NON-CURRENT ASSETS
Other financial assets
1,074,005
619,841
Trade receivables
5,076
200,412
Other receivables
3,163,404
2,254,199
Income and minimum presumed income taxes
recoverable
109,175
44,412
Deferred tax assets
4,120,745
4,011,374
Investments in joint ventures and
associates
39,629,317
38,554,092
Property, plant and equipment
62,807,699
49,908,325
Intangible assets
174,493,490
76,704,869
Goodwill
123,981,288
36,073,685
Right-of-use leased asset
14,224,682
12,144,026
Total non-current assets
423,608,881
220,515,235
Total assets
785,143,842
518,220,361
LIABILITIES
09/30/2022
06/30/2022
CURRENT LIABILITIES
Trade and other payables
138,810,191
125,849,620
Borrowings
74,733,602
71,301,468
Employee benefits and social security
11,785,442
7,619,121
Deferred revenue and advances from
customers
6,377,194
5,895,313
Income tax payable
6,357,991
7,538,764
Consideration for acquisition
2,418,847
3,048,562
Lease liabilities
2,769,144
1,412,904
Total current liabilities
243,252,411
222,665,752
NON-CURRENT LIABILITIES
Borrowings
81,778,391
74,177,169
Investments in joint ventures and
associates
850,065
717,948
Deferred tax liabilities
45,073,540
29,005,943
Provisions
5,052,363
603,022
Consideration for acquisitions
11,502,897
9,854,228
Convertible notes
71,362,653
12,559,071
Lease liability
11,516,213
10,338,380
Total non-current liabilities
227,136,122
137,255,761
Total liabilities
470,388,533
359,921,513
EQUITY
Equity attributable to owners of the
parent
280,512,784
127,358,573
Non-controlling interests
34,242,525
30,940,275
Total equity
314,755,309
158,298,848
Total equity and liabilities
785,143,842
518,220,361
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221109006115/en/
Bioceres Crop Solutions Paula Savanti Head of Investor Relations
investorrelations@biocerescrops.com
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