BIOX Bioceres Crop Solutions Corp

1Q24 revenues at $116.6 million, and adjusted EBITDA at $16.3 million

Groundbreaking patent obtained in key product category

Bioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change, announced financial results for the first quarter ended September 30, 2023. 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 1Q24 were $116.6 million, driven by post-drought recovery at the start of the Argentine summer crop season, and continued global expansion. Adjusted EBITDA for the quarter was $16.3 million.

• HB4 wheat harvest and soybean planting beginning in Latin America. HB4 wheat harvest underway in Argentina, with favorable preliminary results compared to non-HB4 varieties, in a season that was still affected by drought. By contrast, soybean planting is beginning under more favorable soil moisture conditions.

• US Patent awarded for UHC® technology, a new gold standard in biological nitrogen fixation. Rate reduction with extended pre-inoculation period enables chemical substitution and new seed applied innovations.

• Completed construction of a new state-of-the-art adjuvant production plant in Londrina, Brazil, which is strategically positioned to expand Bioceres’ footprint in the high-growth Brazilian market.

MANAGEMENT REVIEW

Mr. Federico Trucco, Bioceres’ Chief Executive Officer, commented: “The first quarter of fiscal 2023 was a record-setting quarter in which we nearly doubled revenues as compared to the prior year period. Part of our growth during 1Q23 resulted from anticipated 2Q23 sales, as weather conditions were quickly deteriorating in our main LATAM market, which ultimately positioned us to mitigate part of the effects of what became a historical drought, extending through the next three quarters. With rain patterns now normalized and plantings in our main markets progressing at full force, we have regained our momentum, as reflected in our 1Q24 financial performance – momentum we expect will accelerate in subsequent quarters.

On the HB4 front, the wheat harvest has started in northern Argentina with very favorable results for HB4 materials, in an otherwise difficult season for the crop. Soy plantings are advancing favorably with good moisture conditions in our targeted regions. Our Generation HB4 Program is currently running at 150% of prior season acreage, with a 6x increase in Brazil.

An important milestone this quarter was the granting of our UHC® technology patent by the USPTO. This technology sets the new gold standard in biological nitrogen fixation for legumes, and further strengthens our leadership position in this important seed treatment category. The rate reduction achieved with our UHC® inoculants adds to other groundbreaking improvements in our Rizoderma (biofungicide), Rinotec (bioinsecticides/nematicides) and UBP (biostimulant) platforms of seed applied technologies, freeing-up more than 50% of the carrying capacity of seeds for new innovations or incremental nutrient loads.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, added “As we kick-started the new fiscal year, we knew the comparison to last year´s first quarter would be a tough one. As comforting as it was to have an agile salesforce to act proactively in the face of a looming drought last year, we would much rather have normalized weather conditions like the ones we see today in Argentina and are enthused by the continued growth we see from new product categories in other markets. This quarter was marked by the recovery of adjuvant sales, exciting growth from our UBP biostimulants platform, margin expansion from the bioprotection portfolio and – though not as high as last year – continued momentum from micro-beaded fertilizers sales that had good pre-season sales in 4Q23. Looking ahead, we expect our business in Argentina to outperform and believe there is an outsized opportunity for the continuous growth of our biologicals portfolio in attractive geographies such as the EU, US and Brazil.”

KEY FINANCIAL METRICS (In millions of U.S. dollars, unless where otherwise stated)

Table 1: 1Q24 Key Financial Metrics

 

1Q23

1Q24

% Change

Revenue by Segment

 

 

 

Crop Protection

63.0

55.9

(11%)

Seed and Integrated Products

13.8

22.3

61%

Crop Nutrition

50.3

38.3

(24%)

Total Revenue

127.1

116.6

(8%)

Gross Profit

51.4

45.0

(13%)

Gross Margin

40.5%

38.6%

(189 bps)

Adjusted EBITDA

24.5

16.3

(34%)

1Q24 Summary: Total revenues in 1Q24 were $116.6 million, driven by post drought recovery in Argentina as the summer crop season got underway, and continued expansion in other target markets. In Crop Protection, high margin adjuvants experienced a strong recovery from previous quarters, while lower margin product sales were strategically exited, resulting in an overall segment sales decline but gross profit improvement. In Seed and Integrated Products, seed treatment pack sales were slightly lower than the previous fiscal year, but overall segment revenues increased. The increase was driven by sales of first-generation HB4 wheat inventories, commercialized as grain to selected processors operating under the Generation HB4 program. Gross profit for the category was practically constant due to lower margin wheat grain sales. Crop Nutrition saw solid performance in the quarter, although higher sales of biostimulants and sustained demand for micro-beaded fertilizers were overshadowed by last year´s extraordinary micro-beaded fertilizer performance on higher fertilizer prices and anticipated sales. Profit sharing from the agreement with Syngenta, for which compensation has been accrued in 3Q23, also contributed to the year-over-year decline. Adjusted EBITDA for 1Q24 was $16.3 million.

For a full version of Bioceres first quarter 2024 earnings release, click here.

FIRST QUARTER 2024 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:

Tuesday, November 14, 2023

Time:

8:30 a.m. EST, 5:30 a.m. PST

US Toll Free dial-in number:

1-833-470-1428

International dial-in numbers:

Click here

Conference ID:

194157

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 19, 2023, following the conference.

Toll Free Replay Number:

1-866-813-9403

International Replay Number:

+44 204 525 0658

Replay ID:

873470

About Bioceres Crop Solutions Corp.

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. 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 million of U.S. dollars)

 

 

 

Three-month period ended 09/30/2023

Three-month period ended 09/30/2022

Total revenue

116.6

127.1

Cost of sales

(71.6)

(75.7)

Gross profit

45.0

51.4

% Gross profit

39%

40%

Operating expenses

(38.5)

(35.8)

Share of profit of JV

1.5

0.8

Change in net realizable value of agricultural products

(1.4)

-

Other income or expenses, net

(1.2)

0.5

Operating profit

5.3

17.0

Financial result

(7.5)

(8.1)

Profit/(loss) before income tax

(2.2)

8.9

Income tax

(0.4)

(5.0)

Profit/(loss) for the period

(2.7)

3.9

Other comprehensive profit/(loss)

(0.9)

0.0

Total comprehensive profit/(loss)

(3.6)

3.9

 

 

 

Profit/(loss) for the period attributable to:

 

 

Equity holders of the parent

(4.6)

0.5

Non-controlling interests

1.9

3.4

 

(2.7)

3.9

Total comprehensive profit/(loss) attributable to:

 

 

Equity holders of the parent

(5.4)

0.4

Non-controlling interests

1.8

3.5

 

(3.6)

3.9

Weighted average number of shares

Basic

62,846,690

60,537,110

Diluted

62,846,690

61,736,679

 

 

Unaudited Consolidated Statement of Financial Position

(Figures in million of U.S. dollars)

 

 

ASSETS

09/30/2023

06/30/2023

CURRENT ASSETS

 

 

Cash and cash equivalents

29.6

33.5

Other financial assets

13.8

5.4

Trade receivables

186.3

111.8

Other receivables

24.9

19.3

Income and minimum presumed income taxes recoverable

2.0

1.6

Inventories

138.1

126.0

Biological assets

1.1

0.1

Total current assets

395.9

297.7

NON-CURRENT ASSETS

 

 

Other financial assets

0.5

0.6

Trade receivables

-

0.2

Other receivables

2.4

2.3

Income and minimum presumed income taxes recoverable

0.0

0.0

Deferred tax assets

28.8

4.0

Investments in joint ventures and associates

40.8

38.6

Property, plant and equipment

69.9

49.9

Investment properties

3.7

-

Intangible assets

173.0

76.7

Goodwill

112.2

36.1

Right-of-use leased asset

13.5

12.1

Total non-current assets

444.8

220.5

Total assets

840.7

518.2

LIABILITIES

 

 

CURRENT LIABILITIES

 

 

Trade and other payables

159.1

125.8

Borrowings

100.7

71.3

Employee benefits and social security

10.0

7.6

Deferred revenue and advances from customers

32.8

5.9

Income tax payable

0.5

7.5

Consideration for acquisition

4.2

3.0

Lease liabilities

4.3

1.4

Total current liabilities

311.7

222.7

NON-CURRENT LIABILITIES

 

 

Borrowings

48.8

74.2

Deferred revenue and advances from customers

2.2

-

Investments in joint ventures and associates

0.6

0.7

Deferred tax liabilities

55.0

29.0

Provisions

0.7

0.6

Consideration for acquisitions

2.5

9.9

Secured notes

76.9

12.6

Lease liability

9.2

10.3

Total non-current liabilities

195.9

137.3

Total liabilities

507.6

359.9

EQUITY

 

 

Equity attributable to owners of the parent

299.4

127.4

Non-controlling interests

33.7

30.9

Total equity

333.1

158.3

Total equity and liabilities

840.7

518.2

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231113320981/en/

Bioceres Crop Solutions Paula Savanti Head of Investor Relations investorrelations@biocerescrops.com