Bioceres Crop Solutions Reports Fiscal First Quarter 2022 Financial and Operational Results

Rhea-AI Summary

Bioceres Crop Solutions (NASDAQ: BIOX) reported a 54% increase in total comparable revenues for the first quarter of fiscal year 2022, reaching $64.8 million. The growth is attributed to effective commercial strategies in the Crop Nutrition and Protection segments and favorable market conditions in Latin America. The company’s LTM Adjusted EBITDA hit $50.2 million, incorporating $3.4 million in pre-operational expenses from the HB4 program. Notably, the Crop Nutrition segment accounted for 44% of revenue growth. Regulatory approvals from Brazil and China continue to progress without issues.

Positive

• 54% YoY revenue increase to $64.8 million.
• LTM Adjusted EBITDA reached $50.2 million, confirming upward trend.
• Crop Nutrition segment contributed 44% to revenue growth with 60% YoY capacity increase.
• No additional regulatory inquiries from Brazil or China regarding HB4 products.

Negative

• Gross margin decreased from 45.4% to 43.4%, down 204 bps.
• Adjusted EBITDA margin fell from 24.9% to 18.6%, down 632 bps.

1Q22 comparable revenues up 54% YoY, and LTM Adjusted EBITDA reached $50.2m

HB4 inventory ramp-up advancing as projected – no additional information requested by Brazilian or Chinese regulatory authorities

ROSARIO, Argentina--(BUSINESS WIRE)-- 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 first quarter 2022, ended September 30, 2021. 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 noted otherwise.

FISCAL FIRST QUARTER FINANCIAL & BUSINESS HIGHLIGHTS

• Total Comparable Revenues increased 54% to $64.8 million. Top line growth comes from the solid momentum built throughout the last three quarters, with revenue growth accelerating up from +35-40% level in first half of the calendar year. Growth driven primarily by new commercial strategies in Crop Nutrition and Protection segments, new products, and generally positive sector dynamics in Latin America.

• LTM Adjusted EBITDA reached $50.2 million, confirming upward trend compared to the year-ago metric. Baseline business supports HB4 roll-out with LTM Adjusted EBITDA fully accounting for $3.4 million in pre-operational expenses related to HB4 Program.

• Momentum in micro-beaded fertilizer sales continues for the third consecutive quarter, with Crop Nutrition segment accounting for 44% of the growth observed for the period, with installed capacity reaching 48%, up 60% YoY.

• Crop Protection segment benefits from full effects of sales-force/channel re-organization, with this segment explaining close to 55% of the growth for the quarter.

• HB4 inventory ramp-up processes moving forward as discussed in previous Earnings Reports, with early season HB4 Soy planting completed and late season plantings, which represent the majority of the targeted hectares, to be initiated in the coming days. HB4 Wheat harvest already began and currently is at about 10% progress. On the regulatory front, no additional information was requested by Chinese regulators and Brazil’s CTNBio regarding HB4 Soy and HB4 Wheat, respectively.

• Ecotoxicological scoring added to ESG Report on HB4 inventories. Data gathered from crop maintenance practices and exposure to different active ingredients, translated into ecotoxicological scores to track reduction in chemical footprint on top of existing carbon and water footprint measurements. Current reporting level sets a new industry standard and highlights the value of identity preserved production systems, digital technology, and data science.

• Bioceres’ subsidiary Rizobacter Argentina S.A.completed a $16.1 million public offering of series VI corporate bonds in the Argentine capital market. The capital raised adds to the financial strength required to support working capital needs in the coming quarters.

MANAGEMENT REVIEW

Mr. Federico Trucco, Chief Executive Officer of Bioceres, commenting on the Company’s performance, said, “We are thrilled to report the first fiscal quarter´s financial performance and show that the positive momentum observed in the last two quarters further accelerated in the reported period. I would like to congratulate our operations team for effectively implementing the new strategies in the Crop Protection and nutrition segments, resulting in today’s growth. We expect to see similar growth in the seeds and integrated products segment in the upcoming quarters, primarily as HB4 inventories are no longer contributed but sold as seed or grain. We are also taking this opportunity to announce the addition of ecotoxicological indexes to our ESG Reporting process for HB4 inventories, which we believe will set a new industry standard. Understanding the environmental impact of exposure to different active ingredients, the carbon intensity of production processes, and the water footprint of an agricultural ecosystem, are key elements in designing and promoting 21^st century regenerative agriculture.”

Mr. Enrique Lopez Lecube, Chief Financial Officer of Bioceres, said, “I am very pleased with the performance of our business throughout the last couple of quarters. This is the result of a well-considered move implemented to reignite growth in two of our three main business segments. The 2H21 growth momentum in the Crop Protection and nutrition segments was boosted this last quarter, as we were able to timely capture some macro tailwinds. The high commodity price environment and the supply shortage of nitrogen-based fertilizers, combined with increased sales force focus, delivered outstanding results in our micro-beaded fertilizer line. Reaching $50 million dollars in LTM Adjusted EBITDA, even when this metric includes pre-operational expenses related to HB4 as well as the transitory effect of a softer performance in the second quarter of the previous fiscal year, highlights the resilience of our baseline business and gives us great confidence going forward.”

Key Operational Metrics (Figures in millions of US dollars, unless otherwise noted)

HB4 Wheat and HB4 Soy Metrics
Operational metrics will be updated in the upcoming quarter, 2Q22, at the end of HB4 wheat harvest and HB4 soy planting season.

Table 1: Key Financial Metrics (Figures in millions of US dollars, unless otherwise noted)
1Q22		As Reported				% Change
Revenue by Segment		1Q21		1Q22		Reported		Comparable1
Crop Protection		21.6		35.2		62%		58%
Seed and Integrated Products		8.7		9.0		3%		1%
Crop Nutrition		12.0		22.8		89%		83%
Total Revenue		42.4		66.9		58%		54%
Gross Profit		19.2		29.0		51%		39%
Gross Margin		45.4%		43.4%		(204 bps)		(442 bps)
Adjusted EBITDA		10.5		12.4		18%
Adjusted EBITDA Margin		24.9%		18.6%		(632 Bps)

1. Comparable excludes the impact of IAS29 as discussed in more detail on page 19.

For a full version of Bioceres Fiscal First Quarter 2022 Earnings Release, click here.

FISCAL FIRST 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 dos Santos Rocha 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:		Wednesday, November 10, 2021
Time:		8:30 a.m. ET, 5:30 a.m. PT
Toll Free dial-in number:		1-844-200-6205
Toll/International dial-in number:		1-929-526-1599
Conference ID:		756912
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 November 15, 2021 following the conference.

Toll Free Replay Number:		1-866-813-9403
International Replay Number:		+44 204 525 0658
Replay ID:		575325

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 09/30/2021		Three-month period ended 09/30/2020
Total revenue		66,906,245		42,355,261
Cost of sales		(37,882,452)		(23,112,642)
Gross profit		29,023,793		19,242,619
% Gross profit		43%		45%
Operating expenses		(17,601,661)		(11,116,455)
Share of profit of JV		(222,236)		239,712
Other income or expenses, net		(1,146,617)		5,190
Operating profit		10,053,279		8,371,066
Finance result		(5,179,668)		(12,735,462)
Profit before income tax		4,873,611		(4,364,396)
Income tax		(2,608,394)		(2,005,866)
Profit/ (Loss) for the period		2,265,217		(6,370,262)
Other comprehensive profit / (loss)		5,728,095		136,131
Total comprehensive Profit / (Loss)		7,993,312		(6,234,131)
Profit / (loss) for the period attributable to:
Equity holders of the parent		875,181		(6,971,558)
Non-controlling interests		1,390,036		601,296
		2,265,217		(6,370,262)
Total comprehensive income / (loss) attributable to:
Equity holders of the parent		5,722,061		(7,033,867)
Non-controlling interests		2,271,251		799,736
		7,993,312		(6,234,131)

Unaudited Consolidated Statement of Financial Position (Figures in US dollars)
ASSETS		09/30/2021		06/30/2021
CURRENT ASSETS
Cash and cash equivalents		36,631,549		36,046,113
Other financial assets		5,283,685		11,161,398
Trade receivables		94,809,859		88,784,172
Other receivables		15,527,400		11,153,705
Income and minimum presumed income taxes recoverable		969,921		990,881
Inventories		72,551,919		61,037,551
Biological assets		37,879,003		2,315,838
Total current assets		263,653,336		211,489,658
NON-CURRENT ASSETS
Other financial assets		935,851		1,097,462
Trade receivables		128,575		135,739
Other receivables		1,644,765		2,543,142
Income and minimum presumed income taxes recoverable		14,867		12,589
Deferred tax assets		3,802,891		3,278,370
Investments in joint ventures and associates		31,876,966		30,657,173
Property, plant and equipment		48,078,743		47,954,596
Intangible assets		70,287,443		67,342,362
Goodwill		30,468,839		28,751,206
Right-of-use leased asset		1,407,154		1,327,660
Total non-current assets		188,646,094		183,100,299
Total assets		452,299,430		394,589,957
LIABILITIES		09/30/2021		06/30/2021
CURRENT LIABILITIES
Trade and other payables		113,963,318		72,091,408
Borrowings		66,655,578		76,785,857
Employee benefits and social security		5,214,001		4,680,078
Deferred revenue and advances from customers		5,302,738		6,277,313
Income tax payable		10,520,678		7,452,891
Government grants		306		-
Lease liabilities		718,966		750,308
Total current liabilities		202,375,585		168,037,855
NON-CURRENT LIABILITIES
Borrowings		62,644,168		47,988,468
Government grants		-		784
Investments in joint ventures and associates		1,276,639		1,278,250
Deferred tax liabilities		24,965,998		25,699,495
Provisions		438,816		449,847
Consideration for acquisitions		12,075,576		11,790,533
Convertible notes		50,190,617		48,664,012
Lease liability		490,101		390,409
Total non-current liabilities		152,081,915		136,261,798
Total liabilities		354,457,500		304,299,653
EQUITY
Equity attributable to owners of the parent		73,748,046		67,743,242
Non-controlling interests		24,093,884		22,547,062
Total equity		97,841,930		90,290,304
Total equity and liabilities		452,299,430		394,589,957

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110005593/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 dos Santos Rocha

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.

FAQ

What were Bioceres Crop Solutions' Q1 2022 revenue figures?

Bioceres reported total comparable revenues of $64.8 million for Q1 2022, a 54% increase year-over-year.

What is the LTM Adjusted EBITDA for BIOX in Q1 2022?

For Q1 2022, Bioceres' LTM Adjusted EBITDA reached $50.2 million.

How did the Crop Nutrition segment perform in Q1 2022 for BIOX?

The Crop Nutrition segment accounted for 44% of the total revenue growth, reflecting significant demand.

Were there any regulatory issues reported for HB4 products?

No additional information was requested by Brazilian or Chinese regulators regarding the HB4 products.