Bioceres Crop Solutions Reports Fiscal First Quarter 2025 Financial and Operational Results

Rhea-AI Summary

Bioceres Crop Solutions (NASDAQ: BIOX) reported fiscal Q1 2025 results with total revenues of $93.3 million, down 20% from $116.6 million in Q1 2024. The company posted a net loss of $5.3 million and Adjusted EBITDA of $8.5 million. Performance was impacted by slow summer crop season in Argentina due to delayed rains, though partially offset by growth in North America and Brazil. Gross profit declined 17% to $37.5 million, while gross margin improved to 40.2%. The company secured regulatory approvals for HB4 soybean production in Uruguay and Bolivia, and its RinoTec technology received EPA's Green Chemistry Challenge Award.

Positive

• Gross margin improved to 40.2% from 38.6% YoY
• Growth in North America and Brazil markets
• Obtained HB4 soybean regulatory approvals in Uruguay and Bolivia
• RinoTec technology received EPA's Green Chemistry Challenge Award

Negative

• Revenue declined 20% YoY to $93.3 million
• Net loss increased to $5.3 million from $2.7 million YoY
• Adjusted EBITDA decreased 48% to $8.5 million
• Operating profit declined to $3.4 million

Insights

Financial Analyst

The Q1 2025 results reveal significant challenges, with $93.3 million in revenue marking a 20% YoY decline from $116.6 million. Key concerns include the $5.3 million net loss, deteriorating from last year's $2.7 million loss and a 48% drop in Adjusted EBITDA to $8.5 million.

While gross margin improved by 161 basis points to 40.2%, this was primarily due to product mix optimization rather than operational strength. The geographic diversification strategy shows promise, with growth in North America and Brazil partially offsetting Argentina's weakness. However, weather-related challenges and market headwinds in Argentina, particularly affecting crop protection products and micro-beaded fertilizers, significantly impacted overall performance.

The company's focus on working capital management and higher-margin products demonstrates prudent financial stewardship, but near-term challenges persist in core markets.

Market Research Analyst

The market dynamics reveal a complex landscape with regional variations. Argentina's agricultural sector faces structural challenges, including delayed rains and shifts from corn to soybean acreage, indicating changing farmer behavior patterns. The "just-in-time" purchasing trend suggests cautious inventory management by customers, potentially impacting future quarters.

Notably, the expansion in Brazil and North America markets demonstrates successful market penetration despite industry headwinds. The regulatory approvals for HB4 soybean in Uruguay and Bolivia complete the technology's clearance across the Americas, opening significant market opportunities. However, the immediate revenue impact may be by current market conditions and seasonal factors.

Total revenues in 1Q25 were $93.3 million

1Q25 net loss¹ was $5.3 million and Adjusted EBITDA¹ was $8.5 million

ROSARIO, Argentina--(BUSINESS WIRE)-- 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 fiscal first quarter ended September 30, 2024. 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 1Q25 were $93.3 million, compared to $116.6 million in the same quarter last year. Results were driven by performance in Argentina, where the summer crop season began at an unusually slow pace due to delayed rains and just-in-time purchasing behavior. North America and Brazil gained momentum, despite lingering market headwinds, and partially offset the soft performance in Argentina.
• Operating profit¹ was $3.4 million and net loss¹ was $5.3 million. Adjusted EBITDA¹ for the quarter was $8.5 million.
• RinoTec technology received EPA’s Green Chemistry Challenge Award in the Design of Safer and Degradable Chemicals category.
• Regulatory approvals for HB4 soybean production were obtained in Uruguay and Bolivia, marking full clearance for the technology across all soybean producing countries in the Americas.

Management Review

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “As farmers understand better than anyone else, agriculture is inherently dependent on weather. While, as a technology company we are dedicated to helping farmers navigate this reality, our business cycle also faces weather-related impacts. To mitigate these effects, we rely on portfolio diversification across product types, usage timing, and multiple crops. However, much like in farming itself, geographic diversification remains the most effective hedge against weather events.

This quarter, we saw the benefits of this strategy, with positive contributions from Brazil, the United Sates, and our Syngenta collaboration outside of Argentina. Together, these almost doubled their share of total sales and, even more importantly, expanded their contribution to total gross profit by 2.5 times. This positive international performance, coupled with fully normalized rainfall in Argentina, allows us to remain optimistic for the rest of the fiscal year.

That said, we remain focused on cost management and a disciplined approach to capital allocation, aiming to both adapt to and increase our flexibility amid current market conditions. At the same time, our commitment to advancing our unique portfolio of technologies is unaltered, encouraged by the recognition and validation our technologies continue to receive from regulators worldwide, as highlighted in this quarter’s report.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: "Results for the quarter were marked by a slower-than-usual start to the high season and tough market conditions in Argentina, partially offset by strong performance in North America and Brazil. This highlights the importance of our evolving strategy of geographic and portfolio diversification. Moving forward, capital allocation will continue to prioritize products and technologies with lower-risk and near-term payback periods. Coupled with a more disciplined approach to working capital management, this aims to enhance cash generation for the fiscal year, while preserving the long-term intrinsic value of our unique portfolio of current and future technologies.”

Key Financial Metrics

Table 1: 1Q25 Key Financial Metrics
(In millions of U.S. dollars)	1Q24	1Q25	%CHANGE
Revenue by Segment
Crop Protection	55.9	47.7	(15%)
Seed and Integrated Products	22.3	19.8	(11%)
Crop Nutrition	38.3	25.7	(33%)
Total Revenue	116.6	93.3	(20%)
Gross Profit	45.0	37.5	(17%)
Gross Margin	38.6%	40.2%	161 bps

	1Q24	1Q25	%CHANGE
Net income or loss 1	(2.7)	(5.3)	(96%)
Adjusted EBITDA 1	16.3	8.5	(48%)

1Q25 Summary: Revenues for the quarter totaled $93.3 million, compared to $116.6 million in the same period last year. The beginning of summer crop planting in Latin America was marked by unfavorable market conditions in Argentina, where a slow start to the season, driven primarily by weather, affected sales of crop protection products and primarily drove results for the country. Sales of micro-beaded fertilizers in Argentina remained under pressure due to an unusual shift of corn acreage into soybeans. Importantly, key markets such as North America and Brazil posted growth, despite lingering headwinds. Gross profit for the quarter was $37.5 million, reflecting a 17% decline, consistent with the decline in sales. However, overall gross margin improved driven by a strategic focus on products with higher margins and more favorable cash conversion cycles, in line with the Company’s strengthened emphasis on cash generation and working capital management. This shift led to a reduced focus on third-party products sales, which faced heightened competition and price pressure in Argentina’s crop protection industry. Operating profit¹ for the quarter was $3.4 million, with a net loss¹ of $5.3 million. Adjusted EBITDA¹ for the quarter was $8.5 million.

For a full version of Bioceres’ first quarter fiscal year 2025 earnings release, click here.

Fiscal First Quarter 2025 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 12, 2024	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, 2024, following the conference.   Toll Free Replay Number: 1-866-813-9403   International Replay Number: Click here   Replay ID: 649318
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: 305729
Webcast: Click here

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 any such forward-looking statements 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 and (ii) 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 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.

¹ Please refer to “Use of non-IFRS financial information” for information regarding net loss, operating profit and our use of Adjusted EBITDA and its reconciliation from the most comparable financial measure.

Unaudited Consolidated Statement of Comprehensive Income (Figures in million of U.S. dollars)
	Three-month period ended 09/30/2024		Three-month period ended 09/30/2023
Revenues from contracts with customers	92.6		116.2
Initial recognition and changes in the fair value of biological assets at the point of harvest	0.7		0.4
Cost of sales	(55.8)		(71.6)
Gross profit	37.5		45.0
% Gross profit	40%		39%
Operating expenses	(34.6)		(38.5)
Share of profit of JV	(0.6)		1.5
Change in net realizable value of agricultural products	0.6		(1.4)
Other income or expenses, net	0.5		(1.2)
Operating profit	3.4		5.3
Financial result	(9.8)		(7.5)
Profit/(loss) before income tax	(6.4)		(2.2)
Income tax	1.2		(0.4)
Profit/(loss) for the period	(5.3)		(2.7)
Other comprehensive loss	0.0		(0.9)
Total comprehensive profit/(loss)	(5.3)		(3.6)
Profit/(loss) for the period attributable to:
Equity holders of the parent	(5.4)		(4.6)
Non-controlling interests	0.2		1.9
	(5.3)		(2.7)
Total comprehensive profit/(loss) attributable to:
Equity holders of the parent	(5.5)		(5.4)
Non-controlling interests	0.2		1.8
	(5.3)		(3.6)

Weighted average number of shares
Basic	62.9	62.8
Diluted	62.9	62.8

Unaudited Consolidated Statement of Financial Position (Figures in million of U.S. dollars)
ASSETS	09/30/2024	06/30/2024
CURRENT ASSETS
Cash and cash equivalents	32.3	44.5
Other financial assets	5.9	11.7
Trade receivables	195.4	207.3
Other receivables	22.9	18.3
Recoverable income taxes	1.0	0.7
Inventories	117.7	125.9
Biological assets	1.6	0.3
Total current assets	376.7	408.7
NON-CURRENT ASSETS
Other financial assets	0.6	0.6
Other receivables	18.5	18.0
Recoverable income taxes	0.0	0.0
Deferred tax assets	10.7	9.7
Investments in joint ventures and associates	40.0	39.8
Investment properties	0.6	0.6
Property, plant and equipment	74.6	74.6
Intangible assets	176.5	174.8
Goodwill	112.2	112.3
Right of use asset	17.3	11.6
Total non-current assets	450.8	442.0
Total assets	827.5	850.6
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	149.9	168.7
Borrowings	121.5	136.7
Employee benefits and social security	8.3	7.3
Deferred revenue and advances from customers	5.7	3.9
Income tax payable	3.8	4.8
Consideration for acquisition	5.6	4.8
Lease liabilities	1.3	3.1
Total current liabilities	296.2	329.5
NON-CURRENT LIABILITIES
Borrowings	46.1	42.1
Deferred revenue and advances from customers	1.9	1.9
Joint ventures and associates	1.1	0.3
Deferred tax liabilities	34.7	34.5
Provisions	1.3	1.3
Consideration for acquisition	2.2	2.5
Secured notes	82.6	80.8
Lease liabilities	15.5	8.2
Total non-current liabilities	185.4	171.6
Total liabilities	481.6	501.1
EQUITY
Equity attributable to owners of the parent	309.4	314.0
Non-controlling interests	36.6	35.6
Total equity	345.9	349.6
Total equity and liabilities	827.5	850.6

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241111759157/en/

Bioceres Crop Solutions

Paula Savanti

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.

FAQ

What was Bioceres (BIOX) revenue in Q1 2025?

Bioceres reported revenue of $93.3 million in Q1 2025, representing a 20% decrease from $116.6 million in Q1 2024.

What caused the revenue decline for Bioceres (BIOX) in Q1 2025?

The revenue decline was primarily due to delayed rains and slow summer crop season in Argentina, along with unfavorable market conditions affecting crop protection product sales.

What new regulatory approvals did Bioceres (BIOX) receive in Q1 2025?

Bioceres received regulatory approvals for HB4 soybean production in Uruguay and Bolivia, completing clearance across all soybean-producing countries in the Americas.

What was Bioceres (BIOX) gross margin in Q1 2025?

Bioceres reported a gross margin of 40.2% in Q1 2025, an improvement of 161 basis points from 38.6% in Q1 2024.