Bioceres Crop Solutions Reports Fiscal Fourth Quarter and Full-Year 2024 Financial and Operational Results

Rhea-AI Summary

Bioceres Crop Solutions (NASDAQ: BIOX) reported its fiscal fourth quarter and full-year 2024 results. Key highlights include:

- FY24 total revenues of $464.8 million, up 11% year-over-year
- FY24 GAAP net income of $6.2 million
- FY24 adjusted EBITDA of $81.4 million
- Q4 revenues of $124.0 million, up 18% year-over-year
- Q4 adjusted EBITDA of $19.9 million, nearly doubling from last year

Growth was driven by increases in HB4 sales, adjuvants, and biostimulants. The company received approval for HB4 Wheat cultivation in the United States, expanding its market potential. Despite challenging agricultural conditions, Bioceres maintained profitability and demonstrated resilience in its diversified technology portfolio.

Positive

• Total revenues increased by 11% to $464.8 million in FY24
• Q4 revenues grew by 18% to $124.0 million
• Q4 adjusted EBITDA nearly doubled to $19.9 million
• HB4 Wheat approved for cultivation in the United States, expanding market potential
• Patent protection obtained for UHC biological nitrogen fixation solution
• Regulatory clearance received for bio-insecticide platform in Brazil

Negative

• GAAP net income decreased by 69% to $6.2 million in FY24
• Q4 GAAP net loss of $2.1 million, though improved from previous year
• Gross margin decreased by 381 basis points to 40.1% in FY24
• Challenging market conditions in some geographies impacted performance
• Lower accrual of Syngenta's upfront payment compared to previous year affected profitability

Insights

Financial Analyst

Bioceres Crop Solutions' FY24 results show resilience in a challenging agricultural market. Revenue grew 11% to $464.8 million, driven by HB4 sales, adjuvants and biostimulants. However, profitability metrics were mixed. While adjusted EBITDA remained stable at $81.4 million, GAAP net income declined 69% to $6.2 million.

The Q4 performance was particularly strong, with revenue up 18% and adjusted EBITDA nearly doubling. This suggests momentum heading into FY25. The approval of HB4 Wheat in the U.S. opens a significant new market, potentially doubling the company's addressable opportunity.

Investors should monitor the scaling of HB4 technology and the performance of new products like the UHC biological nitrogen fixation solution. While the company has shown adaptability, continued agricultural challenges could pressure margins in the short term.

Agricultural Biotechnology Expert

The approval of HB4 Wheat for cultivation in the United States is a significant milestone for Bioceres. As the world's fourth-largest wheat producer, this opens a substantial market for the company's drought-tolerant wheat variety. This regulatory endorsement not only provides validation for existing markets but also paves the way for expansion in North America.

The patent protection secured for the UHC biological nitrogen fixation solution is another critical development. This technology could be transformative in reducing synthetic fertilizer use, aligning with global sustainability trends. The regulatory clearance for the bio-insecticide platform in Brazil further strengthens Bioceres' position in the growing biological crop protection market.

These advancements position Bioceres well in the evolving agricultural biotechnology landscape, where climate-resilient and eco-friendly solutions are increasingly in demand. However, the company must navigate the challenges of scaling these technologies and gaining farmer adoption in competitive markets.

Market Research Analyst

Bioceres' performance should be viewed in the context of broader agricultural market trends. The company's growth despite challenging on-farm economics in key crops and geographies is noteworthy. The 70% year-over-year growth in the Seed and Integrated Products segment, largely driven by HB4, indicates strong market traction for this technology.

The decline in the Crop Nutrition segment (10% YoY) reflects the volatility in the fertilizer market. However, Bioceres' diversified portfolio has helped offset this weakness. The company's focus on biological solutions and climate-resilient crops aligns with the growing trend towards sustainable agriculture.

Looking ahead, the expansion of HB4 wheat into the U.S. market could be a game-changer. However, Bioceres will need to navigate regulatory hurdles and consumer acceptance in new markets. The company's ability to scale its innovative technologies while maintaining profitability will be important for long-term success in the competitive ag-tech sector.

Revenues up 18% in 4Q24, consolidating annual revenues of $465 million

FY24 GAAP net income at $6.2 million and adjusted EBITDA¹ at $81.4 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 fourth quarter and fiscal year ended June 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 FY24 were $464.8 million, an 11% growth compared to the year before despite challenging market conditions in some geographies. Revenue growth in FY24 was largely driven by increases in HB4 sales, adjuvants and biostimulants. Operating profit for the period was $44.8 million with GAAP net income at $6.2 million. Adjusted EBITDA for the full fiscal year was $81.4 million, steady with respect to last year as growth in the business compensated for the lower accrual of Syngenta´s up-front payment versus last year.
• Revenues in 4Q24 were $124.0 million, an 18% growth compared to the year before, primarily led by higher HB4 sales. Operating profit was $9.5 million, and GAAP net loss was $2.1 million in 4Q24, improving by 86% and 25%, respectively. Adjusted EBITDA for the quarter was $19.9 million, almost doubling last year´s metric.
• HB4 Wheat approved for cultivation in the United States, the fourth largest wheat producer in the world and the largest in the Americas. United States is now the fourth country in the world to greenlight production of HB4 wheat, following Argentina, Brazil and Paraguay.

Management Review

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “In fiscal year 2024 we consolidated Bioceres’ financial performance at record-high revenue and adjusted EBITDA levels, despite it having been another challenging year for agriculture, with on-farm economics declining in key crops and geographies. The annual result was achieved through sales growth and an almost doubling of adjusted EBITDA in the fourth and final quarter of the year, with close to half of the increased profitability of the quarter resulting from the HB4 business.

_________________________________

1 Adjusted EBITDA is a non-GAAP measure. See “Use of non-IFRS financial information” for information regarding our use of Adjusted EBITDA and its reconciliation from the most comparable financial measure.

“We are increasingly excited by the prospects for our most innovative technologies. Earlier in the fiscal year, we obtained patent protection for our UHC biological nitrogen fixation solution, as well as regulatory clearance for our bio-insecticide platform in Brazil, both of which are critical for near-term expansion in the high-growth seed-applied technologies market. More recently, we received notice from APHIS that green-lights cultivation of HB4 wheat in the U.S., an outcome which was long awaited. This regulatory endorsement helps us in markets where we are already scaling HB4 sales, as it provides additional validation or regulatory comfort. In the medium term, it allows us to expand into a new and important geography, potentially doubling the combined opportunity of Latin America and Australia.

“As we look ahead, we remain focused on launching and scaling our portfolio of unique technologies, while constantly engaging with farmers and other stakeholders to fine-tune our value proposition and market access strategies.”

Mr. Enrique Lopez Lecube, Bioceres' Chief Financial Officer, noted: “Our financial results for FY24 demonstrate once again the resilience of our business and the strategic value of maintaining a diversified yet coherent and continuously evolving portfolio of technologies. In the fourth quarter, we increased our profitability across operating profit and net income and doubled adjusted EBITDA, despite encountering challenging conditions for certain products in the final months of the fiscal year, particularly fertilizers, that impeded our ability to excel in every aspect and achieve annual EBITDA growth from last year’s record high. Annually we achieved top line growth and maintained our full-year adjusted EBITDA above last year’s $81 million threshold, while successfully managing our cost base within a context of industry-wide headwinds that prevailed for most of the year. We intend this year’s result to be a steppingstone towards greater performance as we continue expanding our business with a focus on profitability and enhanced financial performance.”

Key Financial Metrics

Table 1:
4Q24 & FY24 Key Financial Metrics
(In millions of U.S. dollars)	4Q23	4Q24	%CHANGE	FY23	FY24	%CHANGE
Revenue by Segment
Crop Protection	45.1	53.2	18%	206.1	227.2	10%
Seed and Integrated Products	20.8	33.3	60%	56.7	96.4	70%
Crop Nutrition	38.8	37.5	(3%)	157.3	141.2	(10%)
Total Revenue	104.7	124.0	18%	420.1	464.8	11%
Gross Profit	40.2	47.4	18%	184.6	186.6	1%
Gross Margin	38.4%	38.3%	(15 bps)	43.9%	40.1%	(381 bps)
	4Q23	4Q24	%CHANGE	FY23	FY24	%CHANGE
GAAP net income or loss	(2.8)	(2.1)	25%	20.2	6.2	(69%)
Adjusted EBITDA	10.5	19.9	90%	81.2	81.4	0%

4Q24 Summary: Quarterly revenues were $124.0 million, an 18% increase compared to the same quarter last year. In the fourth quarter, revenue growth was led by HB4 sales as the winter wheat season got underway in the southern hemisphere. Gross profit was $47.4 million, an 18% year-over-year growth, primarily driven by HB4 in Seed and Integrated Products and gross margin expansion in Crop Protection. Operating profit reached $9.5 million, and GAAP net loss was $2.1 million, improving by 86% and 25% compared to the previous year, respectively. Adjusted EBITDA was $19.9 million, almost doubling last year´s metric, on the back of improved gross profit and operational leverage.

FY24 Summary: Total revenues reached $464.8 million in FY24, an 11% year-over-year increase. Growth for the year was primarily driven by the normalization of weather conditions in the southern hemisphere, with HB4 sales, adjuvants, and other crop protection products leading the growth. Biostimulant sales in Europe also contributed to the year-over-year increase. Gross profit remained flat given the lower accrual of Syngenta’s upfront payment in the product mix compared to the previous year. GAAP net income and adjusted EBITDA were $6.2 million and $81.4 million, respectively, compared to $20.2 million and $81.2 million in the previous year. Adjusted EBITDA showed little change year over year, in line with gross profit performance. Deliberate cost management resulted in SG&A growth being almost entirely attributable to variable expenses which, combined with improved JV results and other income and expenses performance, resulted in steady profitability for the year.

For a full version of Bioceres’ fourth quarter & full fiscal year 2024 earnings release, click here.

Fourth Quarter & Full Fiscal Year 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, September 10, 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 September 17, 2024, following the conference. Toll Free Replay Number: 1-866-813-9403 International Replay Number: +44 204 525 0658 Replay ID: 272680
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: 763481
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.

Unaudited Consolidated Statement of Comprehensive Income
(Figures in million of U.S. dollars)
		Three-month period ended 06/30/2024		Three-month period ended 06/30/2023		Fiscal Year ended 06/30/2024			Fiscal Year ended 06/30/2023
Revenues from contracts with customers		124.3		105.1		464.8			419.4
Initial recognition and changes in the fair value of biological assets at the point of harvest		(0.3)		(0.4)		(0.0)			0.6
Cost of sales		(76.6)		(64.5)		(278.2)			(235.5)
Gross profit		47.4		40.2		186.6			184.6
% Gross profit		38%		38%		40%			44%
Operating expenses		(36.9)		(32.8)		(140.9)			(128.3)
Share of profit of JV		(0.4)		(0.1)		4.0			1.2
Change in net realizable value of agricultural products		(0.4)		(1.5)		(2.4)			(4.4)
Other income or expenses, net		(0.3)		(0.7)		(2.5)			1.1
Operating profit		9.5		5.1		44.8			54.2
Financial result		(15.6)		(9.5)		(34.8)			(35.1)
Profit/(loss) before income tax		(6.1)		(4.4)		10.0			19.1
Income tax		4.0		1.6		(3.8)			1.1
Profit/(loss) for the period		(2.1)		(2.8)		6.2			20.2
Other comprehensive loss		(0.5)		(1.4)		(0.8)			(0.8)
Total comprehensive profit/(loss)		(2.6)		(4.2)		5.4			19.3
Profit/(loss) for the period attributable to:
Equity holders of the parent		(1.6)		(1.7)		3.2			18.8
Non-controlling interests		(0.5)		(1.1)		3.0			1.4
		(2.1)		(2.8)		6.2			20.2
Total comprehensive profit/(loss) attributable to:
Equity holders of the parent		(1.9)		(2.9)		2.7			17.9
Non-controlling interests		(0.7)		(1.3)		2.7			1.4
		(2.6)		(4.2)		5.4			19.3
Weighted average number of shares
Basic		62.8		62.0		62.8			62.1
Diluted		63.8		63.1		63.8			63.2

Unaudited Consolidated Statement of Financial Position
(Figures in million of U.S. dollars)
ASSETS		06/30/2024		06/30/2023
CURRENT ASSETS
Cash and cash equivalents		44.2		48.1
Other financial assets		10.1		12.1
Trade receivables		214.7		158.0
Other receivables		26.7		28.8
Income and minimum presumed recoverable income taxes		0.8		9.4
Inventories		122.8		140.4
Biological assets		0.3		0.1
Total current assets		419.5		397.1
NON-CURRENT ASSETS
Other financial assets		2.2		0.4
Other receivables		2.5		2.5
Income and minimum presumed recoverable income taxes		0.0		0.0
Deferred tax assets		32.6		7.3
Investments in joint ventures and associates		39.5		39.3
Investment properties		0.6		3.6
Property, plant and equipment		73.8		67.9
Intangible assets		174.7		173.8
Goodwill		112.2		112.2
Right of use asset		11.4		13.9
Total non-current assets		449.3		420.9
Total assets		868.8		818.1
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		168.1		150.8
Borrowings		136.0		107.6
Employee benefits and social security		7.3		9.6
Deferred revenue and advances from customers		3.9		24.9
Income tax payable		4.8		0.5
Consideration for acquisition		4.1		1.4
Lease liabilities		3.1		3.9
Total current liabilities		327.3		298.7
NON-CURRENT LIABILITIES
Borrowings		42.1		60.7
Deferred revenue and advances from customers		1.9		2.1
Joint ventures and associates		-		0.6
Deferred tax liabilities		56.9		35.8
Provisions		0.9		0.9
Consideration for acquisition		2.1		3.6
Secured notes		80.8		75.2
Lease liabilities		8.0		10.0
Total non-current liabilities		192.8		188.9
Total liabilities		520.1		487.6
EQUITY
Equity attributable to owners of the parent		314.0		298.6
Non-controlling interests		34.8		31.9
Total equity		348.7		330.5
Total equity and liabilities		868.8		818.1

 

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Bioceres Crop Solutions

Paula Savanti

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.

FAQ

What were Bioceres Crop Solutions' (BIOX) revenue and EBITDA for fiscal year 2024?

Bioceres Crop Solutions reported total revenues of $464.8 million and adjusted EBITDA of $81.4 million for fiscal year 2024.

How did Bioceres (BIOX) perform in Q4 2024 compared to the previous year?

In Q4 2024, Bioceres' revenues increased by 18% to $124.0 million, and adjusted EBITDA nearly doubled to $19.9 million compared to the same quarter last year.

What major regulatory approval did Bioceres (BIOX) receive for HB4 Wheat in 2024?

Bioceres received approval for HB4 Wheat cultivation in the United States, the fourth largest wheat producer in the world and the largest in the Americas.

What were the main drivers of Bioceres' (BIOX) revenue growth in fiscal year 2024?

Revenue growth in FY24 was largely driven by increases in HB4 sales, adjuvants, and biostimulants, despite challenging market conditions in some geographies.

How did Bioceres' (BIOX) GAAP net income change in fiscal year 2024 compared to 2023?

Bioceres' GAAP net income decreased from $20.2 million in FY23 to $6.2 million in FY24, a 69% decline year-over-year.