Bioceres Crop Solutions Reports Fiscal Fourth Quarter and Full-Year 2022 Financial and Operational Results

Rhea-AI Summary

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) reported strong financial results for the fourth quarter and fiscal year ended June 30, 2022. The fourth quarter saw a 44% increase in comparable revenues to $104.1 million, while full fiscal year revenues rose 62% to a record $319.3 million. HB4 Wheat revenues of $12.4 million marked a 94% increase YoY. Gross profit for the quarter was $41.4 million, a 32% increase, and Adjusted EBITDA reached $61.9 million, up 24%.

Successful mergers and ongoing regulatory approvals for HB4 products further bolster the company’s growth prospects.

Positive

• 4Q22 revenues increased 44% to $104.1 million.
• FY22 revenues rose 62% to a record $319.3 million.
• First-time HB4 Wheat revenues of $12.4 million, up 94% YoY.
• Comparable gross profit grew 32% to $41.4 million in 4Q22.
• Record FY22 Adjusted EBITDA of $61.9 million, a 24% increase.

Negative

• Gross margins decreased by 484 basis points due to product mix.
• Increased HB4 pre-launch costs, up 286% in 4Q22.

Fourth quarter 44% top line growth consolidated record full fiscal year revenues, with LTM baseline adjusted EBITDA¹ at $61.9 million

HB4 revenues reported for the first time, with an increase of 94% compared to HB4 wheat contributed goods YoY

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, announced financial results for the fiscal fourth quarter and fiscal year ended June 30, 2022. Financial results are expressed in US 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

• 4Q22 numbers continued strong growth from previous quarters, with comparable revenues up 44% to $104.1 million. Comparable revenues for FY22 increased 62% to a record $319.3 million. Metrics do not include ProFarm numbers, which will be consolidated as of 1Q23.
• HB4 Wheat revenues were $12.4 million, a 94% increase compared to the year-ago contributed goods number.
• Comparable gross profit for the quarter increased 32% compared to the year-ago quarter, reaching $41.4 million. Comparable gross profit for the full fiscal year reached a record of $136.9 million, up 45% compared to FY21.
• Adjusted EBITDA, excluding HB4 pre-launch costs, reached $61.9 million in FY22, a 24% increase compared to the previous fiscal year. Adjusted EBITDA number significantly underestimated as a result of the accounting impact of IAS29.
• HB4 Soy harvest completed in Argentina. Two varieties advanced for commercial launch with selected multipliers/distributors in the upcoming season. Seed multiplication in Brazil advancing under HB4 Program approach. Two varieties on track for Brazil launch in 2023/24 season.
• Key feed and food clearances obtained during FY22 including China´s Ministry of Agriculture approval for HB4 Soy and the U.S. Food and Drug Administration (FDA) favorable conclusion on HB4 Wheat safety assessment. Other feed and food approvals for HB4 Wheat include Brazil, Colombia, Australia, New Zealand and Nigeria for HB4 Wheat.
• Completed merger with Marrone Bio Innovations, Inc. (now ProFarm Group) on July 12, 2022. Integration process well under way.

MANAGEMENT REVIEW

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “We are very proud of the performance delivered by our teams in the fourth quarter and full fiscal year 2022. This last quarter was particularly challenging since we are comparing to a record setting quarter of last year (4Q21) when we grew at close to 40% compared to 4Q20. This is an amazing closing to an amazing year, not only reflected in our record setting financials but also in terms of achieving gatekeeping regulatory clearances, namely feed & food approvals for HB4 Wheat in Brazil and for HB4 Soy in China. We are for the first time reporting revenues associated to the HB4 technology, resulting from the one crop where we faced the most skepticism: HB4 Wheat. This technology is now not only green-lighted by a growing number of regulators, including the U.S. FDA, but also increasingly accepted growers, industry participants and consumers at the end. Today we have more than 20 processors incorporating HB4 wheat in their products with a similar number being onboarded in the next few months. We have consumer brands actively addressing HB4 Wheat merits, and we have successfully executed the first export operation for HB4 Wheat flour to Brazil. A post-approval survey in Brazil showed that close to 70% of consumers had no concerns on GMO wheat, an observation that helped change the position of key groups that historically rejected transgenics in the crop. With this we are not saying that the job is done, it is far from being done. But we are obviously thrilled to see this progress and very proud of our global leadership in this front.”

Trucco added, “Furthermore, as we look into FY23 and beyond, we are invigorated by the opportunities ahead. Right after the quarters’ end and less than four months since the announcement, we have successfully merged with and de-listed Marrone Bio Innovations. Like the Rizobacter integration back in 2016, we believe this merger will be transformational for us. With our new colleagues, we are focused on the integration and expansion of our business and on combining our relative strengths to create a formidable company with a unique product offering and outstanding global reach.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted, “We continued our outstanding performance during the fourth quarter, closing out our tremendous fiscal year on a high note. We delivered annual top-line growth of 62% with our initial HB4 revenues of $12.4 million. We also executed a transformational merger with Marrone Bio Innovations, that significantly enriches our portfolio of biological products, diversifies our revenue sources, and broadens our sources of growth. Throughout the year, we benefited from positive tailwinds that accelerated adoption of our technologies and achieved multiple milestones on the regulatory front. We also faced some headwinds that affected our logistics and manufacturing costs, but overall, we were able to successfully weather supply chain disruptions and unfavorable macro dynamics. As we move into the new fiscal year, we are focused on solidifying and growing from this new revenue base with the financial and strategic resources to deliver greater value to our shareholders.”

KEY FINANCIAL METRICS

(In millions of US dollars, unless where otherwise stated)

Table 1: 4Q22 Key Financial Metrics
4Q22	Comparable		% Change
Revenue by Segment	4Q21	4Q22	Comparable1	As Reported
Crop Protection	42.9	49.7	16%	5%
Seed and Integrated Products	6.8	21.5	215%	118%
Crop Nutrition	22.7	32.9	45%	37%
Total Revenue	72.4	104.1	44%	29%
Gross Profit	31.4	41.4	32%	12%
Gross Margin	43.40%	39.80%	(366 bps)	(526 bps)
	As Reported		% Change
Adjusted EBITDA	16.6	14.6	-12%
HB4 pre-launch costs	0.8	3.2	286%
Baseline Business Adjusted EBITDA	17.4	17.7	2%
1. Comparable excludes the impact of IAS29 as discussed in more detail on page 13.

4Q22 – Summary: Comparable revenues in 4Q22 rose 44% from those in 4Q21, reaching $104.1 million, a company record for any quarter. The increased comparable revenues were mainly driven by the company’s first revenues for HB4 Wheat, greater adoption of Bioceres’ micro-beaded fertilizers in Brazil and Argentina, as well as growth in third-party crop protection products. Comparable gross profit increased 32%, although gross margins were somewhat lower reflecting a product mix in the quarter weighted to crop protection products. The 4Q22 Adjusted EBITDA excluding pre-launch costs was 2% higher, at $17.7 million. In preparation for commercialization, HB4 pre-launch costs increased as expected, to $3.2 million in 4Q22, compared to $0.8 million YoY.

Table 2: Full Fiscal Year 2022 Key Financial Metrics
	Comparable		% Change
Revenue by Segment	FY21	FY22	Comparable1	As Reported
Crop Protection	107.6	166.4	55%	53%
Seed and Integrated Products	31	48.9	58%	47%
Crop Nutrition	58.8	103.9	77%	80%
Total Revenue	197.4	319.3	62%	60%
Gross Profit	94.2	136.9	45%	39%
Gross Margin	47.70%	42.90%	(484 bps)	(560 bps)
	As Reported		% Change
Adjusted EBITDA	48.3	51.5	7%
HB4 pre-launch costs	1.6	10.3	563%
Baseline Business Adjusted EBITDA	49.9	61.9	24%
1. Comparable excludes the impact of IAS29 as discussed in more detail on page 13.

FY22 - Summary: Comparable revenues in FY22 of $319.3 million were also a record for the company, and for each product segment, increasing overall by 62%. Sales benefited from the strategic efforts to broaden geographic reach and deepen market penetration, with greater grower adoption of inoculants, micro-beaded fertilizers, and third-party products. First-time revenues of $12.4 million for HB4 Wheat also contributed to FY22 top line growth. Comparable gross profit grew by 45% to $136.9 million, although gross margins declined by 484 basis points as a function of product mix. Adjusted EBITDA and Baseline Business Adjusted EBITDA, increased by 7% and 24% respectively, as a result of both sales and gross profit increases.

For a full version of Bioceres fourth quarter & full-year 2022 earnings release, click here.

FOURTH QUARTER & FULL-FISCAL YEAR 2022 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, September 8, 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:	112267
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 September 13, 2022, following the conference.

Toll Free Replay Number:	1-866-813-9403
International Replay Number:	+44 204 525 0658
Replay ID:	676507

¹ Baseline adjusted EBITDA excludes HB4 pre-launch costs

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 US dollars)
	Three-month period ended 06/30/2022	Three-month period ended 06/30/2021		Fiscal year ended 06/30/2022	Fiscal year ended 06/30/2021
Total revenue	105,749,320	82,211,113		334,800,936	209,526,177
Cost of sales	-69,299,211	-49,553,410		-208,338,098	-118,641,803
Gross profit	36,450,109	32,657,703		126,462,838	90,884,374
% Gross profit	34%	40%		38%	43%
Operating expenses	-26,799,025	-18,112,187		-84,482,306	-53,219,556
Share of profit of JV	429,285	-214,499		1,144,418	997,429
Other income or expenses, net	-39,356	-624,808		-3,195,056	-279,359
Operating profit	10,041,013	13,706,209		39,929,894	38,382,888
Finance result	-7,768,098	-4,212,002		-25,953,635	-27,852,340
Profit before income tax	2,272,915	9,494,207		13,976,259	10,530,548
Income tax	-6,952,138	-8,119,007		-18,028,709	-14,351,170
Profit / (Loss) for the period	-4,679,223	1,375,200		-4,052,450	-3,820,622
Other comprehensive profit / (loss)	9,181,967	7,344,254		35,172,250	10,051,318
Total comprehensive Profit / (Loss)	4,502,744	8,719,454		31,119,800	6,230,696
Profit / (loss) for the period attributable to:
Equity holders of the parent	-5,146,706	633,686		-7,332,197	-6,870,163
Non-controlling interests	467,483	741,514		3,279,747	3,049,541
	-4,679,223	1,375,200		-4,052,450	-3,820,622
Total comprehensive profit / (loss) attributable to:
Equity holders of the parent	2,327,191	6,838,210		22,013,125	1,559,264
Non-controlling interests	2,175,553	1,881,244		9,106,675	4,671,432
	4,502,744	8,719,454		31,119,800	6,230,696

 

Unaudited Consolidated Statement of Financial Position (Figures in US dollars)
ASSETS	06/30/2022		06/30/2021
CURRENT ASSETS
Cash and cash equivalents	33,404,416		36,046,113
Other financial assets	4,668,728		11,161,398
Trade receivables	111,327,322		88,784,172
Other receivables	19,557,901		11,153,705
Income and minimum presumed income taxes recoverable	1,647,398		990,881
Inventories	126,125,724		61,037,551
Biological assets	49,523		2,315,838
Total current assets	296,781,012		211,489,658
NON-CURRENT ASSETS
Other financial assets	619,841		1,097,462
Trade receivables	200,412		135,739
Other receivables	2,165,718		2,543,142
Income and minimum presumed income taxes recoverable	44,412		12,589
Deferred tax assets	4,333,451		3,278,370
Investments in joint ventures and associates	38,554,092		30,657,173
Property, plant and equipment	49,823,879		47,954,596
Intangible assets	76,956,604		67,342,362
Goodwill	36,723,978		28,751,206
Right-of-use leased asset	12,144,026		1,327,660
Total non-current assets	221,566,413		183,100,299
Total assets	518,347,425		394,589,957
LIABILITIES	06/30/2022		06/30/2021
CURRENT LIABILITIES
Trade and other payables	117,674,880		72,091,408
Borrowings	78,588,637		76,785,857
Employee benefits and social security	7,624,175		4,680,078
Deferred revenue and advances from customers	5,757,553		6,277,313
Income tax payable	7,538,764		7,452,891
Lease liabilities	1,412,904		750,308
Total current liabilities	218,596,913		168,037,855
NON-CURRENT LIABILITIES
Borrowings	74,177,169		47,988,468
Government grants	-		784
Investments in joint ventures and associates	717,948		1,278,250
Deferred tax liabilities	29,102,169		25,699,495
Provisions	603,022		449,847
Consideration for acquisitions	13,373,022		11,790,533
Convertible notes	12,559,071		48,664,012
Lease liability	10,338,380		390,409
Total non-current liabilities	140,870,781		136,261,798
Total liabilities	359,467,694		304,299,653
EQUITY
Equity attributable to owners of the parent	127,225,994		67,743,242
Non-controlling interests	31,653,737		22,547,062
Total equity	158,879,731		90,290,304
Total equity and liabilities	518,347,425		394,589,957

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220908005445/en/

Bioceres Crop Solutions

Paula Savanti

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.

FAQ

What were Bioceres' fourth quarter financial results for FY22?

Bioceres reported a 44% increase in fourth quarter revenues to $104.1 million with a gross profit of $41.4 million.

How did HB4 Wheat revenue perform in FY22 for Bioceres?

HB4 Wheat generated $12.4 million in revenue, representing a 94% increase compared to the previous year.

What was Bioceres' full fiscal year revenue growth for FY22?

For FY22, Bioceres achieved a record revenue of $319.3 million, a 62% increase from FY21.

What is the adjusted EBITDA for Bioceres in FY22?

Bioceres recorded an adjusted EBITDA of $61.9 million for FY22, reflecting a 24% increase.

Did Bioceres face any challenges in FY22?

Yes, the company faced increased pre-launch costs for HB4 products and a decline in gross margins due to product mixture.