Bioceres Crop Solutions Reports Fiscal Second Quarter 2024 Financial and Operational Results
- Total revenues increased by 49% year-over-year, reaching $140.2 million.
- GAAP net income was $1.2 million, compared to a loss of $8.4 million in the year-ago quarter.
- Adjusted EBITDA was $24.1 million, more than double the previous year's figure.
- The company experienced strong growth in all product segments, with Crop Protection, Seed and Integrated Products, and Crop Nutrition all contributing to the revenue increase.
- The HB4 Wheat harvest was completed, meeting FY24 guidance, and a new US Patent was awarded for HB4 Soy, extending technology protection until 2042.
- None.
Insights
Revenue Growth Analysis: The reported 49% year-over-year revenue increase for Bioceres is a significant indicator of the company's market performance and expansion. This robust top line growth, especially in the context of a post-drought recovery in Argentina, suggests effective management of supply chain and distribution channels to capitalize on the resumed product demand. The diversified growth across all product segments reinforces the company's resilience and adaptability to market conditions. Investors might view these results as a positive signal of the company's ability to navigate environmental challenges and leverage opportunities for growth.
Profitability and Operational Leverage: The improvement in operating profit from a loss in the previous year to a GAAP net income of $1.2 million is noteworthy. The more than doubling of adjusted EBITDA reflects strong operational leverage and cost management. This could indicate a sustainable growth trajectory and operational efficiency that may appeal to shareholders looking for long-term value creation. The ability to maintain steady gross margins despite the significant increase in revenues is also a testament to the company's pricing power and cost control measures.
Market Dynamics and Competitive Positioning: Bioceres' performance must be contextualized within the broader agricultural biotechnology market. The company's success in increasing revenue and expanding margins can be partly attributed to the growing global demand for climate-resilient crops. Bioceres' HB4 Wheat and Soy technologies, which are designed to withstand climate stressors, position the company advantageously in a market increasingly concerned with food security and sustainable agriculture. The new US patent for HB4 Soy, extending protection until 2042, provides a competitive moat and could potentially lead to increased market share and long-term revenue streams.
Technological Impact and Regulatory Landscape: The advancements in HB4 Wheat and Soy technologies are critical to understanding Bioceres' strategic direction. The validation of HB4 Wheat's competitiveness and the rapid expansion of the soybean program in Brazil highlight the company's R&D capabilities and the potential for market disruption. Additionally, new regulatory approvals in various countries not only open up new markets but also signify a growing acceptance of genetically modified crops. This could lead to a broader adoption of Bioceres' products, impacting future revenue streams and positioning the company as a leader in the agricultural biotech space.
2Q24 revenues at
GAAP net income at
FINANCIAL & BUSINESS HIGHLIGHTS
-
Total revenues in 2Q24 were
$140.2 million 49% increase compared to the same quarter last year. Top line growth during the quarter was mainly driven by a strong summer crop season in the Southern Hemisphere, with resumed product demand post-drought inArgentina . -
Operating profit for the period was
$16.8 million $1.2 million $2.2 million $8.4 million -
Adjusted EBITDA1 for the quarter was
$24.1 million - HB4 Wheat harvest completed, with resulting inventories in line to meet FY24 guidance.
- New US Patent awarded for HB4 Soy, extending technology protection until 2042.
| ________________________________ | |
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. |
MANAGEMENT REVIEW
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “Despite the headwinds the industry experienced in the quarter, we are pleased to announce record quarterly results. While we are not immune to the broader destocking process in several geographies, our portfolio of innovative products, secular growth drivers, and strong execution by our commercial teams allowed us to continue to outperform the industry and deliver our highest quarterly revenues yet.
We also continue to make progress on HB4, namely:
-
Results from the wheat harvest in
Argentina validate the competitiveness of our newer varieties against top commercial varieties -
Our soybean program in
Brazil is advancing quickly with a 7x increase in hectares from last year -
We obtained new regulatory approvals for soybeans in
Australia ,New Zealand ,Thailand andMalaysia , and for wheat inThailand - We were granted an additional patent by USPTO that should protect the HB4 Soy technology through at least 2042
Finally, our current wheat inventories are sufficient to meet our FY24 guidance for this business, allowing us to focus on commercial execution during the upcoming winter wheat planting season in South America.”
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted “Our quarterly performance continued to build on the momentum we highlighted in the first quarter. Revenue growth was broad-based, with all product families delivering solid results, and margin recovery across many categories that had been affected by record droughts last year in key geographies. Importantly, cost discipline allowed us to deliver strong operating leverage in the quarter, leading to record results. As we look forward to the second half of our fiscal year, we remain focused on delivering growth, by investing in our innovative portfolio, and advancing the global penetration of our novel technologies.”
KEY FINANCIAL METRICS |
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Table 1: 2Q24 & 1H24 Key Financial Metrics |
||||||
(In millions of |
2Q23 |
2Q24 |
% Change |
1H23 |
1H24 |
% Change |
Revenue by Segment |
|
|
|
|
|
|
Crop Protection |
53.3 |
71.2 |
|
116.3 |
127.2 |
|
Seed and Integrated Products |
16.3 |
32.2 |
|
30.2 |
54.5 |
|
Crop Nutrition |
24.7 |
36.8 |
|
75.0 |
75.1 |
|
Total Revenue |
94.4 |
140.2 |
49% |
221.5 |
256.8 |
|
Gross Profit |
35.3 |
51.5 |
|
86.7 |
96.5 |
|
Gross Margin |
|
|
(62 bps) |
|
|
(157 bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q23 |
2Q24 |
% Change |
1H23 |
1H24 |
% Change |
|
GAAP net income or loss |
(8.4) |
1.2 |
|
(4.5) |
(1.4) |
|
Adjusted EBITDA1 |
10.3 |
24.1 |
|
34.9 |
40.4 |
|
2Q24 Summary: Total revenues were
For a full version of Bioceres second quarter 2024 earnings release, click here.
SECOND 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: |
Thursday, February 8, 2024 |
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Time: |
4:30 p.m. EST, 1:30 p.m. PST |
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US Toll Free dial-in number: |
1-833-470-1428 |
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International dial-in numbers: |
Click here |
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Conference ID: |
507024 |
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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 February 15, 2024, following the conference.
Toll Free Replay Number: |
1-866-813-9403 |
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International Replay Number: |
+44 204 525 0658 |
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Replay ID: |
203673 |
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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
|
||
|
Three-month period ended 12/31/2023 |
Three-month period ended 12/31/2022 |
Revenues from contracts with customers |
140.3 |
94.6 |
Initial recognition and changes in the fair value of biological assets at the point of harvest |
(0.1) |
(0.1) |
Cost of sales |
(88.7) |
(59.1) |
Gross profit |
51.5 |
35.3 |
% Gross profit |
|
|
Operating expenses |
(34.8) |
(31.9) |
Share of profit of JV |
2.1 |
0.0 |
Change in net realizable value of agricultural products |
(0.7) |
(1.5) |
Other income or expenses, net |
(1.2) |
0.3 |
Operating profit |
16.8 |
2.2 |
Financial result |
(7.3) |
(10.0) |
Profit/(loss) before income tax |
9.6 |
(7.7) |
Income tax |
(8.3) |
(0.7) |
Profit/(loss) for the period |
1.2 |
(8.4) |
Other comprehensive profit |
0.5 |
0.6 |
Total comprehensive profit/(loss) |
1.7 |
(7.8) |
|
|
|
Profit/(loss) for the period attributable to: |
|
|
Equity holders of the parent |
0.1 |
(8.2) |
Non-controlling interests |
1.1 |
(0.3) |
|
1.2 |
(8.4) |
Total comprehensive profit/(loss) attributable to: |
|
|
Equity holders of the parent |
0.5 |
(7.8) |
Non-controlling interests |
1.2 |
(0.1) |
|
1.7 |
(7.8) |
Weighted average number of shares (in million) |
|
|
Basic |
62.8 |
61.7 |
Diluted |
63.9 |
61.7 |
For the three-month period ended December 31, 2022, diluted weighted average number of shares was equal to basic as the effect of potential ordinary shares would be antidilutive. |
||
Unaudited Consolidated Statement of Financial Position
|
||
ASSETS |
12/31/2023 |
06/30/2023 |
CURRENT ASSETS |
|
|
Cash and cash equivalents |
24.4 |
48.1 |
Other financial assets |
17.0 |
12.1 |
Trade receivables |
199.7 |
158.0 |
Other receivables |
24.9 |
28.8 |
Income and minimum presumed income taxes recoverable |
1.1 |
9.4 |
Inventories |
123.7 |
140.4 |
Biological assets |
0.9 |
0.1 |
Total current assets |
391.9 |
397.1 |
NON-CURRENT ASSETS |
|
|
Other financial assets |
0.4 |
0.4 |
Other receivables |
1.6 |
2.5 |
Income and minimum presumed income taxes recoverable |
0.0 |
0.0 |
Deferred tax assets |
7.1 |
7.3 |
Investments in joint ventures and associates |
42.4 |
39.3 |
Investment properties |
3.8 |
3.6 |
Property, plant and equipment |
71.4 |
67.9 |
Intangible assets |
172.7 |
173.8 |
Goodwill |
112.2 |
112.2 |
Right-of-use leased asset |
13.7 |
13.9 |
Total non-current assets |
425.4 |
420.9 |
Total assets |
817.2 |
818.1 |
LIABILITIES |
|
|
CURRENT LIABILITIES |
|
|
Trade and other payables |
164.0 |
150.8 |
Borrowings |
113.5 |
107.6 |
Employee benefits and social security |
8.2 |
9.6 |
Deferred revenue and advances from customers |
23.5 |
24.9 |
Income tax payable |
0.9 |
0.5 |
Consideration for acquisition |
4.1 |
1.4 |
Lease liabilities |
4.0 |
3.9 |
Total current liabilities |
318.2 |
298.7 |
NON-CURRENT LIABILITIES |
|
|
Borrowings |
31.5 |
60.7 |
Deferred revenue and advances from customers |
0.7 |
2.1 |
Investments in joint ventures and associates |
0.1 |
0.6 |
Deferred tax liabilities |
40.7 |
35.8 |
Provisions |
0.5 |
0.9 |
Consideration for acquisitions |
2.6 |
3.6 |
Secured notes |
78.0 |
75.2 |
Lease liability |
9.6 |
10.0 |
Total non-current liabilities |
163.7 |
188.9 |
Total liabilities |
482.0 |
487.6 |
EQUITY |
|
|
Equity attributable to owners of the parent |
300.5 |
298.6 |
Non-controlling interests |
34.7 |
31.9 |
Total equity |
335.3 |
330.5 |
Total equity and liabilities |
817.2 |
818.1 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208046705/en/
Bioceres Crop Solutions
Paula Savanti
Head of Investor Relations
investorrelations@biocerescrops.com
Source: Bioceres Crop Solutions Corp.
FAQ
What were Bioceres Crop Solutions Corp.'s 2Q24 revenues?
What was the GAAP net income for Bioceres Crop Solutions Corp. in 2Q24?
What was the adjusted EBITDA for Bioceres Crop Solutions Corp. in 2Q24?
What was the percentage change in revenue for Bioceres Crop Solutions Corp. from 2Q23 to 2Q24?
What new patent was awarded to Bioceres Crop Solutions Corp. in 2Q24?
