Bioceres Crop Solutions Reports Fiscal Second Quarter 2025 Financial and Operational Results
Bioceres Crop Solutions (NASDAQ: BIOX) reported fiscal Q2 2025 results with total revenues of $106.7 million, down 24% from $140.2 million in Q2 2024. The company posted net income of $0.6 million and Adjusted EBITDA of $15.4 million.
The revenue decline was primarily attributed to challenging conditions in Argentina, including tight farm economics and elevated channel inventories, which affected crop protection and specialty fertilizers markets. Despite market contraction, the company maintained market share in key product segments.
The company announced strategic changes, including appointing Milen Marinov as Chief Commercial Officer and exiting breeding and seed production activities to focus on trait development. New partnerships include an alliance with GDM for soybean solutions and a redefined scope with Florimond Desprez for wheat technology.
Gross profit was $45.1 million, with margin improving to 42% from 37% year-over-year, driven by an improved product mix in core segments.
- Gross margin improved to 42% from 37% year-over-year
- Maintained market share in key product segments despite market contraction
- Strategic partnerships established with GDM and Florimond Desprez
- Positive net income of $0.6 million maintained despite challenging conditions
- Revenue declined 24% to $106.7 million from $140.2 million YoY
- Adjusted EBITDA decreased 36% to $15.4 million from $24.1 million
- Net income dropped 51% to $0.6 million from $1.2 million YoY
- First half FY25 showed net loss of $5.6 million, worsening from $1.4 million loss
Insights
The Q2 FY25 results reveal a complex transformation period for Bioceres, marked by both challenges and strategic repositioning. The 24% revenue decline to $106.7M and 36% drop in Adjusted EBITDA to $15.4M reflect immediate pressures, but the company's strategic response deserves closer examination.
The improvement in gross margins from
The strategic pivot to an asset-light model, particularly in the seed business, represents a significant shift in capital allocation strategy. The partnership with GDM for soybean solutions and the redefined relationship with Florimond Desprez indicate a move toward a more scalable, capital-efficient business model focused on intellectual property and trait development rather than capital-intensive breeding operations.
The appointment of Milen Marinov as CCO, leveraging his Syngenta and Valagro experience, signals a potential acceleration in global market access and partnership development. This is particularly relevant given the company's need to reduce dependence on the volatile Argentine market, which currently drives significant revenue exposure.
Looking ahead, three key factors will likely determine the success of this transition:
- The ability to monetize trait development through partnerships while maintaining margin structure
- Success in geographical diversification to reduce Argentine market dependency
- Execution of the asset-light transformation while maintaining technological leadership in crop solutions
The market contraction in Argentina, while cyclical, emphasizes the importance of this strategic pivot. The focus on capital efficiency and strategic partnerships could position Bioceres more favorably for future growth cycles, though near-term execution risks remain.
Total revenues in 2Q25 were
2Q25 net income was
Financial & Business Highlights
-
Revenues in 2Q25 totaled
$106.7 million $140.2 million Argentina — a decisive market for the quarter — significantly contracted the overall market for crop protection and specialty fertilizers. This led to a year-over-year reduction in sales of non-core CP products and micro-beaded fertilizers, roughly in line with the market decline. -
Operating profit was
$7.9 million $0.6 million $15.4 million Argentina . -
New strategy defined for seed business, exiting breeding and seed production activities to focus on trait development and key partnerships for market access:
- Alliance with GDM to use Verdeca’s patented platform to develop and market next generation varieties that combine superior agronomic performance with biotech traits.
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Trigall Genetics to focus on HB4 trait development in wheat and transfer breeding programs to Florimond Desprez. Rights to HB4 technology outside of
Latin America are now fully controlled by Bioceres.
- Milen Marinov appointed Chief Commercial Officer (CCO).
Management Review
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “Calendar year 2024 has been a reminder that growth, at least in the agriculture industry, is seldom linear. The conditions in
First, we are appointing Milen Marinov, who previously served as our EVP of Commercial for
Second, in the seed segment, we are sharpening our focus on what we do best: sourcing cutting-edge science and cost-effectively developing patented seed traits until commercial approval. We have made the strategic decision to exit breeding, seed production and seed sales and will instead partner with industry leaders who are better structured for these activities. As a first step in this new strategy, we are announcing a strategic agreement with GDM for the development of new soybean solutions, with exclusive rights outside the drought tolerance space. Additionally, we are a redefining the scope of our wheat joint venture with Florimond Desprez, exiting conventional breeding operations in
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: “While our fiscal first half results reflect the challenges posed by the Argentine market, particularly the decline in farmer economics driven by lower commodity prices and weak yield forecasts, we view this setback as temporary.
Argentine farmers faced significant pressure on their per-hectare income from summer crops due to these external factors, which was partially passed on to costs in the form of reduced use of fertilizers and crop protection products. This, in the context of a well-supplied ag-inputs market from aggressive purchasing in the prior season, resulted into price pressure and reduced spending on high-value technologies like ours. However, we are encouraged that we maintained our market share in key product families, despite the overall Argentine market contraction.
We remain optimistic about our long-term prospects, driven by our commitment to developing and commercially scaling up innovative technologies that create value for end-users. We are also cognizant that successfully navigating this period of market volatility requires a strong focus on capital allocation, driving cost efficiencies to safeguard profitability, and transitioning towards a more asset-light business model. The strategic repositioning of our seed business and tighter inventory management are initial steps in this direction.
In the near future we will continue to explore additional opportunities to enhance profitability and cash flows, ensuring we’re well-positioned to capitalize on the groundwork already made to support our global expansion as well as to benefit from the recovery of the Argentine market.”
Key Financial Metrics
Table 1: 2Q25 & 1H25 Key Financial Metrics |
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(In millions of |
2Q24 |
2Q25 |
%CHANGE |
1H24 |
1H25 |
%CHANGE |
Revenue by Segment |
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|
|
|
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Crop Protection |
71.2 |
55.2 |
( |
127.2 |
101.1 |
( |
Seed and Integrated Products |
32.2 |
23.3 |
( |
54.5 |
43.9 |
( |
Crop Nutrition |
36.8 |
28.2 |
( |
75.1 |
55.0 |
( |
Total Revenue |
140.2 |
106.7 |
( |
256.8 |
200.0 |
( |
Gross Profit |
51.5 |
45.1 |
( |
96.5 |
82.6 |
( |
Gross Margin |
|
|
557 bps |
|
|
375 bps |
|
2Q24 |
2Q25 |
%CHANGE |
1H24 |
1H25 |
%CHANGE |
GAAP net income or loss |
1.2 |
0.6 |
( |
(1.4) |
(5.6) |
( |
Adjusted EBITDA |
24.1 |
15.4 |
( |
40.4 |
23.8 |
( |
2Q25 Summary: Total revenues in 2Q25 were
Gross profit for the quarter was
Operating profit for the quarter was
For a full version of Bioceres’ second quarter fiscal year 2025 earnings release, click here.
Second 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:
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Date: Wednesday, February 12, 2025 |
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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 19, 2025, following the conference.
Toll Free Replay Number: 1-866-813-9403
Replay ID: 783074 |
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Time: 8:30 a.m. EST, 5:30 a.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: 525329 |
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Webcast: Click here |
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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 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
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Three-month period ended 12/31/2024 |
Three-month period ended 12/31/2023 |
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| Revenues from contracts with customers | 106.8 |
140.3 |
| Initial recognition and changes in the fair value of biological assets at the point of harvest | (0.1) |
(0.1) |
| Cost of sales | (61.6) |
(88.7) |
| Gross profit | 45.1 |
51.5 |
| % Gross profit |
|
|
| Operating expenses | (37.4) |
(34.8) |
| Share of profit of JV | 0.4 |
2.1 |
| Change in net realizable value of agricultural products | (0.8) |
(0.7) |
| Other income or expenses, net | 0.5 |
(1.2) |
| Operating profit | 7.9 |
16.8 |
| Financial result | (7.5) |
(7.3) |
| Profit/(loss) before income tax | 0.4 |
9.6 |
| Income tax | 0.2 |
(8.3) |
| Profit/(loss) for the period | 0.6 |
1.2 |
| Other comprehensive loss | (0.2) |
0.5 |
| Total comprehensive profit/(loss) | 0.4 |
1.7 |
|
|
|
| Profit/(loss) for the period attributable to: |
|
|
| Equity holders of the parent | 0.1 |
0.1 |
| Non-controlling interests | 0.5 |
1.1 |
0.6 |
1.2 |
|
| Total comprehensive profit/(loss) attributable to: |
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| Equity holders of the parent | 0.2 |
0.5 |
| Non-controlling interests | 0.2 |
1.2 |
0.4 |
1.7 |
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|
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| Weighted average number of shares |
|
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| Basic | 62.8 |
62.8 |
| Diluted | 63.2 |
63.9 |
Unaudited Consolidated Statement of Financial Position
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| ASSETS | 12/31/2024 |
06/30/2024 |
| CURRENT ASSETS |
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| Cash and cash equivalents | 29.2 |
44.5 |
| Other financial assets | 2.0 |
11.7 |
| Trade receivables | 227.7 |
207.3 |
| Other receivables | 17.2 |
18.3 |
| Recoverable income taxes | 1.5 |
0.7 |
| Inventories | 101.8 |
125.9 |
| Biological assets | 4.4 |
0.3 |
| Total current assets | 383.7 |
408.7 |
| NON-CURRENT ASSETS |
|
|
| Other financial assets | 0.8 |
0.6 |
| Other receivables | 18.2 |
18.0 |
| Recoverable income taxes | 0.0 |
0.0 |
| Deferred tax assets | 12.1 |
9.7 |
| Investments in joint ventures and associates | 40.0 |
39.8 |
| Investment properties | 0.6 |
0.6 |
| Property, plant and equipment | 74.9 |
74.6 |
| Intangible assets | 176.3 |
176.9 |
| Goodwill | 112.2 |
112.2 |
| Right of use asset | 16.3 |
11.6 |
| Total non-current assets | 451.4 |
443.9 |
| Total assets | 835.2 |
852.5 |
| LIABILITIES |
|
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| CURRENT LIABILITIES |
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| Trade and other payables | 144.0 |
168.7 |
| Borrowings | 119.2 |
136.7 |
| Employee benefits and social security | 8.2 |
7.3 |
| Deferred revenue and advances from customers | 2.9 |
3.9 |
| Income tax payable | 5.9 |
4.8 |
| Consideration for acquisition | 3.2 |
4.6 |
| Lease liabilities | 5.3 |
3.1 |
| Total current liabilities | 288.8 |
329.3 |
| NON-CURRENT LIABILITIES |
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| Borrowings | 66.9 |
42.1 |
| Deferred revenue and advances from customers | 1.9 |
1.9 |
| Joint ventures and associates | 0.7 |
0.3 |
| Deferred tax liabilities | 33.2 |
35.0 |
| Provisions | 1.1 |
1.3 |
| Consideration for acquisition | 2.2 |
2.3 |
| Secured notes | 83.4 |
80.8 |
| Lease liabilities | 10.8 |
8.2 |
| Total non-current liabilities | 200.4 |
171.9 |
| Total liabilities | 489.2 |
501.2 |
| EQUITY |
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| Equity attributable to owners of the parent | 309.4 |
315.0 |
| Non-controlling interests | 36.6 |
36.3 |
| Total equity | 346.0 |
351.4 |
| Total equity and liabilities | 835.2 |
852.5 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250211746936/en/
Bioceres Crop Solutions
Paula Savanti
Head of Investor Relations
investorrelations@biocerescrops.com
Source: Bioceres Crop Solutions Corp.
FAQ
What caused BIOX's revenue decline in Q2 2025?
How much did BIOX's gross margin improve in Q2 2025?
What strategic changes did BIOX announce in Q2 2025?
What were BIOX's Q2 2025 earnings compared to Q2 2024?
How did BIOX's Adjusted EBITDA perform in Q2 2025?
