Bioceres Crop Solutions Reports Fiscal Third Quarter 2024 Financial and Operational Results

Rhea-AI Summary

Bioceres Crop Solutions (NASDAQ: BIOX) reported its fiscal third quarter 2024 results, with total revenues of $84.0 million, down from $93.6 million in 3Q23.

The decrease was largely due to a $17 million drop in the Syngenta agreement compensatory payment.

GAAP net income stood at $9.8 million, while adjusted EBITDA was $21.1 million, both significantly lower than the previous year's figures.

Key developments include regulatory approval in Brazil for bio-insecticidal solutions and positive performance of HB4 Soy varieties, yielding a 7% improvement.

Positive

• Total revenues of $84.0 million in 3Q24.
• Operational performance partially offset revenue decline.
• Regulatory clearance in Brazil for bio-insecticidal solutions.
• HB4 Soy varieties showed a 7% yield improvement in Brazil.
• CEO expects delayed sales to realize in the fourth quarter.

Negative

• Revenues decreased from $93.6 million in 3Q23 to $84.0 million in 3Q24.
• GAAP net income fell from $27.5 million in 3Q23 to $9.8 million.
• Adjusted EBITDA dropped from $35.8 million in 3Q23 to $21.1 million.
• Gross profit declined from $57.5 million to $42.6 million YoY.
• Gross margin decreased from 61.4% to 50.8%.

Insights

Financial Analyst

Bioceres Crop Solutions' financial performance for 3Q24 reflects a mixed scenario. Total revenues were $84.0 million, a decrease from $93.6 million in the same period last year. The primary driver of this decline is a reduction in the compensatory payment from Syngenta, which dropped from $32.9 million to $15.7 million. Excluding these payments, the actual business growth is noteworthy, with revenues increasing from $60.7 million to $68.3 million, led by the Crop Protection and Seed and Integrated Products segments.

However, despite this underlying growth, the overall gross profit fell significantly from $57.5 million to $42.6 million. The gross margin also contracted by 1,062 basis points, signaling potential issues in cost management or product mix adjustments. The GAAP net income decreased sharply to $9.8 million from $27.5 million and adjusted EBITDA dropped to $21.1 million from $35.8 million.

Short-term investors may find the reduced net income and EBITDA concerning. However, if the compensatory payments are normalized, the core business shows resilience and growth potential. The performance of the HB4 Soy varieties in Brazil could be a positive development for future revenue streams. Long-term investors might view these as temporary setbacks amid a solid underlying business performance.

Agricultural Market Analyst

Bioceres Crop Solutions is making strides in the agricultural biotechnology sector with notable advancements, particularly in Brazil. Regulatory clearance for bio-insecticidal and bio-nematicidal solutions expands their product portfolio, positioning them well in high-value markets. Moreover, the HB4 Soy varieties demonstrated an average yield improvement of 7% against non-HB4 varieties, indicating potential for increased adoption among farmers.

For investors, this solidifies Bioceres' role as a key player in the development of resilient crop solutions. The regulatory approval for their Burkholderia bio-control solutions also opens up immediate and future market opportunities. This advancement is critical considering the growing demand for sustainable agricultural practices globally.

In the short-term, investors might be cautious due to the revenue drop linked to the Syngenta payment. However, the long-term outlook appears promising with the expansion into Brazil and the performance of new products. It positions Bioceres well to capture market share in the evolving agricultural ecosystem.

Total revenues in 3Q24 were $84.0 million

3Q24 GAAP net income was $9.8 million and adjusted EBITDA¹ was $21.1 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 third quarter ended March 31, 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 3Q24 were $84.0 million compared to $93.6 million in the same quarter last year. Operational growth in the business was offset by a $15.7 million accrual of the compensatory payment from Syngenta, in comparison to a $32.9 million accrual in 3Q23.
• Operating profit was $13.2 million with GAAP net income at $9.8 million.
• Adjusted EBITDA¹ for the quarter was $21.1 million, compared to $35.8 million in the year ago quarter. The decrease was driven by the lower compensatory payment accrual, partially softened by improved operational performance.
• Regulatory clearance in Brazil unlocks bio-insecticidal/bio-nematicidal solutions, expanding Bioceres’ biologicals portfolio in this geography.
• HB4 Soy varieties showed satisfactory performance at farmer level in Brazil, with an average yield improvement of 7% against non-HB4 varieties.

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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: “We are generally satisfied with our third quarter results, despite some delayed sales in our bio-nutrition segment in Argentina and Brazil, which we now expect to realize in our fourth and final fiscal quarter. As anticipated, our third quarter growth is disfavored when compared to the year before, given the disproportional weight of the Syngenta distribution agreement, whose contribution is now more evenly distributed throughout the year. From a qualitative point of view, we continue to see positive developments in Brazil, which we expect to translate into quantitative milestones in one or two seasons. One of these developments was the first regulatory approval for our inactivated Burkholderia bio-control solutions, which we announced last week. This approval creates an immediate opportunity in high value bio-insecticidal markets as well as in our Generation HB4 channel, and ― in one or two seasons ― in broader row-crop markets once our lowest rate formulations are included in the portfolio. Another positive development in Brazil comes from the performance of our first two HB4 soy varieties, where we received favorable feedback from key farmers and expect to increase the current pace of growth. Looking ahead and despite the industry-wide headwinds persisting from last year, we are confident on the attractiveness of our value propositions and the capabilities of our teams to achieve the double-digit growth we are known to deliver.”

Mr. Enrique Lopez Lecube, Bioceres' Chief Financial Officer, noted: “This year’s third fiscal quarter was marked by a difficult comparison against last year´s third quarter, in which the compensatory payment from the Syngenta agreement drove a substantial portion of sales and explained our profits almost in full. In a scenario of slower-than-expected market dynamics for fertilizers and inoculants in South America and persisting suboptimal conditions for crop protection in the US and Brazil, we were still able to partially offset the $17 million year-over-year difference from the Syngenta agreement by growing the rest of our business’ top line by roughly $8 million. As we head into the last quarter of our fiscal year, we are confident that with a normalized crop nutrition market we will be in good shape to deliver our annual goals of achieving double-digit growth in EBITDA.”

KEY FINANCIAL METRICS

Table 1: 3Q24 Key Financial Metrics

(In millions of U.S. dollars)	3Q23	3Q24	% Change
Revenue by Segment
Crop Protection	44.3	46.8	6%
Seed and Integrated Products	5.9	8.6	46%
Crop Nutrition	43.4	28.6	(34%)
Total Revenue	93.6	84.0	(10%)
Gross Profit	57.5	42.6	(26%)
Gross Margin	61.4%	50.8%	(1,062 bps)
	3Q23	3Q24	% Change
GAAP net income or loss	27.5	9.8	(64%)
Adjusted EBITDA1	35.8	21.1	(41%)

3Q24 Summary: Total revenues were $84.0 million in 3Q24, compared to $93.6 million for the same quarter last year. The decline is fully explained by a ~$17 million decrease in the accrual of the Syngenta compensatory payment, which was $15.7 million this year, compared to $32.9 million in the year-ago quarter. Excluding these accruals, the business generated $68.3 million in revenues, compared to $60.7 million last year, with modest growth in Crop Protection and Crop Nutrition, the two main business segments contributing material sales during the quarter.

Gross profit for the quarter was $42.6 million, a decline compared to the $57.5 million in 3Q23. As with revenues, the reduction was entirely due to the lower accrual of the compensatory payment this quarter compared to last year. Excluding this, gross profit increased ― although proportionally less than revenues due to product mix ― and overall gross margin remained practically flat.

GAAP net income and adjusted EBITDA¹ for the quarter were $9.8 million and $21.1 million, respectively, compared to $27.5 million and $35.8 million, respectively. The decrease in the compensatory payment translates directly into the bottom line, partially offset by an improved underlying business performance.

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

THIRD 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:		Tuesday, May 14, 2024
Time:		8:30 a.m. ET, 5:30 a.m. PT
US Toll Free dial-in number:		1-833-470-1428
International dial-in numbers:		Click here
Conference ID:		391060
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 June 6, 2024, following the conference.

Toll Free Replay Number:		1-866-813-9403
International Replay Number:		+44 204 525 0658
Replay ID:		206193

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 03/31/2024	Three-month period ended 03/31/2023
Revenues from contracts with customers	84.0	93.0
Initial recognition and changes in the fair value of biological assets at the point of harvest	(0.1)	0.6
Cost of sales	(41.3)	(36.1)
Gross profit	42.6	57.5
% Gross profit	51%	61%
Operating expenses	(30.7)	(27.9)
Share of profit of JV	0.9	0.4
Change in net realizable value of agricultural products	0.2	(1.1)
Other income or expenses, net	0.2	1.0
Operating profit	13.2	29.9
Financial result	(4.4)	(7.6)
Profit/(loss) before income tax	8.8	22.3
Income tax	1.0	5.2
Profit/(loss) for the period	9.8	27.5
Other comprehensive profit	0.2	(0.1)
Total comprehensive profit/(loss)	10.0	27.4
Profit/(loss) for the period attributable to:
Equity holders of the parent	9.3	28.1
Non-controlling interests	0.5	(0.7)
	9.8	27.5
Total comprehensive profit/(loss) attributable to:
Equity holders of the parent	9.5	28.2
Non-controlling interests	0.5	(0.8)
	10.0	27.4
Weighted average number of shares
Basic	62.8	62.0
Diluted	66.8	63.1

Unaudited Consolidated Statement of Financial Position (Figures in million of U.S. dollars)
ASSETS	03/31/2024	06/30/2023
CURRENT ASSETS
Cash and cash equivalents	16.4	48.1
Other financial assets	16.5	12.1
Trade receivables	212.1	158.0
Other receivables	30.7	28.8
Income and minimum presumed recoverable income taxes	1.4	9.4
Inventories	129.2	140.4
Biological assets	1.9	0.1
Total current assets	408.1	397.1
NON-CURRENT ASSETS
Other financial assets	0.4	0.4
Other receivables	2.1	2.5
Income and minimum presumed recoverable income taxes	0.0	0.0
Deferred tax assets	9.7	7.3
Investments in joint ventures and associates	42.3	39.3
Investment properties	0.6	3.6
Property, plant and equipment	74.6	67.9
Intangible assets	174.5	173.8
Goodwill	112.2	112.2
Right-of-use leased asset	12.7	13.9
Total non-current assets	428.9	420.9
Total assets	837.0	818.1
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	167.5	150.8
Borrowings	144.2	107.6
Employee benefits and social security	7.8	9.6
Deferred revenue and advances from customers	5.5	24.9
Income tax payable	4.0	0.5
Consideration for acquisition	2.9	1.4
Lease liabilities	3.5	3.9
Total current liabilities	335.4	298.7
NON-CURRENT LIABILITIES
Borrowings	18.9	60.7
Deferred revenue and advances from customers	2.8	2.1
Joint ventures and associates	0.0	0.6
Deferred tax liabilities	39.4	35.8
Provisions	0.8	0.9
Consideration for acquisition	2.7	3.6
Secured notes	79.7	75.2
Lease liabilities	24.4	10.0
Total non-current liabilities	153.0	188.9
Total liabilities	488.5	487.6
EQUITY
Equity attributable to owners of the parent	313.4	298.6
Non-controlling interests	35.2	31.9
Total equity	348.5	330.5
Total equity and liabilities	837.0	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' revenues for 3Q24?

Bioceres reported total revenues of $84.0 million for the fiscal third quarter of 2024.

How did Bioceres' GAAP net income for 3Q24 compare to 3Q23?

GAAP net income was $9.8 million in 3Q24, down from $27.5 million in 3Q23.

What is the adjusted EBITDA for Bioceres (BIOX) in 3Q24?

Bioceres reported an adjusted EBITDA of $21.1 million for 3Q24.

Why did Bioceres' revenue decline in 3Q24?

The revenue decline was primarily due to a $17 million drop in the Syngenta compensatory payment.

What was the gross profit for Bioceres (BIOX) in 3Q24?

Gross profit for 3Q24 was $42.6 million, down from $57.5 million in 3Q23.

What was the yield improvement for HB4 Soy varieties in Brazil?

HB4 Soy varieties showed an average yield improvement of 7% against non-HB4 varieties in Brazil.