2Q24 revenues at $140.2 million, 49% higher YoY
GAAP net income at $1.2 million, and adjusted EBITDA1 at $24.1 million
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 second quarter ended December 31, 2023. 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 2Q24 were $140.2 million, a 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 in Argentina.
- Operating profit for the period was $16.8 million with GAAP net income at $1.2 million, compared with $2.2 million and a loss of $8.4 million, respectively, for the year-ago quarter.
- Adjusted EBITDA1 for the quarter was $24.1 million, more than double last year´s metric and reflecting top line growth and operational leverage.
- 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 and Malaysia, and for wheat in Thailand
- 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 |
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(In millions of U.S. dollars) |
2Q23 |
2Q24 |
% Change |
1H23 |
1H24 |
% Change |
Revenue by Segment |
|
|
|
|
|
|
Crop Protection |
53.3 |
71.2 |
34% |
116.3 |
127.2 |
9% |
Seed and Integrated Products |
16.3 |
32.2 |
97% |
30.2 |
54.5 |
81% |
Crop Nutrition |
24.7 |
36.8 |
49% |
75.0 |
75.1 |
0% |
Total Revenue |
94.4 |
140.2 |
49% |
221.5 |
256.8 |
16% |
Gross Profit |
35.3 |
51.5 |
46% |
86.7 |
96.5 |
11% |
Gross Margin |
37.4% |
36.7% |
(62 bps) |
39.1% |
37.6% |
(157 bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q23 |
2Q24 |
% Change |
1H23 |
1H24 |
% Change |
|
GAAP net income or loss |
(8.4) |
1.2 |
115% |
(4.5) |
(1.4) |
68% |
Adjusted EBITDA1 |
10.3 |
24.1 |
134% |
34.9 |
40.4 |
16% |
2Q24 Summary: Total revenues were $140.2 million in 2Q24, a 49% year-over-year increase. Second fiscal quarter performance was largely shaped by a strong summer crop season in the Southern Hemisphere, with a normalization of weather conditions in Argentina, and overall higher demand for Bioceres’ technologies. All three business segments delivered strong growth compared to the year-ago quarter – which had been marked by a historic drought in Argentina – and contributed almost evenly to the $45.8 million increase in revenues. Top line growth in Crop Protection and Crop Nutrition was achieved with margin expansion as sales mix favored higher margin technologies. The increase in Seed and Integrated Products revenues was driven by higher HB4 seed and downstream sales, with a less favorable product mix compared to the year-ago period. Overall, the 49% increase in revenues was achieved with a steady gross margin of 37%. 2Q24 results build on 1Q24´s strong performance, and confirm double-digit growth rates for revenues, net income and adjusted EBITDA1 for the first half of the fiscal year.
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 |
37% |
37% |
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/
Contacts
Bioceres Crop Solutions
Paula Savanti
Head of Investor Relations
investorrelations@biocerescrops.com
