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 first quarter ended September 30, 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 1Q25 were $93.3 million, compared to $116.6 million in the same quarter last year. Results were driven by performance in Argentina, where the summer crop season began at an unusually slow pace due to delayed rains and just-in-time purchasing behavior. North America and Brazil gained momentum, despite lingering market headwinds, and partially offset the soft performance in Argentina.
- Operating profit1 was $3.4 million and net loss1 was $5.3 million. Adjusted EBITDA1 for the quarter was $8.5 million.
- RinoTec technology received EPA’s Green Chemistry Challenge Award in the Design of Safer and Degradable Chemicals category.
- Regulatory approvals for HB4 soybean production were obtained in Uruguay and Bolivia, marking full clearance for the technology across all soybean producing countries in the Americas.
Management Review
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “As farmers understand better than anyone else, agriculture is inherently dependent on weather. While, as a technology company we are dedicated to helping farmers navigate this reality, our business cycle also faces weather-related impacts. To mitigate these effects, we rely on portfolio diversification across product types, usage timing, and multiple crops. However, much like in farming itself, geographic diversification remains the most effective hedge against weather events.
This quarter, we saw the benefits of this strategy, with positive contributions from Brazil, the United Sates, and our Syngenta collaboration outside of Argentina. Together, these almost doubled their share of total sales and, even more importantly, expanded their contribution to total gross profit by 2.5 times. This positive international performance, coupled with fully normalized rainfall in Argentina, allows us to remain optimistic for the rest of the fiscal year.
That said, we remain focused on cost management and a disciplined approach to capital allocation, aiming to both adapt to and increase our flexibility amid current market conditions. At the same time, our commitment to advancing our unique portfolio of technologies is unaltered, encouraged by the recognition and validation our technologies continue to receive from regulators worldwide, as highlighted in this quarter’s report.”
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: "Results for the quarter were marked by a slower-than-usual start to the high season and tough market conditions in Argentina, partially offset by strong performance in North America and Brazil. This highlights the importance of our evolving strategy of geographic and portfolio diversification. Moving forward, capital allocation will continue to prioritize products and technologies with lower-risk and near-term payback periods. Coupled with a more disciplined approach to working capital management, this aims to enhance cash generation for the fiscal year, while preserving the long-term intrinsic value of our unique portfolio of current and future technologies.”
Key Financial Metrics
Table 1: 1Q25 Key Financial Metrics |
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(In millions of U.S. dollars) |
1Q24 |
1Q25 |
%CHANGE |
Revenue by Segment |
|
|
|
Crop Protection |
55.9 |
47.7 |
(15%) |
Seed and Integrated Products |
22.3 |
19.8 |
(11%) |
Crop Nutrition |
38.3 |
25.7 |
(33%) |
Total Revenue |
116.6 |
93.3 |
(20%) |
Gross Profit |
45.0 |
37.5 |
(17%) |
Gross Margin |
38.6% |
40.2% |
161 bps |
|
1Q24 |
1Q25 |
%CHANGE |
Net income or loss 1 |
(2.7) |
(5.3) |
(96%) |
Adjusted EBITDA 1 |
16.3 |
8.5 |
(48%) |
1Q25 Summary: Revenues for the quarter totaled $93.3 million, compared to $116.6 million in the same period last year. The beginning of summer crop planting in Latin America was marked by unfavorable market conditions in Argentina, where a slow start to the season, driven primarily by weather, affected sales of crop protection products and primarily drove results for the country. Sales of micro-beaded fertilizers in Argentina remained under pressure due to an unusual shift of corn acreage into soybeans. Importantly, key markets such as North America and Brazil posted growth, despite lingering headwinds. Gross profit for the quarter was $37.5 million, reflecting a 17% decline, consistent with the decline in sales. However, overall gross margin improved driven by a strategic focus on products with higher margins and more favorable cash conversion cycles, in line with the Company’s strengthened emphasis on cash generation and working capital management. This shift led to a reduced focus on third-party products sales, which faced heightened competition and price pressure in Argentina’s crop protection industry. Operating profit1 for the quarter was $3.4 million, with a net loss1 of $5.3 million. Adjusted EBITDA1 for the quarter was $8.5 million.
For a full version of Bioceres’ first quarter fiscal year 2025 earnings release, click here.
Fiscal First 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:
Date: Tuesday, November 12, 2024 |
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 November 19, 2024, following the conference.
Toll Free Replay Number: 1-866-813-9403
International Replay Number: Click here
Replay ID: 649318 |
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: 305729 |
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Webcast: Click here |
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.
1 Please refer to “Use of non-IFRS financial information” for information regarding net loss, operating profit and our use of Adjusted EBITDA and its reconciliation from the most comparable financial measure.
Unaudited Consolidated Statement of Comprehensive Income (Figures in million of U.S. dollars) |
|||||
|
Three-month period
|
Three-month period
|
|||
Revenues from contracts with customers |
92.6 |
116.2 |
|||
Initial recognition and changes in the fair value of biological assets at the point of harvest |
0.7 |
0.4 |
|||
Cost of sales |
(55.8) |
(71.6) |
|||
Gross profit |
37.5 |
45.0 |
|||
% Gross profit |
40% |
39% |
|||
Operating expenses |
(34.6) |
(38.5) |
|||
Share of profit of JV |
(0.6) |
1.5 |
|||
Change in net realizable value of agricultural products |
0.6 |
(1.4) |
|||
Other income or expenses, net |
0.5 |
(1.2) |
|||
Operating profit |
3.4 |
5.3 |
|||
Financial result |
(9.8) |
(7.5) |
|||
Profit/(loss) before income tax |
(6.4) |
(2.2) |
|||
Income tax |
1.2 |
(0.4) |
|||
Profit/(loss) for the period |
(5.3) |
(2.7) |
|||
Other comprehensive loss |
0.0 |
(0.9) |
|||
Total comprehensive profit/(loss) |
(5.3) |
(3.6) |
|||
|
|
|
|||
Profit/(loss) for the period attributable to: |
|
|
|||
Equity holders of the parent |
(5.4) |
(4.6) |
|||
Non-controlling interests |
0.2 |
1.9 |
|||
|
(5.3) |
(2.7) |
|||
Total comprehensive profit/(loss) attributable to: |
|
|
|||
Equity holders of the parent |
(5.5) |
(5.4) |
|||
Non-controlling interests |
0.2 |
1.8 |
|||
|
(5.3) |
(3.6) |
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Weighted average number of shares |
|
|
Basic |
62.9 |
62.8 |
Diluted |
62.9 |
62.8 |
Unaudited Consolidated Statement of Financial Position (Figures in million of U.S. dollars) |
||
ASSETS |
09/30/2024 |
06/30/2024 |
CURRENT ASSETS |
|
|
Cash and cash equivalents |
32.3 |
44.5 |
Other financial assets |
5.9 |
11.7 |
Trade receivables |
195.4 |
207.3 |
Other receivables |
22.9 |
18.3 |
Recoverable income taxes |
1.0 |
0.7 |
Inventories |
117.7 |
125.9 |
Biological assets |
1.6 |
0.3 |
Total current assets |
376.7 |
408.7 |
NON-CURRENT ASSETS |
|
|
Other financial assets |
0.6 |
0.6 |
Other receivables |
18.5 |
18.0 |
Recoverable income taxes |
0.0 |
0.0 |
Deferred tax assets |
10.7 |
9.7 |
Investments in joint ventures and associates |
40.0 |
39.8 |
Investment properties |
0.6 |
0.6 |
Property, plant and equipment |
74.6 |
74.6 |
Intangible assets |
176.5 |
174.8 |
Goodwill |
112.2 |
112.3 |
Right of use asset |
17.3 |
11.6 |
Total non-current assets |
450.8 |
442.0 |
Total assets |
827.5 |
850.6 |
LIABILITIES |
|
|
CURRENT LIABILITIES |
|
|
Trade and other payables |
149.9 |
168.7 |
Borrowings |
121.5 |
136.7 |
Employee benefits and social security |
8.3 |
7.3 |
Deferred revenue and advances from customers |
5.7 |
3.9 |
Income tax payable |
3.8 |
4.8 |
Consideration for acquisition |
5.6 |
4.8 |
Lease liabilities |
1.3 |
3.1 |
Total current liabilities |
296.2 |
329.5 |
NON-CURRENT LIABILITIES |
|
|
Borrowings |
46.1 |
42.1 |
Deferred revenue and advances from customers |
1.9 |
1.9 |
Joint ventures and associates |
1.1 |
0.3 |
Deferred tax liabilities |
34.7 |
34.5 |
Provisions |
1.3 |
1.3 |
Consideration for acquisition |
2.2 |
2.5 |
Secured notes |
82.6 |
80.8 |
Lease liabilities |
15.5 |
8.2 |
Total non-current liabilities |
185.4 |
171.6 |
Total liabilities |
481.6 |
501.1 |
EQUITY |
|
|
Equity attributable to owners of the parent |
309.4 |
314.0 |
Non-controlling interests |
36.6 |
35.6 |
Total equity |
345.9 |
349.6 |
Total equity and liabilities |
827.5 |
850.6 |