Revenues increased 33% compared with 3Q22
pro forma numbers
LTM adjusted EBITDA reached $85.3
million
Brazil HB4 initiatives advancing favorably
on the back of full regulatory approval for wheat and positive soy
performance with groundbreaking farmers
Published 2022 Sustainability Report “Each
Step We Take”
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, 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 were $93.6 million in 3Q23, a 33% increase
compared to the pro forma numbers for the third quarter of last
year, which are inclusive of historical revenues from Pro Farm.
Topline growth was primarily driven by revenues in the Crop
Nutrition segment, resulting from the initial proceeds generated by
the strategic partnership with Syngenta, which more than offset the
negative impact of the extended drought in Argentina.
- Adjusted EBITDA was $35.8 million, mainly benefited by
proceeds from the Syngenta agreement that were recognized in the
quarter. On an LTM basis, adjusted EBITDA was $85.3
million.
- Brazil’s National Biosafety Commission concluded the safety
evaluation of HB4 Wheat, providing full
approval for commercialization and cultivation in the country.
Partnerships with EMBRAPA and OR Sementes in place to introgress
HB4 trait into varieties adapted to Brazil, with focus on the
Cerrados region.
- HB4 Soy program in Brazil moving forward, with initial
varieties performing favorably under diverse conditions. Seed
inventory ramp-up on track to reach 10,000 hectares in 23/24
season.
- Inaugural 2022 Sustainability Report published,
documenting our journey in developing and commercializing
technologies that address two major challenges confronting global
agriculture: climate change and biodiversity preservation.
MANAGEMENT REVIEW
Mr. Federico Trucco, Bioceres´ Chief Executive Officer,
commented: “We are delighted to resume our growth trajectory with
solid numbers reported in this quarter, despite the extended
drought in Argentina, which continued to affect our sales in this
important market. Our outstanding performance this quarter results
from the combination of strategic actions we have taken over the
last year to diversify the product and geographic exposure of our
business. For instance, this quarter saw the initial benefits of
the strategic partnership with Syngenta, which accelerates and
broadens the international growth of our inoculant business.”
“We are also making great strides internationally on the HB4
front. In Brazil, our soybean program is steadily advancing, with
an initial set of varieties tested by farmers in five states, with
at least one variety consistently outperforming the top commercial
alternatives. Brazil’s recent approval for HB4 Wheat
commercialization and cultivation consolidated our collaboration
with local institutions and seed developers such as Embrapa and OR
Sementes. Additionally, the approval of HB4 grain importation by
Brazil (adding to the prior approval for flour importation) allows
us to diversify our go-to-market strategy in Argentina, where we
are expanding original seed sales to a group of 45 seed
multipliers, who can now build their own inventories for future,
direct-to-farmer, certified seed sales. At the same time, we have
enabled third parties such as Buck Semillas, to develop HB4
varieties with their own genetics, allowing us to more quickly
address the needs of farmers in certain regions.”
Trucco added: “As described in our recently published
Sustainability Report, our portfolio of products promotes efficient
resource use and protects soil health and ecosystem biodiversity
while strengthening crops against weather conditions associated
with climate change. We are encouraged to see that farmers adoption
of good agricultural practices can be independent of regulations
when science is used to align productivity incentives with positive
externalities. This concept is at the heart of our all-around value
proposition.”
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer,
noted “This quarters’ strong results reflect the value of our
strategic actions to diversify revenues, and to profit from our
extensive portfolio of technologies in multiple ways. Results from
the agreement with Syngenta were timely in helping us navigate our
seasonally weakest quarter in a context of halted demand for some
of our products due to unfavorable weather, particularly in
Argentina. Both dynamics ─ weather patterns affecting seasonality
and alternative revenue sources ─ are a reminder that our
underlying performance is better assessed when looking at annual
results. The results from the inoculants agreement recognized in
the quarter drove improved revenues and profits, resulting in a
strengthened financial position – a desirable position to be in
considering the current turmoil in global markets. We feel
confident about our ability to execute on short and mid-term plans,
and if the drought situation in Argentina finally reverses in the
coming weeks, we are optimistic about having a strong end to the
fiscal year.”
KEY FINANCIAL METRICS (In millions of U.S. dollars,
unless where otherwise stated)
Table 1: 3Q23 & YTD Key Financial
Metrics
3Q22
3Q23
% Change
YTD22
YTD23
% Change
Pro forma1
Pro forma1
Revenue by Segment
Crop Protection
45.9
44.4
-3%
143.2
160.7
12%
Seed and Integrated Products
3.5
5.7
65%
27.5
35.9
31%
Crop Nutrition
21.3
43.5
104%
75.6
118.5
57%
Total Revenue
70.6
93.6
33%
246.2
315.1
28%
Gross Profit
31.3
57.5
84%
113.9
144.2
27%
Gross Margin
44.30%
61.40%
1,707 bps
45.50%
40.50%
(505 bps)
3Q22
3Q23
% Change
YTD22
YTD23
% Change
Pro forma1
Pro forma1
Adjusted EBITDA
2.8
35.8
1200%
33.3
70.7
113%
1.
3Q22 and YTD22 pro forma financials
include Pro Farm historical numbers.
Summary: 3Q23 revenues increased 33% to $93.6 million
when compared to 3Q22 pro forma revenues that include historical
sales from Pro Farm. The historical drought that affected Argentina
in the previous quarter continued into 3Q23 negatively impacting
product sales, particularly micro-beaded fertilizer sales. This
decline was fully offset by the recognition of a large portion of
the initial compensatory payment from the agreement with Syngenta,
announced in September 2022. This agreement is part of the
company’s strategy of revenue diversification and helped to offset
the impact of an unusually severe drought in a key market. On a
year-to-date basis, sales were up 28%. Gross profit and adjusted
EBITDA for the quarter saw greater YOY increases (84% and 1200%
respectively) as proceeds from the inoculant agreement flow
directly to the bottom line. LTM adjusted EBITDA stood at $85.3
million.
For a full version of Bioceres third quarter 2023 earnings
release, click here.
THIRD QUARTER 2023 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, May 11, 2023
Time:
8:30 a.m. EST, 5:30 a.m. PST
US Toll Free dial-in number:
1-833-470-1428
International dial-in
numbers:
Click here
Conference ID:
001055
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 May 18, 2023,
following the conference.
Toll Free Replay Number:
1-866-813-9403
International Replay Number:
+44 204 525 0658
Replay ID:
603438
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
(Figures in U.S. dollars)
Three-month period ended
03/31/2023
Three-month period ended
03/31/2022
Total revenue
93,605,392
69,482,518
Cost of sales
-36,137,759
-45,823,445
Gross profit
57,467,633
23,659,073
% Gross profit
61%
34%
Operating expenses
-27,881,542
-19,869,946
Share of profit of JV
378,145
-203,954
Other income or expenses, net
-97,516
-1,437,718
Operating profit
29,866,720
2,147,455
Financial result
-7,577,828
-4,784,248
Profit/(loss) before income tax
22,288,892
-2,636,793
Income tax
5,189,627
-4,340,156
Profit/(loss) for the period
27,478,519
-6,976,949
Other comprehensive profit/(loss)
-62,622
12,367,795
Total comprehensive profit/(loss)
27,415,897
5,390,846
Profit/(loss) for the period attributable to:
Equity holders of the parent
28,145,878
-6,486,721
Non-controlling interests
-667,359
-490,228
27,478,519
-6,976,949
Total comprehensive profit/(loss) attributable to:
Equity holders of the parent
28,206,144
3,889,873
Non-controlling interests
-790,247
1,500,973
27,415,897
5,390,846
Weighted average number of shares
Basic
62,002,011
41,138,527
Diluted
63,079,523
41,138,527
Unaudited Consolidated
Statement of Financial Position
(Figures in U.S. dollars)
ASSETS
03/31/2023
06/30/2022
CURRENT ASSETS
Cash and cash equivalents
57,737,138
33,475,266
Other financial assets
13,141,069
5,401,133
Trade receivables
157,816,812
111,752,310
Other receivables
30,218,852
19,327,584
Income and minimum presumed income taxes recoverable
10,000,887
1,647,398
Inventories
150,862,729
126,044,122
Biological assets
2,043,651
57,313
Total current assets
421,821,138
297,705,126
NON-CURRENT ASSETS
Other financial assets
1,079,947
619,841
Trade receivables
326,380
200,412
Other receivables
2,652,278
2,254,199
Income and minimum presumed income taxes recoverable
17,912
44,412
Deferred tax assets
4,235,301
4,011,374
Investments in joint ventures and associates
39,185,745
38,554,092
Property, plant and equipment
66,113,264
49,908,325
Intangible assets
174,288,295
76,704,869
Goodwill
122,532,487
36,073,685
Right-of-use leased asset
13,614,782
12,144,026
Total non-current assets
424,046,391
220,515,235
Total assets
845,867,529
518,220,361
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
150,174,333
125,849,620
Borrowings
104,986,796
71,301,468
Employee benefits and social security
7,958,760
7,619,121
Deferred revenue and advances from customers
13,144,781
5,895,313
Income tax payable
541,935
7,538,764
Consideration for acquisition
1,943,216
3,048,562
Lease liabilities
3,136,708
1,412,904
Total current liabilities
281,886,529
222,665,752
NON-CURRENT LIABILITIES
Trade and other payables
716,864
-
Borrowings
70,964,484
74,177,169
Deferred revenue and advances from customers
17,096,542
-
Investments in joint ventures and associates
221,014
717,948
Deferred tax liabilities
47,312,700
29,005,943
Provisions
415,443
603,022
Consideration for acquisitions
8,163,657
9,854,228
Secured notes
74,161,086
12,559,071
Lease liability
10,658,070
10,338,380
Total non-current liabilities
229,709,860
137,255,761
Total liabilities
511,596,389
359,921,513
EQUITY
Equity attributable to owners of the parent
301,092,769
127,358,573
Non-controlling interests
33,178,371
30,940,275
Total equity
334,271,140
158,298,848
Total equity and liabilities
845,867,529
518,220,361
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510006005/en/
Bioceres Crop Solutions Paula Savanti Head of Investor
Relations investorrelations@biocerescrops.com
Bioceres Crop Solutions (NASDAQ:BIOX)
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