BIOX Bioceres Crop Solutions Corp

FY23 revenues up 25% and Adjusted EBITDA at $81.1 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 fourth quarter and fiscal year ended June 30, 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

• Fiscal year results reflect continued growth in both revenues and Adjusted EBITDA, amidst a challenging external context. FY23 revenues were $419.8 million, a 25% year-over-year increase, and a 12% increase compared to the pro forma figures, which include historical revenues from Pro Farm. LTM Adjusted EBITDA reached $81.1 million, a 31% year-over-year increase compared to $61.9 million in Baseline Business EBITDA during FY22, and 80% growth compared to the reported pro forma metric, which includes negative profitability from Pro Farm and inventory ramp-up costs during FY22.

• Revenues in 4Q23 were $104.7 million, almost flat when compared to the year-ago reported number, and a 9% decrease compared with 4Q22 pro forma revenues. Quarterly sales were affected by a delayed transition into wetter El Niño weather in Argentina and industry-wide headwinds in the U.S. and Brazilian markets. Adjusted EBITDA was $10.4 million for the quarter.

• Pro Farm business achieved positive EBITDA contribution for the quarter and the full fiscal year, achieving the stated goal for the twelve months post-merger.

• HB4 Wheat revenues were $15.8 million, a 28% increase compared to the prior year number. Number of on-boarded multipliers/distributors up 8X, positioning commercial network to meet stated FY24 guidance.

• Agreement with Moolec Science to supply up to 20,000 tons of HB4 soy grain enables increased-value recognition of sustainability-linked soy inventories.

• EU partnership with Corteva expanded to MBI-306 bioinsecticidal platform in seed treatments. Upon product registration in Europe, Corteva will be the exclusive distributor through Corteva’s sales team and together with Pioneer® brand seed products.

MANAGEMENT REVIEW

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “While fiscal year 2023 was challenging due to external conditions, it was one during which we proved the resiliency of our organization, adjusting business plans to ensure we continued to outperform. We grew profitability, as evidenced by a 31% increase in Adjusted EBITDA year-over-year and more impressively on a pro-forma basis, with the legacy business of Marrone Bio Innovations positively impacting EBITDA during the fourth fiscal quarter.”

“We also continued to advance HB4, receiving key regulatory approvals that allowed us to transition into conventional seed channels. Indeed, eight times more multipliers are taking over the inventory ramp-up and go-to-market responsibilities for HB4 wheat ─ a key step towards meeting our stated fiscal year 2024 guidance.”

“Finally, our agreement with Corteva Seed Applied Technologies for MBI-306 in Europe will allow us to at least double the size of our business in the European region and further validates our position as a leading provider of biological seed care solutions to players such as Syngenta and Albaugh, among others.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: “We are proud to build upon our 2022 momentum during 2023, once again delivering growth across revenues and EBITDA, which stand at $420 million and $81 million respectively. Despite factors outside of our control – including a drought of historical magnitude in Argentina, floods in California and industry-wide headwinds – which dampened second and fourth quarter results, our strong performance for the year is testament to our successful revenue diversification strategy.”

“We delivered on our initial Pro Farm acquisition goals, with the assets contributing to EBITDA by the fourth quarter and on an LTM basis – setting the stage for future topline growth with new product introductions and geographic expansion of existing lines in collaboration with our partners.”

“Fiscal 2023 performance underscores our ability to maintain disciplined operational execution in the face of challenging industry conditions as well as the robustness of our long-term strategy, supported by a unique portfolio of technologies and a diversified commercial approach. We look forward to leveraging these factors to continue to generate long-term value for our shareholders.”

KEY FINANCIAL METRICS

(In millions of U.S. dollars, unless where otherwise stated)

Table 1: 4Q23 & FY23 Key Financial Metrics

4Q22

Pro forma1

4Q23

% Change

FY22

Pro forma1

FY23

 

% Change

 

Revenue by Segment

 

 

 

 

 

 

Crop Protection

57.1

45.1

(21%)

207.1

205.8

(1%)

Seed and Integrated Products

21.7

20.8

(4%)

51.3

56.7

10%

Crop Nutrition

36.1

38.8

7%

116.7

157.3

35%

Total Revenue

115.0

104.7

(9%)

375.1

419.8

12%

Gross Profit

41.0

40.5

(1%)

149.4

184.6

24%

Gross Margin

36%

39%

298 bps

40%

44%

415 bps

 

 

 

 

 

 

4Q22

Pro forma1

4Q23

% Change

FY22

Pro forma1

FY23

 

% Change

 

Adjusted EBITDA

11.8

10.4

(12%)

45.1

81.1

80%

1.

Financials presented for 4Q22 and FY22 correspond to pro forma reported financials, including Pro Farm

FY23 Summary: Both revenues and Adjusted EBITDA grew in FY23, despite challenging external conditions in the U.S., Brazil and Argentina, all key end markets. Reported sales increased by 25% year-over-year, and by 12% on a pro forma basis, to $419.8 million, benefiting from efforts in product and geographic diversification, with categories such as inoculants, biostimulants and micro-beaded fertilizers leading the growth. Gross profit grew by 24% with an overall gross margin of 44% as sales growth was led by high margin product categories. Adjusted EBITDA was $81.1 million, an 80% increase compared with the pro forma Adjusted EBITDA metric from FY22. Removing the negative impact from Pro Farm and inventory ramp-up costs on FY22 Adjusted EBITDA, the basis for comparison increases to $61.9M and implies a 31% year-over-year growth in Adjusted EBITDA.

4Q23 Summary: 4Q23 revenues declined by 9% given strong year-ago comparables and a slower than expected transition from dry La Niña weather to El Niño in Argentina, which negatively impacted sales of lower-margin crop protection products. The Seed and Integrated Products category also saw a slight decline as a result of some seed treatment products sales that now fall under the Syngenta agreement and are reported under the Crop Nutrition segment. By contrast, Crop Nutrition sales increased, as micro-beaded fertilizers resumed growth in Argentina and sales of Pro Farm biostimulants doubled. Gross profit fell by less than sales due to favorable product mix in both Crop Protection and Crop Nutrition. Adjusted EBIDTA in 4Q23 was $10.4 million.

For a full version of Bioceres fourth quarter & full-year 2023 earnings release, click here.

FOURTH QUARTER & FULL FISCAL YEAR 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:

Monday September 11, 2023

Time:

4:30 p.m. EST, 1:30 p.m. PST

Registration link:

Click here

US Toll Free dial-in number:

1-833-470-1428

International dial-in numbers:

Click here

Conference ID:

337704

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 September 18, 2023, following the conference.

Toll Free Replay Number:

1-866-813-9403

International Replay Number:

+44 204 525 0658

Replay ID:

389518

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

06/30/2023

 

Three-month

period ended

06/30/2022

 

Fiscal year

ended

06/30/2023

 

Fiscal year

ended

06/30/2022

Total revenue

 

104.7

 

105.7

 

419.8

 

334.8

Cost of sales

 

(64.2)

 

(69.3)

 

(235.2)

 

(208.4)

Gross profit

 

40.5

 

36.4

 

184.6

 

126.4

% Gross profit

 

39%

 

34%

 

44%

 

38%

Operating expenses

 

(33.2)

 

(26.7)

 

(128.7)

 

(84.4)

Share of profit of JV

 

(0.1)

 

0.4

 

1.2

 

1.1

Other income or expenses, net

 

(2.2)

 

(0.1)

 

(3.0)

 

(3.3)

Operating profit

 

5.0

 

10.0

 

54.1

 

39.9

Financial result

 

(9.7)

 

(7.6)

 

(35.3)

 

(25.8)

Profit/(loss) before income tax

 

(4.6)

 

2.4

 

18.8

 

14.1

Income tax

 

1.5

 

(6.9)

 

1.0

 

(18.0)

Profit/(loss) for the period

 

(3.1)

 

(4.5)

 

19.8

 

(3.9)

Other comprehensive profit/(loss)

 

(1.4)

 

9.2

 

(0.8)

 

35.2

Total comprehensive profit/(loss)

 

(4.5)

 

4.6

 

19.0

 

31.3

 

 

 

 

 

 

 

 

 

Profit/(loss) for the period attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

(3.8)

 

(5.0)

 

16.7

 

(7.2)

Non-controlling interests

 

0.6

 

0.5

 

3.1

 

3.3

 

 

(3.1)

 

(4.5)

 

19.8

 

(3.9)

Total comprehensive profit/(loss) attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

(5.0)

 

2.5

 

15.9

 

22.1

Non-controlling interests

 

0.4

 

2.2

 

3.1

 

9.1

 

 

(4.5)

 

4.6

 

19.0

 

31.3

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

Basic

 

62,146,082

 

42,302,318

 

 

 

 

Diluted

 

63,185,508

 

42,302,318

 

 

 

 

Unaudited Consolidated Statement of Financial Position

(Figures in U.S. dollars)

ASSETS

 

06/30/2023

 

06/30/2022

CURRENT ASSETS

 

 

 

 

Cash and cash equivalents

 

48.0

 

33.5

Other financial assets

 

14.2

 

5.4

Trade receivables

 

152.1

 

111.8

Other receivables

 

26.4

 

19.3

Income and minimum presumed income taxes recoverable

 

13.1

 

1.6

Inventories

 

140.4

 

126.0

Biological assets

 

0.1

 

0.1

Total current assets

 

394.4

 

297.7

NON-CURRENT ASSETS

 

 

 

 

Other financial assets

 

1.0

 

0.6

Trade receivables

 

-

 

0.2

Other receivables

 

2.5

 

2.3

Income and minimum presumed income taxes recoverable

 

-

 

0.0

Deferred tax assets

 

17.8

 

4.0

Investments in joint ventures and associates

 

39.3

 

38.6

Property, plant and equipment

 

71.2

 

49.9

Intangible assets

 

173.5

 

76.7

Goodwill

 

110.5

 

36.1

Right-of-use leased asset

 

13.9

 

12.1

Total non-current assets

 

429.7

 

220.5

Total assets

 

824.1

 

518.2

LIABILITIES

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

 

145.0

 

125.8

Borrowings

 

108.9

 

71.3

Employee benefits and social security

 

9.6

 

7.6

Deferred revenue and advances from customers

 

20.9

 

5.9

Income tax payable

 

0.5

 

7.5

Consideration for acquisition

 

1.5

 

3.0

Lease liabilities

 

3.9

 

1.4

Total current liabilities

 

290.2

 

222.7

NON-CURRENT LIABILITIES

 

 

 

 

Borrowings

 

60.7

 

74.2

Deferred revenue and advances from customers

 

0.6

 

-

Investments in joint ventures and associates

 

0.6

 

0.7

Deferred tax liabilities

 

48.3

 

29.0

Provisions

 

0.5

 

0.6

Consideration for acquisitions

 

7.8

 

9.9

Secured notes

 

75.2

 

12.6

Lease liability

 

10.0

 

10.3

Total non-current liabilities

 

203.8

 

137.3

Total liabilities

 

494.0

 

359.9

EQUITY

 

 

 

 

Equity attributable to owners of the parent

 

296.5

 

127.4

Non-controlling interests

 

33.6

 

30.9

Total equity

 

330.1

 

158.3

Total equity and liabilities

 

824.1

 

518.2

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230911652510/en/

Bioceres Crop Solutions Paula Savanti Head of Investor Relations investorrelations@biocerescrops.com