Rosario, Argentina
May 13, 2024

• Total revenues in 3Q24 were $84.0 million
• 3Q24 GAAP net income was $9.8 million and adjusted EBITDA1 was $21.1 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 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 EBITDA* 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.

* 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
 

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 .

Website: https://investors.biocerescrops.com/home/default.aspx

Published: May 14, 2024