Bioceres Crop Solutions Reports Fiscal First Quarter 2025 Financial and Operational Results
Total revenues in 1Q25 were $93.3 million
1Q25 net loss(1) was $5.3 million and Adjusted EBITDA(1) was $8.5 million
ROSARIO, Argentina--(BUSINESS WIRE)--November 11, 2024--
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
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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.
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Operating profit1 was $3.4 million and net loss1 was $5.3 million.
Adjusted EBITDA1 for the quarter was $8.5 million.
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RinoTec technology received EPA's Green Chemistry Challenge Award in
the Design of Safer and Degradable Chemicals category.
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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
(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 profit(1) for the quarter was $3.4 million, with a net loss(1) of $5.3 million. Adjusted EBITDA(1) for the quarter was $8.5 million.
For a full version of Bioceres' first quarter fiscal year 2025 earnings release, click here.
Fiscal First Quarter 2025 Earnings Conference Call
Management will host a conference call and question-and-answer session, which will be accompanied by a presentation available during the webcast or accessed via the investor relations section of the company's website.
To access the call, please use the following information:
Date: Tuesday, November 12, 2024 Please dial in 5-10 minutes prior to
the start time to register and join.
The conference call will be
broadcast live and available for
replay here and via the investor
relations section of the company's
website here. A replay of the call
will be available through November
19, 2024, following the conference.
Toll Free Replay Number:
1-866-813-9403 International Replay
Number: Click here Replay ID:
649318
Time: 8:30 a.m. EST, 5:30 a.m. PST
US Toll Free dial-in number:
1-833-470-1428
International dial-in numbers: Click
here
Conference ID: 305729
Webcast: Click here
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres' solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices.
The company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation Crop Nutrition and Protection solutions. Through its HB4$(R)$ 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
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