MBI sales up 30% in Q1 2016
May. 13, 2016
The US biopesticide company Marrone Bio Innovations (MBI), posted an increase of 30% in sales to $2.7 million in the first quarter of 2016. This growth reflects continued increases in grower adoption of the MBI's products, use of the MBI's products on an expanded number of crops, growth from new customers and the addition of Majestene® sales.
The Company's net loss for the first quarter of 2016 was $9.3 million, compared to a loss of $11.9 million in the first quarter of 2015. This improvement reflects the positive impact of restructuring activities, as well as growth in revenues and a moderation of certain non-operating expenses associated with its financial restatement, Audit Committee investigation and related matters. Except with respect to ongoing related litigation, the Company does not expect these expenses to continue in the future. The Company's gross margin in the quarter was 15.0% compared to 2.8% in last year's first quarter.
Dr. Pam Marrone, Chief Executive Officer, commented, "In addition to executing well against increased demand for our products, we have continued to focus on the achievement of a number of important operational objectives. For example, we have initiated our first seed treatment collaboration - a significant MBI milestone - with Groundwork BioAg to create an all-biological pesticidal and biostimulant seed treatment for corn and soybeans. We are also pleased that the U.S. EPA announced funding under the Great Lakes Restoration Initiative to assess new, open water application techniques to control zebra and quagga mussels with Zequanox."
Dr. Marrone continued, "We have also recently added a number of highly talented and motivated professionals to our sales and technical services team, and we continue to work towards other key operational objectives, including the launch of an improved Grandevo granule formulation, a distribution partnership for Zequanox, the signing of one or more row crop distribution deals, the signing of new distribution agreements in international markets and additions to our intellectual property portfolio."
Recent Business Highlights
- March 2016 - distribution agreement for Bio-Tam 2.0 with Isagro
- March 2016 - addition of Kathleen Merrigan to Board of Directors
- March 2016 - allowance of a U.S. patent on Regalia formulations
- April 2016 - Collaboration with Groundwork BioAg for an all-biological pesticidal and biostimulant seed treatment
- May 2016 - U.S. EPA funding for open water Zequanox treatments under the Great Lakes Restoration Initiative