Aug. 16, 2017
Marrone Bio Innovations, Inc. (MBI) has provided its financial results for the second quarter ended June 30, 2017.
- GAAP revenues grew 38% to $10.6 million in the first half of 2017, compared to $7.7 million in first half of 2016. GAAP revenues increased 28% to $6.5 million in the second quarter of 2017, compared to $5.0 million in the second quarter of 2016.
- Product shipments1 grew 51% to $12.1 million in the first half of 2017, compared to $8.1 million in the first half of 2016. Product shipments increased 36% to $5.7 million in the second quarter 2017, compared to $4.2 million in the same year-ago quarter.
- Gross margin increased to 41.3% in the first half of 2017, compared to 30.2% in the first half of 2016. Gross margin increased to 38.8% in the second quarter of 2017, compared to 38.2% in the same quarter year-ago.
"We've continued our steadfast progress in the first half and second quarter of 2017, and despite unfavorable weather that we believe reduced the number of expected sprays in some of our key markets—based upon historical practices and use patterns by growers—we grew second quarter shipments by over 36% to $5.7 million," said Dr. Pam Marrone, CEO of MBI. "This growth is particularly impressive given the agricultural business for our competitors was down more than 15%, on average, in the second quarter of 2017. We continue to enjoy growth above industry average due to our portfolio approach to product development and marketing, which focuses on addressing unmet market needs and promotes significant opportunities for each of our products.
"We have also continued our highly-targeted R&D focus on near-term and existing products, which is paying off significantly. A few recent highlights of our ongoing manufacturing improvement efforts in R&D include a 4x improvement in Grandevo® fermentation and an estimated 40% reduction to downstream processing costs, as well as increasing the production of Majestene®'s main nematicidal component, all of which are being implemented as quickly as is feasible to improve product margins. It is these sorts of breakthroughs that stand as a testament to our innovation, and when combined with increasing sales and continuously improving in-house manufacturing capabilities, we expect to drive margin improvements in a meaningful way over the long-term."
Dr. Marrone concluded: "Our brands are achieving recognition in the market place—both in U.S. and international markets—which has translated to increased sales as we market our solutions to address the unmet pest and disease challenges of our customers."
Recent Operational Highlights
- Executed the successful launch of Haven™, an anti-transpirant and sun protectant, which has experienced initial demand from growers that is several times higher than MBI internal projections. Haven has achieved improved quality and yields in targeted crops, such as tree nuts and tree fruit, and has also been found to reduce sun damage on berries, which is a new crop use for Haven.
- Became master distributor for Jet Harvest Solutions for the organic Biofungicide/sanitizer, Jet-Ag®, a product that complements our flagship fungicide, Regalia.
- Achieved excellent field trial results with all of our products in key market regions in Latin America and Asia. Entered the African market through the first commercial shipment of our biofungicide, REYSANA™, to Morocco for use by growers on tomatoes, grapes and cucurbits. Reysana contains the same ingredients as Regalia® Biofungicide, which is now marketed and sold in more than 10 countries worldwide.
- Expanded the approvals of MBI products on multiple state listings for cannabis uses where those crops are authorized for medicinal or adult use.
- Initiated new construction at MBI's Marrone Michigan Manufacturing facility to begin manufacturing Grandevo WDG, a second-generation formulation, in the late fall, to will allow MBI to meet anticipated demand for this newly introduced product.
- Completed, in conjunction with the U.S. Geological Survey, state agencies and local conservation organizations, a U.S. EPA Great Lakes Restoration Initiative-funded project that used Zequanox® in an open water trial on Round Lake in Michigan. The purpose of the study was to control invasive zebra and quagga mussels that have disrupted and degraded ecosystems throughout the United States, without harming native aquatic species or recreational activities. Round Lake is a pilot for potential large-scale habitat restoration efforts on the Great Lakes.
- Continued stellar efficacy trials of Stargus™ and Amplitude™ (MBI-110) Biofungicides, slated for U.S. EPA approval in the second half of 2017, against key crop diseases. Launch plans have been developed and finalized, with targeted placements with key growers scheduled in late fall.
- Concluded a collaboration with strawberry industry leaders on field evaluations and demonstrations of Ennoble™ (MBI-601), a MBI-developed soil biofumigant that has gained U.S. EPA approval. In field demonstrations, MBI-601 performed as well as a leading toxic chemical fumigant.
- Progressed on development of MBI-014 (formerly 010), an organic bioherbicide that is on target for an EPA submission in the fourth quarter of 2017.