AgroPages-MBI sales dropped 19% in Q2 2014-Agricultural news

MBI sales dropped 19% in Q2 2014

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The US biopesticide company Marrone Bio Innovations (MBI) recorded a 19.4% decrease in sales to around $3.6 million in the second quarter of 2014. Product sales dropped by 17.8% to some $3.4 million in this quarter, while licensing rose by 6.3% to $51 thousand. Net loss for the second quarter was $10.4 million compared to $10.2 million in first quarter 2014.

For the half year of 2014, the sales dropped 11.2% to $6.4 million, and product sales also fell by 15.5% to $5.5 million. The net loss was $20.6 million compared to $12.4 million in the first half of 2013.

MBI's sales results($ 000)
Q2 ended June 30	Q2 2014	Q2 2013	% change	Half Year 2014	Half Year 2013	% change
Revenues	3,629	4,500	-19.4	6,419	7,230	-11.2
Products	3,414	4,152	-17.8	5,511	6,525	-15.5
Licensing	51	48	+6.3	96	96	0.0
Related party	164	300	-45.3	812	609	+33.3
Gross profit	780	1,102	-29.2	1,918	2,037	-5.8
Net profit (loss)	(10,385)	(1,639)	-	(20,631)	(12,388)	-

Pam Marrone, Chief Executive Officer of MBI stated, "We believe our momentum will build in the second half as our bio-based agricultural products, capable of both supplementing and substituting for many traditional solutions, demonstrate excellent value due to their combination of effectiveness, environmental friendliness and wide application. Additionally, we have now focused our development efforts on a suite of our best opportunities to ensure we maximize our return on investment and, at the same time, deepen our leadership position in this developing and disruptive category."

Ms. Marrone concluded, "We still expect to close the year with considerable momentum for Regalia Rx in row crops, as well as Regalia, Grandevo and Venerate in specialty crops, increases from our new product introductions and finally international expansion. Since the close of the second quarter, it has become evident that the market conditions, particularly in the Southeastern US, will be meaningful. Nonetheless, our fundamental view of our opportunity and of our ability to achieve our potential has not changed."

MBI received $10 million loan guarantee from USDA with Five Star Bank for M3 development funding to expand the plant production capacity in Bangor, Michigan.