MBI sales up 13% in Q3 2015

The US biopesticide company Marrone Bio Innovations (MBI), posted an increase of 12.5% in sales to $2.5 million in the third quarter of 2015. This result primarily reflects increased grower adoption of MBI’s products and the use of products on an expanded number of crops with a reduction in 2015 of revenues from related parties. Nine-month sales were down by 1.9% to $7.9 million.

Net loss for the first nine months and third quarter of 2015 was $32.7 million and $9.8 million, respectively, compared to $35.4 million and $14.4 million for the first nine months and third quarter of 2014, respectively. Decreased net loss is primarily attributable to increases in gross margins and decreases in employee related expenses relating to a decrease in headcount. This was offset by increased expenses associated with the restatement, the Audit Committee investigation and related matters.


Various factors have reduced demand and impeded sales, including: disruption to product launches, including the Venerate launch, and sales due to the departure of our former Chief Operating Officer and members of our sales and marketing staff in the second half of 2014, low commodity prices, extended drought in California and the Western United States, as well as bad weather in other parts of the United States, and lack of anticipated sales internationally, with a long delay in registration of Regalia in Europe.

Pam Marrone, Chief Executive Officer of MBI concluded, "Over the last year, we have been addressing business challenges reflected in our recent financial results. We are rebuilding a focused and effective sales and marketing team that shares our values, including hiring highly experienced personnel, training our sales force and hiring a new head of marketing that we expect to join in December 2015 to guide an expanded marketing department. We have also worked diligently to reduce expenses, conserve cash and improve operating efficiencies, to extract greater value from our products and product pipeline and to improve our communication to and connection with the global sustainability movement that is core to our cultural values."

Recent Business Highlights

• Continuing to implement prioritization plan, including advancing product candidates expected to have the greatest impact on near-term growth potential and expanding international presence and commercialization
• Raised $40 million in note and warrant financing
• Completed transition of manufacturing process in-house to Bangor, Michigan facility
• Hired Brian Ahrens, VP Sales, and five regional territory sales managers, plus a VP Marketing Marrone expects to join in December 2015
• Developed an improved, EPA-approved Regalia biofungicide formulation
• More than doubled treated acres of Regalia in California almonds and grapes from 2014 to 2015
• Regalia® Maxx approved for several new outdoor and greenhouse uses and for emergency use in controlling downy mildew in hops in Canada and received registration in Brazil
• Submitted a new granule formulation of Grandevo® bioinsecticide to the EPA
• More than doubled treated acres of Grandevo in California from 2013 to 2015
• Grandevo received completeness determination from the European Commission, the first microbe of its kind to do so
• Zequanox® biomolluscicide demonstrated high effectiveness in controlling zebra mussel infestations in shallow-water habitats in lakes and 100% effectiveness in Minnesota's Christmas Lake
• Venerate® registered in California with good adoption in strawberries and grapes
• MajesteneTM bionematicide received EPA approval, targeted placement initiated for select customers
• Received patent for use of Chromobacterium to control corn rootworm larvae and nematode infestations and notice of allowance for use several uses on additional pest insects
• Received patents on synergistic combinations of the active ingredients in Regalia with chemical fungicides
• Reduced headcount by nearly half from its highpoint at the beginning of 2014
• Moved to new corporate headquarters and opened new greenhouse to facilitate and expand research and product development capacity