Bioceres Crop Solutions reports FY23 financial results: Revenues up 25% and Adjusted EBITDA at $81.1 million

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 fourth quarter and fiscal year ended June 30, 2023. 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

• Fiscal year results reflect continued growth in both revenues and Adjusted EBITDA, amidst a challenging external context. FY23revenues were $419.8 million, a 25% year-over-year increase, and a 12% increase compared to the pro forma figures, which include historical revenues from Pro Farm. LTM Adjusted EBITDA reached $81.1 million, a 31% year-over-year increase compared to $61.9 million in Baseline Business EBITDA during FY22, and 80% growth compared to the reported pro forma metric, which includes negative profitability from Pro Farm and inventory ramp-up costs during FY22.

• Revenues in 4Q23 were $104.7 million, almost flat when compared to the year-ago reported number, and a 9% decrease compared with 4Q22 pro forma revenues. Quarterly sales were affected by a delayed transition into wetter El Niño weather in Argentina and industry-wide headwinds in the U.S. and Brazilian markets. Adjusted EBITDA was $10.4 million for the quarter.

• Pro Farm business achieved positive EBITDA contribution for the quarter and the full fiscal year, achieving the stated goal for the twelve months post-merger.

• HB4 Wheat revenues were $15.8 million, a 28% increase compared to the prior year number. Number of on-boarded multipliers/distributors up 8X, positioning commercial network to meet stated FY24 guidance.

• Agreement with Moolec Science to supply up to 20,000 tons of HB4 soy grain enables increased-value recognition of sustainability-linked soy inventories.

• EU partnership with Corteva expanded to MBI-306 bioinsecticidal platform in seed treatments. Upon product registration in Europe, Corteva will be the exclusive distributor through Corteva’s sales team and together with Pioneer^® brand seed products.

MANAGEMENT REVIEW

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: ″While fiscal year 2023 was challenging due to external conditions, it was one during which we proved the resiliency of our organization, adjusting business plans to ensure we continued to outperform. We grew profitability, as evidenced by a 31% increase in Adjusted EBITDA year-over-year and more impressively on a pro-forma basis, with the legacy business of Marrone Bio Innovations positively impacting EBITDA during the fourth fiscal quarter.″

″We also continued to advance HB4, receiving key regulatory approvals that allowed us to transition into conventional seed channels. Indeed, eight times more multipliers are taking over the inventory ramp-up and go-to-market responsibilities for HB4 wheat ─ a key step towards meeting our stated fiscal year 2024 guidance.″

″Finally, our agreement with Corteva Seed Applied Technologies for MBI-306 in Europe will allow us to at least double the size of our business in the European region and further validates our position as a leading provider of biological seed care solutions to players such as Syngenta and Albaugh, among others.″

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: ″We are proud to build upon our 2022 momentum during 2023, once again delivering growth across revenues and EBITDA, which stand at $420 million and $81 million respectively. Despite factors outside of our control – including a drought of historical magnitude in Argentina, floods in California and industry-wide headwinds – which dampened second and fourth quarter results, our strong performance for the year is testament to our successful revenue diversification strategy.″

″We delivered on our initial Pro Farm acquisition goals, with the assets contributing to EBITDA by the fourth quarter and on an LTM basis – setting the stage for future topline growth with new product introductions and geographic expansion of existing lines in collaboration with our partners.″

″Fiscal 2023 performance underscores our ability to maintain disciplined operational execution in the face of challenging industry conditions as well as the robustness of our long-term strategy, supported by a unique portfolio of technologies and a diversified commercial approach. We look forward to leveraging these factors to continue to generate long-term value for our shareholders.″

KEY FINANCIAL METRICS

(In millions of U.S. dollars, unless where otherwise stated)

FY23 Summary: Both revenues and Adjusted EBITDA grew in FY23, despite challenging external conditions in the U.S., Brazil and Argentina, all key end markets. Reported sales increased by 25% year-over-year, and by 12% on a pro forma basis, to $419.8 million, benefiting from efforts in product and geographic diversification, with categories such as inoculants, biostimulants and micro-beaded fertilizers leading the growth. Gross profit grew by 24% with an overall gross margin of 44% as sales growth was led by high margin product categories. Adjusted EBITDA was $81.1 million, an 80% increase compared with the pro forma Adjusted EBITDA metric from FY22. Removing the negative impact from Pro Farm and inventory ramp-up costs on FY22 Adjusted EBITDA, the basis for comparison increases to $61.9M and implies a 31% year-over-year growth in Adjusted EBITDA.

4Q23 Summary: 4Q23 revenues declined by 9% given strong year-ago comparables and a slower than expected transition from dry La Niña weather to El Niño in Argentina, which negatively impacted sales of lower-margin crop protection products. The Seed and Integrated Products category also saw a slight decline as a result of some seed treatment products sales that now fall under the Syngenta agreement and are reported under the Crop Nutrition segment. By contrast, Crop Nutrition sales increased, as micro-beaded fertilizers resumed growth in Argentina and sales of Pro Farm biostimulants doubled. Gross profit fell by less than sales due to favorable product mix in both Crop Protection and Crop Nutrition. Adjusted EBIDTA in 4Q23 was $10.4 million.

For a full version of Bioceres fourth quarter & full-year 2023 earnings release, click here.

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