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 second quarter ended December 31, 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
• Total revenues in 2Q24 were $140.2 million, a 49% increase compared to the same quarter last year. Top line growth during the quarter was mainly driven by a strong summer crop season in the Southern Hemisphere, with resumed product demand post-drought in Argentina.
• Operating profit for the period was $16.8 million with GAAP net income at $1.2 million, compared with $2.2 million and a loss of $8.4 million, respectively, for the year-ago quarter.
• Adjusted EBITDA1 for the quarter was $24.1 million, more than double last year´s metric and reflecting top line growth and operational leverage.
• HB4 Wheat harvest completed, with resulting inventories in line to meet FY24 guidance.
• New US Patent awarded for HB4 Soy, extending technology protection until 2042.
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: ″Despite the headwinds the industry experienced in the quarter, we are pleased to announce record quarterly results. While we are not immune to the broader destocking process in several geographies, our portfolio of innovative products, secular growth drivers, and strong execution by our commercial teams allowed us to continue to outperform the industry and deliver our highest quarterly revenues yet.
We also continue to make progress on HB4, namely:
• Results from the wheat harvest in Argentina validate the competitiveness of our newer varieties against top commercial varieties
• Our soybean program in Brazil is advancing quickly with a 7x increase in hectares from last year
• We obtained new regulatory approvals for soybeans in Australia, New Zealand, Thailand and Malaysia, and for wheat in Thailand
• We were granted an additional patent by USPTO that should protect the HB4 Soy technology through at least 2042
Finally, our current wheat inventories are sufficient to meet our FY24 guidance for this business, allowing us to focus on commercial execution during the upcoming winter wheat planting season in South America.″
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted ″Our quarterly performance continued to build on the momentum we highlighted in the first quarter. Revenue growth was broad-based, with all product families delivering solid results, and margin recovery across many categories that had been affected by record droughts last year in key geographies. Importantly, cost discipline allowed us to deliver strong operating leverage in the quarter, leading to record results. As we look forward to the second half of our fiscal year, we remain focused on delivering growth, by investing in our innovative portfolio, and advancing the global penetration of our novel technologies.″
2Q24 Summary: Total revenues were $140.2 million in 2Q24, a 49% year-over-year increase. Second fiscal quarter performance was largely shaped by a strong summer crop season in the Southern Hemisphere, with a normalization of weather conditions in Argentina, and overall higher demand for Bioceres’ technologies. All three business segments delivered strong growth compared to the year-ago quarter – which had been marked by a historic drought in Argentina – and contributed almost evenly to the $45.8 million increase in revenues. Top line growth in Crop Protection and Crop Nutrition was achieved with margin expansion as sales mix favored higher margin technologies. The increase in Seed and Integrated Products revenues was driven by higher HB4 seed and downstream sales, with a less favorable product mix compared to the year-ago period. Overall, the 49% increase in revenues was achieved with a steady gross margin of 37%. 2Q24 results build on 1Q24´s strong performance, and confirm double-digit growth rates for revenues, net income and adjusted EBITDA1 for the first half of the fiscal year.
For a full version of Bioceres second quarter 2024 earnings release, click here .