Bioceres Crop Solutions reports financial results: Revenues up 18% in 4Q24, consolidating annual revenues of $465 million

Date:09-11-2024

• Revenues up 18% in 4Q24, consolidating annual revenues of $465 million

• FY24 GAAP net income at $6.2 million and adjusted EBITDA¹ at $81.4 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, 2024. 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 FY24 were $464.8 million, an 11% growth compared to the year before despite challenging market conditions in some geographies. Revenue growth in FY24 was largely driven by increases in HB4 sales, adjuvants and biostimulants. Operating profit for the period was $44.8 million with GAAP net income at $6.2 million. Adjusted EBITDA for the full fiscal year was $81.4 million, steady with respect to last year as growth in the business compensated for the lower accrual of Syngenta´s up-front payment versus last year.

• Revenues in 4Q24 were $124.0 million, an 18% growth compared to the year before, primarily led by higher HB4 sales. Operating profit was $9.5 million, and GAAP net loss was $2.1 million in 4Q24, improving by 86% and 25%, respectively. Adjusted EBITDA for the quarter was $19.9 million, almost doubling last year´s metric.

• HB4 Wheat approved for cultivation in the United States, the fourth largest wheat producer in the world and the largest in the Americas. United States is now the fourth country in the world to greenlight production of HB4 wheat, following Argentina, Brazil and Paraguay.

Management Review

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: ″In fiscal year 2024 we consolidated Bioceres’ financial performance at record-high revenue and adjusted EBITDA levels, despite it having been another challenging year for agriculture, with on-farm economics declining in key crops and geographies. The annual result was achieved through sales growth and an almost doubling of adjusted EBITDA in the fourth and final quarter of the year, with close to half of the increased profitability of the quarter resulting from the HB4 business.

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¹ Adjusted EBITDA is a non-GAAP measure. See ″ Use of non-IFRS financial information ″ for information regarding our use of Adjusted EBITDA and its reconciliation from the most comparable financial measure.

″We are increasingly excited by the prospects for our most innovative technologies. Earlier in the fiscal year, we obtained patent protection for our UHC biological nitrogen fixation solution, as well as regulatory clearance for our bio-insecticide platform in Brazil, both of which are critical for near-term expansion in the high-growth seed-applied technologies market. More recently, we received notice from APHIS that green-lights cultivation of HB4 wheat in the U.S., an outcome which was long awaited. This regulatory endorsement helps us in markets where we are already scaling HB4 sales, as it provides additional validation or regulatory comfort. In the medium term, it allows us to expand into a new and important geography, potentially doubling the combined opportunity of Latin America and Australia.

″As we look ahead, we remain focused on launching and scaling our portfolio of unique technologies, while constantly engaging with farmers and other stakeholders to fine-tune our value proposition and market access strategies.″

Mr. Enrique Lopez Lecube, Bioceres' Chief Financial Officer, noted: ″Our financial results for FY24 demonstrate once again the resilience of our business and the strategic value of maintaining a diversified yet coherent and continuously evolving portfolio of technologies. In the fourth quarter, we increased our profitability across operating profit and net income and doubled adjusted EBITDA, despite encountering challenging conditions for certain products in the final months of the fiscal year, particularly fertilizers, that impeded our ability to excel in every aspect and achieve annual EBITDA growth from last year’s record high. Annually we achieved top line growth and maintained our full-year adjusted EBITDA above last year’s $81 million threshold, while successfully managing our cost base within a context of industry-wide headwinds that prevailed for most of the year. We intend this year’s result to be a steppingstone towards greater performance as we continue expanding our business with a focus on profitability and enhanced financial performance.″

Key Financial Metrics

Table 1:

4Q24 & FY24 Key Financial Metrics

4Q24 Summary: Quarterly revenues were $124.0 million, an 18% increase compared to the same quarter last year. In the fourth quarter, revenue growth was led by HB4 sales as the winter wheat season got underway in the southern hemisphere. Gross profit was $47.4 million, an 18% year-over-year growth, primarily driven by HB4 in Seed and Integrated Products and gross margin expansion in Crop Protection. Operating profit reached $9.5 million, and GAAP net loss was $2.1 million, improving by 86% and 25% compared to the previous year, respectively. Adjusted EBITDA was $19.9 million, almost doubling last year´s metric, on the back of improved gross profit and operational leverage.

FY24 Summary: Total revenues reached $464.8 million in FY24, an 11% year-over-year increase. Growth for the year was primarily driven by the normalization of weather conditions in the southern hemisphere, with HB4 sales, adjuvants, and other crop protection products leading the growth. Biostimulant sales in Europe also contributed to the year-over-year increase. Gross profit remained flat given the lower accrual of Syngenta’s upfront payment in the product mix compared to the previous year. GAAP net income and adjusted EBITDA were $6.2 million and $81.4 million, respectively, compared to $20.2 million and $81.2 million in the previous year. Adjusted EBITDA showed little change year over year, in line with gross profit performance. Deliberate cost management resulted in SG&A growth being almost entirely attributable to variable expenses which, combined with improved JV results and other income and expenses performance, resulted in steady profitability for the year.

For a full version of Bioceres’ fourth quarter & full fiscal year 2024 earnings release, click here.

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