Bioceres Crop Solutions reports 1Q25 results: Total revenues of $93.3 million, Adjusted EBITDA of $8.5 million

Date:11-13-2024

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 first quarter ended September 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 1Q25 were $93.3 million, compared to $116.6 million in the same quarter last year. Results were driven by performance in Argentina, where the summer crop season began at an unusually slow pace due to delayed rains and just-in-time purchasing behavior. North America and Brazil gained momentum, despite lingering market headwinds, and partially offset the soft performance in Argentina.

• Operating profit was $3.4 million and net loss was $5.3 million. Adjusted EBITDA for the quarter was $8.5 million.

• RinoTec technology received EPA’s Green Chemistry Challenge Award in the Design of Safer and Degradable Chemicals category.

• Regulatory approvals for HB4 soybean production were obtained in Uruguay and Bolivia, marking full clearance for the technology across all soybean producing countries in the Americas.

Management Review

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: ″As farmers understand better than anyone else, agriculture is inherently dependent on weather. While, as a technology company we are dedicated to helping farmers navigate this reality, our business cycle also faces weather-related impacts. To mitigate these effects, we rely on portfolio diversification across product types, usage timing, and multiple crops. However, much like in farming itself, geographic diversification remains the most effective hedge against weather events.

This quarter, we saw the benefits of this strategy, with positive contributions from Brazil, the United Sates, and our Syngenta collaboration outside of Argentina. Together, these almost doubled their share of total sales and, even more importantly, expanded their contribution to total gross profit by 2.5 times. This positive international performance, coupled with fully normalized rainfall in Argentina, allows us to remain optimistic for the rest of the fiscal year.

That said, we remain focused on cost management and a disciplined approach to capital allocation, aiming to both adapt to and increase our flexibility amid current market conditions. At the same time, our commitment to advancing our unique portfolio of technologies is unaltered, encouraged by the recognition and validation our technologies continue to receive from regulators worldwide, as highlighted in this quarter’s report.″

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: "Results for the quarter were marked by a slower-than-usual start to the high season and tough market conditions in Argentina, partially offset by strong performance in North America and Brazil. This highlights the importance of our evolving strategy of geographic and portfolio diversification. Moving forward, capital allocation will continue to prioritize products and technologies with lower-risk and near-term payback periods. Coupled with a more disciplined approach to working capital management, this aims to enhance cash generation for the fiscal year, while preserving the long-term intrinsic value of our unique portfolio of current and future technologies.″

Key Financial Metrics

Table 1:

1Q25 Key Financial Metrics

1Q25 Summary: Revenues for the quarter totaled $93.3 million, compared to $116.6 million in the same period last year. The beginning of summer crop planting in Latin America was marked by unfavorable market conditions in Argentina, where a slow start to the season, driven primarily by weather, affected sales of crop protection products and primarily drove results for the country. Sales of micro-beaded fertilizers in Argentina remained under pressure due to an unusual shift of corn acreage into soybeans. Importantly, key markets such as North America and Brazil posted growth, despite lingering headwinds. Gross profit for the quarter was $37.5 million, reflecting a 17% decline, consistent with the decline in sales. However, overall gross margin improved driven by a strategic focus on products with higher margins and more favorable cash conversion cycles, in line with the Company’s strengthened emphasis on cash generation and working capital management. This shift led to a reduced focus on third-party products sales, which faced heightened competition and price pressure in Argentina’s crop protection industry. Operating profit for the quarter was $3.4 million, with a net loss of $5.3 million. Adjusted EBITDA for the quarter was $8.5 million.

For a full version of Bioceres’ first quarter fiscal year 2025 earnings release, click here.