05/12/2022 | Press release | Distributed by Public on 05/12/2022 04:05
Key regulatory milestone obtained in China: food & feed approval of HB4 Soy enables commercial launch. Incremental EBITDA projected at $20-25 million for FY25
HB4 Wheat approved for food & feed in Colombia, Australia and New Zealand
Trigall Genetics reached preliminary understanding to acquire wheat breeding program in Australia
3Q22 Comparable Revenues up 72% to $60.1 million
ROSARIO, Argentina--(BUSINESS WIRE)-- Bioceres Crop Solutions Corp. ("Bioceres") (NASDAQ: BIOX), a fully integrated provider of crop productivity solutions designed to enable the transition of agriculture towards carbon neutrality, has reported financial results for the third quarter 2022, ended March 31, 2022. Financial results are expressed in US dollars and are presented in accordance with International Financial Reporting Standards. All comparisons in this announcement are year-over-year ("YoY"), unless otherwise noted.
FISCAL THIRD QUARTER & SUBSEQUENT FINANCIAL & BUSINESS HIGHLIGHTS
FISCAL THIRD QUARTER & SUBSEQUENT HB4 HIGHLIGHTS
MANAGEMENT REVIEW
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: "Our third fiscal quarter has been historically our weakest and less eventful quarter for various reasons, most importantly because it overlaps with the Latin American summer, not an important planting period for any one crop. The third quarter of fiscal year 2022, which we are currently reporting, deviates from this historical rule. And this is not only because of the great momentum we continue to observe in our sales, with revenues increasing 72% on a comparable basis, but also and significantly due to the business development and regulatory milestones that were achieved during the period and subsequently thereafter."
Trucco added, "As we communicated in March, we are pursuing a transformational merger with Marrone Bio Innovations (MBI) to become an undisputable leader in the ag biologicals' space, and just recently in April we have received the long-awaited regulatory green light from China which allows us to move HB4 Soy into its commercialization phase. With regards to the MBI merger, we were able to file F-4 documents with the SEC this last Monday, and we remain on track for a first quarter FY23 closing. In terms of HB4 Soy, we are today providing guidance for FY25, when we expect HB4 Soy to contribute between $20 million and $25 million of incremental EBITDA."
"Outside of these important milestones, we are taking advantage of the renewed global interest in wheat to advance commercial agreements for HB4 Wheat within Latin America and expand outside of the region. Our wheat subsidiary, Trigall Genetics, has reached a preliminary understanding with S&W Seed of Australia to acquire all of its wheat breeding program and assets. This agreement is reached at the time when a positive recommendation is obtained from regulators in Australia regarding the use of HB4 wheat for food and feed. We have also reached a collaboration agreement with the African Agricultural Technology Foundation to start the path to bring HB4 Wheat into Sub-Saharan Africa. All these opportunities are now available due to investment decisions we made many years ago, which position us as a technology leader for this critical crop," Trucco concluded.
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, added, "Following a solid performance in the first half of our fiscal 2022, this third quarter brought record-high sales. Comparable revenues for the quarter reached $60.1 million and YTD comparable revenues have accumulated $215.2 million, both representing a 72% increase versus the year-ago quarter and YTD metrics. LTM Adjusted EBITDA for our baseline business stood at $61.3 million despite some macro headwinds affecting costs in our Argentine operations and unusually high logistics costs as we decided to anticipate shipment of high-margin products to end markets as a precautionary measure to the constraints in global supply chains."
"Subsequent to the quarter´s closing we announced the conversion of 75% of the outstanding amount of the convertible note issued in 2019, reducing our short-term debt by roughly $37 million as we prepare for two major events, the closing of the merger agreement with MBI and the commercial launch of HB4. Following the recent approval in China, it is reassuring to have set targets for HB4 Wheat and Soy that would imply an additional contribution of $35 million to $45 million of EBITDA in the next two to three years to a healthy and growing baseline business", Lopez Lecube concluded.
Key Operational Metrics (In millions of US dollars, unless where otherwise stated)
Table 1: Key Financial Metrics
3Q22 |
Comparable |
% Change |
||
Revenue by Segment |
3Q21 |
3Q22 |
Comparable1 |
As Reported |
Crop Protection |
16.5 |
35.8 |
118% |
136% |
Seed and Integrated Products |
3.5 |
3.5 |
0% |
21% |
Crop Nutrition |
15.1 |
20.8 |
38% |
58% |
Total Revenue |
35.0 |
60.1 |
72% |
92% |
Gross Profit |
16.0 |
25.4 |
59% |
54% |
Gross Margin |
45.6% |
42.3% |
(339 bps) |
(824 bps) |
As Reported |
% Change |
|||
Adjusted EBITDA |
6.9 |
4.8 |
(30%) |
|
HB4 pre-launch costs |
0.5 |
2.3 |
360% |
|
Baseline Business Adjusted EBITDA |
7.4 |
7.1 |
(4%) |
1. Comparable excludes the impact of IAS29 as discussed in more detail on page 15. |
For a full version of Bioceres Fiscal Third Quarter 2022 Earnings Release, click here
FISCAL THIRD QUARTER 2022 EARNINGS CONFERENCE CALL
Bioceres Chairman & Chief Executive Officer Federico Trucco, Chief Financial Officer Enrique Lopez Lecube and Head of Investor Relations Rodrigo Krause will host the conference call followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the company's website here.
To access the call, please use the following information:
Date: |
Thursday, May 12, 2022 |
Time: |
8:30 a.m. EST, 5:30 a.m. PST |
Toll Free dial-in number: |
1-844-200-6205 |
Toll/International dial-in number: |
1-929-526-1599 |
Conference ID: |
922379 |
Webcast: |
Click here |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please contact MZ Group at +1 (949) 491-8235.
The conference call will be broadcast live and available for replay hereand via the investor relations section of the company's websitehere.
A replay of the call will be available through May 17, 2022, following the conference.
Toll Free Replay Number: |
1-866-813-9403 |
International Replay Number: |
+44 204 525 0658 |
Replay ID: |
823380 |
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a fully integrated provider of crop productivity technologies designed to enable the transition of agriculture towards carbon neutrality. To do this, Bioceres' solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The Company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation Crop Nutrition and Protection solutions. Through its HB4® program, the Company is bringing digital solutions to support growers' decisions and provide end-to-end traceability for production outputs. For more information, visit here.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include estimated financial data and, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses by governments, clients and the Company, on our business, financial condition, liquidity position and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. These forward-looking statements include, but are not limited to, whether (i) the health and safety measures implemented to safeguard employees and assure business continuity will be successful, (ii) the uncertainty related to COVID-19 in the farming community will be short lived, and (iii) we will be able to coordinate efforts to ramp up inventories. Such forward-looking statements are based on management's reasonable current assumptions, expectations, plans and forecasts regarding the Company's current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations or could affect the Company's ability to achieve its strategic goals, including the uncertainties relating to the impact of COVID-19 on the Company's business, operations, liquidity and financial results and the other factors that are described in the sections entitled "Risk Factors" in the Company's Securities and Exchange Commission filings updated from time to time. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Unaudited Consolidated Statement of Comprehensive Income (Figures in US dollars) |
||||
Three-month |
Three-month |
Nine-month |
Nine-month |
|
Total revenue Cost of sales |
69,482,518 (45,823,445) |
36,221,113 (20,901,909) |
229,051,616 (139,038,887) |
127,315,064 (69,088,393) |
Gross profit % Gross profit |
23,659,073 34% |
15,319,204 42% |
90,012,729 39% |
58,226,671 46% |
Operating expenses Share of profit of JV Other income or expenses, net |
(19,869,946) (203,954) (1,437,718) |
(11,656,378) 906,241 205,127 |
(57,683,281) 715,133 (3,155,700) |
(35,107,369) 1,211,928 345,449 |
Operating profit |
2,147,455 |
4,774,194 |
29,888,881 |
24,676,679 |
Finance result |
(4,784,248) |
(5,008,002) |
(18,185,537) |
(23,640,338) |
Profit before income tax |
(2,636,793) |
(233,808) |
11,703,344 |
1,036,341 |
Income tax |
(4,340,156) |
(390,710) |
(11,076,571) |
(6,232,163) |
Profit/ (Loss) for the period |
(6,976,949) |
(624,518) |
626,773 |
(5,195,822) |
Other comprehensive profit / (loss) |
12,367,795 |
1,911,937 |
25,990,283 |
2,707,064 |
Total comprehensive Profit / (Loss) |
5,390,846 |
1,287,419 |
26,617,056 |
(2,488,758) |
Profit / (loss) for the period attributable to: |
||||
Equity holders of the parent Non-controlling interests |
(6,486,721) (490,228 |
(1,180,484) 555,966 |
(2,185,491) 2,812,264 |
(7,503,849) 2,308,027 |
(6,976,949) |
(624,518) |
626,773 |
(5,195,822) |
|
Total comprehensive income / (loss) attributable to: |
||||
Equity holders of the parent Non-controlling interests |
3,889,873 1,500,97 |
510,325 777,094 |
19,685,934 6,931,122 |
(5,278,946) 2,790,188 |
5,390,846 |
1,287,419 |
26,617,056 |
(2,488,758) |
Unaudited Consolidated Statement of Financial Position (Figures in US dollars) |
||
ASSETS |
03/31/2022 |
06/30/2021 |
CURRENT ASSETS |
||
Cash and cash equivalents |
39,041,287 |
36,046,113 |
Other financial assets |
2,243,803 |
11,161,398 |
Trade receivables |
113,388,127 |
88,784,172 |
Other receivables |
16,457,851 |
11,153,705 |
Income and minimum presumed income taxes recoverable |
1,272,791 |
990,881 |
Inventories |
102,350,569 |
61,037,551 |
Biological assets |
22,199,193 |
2,315,838 |
Total current assets |
296,953,621 |
211,489,658 |
NON-CURRENT ASSETS |
||
Other financial assets |
859,981 |
1,097,462 |
Trade receivables |
634,428 |
135,739 |
Other receivables |
1,964,822 |
2,543,142 |
Income and minimum presumed income taxes recoverable |
39,349 |
12,589 |
Deferred tax assets |
4,582,941 |
3,278,370 |
Investments in joint ventures and associates |
35,783,222 |
30,657,173 |
Property, plant and equipment |
50,656,642 |
47,954,596 |
Intangible assets |
75,714,907 |
67,342,362 |
Goodwill |
34,688,835 |
28,751,206 |
Right-of-use leased asset |
1,700,405 |
1,327,660 |
Total non-current assets |
206,625,532 |
183,100,299 |
Total assets |
503,579,153 |
394,589,957 |
LIABILITIES |
03/31/2022 |
06/30/2021 |
CURRENT LIABILITIES |
||
Trade and other payables |
123,224,013 |
72,091,408 |
Borrowings |
76,364,127 |
76,785,857 |
Employee benefits and social security |
6,600,609 |
4,680,078 |
Deferred revenue and advances from customers |
2,655,322 |
6,277,313 |
Income tax payable |
5,970,572 |
7,452,891 |
Convertible notes |
37,578,030 |
- |
Lease liabilities |
838,776 |
750,308 |
Total current liabilities |
253,231,449 |
168,037,855 |
NON-CURRENT LIABILITIES |
||
Borrowings |
78,155,343 |
47,988,468 |
Government grants |
- |
784 |
Investments in joint ventures and associates |
449,943 |
1,278,250 |
Deferred tax liabilities |
27,991,379 |
25,699,495 |
Provisions |
507,219 |
449,847 |
Consideration for acquisitions |
12,747,736 |
11,790,533 |
Convertible notes |
12,895,578 |
48,664,012 |
Lease liability |
539,935 |
390,409 |
Total non-current liabilities |
133,287,133 |
136,261,798 |
Total liabilities |
386,518,582 |
304,299,653 |
EQUITY |
||
Equity attributable to owners of the parent |
88,306,816 |
67,743,242 |
Non-controlling interests |
28,753,755 |
22,547,062 |
Total equity |
117,060,571 |
90,290,304 |
Total equity and liabilities |
503,579,153 |
394,589,957 |
Investor Relations Contact
Chris Tyson
Executive Vice President
MZ Group - MZ North America
(949) 491-8235
[email protected]
www.mzgroup.us
Bioceres Crop Solutions
Rodrigo Krause
Head of Investor Relations
[email protected]