Bioceres Crop Solutions, a leading developer and distributor of agricultural productivity solutions aimed at revitalizing agricultural ecosystems and enhancing crop resilience to climate change, has announced its financial results for the fiscal second quarter ending on December 31, 2023. The financial figures are denominated in U.S. dollars and are reported in accordance with International Financial Reporting Standards. All comparisons provided in this update are year-over-year (YoY), unless otherwise specified.
Financial and Business Highlights
- Total Revenues: In the second quarter of fiscal year 2024, total revenues reached $140.2 million, marking a robust 49% increase compared to the corresponding period in the previous year. The growth in revenue was primarily attributable to a successful summer crop season in the Southern Hemisphere, coupled with renewed demand for products following a drought period in Argentina.
- Operating Profit and Net Income: The operating profit for the period amounted to $16.8 million, while GAAP net income stood at $1.2 million. This represents a significant improvement over the figures from the same quarter of the previous year, which were $2.2 million and a loss of $8.4 million, respectively.
- Adjusted EBITDA: Adjusted EBITDA for the quarter totaled $24.1 million, more than doubling the metric from the previous year. This increase reflects both top-line growth and operational efficiencies.
- HB4 Wheat Harvest and Patent: The HB4 Wheat harvest has been successfully completed, with resulting inventories aligned with the guidance for FY24. Additionally, Bioceres has been granted a new U.S. patent for HB4 Soy, extending technology protection until 2042.
Management Review
Mr. Federico Trucco, CEO of Bioceres, expressed satisfaction with the record quarterly results despite industry challenges. He highlighted the company’s resilient performance driven by innovative products, strategic growth drivers, and effective commercial execution.
Progress on the HB4 initiative was emphasized, including positive results from the wheat harvest in Argentina and advancements in the soybean program in Brazil. Regulatory approvals for soybeans and wheat in various countries further bolstered the company’s outlook.
Mr. Enrique Lopez Lecube, CFO of Bioceres, underscored the broad-based revenue growth and margin recovery witnessed in the quarter. Cost discipline contributed to strong operating leverage, resulting in record performance. Looking ahead, the company remains focused on sustaining growth through investment in its portfolio and expanding the global reach of its technologies.
Summary of 2Q24 Performance
Total revenues of $140.2 million in the second quarter of fiscal year 2024 represented a 49% YoY increase. This growth was attributed to favorable weather conditions in Argentina and heightened demand for Bioceres’ technologies. All business segments contributed to revenue growth, with margin expansion noted in Crop Protection and Crop Nutrition categories. Seed and Integrated Products revenues rose due to increased sales of HB4 seed and downstream products. Overall, steady gross margins of 37% were maintained.
The second quarter results build upon the strong performance of the first quarter, affirming double-digit growth rates for revenues, net income, and adjusted EBITDA for the first half of the fiscal year.
