Bioceres Crop Solutions, a pioneer in developing and implementing productivity solutions aimed at revitalizing agricultural ecosystems and enhancing crop resilience to climate fluctuations, has disclosed its financial performance for the fiscal third quarter ending on March 31, 2024. All financial figures are denoted in U.S. dollars and conform to International Financial Reporting Standards. Comparative data in this report pertains to year-over-year (YoY) analysis, unless otherwise specified.
Financial & Operational Highlights
- Total revenues for the third quarter of 2024 reached $84.0 million, in contrast to $93.6 million reported for the corresponding period last year. Despite operational growth, this quarter’s figures were impacted by a $15.7 million compensatory payment from Syngenta, a notable decrease from the $32.9 million recorded in the third quarter of 2023.
- Operating profit amounted to $13.2 million, with GAAP net income standing at $9.8 million.
- Adjusted EBITDA for the quarter totaled $21.1 million, compared to $35.8 million in the prior year quarter. The decline is attributed to the reduced compensatory payment accrual, albeit mitigated by improved operational performance.
- Regulatory clearance in Brazil has expanded Bioceres’ biologicals portfolio, introducing bio-insecticidal and bio-nematicidal solutions to this market.
- HB4 Soy varieties demonstrated promising performance at the farmer level in Brazil, exhibiting an average yield increase of 7% compared to non-HB4 varieties.
Management Insights
Federico Trucco, Chief Executive Officer of Bioceres, expressed overall contentment with the third quarter results, acknowledging some delayed sales in the bio-nutrition segment in Argentina and Brazil. He anticipates realizing these sales in the final fiscal quarter. Trucco noted the expected growth disparity between this quarter and the previous year due to the Syngenta distribution agreement, whose contribution is now evenly spread throughout the year. He highlighted positive developments in Brazil, particularly the regulatory approval for inactivated Burkholderia bio-control solutions, anticipating immediate opportunities in bio-insecticidal markets.
Enrique Lopez Lecube, Chief Financial Officer of Bioceres, addressed the challenging comparison with the previous year’s third quarter, marked by substantial sales driven by the Syngenta agreement. Despite slower market dynamics in South America and suboptimal crop protection conditions in the US and Brazil, the company managed to partially offset the year-over-year difference from the Syngenta agreement. Lecube expressed confidence in achieving annual goals, buoyed by normalized crop nutrition market conditions.
Conclusion
In summary, Bioceres Crop Solutions reported total revenues of $84.0 million for the third quarter of 2024, reflecting a decline compared to the previous year primarily due to reduced accrual of the compensatory payment from Syngenta. However, excluding these accruals, the business demonstrated modest revenue growth. Gross profit declined, predominantly attributed to the lower compensatory payment accrual, but underlying business performance showed improvement. GAAP net income and adjusted EBITDA also decreased, primarily due to the impact of the compensatory payment reduction. Bioceres remains committed to its mission of developing sustainable agricultural solutions, leveraging its biotech platform and digital innovations to support growers and enhance agricultural productivity in an environmentally friendly manner.
