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Bioceres Crop Solutions Reports Fiscal Fourth Quarter and Full-Year 2021 Operational and Financial Results

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4Q21 comparable revenues increased by 39% YoY and 13% for FY21, with LTM Adjusted EBITDA at $48.3m, excluding HB4 contributed goods

HB4 contributed goods total $8.3m for FY21, a 295% increase YoY

Collaboration with GDM expanded to North America for HB4 Soy under shared product development and commercialization effort

ROSARIO, Argentina, September 09, 2021--(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 its financial results for the fiscal fourth quarter and fiscal year ended June 30, 2021. 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 noted otherwise.

FISCAL FOURTH QUARTER FINANCIAL & BUSINESS HIGHLIGHTS

  • Comparable revenues up 39% to $72.4 million in the fourth quarter of fiscal 2021, with adjusted EBITDA up 13% to $16.6 million for the period. Momentum consolidated in 4Q21 confirming a very strong second half to FY21, driven predominantly by micro-beaded fertilizers sales and the reorganization of the Crop Protection business.

  • HB4 Wheat planted in 55,000 hectares with contributed goods totaling $6.4 million. The value of these contributed goods will be recognized as revenues once the realized inventories are sold as seed or grain, but no longer contributed. The current multiplication area represents a 7.8X increase over last year’s effort, including varieties adapted to 75% of Argentina’s addressable market. The number of participating growers increased 8X, with 95% of participants onboarding digitally.

  • HB4 Soy harvest completed in 23,000 hectares. Trait performance aligned with expectations in highly restricted environments, while germplasm drag affected performance in moderate to highly productive environments. Germplasm drag reduced to less than one third in second generation varieties when compared to first generation materials (-11% vs -3%). Experimental third generation materials showed no drag when compared to top performing commercial varieties. Average performance improved by 12% when HB4 Soy was used as second crop to wheat. As third generation materials are fast-tracked to address the broader HB4 Soy opportunity, second generation materials will be positioned in highly restricted environments and as a rotational crop to wheat until being fully replaced.

  • Collaboration on HB4 Soy with Grupo Don Mario (GDM) expanded to North America with focus on the Dakotas, Minnesota and southern Canada, targeting approximately 10 million hectares highly prone to water deficits. The North America agreement contemplates a joint product development and commercialization program, focusing on maturity groups II and below. This agreement complements on-going collaboration efforts with TMG in Latin America, for maturity groups VI and above, which together with Bioceres’ on-going programs provide the full scope of maturities utilized for soy production around the globe. GDM is a global leader on soybean genetics with a growing presence in the United States. TMG is one of Brazil’s leading soybean players.

  • On the regulatory front, Bioceres received approval for HB4 Soy in Canada, while no additional information was requested during the period from Chinese regulators. Regarding HB4 Wheat, regulatory approval requests were filed in Australia, New Zealand, Indonesia and South Africa, while new information was requested towards the end of the quarter by Brazil’s CTNBio. Additional data was produced to address CTNBio’s request and filed subsequent to the quarter´s end.

FULL FISCAL YEAR FINANCIAL & BUSINESS HIGHLIGHTS

  • Comparable revenues up 13% to $197.4 million compared to the year-ago period. Revenue growth across all three segments despite softer performance in second quarter due to climate challenges in key markets. Growth mainly driven by the deployment of the micro-beaded fertilizers expansion plan and 4Q Crop protection reorganizational strategy.

  • Contributed goods for HB4 Program, both HB4 Wheat and HB4 Soy, increased significantly to $8.3 million (approximately $105 per hectare farmed) with an average gross margin of approximately 43%. The value of these contributed goods will be recognized as revenues once the realized inventories are sold as seed or grain, but no longer contributed.

  • Bioceres’ drought tolerant HB4 Wheat was commercially approved in Argentina on October 2020, subject to Brazilian import approval, Argentina’s main wheat importer. This approval represents a historical milestone for the entire global value chain being the first biotech wheat cleared.

  • Bioceres acquired from Arcadia Biosciences Inc. the remaining HB4 Soy ownership interest in Verdeca LLC, targeting to accelerate breeding and go-to market strategies. Complete ownership will also enable Bioceres to capture more of the underlying economic value generated by the technology. As part of the transaction, the Company acquired Verdeca´s vetted soybean library of gene-edited materials for developing new quality and productivity traits, as well as exclusive rights to all Arcadia technologies applicable to this crop. Bioceres has also been granted Latin American rights to Arcadia’s wheat traits and Good Wheat® brand and other GLA non-core assets.

  • Successful completion of the Offer to Exchange of all 24,200,000 outstanding warrants, cost effectively eliminating uncertainty about how these instruments could have affect our future capital structure.

  • $71.5 million total financing obtained during FY21. $43.0 million of funding was added through Rizobacter’s series IV & V corporate bonds, continuing to make considerable progress toward substantially lowering financing costs, extending debt maturities and increasing financial flexibility. $28.5 million equity financing completed through the aforementioned Verdeca’s acquisition and the warrants tender offer transaction.

MANAGEMENT REVIEW

Commenting on the Company’s performance Mr. Federico Trucco, Chief Executive Officer of Bioceres, said, "We are very pleased with the performance of our business during FY21 on multiple fronts. The second half of FY21 was particularly important after the drop we experienced in the second quarter, historically our most important quarter. We are beginning to see the benefits of our new strategies in the crop nutrition and crop protection segments, as we continue to scale and finetune our HB4 roll-out. We expect the momentum of this second half to continue during FY22."

Mr. Enrique Lopez Lecube, Chief Financial Officer of Bioceres, said, "The fourth quarter was a great closing to the year. During fiscal 2021 the base-line business continued to deliver profitable growth, as we also made progress in rolling out HB4. Importantly, a total of $71.5 million of capital were raised through debt and equity instruments that provided financial support to our operations and investment activities. Liquidity in our stock improved significantly over the year, and remains a priority to management as we aim for more ambitious levels of trading activity."

Key Operational Metrics (Figures in millions of US dollars, unless otherwise noted)

Table 1: HB4 Wheat Metrics

Hectares

Growers

Contributed goods1

FY20 7,000

FY21 55,000

686%

FY20 25

FY21 225

800%

FY20 1.4M

FY21 6.4M

303%

______________________________

1Metric will be used to account for and track the underlying economic performance of our HB4 Wheat and HB4 Soy Program ahead of reporting HB4 revenues and related accounting measures. By publishing the level of contributed goods, the investment community can also use this information to better gauge our progress.

Table 2: HB4 Soy Metrics

Hectares

Growers

Contributed goods1

FY20 3,000

FY21 23,000

767%

FY20 15

FY21 148

887%

FY20 0.7M

FY21 1.9M

214%

Table 3: Key Financial Metrics (Figures in millions of US dollars, unless otherwise noted)

4Q21

As Reported

% Change

Revenue by Segment

4Q20

4Q21

Reported

Comparable¹

Crop Protection

26.5

48.1

81%

48%

Seed and Integrated Products

6.0

10.0

66%

(8%)

Crop Nutrition

15.7

24.1

54%

46%

Total Revenue

48.2

82.2

71%

39%

Gross Profit

22.8

32.4

42%

28%

Gross Margin

47.4%

39.4%

(796 bps)

(384 bps)

Adjusted EBITDA

14.7

16.6

13%

Adjusted EBITDA Margin

30.5%

20.2%

(1,032Bps)

  1. Comparable excludes the impact of IAS29 as discussed in more detail on page 19.

Table 4: Key Financial Metrics (Figures in millions of US dollars, unless otherwise noted)

Full Fiscal Year Period

As Reported

% Change

Revenue by Segment

FY20

FY21

Reported

Comparable¹

Crop Protection

94.2

114.1

21%

13%

Seed and Integrated Products

29.5

34.8

18%

5%

Crop Nutrition

49.4

60.6

23%

19%

Total Revenue

173.1

209.5

21%

13%

Gross Profit

79.5

90.6

14%

11%

Gross Margin

45.9%

43.3%

(268 bps)

(102 bps)

Adjusted EBITDA

46.5

48.3

4%

Adjusted EBITDA Margin

26.9%

23.0%

(383 Bps)

Cash & Cash Equivalents

56.0

49.2

Net Debt to LTM EBITDA

1.98x

2.51x

  1. Comparable excludes the impact of IAS29 as discussed in more detail on page 19.

For a full version of Bioceres Fiscal Fourth Quarter and Full Fiscal Year 2021 Earnings Release, click here.

FISCAL FOURTH QUARTER 2021 EARNINGS CONFERENCE CALL

Bioceres Chairman & Chief Executive Officer Federico Trucco, Chief Financial Officer Enrique Lopez Lecube and Head of Investor Relations Máximo Goya 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, September 9, 2021

Time:

8:30 a.m. EDT, 5:30 a.m. PDT

Toll Free dial-in number:

1-844-839-9680

Toll/International dial-in number:

1-647-689-2346

Conference ID:

1936609

Pre-Register conference call:

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 here and via the investor relations section of the company’s website here.

A replay of the call will be available until September 14, 2021 following the conference.

Toll Free Replay Number:

1-800-585-8367

International Replay Number:

1-416-621-4642

Replay ID:

1936609

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 information 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
period ended
06/30/2021

Three-month
period ended
06/30/2020

Fiscal year
ended
06/30/2021

Fiscal year
ended
06/30/2020

Total revenue

Cost of sales

82,211,114

(49,802,175)

48,173,814

(25,347,698)

209,526,178

(118,890,568)

173,092,172

(93,575,588)

Gross profit

% Gross profit

32,408,939

39%

22,826,116

47%

90,635,610

43%

79,516,584

46%

Operating expenses

Share of profit of JV

Other income or expenses, net

(17,917,721)

(214,499)

(625,418)

(11,277,602)

1,310,768

(103,835)

(53,025,090)

997,429

(279,969)

(42,540,298)

2,477,193

(307,499)

Operating profit

13,651,301

12,755,447

38,327,980

39,145,980

Finance result

(3,821,662)

(8,249,014)

(27,462,000)

(32,702,642)

Profit before income tax

9,829,639

4,506,433

10,865,980

6,443,338

Income tax

(8,041,797)

(1,368,437)

(14,273,960)

(2,206,710)

Profit/ (Loss) for the period

1,787,842

3,137,996

(3,407,980)

4,236,628

Other comprehensive profit / (loss)

4,865,362

(2,058,672)

7,572,426

(9,682,116)

Total comprehensive Profit / (Loss)

6,653,204

1,079,324

4,164,446

(5,445,488)

Profit / (loss) for the period attributable to:

Equity holders of the parent

Non-controlling interests

901,804

886,038

2,215,404

922,592

(6,602,045)

3,194,065

3,359,175

877,453

1,787,842

3,137,996

(3,407,980)

4,236,628

Total comprehensive income / (loss) attributable to:

Equity holders of the parent

Non-controlling interests

4,724,172

1,929,032

375,178

704,146

(554,774)

4,719,220

(5,222,572)

(222,916)

6,653,204

1,079,324

4,164,446

(5,445,488)

Unaudited Consolidated Statement of Financial Position (Figures in US dollars)

ASSETS

06/30/2021

06/30/2020

CURRENT ASSETS

Cash and cash equivalents

35,873,746

42,522,861

Other financial assets

13,334,452

13,436,393

Trade receivables

83,587,511

73,546,633

Other receivables

12,181,943

4,770,672

Income and minimum presumed income taxes recoverable

990,881

112,220

Inventories

61,037,552

29,338,548

Biological assets

2,315,838

965,728

Total current assets

209,321,923

164,693,055

NON-CURRENT ASSETS

Other financial assets

1,062,453

322,703

Trade receivables

135,739

-

Other receivables

2,403,608

1,703,573

Income and minimum presumed income taxes recoverable

12,589

6,029

Deferred tax assets

3,125,841

2,693,195

Investments in joint ventures and associates

30,657,173

24,652,792

Property, plant and equipment

47,954,596

41,515,106

Intangible assets

67,342,362

35,333,464

Goodwill

26,684,090

25,526,855

Right-of-use leased asset

1,327,660

1,114,597

Total non-current assets

180,706,111

132,868,314

Total assets

390,028,034

297,561,369

LIABILITIES

06/30/2021

06/30/2020

CURRENT LIABILITIES

Trade and other payables

72,803,496

57,289,862

Borrowings

73,832,610

63,721,735

Employee benefits and social security

4,680,078

4,510,592

Deferred revenue and advances from customers

6,277,313

2,865,437

Income tax payable

7,194,761

1,556,715

Government grants

784

1,270

Lease liabilities

750,308

665,098

Total current liabilities

165,539,350

130,610,709

NON-CURRENT LIABILITIES

Borrowings

47,988,461

41,226,610

Employee benefits and social security

-

534,038

Government grants

-

2,335

Investments in joint ventures and associates

1,278,250

1,548,829

Deferred tax liabilities

25,823,281

16,858,125

Provisions

449,847

417,396

Consideration for acquisitions

11,828,487

-

Warrants

-

1,686,643

Convertible notes

48,664,012

43,029,834

Lease liability

390,409

444,714

Total non-current liabilities

136,422,747

106,201,178

Total liabilities

301,962,097

236,811,887

EQUITY

Equity attributable to owners of the parent

65,629,762

46,179,395

Non-controlling interests

22,436,175

14,570,087

Total equity

88,065,937

60,749,482

Total equity and liabilities

390,028,034

297,561,369

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909005440/en/

Contacts

Investor Relations Contact
Chris Tyson
Executive Vice President
MZ Group – MZ North America
(949) 491-8235
BIOX@mzgroup.us
www.mzgroup.us

Bioceres Crop Solutions
Máximo Goya, Head of Investor Relations
+54-341-4861100
maximo.goya@biocerescrops.com