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Bioceres Crop Solutions Reports Fiscal First Quarter 2022 Financial and Operational Results

·10 min read

1Q22 comparable revenues up 54% YoY, and LTM Adjusted EBITDA reached $50.2m

HB4 inventory ramp-up advancing as projected – no additional information requested by Brazilian or Chinese regulatory authorities

ROSARIO, Argentina, November 10, 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 financial results for the first quarter 2022, ended September 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 FIRST QUARTER FINANCIAL & BUSINESS HIGHLIGHTS

  • Total Comparable Revenues increased 54% to $64.8 million. Top line growth comes from the solid momentum built throughout the last three quarters, with revenue growth accelerating up from +35-40% level in first half of the calendar year. Growth driven primarily by new commercial strategies in Crop Nutrition and Protection segments, new products, and generally positive sector dynamics in Latin America.

  • LTM Adjusted EBITDA reached $50.2 million, confirming upward trend compared to the year-ago metric. Baseline business supports HB4 roll-out with LTM Adjusted EBITDA fully accounting for $3.4 million in pre-operational expenses related to HB4 Program.

  • Momentum in micro-beaded fertilizer sales continues for the third consecutive quarter, with Crop Nutrition segment accounting for 44% of the growth observed for the period, with installed capacity reaching 48%, up 60% YoY.

  • Crop Protection segment benefits from full effects of sales-force/channel re-organization, with this segment explaining close to 55% of the growth for the quarter.

  • HB4 inventory ramp-up processes moving forward as discussed in previous Earnings Reports, with early season HB4 Soy planting completed and late season plantings, which represent the majority of the targeted hectares, to be initiated in the coming days. HB4 Wheat harvest already began and currently is at about 10% progress. On the regulatory front, no additional information was requested by Chinese regulators and Brazil’s CTNBio regarding HB4 Soy and HB4 Wheat, respectively.

  • Ecotoxicological scoring added to ESG Report on HB4 inventories. Data gathered from crop maintenance practices and exposure to different active ingredients, translated into ecotoxicological scores to track reduction in chemical footprint on top of existing carbon and water footprint measurements. Current reporting level sets a new industry standard and highlights the value of identity preserved production systems, digital technology, and data science.

  • Bioceres’ subsidiary Rizobacter Argentina S.A.completed a $16.1 million public offering of series VI corporate bonds in the Argentine capital market. The capital raised adds to the financial strength required to support working capital needs in the coming quarters.

MANAGEMENT REVIEW

Mr. Federico Trucco, Chief Executive Officer of Bioceres, commenting on the Company’s performance, said, "We are thrilled to report the first fiscal quarter´s financial performance and show that the positive momentum observed in the last two quarters further accelerated in the reported period. I would like to congratulate our operations team for effectively implementing the new strategies in the Crop Protection and nutrition segments, resulting in today’s growth. We expect to see similar growth in the seeds and integrated products segment in the upcoming quarters, primarily as HB4 inventories are no longer contributed but sold as seed or grain. We are also taking this opportunity to announce the addition of ecotoxicological indexes to our ESG Reporting process for HB4 inventories, which we believe will set a new industry standard. Understanding the environmental impact of exposure to different active ingredients, the carbon intensity of production processes, and the water footprint of an agricultural ecosystem, are key elements in designing and promoting 21st century regenerative agriculture."

Mr. Enrique Lopez Lecube, Chief Financial Officer of Bioceres, said, "I am very pleased with the performance of our business throughout the last couple of quarters. This is the result of a well-considered move implemented to reignite growth in two of our three main business segments. The 2H21 growth momentum in the Crop Protection and nutrition segments was boosted this last quarter, as we were able to timely capture some macro tailwinds. The high commodity price environment and the supply shortage of nitrogen-based fertilizers, combined with increased sales force focus, delivered outstanding results in our micro-beaded fertilizer line. Reaching $50 million dollars in LTM Adjusted EBITDA, even when this metric includes pre-operational expenses related to HB4 as well as the transitory effect of a softer performance in the second quarter of the previous fiscal year, highlights the resilience of our baseline business and gives us great confidence going forward."

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

HB4 Wheat and HB4 Soy Metrics
Operational metrics will be updated in the upcoming quarter, 2Q22, at the end of HB4 wheat harvest and HB4 soy planting season.

Table 1: Key Financial Metrics (Figures in millions of US dollars, unless otherwise noted)

1Q22

As Reported

% Change

Revenue by Segment

1Q21

1Q22

Reported

Comparable1

Crop Protection

21.6

35.2

62%

58%

Seed and Integrated Products

8.7

9.0

3%

1%

Crop Nutrition

12.0

22.8

89%

83%

Total Revenue

42.4

66.9

58%

54%

Gross Profit

19.2

29.0

51%

39%

Gross Margin

45.4%

43.4%

(204 bps)

(442 bps)

Adjusted EBITDA

10.5

12.4

18%

Adjusted EBITDA Margin

24.9%

18.6%

(632 Bps)

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

For a full version of Bioceres Fiscal First Quarter 2022 Earnings Release, click here.

FISCAL FIRST 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 dos Santos Rocha 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:

Wednesday, November 10, 2021

Time:

8:30 a.m. ET, 5:30 a.m. PT

Toll Free dial-in number:

1-844-200-6205

Toll/International dial-in number:

1-929-526-1599

Conference ID:

756912

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

A replay of the call will be available through November 15, 2021 following the conference.

Toll Free Replay Number:

1-866-813-9403

International Replay Number:

+44 204 525 0658

Replay ID:

575325

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
09/30/2021

Three-month period ended
09/30/2020

Total revenue

66,906,245

42,355,261

Cost of sales

(37,882,452)

(23,112,642)

Gross profit

29,023,793

19,242,619

% Gross profit

43%

45%

Operating expenses

(17,601,661)

(11,116,455)

Share of profit of JV

(222,236)

239,712

Other income or expenses, net

(1,146,617)

5,190

Operating profit

10,053,279

8,371,066

Finance result

(5,179,668)

(12,735,462)

Profit before income tax

4,873,611

(4,364,396)

Income tax

(2,608,394)

(2,005,866)

Profit/ (Loss) for the period

2,265,217

(6,370,262)

Other comprehensive profit / (loss)

5,728,095

136,131

Total comprehensive Profit / (Loss)

7,993,312

(6,234,131)

Profit / (loss) for the period attributable to:

Equity holders of the parent

875,181

(6,971,558)

Non-controlling interests

1,390,036

601,296

2,265,217

(6,370,262)

Total comprehensive income / (loss) attributable to:

Equity holders of the parent

5,722,061

(7,033,867)

Non-controlling interests

2,271,251

799,736

7,993,312

(6,234,131)

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

ASSETS

09/30/2021

06/30/2021

CURRENT ASSETS

Cash and cash equivalents

36,631,549

36,046,113

Other financial assets

5,283,685

11,161,398

Trade receivables

94,809,859

88,784,172

Other receivables

15,527,400

11,153,705

Income and minimum presumed income taxes recoverable

969,921

990,881

Inventories

72,551,919

61,037,551

Biological assets

37,879,003

2,315,838

Total current assets

263,653,336

211,489,658

NON-CURRENT ASSETS

Other financial assets

935,851

1,097,462

Trade receivables

128,575

135,739

Other receivables

1,644,765

2,543,142

Income and minimum presumed income taxes recoverable

14,867

12,589

Deferred tax assets

3,802,891

3,278,370

Investments in joint ventures and associates

31,876,966

30,657,173

Property, plant and equipment

48,078,743

47,954,596

Intangible assets

70,287,443

67,342,362

Goodwill

30,468,839

28,751,206

Right-of-use leased asset

1,407,154

1,327,660

Total non-current assets

188,646,094

183,100,299

Total assets

452,299,430

394,589,957

LIABILITIES

09/30/2021

06/30/2021

CURRENT LIABILITIES

Trade and other payables

113,963,318

72,091,408

Borrowings

66,655,578

76,785,857

Employee benefits and social security

5,214,001

4,680,078

Deferred revenue and advances from customers

5,302,738

6,277,313

Income tax payable

10,520,678

7,452,891

Government grants

306

-

Lease liabilities

718,966

750,308

Total current liabilities

202,375,585

168,037,855

NON-CURRENT LIABILITIES

Borrowings

62,644,168

47,988,468

Government grants

-

784

Investments in joint ventures and associates

1,276,639

1,278,250

Deferred tax liabilities

24,965,998

25,699,495

Provisions

438,816

449,847

Consideration for acquisitions

12,075,576

11,790,533

Convertible notes

50,190,617

48,664,012

Lease liability

490,101

390,409

Total non-current liabilities

152,081,915

136,261,798

Total liabilities

354,457,500

304,299,653

EQUITY

Equity attributable to owners of the parent

73,748,046

67,743,242

Non-controlling interests

24,093,884

22,547,062

Total equity

97,841,930

90,290,304

Total equity and liabilities

452,299,430

394,589,957

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110005593/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
Rodrigo Krause dos Santos Rocha
Head of Investor Relations
investorrelations@biocerescrops.com