Drought-Tolerant HB4® Wheat Out-Yields
Commercial Materials by 42% Across All Locations in Targeted
Environment
All Participating Growers to Repeat or Increase
Adoption in Upcoming Season
Bioceres Crop Solutions Corp. (“Bioceres”) (NYSE
American: 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 second quarter ended December 31, 2020.
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.
Financial & Operational Highlights
- Received regulatory approval for the Company’s proprietary
drought-tolerant HB4 wheat from the Ministry of Agriculture in
Argentina, Latin America´s largest wheat producing country.
Bioceres’ HB4 wheat is the world’s first and only drought-tolerant
wheat to receive regulatory approval.
- Achieved HB4 wheat seed inventory in line to meet prior
guidance, positioning the Company to have between 60,000 and
130,000 hectares of HB4 wheat planted during the next crop
season.
- HB4 wheat out-yielded commercial varieties commonly used by
growers by 13.5% on average across all environments and locations.
In lower yielding environments, representing one third of all
hectares harvested, the average yield improvement was 42% – this is
more than twice the performance estimated using historical
data.
- Drought-tolerant HB4 soybean planted on approximately 23,000
hectares. Number of participating growers increased over 867% to
148, which demonstrates strong end-user appetite.
- Post-acquisition of full ownership in Verdeca, entered
partnership with Nature Source Improved Plants (NSIP) to establish
an advanced HB4 soybean breeding program targeting the U.S., which
can also be leveraged across other key international markets.
Bioceres will combine its field data with NSIP’s computational
optimization technologies, unlocking the power of artificial
intelligence to maximize selection gains and reduce time to
market.
- Due to severe droughts in certain regions of South America,
revenues in the second quarter of fiscal 2021 were $47.7 million,
compared to revenues of $57.0 million in the same year-ago quarter.
Total comparable revenues for trailing twelve months increased 8%
to $167.8 million, compared to $155.5 million in the same year-ago
period.
- Contributed goods for HB4 Program increased significantly to
$3.6 million (approximately $120 per hectare farmed) with gross
margin of approximately 60%. 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.
MANAGEMENT COMMENTARY
Mr. Federico Trucco, Bioceres Chairman & Chief Executive
Officer, commented: “As a technology company, our value proposition
is centered on developing highly differentiated solutions that
create economic incentives, in the form of improved yields,
enhanced management practices, and other efficiencies, to further
decarbonize production processes while regenerating agricultural
ecosystems. With this central purpose in mind, we have been
investing over the last 18 years in a technology called HB4, a
solution that evolved from a drought-tolerant seed to a
double-cropping production system, being validated today in what we
call our HB4 Program.
“During the quarter we achieved the first approval ever for this
technology in wheat, the perfect complement to HB4 soybean in our
system’s approach. We discussed the implications of this approval
in our September earnings call. Today, we are presenting the data
obtained from our first pre-commercial production season with
independent growers, reporting a yield performance that more than
doubles our historical data in the low-end productivity
environments. We have also achieved the seed volume and quality
that will allow us to increase by up to 20-times the number of
hectares in the next season. With a significant increase in growers
and hectares for HB4 soybean as well, we remain in the early
innings of demonstrating the significant economic and environmental
benefits our HB4 system can provide for growers and consumers,
alike.
“As we collect more data through our digital platform and work
closely with partners, such as NSIP, we stand in a unique position
to not only develop HB4 seed varieties that are ideally suited for
each geography, but also to provide valuable carbon emission and
water utilization data for end-consumers concerned about
agricultural sustainability,” concluded Trucco.
Mr. Enrique Lopez Lecube, Chief Financial Officer of Bioceres,
said: “Our fiscal second quarter was characterized by dry weather
conditions in some regions of key South American markets. Despite
the climatic headwinds during the quarter, we were able to maintain
top line growth and preserve profitability on a trailing
twelve-months basis, proving the resiliency of our business. We
also significantly lowered financing costs as a result of our
continuous initiatives to gain financial flexibility through debt
profile and maturities improvement, an area on which we intend to
continue identifying opportunities for Bioceres. The solid cash
position we maintain allowed us to support working capital needs
and complete significant transactions, such as the acquisition of
Verdeca’s 50% stake – which gives us full ownership of the HB4
soybean technology – and with the acquisition behind us, we are now
focused on fast-tracking our HB4 inventory build as we prepare for
a broad commercial launch,” concluded Lopez Lecube.
Key Operational Metrics (Figures in millions of US
dollars, unless otherwise noted)
Table 1: HB4 Wheat Metrics
Hectares
Growers
Contributed goods1
2Q20 ~400
2Q20 4
2Q20 0.0M
2Q21 ~7,000
2Q21 25
2Q21 1.4M
∆ 1,750%
∆ 525%
∆ N/A
Table 2: HB4 Soy Metrics
Hectares
Growers
Contributed goods1
2Q20 ~3.000
2Q20 15
2Q20 0.7M
2Q21 ~23,000
2Q21 148
2Q21 2.2M
∆ 767%
∆ 887%
∆ 214%
1The identity preserved HB4 Program to
produce EcoSeeds utilizes service contracts with growers who are
committed to preserving the identity of the HB4 crop under a full
seed production offtake agreement, which includes best
environmental farming practices, such as no-till agriculture. Under
these agreements, Bioceres contributes EcoSeed and the other goods
to growers for a pre-agreed price (based on prevailing market
prices), which are deducted from the service fees paid to growers
at the time of harvest for the seed multiplication services
provided. This metric 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 3: Key Financial Metrics (Figures in millions of US
dollars, unless otherwise noted)
2Q21
As Reported
% Change
Revenue by Segment
2Q20
2Q21
Reported
Comparable1
Crop Protection
33.1
27.1
(18%)
(12%)
Seed and Integrated Products
13.9
12.5
(10%)
(5%)
Crop Nutrition
15.9
9.2
(42%)
(37%)
Total Revenue
63.0
48.7
(23%)
(17%)
Gross Profit
30.0
23.7
(21%)
(15%)
Gross Margin
47.7%
48.6%
88 Bps
69 Bps
Adjusted EBITDA
21.1
14.2
(33%)
Adjusted EBITDA Margin
33.5%
29.1%
(442 Bps)
1Comparable excludes the impact
of IAS29 as discussed in more detail on page 18.
Table 4: Key Financial Metrics (Figures in millions of US
dollars, unless otherwise noted)
1H21
As Reported
% Change
Revenue by Segment
1H20
1H21
Reported
Comparable1
Crop Protection
51.1
48.7
(5%)
(3%)
Seed and Integrated Products
19.4
21.2
9%
14%
Crop Nutrition
28.7
21.2
(26%)
(26%)
Total Revenue
99.2
91.1
(8%)
(7%)
Gross Profit
45.9
42.9
(7%)
(5%)
Gross Margin
46.3%
47.1%
82 bps
90 bps
Adjusted EBITDA
29.2
24.7
(15%)
Adjusted EBITDA Margin
29.5%
27.1%
(232 bps)
Cash & Cash Equivalents
15.6
35.9
130%
Net Debt to LTM EBITDA
2.31x
3.06x
LTM EBITDA
41.3
42.0
2%
1Comparable excludes the impact
of IAS29 as discussed in more detail on page 18.
For a full version of Bioceres
Fiscal Second Quarter 2021 Earnings Release, click here.
Fiscal Second 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, February 11, 2021
Time:
8:30 a.m. EST, 5:30 a.m. PST
Toll Free dial-in number:
1-888-869-1189
Toll/International dial-in number:
1-706-643-5902
Conference ID:
2687499
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 February 16, 2021
following the conference.
Toll Free Replay Number:
1-800-585-8367
International Replay Number:
1-416-621-4642
Replay ID:
2687499
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NYSE American: BIOX) is a fully
integrated global provider of crop productivity technologies
designed to enable the transition of agriculture towards carbon
neutrality. The Company's 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, click
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 millions of US dollars)
Three-month
period ended
12/31/2020
Three-month
period ended
12/31/2019
Six-month
period ended
12/31/2020
Six-month
period ended
12/31/2019
Total revenue
48.7
63.0
91.1
99.2
Cost of sales
(25.1)
(33.0)
(48.2)
(53.3)
Gross profit
23.7
30.0
42.9
45.9
% Gross profit
49%
48%
47%
46%
Operating expenses
(12.3)
(11.4)
(23.5)
(21.3)
Share of profit of JV
0.1
1.2
0.3
1.3
Other income or expenses, net
0.0
(0.3)
0.0
(0.2)
Operating profit
11.4
19.6
19.8
25.7
Finance result
(5.8)
(3.5)
(18.5)
(19.9)
Profit / (loss) before income
tax
5.6
16.1
1.3
5.9
Income tax
(3.8)
(3.4)
(5.8)
(1.2)
Profit / (loss) for the period
1.8
12.6
(4.6)
4.7
Other comprehensive income / (loss)
0.7
5.8
0.8
(7.6)
Total comprehensive profit /
(loss)
2.5
18.5
(3.8)
(2.9)
Profit / (loss) for the period
attributable to:
Equity holders of the parent
0.6
11.3
(6.3)
4.3
Non-controlling interests
1.2
1.3
1.8
0.4
1.8
12.6
(4.6)
4.7
Total comprehensive profit / (loss)
attributable to:
Equity holders of the parent
1.2
16.3
(5.8)
(2.4)
Non-controlling interests
1.2
2.2
2.0
(0.5)
2.5
18.5
(3.8)
(2.9)
Unaudited Consolidated Statement of
Financial Position
(Figures in millions of US dollars)
ASSETS
12/31/2020
06/30/2020
CURRENT ASSETS
Cash and cash equivalents
19.1
27.2
Other financial assets
16.8
28.8
Trade receivables
84.7
73.5
Other receivables
7.8
4.8
Income and minimum presumed income taxes
recoverable
0.2
0.1
Inventories
41.7
29.3
Biological assets
10.6
1.0
Other assets
5.0
-
Total current assets
185.7
164.7
NON-CURRENT ASSETS
Other financial assets
0.5
0.3
Other receivables
2.2
1.7
Income and minimum presumed income taxes
recoverable
0.0
0.0
Deferred tax assets
2.8
2.7
Investments in joint ventures and
associates
25.1
24.7
Property, plant and equipment
41.9
41.5
Investment properties
2.5
-
Intangible assets
57.8
35.3
Goodwill
25.6
25.5
Right-of-use leased asset
1.1
1.1
Total non-current assets
159.5
132.9
Total assets
345.2
297.6
LIABILITIES
12/31/2020
06/30/2020
CURRENT LIABILITIES
Trade and other payables
63.3
57.3
Borrowings
89.5
63.7
Employee benefits and social security
4.1
4.5
Deferred revenue and advances from
customers
1.2
2.9
Income and minimum presumed income taxes
payable
6.5
1.6
Government grants
0.0
0.0
Lease liability
0.5
0.7
Total current liabilities
165.2
130.6
NON-CURRENT LIABILITIES
Trade and other payables
0.8
0.5
Borrowings
29.3
41.2
Employee benefits and social security
-
0.5
Government grants
-
0.0
Investments in joint ventures and
associates
1.6
1.5
Deferred tax liabilities
16.2
16.9
Provisions
0.4
0.4
Financed payment for acquisition of
assets
7.6
-
Warrants
-
1.7
Convertible notes
45.8
43.0
Lease liability
0.4
0.4
Total non-current liabilities
102.2
106.2
Total liabilities
267.3
236.8
EQUITY
Equity attributable to owners of the
parent
61.3
46.2
Non-controlling interests
16.6
14.6
Total equity
77.9
60.7
Total equity and liabilities
345.2
297.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210211005344/en/
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
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