Bioceres Crop Solutions Corp. (BIOX) Reports Q1 Revenues of $36.3M

Bioceres Crop Solutions Corp. (NYSE: BIOX) reported Q1 revenue for the quarter came in at $36.3 million, versus $29.61 million reported last year.

1Q20 Business and Financial Highlights

• Revenue growth of 22% year over year (YoY) to $36.3 million and 11% on a comparable basis, as the Company continues to ramp up existing capacity in Argentina, expand its footprint of biological products to other countries and increase adjuvants sales in Brazil.
• Installed capacity utilization rate for the twelve-month period ended September 30, 2019 at the micro-beaded fertilizer plant was 25%, up from 12% for the twelve-month period ending September 30, 2018.
• HB4 soybean seed inventory began to ramp-up. First 100 hectares (250 acres) harvested in the U.S., which will allow planting approximately 3.000 hectares (7,500 acres) in the upcoming summer crops season in Argentina.
• HB4 wheat seed inventory began to ramp-up. First 400 hectares (1.000 acres) planted during the Fall in the southern hemisphere are expected to be harvested during Fiscal 2Q20.
• Subsequent to quarter end, issued $15 million note securing working capital financing to support ramp-up of HB4 planting while also extending debt maturity.

Commenting on the results for the quarter, Mr. Federico Trucco, CEO of Bioceres, said “We are pleased that the strong growth in FY19 continued throughout the first quarter of 2020. We are especially pleased with the performance of our international business, which accounted for approximately one third of total revenues in the period. Despite generally tough financial conditions in Argentina, we were able to secure additional financing, which will support the ramp-up of our HB4 seed inventories both in soybean and wheat. We are getting ready to harvest the first commercial varieties from hundreds of hectares, which will allow us to plant thousands of hectares in the 2019-2020 crop cycle. As we ramp-up HB4 seed inventories, we continue to demonstrate the resiliency of HB4 crops, evidenced in this period by the significant yield performance of EcoWheat seeds relative to conventional fields in what has been a particularly dry winter season.”

Mr. Enrique Lopez Lecube, CFO of Bioceres, said “Despite delayed purchases in Argentina due to macro-economic uncertainty and unfavourable sowing conditions in some regions of the country, we continued to generate strong financial results in the first quarter. Comparable revenue continued to grow at double digits, driven by sustained ramp-up of our micro-beaded fertilizer facility, and overall solid growth in Brazil. These strong growth drivers more than offset the impact of delayed purchases in Argentina, which we view as a timing issue that should normalize over the course of the year. EBITDA declined modestly year over year, in part due to aforementioned timing of purchase decisions and in part due to temporary margin pressures in Argentina brought on by a misalignment between changes in FX and inflation. Despite these headwinds, the commercial teams did a fantastic job managing working capital and generating cash, reducing net leverage to 2.14, down from 4.07x a year ago”

For earnings history and earnings-related data on Bioceres Crop Solutions Corp. (BIOX) click here.

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