ROSARIO, Argentina--(BUSINESS WIRE)--Bioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change, announced financial results for the fiscal second quarter ended December 31, 2024. 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 otherwise noted.
Financial & Business Highlights
- Revenues in 2Q25 totaled $106.7 million, down from a quarterly record-high of $140.2 million in 2Q24, as tight farm economics and elevated channel inventories in Argentina — a decisive market for the quarter — significantly contracted the overall market for crop protection and specialty fertilizers. This led to a year-over-year reduction in sales of non-core CP products and micro-beaded fertilizers, roughly in line with the market decline.
- Operating profit was $7.9 million and net income was $0.6 million. Adjusted EBITDA for the quarter was $15.4 million, mainly driven by top-line and gross profit performance from Argentina.
-
New strategy defined for seed business, exiting breeding and seed production activities to focus on trait development and key partnerships for market access:
- Alliance with GDM to use Verdeca’s patented platform to develop and market next generation varieties that combine superior agronomic performance with biotech traits.
- Trigall Genetics to focus on HB4 trait development in wheat and transfer breeding programs to Florimond Desprez. Rights to HB4 technology outside of Latin America are now fully controlled by Bioceres.
- Milen Marinov appointed Chief Commercial Officer (CCO).
Management Review
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “Calendar year 2024 has been a reminder that growth, at least in the agriculture industry, is seldom linear. The conditions in Argentina, which remains our primary market, have proven increasingly difficult. This has affected the performance of our fiscal first half, a period during which we are more exposed to sales in the Southern Hemisphere. While we have maintained or gained market share in all our key product segments, we believe this macro environment provides unique opportunities to unlock the full commercial potential of our differentiated portfolio of products and technologies. As a result, we are implementing two significant strategic changes.
First, we are appointing Milen Marinov, who previously served as our EVP of Commercial for North America, as our new Chief Commercial Officer. Milen’s past experience in key commercial development roles in Valagro and then Syngenta, as well as his track record with us since joining the Profarm team last year, positions him uniquely to help us streamline our commercial operations, accelerate the onboarding of new commercial partners, and better prioritize, diversify and synchronize our portfolio opportunities for profitable growth.
Second, in the seed segment, we are sharpening our focus on what we do best: sourcing cutting-edge science and cost-effectively developing patented seed traits until commercial approval. We have made the strategic decision to exit breeding, seed production and seed sales and will instead partner with industry leaders who are better structured for these activities. As a first step in this new strategy, we are announcing a strategic agreement with GDM for the development of new soybean solutions, with exclusive rights outside the drought tolerance space. Additionally, we are redefining the scope of our wheat joint venture with Florimond Desprez, exiting conventional breeding operations in Argentina and Australia, while directly licensing our HB4 wheat technology to partners outside of Latin America. We believe these initiatives will enable us to scale our current and future seed technologies more rapidly and efficiently.”
Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: “While our fiscal first half results reflect the challenges posed by the Argentine market, particularly the decline in farmer economics driven by lower commodity prices and weak yield forecasts, we view this setback as temporary.
Argentine farmers faced significant pressure on their per-hectare income from summer crops due to these external factors, which was partially passed on to costs in the form of reduced use of fertilizers and crop protection products. This, in the context of a well-supplied ag-inputs market from aggressive purchasing in the prior season, resulted into price pressure and reduced spending on high-value technologies like ours. However, we are encouraged that we maintained our market share in key product families, despite the overall Argentine market contraction.
We remain optimistic about our long-term prospects, driven by our commitment to developing and commercially scaling up innovative technologies that create value for end-users. We are also cognizant that successfully navigating this period of market volatility requires a strong focus on capital allocation, driving cost efficiencies to safeguard profitability, and transitioning towards a more asset-light business model. The strategic repositioning of our seed business and tighter inventory management are initial steps in this direction.
In the near future, we will continue to explore additional opportunities to enhance profitability and cash flows, ensuring we’re well-positioned to capitalize on the groundwork already made to support our global expansion as well as to benefit from the recovery of the Argentine market.”
Key Financial Metrics
|
Table 1: 2Q25 & 1H25 Key Financial Metrics |
||||||
(In millions of U.S. dollars) |
2Q24 |
2Q25 |
%CHANGE |
1H24 |
1H25 |
%CHANGE |
| Revenue by Segment | ||||||
| Crop Protection | 71.2 | 55.2 | (23%) | 127.2 | 101.1 | (20%) |
| Seed and Integrated Products | 32.2 | 23.3 | (28%) | 54.5 | 43.9 | (20%) |
| Crop Nutrition | 36.8 | 28.2 | (23%) | 75.1 | 55.0 | (27%) |
| Total Revenue | 140.2 | 106.7 | (24%) | 256.8 | 200.0 | (22%) |
| Gross Profit | 51.5 | 45.1 | (12%) | 96.5 | 82.6 | (14%) |
| Gross Margin | 37% | 42% | 557 bps | 38% | 41% | 375 bps |
|
Unaudited Consolidated Statement of Comprehensive Income |
||
| Three-month period ended 12/31/2024 | Three-month period ended 12/31/2023 | |
| Revenues from contracts with customers | 106.8 | 140.3 |
| Initial recognition and changes in the fair value of biological assets at the point of harvest | (0.1) | (0.1) |
| Cost of sales | (61.6) | (88.7) |
| Gross profit | 45.1 | 51.5 |
| % Gross profit | 42% | 37% |
| Operating expenses | (37.4) | (34.8) |
| Share of profit of JV | 0.4 | 2.1 |
| Change in net realizable value of agricultural products | (0.8) | (0.7) |
| Other income or expenses, net | 0.5 | (1.2) |
| Operating profit | 7.9 | 16.8 |
| Financial result | (7.5) | (7.3) |
| Profit/(loss) before income tax | 0.4 | 9.6 |
| Income tax | 0.2 | (8.3) |
| Profit/(loss) for the period | 0.6 | 1.2 |
| Other comprehensive loss | (0.2) | 0.5 |
| Total comprehensive profit/(loss) | 0.4 | 1.7 |
| Profit/(loss) for the period attributable to: | ||
| Equity holders of the parent | 0.1 | 0.1 |
| Non-controlling interests | 0.5 | 1.1 |
| Total comprehensive profit/(loss) attributable to: | ||
| Equity holders of the parent | 0.2 | 0.5 |
| Non-controlling interests | 0.2 | 1.2 |
| Total comprehensive profit/(loss) attributable to: | 0.4 | 1.7 |
| Weighted average number of shares | ||
| Basic | 62.8 | |
| Diluted | 63.2 | |
|
Unaudited Consolidated Statement of Financial Position |
||
| ASSETS | 12/31/2024 | 06/30/2024 |
| CURRENT ASSETS | ||
| Cash and cash equivalents | 29.2 | 44.5 |
| Other financial assets | 2.0 | 11.7 |
| Trade receivables | 227.7 | 207.3 |
| Other receivables | 17.2 | 18.3 |
| Recoverable income taxes | 1.5 | 0.7 |
| Inventories | 101.8 | 125.9 |
| Biological assets | 4.4 | 0.3 |
| Total current assets | 383.7 | 408.7 |
| NON-CURRENT ASSETS | ||
| Other financial assets | 0.8 | 0.6 |
| Other receivables | 18.2 | 18.0 |
| Recoverable income taxes | 0.0 | 0.0 |
| Deferred tax assets | 12.1 | 9.7 |
| Investments in joint ventures and associates | 40.0 | 39.8 |
| Investment properties | 0.6 | 0.6 |
| Property, plant and equipment | 74.9 | 74.6 |
| Intangible assets | 176.3 | 176.9 |
| Goodwill | 112.2 | 112.2 |
| Right of use asset | 16.3 | 11.6 |
| Total non-current assets | 451.4 | 443.9 |
| Total assets | 835.2 | 852.5 |
| LIABILITIES | ||
| CURRENT LIABILITIES | ||
| Trade and other payables | 144.0 | 168.7 |
| Borrowings | 119.2 | 136.7 |
| Employee benefits and social security | 8.2 | 7.3 |
| Deferred revenue and advances from customers | 2.9 | 3.9 |
| Income tax payable | 5.9 | 4.8 |
| Consideration for acquisition | 3.2 | 4.6 |
| Lease liabilities | 5.3 | 3.1 |
| Total current liabilities | 288.8 | 329.3 |
| NON-CURRENT LIABILITIES | ||
| Borrowings | 66.9 | 42.1 |
| Deferred revenue and advances from customers | 1.9 | 1.9 |
| Joint ventures and associates | 0.7 | 0.3 |
| Deferred tax liabilities | 33.2 | 35.0 |
| Provisions | 1.1 | 1.3 |
| Consideration for acquisition | 2.2 | 2.3 |
| Secured notes | 83.4 | 80.8 |
| Lease liabilities | 10.8 | 8.2 |
| Total non-current liabilities | 200.4 | 171.9 |
| Total liabilities | 489.2 | 501.2 |
| EQUITY | ||
| Equity attributable to owners of the parent | 309.4 | 315.0 |
| Non-controlling interests | 36.6 | 36.3 |
| Total equity | 346.0 | 351.4 |
| Total equity and liabilities | 835.2 | 852.5 |
Contacts
Bioceres Crop Solutions
Paula Savanti
Head of Investor Relations
investorrelations@biocerescrops.com