Business
Bioceres Crop Solutions Reports Fiscal Second Quarter 2023 Financial and Operational Results
Severe drought in Argentina temporarily interrupted growth trajectory; decline in Argentina partially offset by higher sales in North America HB4 Wheat
About this update from Bioceres Crop Solutions Corp.
[{"type":"text","content":"\nSevere drought in Argentina temporarily interrupted growth trajectory; decline in Argentina partially offset by higher sales in North America\n\nHB4 Wheat outperformed top commercial varieties, on average, across all environments with a 43% yield increase in targeted conditions\n\n ROSARIO, Argentina--(BUSINESS WIRE)--\nBioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a fully integrated provider of crop productivity solutions designed to enable the transition of agriculture towards carbon neutrality, announced financial results for the fiscal second quarter ended December 31, 2022. 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.\n\nFINANCIAL & BUSINESS HIGHLIGHTS\n\n\nHistorical drought during 2Q23 in Argentina slashed wheat output by 50% countrywide and delayed soybean and corn planting. Planting progress for soybeans lagged by 20-to-30 percentage points as compared with the historical average for the entire optimal planting window.\n\n\nTotal revenues in 2Q23 were $94.4 million, a 7% decrease compared with the pro forma revenues for the second quarter of last year, which include historical revenues from Pro Farm. Sales growth in North America partially offset the decline in Argentina.\n\n\nAdjusted EBITDA for the quarter was $10.3 million and was primarily affected by a decline in gross profit contribution from sales in Argentina.\n\n\nUnder severe drought conditions HB4 Wheat showed higher yields than conventional varieties across all environments, with an average 43% yield improvement in targeted environments. Seed inventories and product performance are on track to meet FY23 expectations.\n\n\nHB4 Soy is on track despite unusually difficult planting conditions in Argentina. Half of the current seed multiplication area has been planted with new generation varieties. HB4 Soy program was launched with growers in Brazil.\n\n\nTrigall Genetics (a Bioceres joint venture) closed the 80% acquisition of wheat breeding assets in Australia.\n\n\nMANAGEMENT REVIEW\n\nMr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “As we anticipated during our prior earnings call, our growth momentum has been transiently interrupted by unusually severe droug...