Bioceres Crop Solutions (BIOX) - 2024 Q4 - Annual Report

Financial Performance - For the year ended June 30, 2024, total revenue was US $464.8 million, an increase of 10.6% from US$ 420.1 million in the previous year[251]. - Operating profit for the same period was US $44.8 million, while GAAP net income was US$ 6.2 million, compared to US $20.2 million in net profit for the year ended June 30, 2023[251]. - Adjusted EBITDA for the year ended June 30, 2024, was US$ 81.4 million, slightly up from US $81.2 million in the previous year[251]. - The company reported total revenue of US$ 223.5 million in the Crop Protection segment with a gross margin of 35.7% for the year ended June 30, 2024[311]. - The Seed & Integrated Products segment generated US $96.4 million in revenue with a gross margin of 31.2%[311]. - Crop Nutrition segment revenue reached US$ 144.8 million, achieving a gross margin of 53.0%[311]. - In the year ended June 30, 2024, the top five customers in the seed and integrated products segment represented approximately 31.1% of total revenue in this segment[377]. - In the crop protection segment for the same period, the top five customers accounted for approximately 36.2% of total revenue[379]. - The crop nutrition segment also saw the top five customers representing approximately 36.2% of total revenue for the year ended June 30, 2024[380]. Research and Development - The company has established over 19 collaborations and joint initiatives globally as of June 2024, enhancing its R&D capabilities[277]. - The company has over 69 active R&D projects focused on biotechnology traits, biofungicides, and bioinsecticides, among others[273]. - The integration of Pro Farm has strengthened the company's internal R&D capabilities, leading to the establishment of specialized teams in entomology and nematology[329]. - The company collaborates with academic institutions and startups to expedite technology development and establish strategic partnerships[330]. Strategic Partnerships and Agreements - An exclusive agreement with Corteva Agriscience was signed on July 18, 2023, to advance biological solutions in Europe, targeting crops like corn and sunflower[284]. - A 10-year exclusive global distribution agreement with Syngenta was established on September 12, 2022, for certain biological solutions for seed care applications[287]. - Syngenta made an upfront payment of US $50 million for distribution and R&D collaboration, with a profit-sharing agreement of 50% to 30% depending on geography and year, and a total minimum profit target of US$ 230 million over the agreement's life[291]. - The company has entered into exclusive distribution agreements with Syngenta and Corteva for various products, enhancing its market presence in Europe and Latin America[368][390]. - The company has strategic alliances with Momentive and De Sangosse Group for the distribution of agricultural products in several South American countries[365][366]. - The company has executed significant agreements for formulation services and production with major firms such as Syngenta, Corteva, and UPL[367]. Market Position and Share - The company has a 23% global market share in soybean inoculants as of June 30, 2024[324]. - Rizobacter holds a 32% market share in the Argentine adjuvants market and aims to expand in Brazil through a B2B strategy[442]. - Rizobacter is the global leader in the inoculants market with an estimated market share of 23%[444]. - The company faces competition in the seed and integrated products sector from major players like Bayer and Corteva, particularly in biotech traits[446]. - The South American soybean market is dominated by local companies such as GDM Seeds and TMG, presenting collaboration opportunities[447]. Product Development and Technology - The HB4 technology is projected to increase soybean and wheat yields by an average of 10% to 20% under various conditions[317]. - The HB4 technology, which allows crops to tolerate drought and soil salinity, is the first of its kind approved for use in multiple countries, including Argentina, Brazil, Paraguay, and the United States[395]. - The company develops biofertilizers that enhance nutrient absorption through a unique organic molecular complex, focusing on new products for crops like wheat and corn[325]. - Microgranular fertilizers produced by the company can replace 80 kilograms of basic fertilizer with only 20 to 30 kilograms, achieving similar crop productivity[326]. - The company’s biostimulants portfolio includes three key products: Emergen, Pacesetter, and UBP 110, aimed at improving plant nutrition and yield[327]. - The company has retained global rights for products related to HB4 crops, with Syngenta holding non-exclusive rights in the U.S.[290]. - The Moolec Convertible Notes, issued for HB4 soy supply, total US $6.6 million, with an option for additional deliveries valued at US$ 9 million[294]. - The company has expanded its portfolio and pipeline of biological products through the Pro Farm Merger, enhancing its offerings in sustainable agriculture[425]. Market Trends and Projections - The market for agricultural biologicals is estimated to be approximately $14 billion for 2023, representing about 3%-5% of the total agricultural inputs market[397]. - The agricultural biologicals market is experiencing double-digit growth, driven by regulatory policies and the need for sustainable agricultural practices[398]. - The global market for agricultural adjuvants is valued at US$ 3.0 billion in 2023 and is projected to reach US $4.0 billion by 2029, at a CAGR of 4.8%[419]. - The biocontrol market was estimated at US$ 6.2 billion for 2021 and is projected to exceed US $15 billion by 2029, with an estimated CAGR of 11%[424]. - The biostimulants market was valued at US$ 3.1 billion in 2023 and is projected to grow at an estimated CAGR of 11.2% to reach US $5.9 billion by 2029[428]. - The biofertilizers market was valued at US$ 2.2 billion in 2023 and is expected to reach US $4.5 billion by 2029, growing at an estimated CAGR of 12.1%[429]. - The global market for specialty fertilizers is estimated at US$ 42.0 billion in 2023 and is expected to reach US $75.0 billion by 2031, growing at an estimated CAGR of 7.5%[435]. - The nitrogen-fixing seed inoculants market is projected to increase from US$ 1.2 billion in 2023 to US $1.8 billion in 2029, with a CAGR of 7.5%[431]. - The global seed market size is estimated at US$ 69 billion in 2023 and projected to reach US $94 billion by 2029, growing at a CAGR of 5.4%[438]. - The genetically modified seeds market is estimated at approximately US$ 36 billion in 2023 and projected to reach US$63 billion by 2029, with a CAGR of 9.8%[439]. Long-term Strategy - The company's long-term growth strategy includes leading the development of new agricultural biotechnology products in existing and new markets[448]. - The company aims to consolidate its position in biological assets, including microbial, seed trait, and germplasm assets[448].