Bioceres Crop Solutions (US:BIOX)2023-02-09 11:02Financial Performance - Total revenues in Q2 2023 were $94.4 million, a 7% decrease compared to the pro forma revenues for Q2 2022, which included historical revenues from Pro Farm[20]. - Adjusted EBITDA for the quarter was $10.3 million, representing a 43% decline year-over-year[29]. - Gross profit fell by 28% to $35.3 million, resulting in a gross margin of 37.4%, down from 48.1% in the same quarter last year[39]. - The company reported a net loss of $8.36 million for the second quarter of 2023, compared to a profit of $5.34 million in the same period last year, marking a decline of 256%[77]. - Adjusted EBITDA for Q2 2023 was $10.3 million, down from $18.3 million in Q2 2022, reflecting the negative impact of drought on top-line and margins[123]. Revenue Breakdown - Crop Protection revenues decreased by 5% to $53.3 million, while Seed and Integrated Products revenues increased by 7% to $16.3 million[29]. - Revenues for Q2 2023 were $94.4 million, a 7% decrease compared to pro forma revenues for Q2 2022, with an estimated $20 million to $25 million in potential sales lost due to drought conditions in Argentina[116]. - Total revenue for the second quarter of 2023 was $94.41 million, an increase from $92.66 million in the same period last year, representing a growth of 1.9%[77]. Expenses and Debt - Operating profit for the second quarter of 2023 decreased significantly to $2.22 million from $17.70 million in the same quarter of 2022[77]. - Total net interest expenses and commissions from financial debt rose to $4.1 million in Q2 2023, an increase of $1.1 million compared to the previous year[107]. - Total financial debt increased to $257.1 million as of December 31, 2022, up from $187.9 million in Q2 2022, primarily due to the merger with Pro Farm[109]. - The company experienced a net debt-to-LTM adjusted EBITDA ratio of 3.13x in Q2 2023, compared to 2.66x in Q2 2022, indicating increased leverage[131]. - SG&A expenses were $29.0 million in Q2 2023, a 4% year-over-year increase, influenced by higher D&A and transaction expenses related to the merger[120]. Cash and Investments - Cash, cash equivalents, and other short-term investments totaled $87.4 million as of December 31, 2022, up from $40.0 million in Q2 2022[48]. - Cash and cash equivalents increased to $68.55 million as of December 31, 2022, up from $33.48 million on June 30, 2022[56]. - The company completed a $26.6 million public offering of corporate bonds in February 2023 to extend the maturity of short-term debt[139]. Market Conditions and Future Outlook - The severe drought in Argentina reduced wheat output by 50% and delayed soybean and corn planting, impacting overall sales[6]. - The company anticipates resuming growth momentum in the second half of the fiscal year as weather conditions improve[24]. - The company anticipates improved sales in the remainder of the fiscal year due to recent rainfall in Argentina, which is expected to enhance crop protection product usage[117]. - The company expects HB4 wheat to generate an incremental EBITDA of $15 to $20 million in FY24[25]. Research and Development - Research and development expenses for the second quarter of 2023 were $1.4 million, compared to $1.9 million in the same period last year[77]. - R&D expenses increased to $3.5 million in Q2 2023 from $2.7 million in Q2 2022, driven by higher depreciation and amortization expenses related to HB4 intangible assets[102]. Product Performance - HB4 Wheat demonstrated a 43% yield improvement over conventional varieties in targeted environments, with a win rate of 80% when comparing isogenic varieties[10]. - Pro Farm biological products contributed to higher sales in North America, helping to offset declines in Argentina[13].