Bioceres Crop Solutions (US:BIOX)2022-02-10 19:48Financial Data and Key Metrics Changes - The company reported record quarterly comparable revenues of $90.3 million, representing an 89% year-over-year growth [25][26] - Year-to-date growth reached 72%, with a solid 56% increase in the last 12 months, totaling $262.6 million [26] - LTM adjusted EBITDA reached $61.8 million, up 46% year-over-year [31] Business Segment Data and Key Metrics Changes - Crop Nutrition segment revenues grew by $19.3 million, more than tripling its revenues, driven by strong sales of microbial fertilizers in Argentina [37][38] - Seed and Integrated Product segment revenues increased by 26% year-on-year to $50.3 million, with gross margin expanding to 68.9% [41] - Crop Protection segment saw a 76% increase in revenues, contributing $20.1 million to total revenue growth, although gross margin declined due to lower-margin third-party products [42] Market Data and Key Metrics Changes - Combined growth in Europe and North America was 146% year-over-year, now accounting for close to 10% of global revenues [7] - The company expects to capture an estimated 2.3 million hectares in the Latin American market, with peak sales projected between $190 million and $200 million [17][19] Company Strategy and Development Direction - The company is focused on expanding its portfolio to include second-generation materials to overcome limitations of first-generation varieties [15][19] - The recent approval of HB4 Wheat in Brazil is a significant milestone for the company's international diversification strategy [8][9] - The company aims to minimize geographical limitations and improve grower experience under high-yielding conditions [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum in the upcoming quarters, driven by international expansion and the launch of HB4 products [62] - The company is optimistic about the market conditions, particularly in North America and Europe, which are expected to contribute significantly to gross profit growth [88] Other Important Information - The company has onboarded 13 processors for HB4 Wheat, with a combined capacity of about 700,000 tonnes, ensuring commercial stability for farmers [56] - The company has appointed Alexandre Garcia as Global Head of Seeds to enhance its R&D initiatives and focus on new genetics [24] Q&A Session Summary Question: What is the status of buyers for HB4 Wheat? - The company has secured agreements with 13 processors for HB4 Wheat, ensuring a stable commercial environment for farmers [56] Question: How is the genetic gap being addressed in U.S. soybean? - The company is introducing HB4 traits into competitive germplasm to minimize the genetic gap observed in Argentina [59] Question: What is the growth outlook for the next few quarters? - Management expects to see continued growth momentum, particularly from international markets and the HB4 launch [62] Question: What is the significance of yellow rust in HB4 Wheat? - The reduction of yellow rust incidents in HB4 varieties is expected to enhance commercial viability and profitability [67] Question: What are the historical gross margin differentials between product categories? - Adjuvants have gross margins of 55% to 65%, while insecticides and fungicides have lower margins of 25% to 35% [73][74] Question: What was the revenue impact of the recent acquisition? - The acquisition has significantly increased revenue, with performance jumping from $8 million to $16 million in the current quarter [80]