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Dec 31, 2024
Bioceres Q2 2025 Earnings Report
Bioceres Crop Solutions reported its fiscal second quarter 2025 financial and operating results.
Key Takeaways
Bioceres Crop Solutions reported total revenues of $106.7 million for the fiscal second quarter ended December 31, 2024, a 24% decline from the previous year, primarily due to challenging market conditions in Argentina affecting crop protection and specialty fertilizers. Despite the revenue decline, the company's gross margin expanded to 42% due to an improved product mix, focusing on higher-margin products. Net income for the quarter was $0.6 million, and Adjusted EBITDA was $15.4 million.
Total revenues in 2Q25 were $106.7 million, a 24% decrease year-over-year, mainly due to tight farm economics and elevated channel inventories in Argentina.
Net income for 2Q25 was $0.6 million, down from $1.2 million in 2Q24, primarily due to lower operating profit.
Adjusted EBITDA for 2Q25 was $15.4 million, a 36% decrease year-over-year, driven by reduced gross profit in Crop Protection and negative impact from JV results.
Gross profit for the quarter was $45.1 million, a 12% decline year-over-year, but gross margin expanded from 37% to 42% due to an improved product mix.
Bioceres
Bioceres
Bioceres Revenue by Segment
Revenue by Segment
Crop Protection Revenue
CapyFin.comSeed and Integrated Products Revenue
CapyFin.comCrop Nutrition Revenue
CapyFin.com Forward Guidance
The company is implementing strategic changes in its seed business to focus on trait development and partnerships, aiming for more rapid and efficient scaling of technologies. They are also focusing on capital allocation and cost efficiencies to safeguard profitability and transition to a more asset-light business model.
Positive Outlook
- New strategy for seed business to focus on trait development and key partnerships for market access.
- Alliance with GDM for developing new soybean solutions with exclusive rights outside drought tolerance.
- Trigall Genetics to focus on HB4 trait development in wheat, with rights to HB4 technology outside Latin America now fully controlled by Bioceres.
- Appointment of Milen Marinov as Chief Commercial Officer to streamline commercial operations and accelerate partnerships.
- Commitment to developing and commercially scaling innovative technologies that create value for end-users.
Challenges Ahead
- Calendar year 2024 conditions in Argentina, the primary market, have been increasingly difficult.
- Lower commodity prices and dry weather tempered yield expectations, affecting farmer income.
- Unfavorable FX and inflation dynamics increased cost pressures for agricultural activities in Argentina.
- Well-supplied agricultural inputs market from aggressive purchasing in the prior season led to price pressure and market contraction.
- Challenges posed by the Argentine market, particularly the decline in farmer economics, are viewed as a temporary setback.
Revenue & Expenses
Visualization of income flow from segment revenue to net income