Rosario, Argentina
February 11, 2025

• Total revenues in 2Q25 were $106.7 million
• 2Q25 net income was $0.6 million and Adjusted EBITDA1 was $15.4 million

Bioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change, announced financial results for the fiscal second quarter ended December 31, 2024. 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.

Financial & Business Highlights

• Revenues in 2Q25 totaled $106.7 million, down from quarterly record-high of $140.2 million in 2Q24, as tight farm economics and elevated channel inventories in Argentina — a decisive market for the quarter — significantly contracted the overall market for crop protection and specialty fertilizers. This led to a year-over-year reduction in sales of non-core CP products and micro-beaded fertilizers, roughly in line with the market decline.
• Operating profit was $7.9 million and net income was $0.6 million. Adjusted EBITDA for the quarter was $15.4 million, mainly driven by top-line and gross profit performance from Argentina.
• New strategy defined for seed business, exiting breeding and seed production activities to focus on trait development and key partnerships for market access:
  • Alliance with GDM to use Verdeca’s patented platform to develop and market next generation varieties that combine superior agronomic performance with biotech traits.
  • Trigall Genetics to focus on HB4 trait development in wheat and transfer breeding programs to Florimond Desprez. Rights to HB4 technology outside of Latin America are now fully controlled by Bioceres.
• Milen Marinov appointed Chief Commercial Officer (CCO).

Management Review

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “Calendar year 2024 has been a reminder that growth, at least in the agriculture industry, is seldom linear. The conditions in Argentina, which remains our primary market, have proven increasingly difficult. This has affected the performance of our fiscal first half, a period during which we are more exposed to sales in the Southern Hemisphere. While we have maintained or gained market share in all our key product segments, we believe this macro environment provides unique opportunities to unlock the full commercial potential of our differentiated portfolio of products and technologies. As a result, we are implementing two significant strategic changes.

First, we are appointing Milen Marinov, who previously served as our EVP of Commercial for North America, as our new Chief Commercial Officer. Milen’s past experience in key commercial development roles in Valagro and then Syngenta, as well as his track record with us since joining the Profarm team last year, positions him uniquely to help us streamline our commercial operations, accelerate the on-boarding of new commercial partners, and better prioritize, diversify and synchronize our portfolio opportunities for profitable growth.

Second, in the seed segment, we are sharpening our focus on what we do best: sourcing cutting-edge science and cost-effectively developing patented seed traits until commercial approval. We have made the strategic decision to exit breeding, seed production and seed sales and will instead partner with industry leaders who are better structured for these activities. As a first step in this new strategy, we are announcing a strategic agreement with GDM for the development of new soybean solutions, with exclusive rights outside the drought tolerance space. Additionally, we are a redefining the scope of our wheat joint venture with Florimond Desprez, exiting conventional breeding operations in Argentina and Australia, while directly licensing our HB4 wheat technology to partners outside of Latin America. We believe these initiatives will enable us to scale our current and future seed technologies more rapidly and efficiently.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: “While our fiscal first half results reflect the challenges posed by the Argentine market, particularly the decline in farmer economics driven by lower commodity prices and weak yield forecasts, we view this setback as temporary.

Argentine farmers faced significant pressure on their per-hectare income from summer crops due to these external factors, which was partially passed on to costs in the form of reduced use of fertilizers and crop protection products. This, in the context of a well-supplied ag-inputs market from aggressive purchasing in the prior season, resulted into price pressure and reduced spending on high-value technologies like ours. However, we are encouraged that we maintained our market share in key product families, despite the overall Argentine market contraction.

We remain optimistic about our long-term prospects, driven by our commitment to developing and commercially scaling up innovative technologies that create value for end-users. We are also cognizant that successfully navigating this period of market volatility requires a strong focus on capital allocation, driving cost efficiencies to safeguard profitability, and transitioning towards a more asset-light business model. The strategic repositioning of our seed business and tighter inventory management are initial steps in this direction.

In the near future we will continue to explore additional opportunities to enhance profitability and cash flows, ensuring we’re well-positioned to capitalize on the groundwork already made to support our global expansion as well as to benefit from the recovery of the Argentine market.”

Key Financial Metrics

2Q25 Summary: Total revenues in 2Q25 were $106.7 million, a 24% decline from the record $140.2 million in the same period last year. The downturn was primarily driven by performance in Argentina where tighter on-farm margins altered farmer purchasing behavior, leading to a significant contraction of the crop protection and specialty fertilizers markets compared to the prior year. Reduced end-user demand added to high channel inventories derived from aggressive purchases in the prior summer crop season, ahead of expectations of changes in macro conditions in Argentina. Non-core crop protection products and micro-beaded fertilizers were the main product categories affected by the market contraction in Argentina and explain the decline in Crop Protection and Crop Nutrition sales, albeit with a roughly stable market share for both categories. Sales in Seed and Integrated Products decreased on the back of reduced downstream grain sales in line with the strategic pivoting of the seed business, partially offset by seed treatment packs sales which showed a modest top-line growth in Argentina despite the market contraction dynamics. Revenues for the first half of FY25 declined by 22% compared to the year-ago period, primarily driven by the crop protection and specialty fertilizers market downturn in Argentina, although the decline was not at the expense of losing market share. Outside of Argentina, revenues showed a modest year-over-year increase in 2Q25 after an overperformance in 1Q25, leading to net growth in 1H25.

Gross profit for the quarter was $45.1 million, a 12% decline year-over-year. The decline in revenues was buffered by an improved product mix, particularly in the Crop Nutrition and Seed and Integrated Products segments, as the company successfully maintained sales of higher-margin inoculants, biostimulants and seed treatment packs, as opposed to reduced sales of lower-margin micro-beaded fertilizers, non-core crop protection products and downstream grain sales. As a result, gross margin increased from 37% to 42%, compared to the previous year. Similarly, first-half gross margin increased from 38% to 41%, as core product families increased contribution to the product mix.

Operating profit for the quarter was $7.9 million, with a net income of 0.6 million. Adjusted EBITDA1 for the quarter was $15.4 million, primarily driven by revenues and gross profit performance.

For a full version of Bioceres’ second quarter fiscal year 2025 earnings release, click here.

Website: https://investors.biocerescrops.com/home/default.aspx

Published: February 12, 2025