The following is a summary of the Bioceres Crop Solutions Corp. (BIOX) Q3 2024 Earnings Call Transcript:
Financial Performance:
Bioceres reported Q3 revenues of $84 million, marking a 10% decrease compared to the same quarter the previous year.
The company's net income for this period decreased to $9.8 million, and their adjusted EBITDA fell to $21.1 million.
The drop in figures has been attributed entirely to the disproportionate weight of the Syngenta distribution agreement in the Q3 earnings of the previous year.
Despite some delayed sales of bio-nutrition solutions in Argentina and Brazil, the company anticipates these to be realized in Q4.
Bioceres expects an improvement in their final fiscal quarter, with around $4 million EBITDA not realized in the third quarter but expected in the current one. For HB4 wheat, $15 million EBITDA is targeted.
Business Progress:
Bioceres received their first regulatory approval for bio-control solutions in Brazil, entering high-value bio-insecticidal markets.
Their first two HB4 soy varieties, limitedly used by key farmers in Brazil, have received positive feedback with some reporting double-digit yield improvement.
Significant developments in the Seed and Integrated Products segment, mostly connected to HB4 wheat sales, are expected to drive profitability growth in Q4.
The company is expanding into the U.S. market, albeit HB4 product development there lags behind Latin America. It awaits the USDA approval for domestic production of HB4 wheat but expects significant growth upon approval of new product formulations.
In Brazil, approvals for products Venerate and Majestene are expected to expand the company's portfolio and will not cannibalize current sales due to already established relationships.
More details: Bioceres Crop Solutions IR
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