Bioceres Crop Solutions Reports Fiscal Third Quarter 2023 Financial and Operational Results

Revenues increased 33% compared with 3Q22 pro forma numbers

LTM adjusted EBITDA reached $85.3 million

Brazil HB4 initiatives advancing favorably on the back of full regulatory approval for wheat and positive soy performance with groundbreaking farmers

Published 2022 Sustainability Report “Each Step We Take”

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 third quarter ended March 31, 2023. 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

• Total revenues were $93.6 million in 3Q23, a 33% increase compared to the pro forma numbers for the third quarter of last year, which are inclusive of historical revenues from Pro Farm. Topline growth was primarily driven by revenues in the Crop Nutrition segment, resulting from the initial proceeds generated by the strategic partnership with Syngenta, which more than offset the negative impact of the extended drought in Argentina.
• Adjusted EBITDA was $35.8 million, mainly benefited by proceeds from the Syngenta agreement that were recognized in the quarter. On an LTM basis, adjusted EBITDA was $85.3 million.
• Brazil’s National Biosafety Commission concluded the safety evaluation of HB4 Wheat, providing full approval for commercialization and cultivation in the country. Partnerships with EMBRAPA and OR Sementes in place to introgress HB4 trait into varieties adapted to Brazil, with focus on the Cerrados region.
• HB4 Soy program in Brazil moving forward, with initial varieties performing favorably under diverse conditions. Seed inventory ramp-up on track to reach 10,000 hectares in 23/24 season.
• Inaugural 2022 Sustainability Report published, documenting our journey in developing and commercializing technologies that address two major challenges confronting global agriculture: climate change and biodiversity preservation.

MANAGEMENT REVIEW

Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “We are delighted to resume our growth trajectory with solid numbers reported in this quarter, despite the extended drought in Argentina, which continued to affect our sales in this important market. Our outstanding performance this quarter results from the combination of strategic actions we have taken over the last year to diversify the product and geographic exposure of our business. For instance, this quarter saw the initial benefits of the strategic partnership with Syngenta, which accelerates and broadens the international growth of our inoculant business.”

“We are also making great strides internationally on the HB4 front. In Brazil, our soybean program is steadily advancing, with an initial set of varieties tested by farmers in five states, with at least one variety consistently outperforming the top commercial alternatives. Brazil’s recent approval for HB4 Wheat commercialization and cultivation consolidated our collaboration with local institutions and seed developers such as Embrapa and OR Sementes. Additionally, the approval of HB4 grain importation by Brazil (adding to the prior approval for flour importation) allows us to diversify our go-to-market strategy in Argentina, where we are expanding original seed sales to a group of 45 seed multipliers, who can now build their own inventories for future, direct-to-farmer, certified seed sales. At the same time, we have enabled third parties such as Buck Semillas, to develop HB4 varieties with their own genetics, allowing us to more quickly address the needs of farmers in certain regions.”

Trucco added: “As described in our recently published Sustainability Report, our portfolio of products promotes efficient resource use and protects soil health and ecosystem biodiversity while strengthening crops against weather conditions associated with climate change. We are encouraged to see that farmers adoption of good agricultural practices can be independent of regulations when science is used to align productivity incentives with positive externalities. This concept is at the heart of our all-around value proposition.”

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted “This quarters’ strong results reflect the value of our strategic actions to diversify revenues, and to profit from our extensive portfolio of technologies in multiple ways. Results from the agreement with Syngenta were timely in helping us navigate our seasonally weakest quarter in a context of halted demand for some of our products due to unfavorable weather, particularly in Argentina. Both dynamics ─ weather patterns affecting seasonality and alternative revenue sources ─ are a reminder that our underlying performance is better assessed when looking at annual results. The results from the inoculants agreement recognized in the quarter drove improved revenues and profits, resulting in a strengthened financial position – a desirable position to be in considering the current turmoil in global markets. We feel confident about our ability to execute on short and mid-term plans, and if the drought situation in Argentina finally reverses in the coming weeks, we are optimistic about having a strong end to the fiscal year.”

KEY FINANCIAL METRICS

(In millions of U.S. dollars, unless where otherwise stated)

Summary: 3Q23 revenues increased 33% to $93.6 million when compared to 3Q22 pro forma revenues that include historical sales from Pro Farm. The historical drought that affected Argentina in the previous quarter continued into 3Q23 negatively impacting product sales, particularly micro-beaded fertilizer sales. This decline was fully offset by the recognition of a large portion of the initial compensatory payment from the agreement with Syngenta, announced in September 2022. This agreement is part of the company’s strategy of revenue diversification and helped to offset the impact of an unusually severe drought in a key market. On a year-to-date basis, sales were up 28%. Gross profit and adjusted EBITDA for the quarter saw greater YOY increases (84% and 1200% respectively) as proceeds from the inoculant agreement flow directly to the bottom line. LTM adjusted EBITDA stood at $85.3 million.

For a full version of Bioceres third quarter 2023 earnings release, click here.

THIRD QUARTER 2023 EARNINGS CONFERENCE CALL

Management will host a conference call and question-and-answer session, which will be accompanied by a presentation available during the webcast or accessed via the investor relations section of the company’s website.

To access the call, please use the following information:

Please dial in 5-10 minutes prior to the start time to register and join.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website here.

A replay of the call will be available through May 18, 2023, following the conference.

About Bioceres Crop Solutions Corp.

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation Crop Nutrition and Protection solutions. Through its HB4® program, the company is bringing digital solutions to support growers’ decisions and provide end-to-end traceability for production outputs. For more information, visit here.

Forward-Looking Statements

This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include estimated financial data and, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses by governments, clients and the company, on our business, financial condition, liquidity position and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. These forward-looking statements include, but are not limited to, whether (i) the health and safety measures implemented to safeguard employees and assure business continuity will be successful, (ii) the uncertainty related to COVID-19 in the farming community will be short lived, and (iii) we will be able to coordinate efforts to ramp up inventories. Such forward-looking statements are based on management’s reasonable current assumptions, expectations, plans and forecasts regarding the company’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations or could affect the company’s ability to achieve its strategic goals, including the uncertainties relating to the impact of COVID-19 on the company’s business, operations, liquidity and financial results and the other factors that are described in the sections entitled “Risk Factors” in the company's Securities and Exchange Commission filings updated from time to time. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.

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