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Bioceres Crop Solutions Corp. Reports Fiscal Second Quarter 2020 Financial Results

February 11, 2020 GMT

ROSARIO, Argentina--(BUSINESS WIRE)--Feb 11, 2020--

Bioceres Crop Solutions Corp. (“Bioceres”) (NYSE American: BIOX), a fully integrated provider of crop productivity solutions, announced today its unaudited consolidated financial results for fiscal second quarter 2020 and the six-month period ended December 31, 2019. Financial Results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards.

2Q20 Financial and Business Highlights

Commenting on the Company’s results, Mr. Federico Trucco, Chief Executive Officer of Bioceres, said, “From a big picture perspective, the most important milestone for the quarter was the validation of EcoWheat performance at hundreds of hectares for the first time. HB4 benefits were consistent with those estimated in our product development trials, testifying to the robustness of our R&D process. Off-season multiplication of EcoSoy inventories allowed us to approximate the 3,000 hectares planted during the quarter, keeping us on track with inventory ramp-up projections for both crops. Also, an important achievement for the period was the beta-launch of our digital platform, providing a very valuable field to cloud data interface.

From an operating viewpoint, we were able to partially recover sales in Argentina from the prior quarter while actively managing costs, though this was not sufficient to accomplish the full growth we expected for the period. In sum, we continue to execute on our strategic priorities of leading with innovation, operating with excellence and driving increased productivity. Our goal is to build on the foundation for growth we have in place to take all our businesses to the next level.”

Mr. Enrique Lopez Lecube, CFO of Bioceres, said “It was an important accomplishment to confirm an overall growth trend in revenues as well as EBITDA during the quarter considering the adverse scenario under which the planting season unfolded in Argentina, where macroeconomic and drought conditions generated uncertainty amongst farmers. The commercial teams did a good job at dealing with headwinds and partially recovering packs sales that had not happened in Q1. Our business proved to be resilient with multiple sources for growth and profitability. Brazil, Paraguay and Uruguay continued to be an offsetting factor to Argentina, while the micro-beaded fertilizers and adjuvants also performed well.”

“In terms of financing we will continue to identify opportunities that extend the maturity of our debt and maximize cash generation, as well as securing future capital requirements from our core initiative around HB4” Mr. Lopez Lecube concluded.

REVIEW OF OPERATING PERFORMANCE

Installed capacity utilization of the micro-beaded fertilizer plant for the twelve-month period ended December 31, 2019 reached 27.2%. This was a 22.5% YoY increase bringing total production to 13.600 tons for the trailing twelve-month period, driven by sales in Argentina, Brazil, Uruguay, Paraguay and Bolivia.

Adjuvants aggregated volume in fiscal 2Q20 increased 10% compared to the same period in fiscal 2019. This was led by Brazil which delivered 37% growth YoY as the Company continues to execute its growth strategy in that country. Other international subsidiaries, ex-Argentina, increased 18% YoY. Argentina volume was up 6% maintaining the leading position in the high-end adjuvants market. For the six-month period ended December 31, 2019 adjuvants aggregated volume increased 3% compared to the same period in 2018, which factors in a shift from high volume, lower margin products into higher margin adjuvants in Argentina.

Inoculants and seed treatment doses aggregated volume in fiscal 2Q20 increased 5% YoY, reflecting partial recovery of purchases delayed for summer crops’ seed treatment packs in Argentina and higher packs sales in other countries. For the six-month period ended December 31, 2019, inoculant doses decreased 3% compared to the same period in 2018 partially reflecting delayed purchases in the prior quarter.

REVIEW OF FISCAL SECOND QUARTER 2020 RESULTS

Comparable Revenues and Comparable Gross Profit are key operational metrics used by the management team to assess the Company’s underlying financial and operating performance. The Company has introduced the term “Comparable” to reflect the result of a given metric excluding the impact of IAS 29.

For comparison purposes, the impact of adopting IAS 29 is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”. For further information please review Application of IAS 29 section.

Revenues

Table 1: Fiscal 2Q Revenues by Segment

(Figures in US dollars)

As Reported

 

 

 

IAS 29

 

 

 

Comparable

 

2Q 2019

 

2Q 2020

 

% Chg.

 

 

 

2Q 2019

 

2Q 2020

 

 

 

2Q 2019

 

2Q 2020

 

% Chg.

Revenue by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crop protection

31,761,913

 

33,142,238

 

4%

 

 

 

(4,004,579)

 

(3,299,345)

 

 

 

27,757,334

 

29,842,893

 

8%

Seed and integrated products

12,956,881

 

13,902,612

 

7%

 

 

 

(1,011,722)

 

(1,140,526)

 

 

 

11,945,159

 

12,762,086

 

7%

Crop nutrition

17,740,448

 

15,949,438

 

(10%)

 

 

 

(3,554,121)

 

(1,512,574)

 

 

 

14,186,327

 

14,436,864

 

2%

Total revenue

62,459,242

 

62,994,288

 

1%

 

 

 

(8,570,422)

 

(5,952,446)

 

 

 

53,888,820

 

57,041,842

 

6%

Revenues as reported remained flat at $63.0 million in fiscal 2Q20, compared to $62.5 million during fiscal 2Q19, negatively impacted by IAS29 adjustment.

Comparable Revenues during the quarter increased 6% YoY, driven by growth in adjuvants, seed treatment packs and inoculants in Brazil, Uruguay and Paraguay, as well as sustained micro-beaded fertilizers sales growth. This was partially offset by weaker than anticipated seed treatment packs sales in Argentina, where macroeconomic and weather uncertainty faced by farmers at planting did not permit a full recovery of delayed fiscal 1Q20 pack sales.

Table 2: Fiscal 1H Revenues by Segment

(Figures in US dollars)

As Reported

 

 

 

IAS 29

 

 

 

Comparable

 

1H 2019

 

1H 2020

 

% Chg.

 

 

 

1H 2019

 

1H 2020

 

 

 

1H 2019

 

1Q 2020

 

% Chg.

Revenue by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crop protection

46,435,705

 

51,095,406

 

10%

 

 

 

(1,421,365)

 

(1,783,599)

 

 

 

45,014,340

 

49,311,807

 

10%

Seed and integrated products

19,494,529

 

19,432,060

 

(0%)

 

 

 

(531,096)

 

(937,472)

 

 

 

18,963,433

 

18,494,588

 

(2%)

Crop nutrition

26,141,232

 

28,718,480

 

10%

 

 

 

(874,994)

 

(232,937)

 

 

 

25,266,238

 

28,485,543

 

13%

Total revenue

92,071,466

 

99,245,946

 

8%

 

 

 

(2,827,454)

 

(2,954,008)

 

 

 

89,244,012

 

96,291,938

 

8%

Revenues as reported increased to $99.2 million in fiscal 1H20 from $92.1 million in fiscal 1H19.

Comparable Revenues during the six-month period increased 8% YoY, driven by growth in the Crop Protection and Crop Nutrition segments, slightly offset by a decrease in the Seed & Integrated Products segment.

Gross Profit

Table 3: 2Q Gross Profit by Segment

(Figures in US dollars)

As Reported

 

 

 

IAS 29

 

 

 

Comparable

 

2Q 2019

 

2Q 2020

 

% Chg.

 

 

 

2Q 2019

 

2Q 2020

 

 

 

2Q 2019

 

2Q 2020

 

% Chg.

Gross profit by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crop protection

13,032,449

 

14,721,630

 

13%

 

 

 

314,570

 

(297,963)

 

 

 

13,347,019

 

14,423,667

 

8%

Seed and integrated products

8,861,698

 

9,269,809

 

5%

 

 

 

(3,055,185)

 

(679,247)

 

 

 

5,806,513

 

8,590,562

 

48%

Crop nutrition

7,411,426

 

6,040,121

 

(19%)

 

 

 

1,851,326

 

746,806

 

 

 

9,262,752

 

6,786,927

 

(27%)

Total Gross profit

29,305,573

 

30,031,560

 

2%

 

 

 

(889,288)

 

(230,404)

 

 

 

28,416,285

 

29,801,156

 

5%

% Gross profit

46.9%

 

47.7%

 

75 bps

 

 

 

 

 

 

 

 

 

52.7%

 

52.2%

 

(49 bps)

Reported Gross profit in fiscal 2Q20 was $30.0 million compared to $29.3 million in the same period of the prior year an increase of 2%.

Comparable gross profit for the quarter was $29.8 million compared to $28.4 million in the year-ago quarter an increase of 5%. Comparable gross margin for the period was 52.2%, 49 basis points lower than the same period of the prior year. Most of the Company’s revenues are pegged to the US dollar, while a significant portion of production costs are denominated in Argentine pesos. The net effect between the depreciation and inflation rate had a neutral impact YoY on quarterly margins. Gross profit & margins were driven by the following performance by business segment:

Table 4: 1H Gross Profit by Segment

(Figures in US dollars)

As Reported

 

 

 

IAS 29

 

 

 

Comparable

 

1H 2019

 

1H 2020

 

% Chg.

 

 

 

1H 2019

 

1H 2020

 

 

 

1H 2019

 

1H 2020

 

% Chg.

Gross profit by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crop protection

20,356,745

 

22,469,322

 

10%

 

 

 

1,400,748

 

(76,138)

 

 

 

21,757,493

 

22,393,184

 

3%

Seed and integrated products

13,209,310

 

12,174,337

 

(8%)

 

 

 

(2,343,245)

 

70,175

 

 

 

10,866,065

 

12,244,512

 

13%

Crop nutrition

10,852,732

 

11,294,485

 

4%

 

 

 

3,521,452

 

1,633,062

 

 

 

14,374,184

 

12,927,547

 

(10%)

Total Gross profit

44,418,787

 

45,938,144

 

3%

 

 

 

2,578,954

 

1,627,099

 

 

 

46,997,741

 

47,565,243

 

1%

% Gross profit

48.2%

 

46.3%

 

(196 bps)

 

 

 

 

 

 

 

 

 

52.7%

 

49.4%

 

(327 bps)

Reported Gross profit for the six-month period increased 3% to $45.9 million from to $44.4 million in fiscal 1H19.

Comparable gross profit for the six-month period was $47.6 million up from $47.0 million in the year-ago period. Comparable gross margin for the period was 49% vis a vis 53% in the prior year period reflecting FX and inflation dynamics in Argentina that affected production costs. The sharp depreciation of the currency that occurred in calendar 2018 (fiscal 1H19) had positively impacted results for the prior year’s period, but was not reflected in fiscal 1H20. Gross profit and margins were driven by the following factors in each business segment:

Selling, General and Administrative Expenses

SG&A in fiscal 2Q20 was $10.5 million, down from $10.7 million in the same period of the prior year, reflecting cost efficiencies.

SG&A for the six-month period was $19.2 million. Excluding a one-time expense of $1.1 million stock-based compensation and transaction expenses accrued in 1Q20, SG&A for fiscal 1H20 would have been $18.1 million compared to $16.8 million in the corresponding year-ago period. The increase for fiscal 1H20 is mainly explained by FX and inflation dynamics in Argentina, as most of the business support functions are headquartered in the country, and the corresponding costs denominated in local currency. The sharp depreciation of the Argentine peso that occurred in calendar 2018 had a positive impact in fiscal 1H19 results, while fiscal 1H20 did not get a similar benefit in terms of SG&A. Furthermore, higher commercial expenses related to business growth, partially offset by lower professional fees and outsourced services, also explain the increase for the six-month period.

Research & Development

R&D expenses include ongoing efforts to maintain and continuously upgrade the Company’s existing product portfolio. R&D expenses in fiscal 2Q20 increased YoY by $1.0 million and were $2.1 million in the six-month period.

Adjusted EBITDA & Adjusted EBITDA Margin

During fiscal 2Q20, the Company reported Adjusted EBITDA of $21.0 million, up from $20.3 million in fiscal 2Q19. Adjusted EBITDA margin was 33.5% compared to 32.5% in the prior year quarter an increase of 103 basis points.

Table 5: 2Q20 Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin

(Figures in US dollars)

2Q 2019

 

2Q 2020

 

% Chg.

Loss for the year

11,165,810

 

12,649,826

 

13.3%

Income tax (benefit)/expense

7,021,142

 

3,443,508

 

(51.0%)

Finance results

823,618

 

3,471,629

 

321.5%

Depreciation of PP&E and intangibles assets

1,254,968

 

1,244,502

 

(0.8%)

Stock-based compensation charges

5,117

 

1,069,629

 

20802.8%

Transaction expenses

-

 

(783,296)

 

NA

Adjusted EBITDA

20,270,655

 

21,095,798

 

4.1%

Adjusted EBITDA Margin

32.5%

 

33.5%

 

103 bps

For the six-month period, Bioceres reported Adjusted EBITDA of $29.2 million, compared with $29.3 million in fiscal 1H19. Adjusted EBITDA margin was 29.5% compared to 31.8% in the prior year quarter. Growth in Brazil, Uruguay and Paraguay, coupled with ongoing ramp-up in the micro-beaded fertilizer business and SG&A cost efficiencies were offset by lower revenues in seed treatment packs in Argentina and FX versus inflation dynamics, resulting in a lower EBITDA margin for fiscal 1H20.

Table 6: 1H20 Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin

(Figures in US dollars)

1H 2019

 

1H 2020

 

% Chg.

Loss for the year

7,566,553

 

4,672,081

 

(38.3%)

Income tax (benefit)/expense

5,050,749

 

1,204,655

 

(76.1%)

Finance results

14,559,272

 

19,868,676

 

36.5%

Depreciation of PP&E and intangibles assets

2,077,123

 

2,400,623

 

15.6%

Stock-based compensation charges

8,921

 

1,867,334

 

20831.9%

Transaction expenses

-

 

(783,296)

 

NA

Adjusted EBITDA

29,262,618

 

29,230,073

 

(0.1%)

Adjusted EBITDA Margin

31.8%

 

29.5%

 

(233 bps)

Financial Income and Loss

Table 7: 2Q20 Net finance result

(Figures in US dollars)

 

2Q 2019

 

2Q 2020

 

Chg.

 

% Chg.

Exchange differences

950,126

 

(4,551,732)

 

(5,501,858)

 

(579.1%)

Interest expenses

(7,134,751)

 

(6,352,266)

 

782,485

 

(11.0%)

Financial commissions

(762,094)

 

(530,457)

 

231,637

 

(30.4%)

Other finance result

544,062

 

4,132,604

 

3,588,542

 

659.6%

Net gain of inflation effect on monetary items

5,579,039

 

3,830,222

 

(1,748,817)

 

(31.3%)

Total net finance result

 

(823,618)

 

(3,471,629)

 

(2,648,011)

 

321.5%

Interest expense from financial debt obligations represents the main financial metric that management uses to assess cost of financing. Exchange rate differences, net gains or losses of the inflation effect on monetary items, and other financial results include items that are believed to have a limited impact on the underlying business as a significant portion of both cash flows and financial debt obligations are linked to the US dollar.

During fiscal 2Q20 the Company reported a total net financial loss of $3.5 million compared to a net financial loss of $0.8 million in fiscal 2Q19. Cash financial expenses represented by interest expenses and financial commissions decreased $1.0 million due to a more efficient debt structure. Total non-cash financial results decreased $3.7 million as a result of a negative variation of $5.5 million in exchange rate differences and a $1.7 million decrease from net gain of inflation effect on monetary items, which was partially offset by a positive variation in other financial results for a total of $3.6 million.

Table 8: 1H20 Net finance result

(Figures in US dollars)

 

1H 2019

 

1H 2020

 

Chg.

 

% Chg.

Exchange differences

(12,111,338)

 

(16,064,570)

 

(3,953,232)

 

32.6%

Interest expenses

(11,177,537)

 

(11,422,645)

 

(245,108)

 

2.2%

Financial commissions

(1,058,499)

 

(781,528)

 

276,971

 

(26.2%)

Other finance result

(77,700)

 

2,436,175

 

2,513,875

 

(3235.4%)

Net gain of inflation effect on monetary items

9,865,802

 

5,963,892

 

(3,901,910)

 

(39.5%)

Total net finance result

 

(14,559,272)

 

(19,868,676)

 

(5,309,404)

 

36.5%

For fiscal 1H20, the Company reported a net financial loss of $19.9 million compared to a net financial loss of $14.6 million in fiscal 1H19. Cash financial expenses decreased $0.03 million as a $0.3 million decline in financial commissions more than offset a $0.2 million increase in interest expenses. Total non-cash financial results decreased $5.3 million as a result of a negative variation of $4.0 million in exchange rate differences and $4.0 million decrease from net gain of inflation on monetary items, which was partially offset by a positive variation in other financial results for a total of $2.5 million.

Balance Sheet & Cash Flow

Table 9: Capitalization and Debt Ratio

(Figures in US dollars)

As of December 31,

 

2018

 

2019

Total Debt 1

 

 

 

- Short-Term Debt

93,518,145

 

66,982,391

- Long-Term Debt

18,026,397

 

40,082,075

Cash and Cash Equivalents

(4,251,154)

 

(10,568,858)

Restricted short-term deposit

(4,327,670)

 

(4,369,254)

Total Net Debt

102,965,718

 

92,126,354

Equity attributable to equity holders of the parent

24,830,569

 

46,741,879

Equity attributable to non-controlling interests

30,013,719

 

14,325,877

Capitalization

157,810,006

 

153,194,110

LTM Adjusted EBITDA

35,617,261

 

41,312,661

Net Debt /LTM Adjusted EBITDA

2.89x

 

2.23x

1- Excludes discounted checks.

 

Cash and cash equivalents on December 31, 2019 were $10.6 million. As of June 2019, cash and cash equivalents increased by $7.1 million, while the total debt balance decreased by $0.7 million to $92.1 million.

During fiscal 2Q20, the Company made capital expenditures of $0.4 million compared to $1.3 million in fiscal 2Q19. For fiscal 1H20, total capital expenditures amounted to $1.0 million. Bioceres has an asset base in place to support near and long-term growth. Therefore, funds invested in the first half of the year were primarily used for maintenance capex.

Net Debt to LTM Adjusted EBITDA improved to 2.23x in 2Q20 from 2.89x reported at the end of fiscal 2Q19 and from 2.24x at the close of fiscal 4Q19. Sequentially, the debt ratio increased from 2.14x at the end of fiscal 1Q20, reflecting higher debt levels in fiscal 2Q20 to finance working capital needs to support the high planting season in the southern cone.

SUBSEQUENT EVENTS

Rizobacter Subsidiary Enters Distribution Agreement with Brett Young

In January 2020 Bioceres’ subsidiary Rizobacter appointed Canadian seed company Brett Young as a distribution partner for its branded products in Western Canada and the U.S. Northern Plains. Through this agreement, Rizobacter’s biologicals, which incorporate novel technologies and offer significant improvements to on-seed life and liquid inoculant performance, will now be available to soybean and pulse growers for the first time in many of these geographies.

2Q20 EARNINGS CONFERENCE CALL

When:

February 11, 2020

Times:

8:00 a.m. Eastern time

Who:

Mr. Federico Trucco, Chief Executive Officer

 

Mr. Enrique Lecube, Chief Financial Officer

 

Mr. Maximo Goya, Investor Relations Leader

Dial-in:

1-844-839-9680 (U.S. domestic); 1-647-689-2346 (International)

Conference ID:

3459619

Webcast:

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

About Bioceres Crop Solutions Corp.

Bioceres Crop Solutions Corp. (NYSE American: BIOX) is a fully integrated provider of crop productivity technologies designed to enable the transition of agriculture towards carbon neutrality. 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 https://investors.biocerescrops.com

Forward-looking statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-IFRS Financial Information

The Company supplements the use of IFRS financial measures with non-IFRS financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Net debt, Comparable revenues and Comparable gross profit which exclude the impact of IAS29 as explained below.

The non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and may be different from non-IFRS measures used by other companies. In addition, the non-IFRS measures are not based on any comprehensive set of accounting rules or principles. Non-IFRS measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with IFRS. This non-IFRS financial measures should only be used to evaluate the Company’s results of operations in conjunction with the most comparable IFRS financial measures.

 

Adjusted EBITDA and Adjusted EBITDA Margin

The Company defines Adjusted EBITDA as profit/(loss) exclusive of financial income/(costs), income tax benefit/(expense), depreciation, amortization, share-based compensation, inventory purchase allocation and one-time transactional expenses.

Management believes that Adjusted EBITDA provides useful supplemental information to investors about the Company and its results. Adjusted EBITDA is among the measures used by the management team to evaluate the Company’s financial and operating performance and make day-to-day financial and operating decisions. In addition, Adjusted EBITDA and similarly titled measures are frequently used by competitors, rating agencies, securities analysts, investors and other parties to evaluate companies in the same industry. Management also believes that Adjusted EBITDA is helpful to investors because it provides additional information about trends in the Company’s core operating performance prior to considering the impact of capital structure, depreciation, amortization and taxation on results. Adjusted EBITDA should not be considered in isolation or as a substitute for other measures of financial performance reported in accordance with IFRS. Adjusted EBITDA has limitations as an analytical tool, including:

The Company compensates for the inherent limitations associated with using Adjusted EBITDA through disclosure of these limitations, presentation in the combined financial statements in accordance with IFRS and reconciliation of Adjusted EBITDA to the most directly comparable IFRS measure, income/(loss) for the period or year.

 

Comparable figures or Figures ex-IAS 29 (Comparable revenue and Comparable gross margin)

Comparable figures or Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine operations by the average foreign exchange rate of the Argentine Peso against the US Dollar in the period.

For comparison purposes, the impact of adopting IAS 29 is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”. The IAS 29 adjustment results from the combined effect of: (i) the indexation to reflect changes in purchasing power on results against a dedicated line in the financial results, and (ii) the difference between the translation of results at the closing exchange rate of June 30, 2019 and the translation using the average year-to-date rate on the reported period, as applicable to non-inflationary economies.

 

Net Debt and Net Debt to Adjusted EBITDA

Net debt is defined as the sum of long and short-term borrowings and finance payment from business combinations, less cash and cash equivalents and restricted short-term deposit. This measure is used by management and investment analysts and management believes it shows the financial strength of the Company. Management is consistently tracking the Company’s leverage position and its ability to repay and service the debt obligations over time. Therefore, management has set a leverage ratio target that is measured by net debt divided by Adjusted EBITDA.

Application of IAS 29

Argentina has been classified as a hyperinflationary economy under the terms of IAS 29 beginning July 1, 2018. IAS 29 requires, adjusting all non-monetary items in the statement of financial position by applying a general price index from the day they were booked to the end of the reporting period. At the same time, it also requires that all items in the statement of income are expressed in terms of the measuring unit current at the end of the reporting period. Consequently, on a monthly basis, results of operations for each reporting period are measured in Argentine Pesos and adjusted for inflation by the applicable monthly inflation rate each month. All amounts need to be restated by applying the change in the general price index from the dates when the items of income and expenses were initially recorded in the financial statements. As a result, each monthly results of operations are readjusted each successive month to reflect changes in the monthly inflation rate.

After the restatement explained above, IAS 21 “The Effects of Changes in Foreign Exchange Rates”, addresses the way results must be translated under inflation accounting, stating that all amounts shall be translated at the closing rate at the date of the most recent statement of financial position. Accordingly, monthly results of operations in Argentine Pesos, after adjustment for inflation pursuant to IAS 29, as described above, must then be converted into U.S dollars at the closing exchange rate for such monthly reported period. This conversion changes every prior reported monthly statement of income in U.S dollars as each monthly amount is readjusted under IAS 29 for inflation per above and reconverted at different exchange rates for each monthly reported period under IAS 21. As a result, the impact of monthly inflationary adjustments and monthly conversion adjustments vary the results of operation month to month until year end.

-Tables to Follow-

 

Unaudited Consolidated Statement of Comprehensive Income

(Figures in US dollars)

Three-month period ended

Three-month period ended

 

Six-month period ended

Six-month period ended

12/31/2018

12/31/2019

 

12/31/2018

12/31/2019

 

 

 

Total revenue

62,459,242

62,994,288

 

92,071,466

99,245,946

Cost of sales

(33,153,669)

(32,962,728)

 

(47,652,679)

(53,307,802)

Gross profit

29,305,573

30,031,560

 

44,418,787

45,938,144

% Gross profit

47%

48%

 

48%

46%

 

 

 

Operating expenses

(10,627,267)

(11,421,021)

 

(17,756,244)

(21,309,671)

Share of profit (loss) of JV

732,437

1,240,958

 

812,593

1,298,505

Other income or expenses, net

(400,173)

(286,534)

 

(298,562)

(181,566)

Operating profit

19,010,570

19,564,963

 

27,176,574

25,745,412

 

 

 

Finance result

(823,618)

(3,471,629)

 

(14,559,272)

(19,868,676)

Loss before income tax

18,186,952

16,093,334

 

12,617,302

5,876,736

 

 

 

Income tax

(7,021,142)

(3,443,508)

 

(5,050,749)

(1,204,655)

Loss for the year

11,165,810

12,649,826

 

7,566,553

4,672,081

 

 

 

Other comprehensive loss

13,883,530

5,834,121

 

(2,511,723)

(7,566,525)

Total comprehensive loss

25,049,340

18,483,947

 

5,054,830

(2,894,444)

 

 

 

Profit / (loss) for the period attributable to:

 

 

 

Equity holders of the parent

6,847,451

11,314,881

 

4,229,006

4,264,504

Non-controlling interests

4,318,359

1,334,945

 

3,337,547

407,577

 

11,165,810

12,649,826

 

7,566,553

4,672,081

Total comprehensive income / (loss) attributable to:

 

 

 

Equity holders of the parent

16,505,763

16,286,073

 

2,258,578

(2,427,318)

Non-controlling interests

8,543,577

2,197,874

 

2,796,252

(467,126)

 

25,049,340

18,483,947

 

5,054,830

(2,894,444)

 

 

Unaudited Consolidated Statement of Financial Position

(Figures in US dollars)

12/31/2019

 

06/30/2019

ASSETS

 

CURRENT ASSETS

 

Cash and cash equivalents

10,568,858

 

3,450,873

Other financial assets

5,018,453

 

4,683,508

Trade receivables

77,760,561

 

59,236,377

Other receivables

3,731,810

 

1,981,829

Income and minimum presumed income taxes recoverable

80,039

 

1,263,795

Inventories

31,907,682

 

27,592,582

Total current assets

129,067,403

 

98,208,964

  

NON-CURRENT ASSETS

 

Other financial assets

334,615

 

376,413

Other receivables

1,752,131

 

1,560,310

Income and minimum presumed income taxes recoverable

5,600

 

1,184

Deferred tax assets

1,987,574

 

3,743,709

Investments in joint ventures and associates

24,270,981

 

25,321,028

Property, plant and equipment

41,586,032

 

43,834,548

Intangible assets

35,298,224

 

39,616,426

Goodwill

26,468,268

 

29,804,715

Right-of-use leased asset

807,833

 

-

Total non-current assets

132,511,258

 

144,258,333

Total assets

261,578,661

 

242,467,297

  
  

LIABILITIES

12/31/2019

 

06/30/2019

CURRENT LIABILITIES

 

Trade and other payables

55,356,154

 

40,578,494

Borrowings

71,083,500

 

66,477,209

Employee benefits and social security

4,662,697

 

5,357,218

Deferred revenue and advances from customers

5,749,476

 

1,074,463

Income and minimum presumed income taxes payable

2,109,114

 

142,028

Government grants

1,495

 

2,110

Financed payment - Acquisition of business

-

 

2,826,611

Lease liability

657,633

 

-

Total current liabilities

139,620,069

 

116,458,133

  

NON-CURRENT LIABILITIES

 

Trade and other payables

452,654

 

452,654

Borrowings

40,082,075

 

37,079,521

Government grants

4,243

 

8,098

Due to joint ventures and associates

1,704,901

 

1,970,903

Deferred tax liabilities

16,328,476

 

21,101,871

Provisions

287,325

 

439,740

Warrants

1,302,524

 

2,861,511

Lease liability

528,179

 

-

Total non-current liabilities

60,890,836

 

63,914,298

Total liabilities

200,510,905

 

180,372,431

  

EQUITY

 

Equity attributable to owners of the parent

46,741,879

 

47,301,863

Non-controlling interests

14,325,877

 

14,793,003

Total equity

61,067,756

 

62,094,866

  

Total equity and liabilities

261,578,661

 

242,467,297

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20200211005412/en/

CONTACT: Investor Relations

Maximo Goya, Investor Relations

+54-341-4861100

maximo.goya@biocerescrops.com

KEYWORD: ARGENTINA SOUTH AMERICA

INDUSTRY KEYWORD: AGRICULTURE SCIENCE NATURAL RESOURCES OTHER SCIENCE

SOURCE: Bioceres Crop Solutions Corp.

Copyright Business Wire 2020.

PUB: 02/11/2020 06:00 AM/DISC: 02/11/2020 06:00 AM

http://www.businesswire.com/news/home/20200211005412/en