ROSARIO, ARGENTINA — Total revenues at Bioceres Crop Solutions, maker of genetically modified HB4 wheat and other crop production technologies, grew 11% to $464.8 million in fiscal year 2024, largely driven by HB4 sales, adjuvants and biostimulants amid improved weather in the Southern Hemisphere, though operating profit and net income declined.
In its Sept. 9 earnings report for the fiscal year ended June 30, Bioceres said its operating profit was $44.8 million, down from $54.2 million the previous year, with net income at $6.2 million, down 69% from $20.2 million. Adjusted EBITDA for the full fiscal year was $81.4 million, steady compared to $81.2 million in fiscal year 2023.
“In fiscal year 2024, we consolidated Bioceres’ financial performance at record-high revenue and adjusted EBITDA levels, despite it having been another challenging year for agriculture, with on-farm economics declining in key crops and geographies,” said Federico Trucco, chief executive officer of Bioceres. “The annual result was achieved through sales growth and an almost doubling of adjusted EBITDA in the fourth and final quarter of the year, with close to half of the increased profitability of the quarter resulting from the HB4 business.”
HB4 wheat was approved in August for cultivation in the United States, the fourth largest wheat producer in the world and the largest in the Americas. The United States is now the fourth country in the world to greenlight production of HB4 wheat, following Argentina, Brazil and Paraguay, and a much-anticipated development, the company said.
“This regulatory endorsement helps us in markets where we are already scaling HB4 sales, as it provides additional validation or regulatory comfort,” Trucco said. “In the medium term, it allows us to expand into a new and important geography, potentially doubling the combined opportunity of Latin America and Australia.”
Biostimulant sales in Europe also contributed to the year-over-year increase in revenues. Gross profit remained flat given the lower accrual of Syngenta’s upfront payment in the product mix compared to the previous year, Bioceres said.
Patent protection for Bioceres’ UHC biological nitrogen fixation solution was obtained during the year, as well as regulatory clearance for its bio-insecticide platform in Brazil, both of which are essential for near-term expansion in the high-growth seed-applied technologies market, the company said.
These developments paced a strong finish to the fiscal year in the fourth quarter. Revenues in the fourth quarter were $124 million, an 18% growth year on year, primarily led by higher HB4 sales as winter wheat season got underway in the Southern Hemisphere. Operating profit was $9.5 million, and net loss was $2.1 million, improving by 86% and 25%, respectively. Adjusted EBITDA for the quarter was $19.9 million, almost doubling last year’s $10.5 million.
“As we look ahead, we remain focused on launching and scaling our portfolio of unique technologies, while constantly engaging with farmers and other stakeholders to fine-tune our value proposition and market access strategies,” Trucco said.