Bioceres Crop Solutions announced its consolidated financial results for the fiscal third quarter 2020 and the nine-month fiscal period ended March 31, 2020.
During the period, the company’s revenues increased 9%, with growth in key product lines and in strategic markets. The rise was driven by a greater participation in the crop protection market in Brazil, Paraguay and Uruguay, in addition to a significant increase in sales of packs for seed treatment in Europe, and a recovery in the same sector in Argentina.
On the other hand, the company issued capital for more than 50 million dollars during the quarter, through the private placement of a convertible note maturing in 2023 for 42.5 million dollars, and the issuance of public bonds through Rizobacter Argentina, its main operating subsidiary, for $ 7.6 million.
The issued capital is equivalent to a significant portion of the company’s short-term financial debt, which implies a material strengthening of the balance sheet and the cash position. A stronger capital structure in turn ensures access to the working capital needed to support advances in the HB4 program during the upcoming wheat and soybean campaigns in the Southern Cone.
Regarding the preparation for commercial launch of HB4 drought tolerant soybean varieties, this product was exhibited at Expoagro 2020. There the number of registered producers for the next seed multiplication cycle exceeded the surface by almost ten times. maximum potentially available. Considering current demand levels and the ongoing HB4 soybean harvest, the company believes it has a solid basis for planting an area during the next summer crop season that would allow it to achieve sufficient seed inventories for hundreds of thousands of hectares in 2021.
On the other hand, the plans regarding the HB4 technology in wheat remain unchanged, with an area target of up to 12,000 hectares already reserved for sowing in the following months in the framework of the winter crops campaign in Argentina.
After presenting the results, Federico Trucco, CEO of Bioceres, said: “We operate in a privileged industry and this has never been more clear than during these COVID-19 times.”
“Greater penetration of international markets, including Europe, fueled much of this growth as we continue to effectively execute our global expansion strategy”, Trucco said, noting that “looking to the future, through placement of capital carried out in March, we have achieved the financial strength necessary to substantially increase inventories of HB4 seeds in their different varieties, which will be integrated with our patented biological seed treatments ”.