Bioceres Crop Solutions (BIOX)2024-11-27 21:01Financial Performance - Revenues from contracts with customers increased to 419.45 million in 2023, representing an increase of 10.4%[28]. - Operating profit decreased to 54.18 million in 2023, a decline of 17.2%[28]. - Profit for the year attributable to equity holders of the parent was 18.78 million in 2023, a decrease of 82.8%[28]. - Basic profit per share attributable to ordinary equity holders of the parent was 0.3022 in 2023, a decline of 82.9%[28]. - Total comprehensive profit for the year was 19.34 million in 2023, a decrease of 71.7%[30]. - The company reported a profit before income tax of 19.11 million in 2023, a decrease of 47.5%[28]. - For the fiscal year ending June 30, 2024, the profit for the year was 20,174,599 in 2023[38]. Assets and Liabilities - Total assets increased to 818.06 million in 2023, reflecting a growth of 4%[22]. - Trade receivables rose significantly to 158.01 million in 2023, marking a 31% increase[22]. - Current liabilities increased to 298.71 million in 2023, representing a growth of 10%[25]. - Total liabilities rose to 487.56 million in 2023, indicating a growth of 3%[25]. - Equity attributable to owners of the parent increased to 298.59 million in 2023, indicating a growth of 5%[25]. - Goodwill associated with cash-generating units amounted to 112.16 million in 2023[15]. - Deferred tax assets increased to 7.31 million in 2023, reflecting a growth of 33%[22]. - The company’s inventories decreased to 140.43 million in 2023, a decline of 10%[22]. - Non-controlling interest increased to 31.90 million in 2023, representing a growth of 12%[25]. Cash Flow and Investments - Net cash flows generated by operating activities for 2024 were 2,588,792 in 2023[38]. - Total cash flows used in investing activities amounted to (25,725,670) in the previous year, indicating increased investment outflows[41]. - Net cash flows used in financing activities were 32,954,000 in the prior year, indicating a shift in financing strategy[41]. - Cash and cash equivalents at the end of the year decreased to 48,129,194, reflecting a reduction in liquidity[41]. - Proceeds from borrowings rose to 79,817,888 in the previous year, reflecting a strong financing activity[41]. Research and Development - Research and development expenses increased to 15.35 million in 2023, an increase of 11.9%[28]. - The company reported a significant increase in capitalized development expenditures to (10,753,047) year-over-year, highlighting ongoing investment in R&D[41]. - The research and development process for seed traits includes six phases: discovery, proof of concept, early development, advanced development and deregulation, pre-launch, and product launch[149][150][151][152][153][154]. Business Operations and Strategy - The company operates in over 45 countries, primarily in South America, the United States, and Europe, showcasing its extensive market reach[45]. - Bioceres has established a global commercial strategy following the merger with Pro Farm, aiming to unify pricing policies for its products[57]. - The Group acquired a controlling interest in Pro Farm Group Inc. on July 12, 2022, and in Natal Agro S.R.L. on June 1, 2024[71][72]. - The Group's subsidiary, Bioceres Crops S.A., has a 90% equity interest, while Rizobacter USA, LLC and other subsidiaries maintain an 80% equity interest[70]. Financial Reporting and Standards - The Group's financial statements reflect the adoption of new standards and amendments, including IAS 12 and IAS 1, which did not have a material impact on the Group[76][79]. - The Group is currently analyzing the potential impact of new IFRS standards effective in 2024 and beyond on its financial statements[81]. - The Group employs the "Predecessor value method" for business combinations under common control, accounting for acquired assets and liabilities at existing carrying values[101]. Share-Based Payments and Equity - Share-based incentives and stock options accounted for 3,415,108 in 2023[38]. - The fair value of equity-settled share-based payment transactions is measured at grant date using the Black-Scholes formula, considering the potential dilutive effect of future share options[193]. - As of June 30, 2024, the total consideration for shares issued was 29 in cash payments[196]. Impairment and Valuation - Impairment tests on goodwill and intangible assets are conducted annually, with impairment losses recognized in profit or loss, and goodwill impairment losses are not reversible[106]. - The Group's property valuation relies on independent appraisals and market conditions, with significant assumptions affecting the determination of fair value[130]. - The Group assesses impairment indicators for investments in joint ventures and performs recoverability analyses based on cash flow projections[120].