Marrone Bio Innovations Inc (NASDAQ:MBII) posted third-quarter results after the bell Tuesday that saw revenue jump 28% year-over-year on the back of the company’s specialty crop and cultivated garden businesses.
The bioprotection and plant health company reported revenue of $7 million for the three months ended September 30, up from $5.4 million a year earlier -- beating Street estimates of $6.95 million.
Marrone attributed the growth to a strong demand in the grapes, tomatoes, rice, hops, tree nuts and fruits markets in the US. On top of that, its cultivated garden business did well, thanks in part to sales to hemp producers.
“The third quarter was significant on several fronts,” CEO Pam Marrone said in a statement. “We continue to drive sales growth from our core business and are adding exciting new platforms with the acquisitions of the Jet-Ag and Jet-Oxide product lines as well as Pro Farm’s biostimulant and bionutrient business.”
The company posted a net loss of $0.14 per share compared to a loss of $0.04 per share in 2018. Analysts had called for a loss of $0.05 per share.
The wider loss, the company said, was due in part to higher operating expenses attributed to $4.1 million in acquisition- and litigation-related expenses, as well as a $6.3 million non-cash charge related to the estimated fair value of a warrant exercise made under the company’s new financing facility.
Also in the quarter, the Davis, California-based company received positive results from tests of its bioherbicide in controlling its target weed. Marrone has received a US patent covering claims related to the pre- and post-emergent herbicidal activity to control weeds.
“The investments in our R&D programs have proven fruitful, especially with our novel bioherbicide that has produced results that give us [a] solid foundation to move this project forward,” Marrone said. “We are making the strategic choices and investments that we expect will deliver on the potential of Marrone Bio to address our growers’ bottom line and sustainability needs as well as our stakeholders’ expectations for accelerated growth.”
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