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Marrone Bio posts rosy 2Q results as sales of biologicals continue to grow

The biopesticide company reported revenue of $12.2 million in the three months ended June 30, 2020, up 74% from the $7 million posted in the same period of 2019

Sprouts growing from stacks of quarters leading to a jar of quarters
Marrone Bio holds more than 400 issued and pending patents and has brought six EPA-registered biological product lines and one biostimulant to market

Marrone Bio Innovations Inc (NASDAQ:MBII) announced record revenue and gross profit that doubled year-over-year in second-quarter results released after the bell Monday. 

The biopesticide company reported revenue of $12.2 million in the three months ended June 30, 2020, up 74% from the $7 million posted in the same period of 2019. The quarter was Marrone’s eighth consecutive period of year-over-year growth, made possible this time around by growing sales of its row crop treatments and other fungicides. 

Gross profit was $7.4 million, nearly double the $3.8 million it recorded in the second quarter last year. Its net loss, meanwhile, was more than cut in half, dropping to $2.9 million from $6.8 million.

READ: Marrone Bio joins forces with Vive Crop Protections to develop next-generation biologicals

“The second-quarter financial results highlight the momentum our team has created, as well as the opportunity to accelerate our commercial velocity and break out as a market leader,” new CEO Kevin Helash said in a statement  “Our goals to drive profitability are gaining traction as the company transforms itself into a top-tier commercial-scale player in the biological agriculture sector.”

Helash only took the reins at Marrone on August 3, but he was impressed with the performance of the company’s BioUnite products last quarter, namely its Regalia fungicide and Venerate insecticide.

“This has been a strong start to the year, and it is the foundation from which we can leverage our base business, execute our expansion plans and broaden our global reach,” Helash added.

"Coupled with a customer-centric culture, and a focus on the execution of our operational and financial objectives, I believe the path to profitability can be accelerated, which will, in turn, create enhanced shareholder value.”

Looking ahead, Helash is optimistic about the integration of Pro Farm, Marrone’s September 2019 acquisition, and its ability to bring in revenue. 

“We expect to drive continued revenue growth and international expansion in the second half of the year, with gross margins in line with achieving our annual target in the mid-50% range,” he added.

“The integration of the Pro Farm acquisition is going very well, and is tracking to be accretive to net income and cash from operations this year, as we had forecast. While we remain optimistic about the remainder of the fiscal year, plans remain in place for the potential effect that the COVID-19 pandemic may have on macro conditions in the agricultural sector.”

Based in Davis, California, Marrone Bio holds more than 400 issued and pending patents and has brought six US Environmental Protection Agency-registered biological product lines and one biostimulant to market. 

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Quick facts: Marrone Bio Innovations

Price: 1.53 USD

NASDAQ:MBII
Market: NASDAQ
Market Cap: $256.24 m
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