Marrone Bio Innovations Inc (NASDAQ:MBII) reported third-quarter revenue Monday that grew 27% year-over-year to $8.8 million thanks in part to the company’s strategic expansion in international and seed treatment markets.
In the US, Marrone’s biological seed treatments for corn and soybeans are entering their third year on the market and delivered a sales increase in the three months ended September 30. Elsewhere, sales also benefited from the introduction in Latin America of a new foliar treatment to promote plant health for soybeans.
That helped lead to an adjusted net loss that narrowed 63% to $6.1 million from $16.4 million in the same period a year earlier. Gross profit, meanwhile, increased 40% to $5 million from $3.6 million.
“Our third-quarter results were particularly encouraging as we delivered on our ambitions to expand our international presence and to further penetrate the seed treatment market for row crops,” CEO Kevin Helash said in a statement. “The benefit of this strategic shift was reflected in another quarter of gross margins in line with our annual target in the mid-50% range, and sales that keep us on track to achieve full-year revenue growth in the range of our historical levels.”
Heash noted that the second half of the year normally means lower revenue, but that the company remains on pace to maintain its growth.
“While we are expanding our business in Latin America, the second half of the year is typically a smaller period for us in terms of revenue,” Helash added. “While we anticipate that our 2020 full-year revenues will be in the range of our historical growth rate, we continue to believe that our sales mix will continue on the historical trend of being stronger in the first half of the year than the second, and will continue to do so as we move forward.”
On a nine-month basis, revenue increased 35% from 2019 to 2020 ( $30.7 million compared to $22.7 million). The company’s adjusted net loss was $16 million, a 41% increase from $27 million.
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.
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