Marrone Bio sees 1Q revenue grow 14% on improved balance sheet amid strong biological crop protection sales

Marrone Bio Innovations Inc (NASDAQ) reported its 11th consecutive growth quarter with revenues increasing 14% year-over-year to $11 million. The Davis, California-based group attributed the revenue growth to “further market penetration” for its biological crop protection products, particularly driven by its Venerate, Grandevo, and Regalia brands. Marrone CEO Kevin Helash told shareholders in a statement that the firm was getting closer to breaking even on an adjusted EBITDA basis after the firm posted a loss of $1.2 million, compared to the $3.7 million adjusted EBIDTA loss it put up a year ago. READ: Marrone Bio says its BIOSt Nematicide seed treatment product achieved outstanding climate impact score of 9.8 out of 10 “We have had a solid start to 2021, and the improvement in adjusted EBITDA for the quarter is an early indicator of the progress we intend to make this year as we move ever closer to breakeven on an adjusted EBITDA basis,” Helash told investors. “Our success in the first quarter underscores our confidence in our ability to deliver full-year revenue growth in the upper 20% range with target annual gross margins in the upper 50% range, while we manage operating expenses to 2020 levels, plus inflation.” Marrone said that a “favorable” product mix and improved absorption of manufacturing overhead resulted in a 25% increase in gross profit to $7 million, while gross margins improved to 63.1%. The firm’s 1Q net loss came in at $3.3 million versus the $7 million in the comparable year-ago quarter as a function of higher sales and better margins as well as lower operating expenses. CEO Helash added that the company’s focus is now on major row crops in the second quarter, particularly in the Northern Hemisphere. “We anticipate continued adoption of our novel seed treatments to drive further expansion globally, as will the launch of four new products in the major US and European markets,” Helash added. “The value of our sustainable biological solutions continues to be borne out scientifically with the recent, highly positive Climate Impact Score for our nematicide seed treatment and, most important, with broader use on farm of all our products.” Global seed treatment opportunities The firm plans to launch three new seed treatments in Europe this year and is working with some large seed companies in Brazil trialing its biologicals. The global seed treatment market is forecasted to grow at approximately a 12% CAGR through 2025, according to data provided by Markets and Markets. Helash noted that Marrone’s revenue growth rate from seed treatments over the past four years was “more than double” that of the industry, which the company expects to continue. “We are offering the right products at the right time,” Helash told shareholders in a separate note. “In four short years, we have expanded our seed treatment portfolio from one product to five. We expect MBI biological seed treatments will be used on approximately 11 million acres of soybeans, corn and cotton in the United States this year. In Europe, we anticipate more than 24 million acres of corn, sunflower and rapeseed will be treated with products based on our UBP technology in the 2021 planting season. “The good news is that we have an established market presence; the better news is that the opportunity ahead of us is larger than what we’ve already achieved." Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas