22 January 2022, Raleigh, North Carolina: Marrone Bio Innovations, Inc. (NASDAQ: MBII), an international leader in providing growers with sustainable bioprotection and plant health solutions to support global agricultural needs, today released an update letter to shareholders from Chief Executive Officer Kevin Helash announcing preliminary financial results for the fourth quarter and fiscal year ended December 31, 2021.
Dear Shareholders,
As we begin 2022, I’d like to provide you with a brief update on how we completed 2021, plus a high-level view of the upcoming season in the Northern Hemisphere. Despite external headwinds associated with weather and COVID-related market disruptions in the first half of the year, 2021 ended on a strong note.
I am pleased to report that fourth quarter 2021 revenues are estimated to reflect growth in the mid-30% range, as compared with fourth quarter 2020 revenues. For the second half of 2021, revenues are estimated to have increased 20+% when compared with revenues in the second half of 2020. On a full year basis, we estimate revenue growth in the low double-digit to mid-teens range for 2021 as compared with 2020, in line with our forecast.
We made positive headway on a number of other key financial metrics in 2021. We expect that annual gross margins for 2021 will be on track with our target of the upper 50% range, and full-year operating expenses will be relatively flat when compared with those in the prior year. Collectively, these results are expected to contribute to improvements in Adjusted EBITDA and cash from operations – two key measures of long-term value creation. We benefited from the continuing support of warrant holders, who exercised the fifth and final tranche of their warrants in December to help fulfill our long-term investment needs. Overall, we remain in a healthy financial position to execute on our strategy. We will provide further detail on the fourth quarter and the full-year results, plus the financial outlook for 2022, when we report earnings in March.
We were encouraged by orders placed in the latter part of the quarter, an important indicator of our customers’ plans for the first half of 2022. Our seed treatment solutions were in high demand, especially in Europe for Takla™ – our newly launched bio-nutritional product – and in the United States for BIOSt® Bionematicide – a seed treatment for soybeans and corn. Distributor orders in the Americas also were particularly strong for our crop protection products Regalia® Biofungicide, Venerate® XC Bioinsecticide and Grandevo® WDG Bioinsecticide in specialty crops, and for Pacesetter®, our recently launched crop health solution for row crops.
We made major strides in advancing key products in our rich research and development (R&D) pipeline. As announced previously, we have submitted MBI-306 – our second-generation bioinsecticide/bionematicide – for regulatory approval in the United States. We anticipate this product will deliver peak potential revenue of approximately $100 million per year, with a product launch targeted for 2023/2024. Additionally, MBI-206 bionematicide has been submitted to Brazilian regulatory authorities for approval for use in soil and seed treatments.
We also recently announced our acquisition of exclusive rights to high-performing strains of a microorganism with a novel mode of action that we believe will accelerate the advancement of our bioherbicide, MBI-006. This breakthrough product has the potential to give growers a new, more sustainable option for controlling grassy and broadleaf weeds – and is particularly important for weeds that have developed resistance to conventional herbicides – with a compelling return on investment versus conventional products. We believe our suite of alternative solutions to weed control will allow us to make a competitive entry into the $27 billion global herbicide market.
To close, we are optimistic about the upcoming spring season in the Northern Hemisphere. The western United States has received much needed rain and snow, which is positive for our specialty crop customers. Strong commodity prices in the major row crops have boosted grower income, and our sustainable, cost-effective options are highly attractive in this environment. This is true not only in the United States, but also in Europe and Latin America, where our work to establish a meaningful presence is poised to deliver in 2022.
I am particularly grateful for the dedication of our employees as we addressed the numerous challenges of 2021 and emerged well positioned to deliver long-term future success. On behalf of everyone at Marrone Bio, our thanks for your continued support of our company and of our commitment to bringing breakthrough sustainable agricultural solutions to growers around the world. We remain confident that, going forward, MBI is well positioned to outpace our peers in the ag biological industry.
All the best,
Kevin Helash Chief Executive Officer
The anticipated results discussed in this press release are based on management’s preliminary, unaudited analysis of financial results for the three months and year ended December 31, 2021. As of the date of this press release, the company has not completed its financial statement reporting process for the three months and year ended December 31, 2021, and the company’s independent registered accounting firm has not audited the preliminary financial data discussed in this press release. During the course of the company’s quarter- and year-end closing procedures and review process, the company may identify items that would require it to make adjustments, which may be material to the information presented above. As a result, the estimates above constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary operating results. The company expects to report complete fourth quarter and full year 2021 financial results in March 2022.
