Q4 2025 Bioceres Crop Solutions Corp Earnings Call

Drew: Apologies. Welcome all to the Bioceres Crop Solutions Corp. fiscal fourth quarter and full year 2025 financial results. My name is Drew, and I'll be the operator on the call today. During the call, we will have a Q&A session after the prepared remarks. If you would like to register for a question, please press star followed by one on your telephone keypad. If you wish to withdraw your question, it is star followed by two. With that, it's now my pleasure to hand over to Paula Savanti from Investor Relations to begin. Please go ahead when you're ready.

Apologies welcome all to the bio theorist, crop Solutions, fiscal fourth quarter and full year 2025 Financial results. My name is Drew and I'll be the operator on the call today.

During the call, we will have a Q&A session after the prepared remarks, if you would like to register for a question, please press Start, followed by 1 on your telephone keypad and if you wish to withdraw your question, then it is star followed by 2.

With that, it's not my pleasure to hand over to Paula Santee from Investor Relations to begin. Please go ahead when you're ready.

Paula Savanti: Thank you. Good morning, everyone, and welcome to Bioceres Crop Solutions Corp. fiscal fourth quarter and full year 2025 earnings conference call. Our prepared remarks today will be led by our Chief Executive Officer, Federico Trucco, and myself as Head of Investor Relations. Both of us will be available for the Q&A session following the presentation. During this call, we will make forward-looking statements. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. I refer you to the forward-looking statements section of the earnings release and presentation, as well as the recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed circumstances. Please note, in today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in our earnings press release.

Thank you. Good morning everyone. And welcome to bios service crop Solutions, fiscal fourth quarter and full year 2025 earnings conference call.

Our prepared remarks today will be led by our Chief Executive Officer, Federico, and myself as Head of Investor Relations.

Both of us will be available for the Q&A session. Following the presentation,

Paula Savanti: The conference call is being webcast, and the webcast link is available at our Investor Relations website. It is now my pleasure to turn the call over to Federico.

We assume no obligation to update or revise, any forward-looking statements to reflect new or changed circumstances. Please note. In today's presentation, we'll be making references to certain non-gaap Financial measures. Reconciliations of the non-gaap. Measures can be found in our earnings press release.

The conference call is being webcast, and the webcast link is available at our investor relations website.

It is now my pleasure to turn the call over to Federico.

Federico Trucco: Good morning, and thanks everyone for participating in today's call. Please turn to slide number three. I wanted to start today's call by looking at this year's performance, considering the trajectory of our company since 2019. 2019 is the year we launched Bioceres Crop Solutions Corp. to the public equity markets. As you can see, this is the first down year in the series, and one that comes with important lessons in terms of risk management and financial prudence, which I'll address towards the end of the presentation today. We are reporting a very disappointing final quarter to an extremely challenging fiscal year. Challenges in fiscal 2025 cannot be attributed to a single factor, but we understand rather stem from a combination of circumstances, including most significantly the macro shift in Argentina, our main market.

Good morning. And thanks everyone for participating in today's call. Please turn to slide number 3.

I wanted to start today's call by looking at this year's performance, considering the trajectory of our company since 2019.

2019 is the year we launched via scrap solutions to the public equity markets.

As you can see.

this is the first down year in the series and 1 that comes with important lessons in terms of risk management and financial prudence

I'll address this towards the end of the presentation today.

We are reporting a very disappointing final quarter to an extremely challenging fiscal year.

Challenges in fiscal 2025 cannot be attributed to a single factor.

Federico Trucco: In fiscal 2024, clients anticipated a significant devaluation of the Argentine peso, and as a result, hedged against this event by pre-purchasing some of the inputs required for the following year. In contrast, with no expectation of currency devaluation for fiscal 2025, clients in Argentina had no incentive to maintain high inventory levels. Adverse on-farm economics also led to reduced spending on ag inputs, further exacerbating the company's exposure to the shifting cycle. These circumstances, coupled with deteriorating financial conditions for the sector in general, and our own shift in strategy around the HB4 seed business, landed us in the position we are reporting today. I will now ask Paula to go over the specifics of the quarter and the year before we discuss lessons learned and next steps. Paula.

How we understand rather stem from a combination of circumstances, including most significantly, the micro shift in Argentina, or main markets.

In fiscal 24.

Clients participated in a significant evaluation of the Argentine peso and, as a result, hedged against this event by pre-purchasing.

Some of the input required inputs required for the following year.

In contrast.

With no expectation of currency, the evaluation for fiscal 25.

Clients in Argentina, had no incentive to maintain high inventory levels.

Adverse farm economics also led to reduced spending on egg inputs, further exacerbating the company's exposure to the shifting cycle.

these circumstances coupled with deteriorating Financial conditions for the sector in general and our own shift in strategy around, the HP4 seed business,

Landed us in the position. We are reporting today.

I will now ask Paola to go over the specifics of the quarter and the year before we discuss Lessons Learned and next steps.

Paula Savanti: Thank you, Federico. Let me take you now through our financial results for the quarter and for the fiscal year 2025. Let's turn to slide four to begin, please. In the fourth quarter, we reported revenues of $74.7 million, a 40% decline compared to the same period last year. This decline is explained primarily by two factors. One is the winding down of our seed business. As you can see in the composition by segment of our quarterly revenues, sales in the seed segment were $25 million lower than last year, accounting for about 50% of the quarterly year-over-year decline. The other 50% of the decline is roughly equally split between crop nutrition and crop protection, with both segments affected by the weaker demand for crop inputs in Argentina, given the dynamics that Federico has just explained.

Pa, thank you for the RICO. Let me take you now through our financial results for the quarter and for the fiscal year 2025. Let's turn to slide 4 to begin, please.

In the fourth quarter, we reported revenues of $74.7 million, reflecting a 40% decline compared to the same period last year. This decline is explained primarily by two factors. The first is the winding down of our seed business.

See in the composition.

Quarterly revenues.

Sales in the seed segment where 25 million dollars lower than last year accounting for about 50% of the quarterly year-over-year decline.

Paula Savanti: In crop protection, we didn't see in Q4 the typical pattern of preseason sales ahead of the spring planting season, as producers continue to operate this year under a more just-in-time purchasing modality. In this sense, we expect activity to pick up as planting season begins this spring. The decline in sales in Argentina eclipsed the fact that international sales of some of our core technologies grew strongly in the quarter, with, for example, adjuvant sales in Brazil almost doubling, and bioprotection products in the U.S. growing almost 40%. In crop nutrition, sales declined by 34% for the quarter, driven by lower microbiota fertilizer sales in Argentina, as well as lower inoculant revenues in other markets due to the calendar-based timing of the Syngenta agreement, which causes some misalignment with our reporting quarters.

The other 50% of the decline is roughly equally split between crop nutrition and crop protection with both segments affected by the weaker, demand for crop inputs in Argentina. Given the Dynamics that Federico has just explained

In corporate protection, we didn't see in Q4 the typical pattern of pre-season sales ahead of the spring planting season, as producers continue to operate this year. There are more just-in-time purchasing modalities. In this sense, we expect activity to pick up as the planting season begins this spring.

The decline in sales in Argentina contrasts with the fact that international sales of some of our core technologies grew strongly in the quarter. For example, sales of Auan in Brazil almost doubled, and bioprotection products in the U.S. grew by almost 40%.

Paula Savanti: For the full fiscal year, revenues came in at $335.3 million, down 28% year over year, with declines in all four of our reporting segments. In crop protection, revenues were $181.9 million, down 20% from the prior year, with full-year dynamics very similar to those seen in the quarter. A strong decline in Argentina offset growth in bioprotection in the U.S. and adjuvants in Brazil. In crop nutrition, revenues for the full year were $89.5 million, down 37% year over year. Again, as in the quarter, the main driver of the decline was microbiota fertilizers in Argentina. Sales of this product were negatively affected by a lower corn acreage this year. As farmers feared a repeat of the corn stunt disease, corn acreage fell by about 20% compared to the year before. Additionally, weak on-farm economics and elevated channel inventories generated price pressure, which compressed margins.

In crop nutrition, sales declined by 34% for the quarter, driven by lower microbe fertilizer sales in Argentina, as well as lower inoculant revenues in other markets due to the calendar-based timing of the Syngenta agreement, which causes some misalignment with our reporting quarters.

For the full fiscal year, revenues came in at 335.38% year-over-year with declines, in all 4 of our reporting, all 3 of our reporting segments.

In crop protection revenues.

181.9 million, down 20% from the prior year, with full year dynamics very similar to those seen in the quarter. There was a strong decline in Argentina offsetting growth in BIO protection in the U.S. and as you mentioned in Brazil.

5 million down 37% year-over-year.

As, in the quarter, the main driver of the decline, where micro beater fertilizers in Argentina.

Sales of this product were negatively affected by a lower corn. Acreage this year as Farmers feared, a repeat of the Corn stunt disease. Corn acreage fell by about 20% compared to the year before.

Paula Savanti: In this segment, the expected reduction of $15.7 million related to the Syngenta down payment further weighed on comparison. Lastly, revenues in the seed and integrated product segment were $63.9 million for the year, representing a reduction of 34%. As explained before, this reduction reflects the scaling back of the HB4 program as we transition the seeds business into a royalty-based model. It's important to highlight that while the new strategy reduces upfront revenue recognition, it sets the stage for a more capital-efficient and scalable business, which we expect will drive growth and improve profitability going forward. Now, let's please turn to slide five to look at the quarterly gross profit by business segment. In the fourth quarter, gross profit was $25.4 million, a 47% reduction compared to the same quarter last year.

Additionally week on Farm economics and elevated Channel, inventories, generated, price pressure, which compressed margins in this segment. The expected reduction of 15.7 million related to the syngenta down payment further weighed on comparison.

Lastly, revenues in the Cedar integrated product segment were $63.9 million for the year, representing a reduction of 34%.

I explained before that this reduction reflects the scaling back of the HB4 program as we transition the seeds business into a royalty-based model.

It's important to highlight that while the new strategy reduces upfront, Revenue recognition, it sets the stage for a more Capital efficient and scalable business, which we expect will drive growth and improve profitability going forward.

Now let's please turn to slide 5 to look at the quarterly. Gross profit by business segments.

Paula Savanti: Most of the decline is accounted for by the crop nutrition and seeds segments, as can be seen in the bar chart on page five of the presentation. The $10.6 million decline in crop nutrition for the quarter is driven by lower gross profit for microbiota fertilizer sales, where, as mentioned, lower sales in terms of volume were coupled with margin compression on account of pricing pressures in the market. By softer margins in biostimulants, as the business expanded into markets with different pricing structures, but with meaningful growth potential, and by lower gross profit from inoculants on account of the lower revenues in the quarter, as mentioned above. In seed and integrated products, the $9.3 million decline in gross profit reflects, as mentioned, the planned wind-down of the seed business.

In the fourth quarter, gross profit was 25.4 million. A 47% reduction compared to the same quarter last year.

Most of the decline is accounted for by the crop nutrition and seeds segments, as can be seen in the bar chart on page 5 of the presentation.

The $10.6 million decline in crop nutrition for the quarter is driven by lower growth profit for microbeaded fertilizer sales.

From Mike fertilizers, where as mentioned lower sales, in terms of volume were coupled with margin compression on account of pricing pressures in the market.

By softer margins in BIO stimulants as the business expanded into markets with different pricing structures but with meaningful growth potential growth potential and by lower growth profit from inoculants on account of the lower revenues in the quarter as mentioned above.

Paula Savanti: With no upstream seed sales to report, revenues in the segment were mostly grain inventory being sold off at a lower margin compared to last year's HB4 related sales, which drove a contraction in the segment's gross margin. Finally, in crop protection, gross profit decreased $2.2 million from last year, a lower decline than that seen in revenues, as the products that were mostly negatively affected were low-margin non-core products. A more favorable mix, with higher contributions from bioprotection products, as well as stronger margins in adjuvants, resulted in a higher gross margin for the segment in the fourth quarter. Overall gross margin for the quarter contracted from 38% in Q4 to 34% this quarter on account of the margin compression in seeds and crop nutrition. Now, let's please turn to slide six to look at the gross profit and margin dynamics for the full year.

In seed and integrated products, the 9.3 million declining gross profit reflects as mentioned the blind planned, wind down of the seed business.

With no upstream seed sales to report, revenues in the segment were mostly from grain inventory, being sold off at a lower margin compared to last year's HB4-related sales, which drove a contraction in the segment's gross margin.

Finally, in crop protection gross profit. Decreased 2.2 million from last year, a lower decline than that seen in Revenue. As the products that were mostly negatively. Affected were low margin, non-core products, a more favorable mix with higher contributions from bio protection products, as well as stronger margins in. Agilent resulted in a higher gross margin for the segment in the fourth quarter.

Overall gross margin for the quarter contracted from 38% in Q4 2024 to 34% this quarter on account of the margin compression and some problems in nutrition.

Paula Savanti: For the year, gross profit was $131.7 million, a 29% decline with respect to fiscal 2023. The decline reflects the lower sales seen across all segments. The largest decline came from crop nutrition, which saw a $31.9 million reduction in gross profit year over year, impacted not only by the weaker demand for microbiota fertilizers, but also weighed by a $15.7 million year over year reduction from the Syngenta down payment, which carried a 100% gross margin in FY23. The remainder of the decline was split evenly between the other two segments. In crop protection, the decline in gross profit came from lower margin non-core products, resulting in a higher segment gross margin, as product mix improved in favor of higher margin adjuvants and bioprotection products. In seed and integrated products, the gross profit decline follows top line performance.

Now, let's please turn to slide 6 to look at the gross profit and margin dynamics for the full year.

For the year. Gross profit was 131.7 million. A 29% decline with respect to fiscal 2024. The decline reflects the lower sales seen across all segments.

The largest decline came from crop nutrition, which saw a 31.9 million reduction in gross profit year-over-year impacted not only by the weaker demand for our microbit of fertilizers but also weighed by a 15.7 million year-over-year reduction from the syngenta down payment, which carried 100% gross margin in fy24.

The remainder of the decline was split even evenly between the 2 SE. The other 2 segments in crop protection. The decline in gross profit came from lower margin. Non-core products resulting in a higher segment, gross margin as product, mix improved in favor, of higher margin, ayutlense and bio protection products.

In C, that integrated products, the

Paula Savanti: Overall, for the year, gross margin was maintained at 39% despite the challenging context and the absence of the Syngenta contribution. Now, let's move to slide seven to look at adjusted EBITDA for the quarter. The EBITDA for the quarter, the adjusted EBITDA for the quarter was -$4.5 million, down from $19.9 million the year before. The sharp decline is almost entirely explained by the $22.7 million gross profit reduction discussed before. While there were $5.7 million in savings in operating expenses achieved as a result of deliberate cost control measures, these were offset by $5 million in non-recurring impairments for the quarter. This number is six to seven times greater than our normal impairment run rate and is linked to two specific events: bad debt in Bolivia and the HB4 rollback. Finally, positive contributions from JVs were offset by other expenses during the quarter.

follows Topline performance.

Overall, for the year, gross margin was maintained at 39% despite the challenging context and the absence of the Syngenta contributions. Now, let's move to flight 7 to look at a Justice EBA for the quarter.

The EBA for the quality, the adjusted debit for the quarter was negative $4.5 million, down from $19.9 million the year before.

The sharp decline is almost entirely explained by the $22.7 million gross profit reduction discussed before.

And non-recurring impairments for the quarter.

This number is 627, times greater than our normal impairment run rate, and it's linked to 2 specific events, bad debts. And

Olivia.

Hb4 Roll by.

Paula Savanti: Let's turn to slide eight to review EBITDA performance for the full year. For the full fiscal year, EBITDA was $28.3 million, down from $81.4 million in FY23. As with the quarter, the decline in EBITDA results mainly from a $54.6 million decline in gross profit, part of which can be attributed to the lack of a Syngenta payment this year, but the larger portion of which is due to the performance of the business discussed above. Again, non-recurring expenses due to impairments outweighed OPEX efficiencies achieved through cost control initiatives. Joint venture results also weighed on performance, with Synertech, the JV exclusively dedicated to manufacturing microbiota fertilizers, impacted by weaker product demand in recent quarters. The JV results were offset by higher other income, which reflected the beneficial exchange of non-core soybean traits and intellectual property assets that was disclosed in Q2 2025.

Finally, positive contributions from JVS were offset by other expenses during the quarter.

Let's turn to slide 8 to review EBA performance for the full year.

For the full fiscal year Eva was 28.3 million down from 81.

Million in.

Quarter the decline in Iva results, mainly from a 54.6 million decline in gross profit, part of which can be attributed to the lack of the syngenta payment this year, for the larger portion of which is due to the performance of the business.

Again, non-recurring expenses due to impairments outweigh Opex efficiencies achieved through cost control initiatives.

Joint venture results. Also weighed on performance with seltech, the JV exclusively dedicated to manufacturing microbe that fertilizers impacted by weaker, product demand, and recent quarters.

Paula Savanti: Now, let's move to slide nine to look at cash flow. Thanks to the concrete actions we've taken to improve working capital management, which we discussed in our previous calls and continued to focus throughout the year, we delivered a solid operating cash flow despite the pressure on profitability. Operating cash flow reached $29.9 million in the fourth quarter, up 28% year over year. For the full fiscal year, we generated $53 million, a 27% increase versus last year. This underscores our ability to prioritize cash generation, even in a challenging environment. Net cash consumption for both the quarter and the full year came mainly from financing activities, primarily due to debt repayments. With that, let's move to the next slide and take a closer look at our balance sheet and cash position.

The JV results were offset by higher other income, which reflected the beneficial exchange of non-core soybean traits and intellectual property assets. That was disclosed in 3225.

Now, let's move to slide 9 to look at cash flow.

Thanks to the concrete actions. We've taken to improve working Capital Management which we discussed in our previous calls and continued to focus throughout the year. We delivered a solid operating cash flow, despite the pressure on profitability.

Operating cash flow reached $29.9 million in the fourth quarter.

For 28%.

Full fiscal year, we generated 53 million dollars.

27% increase versus last year. This underscores our ability to prioritize cash generation, even in a challenging environment.

Net cash consumption for both the quarter and the full year came mainly from financing activities, primarily due to debt repayments.

Paula Savanti: As the fiscal year ends, total financial debt stood at $255.5 million, slightly lower than the $259.7 million in Q2 2024. As previously reported, the company entered into amendments to its note purchase agreements and outstanding notes during the fourth quarter, extending the convertible note maturities under new terms that resulted in an increase in the principal base. While the aggregate principal amount of the outstanding notes increased, total debts declined year over year and was slightly lower compared to Q2 2025, reflecting the repayment of unsecured public bonds and working capital loans in Argentina. Cash, cash equivalents, and other short-term investments totaled $34.6 million, resulting in a net financial debt of $220.8 million as of June 30, 2025, compared to $217.4 million in the immediately preceding quarter. Given a stable net debt, but the substantially lower adjusted EBITDA, this resulted in a net debt-to-adjusted EBITDA ratio of 7.8 times.

With that, let's move to the next slide and take a closer look at our balance sheet and cash position.

As of the fiscal year-end, total financial debt stood at 255.555% and $4,224.

As previously reported, the company entered into amendments to its note purchase agreements and outstanding notes during the fourth quarter, extending the convertible note maturities under new terms that resulted in an increase in the principal base.

While the aggregate principal amount of the outstanding notes increased, total decline year-over-year was slightly lower compared to Q3 2025, reflecting the repayment of unsecured public bonds and working capital loans in Argentina.

Cash Cash, equivalents and other short-term Investments total 34.6 million. Resulting, in a net financial debt.

Of 220.8 million as of June 30th 2025 compared to 217.4 in the immediately preceding quarter.

given a stable net debt but

potentially lower adjusted Ava.

Net debt to a

even the rate.

Paula Savanti: With that, I will turn the call back to Federico.

7.8 times.

And with that, I will turn the call back to Federico.

Federico Trucco: Thanks, Paula. Please turn to slide number 11 for an overview of our current financial strategy. As we discussed in our last earnings call and revisited a few slides prior, we continue to focus on cash generation and improving our working capital profile, where we are targeting a running rate of between five to six months of sales, which will better reflect our current business model and product mix priorities. Also, we have accelerated adjustments to our cost structure, targeting operating expense savings of around 10% to 12%. These savings will average about $3 to $3.5 million per quarter, as we started to see in the last quarter of fiscal 2025. We have reduced our rate of incremental CAPEX and R&D investments by 50%, lowering it from nearly 6% of sales to between 2.5% and 3% for fiscal years 2026 and 2027.

And please turn to slide number 11, for an overview of our current Financial strategy.

As we discussed in our last earnings call and revisited a few slides prior, we continue to focus on cash generation and improving our working capital profile.

We are targeting a running rate of between 5 to 6 months of sales, which will better reflect our current business model and product mix priorities.

Also, we have accelerated adjustments to our cost structure, targeting operating expense savings of around 10% to 12%. The savings will average about $3 million to $3.5 million per quarter, as we started to see in the last quarter of fiscal 2025.

Federico Trucco: Importantly, we do not expect this slower pace of investment to affect near-term growth, as we already have the key registrations and manufacturing capacity in place to deliver on our three-year plus business plan. Finally, without undermining the current financial challenges, we'll continue to work closely with our creditors to comply with our existing financial obligations and roll over part of our upcoming debt maturities, as we have done in the past. Where do we want to land? Please turn to the next slide. With these actions, a more normalized ag input market in Argentina and continued positive momentum in the U.S. and Brazil, two agricultural geographies which are key, where last year we grew 17% and 29% respectively, we expect to improve our EBITDA margin levels and steadily progress towards a more robust balance sheet, preparing us for the next phase of growth.

And we have reduced our rate of incremental CapEx and R&D investments by 50%, from nearly 6% of sales to between 2.5% and 3% for fiscal years 2026 and 2027.

Importantly, we do not expect this slower pace of investment to affect near-term growth.

As we already have the key registrations and manufacturing capacity in place to deliver on our 3-year-plus business plan.

IES will continue to work closely with our creditors to comply with our existing financial obligations and roll over part of our upcoming debt maturities, as we have done in the past.

Where do we want to land?

Please turn to the next slide.

With these actions, a more normalized input market in Argentina.

And continued positive momentum in the US and Brazil to agricultural geographies which are key where last year we grew 17 and 29% respectively.

Federico Trucco: Our main focus will be on scaling up our biological initiatives, including using our key actives, such as RinoTec and UVB, to functionalize and further differentiate important revenue generators for us, such as adjuvants and microbiota fertilizers. On the seed front, we'll continue to support our key partners in Latin America, Florimond Desprez in wheat and GDM in soy, while we onboard new partnerships in other geographies, mainly the U.S. and Australia. I will pause now and open up the floor for Q&A. Operator.

We expect to improve our edita margin levels and steadily progress towards a more robust balance sheet, preparing as for the next phase of growth.

Our main focus will be on scaling up our biological initiatives, including

Using our key active ingredients, such as Rhino Tech and UVB, to functionalize. Furthermore, we need to differentiate important revenue generators for us, such as Au and micro-visit fertilizers.

On the seed front, we'll continue to support our key partners in Latin America, Florida on Deed, and GDM in soil while we onboard new partnerships in other geographies, mainly the U.S. and Australia.

I will pause now and open up, uh, the floor for Q&A.

Operator.

Drew: Thank you. We'll now start today's Q&A session. If you would like to register a question, please press star followed by one on your telephone keypad. To withdraw your question, it's star followed by two. Our first question today comes from the line of Kristen Owen from Oppenheimer. Your line is now open. Please go ahead with your question.

Thank you. We'll now start today's Q&A session. If you would like to register a question, please press star followed by 1 on your telephone keypad. To withdraw your question, it's star followed by 2.

Kristen Owen: Hi, good morning. Thank you for taking the question. I want to pause here on this slide that you left us on here, slide 12, with the looking ahead. Understanding that the 40% gross margin, 22% EBITDA margin, this is sort of where we're targeting over time. As we think about the transition of the business, what are the metrics that we should be focused on, say, the next six to nine months? Initially, it was this top line growth and EBITDA dollars and cash generation. Just want to know what we should be focused on on this interim term at this stage of the corporate evolution.

Our first question today comes from the line of Kristen Owen from Oppenheimer. Your line is now open. Please go ahead with your question.

Federico Trucco: Hi, Kristen. Thanks for joining the call today, and thank you for your question. I think, obviously, cash generation will continue to be a focus, a strong focus for us as we try to get leverage ratios back to more normal levels. I believe that top line growth is less of a priority under the current circumstances and that the expansion of our profitability will be basically dependent on our ability to scale up the most profitable products in our portfolio. Remember, we've recently achieved registration of RinoTec in the U.S. and Brazil, and we're starting to generate revenues from that new family of insecticides and nematicides. Also, most of the pain from the shifting of the seed business away from the identity preserve scheme that we had has already occurred.

Hi, good morning, thank you for taking the question. Um, I I want to pause here on this this slide that you left us on here, slide 12 with the looking ahead. And understanding that the the 40% gross, margin, 22% Eva margin, this is sort of where where we're targeting over time, but as we think about the transition of the business um what are the metrics that we should be focused on? Say the next 6 to 9 months, you know, initially it was this Topline growth and neither dollars cash generation. Just want to know what we should be focused on on on this interim term at this stage of the corporate evolution.

Hi, Kristen. Thanks, uh, for joining the call today, and thank you for your, for your question. I think, obviously cash generation will continue to be a focus. Uh, a strong Focus for us.

As we try to get uh, leverage ratios back to, um, more normal levels.

I believe that Top Line growth is less of a priority under the current circumstances and that the expansion of our profitability will be basically uh dependent on our ability to to scale up the most profitable products in our portfolio. Remember we've recently achieved registration of rhino Tech in the US and and Brazil. And we're starting to generate revenues for from that new.

Federico Trucco: I think that will be an important contributor to going back to sort of the plus 40% overall gross margin profile. With the cost reductions that are sort of meant to right-size the organization for the current business opportunity, I think that we will get to these kinds of metrics sooner rather than later. I would say working capital, making sure we're below five months of sales, moderate top line growth, but expanding profitability at the EBITDA level and gross margin level are key indicators as we track progress towards sort of a more stabilized situation.

Uh, family of insecticides and the Matic sites. Also, most of the pain from the shifting of the sea business, uh, away from the identity preserved scheme that we had has already occurred. So I think that will be an important contributor to to going back to sort of the plus 40%. Uh, overall gross margin profile and with the cost reductions that are sort of meant to right-size the organization for the current uh business opportunity. I I think uh that we will get to this kind of metrics sooner rather than later, but I would say working capital uh making sure we're below 5 months of sales.

Moderate Topline growth but expanding profitability at the a level and a gross margin level are key indicators as we track progress towards um uh sort of a more stabilized um situation.

Kristen Owen: Thank you, Federico. If I could just add as a quick follow-up there, it sounds like these targets are not reliant on any real growth beyond market growth in the portfolio. It's just growing those products which are new and differentiated, not necessarily a robust return of the end market.

Federico Trucco: Absolutely. What I would say is that part of what we need is the rebound to some extent of the ag input market in Argentina, which is not something that is affecting us specifically. In fact, we have not lost market share in any of our key products. If we see that tracking positively, I think that will do a lot in terms of us achieving these metrics. The type of growth that we need in the other geographies as the portfolio scales up, the new product opportunities scale up, is not different from the one we saw last year. That is, I think, what is required for us to get to these more stabilized, more profitable numbers.

Okay. Thank you Federico. And it it if, if I could just um, add as a quick follow-up there it sounds like these targets are not reliant on sort of any any real growth Beyond market growth in the portfolio. It's just growing. Those products which are new and differentiated not necessarily uh robots Return of the End Market.

Absolutely. So what I would say is that part of what we need is the

rebound, to some extent of the yag input Market in Argentina, which is not, uh,

so, if if

We, uh, see that tracking positively. I think that will do a lot in terms of us achieving these, uh, these metrics. Then the type of growth that we need in the other geographies as the portfolio scales up. The new product opportunities scaling up is not different from the one we saw last year. So.

This is required for us to get to these more stabilized, um, more profitable numbers.

Kristen Owen: Okay. Thank you. One final question from me. If you could just say more about the cost savings initiatives, I think you said the cadence beginning in fiscal fourth quarter here was about $3 million to $3.5 million a quarter, and that's going to be pro rata across 2026. Just help us with a little bit of how you're thinking about those cost savings initiatives. Thank you.

Uh, one final question for me.

um if you could just say more about the cost savings initiatives, I think you said that the Cadence uh beginning in fiscal fourth quarter, here was about 3 to 3 and a half million a quarter and that's going to be

Federico Trucco: I have my own sort of back of the envelope numbers. I think if we were between $28 million and $30 million a quarter in terms of overall OPEX, to get closer to $25 million is where we think we are with the things we have already done. What I'm talking about are the results that we will obtain from streamlining workforce and right-sizing certain capacities that have already occurred. A contributor to that is obviously the shift in the seed business strategy. We have also done changes on other aspects of the organization to give us those levels of savings on a per quarter basis. We should see that reported every quarter on a forward-going basis because we have already seen some of that in the final quarter of the fiscal year we just reported.

Prada across 2026 just um help us with a little bit of how you're thinking about those cost savings initiatives. Thank you.

Look I I I I have my sort of own uh sort of back of the envelope numbers. I think if we were between 28 and 30 million dollars, a quarter in terms of overall Opex to get to closer to 25.

It's uh where we think we are with the things we have already done. So what I what I'm talking about. Are the results that we will

uh, obtained from, uh,

Uh, streamlining Workforce. Um,

And uh right sizing sudden capacities that has already occurred, a contributor to that is obviously the shift in the C business strategy.

Uh, we have also, um, done changes on on other aspects of the organization to give us uh, those levels uh of of savings on a per quarter basis. So uh, we should see that that reported every quarter on a forward going basis because we have already seen some of that in the final quarter of the fiscal year. We just reported

Kristen Owen: Thank you. I'll take the rest offline.

Thank you. I'll take the rest offline.

Federico Trucco: Thanks.

Thanks.

Drew: Our next question comes from Ben Cleve from Lake Street Capital Markets. Your line is now open. Please go ahead.

Ben Cleve: All right. Thanks for taking my questions. First, on the Syngenta agreement, I understand that last year's $16 million was the recognition of that upfront payment. What was the gross profit within fiscal 2025 from that agreement?

Our next question comes from Ben Cleave from Lake Street Capital Markets. Your line is now open. Please go ahead.

All right, thanks for taking my questions. Uh, first on the Syngenta agreement, I understand the last year's $16 million was the recognition of that upfront payment. Um, what was the gross profit within fiscal 2025 from that agreement?

Federico Trucco: Hi, Ben. Thanks for joining us today. Paula, do we have the specific number there?

Paula Savanti: We don't have, so those $16 million were from the upfront payment, which this year is zero, right, because that's already been done in the last two quarters. This year, we don't have any. This year, all that we're having from the Syngenta payment for the full year is what comes from the profit sharing that we've been doing, not the upfront payment, right?

Hi Ben, thanks for joining us today. Pablo, we have a specific number there. Um so we don't have so those 16 million were from The Upfront payment which this year is zero, right? Because that's already been done in the last 2 quarters. So this year we don't have any this year although we're having from the syngenta from the syngenta payment. For the full year is the the what comes from the profit sharing.

Federico Trucco: Yeah, but then we have a minimum profit sharing of how much. I think, Ben, there, what we have is probably that the profit sharing from Syngenta comes on a calendar basis. We can give you that number. I think for fiscal year 2025, part of the calendar is still not done because, I mean, half of the year is still remaining. We know from 2023 and 2024, they were on target based on the minimum payment requirements. Now, Syngenta has been selling probably at a slower pace than anticipated so that the minimum payment requirements are being considered in terms of the gross profits that we are materializing, and we're not seeing results in excess of that.

That that we've been doing, you know, not The Upfront payment.

Right. Yeah, but then we have a minimum profit sharing of how much uh,

So, I think I have been there. What we have is, um,

Probably that the, the the profit sharing from syngenta comes on a calendar basis.

so it's we we can give you that number, ER,

but I think the for fiscal year 25,

part of the calendar, uh, is still not done because

I mean, half of the year is still remaining, so we know from '23 and '24 that they were on target based on the, um, minimum payment requirements.

Paula Savanti: Yeah. For the full year, we have something like for the fiscal year, which doesn't correspond to the calendar year targets with them, but for the fiscal year, we have about $18 million gross profit from them.

And now Syngenta has been selling probably at a slower pace than anticipated, so that the minimum payment requirements are being considered in terms of the gross profits that we are, um, materializing. And we're not seeing results in excess of that.

the full year we have,

which is not.

Federico Trucco: One eighth?

Paula Savanti: Yeah.

Federico Trucco: Sorry, one eighth is the number, Ben.

Which, which doesn't correspond to the calendar, your target with them. But for the fiscal year, we have about $18 million worth of profit from them. 18. Yeah.

Sorry, 18 is the number. Then

Ben Cleve: Okay. That's helpful. I'm sorry, you broke up a little bit at the end there, but I think I caught it. I'm sure that was on my end. Next question. The HB4 outlook, I understand this is a fluid situation, and you've got a lot of different efforts here to try to extract some value from this. I'm curious if you can look back over the last year. A year ago on this call was when the air began to go out of the balloon regarding HB4. What specifically has been done within HB4 over the past year that you can point to as efforts that are really beginning to get traction here that give you a hopeful outlook for the future of that product?

Federico Trucco: Yeah. That's a great question, Ben. I think the most important effort over the last year was the agreement with Don Maio, which we announced in the February call. Even though that might have been a bit overshadowed by other things that were discussed during that call, I think the key there was that in soybeans, which was the one crop where obviously we have a huge opportunity in Latin America, but where we have struggled the most in terms of the ramping up of the HB4 technology, we achieved an agreement with them where they now are using exclusively the technology in Latin America and repositioning that technology not just for the drought tolerance effect, but also as a way to provide a weed control platform that should be attractive to farmers in the region.

You know, you've got a lot of different efforts here to try to extract some value from this but I'm curious if you can look back over the last year you know a year ago on this call was when the the you know the the the you know, I think really the Arab began to go out of the balloon regarding hb4 What specifically has been done within hb4 over the past year that you can point to, as, uh, you know, efforts that that that are, you know, really beginning to get tracked in here. Um, uh, you know that give you give you a hopeful outlook here for the future of that of that product.

Yeah, that that's a great question. And so, I think, uh, the most important, um, effort over the last uh, year was the agreement with the which we announced in the February earnings, uh, in the February call. So even though that might have been a bit of a shadow by other, um, other things that uh, were discussed during that call.

I I think the key there was that in soybeans which was the 1 group where obviously we have a huge opportunity in Latin America, where we have struggled the most in terms of the ramping up of the HP4 technology, we're Chief and agreement with them.

Where they now are using uh, exclusively the technology in Latin America.

Federico Trucco: That new platform that is branded Dualyx, that's the GDM brand for this new approach, has already been launched. This is now being scaled up with a selected number of GDM multipliers and the different channels and will be starting to generate revenues in the upcoming fiscal year, which is very meaningful for us. Obviously, we don't control the go-to-market effort there, or the inventory ramp-up, or even less sort of testing of the grain like we did in the identity preserve channel. That, to me, is kind of the most significant achievement over the last 12 months to reignite the opportunity around the HB4 event under a different strategy in soybeans. In wheat, what we have done is open up the business to some of our key customers in Argentina so that we wouldn't have to do the multiplication and the go-to-market ourselves. That is a work in progress.

Uh and repositioning that technology not just for the drought tolerance effect, but also as a way to provide uh, a weed control platform that should be attractive to farmers in the region that new platform that is branded wages that the gdm brand uh, for this new approach has already been launched.

This is now being, uh, scaled up with selected number of of gdm multipliers and the different uh channels and will be starting to generate revenues.

In, in, in the upcoming fiscal year, ah, which is very meaningful for us. Obviously, we don't control the go to market for their. That's all the inventory. You ramp up or less even less sort of uh uh, Destiny of the grain like we did in the identity Reserve Channel. But that to me it's it's kind of the most significant achievement over the last 12 months to reignite, the opportunity around uh the 84 event under a different strategy in soybeans.

In which, uh, what we have done is, um, opened up the business to some of our key customers in Argentina so that we wouldn't have to do the multiplication and the go-to-market ourselves.

Federico Trucco: I would say that the most important achievement in wheat was the basically structuring of a master agreement in the U.S. with Colorado Wheat Growers as an entry point to a consortium of different breeding programs and a herbicide partner, which we cannot disclose to you for confidentiality purposes, that will now scale that opportunity in the U.S. market. Even though this is still a few years away, I think that jointly with what we are doing in Latin America, with Embrapa developing the varieties for the Cerrados in Brazil and the major customers of Bioceres, executing commercially in Argentina, that will completely reshape the opportunity behind the soy and the wheat events. That's what we have done.

That is a work in progress, but I would say that the most important achievement in wheat was basically the structuring of a master agreement in the U.S.

With uh, Colorado with drawers.

As an entry point to a consortium of different breeding programs and a horizontal partner, which we cannot disclose to you due to confidentiality purposes, we aim to scale that opportunity in the U.S. market, even though this is still a few years away.

Federico Trucco: Obviously, we've learned from the past, and we're not going to provide any guidance in terms of revenues, but I think it's a dramatic shift, one that can be managed with a small group of people that are dedicated to the regulatory stuff and the technology demonstration work and not with an extended sales force that was trying to, if you will, scale this up beyond our capacities too.

I think that uh jointly with what we are doing in Latin America with umbrella developing the varieties for the servos in Brazil. And the major customers of yours that is executing commercial in Argentina that will completely reshape the opportunity behind the soil and the weed events. That's what we have done. I think that obviously, we've learned from the past and we're not going to provide any guidance in terms of revenues, but I think it's a dramatic shift 1 that can be managed with a small group of people that are dedicated to the regulatory stuff and the technology demonstration work and not.

With an extended Salesforce, we were trying to, if you will, scale this up beyond our capacities to, you know,

Ben Cleve: Okay. Very good. I appreciate that. Thanks for there's plenty more to talk about, but thanks for taking my question. I'll get back in queue.

Okay, uh, very good. I appreciate that. Thanks for the plenty more to talk about, but thanks for taking my questions. I'll get back to you.

Drew: Thank you. Our next question comes from Austin Modler from Canaccord. Your line is now open. Please go ahead with your question.

Thank you. Uh, the next question comes from Austin, a modeller from Canaccord. Your line is now open; please go ahead with your question.

Austin Modler: Hi, good morning. I know you talked earlier in the remarks about the plans for further diversification of revenues into the U.S. and Brazil. How should we be thinking about the upcoming spring planting season in Argentina? I mean, it just looks like, at least so far, there hasn't been a lot of advanced purchasing of inputs yet, and there's still a lot of currency and on-farm economic risk in Argentina.

It just looks like, at least so far, there hasn't been a lot of advanced purchasing of inputs yet, and there's still a lot of currency and on-farm economic risk in Argentina.

Drew: Fema, I think you're muted. Can you please check that you need to unmute?

Tim, I think you're muted. Can you please check that? You need to unmute.

Federico Trucco: Can you hear me okay?

Drew: Please stand there. Yes, we can hear you now. Please go ahead.

Can, can you hear me okay? Yes, we can hear you now, please. Go ahead.

Federico Trucco: Okay. I don't know if Austin, can you repeat the question? We had some interference here with the audio.

Okay, I don't know if asking can you repeat the question. We had some interference here with the audio.

Austin Modler: Sure. I guess what I was just asking was, I know you had previously discussed looking ahead to a more promising spring planting season. I guess what is your confidence in that, just given there's not been a lot of advanced purchasing of inputs and there's considerable currency and on-farm economic risk in Argentina? Could you just go into a little bit more detail on what you expect in terms of diversification of revenues into the U.S. and Brazil?

Sure. Yeah, so I I guess what I was just asking was I know you had previously discussed uh looking ahead to a more promising spring planning season. Um but I guess, what is your confidence in that just given? There's not been a lot of advanced purchasing of inputs and there's considerable currency in on-farm economic risk in Argentina and then could you just go and do a little bit more detail on, um, what you expect in terms of diversification of revenues into the US and Brazil.

Federico Trucco: Yes. Thank you for your question. Apologies for the technical difficulties. Basically, in terms of Argentina, the situation here is a bit counterintuitive, no? Whenever there is a risk of devaluation, that tends to drive farmers to pre-purchase products like they did in fiscal 2024. Even though that was not an issue last year because of the more stable macro situation after the elections of last weekend, I think it's becoming a bit of a driver. We expect an accelerated pace of input sales just because of that. Most importantly, I would say rain and weather conditions have been very favorable. We're looking forward to a great planting season. That, I think, is obviously a key factor in terms of our expectations in Argentina. Remember that we operate on a dollar-denominated business, no?

Yes, thank you for for your question, and apologies for the technical difficulties. Um, so basically, in terms of Argentina, uh, the situation here is a bit, counterintuitive know because, uh, whatever there is a risk of devaluation, that tends, to Drive Farmers to pre-purchase products. Like they did in fiscal 24. So, even though that was not, uh an issue, uh, last year, because of the more stable macro situation, uh, after the elections of last weekend, I think it's becoming a bit of a driver. So we expect an accelerated pace of, uh, input sales. Just because of that most importantly, I would say, uh, rain and weather conditions have been very favorable. So, we're looking forward to, to a great planting season. And and that I I think it's obviously,

A factor in terms of our expectations in Argentina. And remember that.

Federico Trucco: Whenever there is kind of devaluation potential, that tends to accelerate our sales and eventually dilute part of our fixed expenses, which are the peso-denominated salaries we pay in countries. That is in terms of the Argentine dynamics. In terms of diversifying away from Argentina, we've seen good growth last year in the U.S. and in Brazil, as well as in the rest of the world. There, the key drivers are the biostimulant platform, which is important in Europe as those products go into the Americas. The U.S. and Brazil will see revenue increases from the UVB-derived technologies. Also, the recent registration of RinoTec in both the U.S. and Brazil is allowing us to become more competitive on seed-applied insecticides and nematicides. That, I think, will also give us significant growth in those markets.

We operate on a dollar-denominated business now. And whenever there is kind of, um, um.

Devaluation potential tends to accelerate our sales and eventually dilute part of our fixed expenses, which are the peso-denominated salaries we pay in countries. So that in terms of the Argentine dynamics,

Federico Trucco: There's an aspect of these two products, which I also wanted to emphasize, which is the opportunity of selling them not as standalone biologicals, but as a way to functionalize some of our big revenue generators. You can use UVB today in adjuvants, as we've discussed in the past, to improve the recovery of herbicide applications on certain crops. That is a very meaningful technological aspect that we're planning to seize, importantly, because we have installed capacity in adjuvants and a customer base to which we can translate this message. On the RinoTec front, I think similarly, using that as a way to functionalize the adjuvants that are used in insecticidal applications is a way where we can seize some revenues and growth without the necessity of selling the product on a standalone basis. Those are the initiatives in play.

in terms of diversifying away from Argentina, we we've seen good growth last year in in the US and in Brazil, as well as in the rest of the world there. The key drivers are the bio stimulant platform which is important in Europe as as those products going to the Americas the uh the US and and and Brazil will see Revenue increases from from the uvp derived Technologies. Uh, also the recent uh uh uh, registration of rhino Tech in in, in, in both the US. And Brazil is allowing us to become more competitive on seed up, light insecticides and the Matic sites and that I think will also give us significant growth in in those markets. So um there's an aspect of these 2 products uh which I also wanted to emphasize which is the opportunity of selling them not a standalone biological but as a way

YouTube functionalized some of our big revenue generators so you can use UBP today in Australia, as we discussed in the past, to improve the recovery of herbicide applications on certain crops.

Federico Trucco: I think they will significantly help us in those geographies outside of Argentina. That is, I think, going to give us a more balanced geographical mix in a few years. It's not going to happen from one year to the next, but after two to three years, I think we can be less exposed to the type of shifts that we saw last year in the Argentine market.

I think they will significantly help us in those geographies outside of Argentina.

And and that is uh, I think going to give us a more balanced.

Geographical mix, uh, over a few years. No, it's not going to happen from one year to the next. But after two to three years, I think, uh, we can be less exposed, um, to the type of ships that we saw last year in the Argentine market.

Austin Modler: Okay. Just to follow up, how should we be thinking about the cadence of the Syngenta revenue ramp in the new fiscal year? Previously, you discussed that as sort of being a two-year ramp process to hit what you expect to be the run rate over the term of the agreement for $230 million in minimum profits. I guess how much should we be thinking about in the next fiscal year?

Okay. And just to follow up, how should we be thinking about the cadence of the Syngenta revenue ramp in the new fiscal year? Previously, you discussed that sort of being a 2-year ramp process to hit what you expect to be the run rate over the term of the agreement for 239 and minimum profits. But I guess how much should we be thinking about in the next fiscal year?

Federico Trucco: Basically, the $230 million are over the 10-year period. We started with smaller numbers, and that's why we had the down payment upfront to compensate in part for the gap in the first and second year. I think Paula recently alluded to the $18 million we had in fiscal year 2025 coming from the Syngenta agreement. We're not yet at the average of $23 million per year, if you will. We expect that to be coming up in the current fiscal year as we continue to discuss the agreement with Syngenta and look for opportunities to fortify the relationship. I think this is ramping up as projected without sort of undermining some of the challenges that we have seen in agriculture in general, particularly early on in the agreement in Brazil and other geographies where we are just now coming out of the down cycle in the ag input market.

So, uh, basically the $230 million is over the 10-year period. We started with, um, smaller numbers, and that's why we had the down payment up front to compensate in part for the, uh, gap in the first and second year. Uh, I think Pablo recently alluded to the $18 million we had in fiscal year 2025 coming from the Cyngient agreement. So, we're not yet at the average of $23 million per year, if you will. We expect that to be, um...

Coming up in the, in the current fiscal year, as we continue to discuss, uh, the agreement with in Ghent and look for opportunities to fortify the the relationship. So, I think this is, uh, ramping up as as as projected, uh, without sort of undermining some of the challenges, uh, that we have seen in in agriculture, in general, particularly early on, in the agreement, in, in, in Brazil, and other geographies where we are. Just now coming out of the down cycle in the egg inputs market now,

Austin Modler: Great. Thanks for all the details.

Great. Thanks for all the details.

Drew: Just as a reminder, if you would like to ask a question today, please press star followed by one on your telephone keypad. To withdraw your question, it's star followed by two. Our next question comes from Kemp Dolliver from Brookline Capital Markets. Your line is now open. Please go ahead with your question.

Just as they reminder, if you would like to ask a question today, please press star followed by 1 on your telephone keypad and to withdraw, your question. Its star for 2,

Our next question comes from Kemp Dolliver from Brookline Capital Markets. Your line is now open. Please go ahead with your question.

Austin Modler: Great. Thank you. Could you talk a little bit more about the current state or level of inventories held in the channel? This seems to be probably one of the most significant obstacles other than improvement in on-farm conditions to your getting some growth, improving your profitability, etc.

Great. Uh, thank you. Um,

could you talk a little bit more about the current, uh, state or level of inventories, you know, held in the channel? You know, there seems to be a

yeah, probably more than the most significant obstacles other than Improvement in

you know, the on Farm conditions to your

You know, driving, you know, getting some growth, improving your profitability Etc.

Federico Trucco: Hi, Kemp. Thanks for joining the call. I think in terms of Argentina, the inventory situation has been almost depleted. That has been the case over the last 12 months. I'll give you a very concrete example. For instance, in the microbiota fertilizer business, which is obviously one of the businesses that was most significantly affected over the last 12 months, if you go back to fiscal 2023 and 2024, in both years, we did about 30,000 tons, no? Of the 30,000 tons we sold in fiscal 2024, 5,000 were in inventory. This year, fiscal 2025, I think we did less than 15,000. We were at 14,000 and consumed the 4,000 or 5,000 that were in inventory from the year before. If you look at the actual numbers, maybe in fiscal 2024, it was 25,000 that were consumed. Fiscal 2025, 19,000.

Hi, Ken, uh, thanks for for joining the call. I think, in terms of Argentina, the inventory situation has been almost depleted, uh, so that that's been the case over the last 12 months. Uh, and I, I'll give you a very concrete example. For instance, in in the micro beaded fertilizer business, which is obviously 1 of the business. That was most significantly affected over the last 12 months. If you go back to fiscal 23 and 24 in both years, we did about 30,000 tons know,

Of the 30,000 tons, we sold in fiscal 2024.

5,000 were in inventory.

And and this year, fiscal 25, I think we did less than 15,000. We we were at 14,000

Federico Trucco: We believe, on a forward-going basis, we'll be seeing some recovery because those dynamics are indicative of zero inventory in the channel. There might even be a supply concern if, at the end of the day, product cannot be manufactured in time to fully address the planting needs of farmers. I think that's been reverted fully in the Argentine market. That is just one example to highlight a product line that is very meaningful for us. In biologicals, in general, inventories are less of a concern because of the shelf life issues. You cannot keep inventories forever when you're talking about seeds or when you're talking about microbes. They have declined over time. In general, the sector or those products are less exposed to inventory situations. In the U.S. and Brazil, I think the inventory problems were prior to last year.

And consume the 4 5000 that were in inventory from the year before. So, if, if you look at sort of the, the actual numbers, maybe in fiscal 24, it was 25,000 that were consumed fiscal, 25 19,000. And we believe of on a forward going,

Basis will be seeing some recovery because um, those basically, uh, Dynamics are indicative of zero inventory in the channel. I think, uh, they might even be a supplied, uh, concern, if if, uh, at the end of the day, uh, product cannot be manufacturing time to, to, to fully, um, address. The planting needs of farmers. So, uh, I, I think that's been reverted fully, uh,

For us.

In Biologicals in general inventories are are less of a concern because of the uh shelf life issues. No, you cannot keep inventories forever. When you're talking about seeds on, when you're talking about microbes they have uh they decline over time. So the in general the sector or those products are less exposed

Uh, to inventory situations in the U.S. and Brazil.

Uh, I think the inventory.

Federico Trucco: This dates back to 2023, 2024, but mostly 2023, fiscal 2023. We see now that the level of utilization of product is consistent with our pace of sales. That is something that we are tracking in both those geographies to make sure that we are not running into inventory hurdles as we execute on the current business plan.

Problems were prior to to last year, so this date back to the 2324 but mostly 23, fiscal 23. So, we see now that the, uh, um, level of utilization of product is consistent with our pace of sales. So that uh, that is something that we are tracking in both those geographies to make sure that we are not running into uh inventory hurdles as we execute on the current business plan.

Austin Modler: Great. Thank you. Do you have your accounts receivable and inventories and accounts payable at year-end at hand?

Great, thank you. And do you have your accounts receivable and inventory and accounts payable at year end, uh, at hand?

Federico Trucco: Give me a second. I'll pass it on to Paula for that information.

Give me a second. I'll pass it on to to Paula for for that uh,

Information.

Paula Savanti: Hi, Kemp.

Hi Kemp.

Austin Modler: Yes, thank you.

Paula Savanti: Hi, Kemp. Can you hear me?

Austin Modler: Yes, thank you.

Yes, thank you. Hi Kim. Can you hear me?

Yes, yes. Thank you.

Paula Savanti: Sorry. Can you repeat what was the question?

Yeah. Sorry. Can you repeat what was the question?

Federico Trucco: The level.

Paula Savanti: The level of accounts receivables?

Federico Trucco: At year-end, also accounts payables and inventories.

Um, the level of of accounts receivable is at the end but also account payables and inventory.

Paula Savanti: Account payables at year-end are $145 million. Inventories were at $90 million. I'm rounding numbers, but fairly close. Trade receivables, $170 million.

um,

account pays that you're end are 145 million.

Inventories, where 90 million?

I'm rounding numbers, but fairly close, and trade receivables of $170 million.

Austin Modler: Thank you. One last question relates to the changing role of the Chief Commercial Officer. What thoughts do you have with regard to what that position will look like, should look like going forward?

Thank you. Um,

and then 1 last question and that relates to the

Changing role. Uh, the Chief Commercial Officer, you know what?

You know what thoughts, do you have with regard to what that position will look like, should look like going forward?

Federico Trucco: Look, Kemp, that's a great question. I think we're still discussing with the board whether this should be something that integrates operations more fully or be strictly dedicated to commercial the way it was before. I have to also indicate that the departure of Milan Marinov is because he has accepted the CEO position of a company called Horizon starting September 1. It wasn't something that was planned. I mean, we were probably intending to continue with the current Chief Commercial Officer role. Because of that departure, we are reconsidering whether we should keep that format or have one that is probably more integral in its nature. By that, I mean have some incremental operating responsibilities beyond the commercial aspects of the company.

Look, uh, Kim. That's a a great. Um,

A great question. I think we're still discussing with the board. Whether this should be something that integrates operations more fully, or or be strictly dedicated to commercial the way it was. Before I have to sort of also, um, indicate that the departure of Milan marinov, it's because he has accepted the CEO position of a company called Horizon.

Starting September 1st. So it wasn't something that was, um,

That was planned. I mean, we we were probably intending to continue with the current chief commercial officer role and because of that departures that we are reconsidering whether we should keep that format or have 1, that is probably a more integral in its nature. And and by that I mean have some uh, incremental operating responsibilities beyond the the the commercial aspects of the company.

Austin Modler: Understood. Thank you.

Understood, thank you.

Drew: Thank you. With that, that concludes the Q&A portion of today's call. I'll hand back over to Federico for some closing comments.

Thank you. With that, that concludes the Q&A portion of today's call. I will hand it back over to Federico for some closing comments.

Federico Trucco: I want to thank everyone for participating in the call and obviously for the patience. We had some technical difficulties today. We are available to address further questions and hopefully turn the page on a very difficult year as we look forward into a more normalized set of circumstances and sort of a new path of growth for Bioceres Crop Solutions Corp. on a forward-going basis. Thanks, everyone, and have a great rest of the day.

Well, I

I want to thank everyone for participating in, in the call and obviously for for the patience. We had some technical difficulties today. Uh, we are available to address further questions and and hopefully Turn the page on a on a very difficult year as we look forward into a more normalized set of circumstances and and sort of A New Path of growth for bettas, crop Solutions, on a forward going basis.

Thanks, everyone, and have a great rest of the day.

Drew: Thank you all for joining. That does conclude today's call, and you may now disconnect your line.

Thank you all for joining. That does conclude today's call, and you may now disconnect your line.