SANW - Earnings call transcript Q2 2025

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Operator

Good day, and welcome to the S&W Seed Company Second Quarter Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Robert Blum

All right. period and S&W all fiscal Seed financial for much, today joining year very XXXX. results discuss XX, to Company's the you thank for you us XXXX Thank December ended second quarter With us company Mark Officer. the Chief Herrmann, Baughman, representing Officer; Vanessa Chief today and are Executive company's the on call the Financial open a question-and-answer for the of conclusion call today's At prepared the remarks, we will session. [Operator Instructions]

to S&W the the Act Seed prepared Securities XXE with of as the please of that management remarks, of provisions team of of by conference the forward-looking of Litigation of Section Section during XXXX. Before may forward-looking XXXX I and begin amended, Act of as XXXX the this and Reform Securities pursuant Company statements note statements Act safe course the meaning the contain amended made XXA Securities call harbor Private Exchange statements of within such made are

the risks other Commission. projected with the other forward-looking XX, XXXX, the and preceded strategies or and June future describe forward-looking could the or in anticipate, made statements statements Forward-looking the filings projected. Securities risks those differ in or may draft, statements, and subject various planned, fiscal that statements could to eventually subsequently by of as those XX-K future, from factors for future Listeners should, cause are in including result generally ended expectations, from such multitude a materially the results risks will expected, the such or that results actual events or and as projected may, Exchange company differ cautioned year plan are uncertainties and a circumstances, of by plans, materially words results company's that identified

not prepared are page. in These discussing for An financial a substitute not for accepted Relations S&W's with measures report this the of set non-GAAP operating EBITDA comprehensive supplement online audio S&W call. comparable be Investor rules and as adjusted results be be isolation considered today's will principles. webcast accounting expenses in conference or also on financial principles, U.S. or GAAP, any accounting meant generally to under company's the adjusted accordance and on replay recording and are measure call will available GAAP or To

With that for Herrmann, Chief the S&W Mark proceed. over Company. please let said, Mark, me turn Executive to Officer Seed call

Mark Herrmann

past the we you. here Thank you, you Robert, all. of and first few the drive value mainly in quarters add speaking to today, on over through on can growth Sorghum the touch and focus call S&W actions profitability we be ultimately crop for me today morning leading high-value good I'm to To crop with and to shareholders. all opportunities Camelina to let where unlock innovation, our and agenda the excited taken set have reposition

and that then stands will opportunity detailed with long-term brief at the a any financials, for well the we then on venture sorghum We as then have you where will VBO. a provide will end. review of today. at look I update at joint take may look Vanessa a will provide the questions our as market

will activities or so a to for and new months to S&W we few ultimately taken its take everybody somewhat let value past me that the brief the of just unlock shareholders. over moment S&W, remind those place key that For believe have

intercompany shortly agreement to which Australia obligations S&W entities. the the we XXXX. of in the for going finalized Australia, were to completed VA from Australia process after In needed settlement agreement, million exchange, other all conference the owed the we November ownership which and Among the successfully Ultimately, call in we release National other create last allowed and our agreement believe among key entity. transferred certain First, November, with guarantee. Bank conditions, occurred XX concerns new conditions, for inventory AUD in to late this mutually the that released resources intellectual the S&W provided from we property

facility new VA Following Mountain strategic the provided collateral. December We the from to forward. lending credit endorsement equal largest facility commitment a the be with process, it amount S&W late with we XXXX, shareholder replaced completion viewed successfully and of future million MFP, our the and secured in face to new working million shareholder, new in $XX connection previous a opportunity facility of partner letter and with be the a of which could agreement a believe the in $XX Ridge Bank as going strong both used our the capital as largest with CIBC represents

improvement these reduced backdrop, operationally well the through practices best having across activities S&W during a gross past inventory management, we With of key overall end as on structure focused the us without capital rate, put profitability year. lower in has results has to cost working have capital equity improved been closer as as implementing while margins, an aligning breakeven of The which this raised organization. all

the exceptional at shares reminder, thank approximately the are million. Clearly, not year so, approximately outstanding has work. currently for been task, to threading stock there and X.X want a and easy XXX,XXX warrants, of S&W the million here their needle or common bringing to As past total this I approximately the entire team of shares outstanding an diluted X.X personally

well Double going with partnership portfolio now on forward, Team With sorghum Camelina. that our focused as backdrop, a core exclusively for by biofuels led Shell we U.S.-based our operations, trade as high-value as are with our

believe in S&W. next the for the driven the what new market headed is It's our over We excited by sorghum about But importantly, so this where really more is. are decade. market we position

all years the Double first Team, working of -- have that. approximately aware, expectation not share investment makers XX% such year. we S&W some -- change share years, XXXX. about this on of and commercially XX% significant we of Team next about no you to the received. historically into generate rates, has acre believe grown Double introduced to to Based This XX% to As sorghum soybeans sales. can X we crops as a to from traded over from which adoption are market have commercialized acres broad research would XX% benefited sorghum to XX% In sorghum corn, cotton great market is million the through $XX of U.S. U.S. $XX translates figure of X capture sorghum the sorghum in expected million XX% since

Key Team including set the would currently through have strength our regulatory our product over licensing commercial approximately multiple build launched next of Sorghum in Prussic we Team Free this the and in trade The U.S. scale, Free the S&W with labels decade, fiscal Acid plus new Prussic continuous DTX we Double second-generation companies leading gross Grain DTX launch XX% U.S. be products we traded or or strategy and Sorghum XXXX in commercial of Forage seed Acid margins fiscal the Grain to is launch to in the be will XXXX of Sorghum DTX PAF in and agreements receive our to XXXX portfolio Forage our our innovation. growth to Sorghum targeted registrations. We initial estimate products. as generate fiscal independent Double and extending countries this that of on At XX% to on to

the The in in insect sorghum and in the commercial fiscal XXXX launch countries other U.S. fiscal in sorghum in fiscal of XXXX commercial finally, U.S. of broad-spectrum in XXXX, certain countries certain herbicide tolerant tolerant the XXXX. and other fiscal launch and

the with a licensing. combination of technical in brands an that chem has partners crops leadership been some leading distributors go-to-market is are technologies been direct licensing we to utilizes map enacted. and note to pathway adoption rates have and label team, via a established through of U.S., adoption rates of largest This retail LatAm where private the established model validated a with sales following ag by seed asset-light important It's model collaborations with partners and these similar multi-strategic the robust in along other road positions distribution

have, In build pipeline portfolio our company on there to with the an boast position is capabilities world first-to-market sorghum in our a strength. strong that that continue to impressive providing view, not market we another the very

XX% and an pipeline long-term see we consistent as look the R&D XX% sorghum, commercial high to CAGRs, plus strong model. that's decade-long XX% established So driven by margins gross

to we $XX $XX we technologies. that million, term of Near sorghum million which our sorghum, of fiscal that are focused global executing have traded sales established of on $XX.X which $XX is about includes million to million XXXX, against outlook for

in the saw outlook numbers December of which normal targets. Looking that the abnormal time -- Therefore, coming the normal March the of at through indicative early achieve X occur see we a significant quarter, isn't the year. to we months Last was to certainly look sales here in which the first during tend to as our have somewhat the to we for ramp our patterns, lot ending purchasing the certainly June frame. through months year, expect to we

of of driven the it. an farmers have have market high to increase majority by Double love that experience. results Simply research of received seek a growers Double user Team the in Our very with from who acres. Team percentage the Double confidence future is extremely high tried Overall, satisfaction Team being grower reporting growers positive put, tried

I of in don't level if the the as exhibit rise term the farmers' of from that prices of namely caution recent. well decisions, some impact I'd near impact the to Now as be like factors macro from a tariffs, remiss crop in as alternative few potential

sorghum sorghum are primary this relative of the China. of country, you the sorghum, as is impact As to net alternative most season. being planted prices Further could crop with a aware, a coming exporter importer makers U.S.

with production our germplasm have realize and sales. XXXX. all management of keeps royalty X to from while transition royalty with we effectively the model model to planning expected discussed our the point-of-sale in to be moving growth and payments the with costs, royalties will aligning timing be is market in germplasm in season, sales grower a inventory sales and licensees trait trait this business penetration moving to but with completed label strategy align loaded XXXX under costs licensees significant invoice. grower farmers. inventory at selling fully timing with selling will revenue production of to and operating in model to This model This private As recognition enable licensees The in royalty

third know, As product our the to full to and U.S. are in customers are June, are that get our quarters, logistics our court with from mode we fourth in and in business, you press which manner. and a teams run ensure quarters, seed sales to through key sync January timely

the have from few enthusiasm to a In fact, completed positioned that on meeting busy teams, be I'm our as with multi-day we will high of Clearly, for plans just put can the and that well sales we organization. next we the place. be are in strategic levels confident execute we months

Let's transition a to VBO. for moment

there's track. not to remains Shell While lot with venture report, joint everything a to our new related information of biofuels on

more wheat upcoming promotions As glufosinate ], to over-the-top into in be control an the with the system. farmers farmers working a XX% are months. to of reminder, this call. VBO There we seed them reminder resistance own I past which with effective in Camelina spring hope share broad-spectrum the with quick A ongoing [ JV. to a directly carries introduced currently interest able you fall, to

comment to it made alternatives an to turn commencement briefly evaluate announcement the strategic Board to to be on by value. Before shareholder Vanessa, effort that available explore mid-January let the in various the S&W me just in enhance regarding and I we may

for S&W of which initiatives the can to is consider alternatives company, press full and positioned Board the range we Alan today, not I imagine, lot decisive discussed to we'll there supports much value, the that in that actions what taken Chairman, release, is which that can you have mentioned success. we future best have Seed you of share all the ensure the As is a shareholder besides with and Willits, believe strategic optimize I potential strengthen

we the no process As timing in review assurance the form transactions the company or pursuing strategic of can that or result process, foregoing. unless or any to intend do be until any the and any timetable Board for not of disclosure completion a not that this further is further determines disclose it and has The developments appropriate necessary. always, there of as other outcome, will nor to set

it some over the over and including for to Let brief me I full and turn Vanessa for comments turn closing detailed the then Vanessa? you the for provide review our may a call will financials, upcoming any outlook have. year. guidance of questions

Vanessa Baughman

on Thanks, today. Mark. Good morning to call everyone the

basis me in all of the when financial Australian-related years. comparisons, businesses Australian Australian let everyone has have remind discontinued resulted look-back look 'XX. operations domestic begin, operations the been completion just subsidiary FY divestiture operations the for to international that the on for I the of you discontinued Therefore, Before moving of the to at moved period-over-period Australian the both and a

With that, right let's dive in.

which for forward only, this $X.X delta not year. million year. is in for versus private year keynotes Team, which Again, in occurred difference this the million million of QX international of million of couple our QX continue year we revenue million ex-U.S. $X.X year's is line $X.X excludes repeated reported shipping. last No year we of international of of compared strategy The primarily QX $X A in ex-U.S. revenue remaining remainder fiscal $X.X moving QX last to evaluate last timing the Double had year sales the here On QX Last as the was of label QX $X.X from had million Australia. of this on on revenue. of XXXX. to quarter. revenue The crop revenue,

sorghum forage our amount small there partnership. revenue, Team and Double including a other to and VBO sorghum, was pertaining million, Americas was $X.X million. conventional Americas Overall, $X.X was of revenue

our leverage bottom QX As XX% to occur. June sales the quarters, QX where and I bulk quarters quarter, which QX revenue and XX% QX dollars. with mentioned March seasonally expect to our the last annualized occurs quarters, we our will greater be to our is are the over being fixed about many lightest the greatest the absorbed of in QX, of ending QX also and in and as are which business our line, of costs volumes

$X suggests in guidance adjusted second that have the of million of $X our EBITDA to fiscal fact, XXXX. will half In positive we million

June unchanged business. quarter, between This ongoing ends fiscal in recognized be on $X.X XX, does XXXX, revenue remains with For our million $XX guidance of sales to and the million which XXXX, total QX. from number million last $XX.X the include international for

guidance more. break Let's for business a ongoing the down the bit

expect million, The in trades revenue includes contribute our in to of will sorghum DT and $XX million $XX that International the million and and be will global total pilot QX between Free record other $X will be $X expect be forage segment QX. will We to sales $XXX,XXX approximately million -- reporting Americas $XX.X expected will full $XX.X which in recorded Prussic in and the be be international was which million in sales million to sorghum revenue. remainder the are This million, QX in between QX. million, forage we conventional sales for and $XXX,XXX. while $X.X sorghum. recognized of approximately are And $X.X

operations. margin versus was Now XX.X% in for this excludes last to QX QX to last gross year. margin Again, QX Australian is year's really due in revenue profit Gross the of compared DT QX. change year's The year lower of last XX.X% turning margins. to here

gross We are fiscal XX%. margins between XX% XXXX to expecting total be for and

$XXX,XXX. transactional operating XXXX depreciation million let's includes costs the expenses. of fiscal compared were The fiscal operating all voluntary inclusive of QX last Now approximately and the to amortization nonrecurring business in XXXX $X.X of ongoing number $X.X QX transition for million expenses, administration to to also year. total, pertaining

QX. amortization operating million Excluding QX which $X.X as $X.X with transaction flat depreciation costs, year and at nonrecurring is adjusted last million, the during were expenses well as in

on to and about charges be amortization, total an stock-based stock-based $XX.X comp depreciation depreciation $XX.X comp, Including number related basis, that and of be any expenses and amortization VA for annualized one-time our will it at to million. operating Looking and is expectation exclusive million. about

year a structure. reductions to a have in fiscal believe expense have leading this QX of expenses number We significant operating year, operating made last reasonable very up and go-forward through and of we reached

with last and about our million mentioned I beyond of try we related As efforts towards a have being traded $X expenses business made company. align that, But plan publicly the profitability. significant business our to to we go-forward costs drive to quarter, carry

adjusted was $X.X EBITDA. million $X.X negative negative Adjusted million of EBITDA for in EBITDA Now to QX. to last QX a year's compared

expecting high half at fiscal a our removed provided, XXXX year of million fiscal the the for a $X compared negative in end Based for on for of in negative the between first with the is the the adjusted rest year I on EBITDA positive are $X $X $X million we a the high be various already end rest end $X.X to we on fiscal are of million, adjusted XXXX, of adjusted million. the half Australia's be For low back half inputs the EBITDA negative differently, year to in to low for the negative to to the businesses a EBITDA XXXX. $X Put negative be end expecting the aggregate. $X with year million and for about the range of million first positive breakeven million

questions. turn are Again, forward. to the the to over over that, call With went Mark. credit follow-up going to you since moving back of through excited take the details me million work secured coupled year previous of any million with last at call, Mountain S&W additional Mark I a $XX forward. want moment the capital I'm the to we facility years, Their endorsements with happy facility had we last Ridge mentioned, a the Ridge, $XX their done with to past be CIBC. successfully our over tremendous should which Mountain replaced for of letter by MFP, X commitment, to support provided with CIBC the thank the S&W working have As we to let working we're reposition team and with if

Mark Herrmann

Thank you, Vanessa.

First, place S&W and me we focus thank work a team can the on the farmers alike. hard get just over S&W where past at their to shareholders let entire to for to year value delivering

Going the in Americas. driven value, technology forward, our trait be to high-margin business by high in sorghum is well-established markets going

commercialization adjacent similar Our in and validated strategy products by decades is by crops. robust of success

Our launch set in is geographies deep, each the decade. multiple next pipeline year new over to with products product various development

acre. value $XX we value been Double our farmers product $XX to farm has the of gate between per bring validated. Team grain Importantly, is The to

$XX DT Our to between products $XX forage provide acre. per

Our Prussic when of independent When additional them, are you production allows -- farm estimated each significant dollars hundreds full farmers, $XX millions of $XX These look advantage Acid Free to stack of adds it loss to Trait to acre. you per an farmers trait take year. benefits of as protect they each against value.

stake course, as And JV. in we opportunity Shell which have large JV, our a of progress ahead has in large year of we of ourselves second equity the biofuels

and perspective With a thank to incremental to their the continued for forage S&W are our support. I return streamlined I the in business OpEx as margin that all from both in to shareholders traded to our said, believe position dramatically in place profitability. With want questions. improvements to efficiencies I other taking your we more products sincerely look drive an Operator? as gross products, well forward

Operator

Lake question Street Klieve Instructions] comes from [Operator first with The Markets. Capital Ben

Benjamin Klieve

of I got a here. them handful

regarding couple current a results. First, year the

inventory that ramp? such have that So that's level level pretty the here elevated year? do still of supply first real you already you -- I'm at of concern the chain? the levels for point as as what this a question in within product visibility commercial there's Is or any DT on a that about of Or curious steep inventory see percentage sorghum,

Mark Herrmann

appreciate Ben, I the question.

U.S., Partners and operates over brand, our the to Partners with comes from the the gets we Sorghum S&W our our end at returned brand inventory So at business of right? warehouse. business, As spring in XX% up unsold which all completely of Sorghum look picked

and annually that growth moving and So pre-existing plan. from we in in there's into forward with see we're expect built the that to reality, the we no business start the know So exactly we supply right? channel, had that X,

that activity with pull they they year. warehouses With the the back in deliver and then seed the count accurate business, have at into their the brands do and same own the license end they an fact of company

inventory, will in system fully moving the about shipping on move the So companies. this in cost and And will model based our pay previous to licensed a to and of at as seed actual more company, of trait licensed loaded a it. as right? ourselves, our well manages does be including where cost shipping of sales talked royalty call, like germplasm goods, inventory we'll internal So goods to takes company I year-end, each just of by every reported it year the grower then was their royalties as that

So incremental their into both when carry pull and inventory. some timing as quarter, in there's a inventory ordering a as did to year, see inventory to last bit licensees the And businesses, of information in of of we the fourth amount needs into next year. as pulling gap to each spring well the fill

and on farms, potentially, analyze with inventory slowed we it top it, of QX, the licensees there'd of as right? indecision working moving, along mark think our the process versus last to people things VA bringing we're their it right some if So a QX year in geopolitically marks through seeing through QX of be in now and that in QX now. are far work I be bringing on the we're as in down question going some as and of just some question with

planned year and what their couple effort next they plan the over need have their sales, of sales, for this that For shipping, what demand can well as working we'll they up one, weeks. as demand, production complete ensure next for their for their with what inventory plans, production year's their then to customers

a far well with cropping on on X the the in farm settling a farmer was unknowns decision-making commodity Australian been of some volatility on VA corn, the think of delayed one I see cotton our as believe we'll between amount move going we X be as do situation marketplace, well as forward. So their I we of farmers through as process as huge as all crops the of as put the and that and to and kind that crops decision unique the pieces of are and into But soybean finalizing out sorghum. price alternative There's plans. that

problematic anticipate help a that run material we're really a business sales it's don't the the seed their that royalty level the farmers. companies significant in to to piece. I efficiently basis on versus cost, carry because they included with had seed going believe a germplasm trying which But I do to model is trade of loaded us place have before will activity inventories year-round bringing model planning and to of royalty avoid the fully taking appropriate

is to still I organization. it? unknown. out leaves says that that that I rolled does Vanessa I it kind we're guidance don't know see huge address a -- and the that signal track of that a have versus But Ben, the off

Benjamin Klieve

I That's lot there's appreciate a pieces Yes. -- moving Yes. here. that of

within kind price question, acreage a market year-over-year are especially crops? year curious but you're guidance appreciate of within if certainly guidance, that got for you the the do flat next anticipate you very level guys acreage level the kind you expecting And alternative of the you the I expecting Vanessa, out, rising guys but to was better are of current So all embedded don't my the the regarding that decline expecting the -- you I or directed alluded level and U.S. The my uncertainty, of you elevated some that your is given in Or sorghum commodities, to know helpful I'm country? corn, here alternative revenue this which given of to lay pricing U.S. you context. embedded acreage sorghum of within market.

Mark Herrmann

you at contribution Yes, the if X.X it's X also had look with X.X swing to a great sorghum years the planning, then a also a weather the it, crop year, if through of on cotton the sorghum But and which question. prior take crops. of prevented right, got please, from move crop, you've acreage X had at up. market for over late to planting acre growth trend the which Vanessa, 'XX, add. helped of been sorghum of was a the if bit a others And a trend, alternative first the Farmers last growing million, wet, look sort I'll you planting season and of about acre to very million of came lot back which million

if economics price, didn't really I year working a build is good market this place the into plan corn anticipate right? did plan started very get does But growth on sorghum crops on was at the year it It X.X of alternative acre of look out perfect depending from leveled happen, It's as and very acres. pretty the But the impact. based -- not build we increase base. return million we opposite saw our market, was price, other X.X back significant to have spring. off our does in versus on planning So move planted, we we strong, the a acres. corn the sorghum seasonally, acres and swing taking which based with what what's well. acres were to is the you planning positive. raising a down at price acre the a Last We a based strong the pieces commodity at little prices on Commodity very corn the X-plus million million X.X look bit to million was which sorghum as

Benjamin Klieve

Okay. update on new conservatism Good that, to on then. embedded the debt the credit hear Vanessa, levels facility. within a and question the for you

Australian like since the -- level So debt sheet, getting the of I all, working guys than off ripping first a the XXXX. then that's balance of between I at sitting been see are think it's exited business lower and you capital

months? on So you or And over this your front. then And the here on real here. half that in further availability working XX within today at my question the you is capital of progress second twofold some degree have new maybe over to credit of congratulations next the level The reductions of you facility? year also have visibility

Vanessa Baughman

Thank the course. Ben, you, of Yes, question. for

remainder of and in So for -- year. comparison the to mention last fiscal -- I'll we XXXX this

end anticipated will that position mentioned. year. what -- to just end last debt than exactly XXXX goes we will it's it or you We at And fiscal a year lower

on the meeting OpEx as working and targets continued on So capital well our as OpEx focus component.

to costs cover that EBITDA perspective last VA. a related able the achieve you $XXX,XXX to flow the year, QX we reconciliation adjusted of that we transactional for" things versus While were through one approximately in of see are "had in to can from our lower terms that within of onetime financials debt those cash

unfortunately, we're agreement. that Ridge were in time is working was remainder for at cash of a to the is today. Ridge. XXXX, But planned, that right, we perspective supported particulars fiscal had reminder, Mountain through well as So the we Mountain And as with the a the capacity not a position an outlay it of from with asset-based be a facility type it that

to to in That over adequate and the for that related onetime costs. will those that expected in again, at is and remainder costs some QX, lower and a year-over-year nonrecurring XXXX. we So debt as those us But least start $XXX,XXX say gives QX added that VA. and financing QX sales credit complexity be position overcoming themselves overcoming of QX onetime I position to that will

Mark Herrmann

far feel Vanessa we was for too in, just I S&W as came I and much So inventory sales. add? carrying Vanessa, Could did

due but quality reduce inventory, up year, XX% So just inventories approximately by as we this should XX% what far as versus about most in we which carried XX% carryout finish lose positive inventory, last to as out has tied aging. also to seed cash you huge a we year,

So it. it's significant reduction a in

the totally this capital, working to leadership reducing in say next the as I even it's germplasm on going you've it inventories new up I don't the a tight as we're ramp have possible, have XX just got And keep newest years, ability because the to that continues over of product company believe the quick focused technology, to the position. drive to to quickly the ability newest really advancements pipeline very but move. strong puts to a When

will the will place have success positive continue support of very a as aggressive profitability, on us a to put well impacts ramp-up capital very well. also, it working it to sales So but as in both as

Benjamin Klieve

kind think from me big of embedded context the question. within and a the which was you sorghum perspective to could of sorghum kind these ramp Very Okay. long-term larger either elsewhere? outlook you In R&D in all out it? of scale come And this there strategic One the just more commercial in I'll review, degree get from a the S&W having back be for could S&W a curious, any that kind on constrains then laid at potential of And it's of an picture human good. mean, the financial synergy of that queue. And I'm expectations. if material this a business from or I of a capital operation the constraint is unlocked perspective? or perspective kind

Mark Herrmann

That's point Ben. a great and input,

the contribute resources at does accelerate product able be really significantly we've strategic pipeline got how So entities look spending or internally next opportunity sight that to for pipeline and in years. release XX there's a the they're or trait already always to it either for a to

as opportunities ability So accelerate organizations and think how process, there their resources their current really and for I assess do to for paths, to or in other of S&W's different and to reach and either through assets significant -- investment places. ability S&W contribute efficiencies right, inside the be will escalate we the go

there'll do value significant believe identified. I So that be

Benjamin Klieve

been Congratulations. my you questions. back luck and Very and queue. I'll good. very few half taking this year, busy get of All second months. Good in right. last Well, I a on productive appreciate It's

Mark Herrmann

Ben. you, Thank

Operator

The with M. next Kurt Carl Caramanidis comes Inc. question Hennig, from

Kurt Caramanidis

constraints selling Camelina from next Shell? Are you give that could review year VBO. year position any for you this then do ramp color that of us of kind be on in business? there that a And monetized Or as potentially? is how kind Questions on the would

Mark Herrmann

cover last one I'll the first.

Camelina control expanding of for is keeps focused easy farmers with of weeds will VBO continued very at I lines, very marketplace as economical particularly their positioning unique So forward. their for on product position. success in ramp-up believe their position, do move trait which the a

at far Board the on to positioned of bring the look Alan the opportunities really by of what the I Willits than with we S&W say are as looking that we shareholders specifics can't VBO, one, Mark as value it also the Wong have all it, and we're speak As Board, was Chairman I other Willits. Alan to probably to move and as at forward. other

Kurt Caramanidis

Okay. but thought of I but have wouldn't what's couple? couple Fair that year, know you there? be did to million a then bucks split, did -- enough. save a going the OTC kind considered a process And free, of reverse I know you you the to the

Mark Herrmann

Vanessa point Yes. in right? this efficiency that $XX the tied between sales bring about that It just has to a you position, that we've shareholders. for would publicly of processes. good potential options expenses traded. got what leave $X And a million today, around that I as part strategic speaks And discussion company we're with that being to looking million just value up whole bring S&W range at positioned

Operator

Instructions] [Operator

Robert Blum

to the sorghum? just anyone in questions online any we've competitive have products the queue, Operator, them got herbicide wait and -- within here. if portal I a try Mark there, the bucketize specifically I'll while from out maybe about couple there's see Vanessa. to Talk here resistance we else briefly to of

Mark Herrmann

Yes.

cropping far and a well in So lead control programs of and as there's options S&W are significant had as X penetration those feedback farmer other the in over marketplace. both that each positions, as we volume And as others. has market

as position. but farmers. just grass out, we to leadership pipeline, on and DT So in strong market it comes to position, it, broad also I as spectrum keep can a do at work very, then believe not control, that with across value brings we're very And the we a look

product very into Everything of driven investment good to been truly other benefits portfolio drawback at is in your going farmers, think on really directly livestock. big does health, of predicated peace pretty you're going for positive great to is animal a And and our and and a Acid Prussic trade provide grazing on which farmer Free, is to feel economic and has Prussic able at Same of you be feed with thing of in got. be your looking and impact. great of portfolio of the pressure. be the we if the a economic cattle part peace event acceleration rescue approach I about the to look Acid for the even you post-harvest as Free intrinsic But mind mind our acid values, of we've concern prussic able heavy the that and has know to turn The a knowing driven to the crop for forge the been drawbacks. sorghum, much position the puts or utilize grain completely using sorghum benefits their resolves a both about

So where for significant I the position. as pipeline strong success. There's advantage our to a currently believe a got as far position we've product and at we're

Robert Blum

just impact change Maybe that of administration. one and taken Okay. overall provided but into on Maybe these, of some to have question subsidies, a broadly the I the What of just other in think you of more tariffs, account few sort estimates here. you with touched the you've just -- here? more with this basically some

Mark Herrmann

#X And exporter. internally, around a U.S. the Robert. it #X great where out the had a China importer And sorghum Well, is question, right? the we've of And the bit. called I tariffs. the discussions is that's globally,

far there's right? China China go And tariffs be consumption. where and relationship from could of the to the pretty response then those, tight there's around sort as and So a between the they what U.S. could concern as

we'll for. of we So something not have sensitivity, significant but significantly if an that on assessment. a it's pricing in the And We'll they products numbers or and will unfortunately, it have a it sorghum as aggressively, speculation sorghum based is hamper a on know assumption overly But market. importing Clearly, is could all forward. into conservatism built U.S. tariff, happen, go the it more block not watch built today. right? It's we

Robert Blum

right, All here. Fantastic. no Okay. questions Vanessa, further Mark, I'm showing

So to closing turn Mark, it guess for over you I'll I remarks.

Mark Herrmann

for I appreciate forward to speaking everybody thank you all in morning. this hopefully I really engagement to joining your call. want shortly. with S&W look Vanessa And Really again you. and Thank this with

Operator

today's presentation. Thank for now attending concluded. The you has conference

You may disconnect. now

S&W Seed (SANW) 13 Feb 252025 Q2 Earnings call transcript