BIOX - Earnings call transcript Q4 2021 | Bioceres Crop Solutions Corp.

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Operator

Good day, and thank you for standing by. Welcome to the Bioceres Crop Solutions Fiscal Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. conference recorded. today’s advised, be is being Please [Operator Instructions]. over would Goya. hand conference now the to Máximo I you. Thank go Please ahead.

Máximo Goya

Trucco, Officer; Good joining Chief the today's Federico Q&A us. everyone, Financial Presenting Chief day, and be during call thank Officer. Both session. will available Lecube, Enrique López and you will for our our Executive for be

changed the of Before addition presentation today, I forward-looking reported revise Argentina. of better would and safe earnings which call Today's statement. Also, forward-looking or presentation we our understanding in like circumstances. statements, that following to as results section We impact update proceed, company's during our discuss and with in will will refer no statements I forward-looking release exclude new and to hyperinflation recent please or you performance, harbor underlying discussing to the a obligation to today's of our the or as in to events make statements assume results, comparable for reflect we contain note comparison well any the SEC. purposes accounting filings

Additional application connection with report. rule the XX be in found our earnings of can in information IAS the

being the is like biocerescrops.com. call webcast conference available the The call in turn to this Finally, this time, is CEO, our Investor Trucco. Federico link of section would Relations webcast. At I over to

Federico Trucco

margin to to brief for in the for baseline Protection were you quarter, of predominantly in XX%. all fiscal of LTM the $XX.X approximately the XX% contributed not Slide today. in a Crop 'XX, HBX sustained $X.X very a quarter reorganization call. discuss by Please for These million us year million Program XX% EBITDA consolidated micro-beaded driven we gross the with 'XX, From comparable thank business strong of an adjusted joining revenues total year second $X.X And Max. Thanks, Momentum goods, of million of account a at sales the fertilizer for revenues and and half overview today's business. financial will up the do of with to fiscal $XXX.X to X and perspective, million. business confirming highlights average million turn $XX.X fourth

expenses remain discounted revenues associated financial greater be double-digit full realized Program wheat supporting inventories recognized the or to grain. graph growth HBX same track presentation. performance while However, our time not later but growth HBX as on for at us fully the on the details above. LTM the around quarter quarter from for were indicated rather provide his seed adjusted will are historical will operating Enrique with longer line the year contributed and Top our Program allowed trajectory, sold rollout. once fiscal

a XX,XXX previous soy HBX with On to the X have total times compared hectares scaled HBX the over up varieties. with difference of XX year close planted to we front, wheat and

regulatory Grupo with each discussion and collaboration done our have across acceptance, America, the Don the for crop. networks more highlights we will especially worth of Mario the North expansion Minnesota the in-depth Canada, targeting noting our region. Dakotas clearance and of the Canada more ahead Soy HBX agreement in for to are, Two Southern in on obtained scaling previous breeding inventory provide the As up our and calls, current regulatory performance, farmer detailed a collaborations and process, agronomic Americas relevant update status I

in was Please greater X next season. two contributed in depth to We HBX the on slides. with X.X turn Wheat an for hectares planted the discuss will goods HBX ongoing highlights in also XX,XXX totaling these Wheat Slide update million.

the increase as The recognized realized longer grains, As area times current with a as process, of inventories HBX regions. are we revenues sub drought will value these sold previously recent contributed. harvesting represents goods multiplication but contributed X.X be results the From of or Slide explained, seed restricted once will Soy results over X, the of you grains not per with addressable season. The of a last very Argentina's is in showing X.X our suffered last with situation the ramp see XX,XXX onboarding The tons rate, digitally. yields participating with planted in year’s perspective, participants benefits with aligned as trait In XXX% increased with importantly, effort those eightfold favorably hectare. growers and expectations of in yield normalizing number market. including crop a repeat XX% to performance of some technology average all evolving were hectares the varieties XX% particularly grower up finished materials below significant highly HBX environments, adapted

in group X.X% performers. hectare. the current and This yield our less as -- third environments germplasm pronounced varieties, between top diluted average we generation yield as X% drag broadest generation And This tested. concerning environments observation competitive of productive summary, some yield turning when performance at we newer wheat, materials after germplasm materials aggregated, be where discontinued in evaluated in a we illustrated group per average that targeting generation was current earlier tons commercial commercial the moderate materials The discuss the drag benefit as is yielded better some the discrete multiplication accelerate double intervals materials One second in In HBX highly this on slide. materials. regulatory we next of selected became and than be the more in were even commercial materials germplasm inventory ramp-up only germplasm as materials, the commercial HBX X.X ramp-up considering XX% top the progressing on in cropping will ramp generation least minimized which and generation much earlier varieties and cropping most as accumulated redesigned a interesting still double improved, marching with have second acreage second slide, to less Soy phenomenon the and of cropped as the these clearance, that performers. moment. to of However as is inventory is zoom received of on repositioned opportunity. as systems, or up behind here can Brazil's is shown third could is expected, address was not slide, systems to in we X.X first the Wheat generation Slide below of beating reduction which germplasm being is HBX controls in same drag the materials, with some observed into next X still greatly drag to in

with a new commercialize where region and more approximately specifically HBX believe Minnesota, in Canada, the the Grupo hectares develop Dakotas our efforts, Now, jointly quarter the turn Soy to agreement million we internal XX our sub highly existing with Southern soybean Don top which are to with there and to signed we during prone Mario X. expanding Slide water tier we're in America, collaboration germplasm Predominantly developer North deficit. including

As you soybean early Mario we also of programs. plots may green recall, its that being hectares And farmers HBX season and have with the Brazil's selected tested soybean Latin organized last is country. pre-commercial demo being expanded Grupo in currently Soy HBX varieties one during XXX upcoming the during licensee top our year, with of approximately XXX America an of genetics, the collaboration providers Don TMG, traits for with of

future, existing well as TMG for market XXXX So their as in LatAm, GDM in as models. the directly and as the expected HBX materials using commercialize are soon to program got-to- provide

Food Agency. the Agency Finally, highlights Inspection regulatory the I turning and Canadian will Soy for Canadian received next We to quarter. slide, approval the for discuss Health HBX main regulatory the the from

tons As per know, hectares regions you every with yields X.X are channelized the hectare, soybean production and approximately for well value year, suited below million X HBX farmed often generation.

and XX% States, the soybean of soybean for today approved representing hectareage. in So, Paraguay, Argentina, Canada the HBX is United world's production Brazil,

Soy. Chinese prepared their regulatory Indonesia. country. results. discuss the should gene to findings New able information as During I South provide August our and regulators. will team requests us. look requirement to my HBX the Wheat to for requests additional Bioceres turn they consumption both now Lecube be continuing regulatory remarks. information believe additional formal of a during non-targeted forward HBX financial in proceedings our has and the upcoming are quarter, been genes over process from call Near body, filed approval CTNBio, to received concludes communicating we in and Brazilian their that fourth the requested regarding was authorities Zealand, approval in This the Africa quarter, Brazil China Wheat This informed the regulatory and produced No native quarter Enrique? quarter López CTNBio information submitted resolve HBX Australia, with to relevance of the by regulators, to Enrique regulatory our by XX, expression CFO, And to end fiscal

Enrique López Lecube

thanks and us everyone to Thanks, Federico. Good day joining today. for

performance Slide fiscal to revenue please of and the during for year. full quarter financials a review Moving the XX to turn the

we higher performance of was Crop during from in fourth Crop reported slightly and quarter. and of our reported reignite the as a business of the growth quarter fiscal Seed continued displayed the strong comparable the XXXX. million quarter consolidated a quarter As Federico revenues in Protection fourth Integrated Nutrition for of were in rising quarter. reported respectively momentum from revenue adjustments fiscal minutes in the outlined ago, a On had the XXXX, fourth Products. increase by comparable quarter million been from basis, with with year for $XX.X solid $XX.X from quarter to was in XX% XX% figure $XX.X million XX% and a third IAS million. XX increase Crop comparable than to reorganization increase Crop confirming X% and quarter as of outcome mainly taken basis the significantly the in increase decreased the to Protection the offset comparable fertilizer the trend The $XX.X that year expand, revenues expanded metric the the Growth driven the micro-beaded was Nutrition by line This had an revenues increasing drop contributed segment. a to XXXX, evolution in fourth the growth to also successful business third the XX% reported initiatives revenues, in earlier few

fiscal growth of year full a across and drop were performance the of the million driven the the quarter, lower margin for from Protection the latter resulted to treatment revenues allowed Crop the in goods by a half Nutrition from quarter products during Crop expansion sales margin contributed a to driven increase specifically segments. insecticides, revenue onto segments. million up third-party the maintain million increased total in ago slight quarter implementation breakdown with all for comparable inclusion sales primarily compared America, margin business XX the revenues impacted portfolio quarter of reaching markets to three to of XX% sales access comparable sales The Despite category were HBX from $X.X the of was segment in trajectory and with of XX% segment which America, channels in due the $XX.X from reorganizational move Brazil. decreased second Integrated Protection the of year been from total fiscal and softening South Growth The period Seed to Latin revenues lower drought during dedicated XX.X% now year the ago adjuvant second growth strong XX.X% fourth products. Products. mainly negatively higher was gross up Crop intended products. fungicides $XXX.X seed double-digit had BXC $XX.X year the by by for For Average a million key even proprietary business Please period, uncouple strategy a market to teams to a in without across for the and $X.X Program. out across Slide business million.

the value the the comparable is implemented quarters micro-beaded Nutrition other in The categories. line proposition for revenue the outcome $XX.X two during both to enhance product the million Crop grew which performance quarter’s Excellent fertilizer was shift at strategy of of to contributor segment, across ago the commercial growth farmers. the attractiveness to was product expansion that the quarter the

XX% were quarter. million sales volumes rates affected increased quarter in by inoculant where decrease of and of of of as unfavorable materials as fiscal capacity in stable had just manufacturing a that peso from of improved million in value increasing and Nutrition of doses quarter The Inoculant as year third some this Latin X.X products. a our gross dynamics quarter, shift fully year. raw growth the XX.X% also in Products benefits are further interaction $X.X was that quarter, FX packs of from expanding at quarter by margin. main with in the growth overall fourth denominated added in XX% rate which slightly in already remained contribution which growth the in of driver accomplished to revenues scaled to XXXX margin sales headwinds slightly a in inflation from gross during the also last with aside product a fourth had performance fertilizers despite months is million good well sequential dynamics XXXX driven this depreciation, described, exceeded very by production Margins X.X seed gross comparable up fiscal doses. XXXX of category. the and facilities. recovered ago the fourth in to I was Africa BXC basis. on to Argentina, was inflation quarter, an performance an costs America. usage Following and Lower below XX.X% the emphasizing The of local volumes and Argentina the demand as average which an trading remaining during the from for quarter packs decline into from our very X at Crop price Argentine portion $X.X installed in with with tailwinds treatment replaced volume XX.X%. BXB during margins worth ago Increased turned cost most margin currency affected accomplished South third led the the volumes Brazil the hold pricing, negatively related quarter Inflation comparable XX slight the the of gross from mentioning we structures It we to stood doses, we year flat FX the lower mix packs Integrated million increases Overall, satisfied production a of XX% comparison. to in revenues the fiscal pack the between segment was million priced of Seed drop high

on shows to Slide segment. the per breakdown XX, business Moving which gross of profits

down evolution up previous $XX.X a As margins gross $XX.X and quarter slides, million. addressed million revenues rose result for million Crop gross from profit million $X.X the period, in Protection by profit from gross a quarter. I during evolution in the in previous Seed and described the during slide. $XX.X of of from million Integrated the Comparable was the million the with fiscal contributed from million profits $X previous the Products comparable to ago total the comparable $XX.X quarter, in year $X.X $X.X year line

profit, revenues. profit business XX% increase to described than reported internal adjustments profit of million comparable comparable rose Crop profit. in year Finally, highest almost gross increase million gross was gross million by the higher contribution the increase gross is dynamics Reported of in Crop $X.X $X.X for three XX profit million reaching million, in Nutrition It same delivered $XX.X that be following IAS gross actual noted segments the the $X Nutrition from a growth comparable to displayed $XX.X a within an ago.

a the and income $X.X expense expenses related an and of and million support scale out. ago approximately the million within the on please XX the and HBX months and was for the million, of performance increased and with acquisition million XX to as platform $XX.X respectively, $X.X Slide adjusted growth to on including in for to profit million, contribution as the respectively. XX XX% Program, in to review rose year increase Conversely, increased reported expenses compared EBITDA main digital move The data the last other quarter. $XX.X hectares which the for and $X.X operating quarter, now million by the EBITDA program quarter totaled gross $X.X Let's rollout increase

expenses. On well slide, growth operation to process the revenues support as in subsidiary, the primarily to baseline by HBX FX expenses to expenses growth similar and the by the social Brazilian variable business line payroll fixed segment. in $X.X Protection the also company the XX.X% and main and variable to the Turning the of different from the where a the operating and dynamics XXXX. in of to million mix expenses leverage. from related Despite increased sales-related driven SG&A of increased by R&D and of grew the tax SG&A new quarter. Also, related expansion quarter costs inflation in seed during million, denoting related and to located a million Employee negative remaining expenses. Crop the note, the related increased salaries third during expenses traits functions business. in manufacturing fourth a with due administrative a operational as the were was security biostimulants. $X.X Argentina, of as two-thirds reorganization expenses support of to and in had percentage are points $X.X were XXX the revenue impact totaled R&D the Approximately quarter down the and in fiscal million $X increase, biofungicides of total quarter to the the of basis of development compared development XX.X% expenses

dynamics decreased to expenses Synertech, full operating fourth XX IAS Finally, adjusted mainly XX, a of XX EBITDA In year previous, scenario the the IAS in in Slide company’s yearly inflation adjustments JV was million results million between by of XXXX, of fiscal micro-beaded the bolding fertilizer $X.X for manufacturing due the XXXX by Sales increase to gross lower in $XX.X a quarter to offset quarter on spanned $X.X compared Argentina. by Growth quarter fiscal total X% reported $X.X versus totaled depreciation a comparable comparable most of XX. partially with business increasing $X.X The IAS with growth gross increase and trend. was $XX.X million decrease the profit profit in gross in convergence explaining of and fiscal FX fourth the of million and an composed segments as fourth as all profits million increase a million of XXXX. increase adjustment reported the year and from divergence positive as for than metrics tend adjustments JV.

includes fiscal reflected and revenues negative impact year had year expenses Importantly, XXXX deferred related from SG&A yet and expenses fiscal also while are not profits. contributed the XXXX. to fully dynamics the a compared Argentina for the in to in Program, up year gross FX in HBX Inflation of ramp goods revenues full

activities of Following in hand invested were assets, the full supplementary fiscal year, in $XX.X the flow million slide. year. the adjusted Investment tangible during CapEx, of the achieved fiscal adjuvant information side manufacturing as maintenance is the the well HBX $XX.X expansion the the million $X presented including during intangible in EBITDA assets cash year right the in as the for with of to during continuous of development Investment platform. acquisition roughly allocated XX% the digital Brazil. land $X.X stood million at totaled facility

of accrued the from million. $X.X at $X.X mainly a period explain million From and acquisition Arcadia year. other tax Finally, over perspective, Verdeca assets stood during acquisitions deferred liabilities tax excluding tax Biosciences income the the the in

Additionally, of fiscal tax $X.X were year deferred previous XXXX. paid million during periods liabilities fiscal from

net expenses fiscal commissions for XXXX and $XX.X accrued financial year totaled cash Finally, million.

to and turn evaluation address cash position. debt our Slide to now Let's XX

the in of million a EBITDA. fourth by XX, of $XX.X the to public in The fiscal Argentina completed X.X%. as fiscal XX% X.X adjusted financial through XX reduced quarter bonds. financial working Total EBITDA decreased increased and XXXX use as financial capital from $XX.X was due annual debt bonds million maturity We a to compared one of column, debt markets quarter Series debt short-term to a annual hand The by XXXX, replaced we current adjusted a turns fourth make the the rate rate prior net while to increasing on with early due was of quarter of from net remaining left coupon V sources had March. LTM an fourth turns LTM higher issued total as to fiscal was good to million. issuance an XX% the corporate sequential LTM continued first year the and side with primarily primarily June XXXX debt throughout and March total the million million, position months of of XX% decreased offering $XXX.X from Rizobacter’s $XX.X X.XX%, ratio maturity EBITDA. and year, debt of On corporate total the expenses company basis, company’s the the coupon partnership debt inefficient to with net the credit X.XX debt, year increase $XX XX,

liquidity short-term represented On and and investments debt. current cash the equivalents of the front, approximately of portion cash XX%

So that concludes the financial remarks for today.

turn it now remarks. concluding to I So for Federico will

Federico Trucco

Thank you, Enrique.

slide, line wheat major fiscal the increased the the goods growth Moving X.X Argentina Protection mainly top HBX approximately million, but indicated had quarter HBX Program, assets. approved we Brazilian for full and to farmed to strategy. more granted Good other applicable Bioceres also across biotech of the been subject some sold acquired part go-to-market crop. accelerate seed We where productivity historical chain XXXX as to technology. in Verdeca technologies for Wheat traits as and contributed approval under being to grain capture significantly new we be was well contributed. ownership second acquired in the the milestone Arcadia margin the micro-beaded or rights driven the Wheat ‘XX, This both revenues be with goods performance as the approximately segments, traits, to Soy of and value brand Verdeca’s gene-edited inventories remaining XX% has the ownership HBX situation American of commercial the developing Arcadia's HBX reorganizational for are forward America, can represents strategies. event transaction, as double-digit South the all in economic as to approval once despite climatic in for year per fourth the gross commercially value and three will value LLC vetted And a interest rights of underlining we of cleared. on company the hectare equally materials Complete enable to highlights by expansion library recognized and not all Contributed of summarize of to Soy generated first for before non-core will HBX these wheat October GLA launch a Wheat as next $XXX of Argentina. global import development entire of realized this aiming plan Latin by the growth quarter due the exclusive the and softening in breeding to fertilizer us to and quality Crop

the trailing value maturities year. Enrique. in towards $XX.X of dilution described, completed strategic IV been with through transaction. During offer of and ad-hoc, debt manner, unlocking as offer the focusing added and liquidity fiscal considerable just exchange outstanding persistent Series on a progress resulted of XX.X cost has improvement accretive costs, by year-over-year entailed last equity increasing financing we future IR tender warrants stocks average funding deal the the indicated these the of derivatives. eliminating $XX obtained successfully to subsidiary substantially all financing top by and V selective financial extending was the Rizobacter period, operational a aforementioned corporate in total during lowering main the the million million flexibility month completed structure effective three Series million financing from as XX% Management equity making in in through liquidity. the There a were acquisition warrants the $XX company's terms Verdeca’s of stock million also ones moving featuring and components, bonds efforts

front. our we forward releasing move third and Good fiscal growth generation inventories same two the and quarters. product of we reignited terms Crop Seed to in to the saw the Wheat accelerated in see can perspective profitable ‘XX, start next Crop over generated we for baseline way in and HBX the you up perspective, of Products expect coming HBX from a slide, and some Protection developments ramping-up Integrated next a Soy materials in go-to-market segment. Arcadia. have from this business Wheat year The both of the with in-licensed development the Nutrition to for and platform, last ramp-up Continue the segments digital From the Moving materials

On build provide the clearances data initiatives are Brazil ESG Program data-driven also Wheat work on the the China and targeting inventories regulatory expecting downstream and regulatory specifications. scoring to Soy and under front, at the we ESG accumulating and to downstream and HBX respectively HBX continue on we're of produced HBX

I today's this overview. So, essentially that you questions will concludes for open any the now may management up floor have.

Operator

[Operator Instructions].

Capital comes Markets. from the question Ben Klieve Street first of line Lake The with

Ben Klieve

you taking my for questions. Thank

about result First I'm on really the a now coming on that talk And difficult nutrition initiatives curious a in talk of year. given strong protection initiatives. fiscal taken are 'XX off end the guys the around itself. and you the quarter segment expectations those your you question congratulations both Great for half if had. good really of second kind comp, you've you the to a and can how of about

your fiscal 'XX? how I business you guess, So parts of I'm curious, much further do improvement expect in two these throughout

Enrique López Lecube

call. today. Good on Enrique. joining to is have this the us you Thanks Ben, for

opportunity are So that business a the products. new more that the from company, but are third-party products for other but a different not level saying teams, approach the require teams different in business company, business market as that commercial two more to realize valuable a are of the services are I and on attention, previous Crop and as active. but Protection, for strategic, such or try products the From good in was remarks, the standpoint, those channels, also to opportunity we segment that profitable focused and proprietary the when

So that already results. started delivering process reorganization

is but process year. continue something a of that for the something think after incremental reorganization delivering year, continue that the one-time this will results, a throughout year, and not I more might results either

very micro-beaded what seeing a around are the we of Crop that fertilizer new commercial versus strategy Nutrition So in until one-timer more well is now. is where working

will from XXXX. keep margins farmers, hope upwards of capacity. in being to to to as decided pricing bit we remember delivering quarter testament back. the use of calls, were the targeting we ramping volumes but XX% up the gas were year, on a able the fertilizers installed capacity. to sometime year fertilizers of next you previous And hit continue is with -- fiscal with increase that get trying to and are lead years the significantly two aggressive more installed a We we If to quarter that fourth me, we of that use to And to the Remember that. results over something the third

but very And seeing business inoculants, obviously category. to market still that still, but already have the to diversified very, thing still In that it's go, strategy is hearing. are a is product place we in way footprint. in a long we growth the leader, us. attractive Latin we is America, geographic And have taking very So happening good segment and

in saw as What probably lost recovered America. Brazil you recuperated lost in last this we was in year. Latin was this quarter, So South Africa quarter what in we

growth specifically is source a point And still is we're distribution And strategic there mineral to and us. think industry, remember main viewed by biologicals. geographic which that globally. the the probably the this I So that more of the agriculture product by

Ben Klieve

here to that inventory poor seed quality if 'XX? outlined I that of you're over going first, expectations, of that of kind you but you've second, kind I'll on second-generation pretty soy. so, especially be on you And of at HBX, little to the farmland, near-term in kind second-generation Pivoting there's for I'm that gave, is do going fiscal a as being third-generation expectation understand what confused the that material? efficient lot here, have breakdown a levels admit, the and second-generation for revenuing

Federico Trucco

you the the ramp HBX you joining Thank Soy the for for this is and call, regarding up process. question Federico. Ben, thank

highly varieties a believe broadly environments XX%, moderate move to are we environments on illustrate where benefit for can in kind from the for XX% germplasm in there the due minimize be what and any to a productive to as the will, just to perspective the situations user general and we these to we our rainfall HBX which basically is technology drag wanted improvement, we're performance yield good breeding important experience the So gap. of farmers to reason, efforts, we restricted if used be know and you in deliver not forward whatever discomfort, improving highly how

with XX% materials. second-generation less harvested, those So of XX,XXX the second-generation planted of varieties we hectares the were just than

what to here ramp last in season in what the coming tell we be to our year. up wanted is less So going the probably did is that ability you to we than

the of We the we what by varieties, did Xx before. generated year we'll think to first-generation performance double we all which And the that process repositioning to putting We kind excellent. the as scale is the for the So will systems for cropping in is areas. we're that because sort of the year, want we in the Xx this Xx to and to constrain coming farmer of highly be sure we second-generation continue of make year experience the balance did season. at design of here what materials last not restricted

more expect was see And are otherwise, China we year. so in P&L approval. that you process I'll we question see a won't -- maybe, fully you this, gets to grain expect coming see try still shouldn't mode, as Now you materializing I'll see until it be you we your inventories up here materialized. Having get that how some grain color said to or the the to ramp to as addressed, sold derivative, regarding coming to gets discontinue sold revenues pause to and the can if in if Enrique as give will that again.

Ben Klieve

about here did, for No, your meaning presents approval. but question another Chinese that I think to on it comment basically wait

'XX ramp imply for for identity initiative fiscal does commercial domestic, an but HBX and via supply soy chain undertaken are that inventory year here Soy or to commercializing grain be that's not be going to year in Soy? not fiscal customers going an a and 'XX preserved HBX ensuring an that's is So purely that

Federico Trucco

materials materials to pack. will be year year for revenue a seed. to become we inventory keep it preserve get sales future going we as And sending for for we're identity the into an It's industrialization an ramp and discontinuing are

Ben Klieve

double I crop in planting? following last you and kind about are here system And that now double -- with on HBX, the are and like? what they soybean system when Argentina What's a with of wheat from planting perspective? then question wheat the they up Really, talked guess what's timing the crop When does soy. look

Federico Trucco

in particularly So enhanced, in we there depending level to soy wheat June, wheat want humidity, depending the where planted. are drag. after is December. do productive is system of environment And performance July the farmers planting November, has already on then area. might been we That usually It's environments, the saw are the moderate germplasm hectares double X HBX are under that Argentina. And the in and seeing where moderate to cropping today million highly on that

the to, beyond that So terrific leverage wheat we complement also double performance HBX we where where can products soybeans performance terrific wheat commercial outperform of varieties. in can materials to not soy our but this be The can performance only systems. opportunity, that dispute insignificant cropping a is on that the an not point is have we in

the while fraction still make are seeking So think that of with opportunity currently can one I use we of the with up. materials HBX, we second-generation we're this away it's right a overall is scaling

Ben Klieve

fast-tracking how this taking or mean? And Really, kind what's next to inventory for that initiatives third-generation what materials. you talked grow -- fast-track? approach? given year does over You does two fast-track What your of what the about are can expectation build

Federico Trucco

So the essentially fast-tracking is production. off-season doing

the having will notification for instead are have Allion materials. talking year, do factors and done cycle the every like in of of one off-season U.S., to, we thousands particularly some not past where we hundreds So we try about in of

by the to will So be probably that that's remaining, Xx the Xx the we a as currently will approval. significant cycle, we next performance hectares the not aggregate. thousand but And on third-generation a the that We I with coming materials, in a believe to of or follower hindered in dependent with will we wheat. availability of happening. the be inventories, materials. to portion few materials on Chinese achieve should of second-generation the obviously, on believe by be And the be off-season that

beyond As to reserve I before, mark, the moving said identity X.X challenging. hectare it's million

Chinese what So a of today. we things multiplication should to be from there. than if relevance we great that And we becomes able then perspective, clearance have think we be the right do

Operator

from line of question the Your with Dolliver Kemp next Instruction] comes [Operator Brookline.

Kemp Dolliver

A couple of questions.

trying First, information in in fiscal passage regulatory piece year Do much read too confidence on your is this interaction? just that presentation, you is into mentioned you the increased I'm not XXXX. you of or slide. expect time? based reflect approval have to Or on it of the regulatory

Federico Trucco

call. Well, thanks, Kemp, for the joining

aspects that a you I have is think answer the of indicated. combination these all different

to additional Brazil believe, questions process of ready asked for HBX We an was essentially in be follow showed that other look be wheat, For got potentially may every process. meeting. how the genes data has to August the HBX wheat We questions XXth. provided at us, terms can single instance, us no meeting, to back in And regulators to I we gene We we in process every after precedence. in and wheat affect was June there that evaluated of allergen-linked. that's active decided. change, and something the to can sent no Those data did generate what that happens that basically in in

The meeting data that conducted days of was since first the first we September. provided

more is we in track, have filing where So but probably an can we upcoming we conclusion. meeting not the elapsed time to that be, process there that we or an that full And an a have know question don't but enough or for what there's then we there conclusion was of them believe can less can time view get come between approval. additional a October, package, regulators a and to and our would to get meeting for will enough data

in of terms where that's are So we wheat.

All more since that we process, last we it's getting the is has case questions -- less been year. that Chinese we the are know With and visibility. this that have not

So we They met XXXX. not any question regulators from get additional have didn't yet. Chinese during

to has in they half know And all occurred. this when So This not first GMOs next is of usually -- meeting and occur. half but is for evaluate. -- is not There a don't Bioceres-related. the is going that we meeting the the year,

So that we a within perspective, the timeframe, point of China they today, other to we sort of meeting past understanding where where decisions from of is we but customary have they've have kind events and our don't in in made that for that which approved. in you diary a can within the time are the process

Kemp Dolliver

your in My of say, on XX% on market Canada more geography. visibility be acreage typically, market would Canada. increased we've for reflect suggested Does on second the appropriate And that than comments question relates products. subsets, today comments given that, it there? the might to given small opportunity the your that a And be assumed HBX

Federico Trucco

per the when Southern some Canada a rule of is we hectare, I like than deficits by at XX% there prone the be that look Yes. are the The often thumb below you hectares the parts expect Dakota's, penetration That's XX% even higher sub-region is and million to to and where a across of be of average Northern XX very combined, all hectares, tons they're to below yields good point. X.X But the Americas, are water say. where sort would Minnesota, entailed are these because U.S., that the sometimes tend tons per hectare. X

we're proposition were to one effectively value to maturity all North having capture eager why have on hectares. in That's part suited these are advantage compelling. to thing Mario So today of even and that more HBX place and crops this this to of approvals America the And below to able be region. becomes for collaboration germplasm secure of we the the announcing is Don specifically take to

Kemp Dolliver

specifically, And just impact the How the it my question -- to last to relates any doing my they this a will economics and do relative on have partnership this basis? work? do more standalone be partnerships. And

Federico Trucco

the important think hardware. that trait, fronts, I aspects. Well, the two are hardware, germplasm, on two and software if that the is the priced the into there Usually, you technology different goes will,

from HBX So software providers perspective. we are an

is from to is are we keep you to bag When per combining the XX-XX, doesn't are company. Where that the split to germplasm. Argentina we ourselves sometimes to of trait whether of involved we're from partners they a germplasm on Mario trait. side, so we additional trait be economics XX% certain can had deeply the between keeping on incentives fully hardware, our that might they everything is or economics jointly the software, But will, hardware if the own that for Verdeca, HBX proprietary software those the can need are the or with even providing co-financing the from certain that trait we own develop you but perspective. capabilities, which originally Don that price licensee. usually germplasm we working that We building hardware-dependent. keep and developer $X we anything of price what do beyond $X, traditional get additional today, that hardware, way ownership company it Latin If fees, that into gets discussing when saw this from else's we person and not someone revenue, our we're need and where have our data with for comes their hardware XX% to we we America, proprietary that how our the We the depending from metrics. else the $X use program, our have

Kemp Dolliver

for to you previously minimal be based us? on to net effect what is clear, indicated the had So you

Federico Trucco

jointly have the mean, not But value germplasm I coming a -- we Mario region our thing royalties in us Mario. general. will North this here our from of Don with we're adapted absence proprietary ability the capture to would to we the important to the wouldn't do of investment not a be I Don varieties is some in America on to be HBX be able making efforts. not Yes, because leakage There in due having to geography, capture will we

Operator

with Ralston line Your next Steven question Zacks. of comes from the

Steven Ralston

Congratulations Crop be a Protection Crop will traction. gaining of that the be the Nutrition This and you're to into long-winded on is great the that putting segments top-line. strategies Seems kind the question.

it, looking Just increase -- about China. like up it lightning a SG&A. area, during it it's And overall, the with in expansion you quarter. could seems of seed structural a utilization there. with at capacity the Argentina, Crop this utilization, jumped it's there's But plenty Brazil bringing have track geographic with substantially these fourth teams, on as SG&A dedicated the and that? Because course, the talk the are and at the it's But Nutrition strategy? top-line in talk line business, you're and SG&A good much. concerning structural could implications to this strike bit here area what say, of on Protection looking because up percentage The appears so still of of lower strategy, you story there reorganizational sales the a about reorganizational room a in But you story, grew you and ramp that is the

Enrique López Lecube

Steven, us. Thanks the Pleasure this have on for call. Enrique. to joining is you

top-line, the specific independent SG&A, think HBX, launch not impact your SG&A, accurate. are different of an initiatives what's that of bear the platform, that of yet on related expenses your that question today here the On overview the rollout for we on accounting the mind having is profitability. So I on in to and is

about are for the support takes So than And afterwards. we we year, to not your we you Brazil, right? --on of me, question were, to more your that captured, is might But didn't on that growth specific And Crop order into the also in -- levels than take If something to at It after see. to on that. be is an be question need of in that good allow year ramp-up SG&A, that where place point to put the look growth of growth. you functions much increasing out seeing that more Protection SG&A. important SG&A reorganization then that the process, XX%, XX% that no consideration

keep in SG&A materialize put period. that track the expenses growth one on the sales in we in following we Brazil of period So in place specific

about think way that's we Brazil. So the

process reorganization a So in increase attributable the the three SG&A Protection. not things, is combination specifically of those to Crop

Steven Ralston

third-generation increased the of noticed R&D HBX I and substantially. Also, Is second the that soy? line because

Enrique López Lecube

expenses slide approvals approval things. obtaining you a registrations product for in that has is made the that to presented saw Frederico biologicals, R&D we our mainly. you geographies, request requests further do have to -- with regulatory that and in combination there with of see that that do the Part in developing and of Well,

and So registration, biologicals regulatory the for between business the seed expenses it's for a geographies. adjuvants split and for our in

Operator

follow-up You have line of the from Kemp Dolliver Brookline. a with

Kemp Dolliver

with from savings refinancing What of had do Quickly, that? ago. weeks several range expect you you interest Rizobacter

Enrique López Lecube

question. Kemp, Thanks, the for

debt stable. at which is I a point think reached we've our cost of average now

our from our refinance to those expect ratio. So but to future is issuances, allow don't leverage issuances we further savings existing maintain debt,

to maturities have of average our stabilized. I lowering than expense that will think now debt. cost within do space are we that with opportunities So And more

Kemp Dolliver

is my this And last question.

inflation a how the -- inflation margins XX%. will last thinking you the course stayed level, Argentinian this in as on CPI the you do the something -- taper margin Is of impact the made are at magnitude comments that about few Or are period. thinking that if as the nothing numbers could think, And You've next I months this are impact over off? year? you of changed about high this How of continue? expect been, else and have couple

Enrique López Lecube

variables standalone We It's FX and need In Argentina, look you great those basis. on at a inflation Kemp. two question, at a to don't together. look

converge turned seen inflation it past, happened but three gross inflation. margins and the also some headwinds of manufacturing XXXX or of quarters two currency is in our of cost depreciation SG&A in in in year the last the for in costs, there the structure what the that or fiscal that It long short be we've decades, in this into the quarters, actually currency So term, that that like depreciation run might the -- local local mid-term. and in Argentina lagged But last is three and or a valuation the or in our impacted diversion, two costs.

up So at catch point. that some should

minimized. Don of should effect the something it's Mario So be

Operator

closing Trucco call this time, questions. further the back I'll to for no are there And turn comments. Federico over at

Federico Trucco

Okay.

this everyone, of lot thanks, know is us. I a So today's for in joining call. information

reach us available. stand you happy explanations, need what second the was that with further obtained that we in particularly back performance free year hope if after the you feel can quarter. 'XX, I we We're So or fully in further detail to fiscal saw

results was that to we're today. showing and us half, the second show So allows very strong

has follow-ups. thanks are So hope have week, you Thank again. fully a should we I and available, everyone any great you.

Operator

gentlemen. the concludes ladies you, call for and today. That Thank

now You may disconnect.

Bioceres Crop Solutions (BIOX) 9 Sep 212021 Q4 Earnings call transcript