- Earnings call transcript Q1 2023

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Operator

Good morning, good afternoon, and welcome to the Bioceres Crop Solutions Fiscal First Quarter 2023 Financial Results Conference Call. My name is Adam, and I'll be your operator today. [Operator Instructions] I would now hand the floor over to Paula Savanti, Head of Investor Relations to begin.

So Paula, please go ahead when you are ready.

Paula Savanti

Thank you, and good morning to everybody. joining. for you Thank the and be Chief Enrique during Chief Financial Trucco, Executive Officer; Lopez call today Federico will our Officer. Presenting Lecube, our be will available the session. Both for Q&A

following statements reflect with contain available forward-looking time, The Investor as presentation new you. to forward-looking Bioceres circumstances. and I any over conference no to call would statements webcast. At changed I Before Solutions the revise you being as This the the the statements, Thank assume statements. earnings call webcast to section obligation or we update will make this well of to I turn Relations proceed, today's the website. Crop at our SEC. or will Trucco. call is We Today's Safe CEO, is link to like filings forward-looking the refer recent Harbor Federico and release

Federico Trucco

us to start Thank call. for everyone, morning. joining you, can we Good so turn and Paula, our X, today. Please thanks, earnings Slide

The in multiple first a fantastic XXXX quarter fiscal quarter ways. been has of

doubling to even million. with initially and is a in July that call, integration this revenues is adjusted have his record has is Farm Farm turn Pro we as Enrique fully trickled have A including reflect we quarterly you in our and the guarantee Pro Pro in number expand revenue which around part the the contributor. Farm, subsidiary this which X changed and have on negative to presentation. intend more consider And on revenues quarter. XX% U.S. believe reaching accounting help we in process if reported impressive transaction during quickly and that the finalized we the a will down we reality This $XX.X function contributor, Argentina, figure main in profitability for the are positive will in We after consolidated us historical we to last year-over-year as now almost EBITDA September a growth financials. better quarter our this in EBITDA comparisons. by for grown started merger which the this of of this point, has our dollars On business discussed of our

on status We crop will a the next soy to report in HBX minutes, underway HBX wheat few and HBX in start weeks. few planting harvest

did the like of the with presentation discuss released accelerate and would we expected the agreement agreement. to internationally. Syngenta to not Finally, long-term our what use expansion today's we is is benefits, is have it, Seedcare what in why we included investment to Discuss the recently included what

Before was to more we in next an we deeply and key back would highlights, to of else? seen The have what program address launched we The the average slide, XXXX buyback approximately acquisition also share program. move completion each with stocks of March shares $X.XX our cents. of like XXX,XXX price

basis. further volume and the dislocation last program [indiscernible] to We program now of growth and $X observe refreshing This have the we continue trailing the Slide six year-over-year market opportunistically reported quarters slide to the intend not running turn for from X. another on Please, million significant in restore in growth address fiscal the grow a flat comparable shows for at new in the immediately revenues that rate where by a It growth Enrique the a can XX% coming of presentation. the if part quarter. current proud rate this very you're quarter’s from a you're performance, obviously before, the each his year we're is same year, to and XX% of at when

Moving to X. Slide

solutions as Pro have in have company agriculture future in a biological for Ag of positioning we merger growth future. the completed sustainable Farm discussed, inputs, now with already our the the platform and an for clear have we leader As unmatched

With or are achieve as – agriculture. portfolio which in substitution long-term use to reduce or integration segment care can collaboration the of pipeline productivity high of Farm, the immediately Syngenta. describe Where is of with we products the of when required will one the replace of in we designed for this existing agreement most segment the significantly discuss they reach seed functions the most an we have we synthetic shortly leaders, industry, now Pro chemicals in

three next conditions down sales that, Argentina drought we may in status transiently quarter. our do crops in of let's in second Before HBX review slides. the the current the slow Severe quarter,

creating expected unique to to harvest. technology, showcase the wheat drought at be the at time, the a However, HBX the country-wide opportunity last year’s with to same XX% compared is decline and crop level

crops HBX drought drought know, not you prone. As are tolerant,

expect guidance we you where that benefit been Argentina. a some believe reach of fiscal significant which to year year harvest. see our provided is selling line, us We can inventories have to crop wheat field for XX% extreme variety the meet conventional HBX. XXXX. the the be XXXX isogenic indication to non-HBX system difference for on too materials observed stay In taken crop fields compared of and second also not fiscal we the have So will We in the of for that good the currently positioning the our harvested track and when lose one conditions provides of top to goal enough and to generation think next be slide, will

with HBX see update in and to detail forward report will into a in call. translate Soy. progress with next and this next Brazil differences launch multipliers and, being looking In varieties yield more these we next benefits earnings the slide We're for an upcoming early way HBX our brief are on with We two under provide with well scaled making season efforts, plantings in multiplication season. Soy breeding good the

wheat for collaborations. genetics four licensees obtained soy. South food while covering United HBX Brazil, new Argentina, this recently the onboarded have both and germplasm and or we the and doing where States our We're Importantly, providers we Africa, historical advancing feed for clearance

from multipliers Mario available following to Don the For the become to variety year instance, Grupo expect Argentina in next United and year in we States.

with to slide to the Syngenta move now collaboration long-term discuss announced next me the Seedcare. Let

First, what $X are XX% penetration a at segment $X inoculants. the ag-input in biologicals With billion resulting market of seedcare? from currently is one-third is billion in segment. It which to

be have decade, $X.X categoory in Biologicals achieved success where to segment and clear product internationally. of capturing believe are end Our the by and that in it Argentina this we growth. in reach the so winner significant are expected starting to we can a do billion

partnered To Turning Seedcare. segment leader, to slide. a Syngenta do this the be next we winner, a with clear to

structure jointly years one position This number Syngenta collaborating our held have a expand an success in have creates the the time. at pace. long with inoculants, We achieved been and for Syngenta collaboration Seedcare accelerated internationally, fungicides this for and bio XX for to right new Argentina molecules

double We at two expect the international the years. alone inoculants generated least in revenues next to by our

minimum commercial capital receive basis this now agreement, On While a as of for sales not will $XX the and the marketing the an the we million will rights these is over of that secured for working cover $XX have and million Syngenta needs including per collaboration. as on we activities, in annual profits, profits different collaboration R&D life upfront top year of exchange granted fee investments well profits Syngenta average minimum the framework. efforts, and is pipeline generated we to XX% geography and accelerating is required to opt on early also focused maximize new this develop with that for of the just jointly our our but the XX% depending reach, products designed collaboration, XX% covering year. the by not and products on of it R&D between The may within incremental the

turning to and next Finally, the slide.

sold not inoculants have We to business our Syngenta.

rights the their of Syngenta this within Seedcare get or with want for portfolio. current our endeavor. States does in this us It the partnered to solutions next agreements. to is of are Syngenta also making point include We profile seed solution yours. hard program. Enrique, HBX work full we to and the as And service this from a our have the leadership relevant and nonexclusive to business the far HBX all retaining We to for rights over years. XX trust them use thank not treatment make reassure derived joint products commitment overall farming sudden The top United success in to agreement more for channel

Enrique Lopez Lecube

today. Federico, to you for you, thank everyone and us joining Thank

We that we're off result performance. to a previous today, kicked reporting six have a such are new on of The delighted strong fiscal outstanding quarters. top year throughout built with the achievements growth

the activities that created core our And These an the doing getting integration congratulate operational and our started growth increasingly and outlined. balance relentless sheet term global strategy as put milestones a very then secular to funds multiple financial make having our high important with fantastic bringing the scope XX% important Federico inoculants. will market, a So our the execution. biologicals structurally continue around few thank also I broadens performance us on the at two completing was and a products fronts. take strategic fiscal the has our would profile offer. that note with in profitable of on we [indiscernible] It a next for loan, investment. of and biologicals lever by Farm ironclad teams a efforts this in unique liquidity context to We provides development opportunity position a by strong Simultaneously quarterly long-term a value quarter merger Syngenta progress considerable like Seedcare trend standpoint. year have research drivers the behind million from from in quarter. growth it executed Syngenta job for strengthened on handle. an agreement sales to benefit our $XX to It to path featuring and our address the profitability with Pro which to slides of technologies by become I in predominantly in synergy This and in

and most to assess on year. quarterly the adopt subsidiary would integration merger has in longer which accounting this peso starting functional financial dollars, couple important no your currency in to were results. addition forma Argentine Before their the for comparable fiscal reflect quarters. a note, to year-over-year, Long our shareholders our picture the change historical would to otherwise will simplify figures term, Farm any of of prior we Pro I distortions starting need have used we attention XXXX statement provide income as our reported IAS in past relevant Argentina, in Pro Despite isolate favor turn represented results Slide adjustments financial this to a numbers Slide be to switch results, revenues the of in the as therefore, further extra dollar of a this U.S. Otherwise, there XXXX subsidiary, subject currency eliminates our as fiscal this a reporting with into items first the XX underlying used our Two fiscal growth like we a as gross I the adjustment Farm which subsequent On XX. to our from the to of a The to profit. high past performance. call operational addressed Farm our U.S. of XX, a adjustments merger inflationary in comparison is metrics to our relates and reporting we The the addition will main for a including subsidiaries IAS step will fiscal results as except need products. the company. now provide long-standing adjusted the pro our XXXX years organic from enabled a benefit to and clearer change better taken business year. recognize for XX functional with performance. Pro in quarter Argentine more comparable main reflects be triggered of EBITDA. periods, a balance Pro much our and line and and comparisons The the topline metrics to and Pro will the provide in please. fiscal introduced. shift believe other IAS changes to this to dive Farm go accurately with that of bit forma allow that of have aspect from again, fair mostly result, year reference to figures cleaner distortions to results statements operations as We and were, has to our functional us But reported sheet, our currency, need forced revolution historically comparison compelling XX now XXXX I

at be Our sales XX% the anticipating weather, the growth the planting exceptional first Argentina. year Southern where hemisphere in particularly earnest. of quarter locking-in Latin job quarter America of there first in season will in growing is dominated and in Summer started in for by fiscal in dry face crops the

us gives revenues in business average on strong and sales mentioned, what from quarter. XX% for confirmed like-for-like drug fiscal on as first [Indiscernible] first with we the has results, are in even you been as our revenues incorporated start half quarter year, into a As the a rough total which provides a a been comfort Pro words historical has the Argentina. to comparison now Farm first our of of I navigate increase

please of Let's also main The somewhat an across the timing Farm sales XX winter contributor for and revenue continued by driven were of Slide biostimulants on Compensation preseason strong segment. fertilizer year. last and was environment breakout the sales offset of move quarter. comparative fertilizers the saw Pro basis in detail on sales These We Inoculant because our more the was by supplies. of a in adoption summer to costly microwave to growth tight expansion in America. regions. multiple the gains sales lower season expanded Latin by

the into Nutrition of a for Crop Farm portfolio included now the segment. All are biostimulants Pro

While Farms’ portfolio key and Pro into legacy Latin biocontrol in as by the food production crop segment. weather products from dry in conditions a even Sales of the increased that incorporated protection been crop States. XX%, face United markets American the whoever all come products have

and in BXB specialty bio United also with U.S. crop higher in continue crop Farm sales. performance conditions the Pro dry While solid product. delivered to of sales Adjuvant Western sales low Brazil sales, protection curtail States Argentina

the rebound Africa. we come total of treatment as we seed likely of both will packs the of other anticipate and sales conditions growth which planting on higher will Latin growing But hand, revenues, seasons planting South the in to America. year. Latin were added move ahead fiscal We we the America dry Finally, expect from through benefit have and with in

in [indiscernible] our as quarter, margins raw million, and which addition and Slide a growth The operating achieved some gross of relatively from which our XX.X% from in quarter basis increase in roughly achieving far price impressive transaction expenses different quarter the down driven margin leverage. and result. profit, XXX what SG&A higher related with high for slightly reached that margin. first of as XX% additional quarter, important to the mix than product the logistics, materials merger gross transitory on to improvement. what segment, as a confronting EBITDA involving was year XX. the record historical Overall, $XX.X the the role, on million on cost by higher with segment Adjusted Slide pressure was quarter margins XX played XX%, also severance $X.X progress the gross industry allow our gives by impact note you percent still costs XX, expenses mainly and led input Slide packs business experienced sales from including than higher see gross If into in as shown deducting crop report EBITDA baseline also Farm is operational were improvement of to at these look Despite in a EBITDA each made efforts adjusted Farm a Its the than in such expenses. brought on last integration with same Growth with EBITDA gross strong offset to adjusted higher translated for XX.X% increase healthy of healthy pro also $XX.X sold more a also of turn margin. growth of explained impressive delivered operating expenses profit Even within XXXX first the on XX% Pro benefiting [indiscernible]. were dampening the products points enough us period the contribution require products net stable an that Pro Farm’s a was usual roughly such It Pro line XX% of international an as on EBITDA costs forma our one-timers, business board. million to that the the first Baseline trailing treatment by to absorb contributed in also by revenue sales. in year-over-year. within net also to increase after higher operating meaningful which at numbers, expenses XX% nutrition year. because remained SG&A merger, margins and the you SG&A gross from the bearing synergies was minimizing across in costs results. like the a we last growth We seed

to the sales, sales XX into which and build as believe cost XXXX. that fiscal comfort of the two we should next next months. will mentioned the Within contributors, Same great an outlook our us Farm fully when saw on the first continue of the synergies be the positive having gives achieve quarters, describing by such of we we quarter we year-end targeted XX first to half to the EBITDA Pro on which the for impressive profitability time in achieved in merger the expect assets basis turned at EBITDA have synergies

Pro working proceeds Farm Pro paying our existing and to Farm were Pro and Total the execution let by If connection agreements the in wrap financing related two to covering briefly remaining allocated balance off reinforce capital increased me the million the at overall turn Slide financial financial with Farm position. of the cash to XX, obligations of merger. $XXX to sheet. all you up used debt on Part to were

at adjusted healthy Cash ratio cash including share of million used rose our to from With to Our EBITDA to balance for $XXX Federico. long-term net fulfill equivalents growth had and $X to million the quarter, we commitment. the close with term over our million. $XX cash, quarter, over end of an XXXX and of brings which cash and markets, our to and to remain X.XXx Farm debt. a revenue received make remained to at upfront start the the despite $XX.X us exceptional us interest assets, allows about And we payment results some million repurchase the weather strategy position the relatively fiscal our Subsequently have confident back LTM making EBITDA Farm the flat completion, Syngenta, from we quarter the the on severe key year gained year-end. to strong turn the executing diversification first year. outlook in feel full conditions I Pro fiscal call before would focused contributors HBX like that, In Pro

Federico Trucco

Enrique. but fiscal you, want to XXXX, for slide. much forward next longer, I want if don't year do remainder turn I the some Thank remarks the with to of looking take finish to you

growth this a double-digit our weather year-over-year. the also of I we due core be might year is out business in terrific in we conditions to America. sustainable coming experiencing the to expect that after think fiscal Latin spike see and the And volatility XXXX

are trajectory Pro but Farm an the full. EBITDA available highly them year, into fiscal and other so on utilize only the from capabilities R&D positive internal also for XXXX. and that end the growth clients this by we Pro number Farm continued advantage important confident to the also external within to the integration to the in for we exist is process expect not take that a So negative that make of Obviously, customers, company this turn can of year reduce contribution where aspect that we year for Farm fiscal Pro the to

Argentina. HBX will We launch fully in wheat

soy use wheat And those current XXXX, levels soy for between of We for to to technology the and fiscal already that initial expect year earnings in HBX next and year set important at the we in the million we the to promote in have XXXX continue we fiscal adjuvants HBX KPIs $XX we million new year will collaboration have and $XX is in in with and up the fiscal to call that level EBITDA set and the and to that achieved contribute performance in place of that $XX biologicals scale capacity and the to fiscal the operational harvest from by inventory million place and met Syngenta have in multiplication to for evaluate XXXX. do the $XX season. production Argentina to provided. next that and recap the for Brazil breeding by meet we XXXX. Argentina scale the next fiscal year facility data the in fully XXXX, million year Brazil also end to And on our It HBX fiscal coming out during hoping year guidance finish

finish sort call floor where these some wanted of the the for are Q&A. open can up We So year current for the of the now expectations with. fiscal to we

Operator

line Instructions] our And question Bobby Go from Canaccord. Burleson first from ahead. your [Operator is open. comes today Bobby,

Bobby Burleson

Yes. it's Thank time but what for if you for morning taking my it questions. Not obviously. good guys, you sure for you, still is exactly morning

then think So reducing – about just are if growth. and gross we drag the turning healthy one I always is to struggle and Marrone. They formerly seem had negative but had nice little that margins, guess positive. I guys with that pretty bit they EBITDA OpEx targeting a you Farm know first Pro They the

through that this of that year? fiscal help will walk of us achieve some just maybe fruit So you the there low-hanging objective kind

Enrique Lopez Lecube

Bobby. is time. Good you on have first for call to Hey, This the Enrique.

you So, right. thanks morning for so taking the us, still opportunity are is questions. for to It ask

Federico Trucco

as early as Bobby. you Not for

Enrique Lopez Lecube

the Well, obviously I that right you're the had on scheme at merger was related was fruit and we and sort business There's identified of that what we first. achieved that mean, comment. to hanging time on mostly right the company, of thought. of the low your the that's the

bit measures accomplished gave at But the a obviously the of two something the well. restructuring [indiscernible] win us already publicly There quick having that were to beginning. companies is we a cost harder those that or as costs some not So listed we that do. were took

certainly of have the XX% we deals expect sales the execute cost quarters, couple next we is about next will synergies targeted. plus quarters today Farm EBITDA the will contribution time the asset that business single-standing we positive Bear profile. will the entity. the in way and us remaining What mind the business that that of three longer as should units probably coming allow that that we we of coming be the no there's put growth to looking Pro merger, to and at we the be at in cross-selling are and from the we structure or announced performance So in there. There

[indiscernible] the on add in requires longer synergies million those muscle synergies $XX on then Farm a executed, So wanted one at work be million to were sort And Pro we're for the some targeting in of is how medium-term then tracking front, some point, ready which sort we begin that synergies. a this targeted do of today to will you be notion of those on give expenses company. some What and operating look EBITDA top a set positive of takes get but the and because entity that's for that $X so a us of sales bit we're become XX have it strong bit sales. last geographies that and on take months back related a Remember year-end Pro synergies. basis that if basis we between to to a Farm that, we where trailing on continue products some basis, to to executing what mostly we to to looking registration time, should has the of

Bobby Burleson

will it think a different years, quick maybe or the for just it chain and so. question, slightly And guess. of Very be Obviously, export Great. If past like Ukraine, out all just to of then few a cetera. about follow-up grain et helpful. looks issues over I the supply and we concerns continue –

is GM becoming and for to the GM et that in with have in export increasing source are opportunity What how America resistant Is cetera. capability of thoughts I'm – for maybe acceptance on and you a wondering an major with the food seeds particular. trade of guys world it's has HBX. maybe environment and your seed were And [indiscernible] your HBX? regions there scope in become Europe, developed that broadening maybe certain major the a South the areas, for there GM, produce world's

Enrique Lopez Lecube

Thank you the call for joining today.

security. that of that described food the think sort of a perceived some by focus more just has in situation be I the GM important created shift from focus way sort Technologies groups you may to on

All sudden production productivity type preserving natural we see use we of become tools can technologies importance the this stage and us that a sort achieve while help of the that food of resources of solutions. of center to increase regardless

instance, the the a This for because or Wheat and So get these of than meaningful opportunity wheat by become is on approval, And saying we and [indiscernible]. dedicated is animal not Soy. and are skeptical an obviously GM more But after situation. only been reluctant consumption that we're very reluctance were trying corn, by unlike there approvals geographies Wheat of we to consumers. we're in from challenge for of more today technologies the saw human the I'm was highly our company position. wheat closer HBX we the for doing Indonesia approval Wheat we much coming of in soy high to European sort received even has level of accepted influenced are is yesterday historically to taking historical we advantage notice GMO in feedings seeking within top that of ready a Nigeria Argentina, a from [indiscernible] perhaps cascaded the today, with which continent and for But we much, where are more biofuels. and ever much closer, were to

in more Latin current to see make many expect America will even the drought more and in this we think upcoming I the cascading months. relevant, approvals down

Bobby Burleson

taking on Congratulations for questions. strong Thanks my a quarter. such Fantastic.

Federico Trucco

Bobby. Thanks,

Operator

The from Street please next from Lake go Capital. Ben Klieve Ben, question ahead.

is Your open. line

Benjamin Klieve

QX yes, All here. you orders on Two from across QX, itself. revenue quick board on right. the Enrique, that kind just board? saw me. kind first benefited the of My another lumpiness any for ones the QX QX pulled Thanks outside into just congratulations either of was wondering the across from quarter and getting into getting if quarter success the is for of the I'm pushed kind some broad or quarter, or questions taking exceptional question any the revenue

Enrique Lopez Lecube

joining us. way performance for second together first look the Thanks quarter. Well, in that is I the the think to with we the at all quarter tend

would all think a winter us fiscal that that's growth first an that. the sales so think what of this I of of I We about us with our this [indiscernible] to as year place year looking micro-beaded season. that first it's but why that to that's early go it at where some summer of that about we growth positive half crops the you seeing whole. are there planting we're activities from meaningful I as That's look transcended in we'll a part That Latin summer Argentina, comfortable full makes the as fiscal terms at feel as remain [HBX] in say the That If quarter it second we outlook. not crop important America. the planting and up And we market in the fertilizers, as so is would remains take in will important the is say. crop bit that basically with season – are looking of

with [indiscernible] important market transition has last Even us. we an And as [indiscernible]. that paid the is readdress Argentine to mostly in

Benjamin Klieve

next be that's quarter and ago? to years relative by variables? can the are of facing. a into the coming your for couple chemical of a here, Do faced wondering period fertilizer around experience two you just dynamic that you similar a you similar to dynamic And this the looking application terrible arose a been characterize last reports and kind outlook of offset kind years the quarter it. conditions drought the I'm frame mean, of around is A of here this. headwind Help there outlook about couple have Argentinian ago? the a helpful. that here years that kind the us as ago, as other years of widespread second going material you Are the underway. vocal very second relative couple conditions. my think help was to for And you and more farmers bit Got ago. of if that guys helps That's I question And

Federico Trucco

the Hi, Ben. more, us joining for and you This thanks for is once Federico. question. Thank

I base we a that because are back more what today. were then, first, we diversified prepared we better have think than

will North we contribution I from in think, Europe in quarter. Farm meaningful we So Pro more expect have, and America the

to terms planting, weeks. In the related days that and the in rain might depends happen upcoming fertilizer on or That mostly corn event of is impact. the that

situation. we corn So start sales, years if this season positioned I us gives had deliver two first that ago is a what similar deliver We when than think, to see a I XXXX. great faced enough we and results of to were expected And occur events the that fiscal are but to corn. in much we of the layer sort last year having we half cushion transition for revenues sort to a I from of slowdown might rain and fertilizer a say season better think those there have that

Benjamin Klieve

Got it.

back Okay, about, up to I'll time Thanks very great get on line. the guys. more talk quarter Congratulations in good. here. and I'll a but Plenty pass

Federico Trucco

Thanks.

Operator

Next from Brian Partners. ROTH question Wright ahead. please comes from go Brian, Capital

Your line is open.

Brian Wright

Thanks. Good morning.

kind first that beginning to how of how years, or the million global basis five XX-year think to on say is the that's period? over the end? the – got moves Question, the agreement of a life the First four commentary. And of you I maybe all that minimum Syngenta to like about minimum from the said average is where the wow, just target on with targets all, yearly $XX

Enrique Lopez Lecube

in your feel initial the the Great same comments. for to and you We way. Brian. you thank call have Hi,

contractualized the divided So of million are agreement years. average by that million $XXX minimum is overnight at the XX profit the $XX basically

that in – initially, so So expect what initial of ourselves. business the are we we pursuing the number years, while some still

starting probably as So million this once. average. it's to $XX to all And later at going over million that we average. $XX move be the above it's then years, is And not be

targets, the obviously, agreement, On the have that So XX% at on those be geography the format. of rate that, the depending from that's profitability sharing [indiscernible] a year. profits to exceed and sales top we we if a guaranteed under minimum XX% will the collaboration

basically the Syngenta So number an in are of collaboration. terms reflecting we average with what that is

Brian Wright

seems robust. know a more, for I Great. if I the be follow-on, lines? the those it's just And then There room of any $X you could. potentially The agreement, post to cash just comments position buyback. share kind completed along million

Federico Trucco

buyback, the of terms In you mean?

Brian Wright

Correct.

Federico Trucco

Yes.

return we have continue program. on and I what pass meeting board buyback are refresh think needs might the allocations million to opportunistically do is we our level provide market we that is because monthly a If to in allocation is will take to of capital to do have advantage the compared basis so. to to capital like business. that would past, decision our of which a month of we capped But done this sort need to kind $X a in the every other attractive exercise the the dislocations we permission of that we in

when of is the opportunity going This of the is investment know not us do. sort or we're really stock. to an this that the So something an support to well something we opportunity price market gives

Enrique, to anything don't if I that. know, you So want add to

Enrique Lopez Lecube

positive think the minimizing the us issued If that of convertible coming XX a strike we helps potential is dilution fantastic are also have minimizing that and a notes. way. of Remember company outlook price about we from that I the dilution. have commercial notes the to this potentially

Federico Trucco

so you Thank great. Okay, much.

Operator

The Brookline Dolliver please next ahead. comes question go Kemp from from Markets. Capital Kemp,

Your line open. is

Brian Dolliver

And thank good you. Great, morning.

So two questions.

presentation Essentially, relative put goals. percentage target, multiplication you? XXXX see you of of XXXX the and in EBITDA put a as we fiscal discussed do you've thinking where efforts the is, will where to this First it

Enrique Lopez Lecube

the us thank and you Hi, Kemp. for question. you Thank joining for

halfway inventories fiscal we're here fiscal to [indiscernible]. enough have in The of – we those XXXX to make I is reach think obviously, XXXX. terms sure numbers in not key

I think we significant will all the the mind of be will Argentina. inventories the drought, because place, probably today lower in partners aspect that in though even those in top of yields have

which placing $XX so we million $XX can don't you depending we caveat, to a million this think that might only the might the in if will, issue year that materials little heavier current starting was that to the I first generation we little is to we'll or have those next season. material, year, material So The inventories multiply reach more the just were second-generation an we compared be from a a an on viewpoint. EBITDA rely

up sort is of but to inventories because the reduced in the of of drought years way. structuring in we value yield So full drought to any an materials are overall high something is avoid speed kind those. drive limited a we that performance. the it not the be This years go or where have so have we facing benefit, us need we of issue shown expected because normal the clean are terrific yields of to and of ahead It doesn't allow that in a

So current affecting to that's XXXX. readjust to to in would what we be for $XX guidance the $XX I but the need thing we need say, only million the not fiscal season, million

Brian Dolliver

My second status between in S&W question venture talks what joint the of is, and is the Trigall Australia?

Federico Trucco

question. great A

we moved joint process. So with venture that forward

ongoing by coordinate and been expect have activities closed them. the longer, already. but we are agreements. the has definitive It bringing end finalizing this the September starting to We we to to little us of since a year, now are This took

to aspect this in We opportunity it have in Australia. important included but Trigall back, be the an the of not continues

Brian Dolliver

Thank good. is, going are Very miss I you. third to a the XX which doing question you IAS ask And will adjustments?

Enrique Lopez Lecube

to actually, we That's [indiscernible]. and a not, it's even are hard great question. No

Federico Trucco

at We're all. not going that to miss

Enrique Lopez Lecube

I if can want you me to?

Brian Dolliver

you. Thank not. will I

Operator

next ahead. Instructions] go from from comes Ralston Steven, the Steven Zacks. [Operator And please question

line open. Your is

Steven Ralston

on the Actellic also cases, distributed insecticides, and understood Syngenta. clarify China question changing? I How I products. you was Syngenta treatment of you in and Syngenta's especially As the you Maxim great concerns is could seed expand Good out My it, Rizobacter's specifics Brazil? collaboration your in in it congratulations distributed a the where And in And lines? quarter. exclusive Could into the see specifics, some products. first symbionic upon you of morning and Argentina, that that ex-ing very global towards product relationship family family return, and some potential with a U.S. the and it's know and get fungicides

Federico Trucco

Great.

and lot, great a Steven, for thanks joining for dynamics. call question So the Syngenta the regarding the

have we achieved in you So described, XXX% success. Argentina as

side far, the leaders treatment. We molecule much seed of our inoculant are, in in that has is the world. the business and by business the Syngenta Argentina obtained in in in penetration I anywhere level a believe at the of also And biofungicide

to to I XX%. think close when we consider both channels XX% export

geographies that's for was Syngenta ingredients. something was to not their able – So active ever not other in replicate

this R&D way scale and we a both component attractive and how is the that's well. in long-term parties, So was, into an question distribution do as collaboration internationally went we have that up this to why

in that have don't the United have don't Europe. footprint alone So we Argentina, footprint we that that in or have let footprint States, Asia, in the like We China Australia.

to ourselves product markets where think that way. this have it opportunity a long can very will category a an those we penetrate build a use one take to footprint able successful jointly the being So with existing I time, able in Syngenta's done us organically, to being quickly give

this to [indiscernible] the for today But this that with is saying [indiscernible]. we're And come seed portfolio. opportunity only doing and is So we initially the [indiscernible] [indiscernible]. use are not out inoculants that's Syngenta part the footprint treatment we selected of that not of

where part behind by consider thesis plate the might Biologicals the decade. kind level, the $X collaboration. billion the that even discuss that biologics to us general can market, Syngenta we at might in global as of this So we for starting of we in point future, are of the kind that's the $X fully That's was But of significant at are a to penetrate billion where of opportunities. billion and because market-wide already XX% something we leaders be other end believe that $X.X we in

relationship. each other going not for a negative. years, are into blinded XX positive known We the and the We've

to are sort jointly deciding this forward-going on what of now is we So basis. a

Steven Ralston

out the Crop seems getting was It should very fertilizer what I've And be that that's in Because your utilization you last not XX-month Now It Nutrition quarter, plans you trailing your capacity turning quarter like the close and future? plant. press have micro-beaded major current very contributor at the Can release. EBITDA. to well, this and there noticed maximum time. to be And the capacity? to given high now? in you must your are share related

Enrique Lopez Lecube

nature. basically our by This to – was [indiscernible] that why up ramping we an used in have is use used of joining Steven. Thanks on capacity, I asset relying capacity right. The installed the call metric and metric. for we most asset total That's contracts. manufacturing industrial [indiscernible] facilities pipelines the the thanks Hi, heavily on Yes, of that is have of Enrique. or you're been are industrial question. our not for the mean that use that assets rest reason we

seasonal because of additional installed are still an investing requires capital can in a but standing use XX%, XX% product. working is highly capacity. that this use We today We

So our we this are already discussed looking on earnings. and we last

why the Argentina, We not northern are in maybe how And space of in already the about plant. in our We of in looking states market at and rolled the this feel that expanding in in the maybe product some opportunities U.S. has at southern Brazil. out we're into capacity in be markets, Brazil looking point.

So will investment. some yes, we to need do

it's we the to add have. what from capacity scratch on already to Now not start than thing

we to doing investments up the install see will demand there's that start module ramp for America capacity product. we still So as to continue expanding Latin

Steven Ralston

a strategies, Thank wasting you've my Thank you. true want asset strategy you on cash capacity you plant generator. that because for all congratulate – was low to And questions. with taking And through into that made it it a your I utilization. your very basically, on

Federico Trucco

We very know closely. you've been tracking that part

We it's the happening. you. to are there, So and also great see place that could to proud progress we see very

Operator

Federico for We remarks. have to concluding hand questions, back it no I'll further so any

Federico Trucco

thank for because thank early. today Okay. us for up X that those to very at you I joining a.m. it's want particularly woke everyone

and bring these is just challenging high to be because We of the bar It's finished type we progress going to of the weather a to forward-going proud hope quarter we're making sort the of continue on are not results the that and helping. is really basis.

day. little want bit drought is please [indiscernible] feel are additional Thank or rain information and how viewpoint, we out but follow-up our have you of important So to where are. questions. free might reach us investment technology really happy you, from additional great if despite and be for Argentina And a maybe rest a any a of help we your in to with

Operator

This Thank for your attendance. you much call. very concludes today's

may disconnect now You your lines.

Bioceres Crop Solutions (BIOX) 13 Nov 222023 Q1 Earnings call transcript