Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for attending today's Bioceres Crop Solutions Fiscal Fourth Quarter and Full-Year 2023 Financial Results Conference Call. My name is Hannah and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

to Head conference of like host to now Savanti, Paula Investor would pass over the our I Relations.

You may go ahead.

Paula Savanti

afternoon Presenting the call Financial Officer. Thank joining Q&A and Enrique our session. Good and will our you Officer, Thank you. Chief Lecube, everyone Chief our Executive call. be be today will the Both Lopez during Federico Trucco, welcome. for available for

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

At Thank over this time, I CEO you. Federico call our to will turn the Trucco.

Federico Trucco

you, XXXX us fourth fiscal today full that quarter and And in year is joining thanks Thank call. our to earnings everyone Paula,

Good of the this for turn slide brief highlights overview call. to afternoon, a please of three

during due resiliency plans year challenging, fiscal was was proved we continue external ensure of to we mostly XXXX it conditions, one our While organization, business which the to adjusting to outperform.

have what fiscal accomplished we So, ‘XX? in

at and comes you as rates will grow a ’XX. double-digit record after a growth continue minute, year in to this First, in we see fiscal

in a before are we're years, our more hedge was a we inventory our the fully when XX% $XX even time over profitable measured at excluding that Our impressive we of costs that acquisition integrating growth as and by in that know million, profitability adjusted ProFarm, not did ramp-up ago. year EBITDA, grew business by prior which as you was not-longer

indicating the that the an contribution ProFarm and last on business steady, were time, XX expansion an a milestone on proposed An that basis, became bit forma for objectives for which the basis quarter gross in the profit legacy is the to this compared our profitability months. of flat, was part X% first the products while Revenues year lower first for sold. were for kept is the pro a important depositive one of we quarter LTM in

congratulations are So goal. to this team efforts reaching ProFarm in order their for the in sustained

the grown have is ways. front, revenues eight-fold, important XX% two On But in HBX we our network the which grew what is we in by critical quarter. multiplier by more Wheat that is

achieve inventory others it up that guidance our ‘XX transfer us beyond it capital crop. expands footprint is that step to year in allows meeting key and a costs our working which ramp model. fiscal to towards Identity HBX this also Preserve commercial Program, Generation First, thus a in And the linear in

monetizing data Soy On with since we'll on HBX with Moolec front, of Soy an HPX specifically provider and them announced XX,XXX ESG-linked the and supply our more program. soy-derived do agreement first farmers, with beans, premiums Generation the Science, the with ingredients, to HBX HBX food of jointly time we something this downstream tons for approximately IP traceability side, a starting

of joint position our us as Seed of industry. top solutions our Finally leading to validates allow biological the players size for will Technologies care further least business and with double to our at in seed region the Applied agreement MBI-XXX European our a Corteva provider in

effects than after-party drought a integrating so that show slide and historical a four, The of which and like of in and growth for Before Brazil, one please so to turn so industry-wide at in the year over challenge I we Enrique the inventory financial now after in turn discussion do this our same added of to the in detailed second was record Bio year's more ProFarm, our growth year existingly the down face the to put had business can certainly acquisition. to to on after not markets, third States we perspective. call performance, a It's time the and our still pre-profit market. largest resetting unique which and United in Marrone main Innovations, a

very see impressive to same in indeed growing years over Enrique? result and these So for than proud is a in revenues the two doubling the we very period XX% profitability that more time and last are of. adjusted

Enrique Lopez Lecube

Good into the Thank and full-year. dive everyone I further to on will you, the call for financial afternoon quarter Fede. our the today. performance

take impacted drought nearly This which such $XXX to and with strong California, of slide growth. the fastest the Full-year dynamics take if revenues These become for quarterly a the product in issues fertilizers, a was when weather numbers high historical lines, a stand-alone five or which XX% like namely micro-beaded in product flooding represents major revenues. margin at result our comparable at So year U.S. portfolio include in the Bioceres to bio and ProFarm protection growing respect crops key in cash revenue Argentina some revenue the a start reported contributions lines, reached very let's ‘XX example, to as our increase, clear looking million, we markets, in year-over-year for revenues. a closer XX% fiscal look forma with that at pro with year record obtained growth

pro here note me that terms. let these contributions are all And forma presented in

drought Syngenta the year the third agreement persistent negative situation which that strategic This getting more our Our in in a into contribution The season already of quarters. one very our as the first negative summer growth team although QX, dry seasonal was with magnitude QX, with drought than normally from loomed was to quarter of crops the hit might Argentina. of expanded QX in interrupted what in offset America. impact strongest like Then, inoculant that quarter. us summer South for of business this illustrates strong, ahead crops incredibly remember, allowed is you

decrease flat previous you was for slide. of the tail both million, comparison quarter, finally, remember is of drought. see the The practically standalone X% the which $XX Bioceres declining and to forma on million pro the revenue end the compared is And to drop of fourth year in that also a the $XXX strong and consequences year-over-year, you against the just shy quarter there numbers, due

have July, slower of noted well meaningfully it in month a until previous in transition We in to fact Niña calls weather expected a dry our started that La was cultural the and the raining Argentina. wasn't El into of they pattern Niño regions from weather than

quarter by the that month. now, episode crop So Federico I think industry just was that put because Niño officially to The conditions the also confidently marked products headwinds destocking in inputs fourth we players flagged us larger also with that that and were alluded were behind El by declared can the channel sales of of the affecting U.S. and Brazil. in mainly protection some this ag

impact from the business neutral we some sources. several profit away destocking somewhat positive and of think an year from but margin in extent that sales crop perspective and we margin performance it strategy a the external situation the profitability context in case, sales, our focused a and tested success reflects had on the as bit to I this of the high ways the diversify as annual In lower to Overall, see revenue product products. on will slides, protection was further moved

closer revenues slide So look at let's to six segment. by and a the for now quarterly annual turn

line quarter, in segment also product absolute was fiscal high year-over-year smaller was This fertilizers sales fourth year a driven And QX see even revenues, the we Brazil. markets. is X% ‘XX growth a for we exciting margin potential these in numbers, this encouraged important is in considering biostimulant by more and to with increase fourth the So quarter. nutrition was which see although in two having in in crop growth resumed for Also, particular micro-bead best that mainly product. record in for in high are performing Europe this this which

some In integrated XX% below to. overall HBX That year. Federico a from in seed XX-months, and throughout migration effects quarter, first the I revenues on or next the segment the that to all the the the the just revenues of wheat million as is for compared seed The year quarter the of increase, And slightly alluded fall we were account got Syngenta $XX.X compensatory in in say under XX-months treatment throughout the agreement. agreement. these last payment products should now we third saw products the prior is

that finally I explains purchasing just protection Crop in dynamics which for and slow by the quarter, fully the revenues driven described. X% was channel-destocking the in Argentina decline farmer mainly

was see when we profitability. protection crop margins, we revenues almost neutral will address in this drop As for gross

slight annual contributed the flat, result we explained in these $X year and quarter to by HBX for the main full growth, in nutrition marked the remained in to that crop products. second soft to year, crop Finally, protection that fiscal growth particular million increase, performance roughly growth million, despite than steep and was by industry by also increasing explained in the find in $XX declines Seed was we sales, biostimulants, that full inoculants, mainly in a a with and Integrated third comforting lesser products contributor a micro-beaded and a fertilizers, segment. revenues extent, by more saw the

increased fiscal we saw and Let's quarterly profit metric from seven, profit $XXX as annual year margin in expansion a annual for standalone gross now both forma We turn XX% ‘XX will full-year. pro the the to and than to gross profit Gross and take million the in sales. year, performance. for XX% grew year please, slide at annual fiscal previous the reaching almost gross look ‘XX more from

main top first followed in described. profit second to increase annual the the gross gross the performance in the Similarly, profit and and just I year, number. were well expansion third the the with The line contributors decline margin the sales and to quarter quarters contribution line decreased for

allowed the bumpiness In sales can products that this that driven see to margin we annual were perspective. sales able put margin In complex in I showed. an offset our just quarter, I and things effect think however, that line the lower navigate quarterly you one that a of us profit but gross of shows Fourth that summary, when expansion on are lines higher year, by successfully to was top the

gross you remained detailed Gross view Let's profit now profit by go find to million. segments. $XX business the slide a eight, almost where will of flat at for more quarter

high at I margins with in nutrition increase in In keeping the decline margins, the sales expanded, $XX profit flat $XX million higher which terms quarter. Crop combined crop offsetting sales, profit million. steep quarter reached as this fourth gross for explained, margins, the contribution, for just explains which the of protection gross

materials high finally, a of out And migration a year-ago by compared Integrated first-generation a contraction, discarding lower the margin Syngenta as I lower margins Seed, explained to almost pack to for detriment particular margin margin entirely quarter, new and and explained to materials, Seed as saw grain, the to in and often products that moved sales, as as also multipliers second-generation category. loss contract,

was the the crop protection, profit $XXX with quarter. For and and the half sales annual the Same crop profit flat products achieving with mirrored of growth total in in best revenues, nutrition performing Seed contributing segment, full-year, done annual gross the profit. margins almost for and gross the year for undoubtedly expansions gross remained million Integrated dynamics

let's on So slide last basis. a the million for EBITDA million, compared year turn reached on nine adjusted please now which quarter, forma to for a to $XX.X $XX.X pro the view from

million flat relatively $X.X the year-over-year quarter in drove an SG&A despite and softer JV results performance expenses expenses, in the decline. EBITDA So and other a improvement gross profit

turn we compared full-year baseline business adjusted a in to which reached EBITDA a slide increase, next at Federico with almost million now $XX.X the look adjusted please like ‘XX. represents which XX% slide Let's million $XX mentioned, for take EBITDA, year where the XX, fiscal will just to

the the year. at that's particular reminder raises the fiscal negative the just costs So also to baseline year historical performance. up end which year's or a at HBX look it this measure to as represents, which of the inventory bar business ProFarm how see we of metric, ‘XX metric business profitability And to related day this we ramp what this and removes against to like from

and Federico EBITDA decreases fully up mentioned our fiscal with shouldn't that costs. is comparison million, therefore inventory for ‘XX accounts out worth the the now we or consider XX% year-over-year that, revenues both reiterating inventory these and in clarifying regards in generating up business carve Also dividend, costs ‘XX basis We that profits, fiscal the adjusted year any and what ramp to for to more up which adding ProFarm When year the $XX implies see ramp slide. to costs. you increase ramp

it's positive moving important inventory costs, performance from underlying metric business. the ramp more evaluate to terms in do highlight We the importantly, Although into put in we don't the to this evolution of of sort profitability. negative consider improvement of of but to ProFarm up think the away perspective

our to glad So that consolidated the XX-months goal next to our stated are be after to getting we EBITDA slide. which have contributors positive merger, achieved the of report we to ProFarm takes assets us

integrating a truly perspective, integrating and is From to biologicals. global teams made reorganized that qualitative a commercial headways we dedicated teams sales Similarly, ProFarm's and the have building legacy with force Rizobacter, marketing we sales in and made portfolio Bioceres development upgrading capabilities we on ProFarm, our is a world-class progress focused of in R&D technologies. available achieving with commercially Legacy platform what team research from fully believe

of sales, added we out post-merger gross margin synergies. our been can have EBITDA say profit from fully than that an has million a despite in growing as $X also, ProFarm’s now coming we $X from perspective, more And have we of would cost Now, target sales liked, achieved. synergies expansion, million not in

a estimated in $X in million as the XX-months $XX of merger, profit, synergies of this have Just post-merger, gross we additional to at sales year. million tune in which an the the time of reminder, $XX first which million accomplished we implies be

believe direction right trending Although hence we and the still in modest, that. are encouraged this we is by

for last coupled this looking has with get XX to not positive R&D contribution and All allowed the months. of to back a only efficient streamlined the data to also but quarter, platform us

show operational profitability. Looking show all in top we bring from line will about that believe leverage, our and we'll and should ProFarm forward, it pursuing and is strong growth products,

debt done that quarter turn connection there let's first merger relates debt $XXX almost total which And bond most up of of ratio approximately million in stood some in debt decreased increase at leverage on Finally, the absolute the X.XX the $XX the the stands financial on X.XX X% to now basis. a offering wrap the a Argentine levels, of to slide an with Despite our ago. done and higher annual turns to financial year-end were cash brief completion with the debt net the to the quarter. position. in and X% markets, year was you please cost XX agreements The remarks execution importantly, that by also third versus from million. see at average in turns our The

financial our underscores a complexities, several business we in To and are glad summarize diversified strategy long-term see is my performance marked that commercial think a a still to for the supported that remarks, year although I behaved by how approach. unique robustness the technologies current on portfolio of

the call With that, turn Fede? I back to will Federico.

Federico Trucco

despite now last from of please acreage a HBX drought in now Argentina. in wheat know of here resulted targeted think during conventional wheat, that And with it for periods seeing one of and terms the is Enrique, it on the Thanks, XX% record as regions important growth we're seasons, slide observed which number through longest reduction to turn in XX in HPX I three to channel. the we where are an advances what overview is

as by $XX.X from sales in year million we wheat last to quarter. HBX indicated the grew million $XX.X current XX%, So

to keep in flower this including meeting year number. an at aggressively, generation was expand and inventory step us guidance and This multipliers the growth key commercial this just ‘XX transition with to as exports, mostly HBX offload by conventional and us This allowing increase a now ramp-up footprint, not to hectares we in to driven Brazil, crop. our eight-fold costs is this help in preserve fiscal which to distributors is towards our more XX,XXX limit transition in working sales steady participation Also, grain our program the capital identity approval full business. to exports exposure decided

beyond XX% Another second helping the to expanding HBX material concurrently area Scale last is us increase the licensees, generation more have seed year. go-to-market with varieties that planted as year. in than is further move X% important possibilities. is varieties, number channel one companies And only our only of materials, compared wheat to mostly include last seed is currently of this planted Bioceres other second that X the to with moved consideration generation we to compared And

slide developed in make are we we to Brazil turn GDM. the soy United progress in scaling get fronts, good where plan performing at first ready the the TMG under with to and the to Now to XX States X,XXX while collaboration, under varieties continue look with to developed HBX collaboration varieties hectares our

provider supply in has company On the with Moolec. soy the tons stated I Moolec we that estimated side, approximately a earlier at that soy HBX has Science $XX as this the Science, concentrates is soy downstream isolates. XX,XXX about of negotiated and HBX agreement will current announced an protein million value we Moolec of of with ESG-linked presentation. an with been premium And

we'll since farmers, and Generation HBX -- the identity Something do traceability jointly do starting something we'll preserve with this our significantly jointly monetizing is for data program. this time first with

in On XX, LATAM XX% value we year ago And this approvals the which now recent front, and to HBX and crop. wheats. capture feed for hectares, additional us the added improvement slide in allow like the significant regulatory the Paraguay to a wheat Brazil a is also of have food Indonesia in four we were almost where approval on markets also production

turn finally, a on region commercializing in slide already XX-months. Corteva sales a with UBB Corteva with Lumidapt number for Applied platform top which agreement brand, this existing And slide, the last agreement to adds next XX, biostimulants is our doubled which Technologies with Seed we of the or ProFarm and if the our brand, in MBI-XXX have

and agriculture seed our current at times is be as that be bioinsecticidal biological with a particularly XX off-rate, conventional can almost in treatments. lower insecticides that crop effective row as feed are reminder, can MBI-XXX a rates for than insecticide As good cutting-edge used

our biological the of will and least a players at others. business Albaugh, and provider agreement among joint region in care of double validates as such Syngenta our further allow seed solutions position as to the to European us size leading This

in Finally, now levers the On multiple looking the to hand, that top fiscal ahead, what biostimulants of States us expand line I think long-chain growth top of growth, Brazil the have the expanding we think year or that and will reported have and current ‘XX. one we expect build for year ‘XX. just United we business fiscal for portfolio on help MBI-XXX ProFarm reported profitability recently of and

what Also we before the with in are the agreement new times to not side manufacture we The but Brazil has Argentina, just upstream as we And such look to condition facility installed also in capacity in expect seeing major side, of forward growth increase a country. categories Moolec actual in severe on return very a from for as resume multiple the in profitability growth the inauguration age the drought we contributing that micro-beaded this growth objectives. to currently both downstream historically also geography. fertilizers on our so with

We of to expect industry Syngenta and do the have last leaders, over Corteva, the with seeing you've to as few continue also been type years, such recently announced. all of partnerships on expand deliver these and growth to which we

that, So we call the with for up Q&A. open I can think Operator?

Operator

the Street Certainly. Ben first is question Instructions] Capital Our with Klieve line [Operator Market. Wake of from

may You proceed.

Ben Klieve

to for taking to Thanks a questions. I'd with right. HBX wheat. All start related my couple like

behind capital. of and first First then a the talk as period, many this limiting you wheat HBX how thought -- also hectares decision because realizing about HBX were the wheat the working talked growth of year many strategy? preserving not Can of of talk kind how of all perhaps all, means this you maybe about, process of, about

Federico Trucco

in to Ben, Hi nice it's you call. have the

has under or do the that ESG Remember main capital providers the to productivity of is Federico. avoiding channel do the So under and reason owning us service Basically HBX shifting linked towards farmers of to with identity engage approach. that this behind wheat. the working with associated preserve all is conventional the production approach, with

capital we up point. can And to do on. grain demanding after that, So from so perspective, certain logistics that perspective a working a from a something it is and also becomes

business like and the with there sort monitoring the type we're soy So to something we are is that grow establish an the announced one of able that recently agreements of if which to on model. Science, Moolec opportunity is type of

is twice of and main currently what because were the to reason we're So after planning Brazil. seed. underlining preserved. in today do only identity is their to certified that. then we're something We transitioning buy grain. removed They the the doing own basically we prior grain. the will the the the don't farmers can network this full number where to multiplier that's maybe commercial wheat originally And own existed underlining that hectares approval concerns we on we of But And do HBX

trade. approval, flower got part approval, and a not trade but significant initially grain is and between the we Remember, Argentina of Brazil grain

more in availability Brazil, from of the to add you transition the capital anything working know help that to linear don't industry. also to approval in varieties Enrique, this one model is if second high standard So want that. the us and generation I

Enrique Lopez Lecube

No, I Hi talking fully to agree. to be Ben you.

Federico mentioned sort this doesn't inventory. to of reiterate that level something that think on of the affect call is the fact the I

So or want next need to we what what we we to others for will want plant year. plant

capital efficient this structure about the So making future for without jeopardizing the business is more growth.

Ben Klieve

helpful. that's Okay,

growth. my kind around second of gets question future So on this then that into

gives slower ‘XX $XX that's to why confidence, think, the like from fiscal I'd EBITDA had Revenue million a you you the just where you you than of in year. in here So $XX expect progression, get know, be to you can from you maybe expected in last pretty $XX fiscal it ‘XX was you ‘XX, where kind more but bit ‘XX that fiscal ‘XX. to million you given multiplier of know, hear little ‘XX. to to just a think of about that contribution really were network from wheat dramatic targeted expansion I increase by HBX understand million, And still

Federico Trucco

understand the how basically understand Got that I the to be Look, generated. is number going it. I to concern, think here is key

were pushing the current all at these have had we the buying We where grain the -- the of we which we the in we the this up initially where end ourselves. year, then preserved program scaling themselves into in an and conventional of doing ourselves. sales more realizing transition royalty. So collect day, process And identity multipliers

I the process of capillarity So current million that can not fiscal end the our $XX ramp-up fact greater day, the million exclusively the of and we stated inventory the is of at comfort think what us is guidance with multiplier for the the EBITDA achieve on achieving a shoulders that on the to $XX network gives year.

Understanding and that reason it wasn't ’XX. a that might linear, we we fiscal for to going we we in model that And saw year mainly so, be ‘XX, the as sort never possibility. of, generation were period path a for business the be And discontinue between the some because gross our materials. last current in was you profit that first doing indeed affect it going knew And why to we're happened might in where transition where the were fiscal guided quarter.

the was viewpoint, us nothing are sort of, from, announcing main is this why basically preferred to of But the have ‘XX transition would we reason we guided year year be So this linear something And there's ‘XX current didn't guide the current why to viewpoint, of makes varieties for fiscal that availability from was just we is inventory possible. performance and today. But because that guidance. fiscal we reconsider more reason a process. the to the a that an

Ben Klieve

many hear. now weather seasonality of dynamics so second your of of kind year-over-year second to quarter like expectation particularly any fiscal that you get wild good. you at and ‘XX, us at looking you first other was how where your traditional of to in I'll of trends? With competing to have major queue. fiscal with then business know, first a sounds looking then good where, Okay, quarter back Can the me know, just in and Last were relative transition Argentina, right for quarters ‘XX the year? very against and especially question destocking patterns relative industry last give kind between, and and hopeful That's kind each rough you

Federico Trucco

tough fiscal -- was the quarter a second last quarter that's quarter, of year good of the not fiscal but mean, I fiscal Well, Obviously very one. a last so first year.

it's do quarter. the what be for So we're us growth. probably than well But in easier better second to first deliver quarter might positioned the it to in very

I think it's situation the done. almost done, but inventory is not

are of the less probably think affected dynamics, and Brazil. U.S. in those by the I particularly sell we type products that

And buy of go farmers summer sort need eventually to the to inputs into season.

a lot because the been decisions. and situation delayed, waiting So to season of farmers that their has probably make later the drought in until of

in we're less we on that in over second So performance three and first of the type able very fiscal that to numbers respect. comparing will two But deliver to continue be to last are be expect so. shown average obviously or we've challenging the in to quarter years, different challenging years the quarter the more the fiscal just because

Enrique Lopez Lecube

agree like like tend QX, of year the the Remember a altogether, because bit the and Brazil QX that. and color like of to in in between and Yes, I our revenues that first-half look fiscal on pace Argentina just mostly. forth of of Federico, back sort more to there's at sort always in Ben depending with of add fully what's sort that season and we

are, of, be growth overall. So deliver should I set think year of that we a target type to where and we able growth that the sort like for we

look good some that that first-half in in quarter, on last But first line quarters bad getting down, where in the up, remember targeting saw And also comparable quarters annual season I for up. second to the a is was the of example I were an basis. but some of like year very that, one one you a very, we at very tend an we're And we good for. And sort that's this think of things that on think that very year good performance And what our be basis, a a season. are the quarter. the year to a overall

we'll turns all out it to be. So how see

Ben Klieve

it. Got

questions. you guys good. I taking back in Okay, get Well my very I'll queue. appreciate

Operator

you, Mr. Klieve. Thank

with Owen Kristen Oppenheimer. of line the from is question next Our

You may proceed.

Kristen Owen

ask invest biologicals. have by questions Hi, taking that the question. hood some but the discussed, to already HPX volatility some of technology of thinking of model to transition a really even to willingness I to some afternoon. farmers' Thank the of follow-up or macro wanted you been an about how is for addressed, in that you've willingness you impacted to the sort more know,

strokes If have you. about a you just broad I'll and first then piece follow-up. sentiment talk farmer can maybe in Thank that

Federico Trucco

Thank you your for question.

our the probably always that Argentina, dynamics at a to which business. Brazil. on sort willingness this that in is result is different Europe, in other as where farmers investment. think improve of technology initially, investment. technology gives of invest technologies which I key wheat today is looking in of very growth, market in aspect biologicals eager growth return and general, are a to a yields In the our invest a the In of words, farmers And of particularly business, HBX U.S., we're is part mostly between and them

taxation an profitability political things These we exists hope to some So in of may will the to because improve that's the that going exacerbated as and Argentina, next I situation the in cycle negative the the of specific election have situation year. situation think through that tend Argentina we're change. drought macro which situation

likely so where to, that than for type I usually the that Argentina translate into commercialized. be better greater were. appetite solutions terms, is farmer will think income we relative in of And in And much we

like lot the Europe, industry sell do products industry what U.S., of in and frantic in active the I replace Corteva, situation. these to the In for to and instance, a Syngenta, we're Argentine biological ingredients. that we biological that seeing ingredients is case active leaders the almost we leaders, in race for chemical Brazil, that through like, a specific is Now, of from think

be we case, winners technology So the to of continues if in stand in geographies. that as think other I terms will these adoption

we instance, For of where readjustments, business we in announced. growth of inventory seen contractualized the that the that in agreement being what's we've with XX% Brazil, headwinds seen have we've on top Syngenta the biologicals on

there. solutions farmers value Argentina So them industry our or of in I terms customers, in accepting the very positive be participants we these proposition feel think main elsewhere, major of

Kristen Owen

helpful. versus of just, profitability, asked just of that you gross what help the the very identity HBX sort model, then can on transition us preserved again, can so one that a question of the understand is contextualize that royalty And model to impact to had Ben is I just profitability profit? we this that actually the follow-ups That's the to

Federico Trucco

Sure.

model So the is preserved identity of profitability usually that has a company. the the average above profitability

no of you go because obviously the then When but revenues higher into cost So of XX%. upwards profitability is we're decrease, goods. royalty the talking there's added model,

We itself. of seed manufacturing involving are the not product the

French royalty XX% profitability So payments we're a with we sort instance, the our we between JV probably a other And we for deduct and partners. to particular talking this that in do interest to when on we at look XX% in since, then the company to need technology have about ownership have of business. Wheat

answer, around preserved XX% higher, short it's So front. to XX% much or and for program the about XX% closer identity the on royalty

Kristen Owen

offline. my questions I’ll you the Thank much. rest so of take

Federico Trucco

Thank you, Kristen.

Operator

Owen. you, Thank Ms.

Canaccord. with Burleson Bobby from is question next Our

proceed. may You

Bobby Burleson

Great. Thanks for my taking questions.

drought is followed Xmonths about bit changes callers have They and touched now? the right of you perspective that little here? the maybe farmer California a of curious conditions talk the one, other been California, And I'm conditions. maybe But patterns just think what just weather, little the lot So there's a a South seasonal by but for on America bit. had flooding the volatile can health or this, next and setup you both first

Federico Trucco

California situation of that the able the expect to It situation we Yes. because year. Hi, the Bobby. flooding, opportunity on to we missing, think the last improve we like not for Thanks materialize something weren't products we that joining expected. And expected to Well, finally, fully But for to always what call. there's realize the improve. I we feels finally have. the

particular a do we think after inventories because more very business in over which that that a is product what there And So expect have if high quarters, can to cleaned compelling been to get the we for last crops agriculture offering that state. also I up, few value happened growth and do have we cash resume and case, is the setting. normal

almost that's ways, where And many originated. Innovations home in that state our the business Bio is because Marrone

positive California business. more sort some bit of last But input terms statements of So been positive a we more we're ag years. what that having little the frustration conservative two be to or after regarding over it it's on had than in front, expect our

Bobby Burleson

to follow then question. just little And a maybe up, different bit Understood.

that With of we've demand, What's that's could there distended thoughts it like little seeing curious, issue feel of is for expectation seems chemicals kind that an of kind across how around bit been here? inventory the headwind longer? you lingers this synthetic drawdown be? a just it the of inventory that the afflicting drawdown been less biologics. do like portfolio, your Is concluding I'm kind

Enrique Lopez Lecube

And that category in Enrique. other as Particularly has Bobby, but Crop But big big not Look, this is important, a the crops, in mentioned, it's just it less Good you have there's is row what for in have is on been some relevant what there our in you terms as crops. Protection what we I is in mostly very a biologics. that important that are been case, for been what call. think has offering that cash that of that the any on think X have have product to industry adjuvants. I profitability, affected chemicals dynamic us more we've facing. seeing participants seen headwinds,

that the So And it's margin a into something in higher lower on away that sales why quarter, we've the of you force products. been push decreased and navigate. to that sales margin that's the saw we Protection, might focusing need products from getting markets Crop able

care that, but a you it do do is always top-line to tend good to thing profit show to not and if be best So might thing, results, you cash about which generation. we the if gross want

Bobby Burleson

this just I talking relationship sneak on the relationship, for here, see Great, similar outside partnership on wondering, Do this you of thanks. And with with benefits I'm the kind X have you et opportunities Moolec partnership for robust a can helps a clearly guys more are opportunity had And downstream players? in cetera. HBX were way you financial what of if about And other maybe soy Moolec? curious, protein. pave the that Moolec, downstream with arrangements

Federico Trucco

so in them, is to program creator to of do to ESG this approach it Yes, productivity terms around because sure, in that be of soy molecular for part bit their a offering our with address future, able obviously, of helps to that, upstream nature the like the functionalize their them and seed category And little technologies farming think comes solutions treatments beans business. biological way I think also HBX HBX functionalizing a the And it I handy the eventually in came the combine very on. and Moolec in of generation ingredients. a with

So there's think stuff. type I an to of this continue opportunity to do

that believe originate one in is partner beans thing we hold front Moolec the is that I those that on to with way agreement, for go the Moolec. with Moolec the the into currently part And equity we is the when beans farmers of important we that will ownership pay

the Now, are GLA remember X them side. got we shares that of sold in food we that verdict time that acquisition, exchange owns million of the Bioceres to at for ingredient that almost assets assets Moolec the in the

ownership the way that pay stake. the those So going we're XX,XXX tons in is -- by using for part to

we having of an this our done in additional will, divesting put that to sort the jointly also this but Moolec in in not is farmers that equity value if program. are that gather interest participating way working with viewpoint, the cash capital you in a a place, business, position, our that from affecting a but and incremental we of with data way for and create this also So be rather sort traceability

Bobby Burleson

Great. you. Thank

Operator

Mr. Burleson. you, Thank

Markets. from next Kemp is Our with question Brookline Dolliver Capital

proceed. may You

Kemp Dolliver

Great. Thank you.

clearly graphics to XX, versus I'm HBX height interpreting at the whether upper me it's First advancing. the commercial that And that slide because just of clear correctly, will corner else, X.X but you comparing outperforms materials. trying is you right-hand variety top on understand bars, in some the question, the have the not data the to everything looking varieties I'm just be if

start So that? with can we

Federico Trucco

Yes.

call. commercially on conditions. performers scaling, the So materials speaking, these performers, the this data for of are top Remember, drought average up. that two one averaging the we conditions. we're X.X this and Check that these the seeing first, scaling where thanks under is two compare of not we're comparing are end, locations. and so each the joining II top varieties in we're performers, Kemp, I top with drought Check then, two No, four sites but you're and to X.X not the here And under of the is is varieties and

XX% HBX were has delayed in the case top in That normal varieties Well, some are that we because of almost HBX improvement the faced under away been great that's still So but or reason trying move soy. think conditions us from we we under the to distance commercial sort these were conditions, to achieve as past, in high-performing the forward able not to something with materials. the Brazil. XX% were significantly Argentina, past, with is we why drought, we in

deliver incremental not normal just we equal, of yield are So shown here. top or is if This than conditions. materials sort and better, these under is dry-affected what's that can commercial varieties under being have not drought, not which

Kemp Dolliver

sales modestly conditions, and summarize, is any essentially, the the the in varieties outperform commercial will or, under case of existing outperform a pitch drought, have match Okay, that so when can get varieties you you X.X, then to noticeably? they that

Federico Trucco

modest, if HBX return Yes, yes, and even significant is enough a give XXX again, kilos of added is of in no. sort that of investment to seeds, terms good on of you soy, value the

Kemp Dolliver

Right.

Okay, good.

a relates fertilizer significantly. thing that of rolled over dropped after curious, performance is few course business? several recent have months or last running times the prices, up question year, Second headwinds the you've industry of that mentioned, one we've in the Is to the and factor that read last over the I'm

Enrique Lopez Lecube

Hi, Kemp, Good you is this Enrique. to the call. have on

that essentially commodity line, MAP exposed the manufacture. is of the in that DAP is look, the price for the fertilizer by the make, that exposed main fertilizers, and material raw is I DAP. MAP we we say not because replacing margin is micro-beaded would are essentially because that works, What that and dynamics fertilizer obviously, So, micro-beaded technology way to

the of part might be be we you of the in to QX mostly Argentina. terms drug line, QX, saw might that, and revenues volume out in drop exposed but in situation that top was in it and that of So, yes,

allow is we noise from a sort for now that grow fertilizer, to us essentially remain like stable, we of prices DAP increasing that believe MAP in keep or have should out in revenue But about to to allow we of volume decreasing measure assuming MAP stabilized, forward-looking should prices that exercise, when fertilizer resuming sake volume. any prices. are talk micro-beaded to draw growth of what the that continue and us and the is DAP if we and seem And what So, that commodity will and line growth. growing we

Kemp Dolliver

one last That's then question. just great. And

that was The other the higher last to line, volatile, couple normally there than what which income in years. anything negative particular is in led of the we've seen Is swing?

Enrique Lopez Lecube

lost one mentioning? which I in you there. particular you In are

Kemp Dolliver

Yes, sorry. above operating the other for the That's million X.X just This income negative okay. income, is you which report line.

Enrique Lopez Lecube

yes, yes, absolutely. Yes,

particular $XX.X in not is to that in are quarter, and that not So, identify the to accounting decided obviously strictly the related EBITDA. million of there, it's we inventory for in we some anything costs segments, this ramp-up the

that adjusted apples-to-apples an as million result, consider in a that the to back last base we profitability that. by from to this year, the So, this we took driven it's year's because decided not business perspective, this $X.X $XX to that million. what in the adding you compare EBITDA But be needs comparison digest but part if we you of should essentially reality to were to make is do

Kemp Dolliver

you. Fabolous. Thank

Operator

you, Thank Dolliver. Mr.

last is Brian of line question Our ROTH the with MKM. from Wright

may You proceed.

Brian Wright

afternoon. Good Hey.

is of the on the comments? that before to the characterization? based an a Is way fair Just $X.X up on other that summing write-down inventory that others, that's just million real couple describe some one quick best of

Enrique Lopez Lecube

yes, yes, think fair Brian, I characterization. that's a Hi, that

part underlying from we're as business, we reported and that's what or therefore, result by are the clarify, costs. that We this adjust was the essentially in But that, that's wrap-up $XX in EBITDA do quarter, to million the inventory including business excluding it be is going baseline to believe about should that and anymore of EBITDA. not negative Just EBITDA, the a it why in deducted particular talk driven we that.

Brian Wright

Got it.

yet, sheet on little And the an bit us a just the differently, you inventory because we update full have can Okay. level? don't give balance

Enrique Lopez Lecube

yes. Yes,

coming of I that so out related what we February, decided because high degree see most anticipated than we had strategy and to anything distributors. Argentina going in that droughts when in the in think HBX. is mentioned we QX, our we that that inventory levels from hold Federico levels high were reported the with to we came receivable about when accounts Remember some to to QX hands

we're waiting be I think that still normalized. to that for

increase but profitability to That's an accounts the start that of like in then and extra like working an I It street think the two, we part out for improves, cash as or quarter to plan, mostly hoping receivables if to a stability we you of in trend related or line see but take distributors, might that, back you're in shouldn't sort going cashing and a referring but capital. up what down. and farmers that put can rather of that's for it's Argentina back the sort we're

in was of you're materialize. to year, to had what the fertilizers that that streamlined part think fantastic the I more in a prepared related to number we coming because a also quarters, fact QX be last didn't Inventory-wise, inventory season that for going supposed see was micro-beaded inventories which

back quarters, Accounts receivables should go of well now having of is the as quarters. in and outflows in next that get down should the part normal So we're of to micro-beaded levels fertilizers historical inventories couple next the couple inventories.

Brian Wright

model Great. of about route, through a a to expanding route, multiplier any way to imagine the way is from this think seed to that I a there Is standpoint? but kind help changing by lot via is capacity larger hectare there effective the than direct it's the go-to-market but the about quantification because way, hectares a route? us think

Federico Trucco

how thumb? as understanding distributor of address, a Like a hectares might multiplier terms of rule in like many

Brian Wright

the able Yes, I fill, that guess. be capacity to they'll

Federico Trucco

have these XX,XXX, three can general do and two year, we give XX,XXX XX,XXX be smallest multipliers. for Obviously, the type HBX a will is we of to initially the are think each. each. being That's to we be do to significant majority, want XX,XXX, continue are or add take you XX,XXX. if years, that frequent them HBX. multipliers reach to and Instead on-boarded, XX,XXX to outperformers. say the an I there's mostly them not will the thumb hectares actually but that multipliers can HBX will expect XXX% XX,XXX like of the we obviously between that I but or hectares types, some kind XXX% there Look, average, us, do XX the first they but those almost Of of HBX expect the rule less more of and would most Also, to more probably

Brian Wright

Great, much great so you perfect. for clarification. Thank that

more one then and then that, Another done. one, after I'm and

the You doubling us talked business. the size Can European that of you help current quantification of business? about out on biological maybe

Federico Trucco

relationship annual good Is will Corteva think was what have Look, opportunity We today, twice with that I currently that UBP basis, have MBI-XXX the to think the that is growth will that on the to year Lumidapt standalone and is that on grow. the we consideration. with continue it enough? UBP and a double we million or probably close an last obviously, $XX potential

Brian Wright

there Argentina currency for to at in And any be currencies, in inflation perfect. change for evaluations just with one how the dollar that's and all? to then impacted functional that's enough is are Oh, legacy last the know to kind the impacts

Federico Trucco

is us that rule in catch-up, to during Well, you our hits dollar would some a finally up experienced were you last are also we several events, that up so little would dilute a as more month, over as otherwise we of a I against sort thumb costs higher that what inflation normal. and the in having bit inflation I able discrete will is like help that say inflation believe The something of that devaluation way, the catch real in probably devaluation, of we obviously dollars, month. is and when is every a XX% months, happens that last had peso-denominated be

should in part viewpoint, which profitability in help us Argentina, So as of our I we business significant XX% from we a the have operate are devaluation costs still peso-denominated. in think a which the

Brian Wright

Thank so Great. appreciate time all the much. I you the really with questions.

Operator

Thank so questions CEO, for this closing waiting I Wright. over Federico call you, remarks. There the at will no Trucco, are other time, turn the Mr. to

Federico Trucco

for and Well, joining for thanks again everyone questions. the to good

is there's I reporting reach to team, any the in embedded interactions ourselves, evening, the questions and materialize growth our you Do full as to headwinds can out are lot looking of have, deal hopefully to a feel with a much which free have a address our the continue not so come that of year sort might Thank to year factors. have think from to IR everyone. external information, that the results. to in continuing we and and great we Have to fiscal you. fiscal 'XX, business, forward that

Operator

your That concludes Thank participation. today's you call. for

now your disconnect may You lines.

Bioceres Crop Solutions (BIOX) 11 Sep 232023 Q4 Earnings call transcript