BIOX - Earnings call transcript Q3 2024 | Bioceres Crop Solutions Corp.

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Operator

Welcome to the Bioceres Crop Solutions Fiscal Third Quarter 2024 Financial Results Conference Call. My name is Carla, and I will be the operator for the call today.

During the presentation, [Operator instructions] I will now would like to hand you over to your host, Paula Savanti, Head of Investor Relations to begin. Please go ahead, Paula.

Paula Savanti

Thank you, and good morning, and thank you, everybody, for joining our third quarter fiscal '24 earnings call for Bioceres Crop Solutions. led Chief Chief Lecube. Financial be Trucco, Officer, will our and Officer, presentation by Executive our Federico Today's Enrique Lopez of for presentation. available them session Both the following the Q&A are

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

Federico Trucco

the and are everyone. Paula, $XX.X and at to $X.X were $XX to we #X to we Thanks, in Argentina fourth anticipated to in quarter experienced Total our EBITDA period income our in for declined despite the last that to drop the last our fiscal decrease adjusted good Brazil, to for for of our third be quarter in net million, to generally the results we report. the revenues compared with which satisfied same in quarter, million year. million. Slide are the sales although bionutrition year-over-year XX% in reporting Similarly, today. our a to and I some we expect and say and solutions numbers have morning Please quarter now turn delayed the realize

developments whose weight see we during As in expect to of 'XX, the the these of in more third of translate is From by now his Brazil, point milestones Syngenta disproportional the anticipated drops Enrique to seasons. into quarter evenly a presentation, we year. continue agreement of distribution are X contribution the entirely qualitative explained in will quantitative positive view, the explain distributed throughout or which X part

developments regulatory first offering. inactivated solutions, high-value opportunity in well crop last approval of approval week. creates One bio-insecticidal for generation [Indiscernible] the immediate an our rate as lowest are This area announced seasons the we markets HBX row in or these X our included our which in X and channel in as markets once broader biocontrol formulations in was

favorable soy well farmers to growth. fourth in these current from on performance we of and quarter where Brazil for received from as the in positive information the 'XX. varieties X discuss presentation Another as comes feedback and the key more will provide HBX outlook final pace development our fiscal later expect I our of of first developments the increase

now the of numbers. Enrique will I to more pass presentation over our that, for a Before detailed discussion

Enrique López Lecube

and you, to the morning Thank for good joining call. us. Fede, Thanks everyone on

of short Let's QX bit mentioned, turn at we the million, revenues begin achieve our in Federico for hoping X this quarter. Like were to $XX which what fell looking to our financials quarter. were to Slide total a

accrual top the included as to get in payment. last year's from [Indiscernible] line for ambition Our $XX.X $XX.X quarter, the was close million as a possible revenues million compensatory the to which Syngenta from

signing our the reporting we the only An do in halfway in the to compared Syngenta million that are of of which last we the got exclusive rest grew the seasonally was was the by and $XX from came let with quarter top agreements, quarter from we $X $XX of million in drop me to business, that to third million. challenging we that Well, low line million obtained booked goal sales offset a of from $XX.X for in today. the you this quarter. quarter compensatory the payment, ambitious remind upon got Here, million $XX.X Syngenta accrued year performance

Although the being going we season our we hard accrual knew it quarter have what was from Syngenta more we did the to of for low of characterized a in in most compensate be target than accomplishing to very fully markets, expectations did. drop

market into for that time get for will being, in protection. We that a this rather we quarter tell therefore, you our this me as recovering of have the quarter. the than nutrition part different regards for happen performance. there different segments didn't a business portion are to the is to And level expectations the specific with let and crop timing just fourth that realities details sales the of reasonable there related of is But

million see payment will the $XX bottom to compensatory $XX.X quarter year-over-year million of $XX top you is underlying the largely this exception last accrual to reduction shapes million the as income through was performance business the to the Syngenta presentation, million what in go it comparables line $XX.X $XX.X from to EBITDA in year. flows million EBITDA from compared and the not statement. Adjusted an As

you were the to on X% increase a quarter, segment. million to In sales to compared $XX.X per some last Now same Crop for give turn X let's year. the Slide granularity quarter Protection, revenues

bit context the some a markets interaction which on management U.S. to adjuvants with Although impact expecting from has segments to interest particularly year-over-year crops comparison positive, do with rates Brazil Both the our the is the cash we is in our this side. show the this more, in in bioproduction and their with suboptimal conditions, mainly the of inventory of that and products. of one by distributors were higher continue explained

Although it XX%, In bit increased for crop to market than what a things the has protection more the Seed get downstream better everyone -- HBX been industry, Products, Integrated to normalized. what expected primarily revenues in due sales. taken & getting have by

campaign, for case important winter I to in quarter, in though, think season quarter third products, for year. much pretty for the are crops segment it products, Argentina. low lining an was not that particularly unless that preseason is this sales related the note, The winter so seed do is our for normally things is which up crops there happening well this active

is planting so significantly rain farmers double-cropping for local wheat, all price for shows the in to stand-alone. economics in has needed moisture secured the wheat with soybeans corn most few Also, accumulated far. compared Argentina. or most And attractive improved Soil soybean last weeks

So and May, July June it be seems that pretty active. will

come grew effects the effect Nutrition Syngenta comparison quarter the the Crop segment, however, in of to the payment, Product Finally, reduction. the to in revenues at the and XX% a therefore, during see not Nutrition previous segment, from the payment we in Crop Syngenta sales offset accrual. year, outsized in enough segment

QX. were an past there Black in any to region. we by plays million against compensatory revenues only of This, related did in X we prices market low purchasing QX came that ratio biostimulants, prior that in we million sales as fertilizer than had of Inoculants lost impacted for months biostimulants and see growth estimate we $X to segment between remained fertilizer high get postponed with sales but to the campaign do did commodities ag are the $X the followed million to what that that is to active comparable, pushed effect, to planned farmers the similar that and winter so payment estimate are historically case, by million quarters. price dynamics we planning having surpassed and the in Europe a In at were to of a past and extent Excluding in This to microbead Microbead into got course, same last in in that Brazil as the dynamic, years been the there had X will which Argentina high but crops decisions compared way grew and preseason continue from sales third pushed Sea in year, year's a values the in $X for drought fertilizers in of quarter for we from war lesser rather sales. the expansion the because breakout phosphate particularly segment, were in were of expecting. Brazil comeback to improve. In levels, phosphate not QX. a $X than have followed fairly into

X now million in Overall line the to $XX.X of effect profit comparison last million, Syngenta $XX.X described year's profit. at the gross was quick in Slide accruals. gross payment a to Turning look regarding with for what I

in this the mix. gross than than Excluding and increase of less but profit business saw in but the effect, rest increased gross revenues. proportionately less segment growth the the revenues slight Crop a Protection to profit product due

growth is [comp]. came the gross that segment lowest a this reducing categories seed from is year from profit million a before, gross Nutrition, last of reduction low-margin U.S., Brazil gross rest grain that higher In downstream gross I the in portfolio. profit higher Overall finally, $XX in were accrual growth have As for for [EBA] products, Crop bookings. from and gross to explained sales integrated decline the seasonally margin lower entirely the and the revenue we the Syngenta margin XX.X% was quarter. the due the quarter, the margins than in And given extraordinary the expecting which brought sales, from contribution

Syngenta payment flat. margin accrual effectively the remained portfolio Excluding gross effect, the for

partially at beat was accrual the by million. and year-over-year performance to comparison targeting the level, on operational business. although in adjusted million million EBITDA This $XX.X the than to on tough Different within already was $XX.X compared I by fully our EBITDA offset to year's never the Like was quarter mark. of EBITDA of rest explained compensating Moving the the the were adjusted we of effect $XX the mentioned, the sales, expectations X. full Syngenta for Slide last was

$X the Brazil estimation shortfall brought crop and Our in million headwinds a U.S. in to is business our of production the about that plan.

expect able crops resumed regards quarter an in quarter in in as activity to current to fertilizer Argentina pushed bring with if in we but fertilizers goes to quarter this what for expect the in last profitability will in if optimistic Federico Brazil and market talk seeds winter achieve for we as we U.S. have double-digit top into were being to cautiously quarter. and positive and close of in a remain meant While and EBITDA our growth that million $X of deliver to QX we the the on to sales Europe inoculant active during year, and fiscal the planned

LTM still X use Federico. a level. to leverage Total call the EBITDA ago X. we on watermark higher stood financial essentially net million ratio debt Slide to at year in $XXX last to million. turning With is back quarter, turn with compared at million lower and what net but year, will turns, base that, debt a I usually $XXX.X $XXX Finally, as higher, the The debt than below the

Federico Trucco

Kike, Thanks, turn and to update for #X a HBX Slide on please now brief Soy.

products compared recent delayed due we to the last the of potency forward Having effectiveness, and been Brazil, most has crop microorganisms. fully a this, are well regulatory the the ambition last Also, solutions precision, that inactivated formulation performance was yet Brazilian in the demonstrate brands Argentina not control United turn XX. metabolites, This recap of to in excessive first market, top good cycle, few the day [Indiscernible] next towards in which under the alternatives. -- we'll been commercial have so rate and area, improved this and In conditions special moment. Win than encouraging on is rains in this season's or harvest right live solutions formulations. consistency inventory registered replacing announcement mode Soy the in recently seed less livestock. last weather during of approved compared of our part Slide developments Bioceres' a Please step able used while weeks on cotton should bacteria-based and microorganisms, and key with of dwelling said life advanced X Ministry our approval or with third-party typically introduced leverage also in greater yield. and first we of farmers improvements neonics, situation commercialized Brazil's at significant a milestone normalize allow as in the now. in nearing based for inactivated much continuing effectively marking insecticidal favorable greater hectares, the the products Moreover, as hectares Majestene Agriculture HBX double-digit X,XXX and products next controlled brands X in as generally hectares, received with stability to month. States abamectin this of pyrethroids locations end this formulated from parity that products seed week treatment agreements. In bioinsecticidal than varieties XX%, corn, the of States can the of lower and soil positive our of the Brazil, Venerate about promising United the have heightened number to are to alternatives of represents first To feedback geography. we some soy boosting nonliving up present XXXX which soybeans regarding since the as and slides, commercial under have on limited their by the cost, metabolites are are by beginning be biocontrol approval crop biological nematicidal This The on in in and we endorsement to more achieving were by discuss alone, showing treatments, with for million to of as insects first a report increased shelf well resulting chemical action at organophosphates. cost and to they formulated

from If exhibit improved these and when with impact next slide, other you climate key terms in-house of that I a referred gas solutions much report to. emissions, see indicators. compared chemistries soil our we among profile shows compare This pollinators X a the to will you just to sustainability turn broadly alternatives how and main biota safety used graph in also hazard sustainability

you profile bionematicides first slide. market much in and and nematicide enhanced performance, relevance company $X.X of biocontrol billion can milestone Bioinsecticide rate our approximately and individual improved for insecticide growing because and by largest in a similar at currently as our the XXXX. global poised today environmental raw world represent the awaited in in biocontrol annual past total average the crops growth for been the estimated X XX% years. at country's this this next have comes the market approval general. of in the Lastly, become Brazil market market of or an near-term to Brazil with XX% of This is the plans and for is see

let's discuss take growth. the in profitability period we in HBX slide, and improvement and deliver growth be of expect the turning a dependent fourth another what year to where to be of segment, double-digit associated seed to wheat of quarter we moment with XX% is able Integrated our next our Finally, and to mostly Roughly, Products on improvement significant a in stand performance sales. will terms the driving

almost able from in year. the the don't expect are be target product to microstar Enrique, to want in growth days is we XX approach halfway quarter. comparatively discussed today, we this of and remained in come of bionutrition America. this conditions to and stronger I remarks the the namely As there, our regarding sales that almost and catch-up winter in to sales, from in the the sales of fiscal The crops expected anything Brazil Argentina inoculant know, you add Latin for outlook to if in fourth rest

Enrique López Lecube

would get as what of of fourth but we Thanks. lining like do crops. nice with Argentina a we quarter, winter think, in to feel market kind for is a historically course, high Fede. comfortable up what Look, it's Absolutely, pretty I is

product We availability, have be seems we in a also seed pretty to in can biotechnology only the active fertilizer plus fourth have wheat that quarter. campaign the deliver what

of level good with watermark able we feel are quarter into far EBITDA is QX with on already there of falling so things that plus and also I in shape accomplished the the hit feasibility the So we be been market QX. to from mentioned HBX have if to what that in the of

Federico Trucco

Good.

up where this pause place Q&A. think the can for I is open call a we So good and

operator? So

Operator

ask question a If [Operator you'd to instructions]. like

comes question from Oppenheimer. first from Owen Kristen Our

Kristen Owen

bit little the you modeling easy for want to start around a payment. an of just question but one, a Syngenta I with

Now how fiscal going that XXXX. those compensatory us to contributing we revenue remind X we're through Syngenta of Just milestones, that that we to mechanics the fiscal XXXX, revenue big overall about should of start think nutrition about as think forward? crop

Enrique López Lecube

Thanks thanks Enrique. is us for question. Kristen, today, this for the and joining

important material a is this level Syngenta, like visibility to is So think be it's us it on with for to that sort able to of evolve. how going I provide business think we of

what let payment was to remind it everyone put business. million do in $XX for the So context, me to compensatory meant

X they agreement, what part was us, still a us. of of not been first very to are the For years Syngenta, the fashion have profitable business with economically make we sharing grow to a the but in able to that would business advantageous it

a the grown in of that million they compensate at. sharing grow $XX has from, So coming profit payment not the like yet that's to compensatory in level which can business stage sort where the the in to way Syngenta is

that So this accrual don't it profits is have what quarter $XX.X at that when next we would Kristen, the I we million in that payment would business able the bring make that to least tune should compensatory a in year around, expect, be got be flat.

is in and start X, of jump first jump that years to year the and at growing again prior agreement, numbers then in and have X meaningful the X X sort onwards. meaningful keeping X, compared a inoculants year the we X So like agreement. what the in to of up with Syngenta, double we then the is digits just what agreement have with in And

performance. led we expect than million, to $XX.X tune first $XX that compensatory what you accrued year, as for payment around the What in lower have fully business accrued this inoculants can is was of the the year the with by next So we which in Syngenta a operational million already compensate year.

that know if let clear, dynamics. So I not, me if know. the was those are don't

Federico Trucco

are top on that of are of in Maybe of sharing nature the to and whether $XX $XXX a in now booked or million it's third the quarter third 'XX. of being reminding quarter agreement 'XX terms payments of the we the that in million of alluding worth the profit minimum

So XX totaling meaningful another. that, after new were addition forward minimum throughout are geographies agreement, smaller in more years we Syngenta as onboarding, was to $XXX of year million, the as X the the in payments become initially, which they there and move

through achieving will I that, what are believe, today this So we compensate more accrual. particular

So in getting total, be Syngenta. million from $XXX by it's the we that with guaranteed contract agreement of profitability should

Enrique López Lecube

first and think, for in in because will we from you we Kristen, just annually think thing one is [Indiscernible] to that grow, this one forces payment and purposes, that It got market portfolio I provide I in everyone, $XX like us modeling what And obviously, We for other -- compensatory targeting, the we with see the reminding was globally. million to Syngenta to years join that close are expanding Absolutely. agreement that comes hence, the was Federico the have didn't are keep worth which is leaders. said, business. category this X that is the tougher profits to our

Kristen Owen

and That clarifying revenue The of one versus the helpful. X, more ask is onetime compensatory these X past contribution super ratable I'll payments? years that question. is

Enrique López Lecube

Exactly right.

Kristen Owen

Okay. Perfect.

related for market. my guys registrations then the you big to So that second in in milestone question is new Brazil,

I U.S. the that think already also that approved mentioned in has that, Federico you been

of broad some around Species like they my to U.S. benefit. adherence is get biological market that question or getting stringent me, a either Act end So just the the Endangered sort in the have excuse unless some things EPA United can register question review, they review or States products review more ESA to tougher around of

and in these be think picture the you opportunity in U.S. of kind Bioceres of how how So pipeline, applications? question, environment sort the and your big progression acre may for broader regulatory that of broad a the an it's about NBXXX but

Federico Trucco

the question a for the easy be evolving, joining park constantly for that's they about never the for to are. to walk we Europe be in Having a U.S. regulations talk tend the business which to Obviously, Brazil to and said because days. it's the bit this, call. tend and frustrating compared Thanks, Kristen, and in these

of in approved to complain. approved now to in was say form as already has have that So known what been what not MBI-XXX. going Brazil in approved I'm I just -- the the was U.S. we

there's feel in in and is U.S. where market we're we something this for So a currently -- commercializing the Brazil.

and Hopefully, rate news MBI-XXX, in was approval to refer few think expecting as call, next forth lower version there we're the this of intention we of terms the kind In where to of should the technology, which an next on initially have and months. the we I a from that, by U.S. an to lower the review able onboard come do back are after the are one and not with the the in one EPA a different fairly then now Brazil, rate for and that we where rate is case this extended the labels got be talking to ingredient of lower lower rate path about different we might approach. active forward these probably in reverted a quickly seek can And since we formulations.

of the critical market we the in today, pest not what we to is lower way our $XX probably tests. pressure where out in effectiveness key about that's be soybeans part obviously the level And Now it's of control of royalties make to more germplasm competitive be is make referring for Brazil, in we Brazil relevant how which why and biocontrol about was more much able hectare. than than today. germplasm that cost per retaining very that's we of to invest out would rate approach raw-crop if in the today bioinsecticides insecticides, and very think solutions, each bag, is very replace with while Imagine high. we royalties -- I per what need of $XX because the so biosecticides I

this hopefully, opportunity in markets. we the in very to higher-value the So and shortly, low is the seize trying initially are markets rate

much, much, regarding faster of main X regulatory of probably in be be tends obviously, products. framework, of done these than in days what terms to in much the terms faster these Europe we can and what both Brazil in the see U.S. markets general the than In countries sort

Operator

Markets. from comes question Capital next from Klieve Street Our Lake Ben

Benjamin Klieve

I first want as to start a with clarifying well. question

to presentation right. looking understand your I where last make want the this ahead, laying slide you're the I of sure On out

is indicate the in are contribution are make in EBITDA to with quarter, out of between from you slide, QX that sure that contributions I'm just QX, I already bag that you not -- to is this basically that already year-over-year right. Is EBITDA -- pushed understanding at levels. that the HBX the got want your correct? -- to are first you have This trying weeks X yes, plus So that this

Federico Trucco

So first, to great a going the Ben little are last it's saying here. the we delivered current to expect EBITDA last quarter. million which quarter, you $XX have the are is that that fiscal million improvement -- is graph by of part What slipping so be almost for we this with less than what's from $XX in

done current So got there incremental that the expecting that are the of about is delivered what's of last by of that we the Is into almost didn't HBX, the the in that $X then days quarter half the we realize part the EBITDA will And million for after million quarter. guided a be remainder incremental left year, or EBITDA explained last that we of already significant which to are $XX year. that towards clearer? of to in realize third quarter, EBITDA

Benjamin Klieve

correct? time. is answered year EBITDA It or some for in think that And of the HBX with in about follow-up least contribution targeted in $XX comfortable the question, you Yes. you're you've that I which still Yes. -- sounds with like quarter, specifically general, expectations for number. my that Is $XX either full million at just million your

Federico Trucco

[Indiscernible] beginning is only we as of we're start where months but optimistic there, done is would that are Enrique X.X terms which be. as insignificant, I by in comfortable is said feel say the the presentation, that we not. year. and halfway much and this to -- we're as a compared are at floor in last already we his into already But rather the not cautiously We're it's were at Obviously, books, the we can way. of higher quarter mean doable yes, we I that

Enrique López Lecube

is Enrique. this Ben,

complement Fede what to just Just said.

year. think here want have million is I communicate didn't about that last we what that we to $XX there's

something we be something have is the from QX year. anything of didn't So had plus last from counted that about year, coming we base million last shouldn't towards QX is $X flow HBX $XX that into the million that

and think growth that $XX to and market So in that Brazil the $XX million have U.S., already year-over-year, us quarter-over-quarter biostimulants that deliver. Like the with should alone organic mentioned, been of remaining business probably I that million delivering us plus in the something to accomplish I be in get to should puts at able track the is our have to put underlying we $XX normalized sort what minds a bioprotection on growth to. like set million

Benjamin Klieve

Got it.

That's and clarifying. Okay. very Very good. helpful

a of this understand a the down major if On wondering Enrique, there's lot of on business on year-over-year level, business, a just I takes the fertilizer of the kind you fertilizer clarify on and high quarter as puts basis? going performance here. price changes I'm can broken by versus volume

Enrique López Lecube

a Ben. Yes. question, good That's

though to of like sort dynamics shortfall [Indiscernible] volume this Black were Year-over-year, comfortable the like DAP the we prices by the a that of And to the like to historically seems that follow plus responding Sea, the in be than against remained performance I it it us sort breakout have the what because makes was related. And driven. we described. just high that's said. with what war solve I think feel it to surpassed of I wanted months be planning also the volume less only it do even was bit more all what quarter,

postpone to does So usually for farmers very is behavior, that minute. check into usually, and that back purchasing it go the farmers last when historicals what you

the to that have the signals for commodities. wheat have fertilizer of season we improving at in And we should soy prices, So phosphate end good improves moisture, crop particularly. Argentina, which planting strong a of ratio the the day, winter

Benjamin Klieve

bringing queue. I'll Very helpful. in see best home. all it luck That's such encouraging jump so the far, good. in fourth year Got a quarter, really back good It's to it. here

Operator

comes from question next MKM. ROTH Scott our Fortune And from

Scott Fortune

one your remarks. follow-up in Just

You called kind out of protection continuing difficulties market. in Brazil, the crop

side, get with wanted a plays process bioprotection as bit? we where that And and then little you can the the market. to Just unpack sense, U.S. out similar that a are in headwinds on

color from of X Just easing kind you're that on those on of little what and kind a standpoint. markets seeing more

Enrique López Lecube

call. Scott, board. I has would good thanks been joining longer. the has the on what question. that's Look, for everybody taking think Good have anticipated markets And you to a sharper a recovery of be

at an We remained what a some what have think of It's it's still. rates. that flat, like least not but the Brazil and is in business, cash that in little U.S., are have the probably What seeing tighter towards happening like high crops bit in kind we And anticipated. management are distributors things there of everybody than because see been heavier a inventory U.S. nuances there's different our that interest I from around more is in improvement. is our that

what usually to more gotten a like almost in has into kind of flow them just with time. be of used dynamic So

of Plus it's not Brazil, of And protection that's And part that small like the a the as than like do, are the much we directly crop slightly inventory sort companies low prices that that, are those so somewhat This levels away quarter not [Indiscernible] chemical some was where saw in collateral we storm. as of we still about it of tougher made were going like channel easier market we against but things commodity a in what so still and -- what So farmer they not anticipated some purchasing. of management. in In there people. of market. the remember meaningful usually sort did. again, that that the eye we get of were sales quarter. in think the sort the is a improving operate go last damage, after is soft, a for issues are difference that of I channel inventory market, between Both halt market to inventory it year, about which channels

Federico Trucco

Yes.

cannot fraction be of our when of First, have great stored story. even you what's in held is participants. would the Scott, microbial Bioceres' cannot and it's like to inactivating it's inventory be terms on to discussed I talk Remember instances, microorganisms What because in portfolio, the die, biologicals being industry welcome magnitude forever. formulations by we to more our call, in broadly a headwinds about some that forever this add of

inventory we inventory buildup fairly in space chemical that fertilizer frequent the luxury the in this that mitigates and are of space. So perishable part sort have of situations and commodity

to mostly of or would that the participants put things of say, to what is in the generic magnitude XX% been a have just industry. drop seen in FX experienced market. broader, talking to than single-digit about, perspective, much still XX% more lesser we're declines compared drops aging sort So put I by other -- into To the

Scott Fortune

That's helpful. color the that. I on appreciate

focus of kind of sort U.S. there. mentioned You

more more on good that of of little Just a in with of and in side, from programs color on You that? planning how to cost commercial the bit the kind color timing initiatives and expanding side kind ongoing a to the and the U.S. of on where there, margin regarding move the expansion RGC segment. kind California kind Brazil, revenue spring in the planning Profarm sidetracking that then follow-up the the on are but of provide scale HBX with you in meaningful

of forward kind U.S. the on moving kind an be would the there initiatives Just helpful. update and of

Federico Trucco

Sure.

So on Latin HBX the the front, in coming behind development. America is product U.S. of terms

have U.S. in other as we companies, for well in in in breeding with the past Stein were to we as materials this soybean We to kick but we from with together that that next the source not have expect in them the fiscal better-performing terms working the is some of something indicated genetics year. market

And year the though of in-country for yet mean, being overdue. terms to more production, in on probably before for long have production, wheat, in-country quick clearances has delivered fiscal Paraguay, can long, U.S. waiting for this is wheat I food we're is I in the such U.S. still case think approval USDA a surprising Brazil, that and GMO not market which forward 'XX. a Argentina even purposes the approved we and already feed HBX the of export

a develop So that's we working providers are with still a local variety. pending item though to even germplasm

year prevents having year 'XX visibility us things more fiscal of a 'XX and believe event, this than all soy, HBXconsidered. a in from of we So wheat in that terms fiscal is

of the initially In have amount what of aspect formulation of existing the we terms meaningful I limited of improve obviously for art U.S. XXXX profarm will using will significantly become This where the that that that to to in margins near-term formulations very the And in the be feel use are business, manner be space, growth terms we believe approved. general of the products the continue -- terms and relevant most margins, the once on treatment a be in we in MBI-XXX needs that seed because today we competitiveness seeds. in can of product loaded into mostly but expand on and the rate

of We continue on bio-innovations is like farmers own in inoculants in with mostly Syngenta, crop, other a better to the as of so everything do products. crops, names we some row more U.S. Corteva or to market our the historical sort in to, instance, offering Enrique currently which are and profarm our alluded and for in key cash of

behind that important slightly efforts even a for in our is parallel very or ahead of in market is seats in So terms one us coming Brazil biocontrol. probably terms and of in

Operator

next Capital Kemp [Operator from comes Dolliver instructions] question Brookline Our Markets. from

Brian Kemp Dolliver

Great.

So a on few of questions topics. a different couple

from slide et to First, But minus the Soy, the does for number think, the small of or that different of cetera. average is XX%, relatively like farms in information your median what much average? that shows X%, on plantations, you the performance median a given that look range I HBX have different plus

Federico Trucco

the call. joining Kemp, for thanks

and to X% where X%, locations from minus medium the the where we XX%, towards X maybe locations only similar -- to is minus and maybe think were rest bias below performance yield. had XX% between the above X%. gains double X% there average. I were We had slightly X was the general, in probably double-digit X below digit the or then par, And which average

So but reported have It's improvement until the different is yields out that the different, that too the farmers -- average from today. I as that X,XXX but of slightly significantly off number. would say X might that be XX reported hectares, X% still medium not

So it is what it is. But yes, that's the color.

Brian Kemp Dolliver

to of can that those And approval That's the cannibalize great. currently to Brazil? Shifting just you how Majestene, anything will Venerate selling? launch you're and confirm, this quickly gears in

Federico Trucco

Yes, question. that's great a

because sales we're the bioinsecticides of news. very selling a new This no, is this us for part market. is family today not products cannibalizing quickly. Brazil great the in so on deliver We can So

registrations the the have already usually gotten. I think months MAPA getting do after we approval need on take which that regional to X the dossier, we master

this also considering, some our in So go is treatment which of ready the terms where we're proprietary. channel, to applications, particularly in HBX competitive. generation high-value cost is including are crops products them seed of these And in

parties on almost terms that's of a getting So contractual program third profile environmental of internal HBX the use we the arrangement, part way in the in but today of from layout and improving to insecticidal replace general. are

too do manufactured, soybean we importantly, the to approved So part year we're seed rate but the penetrate probably already once the lower next part. substitution going because of the not first and some in broadly more hopefully, get on year, significant more been seeds treatment

Enrique López Lecube

Kemp, is this Enrique.

worth been Federico that portfolio thing replenish Inoculants offering our scope. state-level is were Just Federico said think long after a offer. sales a of we within own other big the the Brazil on just that registrations regional then -- the has our that force first, approval. waiting it Syngenta that's to one what Brazil, months have in to things I network to within like that distribution and complement registrations, mentioning What can is countrywide usually, And part X they of the that now so takes what mean we mentioned.

operational to distribution these network. is to It's is Federico of going opportunity our also the of have something network plus one. you relationships, market. And the of of an type offerings already already this platform. replenish I that That's new to deploying bringing when products. like mentioned, second, important existing it not It's an to own think launch portfolio business the to in the So comes like we the having are HBX be a within offering new it

Corteva, X own we'll have see relationships sort network. one HBXand these is of that our what to best like we path products. So distribution then on new and with One then for BXB paths is Syngenta, our the market with

Brian Kemp Dolliver

assuming and there's that there's how Brazil, -- regions in impact That's are about not and And us how business term, farmers is in to may helpful. influence you how into going harvest of you been very the go key see flooding that see you season? the planting a thinking your last commentary I'm of as but the next question short won't some may necessarily about direct significant that's one the impact

Federico Trucco

targeting is that in our leave news soy. good not that are not customers group region of Having of it's said part for that the terms that, Brazil. southern a of HBX Obviously, in we a

terms [Sarada] the to our extent some in of the in in region. region So north of HBX footprint, Mato we're and soy that Grosso

affected country. generic adjuvants into of not are some might and flat exposure or affect terms It incident revenue effect severe is on price. or by we meaningful region is part on that the significant lack total will, an So too in more the the It sell of because soybean the of hectares, probably within Parana the the sub-geography a our but you particular Brazil of Brazil. It business, Southern if we of country. in of that exposure not in geography overall to having that our

is help also which important. improve So economics, that might

Enrique López Lecube

and that Kemp, Yes. Obviously, Southern to Brazil. have color X What an a probably subregions sales. add where as states would I within like have we you is one do sort the market important are agricultural of

mentioned, are what's the come big And to that's compensate see market news is that all. Brazilian pockets the overexposure like with if like of again, we'll there's at an other don't we so case. that impact, monitoring So bad to have would there that the sort But we think force very that. Frederico I us

Operator

no further to over Trucco As I to Federico will we conclude. have hand questions, back currently

Federico Trucco

year to thanks, forward We and you, everyone, again, taking our fiscal finish third 'XX. for a Thank earnings look quarter participate call. to to time in good

lot have in markets. think double at we since a continue to the have position be of public to to we grow and inception done the done work digits, so I a in

and a additional you day today. discussed So that's something of very, we great Have rest take the great you we seriously the on few can hope up next any follow very need week. we in a days and color what with if

Bioceres Crop Solutions (BIOX) 14 May 242024 Q3 Earnings call transcript