Bioceres Crop Solutions Corp. Q4 FY2024 earnings call

• Fiscal 2024 had record high revenue ($464.8 million) and EBITDA ($81.4 million).
• HB4 was instrumental in topline growth, with almost half of the quarter's revenue improvement from HB4 sales.
• Recent USDA APHIS note allows HB4 Wheat to move forward with field activities for product development and commercialization.
• Organizational changes in key leadership positions in the US and Brazil to accelerate growth in key markets.
• Focus on cash generation and profit expansion in 2025, particularly for HB4 soy by partnering with strategic genetic providers.
• Continued investment in development and registration of biocontrol solutions, including bioinsecticides in Brazil and MBI306 platform in the US.

Seed & Integrated products: In the quarter, it contributed almost two-thirds of the roughly $20 million quarterly revenue increase. For the full year, it had a 70% growth. Crop Protection: Grew 18% in the quarter with improved margins due to higher bioprotection sales. Full year had a 10% overall sales increase. Crop Nutrition: Tough quarter with micro-beaded fertilizers sales down, but inoculant and biostimulants grew. Full year decreased by 10% mainly due to lower Syngenta down payment. Revenue contribution percentages weren't explicitly stated in exact figures but the breakdown by segments was detailed in the transcript.

• Adjusted HB4 soy expectations for fiscal 2025, stating it will take 1-2 more years to achieve previous guidance due to need for portfolio depth and validation under new business model.
• Focus on cash generation and profit expansion in all businesses, especially HB4.
• Intend to pivot to a more capital-efficient and profitable business model for HB4, seeking partnerships with genetic providers to fast-track growth.

• On-farm economics decline in key crops and geographies, affecting purchasing power of end users.
• Uncertainties in HB4 commercialization, including challenges in the transition to a more conventional business model.
• Weather impacts on crop areas, such as corn leafhopper effect leading to lower corn acreage in Argentina and softer demand for fertilizers.
• Market conditions like inventory destocking and generics affecting traditional crop chemical businesses, though biologicals are somewhat insulated but still face challenges.

Q: Ben Klieve asked about HB4 wheat performance in the quarter and what changed from the third quarter call.

A: Federico Trucco explained that the third quarter guidance was based on early indications from recurring customers, but the multiplier and farmer adoption of conventional sales took longer than expected, leading to the quarter's results not meeting full expectations.

Q: Ben Klieve also asked about the Board's philosophy given HB4 challenges.

A: Federico Trucco stated the Board recognizes the need to pivot from the previous business model to a more conventional one, focusing on capital efficiency and working capital allocation.

Q: Kristen Owen asked about biologicals trends and new leadership.

A: Federico Trucco said biologicals are differentiated from traditional chemicals due to expiration dates and inventory management, and new leadership will help strengthen sales and develop combinatorial products. Enrique Lopez Lecube added on opportunities in Brazil and Mexico for biologicals.

Q: Kemp Dolliver asked about market mix impact and Syngenta agreement.

A: Federico Trucco discussed mixed impacts of crop area shifts, and Enrique Lopez Lecube mentioned focusing on profits over revenues with the Syngenta agreement.

Q: Austin Moeller asked about biofungicides regions and Syngenta agreement ramp.

A: Federico Trucco mentioned Europe as a key market for biofungicides, and Enrique Lopez Lecube talked about navigating the Syngenta agreement for profit growth.

Q: Scott Fortune asked about US HB4 Wheat timeline and profitability focus.

A: Federico Trucco discussed the timeline for US HB4 Wheat and Enrique Lopez Lecube spoke about joint efforts on cash generation and profit expansion from both HB4 and biologicals initiatives