Bioceres Crop Solutions Corp. Q1 FY2025 earnings call

• Weather Impact: Agriculture is weather-dependent; Argentina's lack of rain impacted revenues. Portfolio diversification helps, but geographic diversification needed. - Regulatory Recognitions: RinoTec bioinsecticidal platform got EPA Green Chemistry Award. HB4 soy cultivation cleared in Uruguay and Bolivia, expanding production approval footprint. - Business Strategy: Transitioning HB4 seed business from identity preserve to conventional sales, partnering with seed industry. Focus on working capital management and cash generation. Syngenta agreement performance discussed, with more even distribution of profit sharing.

Total revenues in the quarter were $93.3 million, 20% below the year ago quarter. Crop Nutrition segment: Primarily driven by lower sales of micro-bead fertilizers in Argentina due to corn acreage shift to soybeans, contributing over half of top line decrease and almost all gross profit change. Crop Protection segment: Sales affected by slow Argentine market, but US, Brazil, and Mexico had good sales with proprietary high margin biocontrol products. Seed & Integrated Products segment: Revenue down due to lower HB4 grain downstream sales, gross profit declined by 14% mainly from grain sales and seed treatment pack margin decline.

• Expectations for Argentina's crop season to improve with recent rainfall. - HB4 seed business transition work in progress, expecting more specific info soon. - Goal to turn from negative to positive cash generation for the year.

• Weather dependence affecting revenues. - Market dynamics in Argentina, especially with corn-soybean acreage shifts. - Risks related to working capital management and cash conversion cycles.

Q: Ben Klieve asked about market in Argentina and Syngenta agreement seasonality.

A: Enrique and Federico discussed delayed purchasing, seasonality of Syngenta agreement.

Q: Kristen Owen asked about spending cycles and HB4 transition.

A: Enrique and Federico talked about farmer sentiment, HB4 transition progress.

Q: Kemp Dolliver asked about cash flow and HB4 year-over-year.

A: Enrique and Federico discussed working capital, DSO, and HB4 downstream sales.

Q: Andrew Steinhardt asked about HB4 distribution partner and commodity/interest rates.

A: Federico discussed HB4 partner update and factors affecting core markets.