Bioceres Crop Solutions Corp. Q3 FY2025 earnings call

• Cash flow performance: $23.3 million in net cash from operating activities, a $40.7 million improvement year-over-year. Seed business strategy shift: Impacting cash flow and focus; soybean harvest in Argentina delayed by 1 month, HB4 materials transfer to multipliers, Verdeca GDM collaboration progress, regional partner activities in Uruguay/Paraguay/Brazil. Reorganizational process: 68% reduction in payroll, $1 million pre-commercial royalties from Australia deal, exchange of noncore traits/IP. RinoTec: EPA approved, with registrations in US and Brazil, targeting conventional acreage with multiple brands, aiming to double Crop Protection platform growth over 3-5 years.

Crop Protection: Revenues decreased, fully driven by lower sales of noncore products in Argentina, partially offset by higher sales of bioprotection solutions. Seed & Integrated Products: Revenues increased by 26%, primarily from accelerated sales of HB4 grain from existing inventory. Crop Nutrition: Primarily shaped by the impact from the Syngenta down payment; excluding that effect, underlying operational inoculant sales were up, slightly offset by Argentine seasonality effect on fertilizers. Revenue contribution details: Total revenues were $60.6 million, down from $84 million last year.

• Enrique mentioned expecting additional $10 million from working capital transition and aiming for EBITDA margins to trend back up to high-40s/low-50s, with working capital around 4-4.5 months of sales. Milen indicated RinoTec could double the growth of the Crop Protection platform over the next 3 to 5 years.

• Macroeconomic uncertainties in Argentina and other geographies. Political volatility including tariffs in US and other markets. Weather conditions affecting crop yields. Competitive landscape in the agricultural solutions space.

Q: Kristen Owen from Oppenheimer asked about remaining grain inventories and EBITDA to free cash flow conversion, and on-the-ground sentiment in Argentina.

A: Enrique said about $10 million more working capital unwind to come from HB4 transition, aiming for 4-4.5 months working capital, and on Argentina sentiment, stable macroeconomic conditions, normalizing market, reduced export tax duties, good winter crop season.

Q: Benjamin Klieve from Lake Street Capital Markets asked about nonoperating income payment cash component and drivers for fiscal '26.

A: Enrique said the $7.5 million nonoperating income payment was primarily noncash. Milen mentioned focusing on Argentina, scaling biologicals portfolio, B2B and seed treatment capability, and UBP platform.

Q: Austin Moeller from Canaccord asked about credit conditions in Brazil and US affecting input procurement.

A: Enrique said not affected by Brazil credit tightening much, offset by tariff effects; on US, not counting on interest rate reduction for growth but it helps offset volatility.

Q: Steve Byrne from Bank of America asked about Neovo product field trials and partnerships.

A: Milen said ongoing replicated third-party field trials, working with strategic and channel partners, focusing on refining fit in conventional IPM spray programs.

Q: Kemp Dolliver from Brookline Capital Markets asked about RinoTec doubling Crop Protection platform growth.

A: Milen said steady growth in flagship portfolio with RinoTec potentially doubling revenue over 5-7 years in biocontrol alone, depending on partnership finalization and focus.