Bioceres Crop Solutions Corp. Q1 FY2026 earnings call

• Despite a 17% revenue decline from the prior year, gross profit remained almost equal at $36 million with a 650 basis points gross margin expansion. • Cost reduction initiatives and business model transition led to significant variable and fixed SG&A declines, improving operating profits and adjusted EBITDA. • Progress on priorities: operating above 40% gross margin, working capital close to 4 months target, adjusted EBITDA above 20% of sales, and SG&A savings achieving 50% of annual target in one quarter.

Total revenues for the quarter were $77.5 million, a 17% decline versus the same period last year. By segment: Crop Protection revenues were $39.9 million, a 16% decline; gross profit was $17.6 million, a 5% decrease with gross margin improving from 39% to 44%. Seed and Integrated Products revenues were $12.6 million, a 37% decline; gross profit was $7.5 million, slightly higher than last year with segment margin expanding from 36% to 60%. Crop Nutrition revenues were $25.1 million, broadly in line with last year; gross profit was $11.1 million, a 6% decline with gross margin decreasing from 46% to 44%.

• The company is undergoing a dispute with holders of its secured convertible and nonconvertible notes, resulting in showing noncurrent debt portion as current and including prepayment fees under an acceleration event. • All principal and interest payments remain current, but the company is actively managing liquidity and debt maturities.

Q: There's been some discussion of higher beef imports to the U.S. from Argentina. And now that the election is over, is there any potential for either raw crops or inputs like fertilizers and pesticides to be imported from Argentina into the U.S., which would either create demand for your farmers or for you?

A: We've seen sort of the news as well and beef production, milk production in Argentina are booming currently. So profitability is probably at an all-time high. I think the news about U.S. imports or exports from Argentina to the U.S. are obviously further fortifying that process. In terms of ag inputs, I think also that Argentina being classified on the low tariff end, if you will, on the current trade situation is a benefit to us when we are trying to serve that market from Argentine-manufactured ag input products. Remember that we also hold manufacturing capacity in the U.S. So we are manufacturing most of our bioprotection solutions in-country in the U.S. So that has also been beneficial for us in addressing that particular market.

Q: The previous quarter, we had discussed that the company expected some Corteva sales of biopesticides into Europe would likely fall into Q1. How is that playing out with relative to what you expected?

A: So we currently don't have bioprotection products registered in Europe. What we do have is the biostimulant package where Corteva is our main customer in Europe. And we've basically historically had a very significant contribution from Europe in the last quarter of each fiscal year, which we didn't see last quarter and we have only achieved some marginal sales of biostimulants in Europe in the current quarter. I think most of the biostimulant improvement has been in Argentina and Latin America, as Paula alluded to in the call. And the Corteva Europe sales are due to come later in the year.