Group 1 - Bioceres (BIOX) reported seasonally light results for Q3 2025, indicating a challenging financial and liquidity situation [1] - The core market of Argentina is not showing signs of recovery, which is a concern for the company's future performance [1] - The absence of Syngenta payments and the presence of HB4 inventories are contributing factors to the company's difficulties [1] Group 2 - The investment approach focuses on operational aspects and long-term earnings power rather than market-driven dynamics [1] - The strategy emphasizes holding companies for the long term, with most recommendations being holds rather than buys [1]

Company Performance - Bioceres Crop reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.10, and compared to earnings of $0.14 per share a year ago, indicating an earnings surprise of 80% [1] - The company posted revenues of $59.6 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.56%, and down from $83.98 million year-over-year [2] - Over the last four quarters, Bioceres Crop has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Bioceres Crop shares have declined approximately 23.5% since the beginning of the year, while the S&P 500 has gained 1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $116 million, and for the current fiscal year, it is -$0.06 on revenues of $377.8 million [7] Industry Outlook - The Agriculture - Operations industry, to which Bioceres Crop belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Bioceres Crop's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenues for the quarter were $60.6 million, down from $84 million in the same period last year, primarily due to the absence of a significant accrual from Syngenta's initial down payment [9][10] - Gross profit decreased to $24 million from $42.6 million year-over-year, with gross margin declining from 51% to 39% due to the previous year's accrual effect [14][15] - Adjusted EBITDA for the quarter was $9 million, down from $21.1 million last year, reflecting the impact of the Syngenta down payment accrual [17][18] - Cash from operating activities improved significantly to $23.3 million, a $40.7 million increase compared to the prior year's cash requirement of $17 million [20][21] - Total debt decreased by $13 million, leading to a leverage ratio of 4.1 at the end of the quarter [23] Business Line Data and Key Metrics Changes - Crop Protection revenues decreased due to lower sales of non-core products in Argentina, partially offset by higher sales of bioprotection solutions [14] - Integrated Products revenues increased by 26%, driven by accelerated sales of HB4 grain from existing inventory [14] - Inoculant sales showed underlying operational growth, slightly offset by seasonal effects on fertilizers [14] Market Data and Key Metrics Changes - The Argentine market experienced reduced commercial activity, with purchasing behavior becoming more aligned with the agronomic calendar rather than speculative patterns [10][11] - The U.S. and Mexico markets showed good growth, indicating early signs of recovery, while Brazil remained in a low season with positive sentiment due to improved soybean prices [12][13] - Overall, the performance in Argentina was not indicative of market status, with expectations for better conditions in the upcoming summer crop season [12][13] Company Strategy and Development Direction - The company is transitioning to a more sustainable agricultural model, focusing on cash flow performance and working capital efficiency [6][20] - The long-awaited EPA approval of Rhinotech allows the company to offer a full suite of biological solutions for pest control and plant health [6] - The company aims to reduce reliance on the Argentine market, targeting growth in Brazil, the U.S., and Europe [70] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the Argentine market, noting improved macroeconomic conditions and stable farmer sentiment [51][52] - The company anticipates a healthy winter crop season in Argentina, with expectations for a stronger summer crop season [52][53] - Management highlighted the importance of maintaining operational excellence and leveraging technology platforms for future growth [60][70] Other Important Information - The company has implemented a significant reduction in payroll and structural costs, resulting in annualized savings of approximately $5 million [28] - The Rhinotech platform is positioned for a prelaunch year in 2025, with registrations ongoing in key markets [30][31] Q&A Session Summary Question: Inquiry about cash advancement and working capital unwind - Management indicated an expected additional $10 million from the transition to a lighter model with HB4, aiming for a return to historical net working capital levels of four to four and a half months of sales [44][45] Question: Sentiment in Argentina and macroeconomic conditions - Management noted that sentiment in Argentina is slowly building up, with stable macroeconomic conditions leading to normalized purchasing behavior [50][51] Question: Non-operating income payment details - The $7.5 million non-operating income payment was primarily non-cash, involving an exchange of IP and intangible assets [65] Question: Field trial results for Neovil product - Management confirmed ongoing replicated third-party field trials for Neovil, with positive feedback from strategic and channel partners [94] Question: Interest in HB4 traits from seed companies - Management confirmed ongoing collaboration with public and private institutions for HB4 wheat in the U.S., with a focus on Latin America for HB4 soybeans [97][98]

Fiscal Third Quarter 2025 May / 2025 BIOCERES CROP SOLUTIONS Disclaimer Industry and Market Data This Presentation is for informational purposes only and does not constitute an offer or invitation to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, assets, business, debt or other financial instruments of the Company or any of its affiliates, and shall not form the basis of any contract, nor shall it be construed in any manner as a commitment on the part of any person to p ...

Financial Performance - Total revenues in Q2 2025 were $106.7 million, a 24% decline from the record $140.2 million in Q2 2024, primarily due to market contraction in Argentina[5] - Net income for Q2 2025 was $0.6 million, with Adjusted EBITDA at $15.4 million, reflecting a 36% decrease from $24.1 million in Q2 2024[12] - Crop Protection revenues fell to $55.2 million, down 23% year-over-year, while Seed and Integrated Products revenues decreased by 28% to $23.3 million[15] - Gross profit for Q2 2025 was $45.1 million, a 12% decline from $51.5 million in Q2 2024, but gross margin improved from 37% to 42%[20] - Net Income for 2Q25 was $0.6 million, a decline of 50% compared to $1.2 million in 2Q24, primarily due to lower operating profit and revenues[27] - Adjusted EBITDA decreased to $15.4 million in 2Q25 from $24.1 million in 2Q24, reflecting reduced gross profit in Crop Protection and negative impacts from joint ventures[28] - Total revenues from contracts with customers fell to $106.8 million in 2Q25, down from $140.3 million in 2Q24, indicating a significant revenue decline[45] - Gross profit margin improved to 42% in 2Q25 from 37% in 2Q24, despite lower overall gross profit[45] - The first half of FY25 revenues declined by 22% compared to the previous year, but the company did not lose market share[12] Strategic Changes - The company is exiting breeding and seed production to focus on trait development and partnerships, including an alliance with GDM for soybean solutions[5] - The strategic pivot in the seed business aims to enhance profitability and cash flows while transitioning to a more asset-light model[10] - The company is focused on expanding its biotech platform and developing next-generation Crop Nutrition and Protection solutions[34] Expenses and Liabilities - SG&A expenses increased by 6% to $33.2 million, primarily due to higher costs in Argentina related to macroeconomic conditions[25] - Research and Development expenses increased to $4.2 million in 2Q25 from $3.6 million in 2Q24, highlighting a focus on innovation[26] - Total financial results were stable at $7.5 million in 2Q25, with interest expenses rising by 68% to $5.5 million due to higher debt and market interest rates[29] - Total debt increased from $223 million in 2023 to $238.3 million in 2024, with short-term debt rising to $119.2 million[30] - The company reported a loss of $5.6 million for the first half of 2025, compared to a loss of $1.4 million in the first half of 2024[44] - Share-based compensation charges decreased to $1.6 million in 2Q25 from $2.3 million in 2Q24, reflecting cost management efforts[44] Asset and Equity Overview - Total current assets amounted to $383.7 million, a decrease from $408.7 million[46] - Total liabilities were reported at $489.2 million, compared to $501.2 million in the previous period[46] - Non-current liabilities totaled $200.4 million, down from $171.9 million[46] - The company's equity attributable to owners of the parent was $309.4 million, slightly down from $315.0 million[46] - Cash equivalents stood at $29.2 million, a decrease from $44.5 million[46] - Financial assets receivable decreased to $1.7 million from $2.2 million, reflecting a decline of 22.7%[46] - The company reported total assets of $835.2 million, down from $852.5 million[46] - Current liabilities were reported at $288.8 million, compared to $329.3 million previously[46] - The company’s total revenue from operations was $5.9 million, an increase from $4.8 million, showing a growth of 22.9%[46]

Group 1 - Bioceres Crop Solutions Corp. reported a 24% decline in revenues for Q2 2025, primarily due to weakness in its main market, Argentina [1] - While international sales showed improvement, they were insufficient to offset the losses from the domestic market [1] Group 2 - The company operates with a long-only investment strategy, focusing on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The analysis emphasizes a cautious approach, suggesting that only a small fraction of companies should be considered for buying at any given time [1]

Financial Data and Key Metrics Changes - Company reported total revenues of $106 million for the quarter, a decline of 24% compared to the same quarter last year [7][12] - Gross margin improved from 37% to 42%, indicating better profitability despite lower revenues [28] - Adjusted EBITDA for the quarter was $15.4 million, down from approximately $24 million in the previous year [33] Business Line Data and Key Metrics Changes - **Crop Protection**: Revenues fell from $71 million to over $55 million, primarily due to performance in Argentina, with a year-to-date decline of 20% [17][18] - **Crop Nutrition**: Sales were $28 million in the second quarter, with declines attributed to micro-beaded fertilizer sales in Argentina [22] - **Seed & Integrated Products**: Revenue decline was anticipated due to strategic decisions, with growth in seed treatment solutions driven by increased soybean acreage [25][26] Market Data and Key Metrics Changes - The Argentine market faced significant challenges, with lower commodity prices and reduced farmer income impacting purchasing capacity [13][14] - Sales outside of Argentina grew during the first half, indicating successful geographic diversification [16] Company Strategy and Development Direction - The company is transitioning to a more capital-light business model by exiting breeding, seed production, and commercialization, opting to partner with established seed companies [9] - New agreements with GDM for soybeans and a revised partnership with Florimond Desprez for wheat were announced [10][46] - The focus is on enhancing cash generation and improving capital allocation while navigating market volatility [39][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the Argentine market as temporary and expressed optimism about mid to long-term prospects [38] - The company aims to capitalize on its unique technology portfolio and is focused on cost efficiencies and transitioning to a more asset-light model [39][40] Other Important Information - Total net debt increased to $238 million, with a leverage ratio of 3.3 turns, above the target threshold [36] - Inventory levels were 18% lower than the previous year, reflecting tighter inventory management policies [37] Q&A Session Summary Question: Transition in the seed business and its economic implications - Management indicated that transitioning to partnerships will improve cost structure and generate royalties, with significant results expected in two to three years [54][60] Question: Impact on the balance sheet from the transition - The strategic pivot will free up working capital and reduce SG&A expenses, with cash expected to return to the balance sheet from grain inventory divestments [60] Question: Focus on biologicals and new trait development - The company is prioritizing biologicals due to lower development costs and plans to partner for new seed technologies rather than conducting research in-house [64][66] Question: R&D platform and solutions for South American crops - Management is exploring solutions for challenges like target spot in soybeans and corn stunt, leveraging partnerships for gene editing and biological alternatives [68][72] Question: Expectations for OpEx and cost savings - A meaningful reduction in OpEx is anticipated in the coming quarters, with a focus on adjusting the cost structure across the business [82] Question: Revenue from non-core products - Non-core products account for approximately 25% to 30% of revenues, with a focus on maintaining high-margin products while reducing lower-margin offerings [95][99] Question: Cash balance and capital needs - The current cash balance of $29 million is deemed sufficient to support the revised business strategy without immediate capital raising needs [112] Question: Deconsolidation of revenue with new agreements - Revenue from new partnerships will depend on the structure of agreements, with royalties expected to contribute to the top line [120] Question: Inventory decline contributions - Both grain sales and tighter inventory management contributed to the decline in inventories, with both factors being significant [124]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $106 million, a decline of 24% compared to the same quarter last year [7][12] - Gross margin improved from 37% to 42%, despite the drop in revenues [28] - Adjusted EBITDA for the quarter reached $15.4 million, down from approximately $24 million in the year-ago quarter [33] Business Line Data and Key Metrics Changes - **Crop Protection**: Revenues fell from $71 million to over $55 million, primarily due to performance in Argentina, with a year-to-date decline of 20% [17][18] - **Crop Nutrition**: Sales were $28 million in Q2, with declines attributed to micro-beaded fertilizer sales in Argentina [22][23] - **Seed & Integrated Products**: Revenue decline was anticipated due to strategic decisions, with growth in seed treatment solutions driven by soybean-based treatments [25][26] Market Data and Key Metrics Changes - The Argentine market faced significant challenges, with lower commodity prices and reduced farmer income impacting purchasing capacity [13][14] - Sales outside of Argentina grew during the first half, indicating progress in geographic diversification [16] Company Strategy and Development Direction - The company is transitioning to a more capital-light business model and exiting breeding, seed production, and commercialization, opting to partner with established seed companies [9][10] - A new agreement with GDM for soybean development and a revised partnership with Florimond Desprez for wheat were announced [10][46] - The focus is on enhancing profitability and cash flows while navigating market volatility [39][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the Argentine market as temporary and expressed optimism about mid to long-term prospects [38] - The strategic repositioning of the seed business and tighter inventory management are seen as initial steps to address short-term challenges [40] Other Important Information - Total net debt at quarter-end stood at $238 million, with a leverage ratio of 3.3 turns, above the target threshold [36] - The company is implementing a tighter inventory management policy, resulting in inventory levels being 18% lower than last year [37] Q&A Session Summary Question: Transition in the seed business and its economic implications - Management indicated that transitioning existing channels to key customers will improve cost structure and generate royalties over the next two to three years [54][60] Question: Impact on the balance sheet from the transition - The strategic pivoting is expected to free up working capital and reduce SG&A expenses, with cash returning to the balance sheet from grain inventory divestments [60][61] Question: Focus on biologicals and new trait development - The company is prioritizing biologicals where development costs are lower, while still pursuing incremental technologies through partnerships [64][66] Question: R&D platform and solutions for South American crops - Management is exploring solutions for challenges like target spot in soybeans and corn stunt, leveraging partnerships for regulatory clearances [68][72] Question: Expectations for OpEx related to the seed business - A meaningful reduction in OpEx is anticipated in the coming quarters, alongside a focus on stabilizing EBITDA margins [82][84] Question: Revenue from non-core third-party products - Non-core products account for approximately 25% to 30% of revenues, with a focus on maintaining high-margin products while reducing lower-margin offerings [95][99] Question: Cash balance and capital needs - The current cash balance of $29 million is deemed sufficient to support the revised business strategy without immediate capital raising needs [111][112] Question: Deconsolidation of revenue with new agreements - Revenue from new partnerships will depend on the structure of agreements, with royalties expected to contribute to the top line [120][121] Question: Inventory decline contributions - Both grain sales and tighter inventory management contributed to the decline in inventories, with both factors being equally significant [124][126]

Disclaimer Industry and Market Data This Presentation is for informational purposes only and does not constitute an offer or invitation to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, assets, business, debt or other financial instruments of the Company or any of its affiliates, and shall not form the basis of any contract, nor shall it be construed in any manner as a commitment on the part of any person to proceed with any transaction. Any reproduction of this Present ...

Financial Performance - Revenues from contracts with customers increased to $464.83 million for the year ended June 30, 2024, up from $419.45 million in 2023, representing an increase of 10.4%[28]. - Operating profit decreased to $44.82 million in 2024 from $54.18 million in 2023, a decline of 17.2%[28]. - Profit for the year attributable to equity holders of the parent was $3.24 million in 2024, down from $18.78 million in 2023, a decrease of 82.8%[28]. - Basic profit per share attributable to ordinary equity holders of the parent was $0.0516 in 2024, compared to $0.3022 in 2023, a decline of 82.9%[28]. - Total comprehensive profit for the year was $5.47 million in 2024, down from $19.34 million in 2023, a decrease of 71.7%[30]. - The company reported a profit before income tax of $10.04 million in 2024, down from $19.11 million in 2023, a decrease of 47.5%[28]. - For the fiscal year ending June 30, 2024, the profit for the year was $6,256,656, a decrease from $20,174,599 in 2023[38]. Assets and Liabilities - Total assets increased to $850.63 million as of June 30, 2024, compared to $818.06 million in 2023, reflecting a growth of 4%[22]. - Trade receivables rose significantly to $207.32 million in 2024, up from $158.01 million in 2023, marking a 31% increase[22]. - Current liabilities increased to $329.51 million in 2024, compared to $298.71 million in 2023, representing a growth of 10%[25]. - Total liabilities rose to $501.06 million in 2024, up from $487.56 million in 2023, indicating a growth of 3%[25]. - Equity attributable to owners of the parent increased to $314.01 million in 2024, up from $298.59 million in 2023, indicating a growth of 5%[25]. - Goodwill associated with cash-generating units amounted to $112.34 million as of June 30, 2024, slightly up from $112.16 million in 2023[15]. - Deferred tax assets increased to $9.70 million in 2024, compared to $7.31 million in 2023, reflecting a growth of 33%[22]. - The company’s inventories decreased to $125.93 million in 2024 from $140.43 million in 2023, a decline of 10%[22]. - Non-controlling interest increased to $35.56 million in 2024, compared to $31.90 million in 2023, representing a growth of 12%[25]. Cash Flow and Investments - Net cash flows generated by operating activities for 2024 were $41,716,586, a substantial increase from $2,588,792 in 2023[38]. - Total cash flows used in investing activities amounted to $(28,728,255), compared to $(25,725,670) in the previous year, indicating increased investment outflows[41]. - Net cash flows used in financing activities were $(10,055,867), contrasting with a net inflow of $32,954,000 in the prior year, indicating a shift in financing strategy[41]. - Cash and cash equivalents at the end of the year decreased to $44,473,270 from $48,129,194, reflecting a reduction in liquidity[41]. - Proceeds from borrowings rose to $135,818,247, up from $79,817,888 in the previous year, reflecting a strong financing activity[41]. Research and Development - Research and development expenses increased to $17.18 million in 2024 from $15.35 million in 2023, an increase of 11.9%[28]. - The company reported a significant increase in capitalized development expenditures to $(11,855,766) from $(10,753,047) year-over-year, highlighting ongoing investment in R&D[41]. - The research and development process for seed traits includes six phases: discovery, proof of concept, early development, advanced development and deregulation, pre-launch, and product launch[149][150][151][152][153][154]. Business Operations and Strategy - The company operates in over 45 countries, primarily in South America, the United States, and Europe, showcasing its extensive market reach[45]. - Bioceres has established a global commercial strategy following the merger with Pro Farm, aiming to unify pricing policies for its products[57]. - The Group acquired a controlling interest in Pro Farm Group Inc. on July 12, 2022, and in Natal Agro S.R.L. on June 1, 2024[71][72]. - The Group's subsidiary, Bioceres Crops S.A., has a 90% equity interest, while Rizobacter USA, LLC and other subsidiaries maintain an 80% equity interest[70]. Financial Reporting and Standards - The Group's financial statements reflect the adoption of new standards and amendments, including IAS 12 and IAS 1, which did not have a material impact on the Group[76][79]. - The Group is currently analyzing the potential impact of new IFRS standards effective in 2024 and beyond on its financial statements[81]. - The Group employs the "Predecessor value method" for business combinations under common control, accounting for acquired assets and liabilities at existing carrying values[101]. Share-Based Payments and Equity - Share-based incentives and stock options accounted for $14,134,885 in 2024, up from $3,415,108 in 2023[38]. - The fair value of equity-settled share-based payment transactions is measured at grant date using the Black-Scholes formula, considering the potential dilutive effect of future share options[193]. - As of June 30, 2024, the total consideration for shares issued was $156,444, which includes 154,795 shares, 1,620 assumed RSUs and stock options, and $29 in cash payments[196]. Impairment and Valuation - Impairment tests on goodwill and intangible assets are conducted annually, with impairment losses recognized in profit or loss, and goodwill impairment losses are not reversible[106]. - The Group's property valuation relies on independent appraisals and market conditions, with significant assumptions affecting the determination of fair value[130]. - The Group assesses impairment indicators for investments in joint ventures and performs recoverability analyses based on cash flow projections[120].