Bioceres (BIOX) Q4 2026 Earnings Call Transcript

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DATE

Tuesday, Sept. 15, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

• Head of Investor Relations - Maria Paula Savanti
• Chief Executive Officer - Federico Trucco
• Chief Financial Officer - Ezequiel Simmermacher

TAKEAWAYS

• Full-Year Revenue -- $238 million, representing an 18% decline driven by the seed business reconfiguration and lower performance in crop protection.
• Quarterly Revenue -- $55.9 million, compared to $55.4 million in the fourth quarter of fiscal 2025.
• Crop Nutrition Revenue -- 36% growth during the fourth quarter, reflecting strong demand for microbeaded fertilizer products.
• Quarterly Adjusted EBITDA -- $600,000, improving from a negative $9.6 million loss due to a 19% reduction in SG&A expenses.
• Full-Year Adjusted EBITDA -- $25.5 million, a 12% decrease from $28.9 million in the prior fiscal year.
• Quarterly Gross Profit -- $12.7 million, down 6% year over year and impacted by a $4 million nonrecurring inventory adjustment for obsolescence.
• Full-Year Operating Expenses -- Improved by more than $20 million, which substantially offset the $22 million decline in reported gross profit.
• Total Financial Debt -- $225.9 million as of June 30, including $118.6 million in secured notes that remain classified as short term due to ongoing disputes.
• Net Financial Debt -- $213.6 million, with the company maintaining cash and short-term investments of $12.2 million.
• Debt Reprofiling -- $28 million in bank debt and $46.5 million in local bond debt in Argentina were successfully restructured to extend the maturity schedule.
• Future Gross Margin Target -- 40% for fiscal 2027 and beyond, supported by a focus on high-quality core revenue streams in Brazil.
• SG&A Expense Target -- 23% of total revenue by fiscal 2028, to be achieved through organizational simplification and new systems implementation.
• SKU Rationalization -- 99% of fiscal 2025 aggregated gross profit resulted from fewer than 50% of the SKUs in the product catalog.
• Seed Treatment Packs -- 40% growth in gross profit during the fourth quarter, providing a offset to the broader seed business transition.
• Microbeaded Fertilizer Gross Profit -- 20% increase for the full year, driven by higher revenues and improved margins within the Crop Nutrition segment.
• Quarterly Gross Margin -- 22.8%, compared to 34.8% for the full fiscal year.

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RISKS

• Trucco stated, "Fiscal 26 was a challenging year for Bioceres. Marked by the ongoing litigation with certain of our creditors and the business consequences emanating from these disputes," reflecting impact on total revenues.
• Simmermacher noted that $118.6 million in secured notes remain classified as short term following a noteholder dispute and acceleration notice, which the company continues to contest.

SUMMARY

Bioceres Crop Solutions Corp. (NASDAQ:BIOX) reported a transition year as it concluded a two-year reconfiguration of its seed business and addressed financial pressures related to creditor litigation. Management stated that while annual revenue declined 18% to $238 million, cost-reduction initiatives totaling over $20 million in operating expense savings helped stabilize adjusted EBITDA. The company indicated it is moving toward a leaner operating structure by rationalizing its product portfolio and focusing on high-margin products in core markets like Brazil.

• CEO Trucco noted that commercial operations in Argentina have "mostly stabilized" following the successful reprofiling of local debt obligations at the start of the fourth quarter.
• The company completed a strategic assessment that identified a road map for portfolio rationalization and the alignment of R&D investments with defined financial objectives.
• Management is targeting a simplified organizational structure involving fewer legal entities and streamlined processes to reach a 23% SG&A-to-revenue ratio by fiscal 2028.
• CFO Simmermacher stated that underlying business performance showed improvement across core categories despite nonrecurring inventory charges impacting reported fourth quarter margins.
• The company continues to pursue legal alternatives regarding the acceleration of $118.6 million in secured notes and the associated foreclosure process in New York.

INDUSTRY GLOSSARY

• Adjusted EBITDA: A non-GAAP financial measure that excludes certain non-cash and non-recurring items to assess operating performance.
• HB4: A proprietary seed technology developed by Bioceres for drought resistance in crops like wheat and soy.
• Inoculants: Biological products containing beneficial microorganisms applied to seeds or soil to improve plant health and nutrient uptake.
• Microbeaded Fertilizer: Specialized granular fertilizers designed for precise application and improved nutrient efficiency.
• Rizoderma: A biological fungicide used for seed treatment to protect against soil-borne diseases.
• SKU: Stock Keeping Unit, a unique identifier for each distinct product and service that can be purchased.
• SG&A: Selling, General, and Administrative expenses, representing the daily operating costs of running a business.

Full Conference Call Transcript

Operator: Everyone. Thank you for joining us, and welcome to the Bioceres Crop Solutions fiscal fourth quarter and full year 2026 Financial Results Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press *1 to raise your hand, To withdraw your question, press *1 again. I will now hand the conference over to Maria Paula Savanti, Head of Investor Relations. Paola, please go ahead.

Maria Paula Savanti: Good morning, and thank you. Welcome, everybody, to Bioceres Crop Solutions Fourth Fiscal Quarter and Full Year 2026 Earnings Conference Call. Our prepared remarks today will be led by our Chief Executive Officer, Federico Trucco; our Chief Financial Officer, Ezequiel Simmermacher. Both of them will be available for the Q&A session following the presentation. During this call, we will be making forward looking statements. These statements are based on current expectations and assumptions. That are subject to various risks and uncertainties. I refer you to the forward looking statements section of the earnings release and presentation, as well as the recent filings with the SEC.

We assume no obligation to update or revise any forward looking statements to reflect new or changed circumstances. In today's presentation, we will be making references to certain non GAAP financial measures. Reconciliations of the non GAAP measures can be found in our earnings press release. The conference call is being webcast, and the link is available at our Investor Relations website. It is now my pleasure to turn over the call to Federico.

Federico Trucco: Thanks, Paola, and thank you, everyone, for joining us today. Good morning. Please turn to slide number 3 for today's highlights. Fiscal 26 was a challenging year for Bioceres. Marked by the ongoing litigation with certain of our creditors and the business consequences emanating from these disputes. Revenues from our continuing operations declined by 18%, with its consequential decline in gross profits and adjusted EBITDA. Excluding changes associated towards new seed business strategy, the decline in revenues has been most significant in our international business. But in Argentina, our commercial operations have mostly stabilized. In part because of the successful reprofiling of our local debt obligations towards the beginning of the fourth quarter.

Against that backdrop, our priorities have been to focus the business on our core capabilities reduced our cost structure, and strengthen operating discipline. Fourth quarter results provide encouraging evidence of progress. Revenues from continuing operations were broadly stable year over year, with improved performance across several of our core product categories. At the same time, the cost actions implemented throughout the year resulted in a materially lower expense base. Allowing us to return to positive adjusted EBITDA in the quarter. Ezekiel will now review our financial performance for the quarter and the full year. I will then return to discuss our outlook towards the end of today's call. Ezequiel?

Ezequiel Simmermacher: Thank you, Federico, and good morning, everyone. Before I begin, I want to remind everyone that unless otherwise indicated, the result I will discuss today reflects our continuing operation for all periods presented. Prior year amount have been recast to exclude Pro Farm Group and are presented on a comparable basis. With that, let's turn to Slide 4 and our revenue performance. Revenues for the fourth quarter were $55.9 million slightly above the $55.4 million the prior year. The main source of growth during this quarter came from the Crop Nutrition segment increasing by 36% year over year mainly as a result of a strong performance in microbeaded fertilizer.

This increase was offset by lower revenues in crop protection and in seeds. For the full year revenues, declined 18% to $238 million approximately half of that decline was associated with the before-mentioned seed business reconfiguration. Most of the reminding decline was in crop protection, while crop nutrition revenues were broadly stable for the year. Within crop nutrition, the strong performance of microbeated fertilizer was offset by lower inoculant revenue. Moving to gross profit, let's turn to Slide 5. Reported gross profit for the quarter was $12.7 million down 6%, with gross margin of 22.8%. There are a few important factors behind those reported number.

First, the quarter included approximately $4 million of nonrecurring inventory adjustment related to obsolescence following a comprehensive review. These had a meaningful impact on reported gross profit and mask improved profitability across several of our cross product categories. Crab nutrition is probably the clearest example. Gross profit increased 37% led by microbeaded fertilizer where we have both high revenues and improved margins. In crop protection, the overall decline was concentrated in third party and other products. Our adjuvants portfolio actually delivered higher gross profit and improved margins year over year. And within Seeds and Integrated Product, the remaining Seeds continue to weigh wait on reported results, but seed treatment packs delivered higher sales and approximately 40% growth in gross profit.

Reported consolidated gross margin does not yet tell the full story. Beneath the headline numbers, we are seeing early signs of improvement across several of our core business, providing a strong foundation for future performance. Turning to the slide to look for the full year gross profit results. For the full year, reported gross profit was $82.9 million down 21% with gross margin of 34.8%. As with the quarterly numbers, understanding the component of that decline is important. There were some significant effects during the year. The higher inventory obsolescence charge we just discussed and the wind-down of the seed business model.

Looking at the underlying product performance, Crop Protection margins were broadly stable for the year despite lower revenues. microbe-based fertilizer increased gross profit by approximately 20%. And seed and seed treatment packs also delivered higher gross profit and improved margins. The largest reported decline was in crop nutrition, particularly inoculants, where the year over year comparison was significantly affected by the inventory obsolescence charge. So while reported consolidated gross margin decline, the underlying composition of the portfolio continues to improve with a greater concentration of product that offers stronger profitability. Turning to Slide 7. Look at adjusted EBITDA. This is where the impact of the cost actions we have been implementing throughout the year becomes much more visible.

Adjusted EBITDA improved by approximately $10 million year over year from negative $9.6 million to positive $600 thousand The main driver was a reduction in our operation expense base. SG&A was down 19% in the quarter. With reduction in both fixed and variable expenses and those savings more than offset the decline in reported gross profit. Other income also contributed positively during the quarter, reflecting gains from joint farming and barter arraignments. So although $600 thousand is still a modest level of EBITDA, the important point for us is that the magnitude in the year over year improvement and the fact that the cost action taken during fiscal year 2026 are now clearly flowing through the P&L.

For the full year adjusted EBITDA was $25.5 million compared to the $28.9 million in fiscal year 2025. This REIT illustrates the scale of the cost reset Gross profit declined by approximately $22 million year over year, but this was substantially offset by the more than $20 million improvement in operating expense. Despite 18% reduction in revenues and the 20% reduction in reported gross profit, adjusted EBITDA declined by only 12%. We think that demonstrate the magnitude of the cost actions implemented during the year and the significantly leaner operating structure with which we are entering fiscal year 2027. Finally, turning to the balance sheet.

Total financial debt on June 30 was $225.9 million broadly stable compared with the end of the third quarter. Cash and short term investment totaled $12.2 million resulting in net financial debt of $213.6 million As we have previously discussed, following the acceleration note associated with the noteholders dispute, substantially all of the related secured note, a $118.6 million at year end, remains classified as short term. The outstanding balance does not reflect any reduction in connection with the pro forma foreclosure closure. The company continues to dispute the acceleration of the note and the foreclosure process, which remains subject to legal proceedings.

Outside the secured notes, we also made meaningful progress on liability management during the year that was completed through the fourth quarter. At Rizobacter, we successfully pursued the reprofiling of approximately $28 million of bank debt obligations and completed a voluntary maturity extension process for our local bond debt in Argentina covering $46.5 million in aggregate principal amount of outstanding notes. This initiative further strengthened our liquidity profile and extend our debt maturity schedule. Managing liquidity and the capital structure remains a key priority as we enter fiscal year 2027. Alongside the operating and working capital initiatives that Federico has mentioned.

Operator: So let's turn to-- Thanks, Ezequiel.

Federico Trucco: And please now turn to Slide 10 for a brief discussion on what to expect for the year ahead. We have now substantially completed the nearly 2-year reconfiguration of our seed business. And concluded an external strategic assessment of our continuing operations. That work has provided a clear road map for the next phase of the business. Including rationalizing our portfolio and go to market channels, revisiting some of our commercial policies and strategic relationships, and realigning our R&D and our investments with defined financial objectives. While continuing to explore further efficiencies on the OpEx front and noncore asset monetization opportunities. These actions are also beginning to translate into improved portfolio profitability.

Although the benefits are not yet fully reflected in reported gross margins, as we work through the portfolio and commercial transition described before. For instance, if you now turn to the next slide, you will see that if we adjust the nonrecurring obsolescence associated to the portfolio transition, gross profit percent has already expanded from fiscal year 2025 to fiscal year 2026. For fiscal year 2027 and beyond, we are targeting about 40% gross margins. We believe that this can be achieved by focusing growth on higher quality core revenue streams particularly in Brazil, as well as simplifying the product portfolio to focus on the most valuable and value accretive SKUs.

Just for reference, 99% of the aggregated gross profit from fiscal year 25 resulted from less than 50% of the SKUs in our catalog. So we see a great opportunity in this work. We have also made great progress on the SG&A front as we have already discussed during the presentation, and you can see these summarized in the next slide. Yet, we believe that we can continue to improve on this front, targeting a combined 23% total SG&A as a percent of revenues for fiscal year 2028. We believe this is achievable as we implement new systems and simplify our organizational arrangement in terms of processes, cost centers, and legal entities.

As we enter fiscal 2027, our focus remains on improving the performance and cash generation of our continuing business. Maintaining cost and working capital discipline, and actively addressing the company's capital structure and liquidity position. We believe the actions taken during fiscal 2026 have established a more focused operating base from which to move forward. We continue to recognize the significance of the ongoing litigation process in New York. where we will continue to pursue the appropriate legal course as well as evaluate constructive alternatives where possible. With this, we end our prepared remarks. We can now open the call for Q&A. Operator?

Operator: Thank you. We will now begin the Q&A session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press 1. Again. Ask that you pick up your handset when asking a question to allow for optimal sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. There are no questions at this time. I will now turn the call back over to Federico Trucco for closing remarks.

Federico Trucco: Thank you. With this, we can end the call for today. Have a great rest of the week.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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