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First, we are appointing Milen Marinov, who previously served as our EVP of Commercial for North America, as our new Chief Commercial Officer. Milen’s past experience in key commercial development roles in Valagro and then Syngenta, as well as his track record with us since joining the Profarm team last year, positions him uniquely to help us streamline our commercial operations, accelerate the on-boarding of new commercial partners, and better prioritize, diversify and synchronize our portfolio opportunities for profitable growth.

Second, in the seed segment, we are sharpening our focus on what we do best: sourcing cutting-edge science and cost-effectively developing patented seed traits until commercial approval. We have made the strategic decision to exit breeding, seed production and seed sales and will instead partner with industry leaders who are better structured for these activities. As a first step in this new strategy, we are announcing a strategic agreement with GDM for the development of new soybean solutions, with exclusive rights outside the drought tolerance space. Additionally, we are a redefining the scope of our wheat joint venture with Florimond Desprez, exiting conventional breeding operations in Argentina and Australia, while directly licensing our HB4 wheat technology to partners outside of Latin America. We believe these initiatives will enable us to scale our current and future seed technologies more rapidly and efficiently."

Mr. Enrique Lopez Lecube, Bioceres´ Chief Financial Officer, noted: "While our fiscal first half results reflect the challenges posed by the Argentine market, particularly the decline in farmer economics driven by lower commodity prices and weak yield forecasts, we view this setback as temporary.

Argentine farmers faced significant pressure on their per-hectare income from summer crops due to these external factors, which was partially passed on to costs in the form of reduced use of fertilizers and crop protection products. This, in the context of a well-supplied ag-inputs market from aggressive purchasing in the prior season, resulted into price pressure and reduced spending on high-value technologies like ours. However, we are encouraged that we maintained our market share in key product families, despite the overall Argentine market contraction.

We remain optimistic about our long-term prospects, driven by our commitment to developing and commercially scaling up innovative technologies that create value for end-users. We are also cognizant that successfully navigating this period of market volatility requires a strong focus on capital allocation, driving cost efficiencies to safeguard profitability, and transitioning towards a more asset-light business model. The strategic repositioning of our seed business and tighter inventory management are initial steps in this direction.

In the near future we will continue to explore additional opportunities to enhance profitability and cash flows, ensuring we’re well-positioned to capitalize on the groundwork already made to support our global expansion as well as to benefit from the recovery of the Argentine market."

Key Financial Metrics

2Q25 Summary: Total revenues in 2Q25 were $106.7 million, a 24% decline from the record $140.2 million in the same period last year. The downturn was primarily driven by performance in Argentina where tighter on-farm margins altered farmer purchasing behavior, leading to a significant contraction of the crop protection and specialty fertilizers markets compared to the prior year. Reduced end-user demand added to high channel inventories derived from aggressive purchases in the prior summer crop season, ahead of expectations of changes in macro conditions in Argentina. Non-core crop protection products and micro-beaded fertilizers were the main product categories affected by the market contraction in Argentina and explain the decline in Crop Protection and Crop Nutrition sales, albeit with a roughly stable market share for both categories. Sales in Seed and Integrated Products decreased on the back of reduced downstream grain sales in line with the strategic pivoting of the seed business, partially offset by seed treatment packs sales which showed a modest top-line growth in Argentina despite the market contraction dynamics. Revenues for the first half of FY25 declined by 22% compared to the year-ago period, primarily driven by the crop protection and specialty fertilizers market downturn in Argentina, although the decline was not at the expense of losing market share. Outside of Argentina, revenues showed a modest year-over-year increase in 2Q25 after an overperformance in 1Q25, leading to net growth in 1H25.

Gross profit for the quarter was $45.1 million, a 12% decline year-over-year. The decline in revenues was buffered by an improved product mix, particularly in the Crop Nutrition and Seed and Integrated Products segments, as the company successfully maintained sales of higher-margin inoculants, biostimulants and seed treatment packs, as opposed to reduced sales of lower-margin micro-beaded fertilizers, non-core crop protection products and downstream grain sales. As a result, gross margin increased from 37% to 42%, compared to the previous year. Similarly, first-half gross margin increased from 38% to 41%, as core product families increased contribution to the product mix.

Operating profit for the quarter was $7.9 million, with a net income of 0.6 million. Adjusted EBITDA¹ for the quarter was $15.4 million, primarily driven by revenues and gross profit performance.

For a full version of Bioceres’ second quarter fiscal year 2025 earnings release, click here.

Second Quarter 2025 Earnings Conference Call

Management will host a conference call and question-and-answer session, which will be accompanied by a presentation available during the webcast or accessed via the investor relations section of the company’s website.

To access the call, please use the following information:

About Bioceres Crop Solutions Corp.

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices.

The company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation Crop Nutrition and Protection solutions. Through its HB4® program, the company is bringing digital solutions to support growers’ decisions and provide end-to-end traceability for production outputs. For more information, visit here.

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include estimated financial data, and any such forward-looking statements involve risks, assumptions and uncertainties. These forward-looking statements include, but are not limited to, whether (i) the health and safety measures implemented to safeguard employees and assure business continuity will be successful and (ii) we will be able to coordinate efforts to ramp up inventories. Such forward-looking statements are based on management’s reasonable current assumptions, expectations, plans and forecasts regarding the company’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations or could affect the company’s ability to achieve its strategic goals, including the uncertainties relating to the other factors that are described in the sections entitled "Risk Factors" in the company's Securities and Exchange Commission filings updated from time to time. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250211746936/en/

Contacts

Bioceres Crop Solutions
Paula Savanti
Head of Investor Relations
investorrelations@biocerescrops.com