Bioceres Crop Solutions Corp (BIOX) 2025 Q2 法說會逐字稿

Welcome to today's bio crop Solutions fiscal 2nd quarter 2025 financial and operational results. My name is Sandija and I will be your moderator for today's call. (Operator Instructions). Paula Savanti, Head of Investor Relations

歡迎閱讀現今的生物作物解決方案 2025 財年第二季財務與營運績效。我叫桑迪亞 (Sandija)，我將擔任今天電話會議的主持人。（操作員指令）。Paula Savanti，投資者關係主管

And good morning to everyone. Welcome to Bioceres Crop Solutions. Second quarter 2025 earnings conference call. Our prepared remarks today will be led by our Chief Executive Officer, Federico Trucco; and our Chief Financial Officer, Enrique Lopez Lecube. Both of them will be available for the Q&A session following the presentation.

大家早安。歡迎來到 Bioceres Crop Solutions。2025 年第二季財報電話會議。我們今天的準備演講將由我們的執行長 Federico Trucco 主持；以及我們的財務長 Enrique Lopez Lecube。他們兩人都將出席演講後的問答環節。

During this call, we will make 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 segment 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. Please note in today's presentation we'll be making references also to certain non-gap financial measures. Reconciliations of the non-gap measures can be found in our earnings press release. The conference call is being webcast, and the webcast link is available at our investor relations website. It is now my pleasure to turn over the call to Federico.

在本次電話會議中，我們將做出前瞻性陳述。這些聲明是基於目前的預期和假設，受各種風險和不確定性的影響。我請您參閱收益報告和簡報中的前瞻性部分，以及最近向美國證券交易委員會提交的文件。我們不承擔更新或修改任何前瞻性陳述以反映新的或變更的情況的義務。請注意，在今天的演講中我們也將參考某些非差距財務措施。在我們的收益新聞稿中可以找到非差距措施的對帳。電話會議正在進行網路直播，網路直播連結可在我們投資者關係網站上找到。現在我很高興將電話轉給費德里科。

Thank you, Paula, and good morning to everyone. Thank you for participating in today's call.

謝謝你，Paula，大家早安。感謝您參加今天的電話會議。

Please turn to slide number 3. Calendar year 2024 has been a reminder that growth, at least in our industry, the agricultural industry, is rarely linear. The conditions in Argentina, which remains our primary market, have proven increasingly difficult, as we have briefly discussed in our earnings announcement of last week.

請翻到幻燈片 3。2024 年提醒我們，至少在我們的產業，即農業產業，成長很少是線性的。正如我們在上週的收益公告中簡要討論的那樣，阿根廷仍然是我們的主要市場，但該國的情況變得越來越困難。

Our revenues in the quarter declined by 24% compared to the year ago quarter. And while we have improved our gross margins, our profitability metrics have been affected by this significant drop in the top line. Enrique will discuss our 2nd quarter 25 and first half 25 numbers in more detail in a minute.

與去年同期相比，本季我們的營收下降了 24%。儘管我們的毛利率有所提高，但我們的獲利指標卻受到了營業收入大幅下降的影響。恩里克將在一分鐘內更詳細地討論我們第二季的 25 和上半年的 25 個數字。

And while it is important to know that we have roughly kept or increased market share in our key product segments, we also believe that we need to more effectively unlock the full potential commercially of our differentiated portfolio of products and technologies.

雖然重要的是要知道我們在主要產品領域的市場份額大致保持或增加，但我們也認為，我們需要更有效地釋放我們差異化產品和技術組合的全部商業潛力。

To that end, we are implementing two important changes. First, in the segment, during our last call, we indicated that we were in the process of finalizing a strategy review with two key focal points accelerating the transition to a more capital-like business model and exploring alternative monetization approaches.

為此，我們正在實施兩項重要變革。首先，在該部分，在我們上次電話會議中，我們表示我們正在完成一項策略審查，其中兩個關鍵焦點是加速向更像資本的商業模式的轉型，並探索替代的貨幣化方法。

As a result of this process, we have made the strategic decision to exit breeding seed production, and seed commercialization. And will instead partner with leading seed companies as well as some of our most important seed clients who are better structured to conduct these activities for us.

基於這個過程，我們做出了退出育種種子生產和種子商業化的策略決策。而是將與領先的種子公司以及一些最重要的種子客戶合作，這些公司的結構更適合為我們進行這些活動。

Aligned with this new strategy, we are announcing a new agreement with GDM in soybeans and a revised partnership with Florimondere in wheat, which I will describe later in the call.

根據這項新策略，我們宣布與 GDM 達成一項關於大豆的新協議，並與 Florimondere 達成關於小麥的修訂版合作夥伴關係，我將在稍後的電話會議上進行描述。

Second, we're appointing Mile Marinoff, who previously served as our executive VP of commercial for North America as our new Chief Commercial Officer. Milan's past experience in key commercial development roles, as well as his track record with us since joining the team last year, positioned him uniquely to help us streamline our commercial operations, accelerate the onboarding of new commercial partners, and better prioritize, diversified, and synchronize our portfolio opportunities for profitable growth.

其次，我們任命 Mile Marinoff 為我們的新任首席商務官，他曾擔任我們北美商務執行副總裁。米蘭過去在關鍵商業開發職位上的經驗，以及他自去年加入團隊以來的業績，使他能夠幫助我們簡化商業運營，加速新商業合作夥伴的加入，並更好地確定優先次序、多樣化和同步我們的投資組合機會，以實現盈利增長。

Before we discuss these changes in greater depth, I would like to pass over the call to Enrique for a discussion of our financial performance.

在我們更深入地討論這些變化之前，我想先打電話給恩里克，討論一下我們的財務表現。

Good morning and thank you, Let's dive into the financials. As Federico mentioned, our total revenues for the quarter were $106 million which is no doubt disappointing but requires some more detail on the context behind the numbers. The first thing I want to point out is that the soft performance in the quarter as well as the first half of the fiscal year was driven entirely by the sales performance of our business in Argentina.

早安，謝謝，讓我們深入了解財務狀況。正如 Federico 所提到的，我們本季的總收入為 1.06 億美元，這無疑令人失望，但需要更詳細地了解這些數字背後的背景。我想指出的第一點是，本季以及財年上半年的疲軟表現完全是由我們在阿根廷的業務的銷售業績所致。

Argentina is a key market for us, and it is decisive for the first half of the fiscal year due to the high season for summer crops. So this season was particularly challenging in Argentina with lower commodity prices and mild to weak yield expectations driving an expected reduction of more than $200 per hectare in farmers' income from soybeans and corn compared to the previous season.

阿根廷是我們的重要市場，由於正值夏季作物的旺季，阿根廷對於本財年上半年具有決定性作用。因此，本季對阿根廷來說尤其具有挑戰性，商品價格較低，單產預期疲軟，導致農民從大豆和玉米中獲得的收入與上一季相比預計每公頃減少 200 多美元。

This decline in expected income undermined farmers' purchasing capacity and also coupled with an abundant supply of agricultural inputs generated price pressure on our inputs. Competition between suppliers increased sharply. Estimates indicate that on average, about half of the $200 per hectare drop in farmer income was passed on to a input suppliers, shrinking the overall I input market.

預期收入的下降削弱了農民的購買能力，再加上農業投入品供應充足，對我們的投入品產生了價格壓力。供應商之間的競爭急劇加劇。估計表明，平均而言，農民每公頃收入下降 200 美元，其中約一半轉嫁給了投入品供應商，導致整體投入品市場萎縮。

In this context, our sales in Argentina dropped in line with the market contraction and entirely explained the drop in the quarter as well as in the first half of the fiscal year, which pretty much stands the summer crop season in the country. There are 3 aspects of this soft performance that I believe are worth keeping in mind.

在此背景下，我們在阿根廷的銷售額隨著市場萎縮而下降，並完全解釋了本季以及財年上半年的銷售額下降，而上半年基本上是該國的夏季作物季節。我認為，這種軟性能有三個方面值得牢記。

First, that the largest revenue decline in Argentina came from lower margin products, and as a result, our overall gross margin expanded from 37% to 42% during the quarter, with similar dynamics for the first half.

首先，阿根廷最大的營收下降來自於利潤率較低的產品，因此，我們本季的整體毛利率從 37% 擴大到 42%，與上半年的情況類似。

Second, that despite the overall market contraction in Argentina, our key product families roughly maintain market share or in some cases, even experienced an expansion of our market share in the country.

第二，儘管阿根廷市場整體萎縮，但我們的主要產品系列在阿根廷的市佔率基本上保持不變，在某些情況下甚至有所擴大。

Non-core products for the most part decreased in line with market performance and finally, Although not at a scale that will help us offset headwinds in the high season for the Argentine market, sales outside of Argentina grew during the first half, which is a good sign of our geographic diversification strategy, paying out in primary markets like Brazil and the US, but also in secondary markets like Mexico, the Andean region, or Uruguay.

非核心產品大部分隨著市場表現而下降，最後，雖然規模不足以幫助我們抵消阿根廷市場旺季的不利因素，但上半年阿根廷以外地區的銷售額有所增長，這是我們地理多元化戰略的一個好兆頭，不僅在巴西和美國等主要市場支付，也在墨西哥、安第斯地區或烏拉圭等二級市場支付。

So what I would like to point out is that without losing perspective of the magnitude of the impact that the Argentine market setback took on our quarterly and first half financial results, it is worth noting that benefits from accomplishments in the first half of the fiscal year, such as are pivoting in the business, geographic diversification, and stable to slightly increasing market share in key products. Will most likely outlive headwinds in Argentina that we see as temporary for the most part.

因此，我想指出的是，在不忽視阿根廷市場挫折對我們季度和上半年財務業績影響程度的情況下，值得注意的是，上半年財報成果帶來了收益，例如業務轉型、地域多元化以及關鍵產品市場份額的穩定或略有增長。很有可能會克服阿根廷面臨的阻力，我們認為這些阻力在很大程度上只是暫時的。

In the coming slides, I will explain how these market dynamics affected each business segment. So let's please move on to the next slide.

在接下來的幻燈片中，我將解釋這些市場動態如何影響每個業務部門。那麼請我們繼續看下一張投影片。

I think it's like 5. So, let's now look in more detail at what happened to crop production.

我認為是 5 左右。那麼，現在讓我們更詳細地了解農作物生產的情況。

Here we saw the largest decline in revenues in absolute terms, with sales falling from $71 million to a little bit above $55 million in the quarter, primarily explained by the performance of Argentina.

從絕對值來看，我們看到了最大的收入下降，本季銷售額從 7,100 萬美元下降到略高於 5,500 萬美元，這主要歸因於阿根廷的表現。

Although during our last earnings call, we had discussed and mentioned early signs of recovery in the crop protection business in Argentina. The dynamics for the 2nd quarter continued the trends we observed in the 1st quarter of the fiscal year, which is why I believe it makes sense to address the performance of the 1st half as a whole.

儘管在我們上次的收益電話會議上，我們曾討論並提到了阿根廷作物保護業務復甦的早期跡象。第二季的動態延續了我們在本財年第一季觀察到的趨勢，這就是為什麼我認為將上半年的表現作為一個整體來看待是有意義的。

Year-to-date, overall crop protection revenues are down 20%. The decline can be entirely attributed to Argentina, where as shown in the graph, revenues dropped by nearly $30 million or 29%, primarily driven by lower sales of non-core and third-party products.

今年迄今為止，作物保護整體收入下降了 20%。這一下降完全歸咎於阿根廷，如圖所示，該國收入下降了近 3,000 萬美元，降幅為 29%，主要原因是非核心產品和第三方產品銷售額下降。

This performance aligns with the overall market trend in Argentina, where market research firms estimate a 27% contraction in the CP sector during this period. There are several factors that contributed to this market downturn.

這一表現與阿根廷的整體市場趨勢一致，市場研究公司估計，在此期間阿根廷的CP產業將萎縮27%。造成此次市場低迷的因素很多。

First, and as a common denominator to the Argentine market across almost every product category, tighter farm economics undoubtedly led to the decrease of preventive field management strategies to favor a more reactive and just in time purchasing behavior from farmers. This is particularly the case in crop protection products.

首先，作為阿根廷市場幾乎所有產品類別的共同點，更嚴格的農業經濟無疑導致預防性田間管理策略的減少，轉而支持農民採取更被動和及時的購買行為。在作物保護產品中尤其如此。

Second, that softer demand for CP products due to tight on farm economics and lower pest pressure combined with an abundant supply as distributors had stocked up last year in anticipation of the evaluation of the Argentine peso under the new government. Which in turn led to increased price competition.

其次，由於農場經濟緊張、病蟲害壓力降低，加上分銷商去年為應對新政府對阿根廷比索的評估而大量囤貨，導致正大產品需求疲軟。這反過來又導致價格競爭加劇。

In summary, both overall market prices and volumes declined for CP in Argentina. Despite these significant challenges, we successfully maintained sales of our core high margin adjuvants offering in Argentina, which in a shrinking market signals market share expansion and is encouraging. On a similar note, sales outside of Argentina grew during the first half, primarily driven by our core bio protection portfolio.

綜上所述，阿根廷CP的整體市場價格和銷售量均有所下降。儘管面臨這些重大挑戰，我們仍然成功地維持了核心高利潤佐劑在阿根廷的銷售，這在萎縮的市場中標誌著市場份額的擴大，令人鼓舞。同樣，上半年阿根廷以外地區的銷售額也有所成長，這主要得益於我們的核心生物保護產品組合。

Let's move on to the next slide to take a closer look at performance for crop nutrition. Sales in crop nutrition were $28 million in the second quarter. In this case, as in CP, the decline is primarily attributed to Argentina and more specifically to micro fertilizer sales.

讓我們翻到下一張投影片，仔細看看作物營養的表現。第二季作物營養業務的銷售額為 2,800 萬美元。在這種情況下，與CP一樣，下降主要歸因於阿根廷，更具體地說是微肥銷售。

As the revenue bridges in the slideshow, the contribution to the decline in revenues from Argentina is almost coincidental with the contribution to the declining revenues from micro fertilizers when looking at product level variations.

如幻燈片中收入所示，從產品層面的變化來看，阿根廷收入下降的貢獻與微肥收入下降的貢獻幾乎是一致的。

Several factors contribute to the decline in microbead fertilizer sales in Argentina. First, a 16% year over year reduction in corn acreage, which is the primary target crop for phosphate fertilization on a per acre or hectare basis.

有幾個因素導致阿根廷微珠肥料銷售下降。首先，玉米種植面積比去年同期減少了 16%，而玉米是每英畝或公頃磷肥施用的主要目標作物。

Probably tight farm economics were even more decisive than acreage in shaping market behavior as farmers either decided to forego fertilization altogether or in some cases opted for lower cost commodity fertilizers. Our estimates indicate that the overall specialty fertilizer market dropped 40% for the entire 2024 calendar year, which indicates that broadly speaking, the drop in micro fertilizers. Did not come at the expense of the leading market share position we have gained in specialty fertilizers, but rather from the overall market contraction.

緊張的農業經濟狀況可能比種植面積更能決定市場行為，因為農民要麼決定完全放棄施肥，要麼在某些情況下選擇成本較低的商品肥料。我們的估計表明，整個 2024 日曆年，整個特種肥料市場下降了 40%，這表明從廣義上講，微肥市場出現了下降。這並不是以犧牲我們在特種肥料領域所取得的領先市佔率為代價的，而是整體市場的萎縮。

On a positive note, despite the soft performance, sales outside of Argentina, as well as from other crop nutrition products grew during the first half, particularly driven by inoculants. Similar to what I described for CP, it seems reasonable to assume that the benefits from our international expansion will most likely be more permanent than the transitory is set back in fertilizers in Argentina.

從積極的方面來看，儘管業績疲軟，但上半年阿根廷以外地區的銷售額以及其他作物營養產品的銷售額均有所增長，尤其是接種劑的推動。與我為 CP 所描述的類似，似乎可以合理地假設，我們從國際擴張中獲得的利益很可能比阿根廷化肥業務的暫時挫折更為持久。

Let's please now move on to the following slide to review performance for Syria integrated products.

現在請我們翻到下一張投影片來回顧敘利亞綜合產品的表現。

This this segment is slightly different than the other two because the main revenue decline here is an anticipated result from a purposeful strategic decision. The decrease is almost entirely due to lower downstream grain sales in line with the strategic changes we are introducing to our HP4 strategy and which Federico will go into further detail later on in the presentation.

這個部分與其他兩個部分略有不同，因為這裡的主要收入下降是出於有目的的策略決策而預期的結果。下降幾乎完全是由於下游穀物銷售下降，這與我們對 HP4 策略引入的策略變化一致，Federico 將在稍後的演示中進一步詳細說明。

As we'll see in the next slide that this decline has had very little impact on gross profit for the segment due to the low margin nature of sales from H4 grain inventory divestments. That said, within this segment, the part of the business that did expand was related to Cri solutions.

正如我們將在下一張幻燈片中看到的那樣，由於 H4 穀物庫存剝離的銷售利潤率較低，因此這種下降對該部門的毛利影響甚微。也就是說，在這個領域中，業務確實擴展的部分與 Cri 解決方案有關。

This growth was primarily driven by soybean-based treatments which benefited from the increase in soy soybean increase in Argentina. Once again, although not meaningful enough to turn around challenges for our Argentine business, I do think that growing sales of high margin packs in a context of headwinds is a demonstration.

這一成長主要得益於阿根廷大豆產量的成長，大豆基處理劑的銷售也因此成長。再次強調，儘管這不足以扭轉我們阿根廷業務面臨的挑戰，但我確實認為，在逆風環境下高利潤包裝的銷售成長就是一個很好的證明。

Of the value of portfolio diversification aside from the geographic diversification. Let's please now go to slide 8 to review gross profit evolution.

除了地理多樣化之外，投資組合多樣化的價值。現在請我們翻到投影片 8 回顧毛利的變化。

Gross profit for the quarter to $45 million. Like I mentioned at the beginning of my presentation, it is important to point out that gross margin expansion from 37% last year to 42% this quarter meaningfully buffered the softer top line performance and led to a 12% decrease in contrast to the 24% decrease in revenues.

本季毛利達4500萬美元。正如我在演講開始時提到的那樣，值得指出的是，毛利率從去年的 37% 擴大到本季度的 42%，這顯著緩解了較弱的營收表現，並導致營收下降 12%，而收入則下降了 24%。

As shown in the slide, gross profit performance varied meaningfully when looking at different segments. Crop protection and micro fertilizers were the main drivers for the decline in overall gross profit, while enhanced product needs in seed and integrated products and high margin in opulent related sales partially offset the drop.

如投影片所示，從不同的細分市場來看，毛利表現有顯著差異。作物保護和微肥是整體毛利下降的主要原因，而種子和綜合產品的需求增強以及富裕相關銷售的高利潤率部分抵消了這一下降。

Let's take a closer look at the individual segments. In crop protection, gross profit came in at $20 million a 22% decline, which aligns closely with the revenue performance.

讓我們仔細看看各個部分。在作物保護方面，毛利為 2,000 萬美元，下降 22%，與收入表現非常吻合。

Well, we did see an increase in sales of high margin adjuvants. This was partially offset by a decline in bio protection product sales in the US during the quarter, which had had a strong first quarter.

嗯，我們確實看到高利潤佐劑的銷售額有所成長。這一成長被本季美國生物防護產品銷售額的下降部分抵消，而美國第一季的銷售額表現強勁。

Overall, gross margin for crop protection remains steady at 37% during the quarter. In Syria integrated products, gross profit declined by 15%. This drop is smaller than the drop in revenues because as mentioned earlier, the reduction in HP4 grain inventory sales had a minimal impact on profitability.

整體而言，本季作物保護業務的毛利率維持穩定在 37%。敘利亞綜合產品毛利下降了15%。這一降幅小於收入降幅，因為如前所述，HP4 糧食庫存銷售的減少對獲利能力的影響微乎其微。

Consequently, segment growth margin improved to 37% from 31% last year. This improvement is a result of our deliberate focus on preserving working capital and prioritizing higher margin products.

因此，分部成長利潤率從去年的 31% 提高至 37%。這項改善是我們刻意注重保留營運資金和優先考慮利潤率更高的產品的結果。

Particularly in HP 4 as we pivot towards a more capital efficient and royalty based model as Federico will discuss.

特別是在 HP 4 中，我們轉向更有效率資本和基於特許權使用的模式，正如 Federico 所討論的。

Lastly, in the corporate nutrition segment, gross profit increased by 6% despite the decreasing in revenues. This growth was driven by strong performance in high margin inoculants, which more than offset the decline in micro fertilizers profit contribution. As a result, the segment's cross margin expanded significantly to 57% in the second quarter of this year.

最後，在企業營養部門，儘管收入減少，但毛利仍增加了 6%。這一成長是由高利潤接種劑的強勁表現推動的，這足以抵消微肥利潤貢獻的下降。因此，該部門的交叉利潤率在今年第二季大幅擴大至57%。

Let's please turn to slide 9 to take a look at adjusted for the 2nd quarter. Adjusted for the quarter reached $15.4 million compared to roughly $24 million in the year ago quarter. The decline as shown, was primarily driven by a reduction in gross profit within the crop protection segment which we've already discussed in detail.

請翻到投影片 9，看一下第二季的調整。本季調整後達 1,540 萬美元，而去年同期約為 2,400 萬美元。如圖所示，下降主要是由於作物保護部門毛利的下降，我們已經詳細討論過這一點。

Another significant factor contributing to the decline in EBIDTA was the performance of our joint ventures, particularly Syrtec, our main joint venture in the micro fertilizer space. Syrtec's results were negatively impacted by lower product demand in recent quarters, which weighed on the overall performance of our JV equity accounting.

導致 EBIDTA 下降的另一個重要因素是我們合資企業的業績，特別是我們在微肥領域的主要合資企業 Syrtec。Syrtec 的業績受到最近幾季產品需求下降的負面影響，這拖累了我們合資企業股權會計的整體表現。

On the cost side, we also experienced an increase in SGNA which further contributed to the decline in IIDA. A key driver of this increase was the higher temporary expenses in Argentina compared to the same period last year. These expenses added pressure to our cost base and include factors like higher dollar denominated costs, given the lower rate of currency depreciation in Argentina.

在成本方面，SGNA 也出現了成長，這進一步導致了 IIDA 的下降。推動這一成長的一個主要因素是阿根廷的臨時費用與去年同期相比有所增加。這些費用為我們的成本基礎增加了壓力，其中包括因阿根廷貨幣貶值率較低而導致的美元計價成本上升等因素。

Also, temporary import taxes that were in place during the quarter that have already been lifted. And an increase in the impairment of re receivables which was done mainly to more accurately reflect current market conditions in Argentina.

此外，本季實施的臨時進口稅已取消。應收帳款減損增加，主要是為了更準確反映阿根廷當前的市場狀況。

So to summarize, the combination of lower gross profit in crop protection, weaker JB performance, and slightly higher opE in Argentina led to a decline in adjusted Vida that I just addressed.

總而言之，作物保護業務的毛利較低、JB 業績較弱以及阿根廷的 opE 略高，導致了我剛才提到的調整後 Vida 的下降。

Finally, turning to the next slide, let's look at financial deposition and review some balance sheet highlights. Total net debt by quarter stood at $238 million sequentially increasing by roughly $26 million from the first quarter.

最後，翻到下一張投影片，讓我們來看看財務存款並回顧一些資產負債表重點。本季淨債務總額為 2.38 億美元，較第一季增加約 2,600 萬美元。

Given the lower IBA, our leverage ratio now stands at 3.3.3 turns above the threshold of 3 turns that we have been keeping as a target. In light of PNL headwinds affecting profitability, during the quarter, we took precautionary measures by implementing a tighter inventory management policy with a more just in time approach.

鑑於較低的 IBA，我們的槓桿率現在為 3.3.3 倍，高於我們一直保持的目標 3 倍閾值。鑑於損益不利因素影響獲利能力，本季我們採取了預防措施，實施了更嚴格的庫存管理政策和更及時的方法。

Notably, our inventory levels at quarter end were 18% lower than last year, despite lower revenues that could have translated into higher inventories by season end if measures had not been taken. This aligns with our strategy of reducing working capital exposure to focus on enhancing cash generation and improving capital allocation to that regard.

值得注意的是，儘管收入較低，但如果不採取措施，到季末庫存可能會增加，但我們季度末的庫存水準比去年低了 18%。這符合我們減少營運資本風險、專注於提高現金創造能力和改善資本配置的策略。

Now that the high season in a primary market like Argentina is behind during the next two quarters, we will increase our focus on improving accounts rece's performance.

現在，阿根廷等主要市場的旺季已經過去，在接下來的兩個季度裡，我們將更加重視提高帳款收據的業績。

Despite this quarter's results coming in below what we expected, anticipating a likely drop in annual results, we remain optimistic about our mid- and long-term prospects. We are driven by the underlying value that a unique portfolio of technology like ours provides and the value creation that that portfolio brings to end users of our products.

儘管本季的業績低於我們的預期，預計年度業績可能會下降，但我們對中長期前景仍然持樂觀態度。我們受到我們獨特的技術組合所提供的潛在價值以及該組合為我們產品的最終用戶帶來的價值創造的驅動。

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-like business model. The strategic repositioning of our seed business and tighter inventory management are initial steps to address short term challenges on the cost side but are also signs. Of our intention to cement the mid to long-term prospects for the company. 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 we've already made to support our global expansion, but also to benefit from the recovery of the Argentine market when that takes place.

我們也意識到，要成功度過這個市場波動期，需要高度重視資本配置，提高成本效率以保障獲利能力，並轉型為更像資產的商業模式。我們的種子業務的策略性重新定位和更嚴格的庫存管理是解決成本方面短期挑戰的初步措施，但也是訊號。我們的目的是鞏固公司的中長期前景。在不久的將來，我們將繼續探索更多機會來提高獲利能力和現金流，確保我們能夠充分利用已經奠定的基礎來支持我們的全球擴張，同時也能從阿根廷市場的復甦中受益。

I finalize my remarks, so I'll turn the floor over to Frederico now. Okay.

我的發言已結束，現在我將把發言權交給弗雷德里科。好的。

Thanks Kike and please turn now to slide number 11. This slide provides an overview of our integrated seed business which today goes all the way from development to commercializing seeds and identity preserved grain.

謝謝 Kike，請翻到第 11 張投影片。這張幻燈片概述了我們的綜合種子業務，該業務目前涵蓋了從開發到商業化種子和身份保存穀物的所有環節。

While this model may have been the only viable model to realistically become what we are today, one of only 4 commercial GMO trade providers in soy and the only one in wheat, we are certainly not the best at each stage, and this affects our ability to quickly and profitably scale our technologies in a more predictable manner.

雖然這種模式可能是唯一可行的模式，讓我們能夠真正成為今天的樣子，成為大豆領域僅有的四家商業轉基因貿易供應商之一，也是唯一一家小麥領域商業轉基因貿易供應商，但我們肯定不是每個階段都做到最好的，這影響了我們以更可預測的方式快速且有利可圖地擴展我們的技術的能力。

Consequently, and please now turn to the next slide, we have decided to sharpen our focus on what we do best, which is sourcing cutting-edge science and cost effectively developing patented seed traits until commercial approval. For this purpose, we'll assign trade management rights to third parties in geographies where we are pursuing a broad licensing strategy such as for HP4 within the United States.

因此，請翻到下一張投影片，我們決定專注於我們最擅長的領域，即尋找尖端科學，以經濟高效的方式開發專利種子性狀，直至獲得商業批准。為此，我們將把貿易管理權分配給我們正在推行廣泛許可策略的地區的第三方，例如美國的 HP4。

Trade managers will be responsible for breeding and commercial agreements in these geographies, as well as technology stewardship and stakeholder management, all of which are resource demanding and require country-specific adjustments.

貿易經理將負責這些地區的育種和商業協議，以及技術管理和利益相關者管理，所有這些都需要資源，並需要根據國家進行調整。

We'll continue to collaborate with global seed companies in developing high-performing varieties, often with some aspect of exclusivity, which may be trade and or geography dependent, but we'll leave the breeding and value capture work to them.

我們將繼續與全球種子公司合作開發高性能品種，通常具有某種排他性，這可能取決於貿易和/或地理位置，但我們將育種和價值獲取工作留給他們。

And finally, we will enable some of our most important farmer customers to become regional seed developers, transferring the operational management of our current portfolio varieties and contracts as well as well as helping them develop more site-specific products for their regions as they scale over time.

最後，我們將使一些最重要的農民客戶成為區域種子開發商，轉移我們目前產品組合品種和合約的營運管理，並幫助他們隨著時間的推移為其區域開發更多針對特定地點的產品。

And we have already put this new strategy into action. Please turn to the next slide. Aside from transitioning our C channel's operations to some of our most important customers, we have this week executed an important agreement with GDM for the development of new soybean solutions with exclusive rights outside the drought tolerant space.

我們已經將這項新戰略付諸行動。請翻到下一張投影片。除了將我們的 C 通路業務轉移給一些最重要的客戶之外，本週我們還與 GDM 簽署了一項重要協議，以開發耐旱領域之外的具有獨家權利的新型大豆解決方案。

Under this agreement, GDM will use Vertaca's patented platform to develop and market a new generation of soybean varieties with superior agronomic performance. This opportunity will leverage on the collaboration that has already started several years ago and will have a near term opportunity on improved with management technology as I will exemplify it in a minute.

根據該協議，GDM 將利用 Vertaca 的專利平台開發和銷售新一代具有優異農藝性能的大豆品種。這次機會將利用幾年前已經開始的合作，並將在短期內有機會改善管理技術，我將在稍後舉例說明。

We have also agreed to redefining the scope of our rejoint venture with Florimon exiting conventional breeding operations in Argentina and Australia, while directly licensing our H4 weed technology to partners outside of Latin America.

我們也同意重新定義與 Florimon 的合資範圍，Florimon 退出阿根廷和澳洲的傳統育種業務，同時直接向拉丁美洲以外的合作夥伴授權我們的 H4 雜草技術。

We believe that by refining our strategy in this way we'll be able to accomplish more predictable and attractive growth while limiting the capital exposure to this effort as we are making cash generation a top priority.

我們相信，透過以這種方式改善我們的策略，我們將能夠實現更可預測和更有吸引力的成長，同時限制對這項努力的資本風險，因為我們將現金創造作為首要任務。

Now turn to the next slide. During our last call, we discussed the opportunity to explore new monetization approaches for our existing technologies. This is what we are currently doing with our two patented GMO events outside the drought tolerant space.

現在翻到下一張投影片。在我們上次通話中，我們討論了探索現有技術的新貨幣化方法的機會。這就是我們目前在耐旱空間之外對兩項專利基因改造生物所做的事情。

Here we can see how we can bioactivate Vertica soybean event to achieve improved performance after treatment with a broadly used glutamate synthetase inhibitor, as we controlled technology that is quickly becoming an attractive alternative to farmers and where new products are being registered that allow for significant reductions in per hector load, combining cost effectiveness with improved environmental profile.

在這裡，我們可以看到，在使用廣泛使用的谷氨酸合成酶抑製劑處理後，我們如何能夠生物激活 Vertica 大豆事件，從而實現性能的提高，因為我們控制的技術正迅速成為對農民有吸引力的替代方案，並且正在註冊的新產品可以顯著降低每公頃負荷，將成本效益與改善的環境狀況相結合。

We believe this alternative product strategy for our already approved events will help us complement and diversify our current trade offering as we see the attractiveness of this opportunity to multiple partners under our revised seed strategy.

我們相信，針對我們已經批准的活動的替代產品策略將幫助我們補充和多樣化我們目前的貿易產品，因為我們看到在我們修訂的種子策略下這個機會對多個合作夥伴具有吸引力。

Finally, but no less important, we are very happy to announce the appointment of Mil Marinoff as our Chief Commercial Officer.

最後，但同樣重要的是，我們非常高興地宣布任命 Mil Marinoff 為我們的首席商務官。

Please turn to the next slide. As I indicated in my initial remarks, Milan's past experience in key commercial development roles in Vallaro until its acquisition by Syngenta, and then Syngenta, as well as his track record with us since joining the Proform team last year, positions him uniquely to help us accelerate profitable growth. As Chief Commercial Officer, Mille will oversee sales, marketing, business development, and portfolio management functions across the organization.

請翻到下一張投影片。正如我在最初的演講中所指出的，米蘭在 Vallaro 被先正達收購之前曾擔任過關鍵的商業開發職務，之後又加入先正達，加上他自去年加入 Proform 團隊以來的良好業績，使他能夠以獨特的方式幫助我們加速盈利增長。身為首席商務官，Mille 將負責監督整個組織的銷售、行銷、業務開發和投資組合管理職能。

Mille will join us in future earnings calls, and we expect him to actively contribute to the understanding of our commercial performance and growth strategies. Let me take this opportunity to congratulate Mil on this appointment, and with that, I think we can now open up the call for Q&A operator.

Mille 將參加我們未來的收益電話會議，我們期望他能夠積極促進我們了解商業表現和成長策略。讓我藉此機會祝賀米爾獲得這項任命，我想我們現在可以開始問答環節了。

Thank you very much. [Operator Instructions]. Our first question comes from Kristen Owen of Oppenheimer.

非常感謝。[操作員指示]。我們的第一個問題來自奧本海默公司的克里斯汀歐文。

Good morning. Thank you for taking the question. Plenty of questions that we could ask to unpack with the announcement this morning, but I want to start with maybe just at a high level with the transition in the seed business, turning over some of the high working capital parts of the business, but maybe giving up a little bit of control on timing. Just maybe help us understand what the economics of these partnerships would look like, say a year from now, 3 years from now, 5 years from now so that we can understand how this will progress over time? and I'll start there.

早安.感謝您回答這個問題。對於今天早上的公告，我們可以提出很多問題，但我想先從種子業務轉型的高層次開始，移交一些高營運資本業務部分，但可能會放棄對時間的一點控制。也許可以幫助我們了解這些合作關係的經濟狀況，例如一年後、三年後、五年後，以便我們了解隨著時間的推移這些合作關係將如何發展？我就從這裡開始。

Hi Kristen, thanks for joining the call. This is Federico. Look, some of these things, obviously we have already started, in particular those that have to do with transitioning our existing, channels, the semis and H4 channels to some of our key customers, and that I think will more immediately affect our cost structure. So I think we will be. Having a benefit there as we scale more effectively with them and collect royalties that are generated by these partnerships.

你好，克莉絲汀，感謝你參加電話會議。這是費德里科。你看，其中一些事情，顯然我們已經開始了，特別是那些與將我們現有的管道、半成品和 H4 管道轉變到我們的一些關鍵客戶有關的事情，我認為這將更直接地影響我們的成本結構。所以我認為我們會的。當我們與他們更有效地擴大規模並收取由這些合作產生的版稅時，我們會從中受益。

This is likely to give us more significant results in the next 2 to 3 years. But it is in line in part with what we were planning to do ourselves initially for the current year and after that. Now, I think the most important part of the partnerships, announcement has to do with the ability to engage with trade managers in other geographies and also the GM GDM announcement that we've made today. We believe that it'll be better for our partners to sort of address this directly themselves, and we're planning to do that shortly, and have probably either a joint press release or have them provide their overview in terms of market opportunity and timing so that we can provide that incremental layer of information.

這很可能在未來2到3年內為我們帶來更顯著的成果。但這在某種程度上與我們最初計劃在今年及以後做的事情一致。現在，我認為合作關係中最重要的部分，公告與與其他地區的貿易經理接觸的能力以及我們今天發布的 GM GDM 公告有關。我們認為，我們的合作夥伴最好自己直接解決這個問題，我們計劃很快這樣做，可能會發布一份聯合新聞稿，或者讓他們提供關於市場機會和時機的概述，以便我們可以提供增量資訊。

And it doesn't just reflect on what we think ourselves, but in terms of these new alternative monetization strategies, I think what you have to keep in mind is that the opportunities we're seeking are broader than what we've originally pursued with the drought tolerance approach.

這不僅反映了我們自己的想法，而且就這些新的替代貨幣化策略而言，我認為你必須記住的是，我們尋求的機會比我們最初採用抗旱方法所追求的機會更廣泛。

Okay, that that's helpful. My follow up question relates to the degree to which this will influence the balance sheet, sort of the impact on the working capital of you and your overall leverage. I mean, you noted some of the inventory take down in the quarter even with the sales decline, just how we think about the balance sheet impact of this transition?

好的，這很有幫助。我的後續問題涉及這將對資產負債表產生多大影響，以及對您的營運資金和整體槓桿的影響程度。我的意思是，您注意到即使銷售額下降，本季庫存也有所下降，我們如何看待這種轉變對資產負債表的影響？

Hi Kristen, this is Enrique. Thanks for joining us and thanks for the question. I think it is a good point that you're making because the strategic pivoting has a dual effect like Federico said, it's not only broadening the scope of the opportunity, going to sort of a wider, acreage, to others, but it also has implications on the cost side. On the spending side, but also on the balance sheet side, so on working capital. So, I think that this, strategic decision is threefold. Is, pose to sort of maximize penetration of our GMO technology.

你好，克莉絲汀，我是恩里克。感謝您加入我們並感謝您的提問。我認為你提出的觀點很有道理，因為戰略轉向有雙重效果，就像費德里科所說的那樣，它不僅擴大了機會的範圍，為其他人提供了更廣闊的土地，而且還對成本方面產生了影響。在支出方面，也在資產負債表方面，因此在營運資本方面。所以，我認為這個戰略決策有三個面向。是為了最大限度地提高我們的基因改造技術的滲透率。

And the risk that penetration by using established third parties but also allow us to free up working capital that was tied in this business and allocate that elsewhere as we have meaningful opportunities to ramp up our biological business globally.

透過使用現有的第三方進行滲透的風險也使我們能夠釋放與該業務相關的營運資金並將其分配到其他地方，因為我們有重大的機會在全球範圍內擴大我們的生物業務。

So the impact of that, what you will see in the coming quarters is a reduction on the SGNA that we allocate to the seed business. And probably with a little bit more patience, you will start seeing cash come back for our balance sheet from the divestment of the grain inventories. Bear in mind that this past which season was the last in which we made a significant effort with the identity preserve model. And that has spilled grain inventories that we will continue to invest in the remaining half of this fiscal year and probably will also spill a bit into the first and probably 2nd quarter of the next year, but there will be cash turning back to the balance sheet from this changing strategy in the next 3 to 4 quarters and also a cost reduction on the SGNA.

因此，其影響是，您將在未來幾季看到我們分配給種子業務的 SGNA 減少。也許再多一點耐心，您就會開始看到透過剝離糧食庫存而從我們的資產負債表中收回現金。請記住，上個季度是我們最後一次對身分保護模型做出重大努力。這導致糧食庫存外溢，我們將在本財年剩餘時間繼續投資，並且可能還會在明年第一季和第二季外溢一些，但在接下來的 3 到 4 個季度中，透過這一戰略轉變，現金將回流到資產負債表，SGNA 的成本也會降低。

Last question for me, if I may, the freeing up of that SGNA or even to an extent maybe even some of the R&D that's been associated with HB 4 and some of these other traits, I mean if we're thinking who does bioceries view themselves in this market, are you intending to develop more traits? This is the first time we've kind of heard about some of these other traits in a long time. Is this capital that's being reallocated towards building up the biological platform? How do you redefine yourselves in this market given this transition? That's my last question. Thank you.

我的最後一個問題是，如果可以的話，釋放 SGNA 或甚至在一定程度上釋放與 HB 4 和一些其他特徵相關的一些研發，我的意思是，如果我們考慮一下生物技術在這個市場中如何看待自己，您是否打算開發更多特徵？這是我們很長一段時間以來第一次聽說這些其他特徵。這些資本是否被重新分配到建造生物平台？鑑於這種轉變，你們如何在這個市場中重新定義自己？這是我的最後一個問題。謝謝。

Yeah, that's a great point. I think obviously we are putting a strong focus on the biological side of the business where we have low-hanging fruits and the ability to quickly bring technologies that are not as expensive to develop as new GMO events. That is not to say we're not going to pursue incremental technologies in seeds, but we believe that some of that incrementality is by better partnering with others, particularly on the gene editing space.

是的，這是一個很好的觀點。我認為，我們顯然將重點放在生物業務上，因為我們在這方面有唾手可得的成果，並且能夠快速推出不像新基因改造事件那樣昂貴的技術。這並不是說我們不會在種子領域追求漸進式技術，但我們相信，這種漸進式技術可以透過與他人更好地合作來實現，特別是在基因編輯領域。

So, the good thing about the GMO platform that we have is that it not only provides traits like drought tolerance or improve with management opportunities, but also it provides a backbone. A patented backbone for the introduction of multiple gene editing improvements that might be a third-party improvements, but that can go to market in a way that is patent protected by partnering with us. And I think that will be kind of the key strategy around new products in seeds. So, it's not doing the research ourselves, it's not doing the discovery ourselves. It's using what we already have. To bring these innovations in a patent protected way.

因此，我們擁有的基因改造平台的優點在於，它不僅提供了耐旱性或改善管理機會等特性，而且還提供了支撐。引入多種基因編輯改進的專利支柱，這些改進可能是第三方改進，但可以透過與我們合作以受專利保護的方式進入市場。我認為這將是圍繞種子新產品的關鍵策略。所以，這不是我們自己進行的研究，也不是我們自己進行的發現。它利用的是我們已經擁有的東西。以專利保護的方式帶來這些創新。

Our next question comes from the line of Steve Byrne from Bank of America. Steve, please go ahead.

我們的下一個問題來自美國銀行的史蒂夫伯恩。史蒂夫，請繼續。

Yes, your partnership that you announced with GDM, provokes me to want to drill into your R&D platform just a bit. I wanted to ask you about a couple of challenges in in key South American crop crops that I'm curious whether you might have.

是的，您宣布與 GDM 建立合作夥伴關係，這激發了我想要深入了解您的研發平台的興趣。我想問您一些關於南美主要農作物面臨的挑戰，我很好奇您是否遇到這些挑戰。

An idea or something in development either in the biologicals or in a trait development and seeds that that could be a solution. The first one would be target spot in soybeans, particularly in Brazil, which I'm sure, your partner GDM would welcome some kind of a genetic or biological solution to that problem?

一個想法或某樣東西正在開發中，無論是在生物方面還是在性狀開發方面，都可能是解決方案。第一個問題是大豆的斑點病，特別是在巴西，我敢肯定，您的伴侶 GDM 會歡迎某種基因或生物解決方案來解決這個問題？

Hi Steve, thanks for joining the call. Look, I think there are interesting leads to TRY to deal with that problem. Part of them come from the gene editing space, some of which might already be within the pipeline of companies like GDM, and I think what we're planning to do is combine forces.

你好，史蒂夫，感謝你參加電話會議。看，我認為有一些有趣的線索可以嘗試解決這個問題。其中一部分來自基因編輯領域，有些可能已經在 GDM 等公司的研發線內，我認為我們計劃要做的是聯合起來。

To make them not only viable or market ready but also combine them with the other technologies that we have in our portfolio, be them at the see treatment level from our biological suffering. Remember we have a very complete.

使它們不僅可行或適合市場，而且將它們與我們產品組合中的其他技術相結合，以達到治療我們生物痛苦的水平。記住我們有一個非常完整的。

We can almost substitute every chemical AI in seed treatments with biological alternatives, but also with the GMO platform on drought tolerance and weed management that can be at times an effective way to patent protect some of these innovations as well. So, we are likely to do a joint announcement with Don Mario, with GDM sorry, to explain this in greater detail and address that specific opportunity that you're mentioning in Brazil, which is becoming more relevant every day, no.

我們幾乎可以用生物替代品取代種子處理中的每一種化學活性成分，而且利用基因改造平台進行抗旱和雜草管理，有時這也是一種有效的專利保護方法。因此，我們可能會與 Don Mario（抱歉，GDM）聯合發布聲明，更詳細地解釋這一點，並解決您在巴西提到的具體機會，這個機會正變得越來越重要，不是嗎？

Yeah, very good. The other one would be corn stunt, in Argentina and maybe a little more broadly. Do you, do you have a view on the global regulatory outlook for GMO seeds or gene edited seeds that could be helpful to you down the road and particularly in these crops that are that are exported out of South America?

是的，非常好。另一種是玉米矮化病，發生在阿根廷，而且影響範圍可能更廣。您對基因改造種子或基因編輯種子的全球監管前景有何看法，這可能會對您未來有所幫助，特別是對於從南美洲出口的這些作物？

Yeah, look, in corn we're not actively participating today, so it's a space that we've decided to leave to others that are better prepared. I think obviously from a regulatory viewpoint we have created an infrastructure, a network of equal-minded companies with whom we can collaborate to make regulatory clearances cost effective. I think if you look at what we have done, one of our claims is that we were able to deregulate globally GMO events at a fraction of the cost that industry leaders have historically alluded to, no, and that has in a way made technology, more viable in terms of what type of returns are expected to make a go no go decision. For many of these technologies that might not be global but might be country-specific or crops specific.

是的，你看，我們今天沒有積極參與玉米種植，所以我們決定把這個空間留給準備更充分的人。我認為，從監管角度來看，我們顯然已經創建了一個基礎設施，一個由志同道合的公司組成的網絡，我們可以與他們合作，使監管審批具有成本效益。我想，如果你看看我們所做的事情，你會發現我們的主張之一是，我們能夠以行業領導者歷來提到的成本的一小部分來放鬆對全球轉基因事件的管制，不，而且從某種程度上來說，這使得技術在預期產生何種類型的回報方面更加可行，從而做出是否繼續的決定。許多技術可能不是全球性的，但可能是特定於國家或作物的。

So, I think in that front we're obviously looking to participate, leverage what we've been able to put together, in terms of regulatory capabilities and then in corn specifically, it's not a crop that we are addressing ourselves, but I think, and others are actively working on, you want to add something there?

因此，我認為在這方面我們顯然希望參與，利用我們在監管能力方面所能整合的優勢，特別是玉米，這不是我們自己處理的作物，但我認為，其他人正在積極努力，你想補充一點什麼嗎？

Yeah. Hi Steve, thanks for joining. Good to have you on the call. And I do think that from a crop perspective we are profiting from corn. On the biological front with seed treatments where we are market leaders and that has built a close relationship with seed compounds in the corn space. So, I think that that exposure that Federico is alluding to will probably come from that end, but we still benefit and profit from the technologies that we have on the biological front for corn.

是的。嗨，史蒂夫，感謝你的加入。很高興您接聽電話。我確實認為從作物的角度來看我們從玉米中獲利。在種子處理的生物學方面，我們是市場領導者，並與玉米領域的種子化合物建立了密切的關係。因此，我認為費德里科提到的曝光可能來自於此，但我們仍然可以從我們在玉米生物方面的技術中受益。

Yeah Very good, helpful, thank you.

是的，非常好，很有幫助，謝謝。

The first question comes from the line of Ben Klieve of Lake Street Capital Markets.

第一個問題來自 Lake Street Capital Markets 的 Ben Klieve。

All right, thanks for taking my questions, Enrique, I'm hoping you can help us put a little finer point on the expectations in coming quarters on OpEx related to the kind of dynamics within, especially the seed business. Can you talk about the expectations of cost savings that you're going to be able to get here, in coming quarters out of the kind of realignment that you're talking about today?

好的，謝謝你回答我的問題，恩里克，我希望你能幫助我們更詳細地闡述未來幾季對營運支出的預期，特別是與種子業務相關的動態。您能否談談在未來幾季中透過今天談到的調整所能實現的成本節約預期？

Hi Ben, thanks for joining the call and for the question. And look, I think that this is probably a broader effort. It's not only focused on seed has a structural aspect that is essentially a shift in strategy. I don't know if this is going to be meaningful enough to be only allocated to the seed business, but there's a structural decision there to downsize teams.

你好，本，感謝你參加電話會議並提出問題。而且我認為，這可能是一項更廣泛的努力。它不僅關注種子，也關注結構方面，本質上是策略的轉變。我不知道這是否足夠有意義，只分配給種子業務，但這是一個縮減團隊規模的結構性決定。

Aside of that. We're also going to take a closer look at our cost structure in other parts of the business, because sales have not delivered, what we needed. So that means that we need to sort of like, understand if there's a downscale that we need to make there to adjust to the reality and to navigate successfully, this time of volatility until it fades out and we can go back to sort of like growth.

除此之外。我們也將仔細審視其他業務部分的成本結構，因為銷售尚未達到我們所需的水平。所以這意味著我們需要了解是否存在需要縮減的規模，以便適應現實並成功度過這個波動時期，直到它逐漸消失，我們才能回到成長狀態。

Having said that, I do think and expect that we can probably have a meaningful reduction of OECs on a quarterly basis before year end and have that be a contributor to EBITDA that we already foresee is not going to be at the levels of last year considering what we lost in this first half due to what I explained in the Argentine market. So, we know that there's a part that is not going to be recovered. We do think that the dynamics for the Fourth quarter for the most part are highly independent from what happened until now.

話雖如此，我確實認為並預計，我們可能在年底之前按季度大幅減少 OEC，並使其成為 EBITDA 的一個貢獻者，我們已經預見到，考慮到我們上半年在阿根廷市場遭受的損失，EBITDA 不會達到去年的水平。所以，我們知道有一部分是無法恢復的。我們確實認為，第四季度的動態在很大程度上與迄今為止發生的情況高度無關。

So, a combination of prospects for Q4 that might be untied from the reality that we had in this first half, plus a contribution in sort of being more prudent on the OEC side should allow us to sort of like TRY to reach a stable level of EBITDA margin. Also bear in mind that in the 3rd quarter, we will have sort of like an unfair comparison to the last year. So that's in our mind, and that's the main focus when dealing with OECs, and with the 4th quarter.

因此，第四季度的前景可能與我們上半年的現實情況脫節，再加上 OEC 方面更加謹慎的貢獻，應該可以讓我們嘗試達到穩定的 EBITDA 利潤率水平。也要記住，在第三季度，我們與去年的比較會有點不公平。這就是我們的想法，也是處理 OEC 和第四季時的主要關注點。

Okay, thank you, Actually, the Q3 year over year dynamic is one of the questions I had also here, given the inoculate business that you cited here in the first half, it would seem to me that some businesses come in from the Syngenta agreement, year-to-date.

好的，謝謝。實際上，第三季度同比動態也是我在這裡遇到的問題之一，考慮到您在上半年提到的接種業務，在我看來，今年迄今為止的一些業務來自先正達協議。

Can you talk about the kind of level of seasonality you expect coming out of Syngenta for the first half versus the second half of this fiscal year, and then just remind us all of the level of kind of that upfront. Benefit that you received in the 3rd quarter of last year?

您能否談談您預計先正達本財年上半年和下半年的季節性水平，然後提前提醒我們一下這種水平。去年第三季獲得的福利？

Yeah, sure. So, like you pointed out last year we had an accrual of $15 million in Q4, roughly $15 million in Q3, and that will not be there this year. And actually, Q3 is not a high season for the Innoia business, so I do think that the Q3 comparison will be a tough one.

是的，當然。因此，就像您去年指出的那樣，我們在第四季度累計了 1500 萬美元，在第三季度累計了大約 1500 萬美元，而今年不會有這些數字。實際上，第三季並不是 Innoia 業務的旺季，所以我認為第三季的比較將會很艱難。

And then by Q4, I think that it will depend mostly on the pace coming from Syngenta, particularly for the Brazilian business. So, we don't have a lot of Pibility on that, and actually I think that for the full annual year, we probably have locked in a big portion of what we would get from Syngenta, independently that then it will be sort of like, to be seen how the Brazilian season unfolds and what that does to Q4. But that's why then I think that we will be focusing on the rest of the things that we need to do in Q4, mostly. And also starting in Q3, the foliar season, in the US, that's important to us, the beginning of the summer crop season for the Brazilian market, the comeback or the use of phosphate fertilizers for the wheat season, in Argentina, all of this. Are probably more relevant in our thinking of how IIDA will sort of like shape up in the second half than what it is at the Syngenta agreement for that for the most part has already delivered the profits that we were foreseeing.

到第四季度，我認為這將主要取決於先正達的步伐，尤其是巴西業務。因此，我們對此沒有太多把握，實際上，我認為，就全年而言，我們可能已經鎖定了從先正達獲得的大部分收益，然後就看巴西季節如何展開以及這對第四季度的影響了。但這就是為什麼我認為我們將主要關注第四季度需要做的其餘事情。從第三季開始，美國的葉面肥季節對我們來說很重要，巴西市場夏季作物季節的開始，阿根廷小麥季節磷肥使用的恢復，所有這些都很重要。當我們思考 IIDA 在下半年將如何發展時，這可能比先正達協議更有意義，因為該協議在很大程度上已經實現了我們預見的利潤。

But what I would add is that unlike the first two years where that was, heavily loaded in the 3rd quarter. And now this is more evenly spread. Obviously in the second quarter we benefited from the agreement in part. Remember this agreement has minimum profits guarantee to the tune of $230 million for the 10-year period, and that it's not linear. So initially the first years were lower amounts, and they increased year after year.

但我想補充的是，與前兩年不同的是，第三季的負荷很大。現在分佈更加均勻了。顯然，第二季度我們在一定程度上受益於該協議。請記住，該協議保證 10 年期間的最低利潤為 2.3 億美元，並且不是線性的。因此最初幾年的金額較低，且逐年增加。

So we have a continuity of that agreement. And even though we are not going to have the accrual of the upfront in the 3rd quarter, I see you will see that more steadily reflected in every quarter and and this last quarter was an example of that in many ways.

因此，我們將繼續履行該協議。儘管我們不會在第三季度提列預付款，但我認為你會看到這一點在每個季度都得到更穩定地體現，而上個季度在很多方面就是一個例子。

Okay, very good, plenty more to ask. I one of one more and then get back in cu and you talked about the headlines from non-core third party products that that you guys have talked about historically, but I don't know that these have ever really been emphasized all that much. I'm wondering if you can talk about the percentage of this revenue base within, ex, percentage of products from. These non-core third party products within your total revenue base, and then kind of define the logic and having these in your in your portfolio.

好的，非常好，還有很多問題想問。我再說一遍，然後回到 CU，你談到了你們歷史上談論過的來自非核心第三方產品的頭條新聞，但我不知道這些是否真的被強調過那麼多。我想知道您是否可以談談這個收入基礎的百分比，例如來自產品的百分比。這些非核心第三方產品在您的總收入基礎內，然後定義邏輯並將其納入您的投資組合中。

I'll probably take a first time at it and then let the comment then it's a good question because I also think that that's part of the capital allocation sort of like a tighter approach that we are intending to have. But I do think that there's a distinction that needs to be made when we're talking about non-core products. There are some of these products that are resale products that we make, in Argentina, Brazil, Uruguay, where we lever our capacity to position a high technologies and profit from that, and where we probably commercialized technologies that are owned by others, but we make a very attractive margin. Just out of our, ability to position this type of products in the market.

我可能會先嘗試一下，然後再發表評論，這是一個很好的問題，因為我也認為這是資本配置的一部分，有點像我們打算採取的更嚴格的方法。但我確實認為，當我們談論非核心產品時，需要區分。其中一些產品是我們在阿根廷、巴西、烏拉圭生產的轉售產品，在這些國家，我們利用自己的能力定位高科技並從中獲利，我們可能將其他人擁有的技術商業化，但我們獲得了非常可觀的利潤。只是出於我們在市場上定位此類產品的能力。

That's one thing. And that's probably, I would say, sort of a 10% or 15% part, depending on the year of our crop production sales. Then we have an initiative that we took a couple of years ago that is a dedicated sales force for when we get partners. So, if we sell a high-tech technology product and we get paid with a lower margin third party product, we want to get that out of our system quickly and out of the balance sheet. And for that purpose, we have a specific team and that probably accounts for a bigger chunk. It's probably about 25% to 30% of our revenues in the crop in the crop protection segment, specifically in the crop protection segment.

這是一回事。我想說，這大概佔 10% 或 15%，這取決於我們農作物生產銷售的年份。幾年前，我們採取了一項舉措，即當我們獲得合作夥伴時，建立一支專門的銷售團隊。因此，如果我們銷售一種高科技產品，而我們卻以利潤率較低的第三方產品獲得報酬，那麼我們希望盡快將其從我們的系統中剔除，並將其從資產負債表中剔除。為了這個目的，我們有一個專門的團隊，這可能佔了更大的份額。作物保護領域（具體來說是作物保護領域）的作物收入大概占我們總收入的 25% 到 30%。

That business is and has always been and is tightly managed from a working capital standpoint, from a cost standpoint, and that will probably continue. The type of business that we have foregone this season and that we will probably TRY to stay away from on a structural basis to improve our gross profit profile and also the working capital performance are more opportunistic partners that when you look at the full cash flow cycle, don't really make sense. So, when we are getting paid for high margin product with something that is probably lower margin, we will keep that channel in the foreseeable future.

從營運資金和成本的角度看，該業務一直受到嚴格管理，而且這種情況可能會持續下去。我們本季放棄的業務類型，以及我們可能會在結構上嘗試避開的業務類型，以提高我們的毛利狀況和營運資本表現，這些都是機會主義的合作夥伴，當你看完整的現金流週期時，你會發現這些合作夥伴並沒有什麼實際意義。因此，當我們用利潤率可能較低的產品獲得高利潤產品的報酬時，我們將在可預見的未來保留該管道。

We will also keep the third-party products that are high margin, if you will, in this context that probably bring us 25% to 35% margins on our ability to commercialize the technologies, and we will forgo products that are not part of the bartering and that are probably margins below 25% or 20%. I don't know if that's clear enough or if that's the question or the answer you were seeking for, but, in a nutshell, that's how we think about it.

我們還將保留利潤率較高的第三方產品，如果你願意的話，在這種情況下，這些產品可能會給我們帶來 25% 到 35% 的利潤率，因為我們可以將這些技術商業化，而我們將放棄不屬於以物易物的產品，這些產品的利潤率可能低於 25% 或 20%。我不知道這是否足夠清楚，或者這是否是您要尋找的問題或答案，但簡而言之，這就是我們對此的看法。

Yeah, no, I, there's plenty going on there, but it's, that, that's helpful to understand the logic and the magnitude, very good. Okay, thanks for taking my questions.

是的，不，我，那裡發生了很多事情，但是，那，那有助於理解邏輯和重要性，非常好。好的，感謝您回答我的問題。

Our next question comes from Austin Moller from Canaccord.

我們的下一個問題來自 Canaccord 的 Austin Moller。

Hi, good morning. So just my first question here. Given the new partnerships, can you quantify the percentage of HB4 royalties or profits you would receive in Latin America versus outside of Latin America where you have full control just given the partnership on trade development and plant breeding.

嗨，早安。這是我的第一個問題。鑑於新的合作夥伴關係，您能否量化您在拉丁美洲獲得的 HB4 特許權使用費或利潤的百分比，以及在拉丁美洲以外您僅憑藉貿易發展和植物育種方面的合作夥伴關係就對拉丁美洲以外地區擁有完全控制權的百分比？

So, thanks Austin for joining the call. Obviously, the opportunity outside of Latin America is much bigger than the one in Latin America, even though that might come at a later time because it might take us a bit longer to get there. But for instance, Australia itself is twice the size of Latin America in terms of weed acreage. Obviously, drought is very relevant in Australia.

所以，感謝奧斯汀參加電話會議。顯然，拉丁美洲以外的機會比拉丁美洲內部的機會要大得多，儘管這個機會可能會在稍後出現，因為我們可能需要更長的時間才能到達那裡。但舉例來說，澳洲本身的大麻種植面積是拉丁美洲的兩倍。顯然，乾旱與澳洲息息相關。

So there instead of now going through the JB with Florimondre we can have the business that we put in place in Australia become one licensee but also license the technology to others with providers in that geography, so that will help us. Not depend on one singlere program will allow us to have a broad licensing approach like the one I've indicated we're pursuing in the US, which is by the way bigger than Australia but probably the drought tolerant opportunities is similar or more constrained to sort of the. Midwest, part of the with acreage, and by doing that ourselves directly, we will keep the H4 royalty component in full.

因此，我們不必現在就透過 JB 與 Florimondre 合作，我們可以讓我們在澳洲開展的業務成為一個許可證持有者，同時還可以將技術授權給該地區的其他供應商，這樣對我們有幫助。不依賴單一計劃將使我們能夠採取廣泛的許可方式，就像我指出的那樣，我們在美國推行的方式，順便說一下，美國比澳大利亞大，但耐旱機會可能類似或更受限制。中西部是其中的一部分，擁有土地，透過我們自己直接這樣做，我們將全額保留 H4 特許權使用費部分。

In Latin America, we share that with Florimondere through Trial Genetics. What you will see is that the JB profitability will improve. Because it will no longer have to offset the breeding costs of both, of the conventional genetics that are also commercialized through the HIV. So I think we're keeping the income and we're reducing significant part of the cost. That in the near term is where we will see the improvement. But eventually in 2 to 3 years, I think, the opportunity outside of Latin America will obviously of of far more relevant than what we can do in Latin America in wheat. That is just in terms of a wheat example in terms of the soybean example, I think.

在拉丁美洲，我們透過 Trial Genetics 與 Florimondere 分享這項成果。您將會看到 JB 的獲利能力將會提高。因為它不再需要抵消透過 HIV 商業化的傳統遺傳學的育種成本。所以我認為我們保留了收入，並且減少了很大一部分成本。短期內我們將看到情況的改善。但我認為，最終在兩到三年內，拉丁美洲以外的機會顯然將比我們在拉丁美洲在小麥方面所能做的更為重要。我認為，這只是就小麥和大豆的例子而言。

That we will continue obviously to pursue the HP 4 op opportunity in areas that are drought prone, but the ability to expand beyond that with improved with management tools, which are increasingly needed because of the herbicide resistance evolution to some of the more famous herbicides like glyphosate, and ALS inhibitors and the like, are creating a very, Steady and strong demand on alternatives and I think we have an opportunity there to compete and achieve significant market share and more so if we're partner with someone that already has.

顯然，我們將繼續在易受干旱影響的地區尋求 HP 4 op 機會，但隨著對一些更著名的除草劑（如草甘膦和 ALS 抑製劑等）的耐藥性演變，越來越需要改進的管理工具來擴大這一範圍，這正在對替代品產生非常穩定和強勁的需求，我認為我們有機會在那裡競爭並獲得顯著的市場份額，如果我們與我們擁有的市場份額是如此的夥伴。

Close to 70% or 80% of the genetic footprint in the in the subcontinent, no. So, it will also take some time to ramp that up, but we're not starting from scratch. There are varieties that are being multiplied as we speak, and I will prefer for that opportunity to be addressed more directly by our partners and that I think have a a better understanding of the dynamics, the year-to-year growth, and we're likely to do that in the, in an upcoming call or press release.

接近 70% 或 80% 的基因足跡位於次大陸，不是嗎？因此，這也需要一些時間來提升，但我們並不是從零開始。正如我們所說，品種正在成倍增加，我希望我們的合作夥伴能夠更直接地利用這個機會，並且我認為能夠更好地了解動態和逐年的增長，我們很可能會在即將召開的電話會議或新聞稿中做到這一點。

Great, that's helpful and just commenting on the cash balance, do you feel comfortable with the current cash balance of $29 million to support the revised business strategy over the next 12 months, or do you expect you might need to raise capital?

太好了，這很有幫助，僅就現金餘額進行評論，您是否對當前 2900 萬美元的現金餘額感到滿意，以支持未來 12 個月內修訂的業務戰略，或者您是否預計可能需要籌集資金？

Hi Austin, thanks for joining us and for the question. No, look, I don't think that the cash position is a concern for us now, even more so as we focus on cash generation and sort of like being prudent and expenses, all measures that we probably need to take from a P&L standpoint that that will have an impact on cash flows. And obviously what Federico just described for the city. So the cash position I think is well sized for what we need to do. What we will keep an eye on is probably the leverage of the company and to that regard, cash that is generated will be used to pay down debt.

你好，奧斯汀，感謝你加入我們並提出這個問題。不，你看，我不認為現金狀況現在對我們來說是一個問題，更重要的是，當我們專注於現金產生和謹慎的開支時，從損益表的角度來看，我們可能需要採取的所有措施都會對現金流產生影響。顯然這就是費德里科剛才對這座城市的描述。因此，我認為現金狀況足以滿足我們的需要。我們將密切關注公司的槓桿率，並利用其產生的現金來償還債務。

So, that's the main focus, and what we're looking for. I think that the short sterm sort of like needs are coincidental with what we want to do with the business in the midterm and long term for the sake of the P&L. So, there's a convergence there of the things that we need to do with the things that we want to do, and cash is probably not the top priority there catch position.

所以，這就是我們關注的重點，也是我們所尋找的。我認為短期需求與我們為了實現損益而希望在中期和長期內開展的業務是一致的。因此，我們需要做的事情和我們想要做的事情是一致的，而現金可能不是我們的首要任務。

Great, thanks for the insights.

太好了，謝謝你的見解。

The next question comes from the line of Kemp Dolliver of Brookline Capital Markets.

下一個問題來自布魯克林資本市場的 Kemp Dolliver。

Great, thank you. A couple of questions, first. Is there a deconsolidation of revenue with these new agreements?

太好了，謝謝。首先，有幾個問題。這些新協議是否會導致所得拆分？

If you mean if we're reported on a separate agreement by agreement basis.

如果你的意思是，我們是否根據單獨的協議進行報告。

Well, no, it would just be if it comes out of the, your consolidated income statement?

嗯，不是的，如果它來自您的合併損益表，那它就是嗎？

I can, this is Enrique. No, look, I think that, of course, the downscaling of the identity preserve model means that we're going to have a lower revenue coming from the grain divestment, then. The accounting or the recording of sales that are achieved through the different partnerships will depend on how those partnerships evolve.

我可以，這是恩里克。不，你看，我認為，當然，身分保留模型的縮小意味著我們從糧食撤資中獲得的收入將會減少。透過不同合作關係實現的銷售額的會計或記錄將取決於這些合作關係如何發展。

So if sales in Wheat, for example, are done to the legal, the platform in Latin America, that's going to be accounted for through the JB accounting. If it's done through the partnership with Don Mario and there's not a sort of like an actual JB there, we will have our fair share of the royalties flowing through the revenue line.

因此，如果小麥的銷售是向拉丁美洲的合法平台進行的，那麼這將透過 JB 會計進行核算。如果這是透過與 Don Mario 的合作實現的，並且沒有真正的 JB，那麼我們將透過收入線獲得公平的版稅份額。

Probably less bulky and what direct seat sales, would bring to the top line, but of course with higher margin. So, it will depend on the form and shape, that the agreements take, but unless there's a JV. Revenues are going to show up in our top line in the form of royalty-based high margin sales.

可能體積更小，直接座位銷售可以帶來更高的收入，但利潤率當然也更高。因此，這將取決於協議的形式和形狀，但除非有合資企業。收入將以基於特許權使用費的高利潤銷售額的形式體現在我們的營業收入中。

Okay good. And how much of the inventory decline in the recent 1 to 2 quarters reflects the results from the, HB4. Grain sales versus what you're doing to control inventories overall?

好的。而最近1到2季的庫存下降多少，反映在HB4的結果上。糧食銷售與您為控制整體庫存所採取的措施相比如何？

Very good question. Look, I think that both things contributed to the decrease in inventories. For the most part, I like to see grain inventories going down, because that was our intention that has been our. Also bear in mind that wheat was harvested in December, January, so there might be part of those inventories that are already considered in the inventory number that we're reporting, but both things contributed to the declining inventories and what, we can probably not show is what would be the scenario if we had not been managing inventories more tightly.

非常好的問題。看，我認為這兩件事都導致了庫存的減少。在大多數情況下，我希望看到糧食庫存下降，因為這是我們一直以來的願望。還要記住，小麥是在 12 月和 1 月收穫的，因此我們報告的庫存數量中可能已經考慮了部分庫存，但這兩件事都導致了庫存下降，而且我們可能無法展示如果我們沒有更嚴格地管理庫存，情況會是怎樣的。

So, the reduction in inventories doesn't fully show the new policy because you don't see the intended sales and how tighter inventory management prevented us from ending the season and then probably declining season with higher inventories if we have not been working just in time. But to your question, both things contribute to the declining inventories and going forward, it will continue to be the case.

因此，庫存的減少並不能完全反映新政策，因為你看不到預期的銷售額，也看不到更嚴格的庫存管理如何阻止我們結束這個季節，然後如果我們沒有及時工作，可能會在庫存增加的情況下結束衰退。但對於您的問題，這兩件事都導致了庫存下降，而且未來這種情況還會持續下去。

But did they can both contribute equally?

但他們能做出同等的貢獻嗎？

Yeah, during the quarter I would say so, yeah, equally contributed during the quarter, yeah.

是的，在本季我會這麼說，是的，在本季做出了同樣的貢獻，是的。

There are no additional questions waiting at this time, so I will, we will end the conference call over here. Thank you for your participation. You may now disconnect your line.

目前沒有其他問題，所以我們將在這裡結束電話會議。感謝您的參與。現在您可以斷開線路了。