Bioceres reports Q4 revenue $74.7M, consensus $110.08M

CEO Federico Trucco commented: “We are reporting a disappointing final quarter to an extremely challenging fiscal year. Our results this quarter were significantly impacted by the shift in our seed business strategy, which alone accounted for close to half of the gross margin decline. While this impact was anticipated and carries positive implications for our business going forward, the persistent slowdown in Argentina and a higher-than-normal level of impairments also weighed on performance. We believe many of these effects are transitory and expect conditions to normalize in the coming months. In response, we have accelerated adjustments to our cost structure, targeting operating expense savings of around 10-12%. We have also reduced our rate of incremental CAPEX and R&D investment by 50%, lowering it from nearly 6% of sales to between 2.5% and 3% for FY26 and FY27. Importantly, we do not expect this slower pace of investment to affect near-term growth, as we already have the key registrations and manufacturing capacity in place to deliver on our three-year plan. At the same time, we will continue to adjust our working capital levels to better reflect our current business model and product mix, aiming to maintain them at approximately four to five months of sales. Finally, we have taken steps to comply with our financial obligations and strengthen governance. We amended our note purchase agreements and outstanding notes, extending the convertible note maturities under new terms, and made related changes to our Board composition. As previously announced, we are also making changes to our leadership team to best support our financial and commercial priorities moving forward. With Enrique Lopez Lecube’s departure, we are searching for a new CFO, as well as re-engineering the CCO role.”