Bioceres, leading biotechnological solutions for agro, announced its decision to abandon the seed production and sale business as part of a new strategy to optimize its business model and concentrate on the research and development of new technologies for The field. This measure is framed in a context of changes in the agricultural sector, especially in Argentina, its main market and after lean economic results in its last quarter.
As reported by the company in its presentation of results of the second fiscal quarter of 2025, the decision implies the departure of direct production and marketing of seeds, betting instead of associations with strategic actors in the sector. In this sense, bioceres He closed an agreement with GDM (Don Mario) To use the patented Verceca platform and develop new soybeans with high performance and biotechnological improvements. Also, in The wheat segment, the company will transfer its improvement programs to Florimond detach and will maintain total control of HB4 technology out of Latin America.
The truth is that the HB4 program, which combines drought tolerance with other advanced agronomic characteristics, remains one of the main bioceres bets And the firm will continue on that line.
Federico Trucco, CEO of Bioceres, explained: “In the seed segment, We are strengthening our approach to what we know best: obtain avant -garde science and efficiently develop genetic improvements until commercial approval. Therefore, we have decided to leave the production and sale of seeds and, instead, associate with industry leaders who are better structured for these activities. ”
Financial results
The Bioceres Financial Report reflected a challenging quarter. The company’s income reached US $ 106.7 million, which represents a 24% drop compared to the same period of the previous year. This reduction was due, in large part, to the contraction of the crop and fertilizer protection market in Argentina, where the margins of the producers were affected by the decrease in the prices of commodities and adverse climatic conditions.
The net benefit of the quarter was US $ 0.6 million, While the adjusted Ebitda stood at US $ 15.4 million, impacted by the lowest billing in Argentina. Divided into segments, crop protection revenues fell 23% year -on -year, reaching US $ 55.2 million, while crop nutrition products recorded a 23% decrease, adding US $ 28.2 million. The segment of seeds and integrated products had the largest fall with 28%, totaling US $23.3 million.
A key fact is that, despite the reduction in sales, the company managed to improve its gross margin, which went from 37% to 42%, thanks to a strategy of prioritization of products with greater profitability and a more efficient cost control.
In this framework, Enrique Lopez Lecube, CFO of Bioceres, said: “While our results reflect the challenges of the Argentine marketwe consider that this is a transitory situation. We are optimizing capital allocation, improving cost efficiency and moving towards a lighter business model in assets. The restructuring of our seed business and inventory management are key steps in this direction. “
Source: Ambito
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