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spk_0: welcome to of our was first
spk_1: have twenty twenty three earn a conference call a do some averages or listen only mode if anyone was offered a stomach harvard superstar zero you call upon keep it please know that the cop colleagues they recorded and a replay will be made available in the company that is relations website and i are liberal aggro dot com i went out on the carpet over to jeff phonic with investor relations that i see our thank you you may be good again
spk_2: good afternoon and thank you for joining us on the world's inaugural earnings call to discuss our fiscal twenty twenty three first half result and december thirty first twenty twenty two onto the call or chief executive officer we know and chief strategy officer who starving modern se before we begin please remember the during the course of this called management may make forward looking statements within the meaning of the private securities litigation reform act of nike ninety five including statements regarding our future result and operations and financial position industry in business trends business strategy and market growth among others the statement are based on management's current expectations and beliefs and involve risks and uncertainties they could differ materially from actual results or those described in these forward looking statements please refer to the company's registration statement on form of one filed with the fcc on march twenty third twenty twenty three or or report on foreign six k for the period ended december thirty first twenty twenty two thousand with yes you see today and other report filed from time to time with the fcc for detail discussion of the risk that could cause actual results to differ materially from those expressed or implied in any for looking statements made today please note on today's call management will refer to certain non i frs financial matters including adjusted even though adjusted even a margin pro forma just adjusted he does and pro forma adjusted he did ah marjan among others while the company believes these non i frs financial measures will provide useful information for investors of the presentation of this information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with i ever us please refer to today's release for reconciliation of now on i frs financial measures to the most comparable measures prepared in accordance with i ever us an hour to turn the call over to we gonna
spk_3: becker packages with afternoon when think of for joining us today i'll begin with a review of our business for those that may be newer to deliver a story and then best see the courts are responsible for some financial remarks
spk_2: i'm excited to kick off love autos inaugural grow earnings address today is a public company following your business combination transaction on february twenty eight twenty twenty three
spk_3: love little is the first and only luck in america agriculture few play least bit on the us stock exchanges this has been an exciting journey with the support of our sponsor group led by deep fried bark at the production board in the past month and a half sister closing the transaction with including the infrastructure in place to operate for us publicly traded company and meeting with our leadership team to ensure that are operating strategies are aligned towards our goal of delivering consistent profitable growth and value for our shareholders libraries the largest eg input retailer in brazil yet we believe we only have approximately ten percent share or the brazil or markets
spk_2: which represents a tremendous long term opportunity that retains your capitalize on we offer farmers a comprehensive portfolio of products and services for are differentiated business model that blends our network was highly skilled technical sales reps are our species we've are unique ability to offer vertically integrated private label specialty crop input products via outcrop care business which includes all portfolio of profit type biologics as well as digital tools that complements the third party products that redistributes
spk_3: our goal is to help our former clients supersede by providing only channel support for hot the current cycle generating value for farmers and term gain their trust by leveraging did direct agronomic serves provide by our our tvs we've all day analytics tools we believe that we can view it's a nice to meet understanding of our former clients an offer products and services taylor to their specific needs
spk_2: the services and solutions that we provide a key neighbors for our customers to better compete on the global stage consider that brazil uses approximately the same amount of nitrogen fertilizers as us or not for of his third base is yes brazil's corn yields and i bought half of the us
spk_3: why brazilian farmers have read it he adopted you see technologist they are only just beginning to utilize variable rate application equipment and other digital agronomy technologies with the help of love are we believe you're providing latin american farmers we've got believe you tube become more competitive from an accelerated use of crop protection specialties and biologics as recreate the economic value for clients food the organic growth for their crop production any case it from stability we believed every can drive simultaneous value for shareholders in terms of our footprint to have a broad geographical presence that spends more than seventy two thousand customers operating the key agriculture's panthers of brazil and columbia our customer base is focus on the small to mid size farmers was operation is large enough to make growth investments and does are keen to adopt technology yet have been under served by the lack of quality consultation and competitively priced
spk_4: solutions
spk_3: his customers are services by are two hundred and fifteen retail locations and supported by our approximately one thousand or to he's to help them plan purchase the riding boots and manage the farming operations to optimize outcomes our business is also diversified across geography his clients suppliers and crop types and we expect this to only improve as we expense our geographic diversity have mitigates operational reads in particular concern me potential adverse weather events and the she's analogy of specific crop facts we have a multi products multi brand approach which enables us to cater to a diverse set of producers across many regions that growth of our rights of crops including soybean on potato and rice it's wide range sales network is reflected in our customer concentration work are top hundred clients accounted for only sixteen percent of our fiscal year twenty twenty two revenues this trump fundamental backdrop that other themes are organic growth is reflected in the thirty eight billion dollars targets addressable market for agriculture he puts in brazil which has grown at a sixteen percent compounded rates since two thousand and seventeen our strategy aims to build up on that foundation and for the advice or a scale through em in a consolidation an organic store openings our future growth pants into a tree true other latin american markets where we are currently holding conversation we've potential targets we have completed twenty four acquisitions she's twenty seventeen and have memorandum of understanding with additional companies in our pipeline hey my name is a car quantities of our organization in our track record of successful integration is yet another level to drive our future organic growth post close in fact sees fiscal twenty eating or requisitions pet believe it's an average revenue acceleration of over two times the legacy prior year growth rate before being applied this is a direct reflection of the strength quality and diversity of our product portfolio which are rt he's can leverage up a shifting over to the la foto platform for they're supporting our growth profile is all vertically integrated care of business which represents significance upside potential as farmers adoption increase for help locked in america in crete for added segments such as biologics and especially
spk_5: the fourth july's us
spk_3: the crop guess segment also produces a significant gross margins and when coupled with it's growth trajectory is expected to account for a greater share of our gross profit makes in fine another peeler the super charges are growth is the implementation of other subs used to clients are like to highlight our strategic partnership with potter neck which was sit with an initial investment from our sponsor tpp
spk_6: on october twenty one
spk_3: twenty twenty two we're going to a multi year partnership with saw your map as an onyx ambitious are grown on me either five connected to offer brazil and farmers a groundbreaking service that can predict crop twists and nutrient deficiencies in all other specific product recommendations through a personalized software spins this is rubbish a partnership expense laborious portfolio of digital tools and services for brazil and farmers a t growth driver for the company with bottleneck we ensure for appliance additional of run on a platform that a map their fields analyze your a run on the data leverage applied map a genomic sequencing and soil chemistry analysis and provide specific product application recommendations to plants helping farmers improve yields while minimising their across length water and carbon footprint the service is expected to be launched by the end of the second half fiscal we're trying to trying to trick in summary we're very excited tree bark and johnny the financial profile of our business is compelling driven by a combination of consistent organic growth that is supplemented by a to rent em in a consolidation strategy we believe that these high rates of growth when coupled with the inherent margins advantage is that we enjoy from our vertically integrated crop guess solutions business and future penetration of other adjacent services create an attractive recipe for significant margin it's patient the years ahead combined with specter compound adjusted ebitda growth well over revenue rates are will not turn to call over to stop a modern as and
spk_7: thank you when i'll be covering your financial results for the first half of fiscal twenty twenty three period starting july first of twenty twenty two and then the december thirty first of twenty twenty two during this period because acquisition of for additional companies that a total revenues of up one hundred and five million dollars for the first half fiscal twenty twenty three three out of them he hates our leadership positions emergency which we already operate it and the fourth one march or a to each with the hugh grant you the so states one of the largest markets he was you in which we were not present yes i'll also be referencing pro forma to use pro forma she'll love would have all these the five companies for the complete current and prior periods for comparison purposes and it can be interpreted as a proxy for a pure organic view of guru so we are talking about the same company be the pro forma disclosure is also consistent with the financial presentations use during the marketing of our be the intellectual with tpp it making it easier to follow our robots vs those projections we shared previously selfish did you say we believe that we're on track and feel great about where we're at a half halfway through the fiscal year which form of world ending june with that i'll start with our combined results in uproar from a basis for the first half of fiscal twenty twenty three as go back to the periods of fiscal twenty twenty two so ending in december pro forma revenue increased twenty six percent to one point one billion dollars compared to the prior year and pro forma just a did be done grew at the higher rate of sixty four percent to one hundred and twenty five point two million dollars which which threat late show pro forma adjusted a bizarre magic spatial of two hundred and seventy beeps to eleven point three percent don't you know to the combined reported i have far as results net revenue increased forty five percent to one point zero billion dollars compared to the prior year period this girl was primarily driven by didn't quite have the luxury cultural retail sales reflecting both our organic and inorganic spatial and also the quiz of our our private label products crop yeah one of the keep the i that retract the average net revenue poor i t v was approximately one million dollars for our tv eighty six months period we gross profit increase seventy percent to two hundred thirteen point one million dollars and grabs my gf spend three hundred basis points to twenty point four percent he stole results was driven by forty components laughs the higher contribution of crop care or love world's fails mix
spk_5: second procurement synergies that she had to are more recent acquisitions
spk_7: third a more favorable brother mix reflecting the growth in the as a higher margin categories such a season specialties and forth price nukes operating expenses he quit fifty percent to one hundred eleven point one million dollars driven primarily by the hiring of new i keep these two are salesforce the opening a new stores to support group for you with of get the levity as well as he quit mean to back off it's investments aimed at the his family integration
spk_4: and dover all coach or her operations
spk_7: the operating leverage that arise from our motto is demonstrated in the growth of our net profits for the period which he quit sixty eight percent to fifty million dollars in the first have physical twenty twenty three compared to the prior year period why are left my gym increase seventy basis points to four point eight percent the result was partially back at my higher finance costly to periods are a but she cried driven by a liquid lead to a stove his expenses as a result of a neat with you that did and an increase in the basic interest rates are he was you as it also court would wife i just did he die with eighty percent to one hundred eighty point five million dollars in the first half fiscal twenty three go back to the prior you're cute and i just added on margie expanded two hundred and sixty babies points to eleven point four percent he's result was driven by higher revenues and gross profits due to deflect was mentioned previously and partially offset by a high invested not as chin with that now as that your we to talk about our guidance and conclude are prepared remarks
spk_3: think it was startling we are reinforcing our projections for that food year fiscal twenty twenty three as we presented to the market at the announcement of our business combination with pp be on september fifteen twenty twenty two prof for my revenue is expected to be approximately two point seven billion dollars or for my adjusted a be done is expected to be a for seventy two hundred and ten million which implies a pro forma adjusted ebitda margin of approximately seven point seven percent as a reminder
spk_2: outperform a projections includes all him in a contributions as off the beginning of the guy in prior fiscal year two our line without prior prison patience
spk_3: the main drivers to achieve those projections are organic revenue growth capturing synergies from cross selling between crop care and retail segments cross marching expansion which is chiefly benefited by crop care and the has meant of a product mix in particular for specialty say it's the improvements of are operating leverage as we run pop of our commercial efficiency and synergies from fair acquisitions we may also see the financial contributions off a new acquisitions such as the three companies we've signed it finding him or use never won an outside group a holding company of agriculture you put retailers in chile and fiddle with your mark love what is a treat each of these countries and by q chrome or chemical a company specializing the production of high performance as your months ending pacers for agriculture which you contribute for the porch foreigner expansion of our of crop care segments and if it a shot
spk_8: the resumes
spk_3: i knew put retailer from south of brazil with strong growth rates in the last year's additionally we make count on the contributions of five targets we signed know by biting a more use in closing we had a strong performance in the first half of twenty twenty three we grew revenue by forty five percent we drove a three hundred basis points expression on gross margin and regenerated sixty four percent growth on a pro forma just at a be done we believe that our results demonstrate this successful execution of our business plan as it previously presented to the markets we believe that the outlook for segments remains positive supported by ongoing demands for agriculture reports which we expect to carry through the second half of twenty two
spk_9: twenty three
spk_3: we are committed to presenting another period of great performers and growth in order to support our twenty twenty three projections and believe a long term said of to our shareholders all like to recognize our entire team for all of their accomplishments to bait and their contributions in helping us richard this milestone of becoming a us publicly traded company thank you
spk_1: ladies and i'm the doesn't replace conference take it off but it's any renowned of connect have a great day
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