Release Date: October 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Moolec Science SA (MLEC, Financial) achieved significant scientific and regulatory milestones, including the first-ever USDA approval for their Piggy Sooy product.
- The company successfully set up a fully owned plant molecular biology lab in Texas, enhancing R&D capabilities and reducing costs.
- Moolec has entered into a three-year offtake agreement with a major global CPG company for their Glaso product, indicating strong commercial traction.
- Revenue increased significantly from $1 million in 2023 to $5.8 million in 2024, driven by the consolidation of the soy product ingredient business.
- The company is strategically expanding its operations and sales efforts, including establishing a new operational hub in the US to enhance team collaboration and efficiency.
Negative Points
- Despite revenue growth, Moolec's expenses also increased significantly, with SG&A and R&D expenses rising from $6.2 million in 2023 to $9.3 million in 2024.
- Cash utilization increased from $7.5 million in 2023 to $9.3 million in 2024, indicating higher operational costs.
- The company faces challenges in scaling up production, as seen in the need to reserve part of the current production for seed multiplication.
- Moolec's commercialization efforts are still in early stages, with the need to expand marketing and public relations to increase awareness and adoption of their products.
- The company is heavily reliant on regulatory approvals, which can be a lengthy and uncertain process, particularly for new products like Piggy Sooy.
Q & A Highlights
Q: This quarter, you highlighted an offtake agreement for Glaso with a major global CPG company to enter the US market in 2025. Can you provide more details on this collaboration? What efforts have both parties made, and what is the estimated scale and expected revenue generation in 2025?
A: Gastón Paladini, CEO: We are excited about this offtake agreement with a major global CPG company, although we can't reveal the name. This is a three-year contract with the possibility to expand, marking our first commercial entry into the US market. MartÃn Salinas, CTO, added that they have over 600 acres planted in Idaho, expecting yields similar to last year, around 1,400 tons per acre. José López Lecube, CFO, mentioned that Glaso is expected to contribute around 15% of total revenue in fiscal year 2025.
Q: You mentioned signing an R&D collaboration agreement with Bunge to develop safflower varieties aimed at improving productivity for specific applications and markets. Can you share more details about this partnership and the business opportunities from this?
A: Gastón Paladini, CEO: The collaboration with Bunge focuses on upstream efforts in our safflower platform, aiming to improve yields and develop new safflower varieties. Amit Dhingra, CSO, explained that this involves breeding new lines with better agronomic performance. MartÃn Salinas, CTO, added that the goal is to optimize yields for different territories, expanding the technology's potential.
Q: Can you discuss what steps you have taken or intend to take to continue to drive awareness and adoption of your PMF products?
A: Gastón Paladini, CEO: Our efforts focus on educating R&D departments of potential customers, as Moolec operates a B2B business model. We are transparent about our technology and engage in PR and specific industry shows to raise awareness. We aim to reinforce communication as we introduce Glaso and Piggy Sooy to the market.
Q: In terms of safflower oil products, how much revenue growth is expected in 2025, and can this be the main part of business in the future, given the push in AI and data centers for biofuels?
A: José López Lecube, CFO: We expect Glaso to contribute around 15% of total revenue in fiscal year 2025, with significant growth anticipated in fiscal year 2026. Gastón Paladini, CEO, added that while AI and data centers are interesting applications, Moolec focuses on using safflower as a bioreactor for high-value products.
Q: Have you signed any additional commercial uptake agreements for Glaso? If not, do you expect to sign any by the end of 2024? What percent of yield is accounted for?
A: Gastón Paladini, CEO: We have not signed additional offtake agreements yet, but we are in good conversations with other customers. MartÃn Salinas, CTO, explained that they expect yields of around 1,200 to 1,300 tons per acre, with oil extraction rates between 15% to 20%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
