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HomePosts Tagged "Mike Frank"
Agro chems – Chemicals, Agro chems – Fertilizers, Company News, Finance, India, Seeds

Seeds business faced headwinds on account of weather challenges that impacted production, created inventory shortages and supply constraints, leading to a revenue drop of 7 per cent.

 Agrochemical major, UPL Ltd., reported financial results for the first quarter ended June 30, 2024. Revenue growth for the first quarter was flat at 1 per cent, driven by 16 per cent increase in volumes, 14 per cent decline in price and a negative 1per cent Fx impact.

Seeds business faced headwinds on account of weather challenges that impacted production, created inventory shortages and supply constraints, leading to a revenue drop of 7 per cent and EBITDA drop of 30 per cent YoY.

Net Debt increased by $639 million in Q1FY25 vs year end March 24. The corresponding increase last year was $1,136 million.

Commenting on the Q1FY25 performance, Mike Frank, CEO, UPL Corporation Ltd., said: ″We continue to see strong fundamentals in the global crop protection market, with farmgate demand for our products at or above last year levels in most regions.

Herbicides led the growth in North America, driven by glufosinate and clethodim. Our herbicide performance in Brazil also did well. Fungicides growth was led by higher volumes in Europe and North America.

Revenue growth in our Natural Plant Protection (NPP) business was impressive, up 10 per cent versus last year, driven by a strong performance in Europe, among other regions.

Our contribution margin compressed by 600 bps vs Q1FY24. This was primarily due to price decline, and partially offset with lower cost of goods. Increased freight costs and foreign exchange were also headwinds on margins this quarter.

From an SG&A perspective, we continue to remain disciplined, and the organization is focused on making improvements in the operating model and driving efficiency throughout the enterprise. ″

Commenting on the Q1FY25 performance, Ashish Dobhal, CEO, UPL SAS, said: ″On our India Crop Protection business (UPL SAS), we continued our efforts to restructure the business through strict credit policies and tighter credit terms, which lead to a postponement of sales closer to season, and the consequent impact on Q1FY25 revenues. However, our contribution margins and cash flows have improved and working capital reduced, giving us the confidence that this is the right structural move for us in India”.

Commenting on the Q1FY25 performance, Bhupen Dubey, CEO, Advanta, said: ″On our global seed platform, Advanta, we saw some headwinds in Q1FY25 on account of weather challenges that impacted production, created inventory shortages and supply constraints, leading to the impact on sales and EBITDA margins. ″

Seeds business faced headwinds on account of

Agribusiness, Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Company News, Finance, World

Company’s revenue from operations declined 15.03 per cent YoY to Rs 14,078 crore in the quarter ended 31 March 2024, primarily due to lower prices in the post-patent market.

Agrochemical major UPL Ltd has reported 94.95 per cent decline in consolidated net profit to Rs 40 crore in Q4 FY24 as against a net profit of Rs 792 crore recorded in Q4 FY23.

 Company’s revenue from operations declined 15.03 per cent YoY to Rs 14,078 crore in the quarter ended 31 March 2024, primarily due to lower prices in the post-patent market (prices came off against last years [LY] higher base). However, volumes were largely in line with last year.

Company reported that Profit before exceptional items and tax slumped to Rs 135 crore as compared to Rs 1,420 crore reported in the same quarter a year ago. Exceptional items stood at Rs 105 crore in Q4 FY24 as compared to Rs 29 crore recorded in Q4 FY23.

Company’s EBITDA slipped 36 per cent to Rs 1,933 crore in the March 2024 quarter from Rs 3,033 crore reported in Q4 FY23. EBITDA margin dropped by 458 bps YoY to 13.7 per cent during the period under review.

The company’s revenue from crop protection was at Rs 15,080 crore (down 17.75 per cent YoY) and non agro stood at Rs 621 crore (down 9.21 per cent YoY). However, income from seeds business was at Rs 1,130 crore (up 30.33 per cent YoY).

UPL’s revenue from Europe rose by 10 per cent YoY. Income from North America declined 49 per cent YoY followed by India, down 24 per cent YoY and Latin America shed 23 per cent YoY during the period under review. Income from rest of the world increased 21 per cent YoY during the quarter.

During the quarter, net debt increased by $602 million vs previous year to $2.66 billion at the end of FY24 due to reduced factoring, and cash flow impact of decline in profitability.

Mike Frank, CEO, UPL Corporation, said, “We delivered significantly improved financial results in Q4 versus the two preceding quarters, in spite of the prevailing volatile and challenging market conditions. As compared to Q3, volumes recovered well and were in-line with LY, largely led by the strong performance of our high-margin differentiated and sustainable portfolio, which contributed 36 per cent of crop protection revenue vs 29 per cent LY. Our recent launches of Evolution, Feroce and Shenzi did exceedingly well, growing volumes by more than 50 per cent.

Furthermore, Advanta, our global seeds platform continued to see robust traction delivering revenue growth of 34 per cent and 38 per cent respectively for the quarter.

Company’s revenue from operations declined 15.03 per

Agro chems – Chemicals, Company News, Finance, World

Company’s revenue from Europe declined by 30 per cent YoY, followed by Latin America (down 28 per cent YoY) and India (down 20 per cent YoY).

The agrochemical major UPL Ltd has reported a consolidated net loss of Rs 1,217 crore in Q3 FY24 as against a net profit of Rs 1,087 crore recorded in Q3 FY23. Company’s revenue from operations declined 27.72 per cent YoY to Rs 9,887 crore in the quarter ended 31 December 2023. Loss before exceptional items and tax was at Rs 1,649 crore as against profit before exceptional items of Rs 1,515 crore reported in the same quarter a year ago.

Revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates, company mentioned. UPL’s income from North American tumbled 64 per cent YoY, revenue from Europe declined by 30 per cent YoY, followed by Latin America (down 28 per cent YoY) and India (down 20 per cent YoY) and rest of the world shed by 12 per cent YoY during the period under review.

UPL said that the revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

During the quarter, contribution profit jumped 54 per cent YoY to Rs 2,689 crore and contribution margin declined to 42.6 per cent from 42.6 per cent in Q3 FY23. Liquidation of high-cost inventory, and higher rebates to support channel partners, impacted contribution margin, as per the statement.

The company’s revenue from crop protection was at Rs 8,495 crore (down 30.68 per cent YoY) and non -agro came in at Rs 520 crore (down 9.25 per cent YoY). However, income from seeds business was at Rs 931 crore (up 2.08 per cent YoY)

Mike Frank, CEO, UPL Corporation, said, “Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable QoQ in the crop protection business but came off significantly as against with the high base of previous year amid intense post patent price competition.

However, we did see a pick-up in volumes in Latin America, and a double-digit growth in revenue in the RoW region. Our high margin differentiated and sustainable portfolio continued to outperform as revenue 2 share of this portfolio increased to 37% of crop protection revenue (ex-India) vs 28 per cent last year. Contribution margins too were down only marginally versus last year adjusted for the short-term impact of high-cost inventory liquidation and higher rebates to channel partners.

We continued to implement cost optimization initiatives to align our operations with the new reality, reducing SG&A expenses by 19 per cent YoY in Q3. We are well on track to reduce our SG&A by $100 million in FY25 (from the base of FY23). Going forward, while we are optimistic of a progressively improved performance in Q4FY24 and Q1FY25, we expect normalized business performance from Q2FY25. Our foremost priority is reducing debt. In-line with this, we have also recently announced a rights issue of upto $500 million and are exploring capital raise opportunities at platforms in addition to operational cash flows.”

Company’s revenue from Europe declined by 30

Agrotech, Company News, R&D, Sustainability, World

The state-of-the-art facility will develop innovative solutions for sustainable agriculture.

UPL Ltd., a global provider of sustainable agricultural solutions, announces the opening of its Global NPP Research Center in Ramos Arizpe, Mexico. The Global NPP Research Center, a state-of-the-art facility will advance natural solutions through scientific and applied excellence. This modern greenhouse with specialized equipment, will be a hub for experienced researchers, fostering collaborations with local and international universities and research centers, and serve as a platform for agricultural knowledge and innovative solutions.

Biosolutions refer to agricultural inputs developed with naturally-derived active ingredients, ranging from seaweed extracts to micro-organisms. UPL is a global leader in biosolutions and the extensive Natural Plant Protection (NPP) portfolio covers a range of applications, including increasing crop resilience to disease, pests, and environmental conditions, supporting crop nutrition, and improving soil health, while reducing residues and environmental impacts.

Mike Frank, CEO of UPL Corporation Ltd., said: “We are so proud to inaugurate the Global NPP Research Center today, this significant investment will continue to add value for growers and strengthen our focus on differentiated and sustainable solutions. This facility represents a significant milestone in advancing agricultural practices worldwide.”

Jai Shroff, Group UPL CEO & Chairman, said: “The NPP Research Center reflects UPL’s mission to Reimaging Sustainability and our OpenAg commitment to building an ecosystem of connectivity and collaboration. This Center of Excellence will help address key challenges such as heat and water stress, soil health and positively impact global food security.”

The state-of-the-art facility will develop innovative solutions

Agro chems – Chemicals, Company News, Finance, World

Company’s total income in Q2 FY 2023-24 was Rs 10,170 crore compared to Rs. 12,507 crores during the corresponding period in FY 2022-23.

Global agrochemical company, UPL Ltd. has reported financial results for the second quarter ended FY24 (July-Sep 2023).  Company has reported a consolidated net loss of Rs. 189 crores for the second quarter of 2023-24. Revenue and EBITDA for Q2 impacted by global channel destocking and elevated pricing pressure. Liquidation of high-cost inventory, higher than usual sales returns and rebates to support channel partners impacted contribution margin. Adjusting for this temporary impact, the H1FY24 contribution margins would be higher by 300 bps vs LY (instead of reported 48 bps Year to Year drop). Company’s total income in Q2 FY 2023-24 was Rs 10,170 crore compared to Rs. 12,507 crores during the corresponding period in FY 2022-23.

Differentiated and Sustainable portfolio continued to perform resiliently with higher volumes (+11 per cent YoY). Revenue share of this portfolio rose significantly to 38 per cent of crop protection revenue (from 30 per cent in Q2FY23) Reduced SG&A expenses by 3 per cent YoY to Rs 2,486 crore.

Seeds business continued its growth momentum as revenue grew by 10 per cent YoY in Q2 to INR 1,070 crore while EBITDA is marginally down. For H1FY24, revenue stood at Rs 2,131 crore (+17% YoY).

Commenting on the performance, Mike Frank, CEO – UPL Corporation Ltd., said ″The global agrochemical industry continues to go through a difficult phase with prices coming off significantly vis-àvis the high base of the previous year amid the elevated channel inventory levels and intense price competition. Given this backdrop, the distributors prioritized destocking, and focused on purchases at lower prices to bring down their average inventory cost. In particular, destocking had a significant impact in the US and Brazil during the first half.

Our revenue and profitability for Q2 were significantly impacted by these factors in line with rest of the industry. However, contribution margins improved by 300 bps YoY in H1FY24 adjusted for the short-term impact of high-cost inventory liquidation, higher than usual sales returns, and rebates to channel partners. We also saw a pick-up in volumes (+1% YoY) in the crop protection business (ex-India) led by the resilient performance of our differentiated and sustainable portfolio; revenue share of this portfolio increased to 38 per cent of crop protection revenue vs 30 per cent last year. Our cost reduction drive of $100 million over next two years is under implementation and we are on track to realize benefit of $50 million in FY24, bulk of which will be realized in H2FY24.

Going forward, we are optimistic of progressively improved performance in H2FY24 as key geographies of North America, LATAM and Europe enter major cropping season. The elevated inventory levels are expected to gradually subside with the farmgate demand continuing to be robust. In Europe, Asia, and LATAM (ex-Brazil), channel inventory levels have largely normalized; while in North America and Brazil, the scenario continues to gradually improve.

On the pricing front, most post patent molecule prices seem to have bottomed in Q2 and are now stabilizing. Overall, we are executing well in this challenging market and making changes to our operating model that will further improve our business as the cycle normalises. ″

Company’s total income in Q2 FY 2023-24

Agrotech, Biofuel industry, Company News, Environment, Sustainability, World

The search is on for AgTech Start-ups Advancing Natural and Biological Control Solutions for Sustainable Food Systems

UPL and Radicle Growth, have announced the Radicle Natural Plant Protection (NPP) Challenge by UPL. The Challenge sets out to invest $1.75M in start-up companies that are advancing natural and biological solutions to protect crops from biotic stresses such as bacteria, fungi, nematodes, insects, arachnids, and weeds and follows ‘The Radicle Carbon and Soil Challenge by UPL’ which saw $1.25 million invested in early-stage companies in 2022.

NPP is a business unit of UPL, offering growers an extensive portfolio of natural solutions to increase crop resilience and protection, improve nutrition, and support soil health. Over the past decade, there has been a growing demand for natural solutions as an alternative or complement to synthetic chemistries as means of protecting crops whilst safeguarding the environment.

Mike Frank, CEO of UPL Corporation Ltd. Said, “Amidst the multitude of challenges facing farmers and food systems, natural solutions are critical to advancing agriculture in a way that delivers prosperity for growers, consumers, and the environment. Guided by our OpenAg purpose, we’re thrilled to be working with Radicle Growth to seek out start-ups that are pioneering the next generation of game-changing solutions. We invite entrepreneurs who share our aspirations to apply and join our journey to Reimagine Sustainability.”

Kirk Haney, Managing Partner, Radicle Growth, said, “Feeding our growing population is of utmost importance. We recognise that to transform our agriculture system and advance sustainable solutions in the food value chain, we need to find new technologies that are working on natural and biological control solutions. We are excited to work collaboratively with UPL to find and fund the best entrepreneurs worldwide who are solving these issues.”

A $1 million investment will be made in The Challenge winner and a $750,000 investment in the second-place winner in order to accelerate their growth. Apply now at https://radicle.vc/upl-npp/

Investment decisions will be made during a ‘Pitch Day’ in March 2024. A judging panel of industry experts will hear from 4-6 finalists who will be chosen from the global applicant pool. In addition to the funding, the winners will also get access to advice from both UPL and Radicle senior executives to help accelerate their company’s business and technical efforts.

The search is on for AgTech Start-ups

Agro chems – Chemicals, Company News, Finance, India

FY23 EBITDA grew by 10 per cent YoY to Rs 11,178 crore as against Rs 10,165 crore in FY22.

 UPL Ltd. has reported financial results for the fourth quarter of FY23 (Jan-Mar 2023).  UPL’s fourth quarter of FY23 revenue grew by 4 per cent YoY to Rs 16,569 crore. The quarter was impacted by rapid decline in product prices and delays in planting season that resulted in headwinds for product placements.  FY23 revenue grew by 16 per cent YoY to Rs 53,576 crore, led by better product realizations (+10 per cent), favorable currency impact (+5%) and flat volumes. FY23 EBITDA grew by 10 per cent YoY to Rs 11,178 crore as against Rs 10,165 crore in FY22. EBITDA margins were lower mainly due to weaker-than-expected performance in Q4 impacted by headwinds in the post-patent space, which offset the healthy performance delivered during the first nine months..

Commenting on the performance, Jai Shroff, Chairman and Group CEO – UPL Ltd., said “We delivered a resilient set of results for FY23 despite facing significant headwinds in the final quarter. Thanks to the dedication, agility, and tenacity of our teams, we were able to deliver on most of our commitments. We reduced our gross debt by over $600 Mn and net debt by $440 Mn driven by improved cash flow from operations and a leaner working capital cycle. In-line with our priority of creating shareholder value, we created distinct pure play platforms during the year to bring in enhanced focus and operational freedom to pursue independent growth strategies thereby unleashing the growth potential of each of our distinct platforms.  Going forward, as we look ahead to FY24, we are well-positioned to deal with the market headwinds and deliver better profitability growth. In the longer-term, we remain confident of achieving our growth ambitions and transforming the food value chain with emphasis on sustainability.”

Mike Frank, CEO – UPL Global Crop Protection, said “FY2023 was a tale of two distinct periods, our performance in the first nine months delivered >20% growth in Revenue and EBITDA. The fourth quarter was an unusual one with pricing pressure and delayed purchases by channel in the post-patent space due to oversupply of certain molecules. Our focus in the last quarter was to grow share in key markets, liquidating most of our high-cost inventory, closely manage working capital and smartly set-up our inventory position for the next year. As a result, given our lean inventory position, we are well-placed to deal with the challenging market conditions which are likely to persist for first half of FY24, but also to benefit once the market begins to normalize thereafter. Backed by our superior manufacturing and product innovation capabilities, we remain confident of growing significantly faster than the market in FY24 and beyond “

FY23 EBITDA grew by 10 per cent

Agro chems – Pesticides, Company News, India, World

UPL Corporation, the flagship company of UPL Ltd for global operations, has appointed Mike Frank as the Chief Executive Officer (CEO) of UPL’s Global Crop Protection (CP) business which manages all CP assets outside of India. Mike will be a member of the UPL Crop Protection Board of Directors.

He joined UPL in early 2022 as President and Chief Operating Officer of UPL’s Crop Protection business based out of its London headquarters and plays a significant role in driving sustainable solutions in global food value chain networks to advance its OpenAg® purpose.

“As we continue to realign our businesses and strengthen our advancement to lead the pureplay crop protection market, we have been taking a more focused approach to our structure. Mike Frank is the natural choice to lead this transition, bringing extensive experience leading global agriculture companies, deep knowledge of innovative and digital technologies, and a proven track record of superior value creation for all stakeholders. He demonstrates an impressive leadership style, entrepreneurial mindset and a strong commitment to strengthening organisational culture”. Said Jai Shroff, Group CEO of UPL and Chairman of UPL Corporation.

UPL Corporation, the flagship company of UPL

Company News, People

Mike served as Executive Vice President and CEO, Nutrien Ag Solutions.

UPL, a leader in global food systems and sustainable agriculture technologies, has announced that it is appointing Mike Frank as President and Chief Operating Officer UPL Crop Protection. Mike brings deep industry knowledge and extraordinary ‘end-to-end’ expertise, gleaned from his years at Monsanto and most recently at Nutrien, where he served as Executive Vice President and CEO, Nutrien Ag Solutions.

Jai Shroff, Group CEO of UPL, said, “Agriculture is one of the only systems on the planet that has the ability to reshape and reverse the effects of climate change. Mike’s global perspective, entrepreneurial style and hands-on approach, coupled with a deep understanding of global food security challenges and driving passion for environmental and economic sustainability, makes him an excellent cultural fit to take UPL to the next level.”

Mike Frank said, “I’m very impressed with UPL’s leadership in sustainability and the OpenAg ‘Reimagining Sustainability’ platform, which takes a unique approach at bringing together the various stakeholders in the food and agriculture ecosystem, focusing on helping farmers, advancing new and more sustainable technologies and feeding a growing planet. It’s an honour to join this dynamic team.”

UPL Group is re-imagining sustainability across the breadth of its operations, powered by its OpenAg purpose to create sustainable growth for all.

Mike served as Executive Vice President and