Matt De Yoe

Matt De Yoe sought to understand the Rynaxypyr EBITDA decline from partner sales, questioning the implied margin reduction given the $50 million EBITDA decline on $200 million in partner revenue. Matt also asked about the top-line confidence for branded Rynaxypyr, specifically regarding flat volumes despite competition and assumptions on pricing after Q4 reductions.

Answer

Andrew Sandifer, EVP and CFO, stated they do not provide specific numbers for the waterfall chart but confirmed volume and price reductions impact Rynaxypyr partner sales and profitability. For branded Rynaxypyr, flat profitability is expected due to a combination of price reductions on less differentiated solo formulations, a significant mix shift towards higher-priced advanced formulations (expected to be 50% of sales in 2026), volume gains from broader penetration, and continued cost reductions. Pierre Brondeau, Chairman, CEO and President, emphasized the crucial role of the mix shift, noting that advanced formulations do not see price decreases.

Matt De Yoe inquired about the expected $50 million EBITDA decline from Rynaxypyr partner sales, questioning the implied margin reduction, and sought confidence drivers for flat branded Rynaxypyr volumes and price assumptions given Q4 price reductions.

Answer

Andrew Sandifer, EVP and CFO, clarified that the EBITDA decline from partner sales is due to both volume and price reductions, without confirming specific numbers from the slide. Pierre Brondeau, Chairman, CEO and President, explained that branded Rynaxypyr's flat profitability is driven by a significant mix shift (50% to advanced formulations in 2026), volume gains, and lower costs, offsetting price reductions on less differentiated solo formulations.