Evogene's 2025 Q1 Earnings Call: Contradictions in Castor Seed Sales, Financial Stability, and Production Dynamics

Castor seed sales and demand, financial stability and cash flow, castor seed production and demand, and cash situation and longevity are the key contradictions discussed in Evogene's latest 2025Q1 earnings call.



Revenue Trends and Drivers:
- Evogene Ltd. reported total revenues of approximately $2.4 million in Q1 2025, compared to $4.2 million in Q1 2024.
- The decline was primarily due to the absence of large license fee payments received in Q1 2024. Instead, the revenues were driven by an increase in seed sales by Casterra.

Operational Efficiency and Cost Management:
- Total operating expenses net decreased to approximately $5 million in Q1 2025 from $8 million in Q1 2024.
- This decrease was mainly due to a reduction in Lavie Bio's and Biomica's operating activity and an expense reduction plan implemented by Evogene.

Strategic Asset Sales:
- Evogene announced the acquisition of most of Lavie Bio's activity by ICL for an aggregate value of $15.25 million, with additional $3.5 million for the MicroBoost AI tech-engine.
- This transaction is expected to generate value for Evogene through direct sales and future dividends, strengthening its financial position.

Subsidiary Performance and Growth:
- Casterra delivered 250 tons of castor seeds in the first quarter of 2025, surpassing the 215 tons delivered in all of 2024.
- This was driven by increased marketing and sales efforts in Brazil and ongoing proof-of-concept trials for grain cultivation.