Q3 2025 Agribusiness Earnings Results Highlights and Analysis

In Brazil, revenues were significantly up in the third quarter, resulting in higher revenues also for the first nine months compared to the previous year. Growth was driven by increased volumes, while the third quarter also experienced modest pricing increases. In the rest of LATAM lower volumes, prices, and revenues were reported in the third quarter and the first nine months, primarily in Paraguay and Argentina, due to channel destocking and just-in-time purchasing behavior.

Through the first nine months of 2025, channel inventory returned to pre-pandemic levels in most countries, allowing crop protection demand recovery. Pricing pressure remains high, driven by production over-capacity of active ingredients. Crop commodity prices remain stably low and coupled with the high-interest rate environment, farmer profitability remains tight leading to just-in-time purchasing patterns.

On the other hand side, I would say we have a healthy channel inventory. So demand substantially we see for our products. This is also why we are optimistic for the rest of the year that the Ag Solutions segment will deliver on its plans. Going forward, we see the business really in a competitive shape because we have last year taken a lot of measures, the restructuring of the glufosinate ammonium, which is now paying off and other efficiency measures taken in the division, which really give us a good competitive position. So I would say, despite the low price levels that we currently still see in the business, we feel good about the business also going into the next year. But certainly, it will be helpful at one point in time if the soft commodity cycle is then gaining momentum to the upside again. So with regards to the partial IPO, we are saying it's a partial IPO because we have no intention to launch 100% of the shares at the inception. We use the term partial IPO to show and to say that this business also beyond the IPO event will be a business that is consolidated into our group financials, and it's a business that we also like. We have not set any definitive portion of shares that we are going to launch on IPO at this point in time. We will do so at the right moment in time. And then what happens over time remains to be seen. But clearly, at inception, it will be a partial IPO, and this is what we are clearly saying.