Kristen Owen: Thank you so much. I’ll take the rest of my questions offline.
Federico Trucco: Thank you, Kristen.
Operator: Thank you, Ms. Owen. Our next question is from Bobby Burleson with Canaccord. You may proceed.
Bobby Burleson: Great. Thanks for taking my questions. So maybe the first one, other callers have touched on this, but there’s been a lot of volatile weather, both South America and California, and maybe that changes seasonal patterns a little bit. But can you just talk a little bit about the health or perspective of the California farmer right now? They had drought conditions followed by flooding conditions. And I’m just curious what you think the setup is for the next 6months here?
Federico Trucco: Yes. Hi, Bobby. Thanks for joining the call. It always feels like there’s something missing, not to finally realize the California opportunity for the products that we have. But I think that we expect the situation to improve. Well, we expected the situation to improve last year. And finally, because of the flooding, we weren’t able to fully materialize on what we expected. So we do expect that business to get to a more normal setting. And if that is the case, and after inventories have been cleaned up, which is what also happened over the last few quarters, I think we can resume growth there because we do have a very compelling product offering for cash crops and high value agriculture in that particular state.
And that is almost our home state in many ways, because that’s where the Marrone Bio Innovations business originated. So we expect it to be positive or more positive than what it’s been over the last two years. But after sort of having had some frustration on that front, we’re a little bit more conservative in terms of our statements regarding California ag input business.
Bobby Burleson: Understood. And then just to follow up, maybe a little bit different question. With the inventory drawdown that we’ve been seeing kind of afflicting the synthetic chemicals demand, it seems like that’s been less of an issue for biologics. I’m just kind of curious, across your portfolio, do you feel like that headwind is kind of concluding here? Is there expectation that it lingers a little bit longer? What’s the thoughts around how distended this inventory drawdown could be?
Enrique Lopez Lecube: Bobby, this is Enrique. Good to have you on the call. Look, I think what we have been seeing is what you just mentioned, that it has affected less on biologics. Particularly in cash crops, I think that it’s mostly a dynamic that has been more relevant in row crops. But in any case, the 1 product category that for us is important, very important there in terms of profitability, are our adjuvants. And what we’ve seen is that there’s some headwinds, but not as big as what other industry participants that have a big offering in chemicals for Crop Protection have been facing. So it’s something that we’ve been able to navigate. And that’s why you saw that in the quarter, we decreased sales of Crop Protection, getting away from lower margin products that might need a push into the markets and focusing the sales force on higher margin products.
So we tend to do that, which is not always the best thing, if you want to show top-line results, but it might be a good thing to do if you care about gross profit and cash generation.
Bobby Burleson: Great, thanks. And maybe if I can just sneak 1 more in here, you were talking about the downstream benefits on HB4 with this Moolec partnership on soy protein. And curious, you guys have had a relationship clearly with Moolec, financial relationship, et cetera. And I’m wondering, what are the partnership opportunities that this kind of helps pave the way for outside of Moolec? Do you see a robust opportunity for similar downstream arrangements with other players?
