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About Lavoro Limited
Lavoro Limited (Nasdaq: LVROW) is a prominent player in the Latin American agricultural inputs retail market, with operations spanning Brazil, Colombia, and Uruguay. The company specializes in the distribution of essential agricultural inputs, including crop protection products, seeds, fertilizers, and specialty items, catering to the diverse needs of farmers across the region. By focusing on enhancing agricultural productivity, Lavoro plays a pivotal role in supporting food security and sustainable farming practices in Latin America.
Core Business Segments
Lavoro's operations are organized into three primary segments, each contributing to its overall market presence:
- Brazil Ag Retail: This segment represents the largest portion of Lavoro's revenue and includes companies dedicated to the distribution of agricultural inputs within Brazil. The segment benefits from the country's vast agricultural landscape and the growing demand for modern farming solutions.
- Latam Ag Retail: Focused on markets outside Brazil, primarily Colombia, this segment extends Lavoro's reach across Latin America, addressing the unique agricultural needs of the region.
- Crop Care: This segment encompasses the production and distribution of specialty products, further strengthening Lavoro's vertical integration and value proposition.
Market Position and Competitive Landscape
Lavoro stands out as the first U.S.-listed pure-play agricultural inputs retailer in Latin America. The company leverages its scale, verticalized business model, and strategic focus on specialty products to differentiate itself in a competitive market. Its operations are deeply integrated into the agricultural value chain, enabling it to provide tailored solutions that meet the evolving needs of farmers. Despite challenges such as fluctuating input costs and liquidity constraints in the farming sector, Lavoro has demonstrated resilience by focusing on operational efficiency and market share growth.
Revenue Model and Industry Dynamics
Lavoro generates revenue primarily through the direct sale of agricultural inputs. Its Brazil Ag Retail segment is the most significant contributor, reflecting the country's role as a global agricultural powerhouse. The company operates in a market characterized by high demand for productivity-enhancing inputs but also faces challenges such as economic volatility and financing difficulties for farmers. By aligning its offerings with market needs and leveraging its extensive distribution network, Lavoro maintains a competitive edge in the agricultural inputs industry.
Key Value Proposition
Lavoro's primary value proposition lies in its ability to deliver high-quality agricultural inputs that enhance crop yields and farm profitability. Its vertical integration allows it to control multiple aspects of the supply chain, from production to retail, ensuring consistent quality and availability. Additionally, the company's focus on specialty products positions it as a preferred partner for farmers seeking innovative solutions to complex agricultural challenges.
Conclusion
As a significant player in the Latin American agricultural inputs market, Lavoro Limited combines scale, expertise, and innovation to address the critical needs of the farming community. By focusing on operational excellence and customer-centric solutions, the company continues to play a vital role in advancing agricultural productivity and sustainability in the region.
Lavoro (LVRO) reported fiscal Q1 2025 results with consolidated revenue declining 13% year-over-year to R$2.05 billion, primarily due to input price deflation in Brazil Ag Retail. Gross profit increased 10% to R$321.2 million, with margins expanding 320 bps to 15.6%. The company's Crop Care segment showed strong growth with revenue up 68% to R$293.7 million.
The company reported a net loss of R$267.1 million in Q1, compared to R$71.0 million loss in the prior year, mainly due to deferred tax asset changes and higher finance costs. Adjusted EBITDA decreased 5% to R$54.4 million as higher SG&A expenses offset gross profit improvements.
Due to significant liquidity constraints and tightening inventory financing conditions in Brazil's agricultural sector, Lavoro has revised its FY2025 outlook. The company now projects consolidated revenue between R$6.50-7.50 billion and no longer expects Adjusted EBITDA growth relative to FY2024.
Lavoro (Nasdaq: LVRO; LVROW), Latin America's first U.S.-listed agricultural inputs retailer, has scheduled its fiscal first quarter 2025 earnings conference call for February 3rd, 2025, at 8:00 a.m. ET (10:00 a.m. BRT). The financial results will be released before the market opens on the same day.
The conference call will be accessible via phone at 1-877-407-9716 (U.S.) and 1-201-493-6779 (International). A replay will be available until February 17, 2025, through 1-844-512-2921 (U.S.) and 1-412-317-6671 (International) with passcode 13750779. Additionally, a live audio webcast will be available in the Events section of Lavoro's Investor Relations website.
Lavoro (LVRO) reported FY2024 revenue of $1.89 billion, up 5% year-over-year, driven by market share gains and sales volume growth despite input price deflation. However, gross profit decreased 19% to $268.4 million, with margins compressing by 430 basis points to 14.2%. The Crop Care segment showed strong performance with revenue rising 24% to $150.7 million. Net loss increased to $154.6 million from $43.7 million last year, reflecting lower gross profit, higher finance costs and tax headwinds. Adjusted EBITDA declined to $53.4 million from $150.1 million. For FY2025, the company expects consolidated revenue between $1.50-1.60 billion.
Lavoro (Nasdaq: LVRO; LVROW), the first U.S.-listed agricultural inputs retailer in Latin America, has announced its fiscal fourth quarter 2024 earnings conference call schedule. The company will release its financial results on Thursday, October 31, 2024, after market close. The conference call and audio webcast will be held on Friday, November 1, 2024, at 8:30 a.m. ET (9:30 a.m. BRT).
Participants can join the call using the following numbers: 1-877-407-9716 (U.S.) or 1-201-493-6779 (International). A replay will be available until November 15, 2024, by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) with passcode 13749070. The live audio webcast can be accessed through the Events section on Lavoro's Investor Relations website.
Lavoro (Nasdaq: LVRO), the first U.S.-listed pure-play agricultural inputs retailer in Latin America, has secured a new R$310 million (approximately USD$55 million) credit facility with a three-year term. This facility is financed through a newly established Agribusiness Credit Rights Investment Fund (FIDC-Fiagro), which will invest in agribusiness receivables sold to Lavoro. The proceeds will support Lavoro's working capital needs and other general corporate purposes.
This is Lavoro's second FIDC-Fiagro facility, following a R$160 million Fiagro established in 2022. The issuance is split into two series maturing in July 2027, managed by Kanastra Administração de Recursos, with Itaú BBA as the lead coordinator. The offering is exclusive to primary investors such as Itaú BBA and Itaú Asset.
Lavoro (Nasdaq: LVRO, LVROW) reported a 6% increase in 3Q24 revenue to $514.2 million, driven by market share gains and volume growth in Brazil and Colombia. However, gross profit fell 16% to $60.2 million due to input price deflation and an unfavorable sales mix. The Crop Care segment performed well, with revenue up 30% to $22.1 million and gross profit increasing 14% to $9.1 million. Net loss narrowed to $64.8 million from $74.3 million, attributed to the absence of last year's Nasdaq listing expenses. Adjusted EBITDA dropped to $3.7 million from $24.8 million, impacted by lower gross profit and higher operating expenses. Lavoro updated its FY2024 guidance in light of challenging market conditions, projecting consolidated revenue between $1.80 billion and $1.95 billion and Adjusted EBITDA between $46 million and $55 million.
Lavoro reported a 6% increase in revenue for Q3 2024, reaching $514.2 million. This growth was driven by market share gains and volume growth, despite deflation in input prices in Brazil and Colombia. However, gross profit dropped by 16% to $60.2 million, and net loss narrowed to $64.8 million from $74.3 million in the prior year. Adjusted EBITDA fell significantly from $24.8 million to $3.7 million due to lower gross profit and higher operating expenses. The Crop Care segment performed well, with a 30% increase in revenue to $22.1 million. Lavoro updated its FY2024 guidance due to challenging market conditions, projecting revenue between $1.80 billion and $1.95 billion, and Adjusted EBITDA between $46 million and $55 million. CEO Ruy Cunha noted that farmer profitability is expected to improve in the 2024/2025 crop year, but near-term challenges include delayed purchasing decisions and the impact of El Nino on farmer repayments.
Lavoro (Nasdaq: LVRO; LVROW), the first U.S.-listed agricultural inputs retailer in Latin America, will announce its fiscal third quarter 2024 results on June 3, 2024, after market close.
A conference call and webcast will be held at 6:00 p.m. ET (7:00 p.m. BRT) to discuss the results. Interested parties can join via provided U.S. and international phone numbers or access the live audio webcast through the company's investor relations website. A replay will be available until June 17, 2024.
Lavoro, a pure-play agricultural inputs distributor, will participate in the BMO Global Farm to Market Conference in NY on May 15-16, 2024. CEO Ruy Cunha will speak on AgTech Disruption Across the Farming Value Chain. The company will also host a presentation and provide a live webcast link for interested parties.