9 10 8 Reconciliation of Adjusted EBITDA and Adjusted Net Profit (Loss) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------|---------|----------------------------------|---------------------|----------------------------------------------|--------|--------|----------------------------------------------|-------------| | Consolidated Results | | (in millions of Brazilian reais) | Results in BRL \n | 3Q23 3Q24 9M23 9M24 3Q23 3Q24 9M23 9M24 | ...

分组1 - Lavoro Limited reported a quarterly loss of $0.52 per share, significantly worse than the Zacks Consensus Estimate of $0.04, marking an earnings surprise of -1,400% [1] - The company's revenues for the quarter ended March 2024 were $514.23 million, missing the Zacks Consensus Estimate by 20.10%, and showing an increase from $486.41 million year-over-year [2] - Lavoro Limited has not surpassed consensus EPS estimates over the last four quarters, indicating ongoing challenges in financial performance [2] 分组2 - The stock has underperformed, losing approximately 30.6% since the beginning of the year, while the S&P 500 has gained 10.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.23 on revenues of $314.7 million, and for the current fiscal year, it is -$0.36 on revenues of $2.06 billion [7] - The Agriculture - Operations industry, to which Lavoro Limited belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, which may negatively impact stock performance [8]

Core Insights - Lavoro Limited reported a 6% year-over-year revenue growth to $514.2 million in 3Q24, driven by market share gains and volume growth despite input price deflation in Brazil and Colombia [1][4][6] - The company experienced a net loss of $64.8 million, an improvement from a loss of $74.3 million in the same quarter last year, primarily due to the absence of non-recurring expenses from the previous year [1][4][5] - Adjusted EBITDA decreased significantly to $3.7 million from $24.8 million in the prior year, reflecting lower gross profit and increased operating expenses [1][4][5] Financial Performance - Consolidated revenue increased by 6% year-over-year to $514.2 million, with all three operating segments contributing positively [4][6] - Gross profit decreased by 16% to $60.2 million, with gross margins narrowing by 310 basis points to 11.7% due to input price deflation and a less favorable sales mix [1][4][5] - The Crop Care segment showed strong performance, with revenue rising 30% to $22.1 million, mainly driven by growth in biological products [1][4][5] Segment Analysis - Brazil Ag Retail segment revenue grew by 5% to $450 million, supported by a 61% increase in Grains revenue to $87.5 million, while Inputs revenue declined by 1% [4][5][12] - Latam Ag Retail segment revenue increased by 5% to $50.5 million, driven by strong fertilizer sales volumes, despite input price declines [15][16] - Crop Care segment revenue increased by 30% to $22.1 million, with gross profit up 14% to $9.1 million, although gross margins decreased by 550 basis points to 41.2% [18][19][20] Market Conditions - The company noted that farmers in Brazil are currently more risk-averse, leading to postponed purchasing decisions, which may adversely affect future results [3][4] - The impact of El Nino has been significant, affecting farmer profitability and delaying repayments to retailers, although Lavoro's credit standards have mitigated some risks [3][4] - Despite short-term challenges, the company remains optimistic about the long-term fundamentals for Brazilian farmers and aims to improve commercial efficiency and technical sales capabilities [3][4]

3Q24 revenue grew 6% to $514.2 million. Growth was driven by continued market share gains and volume growth, which mitigated ongoing deflation in input prices throughout Brazil and Colombia. Gross profit decreased -16% to $60.2 million. Gross margins narrowed by -310 basis points to 11.7%, primarily due to the ongoing input price deflation and a less favorable sales mix resulting from a greater proportion of low margin Grain revenue. The Crop Care segment remained a strong performer, with revenue rising 30% ...

SÃO PAULO, Brazil, May 24, 2024 (GLOBE NEWSWIRE) -- Lavoro Limited (Nasdaq: LVRO; LVROW), the first U.S.-listed agricultural inputs retailer in Latin America, will issue its financial results for the fiscal third quarter 2024 after market close on Monday, June 3, 2024. Lavoro management will host a conference call and audio webcast that afternoon at 6:00 p.m. ET (7:00 p.m. BRT) to discuss the results. Conference Call Details Title: Lavoro Fiscal Third Quarter 2024 Earnings Conference Call Event Date: Monday ...

SÃO PAULO, Brazil, May 24, 2024 (GLOBE NEWSWIRE) -- Lavoro Limited (Nasdaq: LVRO; LVROW), the first U.S.-listed agricultural inputs retailer in Latin America, will issue its financial results for the fiscal third quarter 2024 after market close on Monday, June 3, 2024. Lavoro management will host a conference call and audio webcast that afternoon at 6:00 p.m. ET (7:00 p.m. BRT) to discuss the results. Conference Call Details Title: Lavoro Fiscal Third Quarter 2024 Earnings Conference Call Event Date: Monday ...

SÃO PAULO, Brazil, May 10, 2024 (GLOBE NEWSWIRE) -- Lavoro (NASDAQ:LVRO), the first U.S.-listed pure-play agricultural inputs distributor in Latin America, will participate in the BMO Global Farm to Market Conference in New York, NY, on May 15-16, 2024. Ruy Cunha, Chief Executive Officer, will participate on a panel titled "AgTech Disruption Across the Farming Value Chain", on Wednesday, May 15, 2024 at 2:00 pm ET. Mr. Cunha will also host a presentation on Thursday, May 16, 2024 at 8:45 am ET. Management w ...

Tigran Karapetian - Head of Investor Relations Ruy Cunha - Chief Executive Officer Julian Garrido - Chief Financial Officer Gustavo Modenesi - Chief Strategy Officer Welcome to Lavoro's Fiscal Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation. Please note that this conference call is being recorded and a replay will be made available on the Company's Investor Relati ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 11% year-over-year to $483 million, with a 3% increase in constant currency terms [8][20] - Adjusted EBITDA declined by 75% to $11 million, leading to a contraction in adjusted EBITDA margin to 2.3% [20][26] - Gross profit decreased by 34% to $59.5 million, with gross margin contracting by 850 basis points to 12.3% [45] Business Line Data and Key Metrics Changes - Inputs revenue grew by 5%, driven by volume growth that offset price declines [8] - Grains revenue surged by 109%, attributed to increased customer interest in barter transactions [8] - Brazil retail revenue rose by 15%, with crop protection, fertilizers, and specialty products increasing by 54%, 53%, and 33% respectively [24] Market Data and Key Metrics Changes - Latam retail revenue decreased by 1% to $66.3 million, impacted by pricing headwinds and supply shortages [9] - Crop care revenue fell by 1% to $35.7 million, primarily due to price declines in agrochemicals [25] - The impact of El Nino has led to severe drought conditions in Brazil, affecting planting and crop yields [5][47] Company Strategy and Development Direction - The company is focusing on mitigating short-term impacts while positioning itself for market recovery, aiming to capitalize on expected improvements in the agricultural sector [28] - Lavoro is expanding its market share by hiring experienced sales consultants and enhancing logistics to meet last-minute orders [30][49] - The company is adjusting its financial guidance to reflect the impact of El Nino and slower recovery in distribution margins, forecasting adjusted EBITDA between $80 million and $110 million [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the current environment is the most challenging since 2014, with significant deflationary pressures affecting profitability [20][50] - The company expects a slower recovery compared to previous cycles due to high inventory levels and the impact of climate events [50][52] - Despite challenges, management believes that Brazilian farmers are in a strong position and will see recovery in margins next year [52] Other Important Information - The company faced delays in farmers' purchasing decisions, pushing revenue opportunities into future quarters [10] - The provision for expected credit losses increased due to the impact of El Nino on payment schedules [11] - The company is experiencing a significant destocking process, particularly in crop protection products [59] Q&A Session Summary Question: How does the current market position compare to other players? - Management highlighted that their strong logistics and ability to fulfill last-minute orders have contributed to market share gains despite a tough environment [30] Question: What are the expectations regarding the impact of El Nino? - Management indicated that the current El Nino is severe, with significant replanting of soybeans, and the market dynamics are challenging to predict [82] Question: How is the company addressing the destocking issue? - The focus is on normalizing inventory levels, particularly in crop protection, with expectations of improvement over the coming months [66][59]

Financial Performance - FY1Q24 - Lavoro's revenue increased by 11% year-over-year to $483.1 million, driven by volume growth in crop protection, fertilizers, and specialties[12, 17] - Gross profit decreased by 34% year-over-year to $59.5 million, with gross margin declining by 850 bps to 12.3%[18] - Adjusted EBITDA decreased by 75% year-over-year to $11.1 million, with Adjusted EBITDA margin contracting by 790 bps to 2.3%[8] - Brazil Ag Retail revenue increased by 15%, driven by improved unit volumes of crop protection (+54% y/y), fertilizer (+53%), and specialties (+33%)[12] Market and Guidance Update - Lavoro is updating its FY2024 financial guidance, with Adjusted EBITDA now forecasted to range between $80 million and $110 million[10] - The Ag Retail Market projection for Crop Year '23/'24 is revised to -25% y/y (vs prior -20% y/y)[20] - Lavoro added new experienced RTVs with a client book amounting to an annualized revenue potential of $120 million YTD[11] Challenges and Headwinds - A disruptive El Nino caused severe drought conditions in Brazil, impacting the 1st soybean crop and likely to result in delay planting & planted area reductions for the 2nd corn crop (safrinha)[19] - The forecast for the 23/24 market has been revised down from -21-22% to -23%, driven by safrinha (~25-30% of Brazil ag inputs market)[37] - Industry order banks for Safrinha (2nd Corn) as % of expected inputs demand is 30% behind prior year[35]