Lavoro (US:LVRO)2025-02-03 13:25Financial Performance - FY1Q25 - Revenue decreased by 13% year-over-year to R$205 billion, or a 24% decrease in USD terms to $3702 million[6] - Gross Profit increased by 10% year-over-year to R$3212 million, but decreased by 4% in USD terms to $579 million[6] - Adjusted EBITDA decreased by 5% year-over-year to R$544 million, or a 16% decrease in USD terms to $98 million[6] - Brazil Ag Retail revenue declined by 23% in local currency and 32% in USD[6] - Crop Care revenue grew by 68% in local currency and 48% in USD[6] Financial Outlook - FY2025 (Revised) - Revised FY2025 revenue guidance to R$65 billion to R$75 billion, equivalent to $112 billion to $128 billion USD[21] - Revised FY2025 inputs revenue guidance to R$59 billion to R$69 billion, equivalent to $102 billion to $118 billion USD[21] - The company no longer expects Adjusted EBITDA to grow relative to FY2024[21] Market Dynamics - Improved outlook for Brazilian farmer profitability for crop year '24/'25 due to higher commodity prices and yield expectations[6] - Farmers' liquidity restrictions led to a decline in cash-based inputs purchases, increasing working capital financing requirements[6] - Judicial recovery events tightened inventory financing conditions[6] Strategic Initiatives - Lavoro expects to close approximately 70 stores in Brazil by the end of FY25 as part of retail network optimization efforts[6]