Lavoro (US:LVRO)2024-01-24 22:24Financial 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]