Lavoro Limited (Nasdaq: LVRO, LVROW), the first
U.S. listed pure-play agricultural inputs retailer in Latin
America, today announced its financial results for the fiscal first
quarter of 2025, which ended on September 30, 2024.
Ruy Cunha, CEO of Lavoro, commented, “Our 1Q25 results reflect a
continuation of the trends observed in recent quarters across our
operating segments, with strong growth in Crop Care, relative
stability for Latam Ag Retail despite market headwinds, and gradual
gross margin recovery in Brazil Ag Retail, which expanded by 350
basis points year-over-year.”
“While farmer sentiment and profitability projections continued
to improve in Brazil, liquidity constrains in the sector, which
were already significant, escalated considerably towards the end of
the year. Judicial recovery events, including that of a major ag
retailer, triggered a sharp increase in risk aversion among
suppliers and financial institutions, leading to a significant
tightening in inventory financing conditions for Lavoro and other
industry peers.”
“As direct consequence, Lavoro’s commercial activity in Brazil
was severely impacted by inventory shortages in key categories
throughout November and December, two critical months for the first
soybean crop. In early January, successful renegotiations with key
suppliers helped partially ease these bottlenecks, though inventory
replenishment and new farmer purchase order activity have yet to
fully normalize. Thus, we are revising our FY2025 guidance to
reflect these new developments.”
Mr. Cunha concluded. “Looking ahead, as we navigate through
these near-term disruptions, we remain committed to executing on
the factors within our control and implementing strategic measures
to ensure Lavoro is well-positioned to capitalize as early signs of
end-market recovery continue to gain momentum. The cost-saving
initiatives mentioned in the last earnings call around retail
network optimization and fixed cost rationalization are now in
motion, and we expect these measures to yield benefits starting in
2H25.”
1 Financials presented in US dollars in throughout this release
are converted using the following average period USD/BRL exchange
rate: 5.546 for 1Q25 and 4.883 for 1Q24.2 Adjusted EBITDA and
Adjusted Profit/Loss are non-IFRS measures. Refer to the
reconciliation tables later in this release for further
details.
1Q25 Financial Highlights1
- 1Q25 consolidated revenue decreased by
-13% year-over-year (y/y) to R$2.05 billion reais (-24% in USD
terms), reflecting a decline of -9% (-20% in USD) in Inputs
revenue, and a fall of -52% (-57% in USD) in Grains revenue
associated with our barter operations. At the segment level, Crop
Care revenue increased by 68% y/y (+48% in USD) and Latam Ag Retail
revenue increased by 4% y/y (-8% in USD), while Brazil Ag Retail
revenue fell by -23% (-32% in USD), the latter being adversely
impacted by lingering effects of last year’s inputs price declines
and farmer liquidity constrains.
- Consolidated gross profit grew by 10%
to R$321.2 million in 1Q25 (-4% in USD), including growth from all
three segments. Gross margins expanded 320 bps y/y to 15.6%,
reflecting improvements in Brazil Ag Retail distribution margins
related to better inventory cost positioning more than offsetting
contraction in Crop Care, driven primarily by product mix. Gross
margins as % of Inputs revenue improved 280 bps y/y to 16.5%,
reflecting similar drivers.
- Net loss was R$267.1 million in 1Q25,
compared to R$71.0 million in the prior year quarter. The R$196.1
million increase was largely attributable to changes in deferred
tax assets ($152.1 million contribution to net loss) and higher
finance costs (R$60.7 million increase y/y), which more than offset
gross profit improvement (R$27.9 million increase y/y). In USD
terms, net loss was $48.2 million, compared to $14.5 million in
1Q24. Adjusted Net Loss was R$269.2 million, compared to Adjusted
Net Loss of R$42.9 million in the prior year quarter, with similar
key drivers
- Adjusted EBITDA decreased -5% to R$54.4
million, as higher SG&A expenses, driven by personnel costs and
expired inventory provisions, more than offset the increase in
gross profit. In USD terms, Adjusted EBITDA was $9.8 million, a
decrease of -16% compared to 1Q24.
1 Adjusted EBITDA and Adjusted Profit/Loss are non-IFRS
measures. Please see reconciliation tables elsewhere in this
release.
|
Consolidated Results (BRL) |
|
1Q24 |
1Q25 |
Chg. % |
| (in millions of Brazilian
reais) |
|
|
|
|
| |
|
|
|
|
|
Revenue by Segment |
|
2,366.0 |
2,052.7 |
(13%) |
| Brazil Ag Retail |
|
2,017.9 |
1,549.9 |
(23%) |
| Latam Ag Retail |
|
324.2 |
337.0 |
4% |
| Crop Care |
|
175.0 |
293.7 |
68% |
| Intercompany eliminations |
|
(151.2) |
(127.9) |
|
| |
|
|
|
|
|
Revenue by Category |
|
2,366.0 |
2,052.7 |
(13%) |
| Inputs revenue |
|
2,140.0 |
1,943.1 |
(9%) |
| Grains revenue |
|
226.0 |
109.6 |
(52%) |
|
|
|
|
|
|
|
Gross Profit |
|
293.3 |
321.2 |
10% |
| Brazil Ag Retail |
|
176.3 |
189.0 |
7% |
| Latam Ag Retail |
|
44.7 |
47.8 |
7% |
| Crop Care |
|
75.9 |
84.3 |
11% |
| Intercompany elim. |
|
(3.6) |
0.1 |
|
| |
|
|
|
|
| Gross
Margin |
|
12.4% |
15.6% |
320 bps |
|
Brazil Ag Retail |
|
8.7% |
12.2% |
350 bps |
| Latam Ag Retail |
|
13.8% |
14.2% |
40 bps |
| Crop Care |
|
43.3% |
28.7% |
-1460 bps |
|
|
|
|
|
|
|
Gross Margin (% of Inputs revenue) |
|
13.7% |
16.5% |
280 bps |
| Brazil Ag Retail |
|
9.7% |
12.8% |
310 bps |
| Latam Ag Retail |
|
15.2% |
15.9% |
70 bps |
| Crop Care |
|
43.3% |
28.7% |
-1460 bps |
|
|
|
|
|
|
| SG&A (excl. D&A) |
|
(270.1) |
(275.1) |
2% |
| Other operating income
(expense) |
|
0.4 |
1.3 |
|
|
EBITDA |
|
23.6 |
47.4 |
101% |
| (+) Adjustment items |
|
33.7 |
7.0 |
|
|
Adjusted EBITDA |
|
57.2 |
54.4 |
(5%) |
| Brazil Ag Retail |
|
48.2 |
45.1 |
(6%) |
| Latam Ag Retail |
|
15.2 |
10.4 |
(32%) |
| Crop Care |
|
29.0 |
35.9 |
24% |
| Corporate & Intercompany
elim. |
|
(35.2) |
(37.1) |
|
|
|
|
|
|
|
| Adjusted EBITDA Margin % |
|
2.4% |
2.7% |
20 bps |
| Adjusted EBITDA Margin (% of
Inputs) |
|
2.7% |
2.8% |
10 bps |
| |
|
|
|
|
| Share of profit of an
associate |
|
(1.0) |
10.2 |
|
| D&A (incl. PPA
amortization) |
|
(50.2) |
(43.9) |
|
| Finance income (costs) |
|
(129.0) |
(189.7) |
|
| Income taxes, current and
deferred |
|
85.5 |
(91.1) |
|
|
Profit (loss) |
|
(71.0) |
(267.1) |
|
| (+) Adjustment items |
|
42.5 |
(3.2) |
|
| (+) Income tax impact of
adjustments |
|
(14.5) |
1.1 |
|
|
Adjusted Profit/Loss |
|
(42.9) |
(269.2) |
|
|
Consolidated Results (USD) |
|
1Q24 |
1Q25 |
Chg. % |
| (in millions of US
dollars) |
|
|
|
|
| |
|
|
|
|
|
Revenue by Segment |
|
484.6 |
370.2 |
(24%) |
| Brazil Ag Retail |
|
413.3 |
279.5 |
(32%) |
| Latam Ag Retail |
|
66.4 |
60.8 |
(8%) |
| Crop Care |
|
35.8 |
53.0 |
48% |
| Intercompany eliminations |
|
(31.0) |
(23.1) |
|
| |
|
|
|
|
|
Revenue by Category |
|
484.6 |
370.2 |
(24%) |
| Inputs revenue |
|
438.3 |
350.4 |
(20%) |
| Grains revenue |
|
46.3 |
19.8 |
(57%) |
|
|
|
|
|
|
|
Gross Profit |
|
60.1 |
57.9 |
(4%) |
| Brazil Ag Retail |
|
36.1 |
34.1 |
(6%) |
| Latam Ag Retail |
|
9.1 |
8.6 |
(6%) |
| Crop Care |
|
15.5 |
15.2 |
(2%) |
| Intercompany elim. |
|
(0.7) |
0.0 |
|
| |
|
|
|
|
| Gross
Margin |
|
12.4% |
15.6% |
320 bps |
|
Brazil Ag Retail |
|
8.7% |
12.2% |
350 bps |
| Latam Ag Retail |
|
13.8% |
14.2% |
40 bps |
| Crop Care |
|
43.3% |
28.7% |
-1460 bps |
|
|
|
|
|
|
|
Gross Margin (% of Inputs revenue) |
|
13.7% |
16.5% |
280 bps |
| Brazil Ag Retail |
|
9.7% |
12.8% |
310 bps |
| Latam Ag Retail |
|
15.2% |
15.9% |
70 bps |
| Crop Care |
|
43.3% |
28.7% |
-1460 bps |
|
|
|
|
|
|
| SG&A (excl. D&A) |
|
(55.3) |
(49.6) |
(10%) |
| Other operating income
(expense) |
|
0.1 |
0.2 |
|
|
EBITDA |
|
4.8 |
8.5 |
77% |
| (+) Adjustment items |
|
6.9 |
1.3 |
|
|
Adjusted EBITDA |
|
11.7 |
9.8 |
(16%) |
| Brazil Ag Retail |
|
9.9 |
8.1 |
(17%) |
| Latam Ag Retail |
|
3.1 |
1.9 |
(40%) |
| Crop Care |
|
5.9 |
6.5 |
9% |
| Corporate & Intercompany
elim. |
|
(7.2) |
(6.7) |
|
|
|
|
|
|
|
| Adjusted EBITDA Margin % |
|
2.4% |
2.7% |
20 bps |
| Adjusted EBITDA Margin (% of
Inputs) |
|
2.7% |
2.8% |
10 bps |
| |
|
|
|
|
| Share of profit of an
associate |
|
(0.2) |
1.8 |
|
| D&A (incl. PPA
amortization) |
|
(10.3) |
(7.9) |
|
| Finance income (costs) |
|
(26.4) |
(34.2) |
|
| Income taxes, current and
deferred |
|
17.5 |
(16.4) |
|
|
Profit (loss) |
|
(14.5) |
(48.2) |
|
| (+) Adjustment items |
|
8.7 |
(0.6) |
|
| (+) Income tax impact of
adjustments |
|
(3.0) |
0.2 |
|
|
Adjusted Profit/Loss |
|
(8.8) |
(48.5) |
|
1Q25 Segment Results1
Brazil Ag Retail
- Brazil Ag Retail segment revenue
decreased by -23% y/y to R$1.55 billion in 1Q25 (-32% in USD
terms). Segment Inputs revenue fell -19% y/y to $1.48 billion (-29%
in USD), as high-single digits sales volume growth in crop
protection and specialty products was more than offset by lower
sales volumes in seeds, and price/mix headwinds. Regionally, Inputs
revenue in North Cluster (primarily Mato Grosso) fell -37% y/y,
reflecting stricter internal credit policies, and a heightened
competitive environment. South Cluster and East Cluster, which
faced lesser impact from last year’s El Nino, saw Inputs revenue
declines of -6% y/y and -7% y/y, respectively.
- Gross profit grew +7% to R$189.0
million (-6% in USD) in 1Q25, with gross margin expanding 350 bps
to 12.2% and Gross Margin (% of Inputs) rising 310 bps to 12.8%.
This improvement was primarily driven by stronger distribution
margins in crop protection and fertilizers, supported by improved
inventory cost positioning coupled with a stable inputs pricing
environment on a sequential basis.
- Adjusted EBITDA decreased -6% to R$45.1
million (-17% in USD), as gross profit expansion was more than
offset by higher SG&A expenses. SG&A expense increase was
largely attributable to higher expired inventory provisions, and
higher personnel costs, partially offset by lower allowances for
expected credit losses.
1 Please note that starting with the 4Q24 earnings release and
onwards, Lavoro management updated its methods of allocation of
certain holding company expenses between operating segments and
“Corporate”. Supplementary financial information reflecting past
results with this updated methodology is available on our investors
relations website https://ir.lavoroagro.com
|
Brazil Ag Retail (BRL) |
|
1Q24 |
1Q25 |
Chg. % |
| (in
millions of Brazilian reais) |
|
|
|
|
|
|
|
|
|
|
|
Inputs revenue |
|
1,822.5 |
1,477.4 |
(19%) |
| Grains revenue |
|
195.4 |
72.5 |
(63%) |
|
Revenue |
|
2,017.9 |
1,549.9 |
(23%) |
|
|
|
|
|
|
| Gross
Profit |
|
176.3 |
189.0 |
7% |
|
Gross Margin |
|
8.7% |
12.2% |
350 bps |
| Gross Margin (% of
Inputs) |
|
9.7% |
12.8% |
310 bps |
|
|
|
|
|
|
| Adjusted
EBITDA |
|
48.2 |
45.1 |
(6%) |
|
Adjusted EBITDA margin |
|
2.4% |
2.9% |
50 bps |
| Adjusted EBITDA margin (% of
Inputs) |
|
2.6% |
3.1% |
40 bps |
|
Brazil Ag Retail (USD) |
|
1Q24 |
1Q25 |
Chg. % |
| (in millions of US
dollars) |
|
|
|
|
|
|
|
|
|
|
|
Inputs revenue |
|
373.3 |
266.4 |
(29%) |
| Grains revenue |
|
40.0 |
13.1 |
(67%) |
|
Revenue |
|
413.3 |
279.5 |
(32%) |
|
|
|
|
|
|
| Gross
Profit |
|
36.1 |
34.1 |
(6%) |
|
Gross Margin |
|
8.7% |
12.2% |
350 bps |
| Gross Margin (% of
Inputs) |
|
9.7% |
12.8% |
310 bps |
|
|
|
|
|
|
| Adjusted
EBITDA |
|
9.9 |
8.1 |
(17%) |
|
Adjusted EBITDA margin |
|
2.4% |
2.9% |
50 bps |
| Adjusted EBITDA margin (% of
Inputs) |
|
2.6% |
3.1% |
40 bps |
|
Brazil Ag Retail KPIs |
|
1Q24 |
1Q25 |
|
| Retail stores |
|
182 |
183 |
|
| Number of RTVs |
|
833 |
775 |
|
Latam Ag Retail
- Latam Ag Retail segment revenue
increased 4% to R$337.0 million reais (-8% in USD terms) in 1Q25,
supported by the 12% y/y appreciation of the Colombian peso
relative to the Brazilian real. Lack of rains delayed the start of
the planting season, impact sales in specialty products.
- Segment gross profit increased by 7% to
R$47.8 million (-6%), with gross margins expanding by +40 bps to
14.2% with the incremental benefits of rebates more than offsetting
adverse product mix.
- Adjusted EBITDA decreased by -32% to
R$10.4 million (-40% in USD), as increase in gross profit was more
than offset by higher allowances for credit provisions (R$3.5
million increase y/y) and increased personnel costs.
|
Latam Ag Retail (BRL) |
|
1Q24 |
1Q25 |
Chg. % |
| (in
millions of Brazilian reais) |
|
|
|
|
|
|
|
|
|
|
|
Inputs & services revenue |
|
293.5 |
300.0 |
2% |
| Grains revenue |
|
30.6 |
37.1 |
21% |
|
Revenue |
|
324.2 |
337.0 |
4% |
|
|
|
|
|
|
| Gross
Profit |
|
44.7 |
47.8 |
7% |
|
Gross Margin |
|
13.8% |
14.2% |
40 bps |
| Gross Margin (% of
Inputs) |
|
15.2% |
15.9% |
70 bps |
|
|
|
|
|
|
| Adjusted
EBITDA |
|
15.2 |
10.4 |
(32%) |
|
Adjusted EBITDA margin |
|
5.2% |
3.5% |
-170 bps |
|
Latam Ag Retail (USD) |
|
1Q24 |
1Q25 |
Chg. % |
| (in millions of US
dollars) |
|
|
|
|
| |
|
|
|
|
| Inputs & services
revenue |
|
60.1 |
54.1 |
(10%) |
| Grains revenue |
|
6.3 |
6.7 |
7% |
|
Revenue |
|
66.4 |
60.8 |
(8%) |
|
|
|
|
|
|
| Gross
Profit |
|
9.1 |
8.6 |
(6%) |
|
Gross Margin |
|
13.8% |
14.2% |
40 bps |
| Gross Margin (% of
Inputs) |
|
15.2% |
15.9% |
70 bps |
|
|
|
|
|
|
| Adjusted
EBITDA |
|
3.1 |
1.9 |
(40%) |
|
Adjusted EBITDA margin |
|
4.7% |
3.1% |
-160 bps |
|
Latam Ag Retail KPIs |
|
1Q24 |
1Q25 |
|
| Retail stores |
|
38 |
35 |
|
| Number of RTVs |
|
264 |
269 |
|
Crop Care
- Crop Care revenue increased by 68% y/y
to R$293.7 million reais in 1Q25 (+48% in USD terms), driven by
strong performance for Union Agro (specialty fertilizer) and
Perterra (private-label post-patent agrochemicals). Union Agro's
49% y/y revenue growth was led by robust commercial execution and
higher external sales. Perterra revenue grew by more than R$40
million relative to 1Q24, with the increase supported by enhanced
integration in sales and operations planning with Brazil Ag Retail,
and from new product registrations broadening its product
portfolio. These gains were partially offset by price/mix pressures
in adjuvants and biologicals.
- Segment gross profit rose 11% y/y to
R$84.3 million (-2% in USD), while gross margins contracted from
14.6% percentage points to 28.7%. Thie margin contraction was
driven in large part by changes in product category mix, as
stronger sales in specialty fertilizers, mineral oils, and
post-patent agrochemicals weighed against higher-margin product
categories such as biologicals and adjuvants. Additionally,
residual impact from last year’s price declines, coupled with
rising raw material costs linked to the depreciation of the
Brazilian real, contributed to margin pressure.
- Adjusted EBITDA grew +24% to R$35.9
million (+9% in USD), reflecting increased gross profit and other
operating income, partially offset by higher personnel expenses
related to growth initiatives.
|
Crop Care (BRL) |
|
1Q24 |
1Q25 |
Chg. % |
| (in
millions of Brazilian reais) |
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
175.0 |
293.7 |
68 % |
|
|
|
|
|
|
| Gross
Profit |
|
75.9 |
84.3 |
11 % |
|
Gross Margin |
|
43.3 % |
28.7 % |
-1460 bps |
|
|
|
|
|
|
| Adjusted
EBITDA |
|
29.0 |
35.9 |
24 % |
|
Adjusted EBITDA margin |
|
16.6 % |
12.2 % |
-440 bps |
|
Crop Care (USD) |
|
1Q24 |
1Q25 |
Chg. % |
| (in millions of US
dollars) |
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
35.8 |
53.0 |
48% |
|
|
|
|
|
|
| Gross
Profit |
|
15.5 |
15.2 |
(2%) |
|
Gross Margin |
|
43.3% |
28.7% |
-1460 bps |
|
|
|
|
|
|
| Adjusted
EBITDA |
|
5.9 |
6.5 |
9% |
|
Adjusted EBITDA margin |
|
16.6% |
12.2% |
-440 bps |
Revised Fiscal Year 2025 Consolidated
Outlook
Lavoro is revising its guidance for FY2025 as a
result of recent disruptions caused by the sudden tightening of
inventory financing conditions impacting our Brazil operations.
Lavoro’s outlook for FY2025 consolidated revenue
is now projected to range between R$6.50 billion to R$7.50 billion
reais, and for consolidated Inputs revenue to range between R$5.90
billion and R$6.90 billion.
In US dollar terms, FY2025 consolidated revenue
is now projected to range between $1.12 billion to $1.28 billion,
and for consolidated Inputs revenue to range between $1.02 billion
and $1.18 billion. Embedded in this new forecast is an assumption
for an average USD/BRL exchange rate of 5.90 for the remaining 3
quarters of FY2025.
Finally, Lavoro no longer expects its Adjusted
EBITDA to grow relative to FY2024.
Conference Call Details
Lavoro management will host a conference call and audio webcast
on February 3, 2025 at 8:00 am ET (10:00 am BRT) to discuss the
financial results.
Participant numbers: 1-877-407-9716 (U.S.), 1-201-493-6779
(International)
The live audio webcast will be accessible in the Events section
on the Company's Investor Relations website at
https://ir.lavoroagro.com/disclosure-and-documents/events/.
Non-IFRS Financial Measures
This press release contains certain non-IFRS
financial measures, including Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Profit/Loss and Adjusted Net Profit/Loss
Margin. A non-IFRS financial measure is generally defined as a
numerical measure of historical or future financial performance,
financial position, or cash flow that purports to measure financial
performance but excludes or includes amounts that would not be so
adjusted in the most comparable IFRS measure. The Company believes
these non-IFRS financial measures provide meaningful supplemental
information as they are used by the Company's management to
evaluate the Company's performance, and provide additional
information about trends in our operating performance prior to
considering the impact of capital structure, depreciation,
amortization and taxation on our results, as well as the effects of
certain items or events that vary widely among similar companies,
and therefore may hamper comparability across periods, although
these measures are not explicitly defined under IFRS. Management
believes that these measures enhance a reader's understanding of
the operating and financial performance of the Company and
facilitate a better comparison between fiscal periods.
Adjusted EBITDA is defined as profit (loss),
adjusted for net finance income (costs), income taxes, depreciation
and amortization. We also adjust this measure for certain revenues
or expenses that are excluded when management evaluates the
performance of our day-to-day operations, namely: (i) share of
profit of an associate; (ii) fair value on inventories sold from
acquired companies, a non-cash expense resulting from purchase
price allocation of past acquisitions; (iii) M&A expenses that
in management’s judgment do not necessarily occur on a regular
basis; (iv) share-based compensation expenses; (v) one-off bonuses
paid out to our employees as a result of the De-SPAC; and (vi)
related-party expenses paid to Patria in connection to management
support services. Adjusted EBITDA Margin is calculated as Adjusted
EBITDA as a percentage of revenue for the period/year.
Adjusted Net Profit/Loss is defined as profit
(loss) adjusted for certain revenues or expenses that are excluded
when management evaluates the performance of our day-to-day
operations, namely: (i) share of profit of an associate; (ii) fair
value on inventories sold from acquired companies, a non-cash
expense resulting from purchase price allocation of past
acquisitions; (iii) M&A expenses that in management’s judgment
do not necessarily occur on a regular basis; (iv) share-based
compensation expenses; (v) one-off bonuses paid out to our
employees as a result of the De-SPAC; and (vi) related-party
expenses paid to Patria in connection to management support
services. Adjusted Net Profit/Loss Margin is calculated as Adjusted
Net Profit/Loss as a percentage of revenue for the period/year.
The Company does not intend for the non-IFRS
financial measures contained in this release to be a substitute for
any IFRS financial information. Readers of this press release
should use these non-IFRS financial measures only in conjunction
with comparable IFRS financial measures. Reconciliations of the
non-IFRS financial measures Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Profit/Loss and Adjusted Net Profit/Loss
Margin, to their most comparable IFRS measures, are provided in the
table below.
Reconciliation of Adjusted EBITDA
|
Results in BRL |
|
1Q24 |
1Q25 |
|
(figures in millions of Brazilian reais) |
|
|
|
|
|
|
|
|
|
Consolidated - Profit (loss) |
|
(71.0) |
(267.1) |
| (+) Income taxes |
|
(85.5) |
91.1 |
| (+) Finance income
(costs) |
|
129.0 |
189.7 |
| (+) Depreciation and
amortization |
|
50.2 |
43.9 |
| (+) Share of profit of an
associate |
|
1.0 |
(10.2) |
| (+) M&A expenses |
|
16.9 |
0.4 |
| (+) Stock-based
compensation |
|
6.0 |
2.3 |
| (+) DeSPAC related bonus |
|
6.5 |
– |
| (+) Related party consultancy
services |
|
4.2 |
4.3 |
|
Consolidated - Adjusted EBITDA |
|
57.2 |
54.4 |
|
|
|
|
|
|
Brazil Ag Retail - Profit (loss) |
|
(25.7) |
(249.3) |
| (+) Income taxes |
|
(86.0) |
87.7 |
| (+) Finance income
(costs) |
|
121.8 |
171.2 |
| (+) Depreciation and
amortization |
|
36.3 |
29.4 |
| (+) Share of profit of an
associate |
|
1.5 |
6.2 |
| (+) DeSPAC related bonus |
|
0.2 |
– |
|
Brazil Ag Retail - Adjusted EBITDA |
|
48.2 |
45.1 |
|
|
|
|
|
|
Latam Ag Retail - Profit (loss) |
|
4.8 |
0.8 |
| (+) Income taxes |
|
2.3 |
(1.1) |
| (+) Finance income
(costs) |
|
5.4 |
7.8 |
| (+) Depreciation and
amortization |
|
2.8 |
3.0 |
|
Latam Ag Retail - Adjusted EBITDA |
|
15.2 |
10.4 |
|
|
|
|
|
|
Crop Care - Profit (loss) |
|
11.1 |
8.5 |
| (+) Income taxes |
|
(0.6) |
4.5 |
| (+) Finance income
(costs) |
|
12.6 |
16.5 |
| (+) Depreciation and
amortization |
|
5.8 |
4.7 |
| (+) Share of profit of an
associate |
|
(0.5) |
0.9 |
| (+) Stock-based
compensation |
|
0.2 |
0.3 |
| (+) Related party consultancy
services |
|
0.5 |
0.3 |
|
Crop Care - Adjusted EBITDA |
|
29.0 |
35.8 |
|
|
|
|
|
|
Corporate & Intercompany Elim. - Profit
(loss) |
|
(61.2) |
(27.0) |
| (+) Income taxes |
|
(1.2) |
– |
| (+) Finance income
(costs) |
|
(10.8) |
(5.8) |
| (+) Depreciation and
amortization |
|
5.3 |
6.7 |
| (+) Share of profit of an
associate |
|
– |
(17.3) |
| (+) M&A expenses |
|
16.9 |
0.3 |
| (+) Stock-based
compensation |
|
5.8 |
2.0 |
| (+) DeSPAC related bonus |
|
6.3 |
– |
| (+) Related party consultancy
services |
|
3.8 |
4.0 |
|
Corporate & Intercompany Elim. - Adjusted
EBITDA |
|
(35.2) |
(37.1) |
|
Results in USD |
|
1Q24 |
1Q25 |
| (in
millions of US dollars) |
|
|
|
|
|
|
|
|
|
Consolidated - Profit (loss) |
|
(14.5) |
(48.2) |
| (+) Income taxes |
|
(17.5) |
16.4 |
| (+) Finance income
(costs) |
|
26.4 |
34.2 |
| (+) Depreciation and
amortization |
|
10.3 |
7.9 |
| (+) Share of profit of an
associate |
|
0.2 |
(1.8) |
| (+) M&A expenses |
|
3.5 |
0.1 |
| (+) Stock-based
compensation |
|
1.2 |
0.4 |
| (+) DeSPAC related bonus |
|
1.3 |
– |
| (+) Related party consultancy
services |
|
0.9 |
0.8 |
|
Consolidated - Adjusted EBITDA |
|
11.7 |
9.8 |
|
|
|
|
|
|
Brazil Ag Retail - Profit (loss) |
|
(5.3) |
(45.0) |
| (+) Income taxes |
|
(17.6) |
15.8 |
| (+) Finance income
(costs) |
|
25.0 |
30.9 |
| (+) Depreciation and
amortization |
|
7.4 |
5.3 |
| (+) Share of profit of an
associate |
|
0.3 |
1.1 |
| (+) DeSPAC related bonus |
|
0.0 |
– |
|
Brazil Ag Retail - Adjusted EBITDA |
|
9.9 |
8.1 |
|
|
|
|
|
|
Latam Ag Retail - Profit (loss) |
|
1.0 |
0.1 |
| (+) Income taxes |
|
0.5 |
(0.2) |
| (+) Finance income
(costs) |
|
1.1 |
1.4 |
| (+) Depreciation and
amortization |
|
0.5 |
(0.2) |
|
Latam Ag Retail - Adjusted EBITDA |
|
3.0 |
1.1 |
|
|
|
|
|
|
Crop Care - Profit (loss) |
|
2.3 |
1.5 |
| (+) Income taxes |
|
(0.1) |
0.8 |
| (+) Finance income
(costs) |
|
(0.1) |
0.8 |
| (+) Depreciation and
amortization |
|
1.2 |
0.9 |
| (+) Share of profit of an
associate |
|
(0.1) |
0.2 |
| (+) Stock-based
compensation |
|
– |
– |
| (+) Related party consultancy
services |
|
0.1 |
0.1 |
|
Crop Care - Adjusted EBITDA |
|
3.2 |
4.2 |
|
|
|
|
|
|
Corporate & Intercompany Elim. - Profit
(loss) |
|
(12.5) |
(4.9) |
| (+) Income taxes |
|
(0.3) |
– |
| (+) Finance income
(costs) |
|
(2.2) |
(1.0) |
| (+) Depreciation and
amortization |
|
1.1 |
1.2 |
| (+) Share of profit of an
associate |
|
– |
(3.1) |
| (+) M&A expenses |
|
3.5 |
0.1 |
| (+) Stock-based
compensation |
|
1.2 |
0.4 |
| (+) DeSPAC related bonus |
|
1.3 |
– |
| (+) Related party consultancy
services |
|
0.8 |
0.7 |
|
Corporate & Intercompany Elim. - Adjusted
EBITDA |
|
(7.2) |
(6.7) |
Reconciliation of Adjusted Profit/Loss
|
Consolidated Results (BRL) |
|
1Q24 |
1Q25 |
| (in millions of Brazilian
reais) |
|
|
|
| |
|
|
|
|
Profit (loss) |
|
(71.0) |
(267.1) |
| (+) Fair value of
inventories sold from acquired companies |
7.9 |
– |
| (+) Share of profit of an
associate |
|
1.0 |
(10.2) |
| (+) M&A expenses |
|
16.9 |
0.4 |
| (+) Stock-based
compensation |
|
6.0 |
2.3 |
| (+) DeSPAC related bonus |
|
6.5 |
0.0 |
| (+) Related party consultancy
services |
|
4.2 |
4.3 |
| (+) Tax impact of
adjustments |
|
(14.5) |
1.1 |
|
Adjusted Profit/Loss |
|
(42.9) |
(269.2) |
|
Consolidated Results (USD) |
|
1Q24 |
1Q25 |
| (in millions of US
dollars) |
|
|
|
| |
|
|
|
|
Profit (loss) |
|
(14.5) |
(48.2) |
| (+) Fair value of
inventories sold from acquired companies |
1.6 |
– |
| (+) Share of profit of an
associate |
|
0.2 |
(1.8) |
| (+) M&A expenses |
|
3.5 |
0.1 |
| (+) Stock-based
compensation |
|
1.2 |
0.4 |
| (+) DeSPAC related bonus |
|
1.3 |
0.0 |
| (+) Related party consultancy
services |
|
0.9 |
0.8 |
| (+) Tax impact of
adjustments |
|
(3.0) |
0.2 |
|
Adjusted Profit/Loss |
|
(8.8) |
(48.5) |
About Lavoro
Lavoro is Brazil's largest agricultural inputs
retailer and a leading producer of agricultural biological
products. Lavoro's shares and warrants are listed on the Nasdaq
stock exchange under the tickers "LVRO" and "LVROW." Through its
comprehensive portfolio of products and services, the company
empowers small and medium-size farmers to adopt the latest emerging
agricultural technologies and enhance their productivity. Since its
founding in 2017, Lavoro has broadened its reach across Latin
America, serving 72,000 customers in Brazil, Colombia, Uruguay, and
Ecuador via its team of over 1,000 technical sales representatives
(RTVs). Lavoro's RTVs are local trusted advisors to farmers,
regularly meeting them to provide agronomic recommendations
throughout the crop cycle to drive optimized outcomes. Learn more
about Lavoro at ir.lavoroagro.com.
Reportable Segments
Lavoro’s reportable segments are the
following:
Brazil Ag Retail: comprises companies dedicated
to the distribution of agricultural inputs such as crop protection,
seeds, fertilizers, and specialty products, in Brazil.
Latam Ag Retail: includes companies dedicated to
the distribution of agricultural inputs outside Brazil (currently
primarily in Colombia).
Crop Care: includes companies that manufacture
and distribute our own portfolio of private label specialty
products (i.e., biologicals, adjuvants, specialty fertilizers, and
other specialty products), and import and distribute off-patent
crop protection products.
Lavoro’s Fiscal Year
Lavoro follows the crop year, which means that
its fiscal year comprises July 1st of each year, until June 30 of
the following year. Given this, Lavoro’s quarters have the
following format:1Q – quarter starting on July 1 and ending on
September 30.2Q – quarter starting on October 1 and ending on
December 31.3Q – quarter starting on January 1 and ending on March
31.4Q – quarter starting on April 1 and ending on June 30.
Definitions
RTVs: refer to Lavoro’s technical sales
representatives (Representante Técnico de Vendas), who are linked
to its retail stores, and who develop commercial relationships with
farmers.
Forward-Looking Statements
The contents of any website mentioned or
hyperlinked in this press release are for informational purposes
and the contents thereof are not part of or incorporated into this
press release.
Certain statements made in this press release
are “forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as “aims,” “estimate,” “plan,”
“project,” “forecast,” “intend,” “will,” “expect,” “anticipate,”
“believe,” “seek,” “target” or other similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding the
expectations regarding the growth of Lavoro’s business and its
ability to realize expected results, grow revenue from existing
customers, and consummate acquisitions; opportunities, trends, and
developments in the agricultural input industry, including with
respect to future financial performance in the industry. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as and must not be relied on by
any investor as, a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Lavoro.
These forward-looking statements are subject to
a number of risks and uncertainties, including but not limited to,
the outcome of any legal proceedings that may be instituted against
Lavoro related to the business combination agreement or the
transaction; the ability to maintain the listing of Lavoro’s
securities on Nasdaq; the price of Lavoro’s securities may be
volatile due to a variety of factors, including changes in the
competitive and regulated industries in which Lavoro operates,
variations in operating performance across competitors, changes in
laws and regulations affecting Lavoro’s business; Lavoro’s
inability to meet or exceed its financial projections and changes
in the consolidated capital structure; changes in general economic
conditions; the ability to implement business plans, forecasts, and
other expectations, changes in domestic and foreign business,
market, financial, political and legal conditions; the outcome of
any potential litigation, government and regulatory proceedings,
investigations and inquiries; costs related to being a public
company and other risks and uncertainties indicated from time to
time in the Annual Report on Form 20-F filed by Lavoro or in the
future, including those under “Risk Factors” therein, or Lavoro’s
other filings with the SEC. If any of these risks materialize or
our assumptions prove incorrect, actual results could differ
materially from the results implied by these forward-looking
statements. There may be additional risks that Lavoro currently
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements.
In addition, forward-looking statements reflect
Lavoro’s expectations, plans, or forecasts of future events and
views as of the date of this press release. Lavoro anticipates that
subsequent events and developments will cause Lavoro’s assessments
to change. However, while Lavoro may elect to update these
forward-looking statements at some point in the future, Lavoro
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Lavoro’s assessments as of any date subsequent to the
date of this press release. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
Contact
Julian Garridojulian.garrido@lavoroagro.com
Tigran Karapetiantigran.karapetian@lavoroagro.com
Fernanda Rosafernanda.rosa@lavoroagro.com
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