- FY2024 revenue of US$1.89 billion increased 5% year-over-year (flat in BRL terms), driven by market share gains and sales volume growth mitigating deflationary input price headwinds.
- FY2024 gross profit decreased -19% to $268.4 million (-23% in BRL), with gross margins compressing by -430 basis points to 14.2%, primarily due to the input price deflation and a less favorable product category sales mix.
- The Crop Care2 segment was a standout performer for the year, with revenue rising 24% to $150.7 million for FY2024 (+18% BRL), and gross profit of $56.1 million increasing +4% y/y (decreasing -1% in BRL), despite the challenging market environment for specialty products.
- Net loss for FY2024 increased to $154.6 million, compared to a net loss of $43.7 million in the previous year, with the change reflecting a decline in gross profit, higher finance costs and income tax headwinds. Adjusted Net Loss was $144.9 million, compared to Adjusted Net Profit of $30.9 million last year, with the variation reflecting lower gross profit, increased finance costs and income tax headwinds.
- Adjusted EBITDA3 for FY2024 was $53.4 million, compared to $150.1 million in the previous year, with the decline resulting from lower gross profit, and higher operating expenses.
- Net cash flows provided by operations4 were $33.1 million (R$165.8 million), compared to $20.9 million (R$108.1 million) in the prior year.
- Lavoro provides an outlook for FY2025 detailed later in the release.
Ruy Cunha, CEO of Lavoro, commented, "This past year was one of the most challenging periods for Brazilian agribusiness in the last decade, with the ag inputs retail market estimated to have declined by over 20%. Lavoro navigated these turbulent conditions, gaining market share by focusing on controllable factors and leveraging our scale and verticalized business model. Our Crop Care segment performed well considering the notably challenging conditions for specialty inputs in the Brazilian market.”
"The current market environment reflects a mix of contrasting factors. On the one hand, projections for farmer profitability for the crop year 2024/2025 indicate improvement over the previous year, incentivizing farmers to grow planted acres and to invest in inputs to maximize yields. Additionally, input prices are continuing to show signs of stabilization. On the other hand, reduced bank and government lending to farmers, due in part to the impact from last year's drought on crop yields, is currently constraining short-term liquidity for farmers, and creating challenges for the broader ag inputs value chain, including Lavoro. Against this backdrop, enhancing gross margin improvement is a key priority for this year.”
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1 Financials presented in US dollars in throughout this release are converted using the following average period USD/BRL exchange rate: 5.217 for 4Q24, 4.951 for 3Q24; 4.955 for 2Q24; 4.883 for 1Q24; 4.952 for 4Q23; 5.193 for 3Q23; 5.265 for 2Q23; 5.241 for 1Q23.
2 Crop Care financial results shown here, and elsewhere in this release, include intercompany sales to Lavoro, which are eliminated in the consolidated results.
3 Adjusted EBITDA and Adjusted Profit/Loss are non-IFRS measures. Please see reconciliation tables elsewhere in this release.
4 Converted to USD using the average USD/BRL for the fiscal year: 5.00 for FY24 and 5.16 for FY23.
FY4Q24 Financial Highlights5
- Consolidated revenue for Lavoro in 4Q24 increased by 2% year-over-year (y/y) to $271.1 million (+8% in BRL), compared to the prior year period, with positive contributions from Grains revenue associated with our barter operations, which grew +41% to $68.3 million (+48% in BRL). This was partially offset by a decline in Inputs revenue of -6% (-1% in BRL), which reached $202.8 million, reflecting Input revenue declines in Brazil Ag Retail and the effect of converting our results from Brazilian reais to U.S. dollars for ease of reference.
- Consolidated gross profit decreased by -4% to $45.2 million in 4Q24 (+2% in BRL). Gross margins contracted by -100 bps y/y to 16.7%, driven by an increased mix of Grains revenue, and the unfavorable impact of product mix in Crop Care, partially offset by an improvement in gross margins for Brazil Ag Retail and Latam Ag Retail.
- Gross profit as % of Inputs revenue improved 70 bps y/y to 22.3% in 4Q24, with improvements led primarily by Brazil Ag Retail, partially offset by product mix headwinds in our Crop Care segment.
- Net loss for 4Q24 was $77.3 million, compared to a net loss of $19.5 million in the prior year period. The $57.8 million year-over-year increase in net loss was primarily driven by income taxes headwinds ($35 million), and higher finance costs ($22 million). Adjusted Net Loss was $76.2 million, compared to Adjusted Net Loss of $15.2 million in the prior year quarter, with similar key drivers for the year-over-year change.
- Adjusted EBITDA was -$2.1 million in 4Q24 compared to $2.4 million in the prior year period, with the change reflecting a decline in gross profit and net other operating income.
5 Adjusted EBITDA and Adjusted Profit/Loss are non-IFRS measures. Please see reconciliation tables elsewhere in this release.
| Consolidated Results (USD) | 4Q23 | 4Q24 | Chg. % | FY23 | FY24 | Chg. % | ||
| (in millions of US dollars) | ||||||||
| Revenue by Segment | 265.5 | 271.1 | 2% | 1,799.7 | 1,888.6 | 5% | ||
| Brazil Ag Retail | 197.2 | 192.5 | (2%) | 1,506.2 | 1,584.4 | 5% | ||
| Latam Ag Retail | 61.8 | 65.2 | 5% | 233.8 | 237.8 | 2% | ||
| Crop Care | 10.7 | 19.9 | 87% | 121.2 | 150.7 | 24% | ||
| Intercompany eliminations | (4.1) | (6.4) | (61.4) | (84.3) | ||||
| Revenue by Category | 265.5 | 271.1 | 2% | 1,799.7 | 1,888.6 | 5% | ||
| Inputs revenue | 217.0 | 202.9 | (6%) | 1,669.4 | 1,678.7 | 1% | ||
| Grains revenue | 48.6 | 68.3 | 41% | 130.4 | 209.9 | 61% | ||
| Gross Profit | 46.9 | 45.2 | (4%) | 332.9 | 268.4 | (19%) | ||
| Brazil Ag Retail | 26.3 | 29.8 | 13% | 246.8 | 182.7 | (26%) | ||
| Latam Ag Retail | 9.4 | 10.4 | 10% | 38.1 | 36.8 | (3%) | ||
| Crop Care | 8.1 | 5.8 | (29%) | 54.0 | 56.1 | 4% | ||
| Intercompany elim. | 3.1 | (0.7) | (6.0) | (7.1) | ||||
| Gross Margin | 17.6% | 16.7% | -100 bps | 18.5% | 14.2% | -430 bps | ||
| Brazil Ag Retail | 13.3% | 15.5% | 210 bps | 16.4% | 11.5% | -490 bps | ||
| Latam Ag Retail | 15.2% | 15.9% | 70 bps | 16.3% | 15.5% | -80 bps | ||
| Crop Care | 75.9% | 28.9% | -4700 bps | 44.6% | 37.2% | -730 bps | ||
| Gross Margin (% of Inputs revenue) | 21.6% | 22.3% | 70 bps | 19.9% | 16.0% | -400 bps | ||
| Brazil Ag Retail | 17.7% | 23.8% | 610 bps | 17.9% | 13.2% | -460 bps | ||
| Latam Ag Retail | 15.3% | 16.1% | 80 bps | 16.7% | 16.0% | -70 bps | ||
| Crop Care | 75.9% | 28.9% | -4700 bps | 44.6% | 37.2% | -730 bps | ||
| SG&A (excl. D&A) | (55.5) | (51.5) | (7%) | (205.9) | (237.2) | 15% | ||
| Other operating income (expense) | 5.0 | 2.6 | (52.9) | 7.4 | ||||
| EBITDA | (3.6) | (3.7) | n.m. | 74.1 | 38.7 | (48%) | ||
| (+) Adjustment items | 6.0 | 1.5 | 76.0 | 14.7 | ||||
| Adjusted EBITDA | 2.4 | (2.1) | (191%) | 150.1 | 53.4 | (64%) | ||
| Brazil Ag Retail | 3.4 | 3.0 | (13%) | 141.6 | 50.1 | (65%) | ||
| Latam Ag Retail | 3.3 | 3.6 | 8% | 17.6 | 12.3 | (30%) | ||
| Crop Care | 1.2 | (2.0) | (273%) | 28.4 | 22.5 | (21%) | ||
| Corporate & Intercompany elim. | (5.6) | (6.7) | (37.3) | (31.6) | ||||
| Adjusted EBITDA Margin % | 0.9% | (0.8%) | -170 bps | 8.3% | 2.8% | -550 bps | ||
| Adjusted EBITDA Margin (% of Inputs) | 1.1% | (1.1%) | -210 bps | 9.0% | 3.2% | -580 bps | ||
| Share of profit of an associate | - | 0.1 | - | 0.3 | ||||
| D&A (incl. PPA amortization) | (8.3) | (8.9) | 7% | (32.3) | (36.0) | 11% | ||
| Finance income (costs) | (28.2) | (50.3) | 79% | (119.5) | (163.8) | 37% | ||
| Income taxes, current and deferred | 20.6 | (14.3) | 34.1 | 6.2 | ||||
| Net profit (loss) | (19.5) | (77.3) | n.m. | (43.7) | (154.6) | n.m. | ||
| (+) Adjustment items | 6.6 | 1.6 | 81.2 | 14.6 | ||||
| (+) Income tax impact of adjustments | (2.2) | (0.5) | (6.7) | (5.0) | ||||
| Adjusted net profit (loss) | (15.2) | (76.2) | 403% | 30.9 | (144.9) | n.m. |
| Consolidated Results (BRL) | 4Q23 | 4Q24 | Chg. % | FY23 | FY24 | Chg. % | ||
| (in millions of Brazilian reais) | ||||||||
| Revenue by Segment | 1,315.1 | 1,414.6 | 8% | 9,347.4 | 9,392.3 | 0% | ||
| Brazil Ag Retail | 976.4 | 1,004.2 | 3% | 7,829.3 | 7,869.8 | 1% | ||
| Latam Ag Retail | 306.2 | 339.9 | 11% | 1,206.3 | 1,190.5 | (1%) | ||
| Crop Care | 52.7 | 103.9 | 97% | 632.8 | 749.2 | 18% | ||
| Intercompany eliminations | (20.2) | (33.5) | (321.1) | (417.3) | ||||
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