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
second quarter of 2024, which ended on December 31, 2023.
Ruy Cunha, CEO of Lavoro, commented, “Our
second-quarter results underscore our resilience in the face of
challenging market conditions not seen in our industry for well
over a decade. Our model is intact, as demonstrated by the
performance of our Brazil Ag Retail operations that produced yet
another quarter of strong unit volume growth and market share
gains, which offset the impact of the deflationary environment in
crop protection and fertilizer inputs. Supporting these share gains
is momentum in attracting seasoned technical sales representatives
(RTVs) to the Lavoro organization, which is illustrated by 25%
sequential growth in RTVs to just over 1,040 sales reps in Brazil.
We are in a great position and anticipate the positive contribution
of these new hires to help drive growth next fiscal year.”
Mr. Cunha added, “Second quarter gross margins
experienced sequential improvement, signaling the beginning of a
path to recovery supported by stabilizing local input prices from
the retail channel to farmers, and by the continued improvement in
our average cost of goods sold, as we gradually cycle through our
higher-cost inventory. Moreover, Crop Care’s performance in the
quarter was a stand-out, with double-digit year-over-year growth in
revenue and gross profit in spite of the market headwinds, and
demonstrating yet again the synergies associated with the vertical
integration with Lavoro Ag retail.
“Our market outlook remains consistent with our
late January assessment. We still foresee a 25% decrease in
Brazil's retail inputs market for the 2023/2024 crop year,
concluding in June 2024. Although price competition within the
retail channel has broadly stabilized, disparities persist across
Brazil's various regions, influenced by the ongoing destocking of
excess agrochemical inventories. We are encouraged by the recent
favorable weather conditions, which have contributed to an uptick
in farmer sentiment, evidenced by the strong start to the safrinha
corn planting season—currently at 71%, exceeding the five-year
average of 52%."
* Financials presented in US dollars throughout
this release are converted using the following average period
USD/BRL exchange rate: 4.955 for 2Q24; 5.265 for 2Q23; the 1Q24
period was calculated using monthly exchange rates (4.801 for
Jul-23, 4.904 for Aug-23, 4.937 for Sep-23); 1Q23 period was
calculated (5.368 for Jul-22, 5.143 for Aug-22, 5.237 for
Sep-22)
FY2Q24 Financial Highlights
- Consolidated revenue for Lavoro in 2Q24 increased by 1% to
$618.7 million, compared to the prior year period. Inputs revenue
expanded 1% y/y to $610.8 million, as continued robust unit volume
growth, contributions from recent M&A, and currency tailwinds,
more than offset the input price deflationary environment.
- Brazil Ag Retail segment revenue grew by 1% to $528.7 million
in 2Q24, reflecting market share gains, unit volume growth, and the
impact from the acquisitions of Referencia and Coram, which
collectively contributed 6% to 2Q24 segment revenue. Latam Ag
Retail segment revenue fell by -2% to $55.8 million in the quarter,
as the increase in fertilizer sales volumes and the favorable
impact of the Colombian Peso’s strength were outweighed by a
decrease in crop protection category revenues. Crop Care revenue
increased 26% y/y to $72.8 million, led by the strong performance
of specialty fertilizers and adjuvants product categories, which
more than offset declines in biologicals.
- Consolidated gross profit decreased by -17% to $103.0 million
in 2Q24, while gross margins contracted by -360 bps y/y to 16.7%.
This reflects primarily lower distribution margins within our
Brazil Ag Retail and Latam Ag Retail segments, higher freight costs
as percentage of sales (an increase of 120 bps), and category
mix-related headwinds in our Crop Care segment (with high margin
biologicals underperforming in the quarter).
- Crucially, the year-over-year trends in consolidated gross
margins saw a notable improvement sequentially, improving from a
decline of -840 bps in the first quarter of 2024 to a decrease of
-360 bps in the second quarter. This improvement stemmed primarily
from the reduction in the average cost of goods sold, as
higher-cost inventory purchased at the past elevated prices is
gradually cycled through and replaced with inventory procured at
current lower prices.
- Adjusted EBITDA decreased -48% y/y to $40.1 million in 2Q24,
with Adjusted EBITDA margin contracting by -620 bps to 6.5%,
reflecting the gross margin compression detailed above, along with
a y/y increase in the SG&A (excluding D&A) as a percentage
of sales, rising 300 bps to 11.3%. SG&A (excl. D&A) to
sales increased due primarily to (i) higher personnel costs
associated with newly hired RTVs that have yet to contribute to
sales, and (ii) an increase in the allowance for expected credit
losses.
- Adjustment items excluded from Adjusted EBITDA increased by
$1.5 million to $2.4 million for 2Q24, due primarily to higher
stock-based compensation expense (+0.5 million), and an increase in
related-party consultancy services expenses in 2Q24 (+$0.9
million).
- Adjusted net profit in 2Q24 was $2.6 million, a decline of
-$34.8 million over the prior year quarter, driven mainly by lower
Adjusted EBITDA (-$37.4 million), higher financial costs (-$5.4
million) due to higher interest expense on trade payables,
partially offset by a positive contribution from income tax (+11.0
million).
|
Consolidated Results (USD) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of US dollars) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Revenue by Segment |
|
611.7 |
|
618.7 |
|
1 |
% |
|
1,048.5 |
|
1,101.8 |
|
5 |
% |
|
Brazil Ag Retail |
|
524.8 |
|
528.7 |
|
1 |
% |
|
883.1 |
|
940.6 |
|
7 |
% |
|
Latam Ag Retail |
|
57.0 |
|
55.8 |
|
(2 |
)% |
|
123.7 |
|
122.1 |
|
(1 |
)% |
|
Crop Care |
|
57.7 |
|
72.8 |
|
26 |
% |
|
93.7 |
|
108.5 |
|
16 |
% |
|
Intercompany eliminations1 |
|
(27.8 |
) |
(38.6 |
) |
|
|
(52.0 |
) |
(69.4 |
) |
|
| |
|
|
|
|
|
|
|
|
|
Revenue by Category |
|
611.7 |
|
618.7 |
|
1 |
% |
|
1,048.5 |
|
1,101.8 |
|
5 |
% |
|
Inputs revenue |
|
606.7 |
|
610.8 |
|
1 |
% |
|
1,021.2 |
|
1,047.4 |
|
3 |
% |
|
Grains revenue |
|
5.0 |
|
7.9 |
|
57 |
% |
|
27.3 |
|
54.4 |
|
99 |
% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
123.7 |
|
103.0 |
|
(17 |
)% |
|
214.4 |
|
162.6 |
|
(24 |
)% |
|
Brazil Ag Retail |
|
99.7 |
|
73.3 |
|
(27 |
)% |
|
169.1 |
|
108.9 |
|
(36 |
)% |
|
Latam Ag Retail |
|
11.5 |
|
9.9 |
|
(14 |
)% |
|
21.0 |
|
19.1 |
|
(9 |
)% |
|
Crop Care |
|
21.3 |
|
25.7 |
|
21 |
% |
|
38.1 |
|
41.2 |
|
8 |
% |
|
Intercompany |
|
(8.8 |
) |
(5.9 |
) |
|
|
(13.7 |
) |
(6.6 |
) |
|
| |
|
|
|
|
|
|
|
|
| Gross Margin |
|
20.2 |
% |
16.7 |
% |
(360) bps |
|
20.5 |
% |
14.8 |
% |
(570) bps |
| Gross Margin (% of Inputs
revenue) |
|
20.4 |
% |
16.9 |
% |
(350) bps |
|
21.0 |
% |
15.5 |
% |
(550) bps |
|
|
|
|
|
|
|
|
|
|
| SG&A (excl. D&A) |
|
(50.5 |
) |
(69.7 |
) |
38 |
% |
|
(102.3 |
) |
(125.0 |
) |
22 |
% |
| Other
operating income (expense) |
|
3.4 |
|
4.4 |
|
|
|
6.0 |
|
4.4 |
|
|
|
EBITDA |
|
76.6 |
|
37.7 |
|
(51 |
)% |
|
118.2 |
|
42.0 |
|
(64 |
)% |
| (+)
Adjustment items |
|
0.9 |
|
2.4 |
|
|
|
3.7 |
|
9.3 |
|
|
|
Adjusted EBITDA |
|
77.5 |
|
40.1 |
|
(48 |
)% |
|
121.9 |
|
51.3 |
|
(58 |
)% |
|
Brazil Ag Retail |
|
64.3 |
|
26.7 |
|
(58 |
)% |
|
97.4 |
|
30.9 |
|
(68 |
)% |
|
Latam Ag Retail |
|
7.1 |
|
4.7 |
|
(34 |
)% |
|
11.5 |
|
7.8 |
|
(32 |
)% |
|
Crop Care |
|
15.0 |
|
16.2 |
|
8 |
% |
|
26.8 |
|
21.7 |
|
(19 |
)% |
|
Corporate / Intercompany |
|
(8.8 |
) |
(7.4 |
) |
n.m. |
|
(13.7 |
) |
(9.2 |
) |
n.m. |
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA Margin % |
|
12.7 |
% |
6.5 |
% |
(620) bps |
|
11.6 |
% |
4.7 |
% |
(700) bps |
| Adjusted EBITDA Margin (% of
Inputs) |
|
12.8 |
% |
6.6 |
% |
(620) bps |
|
11.9 |
% |
4.9 |
% |
(700) bps |
| |
|
|
|
|
|
|
|
|
| Share of profit of an
associate |
|
– |
|
(0.2 |
) |
|
|
– |
|
(0.4 |
) |
|
| D&A2 |
|
(7.0 |
) |
(7.0 |
) |
|
|
(15.5 |
) |
(17.3 |
) |
|
| Finance income (costs) |
|
(31.9 |
) |
(37.3 |
) |
|
|
(60.0 |
) |
(63.3 |
) |
|
| Income
taxes, current and deferred |
|
(2.4 |
) |
8.6 |
|
|
|
7.8 |
|
26.3 |
|
|
|
Net profit (loss) |
|
35.3 |
|
1.9 |
|
(95 |
)% |
|
50.4 |
|
(12.6 |
) |
n.m. |
| (+) Adjustment items |
|
3.2 |
|
1.2 |
|
|
|
6.3 |
|
9.9 |
|
|
| (+)
Income tax impact of adjustments |
|
(1.1 |
) |
(0.4 |
) |
|
|
(2.2 |
) |
(3.4 |
) |
|
|
Adjusted net profit (loss) |
|
37.4 |
|
2.6 |
|
(93 |
)% |
|
54.6 |
|
(6.1 |
) |
n.m. |
1 Intercompany eliminations represent sales between Crop
Care and Brazil Ag Retail 2 Depreciation & amortization,
which includes the fair value adjustment on inventory sold from
acquired companies, a non-cash expenses resulting from purchase
price allocation of past acquisitions
|
Consolidated Results (BRL) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of Brazilian reais) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Revenue by Segment |
|
3,220.2 |
|
3,065.9 |
|
(5 |
)% |
|
5,506.1 |
|
5,431.8 |
|
(1 |
)% |
|
Brazil Ag Retail |
|
2,763.0 |
|
2,619.9 |
|
(5 |
)% |
|
4,637.8 |
|
4,637.8 |
|
0 |
% |
|
Latam Ag Retail |
|
300.3 |
|
276.3 |
|
(8 |
)% |
|
649.6 |
|
600.5 |
|
(8 |
)% |
|
Crop Care |
|
303.5 |
|
360.8 |
|
19 |
% |
|
491.5 |
|
535.8 |
|
9 |
% |
|
Intercompany eliminations |
|
(146.6 |
) |
(191.1 |
) |
|
|
(272.8 |
) |
(342.3 |
) |
|
| |
|
|
|
|
|
|
|
|
|
Revenue by Category |
|
3,220.2 |
|
3,065.9 |
|
(5 |
)% |
|
5,506.1 |
|
5,431.8 |
|
(1 |
)% |
|
Inputs revenue |
|
3,193.7 |
|
3,026.7 |
|
(5 |
)% |
|
5,363.0 |
|
5,166.6 |
|
(4 |
)% |
|
Grains revenue |
|
26.5 |
|
39.2 |
|
48 |
% |
|
143.1 |
|
265.2 |
|
85 |
% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
651.1 |
|
510.6 |
|
(22 |
)% |
|
1,125.3 |
|
803.9 |
|
(29 |
)% |
|
Brazil Ag Retail |
|
525.1 |
|
363.2 |
|
(31 |
)% |
|
887.6 |
|
539.5 |
|
(39 |
)% |
|
Latam Ag Retail |
|
60.5 |
|
49.2 |
|
(19 |
)% |
|
110.5 |
|
93.9 |
|
(15 |
)% |
|
Crop Care |
|
112.0 |
|
127.4 |
|
14 |
% |
|
199.5 |
|
203.3 |
|
2 |
% |
|
Intercompany |
|
(46.5 |
) |
(29.2 |
) |
|
|
(72.2 |
) |
(32.8 |
) |
|
| |
|
|
|
|
|
|
|
|
| Gross Margin |
|
20.2 |
% |
16.7 |
% |
(360) bps |
|
20.4 |
% |
14.8 |
% |
(560) bps |
| Gross Margin (% of Inputs
revenue) |
|
20.4 |
% |
16.9 |
% |
(350) bps |
|
21.0 |
% |
15.6 |
% |
(540) bps |
|
|
|
|
|
|
|
|
|
|
| SG&A (excl. D&A) |
|
(265.9 |
) |
(345.3 |
) |
30 |
% |
|
(536.8 |
) |
(615.4 |
) |
15 |
% |
| Other
operating income (expense) |
|
18.1 |
|
21.6 |
|
|
|
31.7 |
|
21.9 |
|
|
|
EBITDA |
|
403.3 |
|
186.8 |
|
(54 |
)% |
|
620.2 |
|
210.4 |
|
(66 |
)% |
| (+)
Adjustment items |
|
4.9 |
|
12.1 |
|
|
|
19.7 |
|
46.2 |
|
|
|
Adjusted EBITDA |
|
408.2 |
|
198.9 |
|
(51 |
)% |
|
640.0 |
|
256.7 |
|
(60 |
)% |
|
Brazil Ag Retail |
|
338.3 |
|
132.3 |
|
(61 |
)% |
|
511.4 |
|
155.3 |
|
(70 |
)% |
|
Latam Ag Retail |
|
37.4 |
|
23.1 |
|
(38 |
)% |
|
60.5 |
|
38.4 |
|
(37 |
)% |
|
Crop Care |
|
79.0 |
|
80.2 |
|
1 |
% |
|
140.4 |
|
108.4 |
|
(23 |
)% |
|
Corporate / Intercompany |
|
(46.5 |
) |
(36.7 |
) |
n.m. |
|
(72.2 |
) |
(45.4 |
) |
n.m. |
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA Margin % |
|
12.7 |
% |
6.5 |
% |
(620) bps |
|
11.6 |
% |
4.7 |
% |
(690) bps |
| Adjusted EBITDA Margin (% of
Inputs) |
|
12.8 |
% |
6.6 |
% |
(620) bps |
|
11.9 |
% |
5.0 |
% |
(700) bps |
| |
|
|
|
|
|
|
|
|
| Share of profit of an
associate |
|
|
(0.8 |
) |
|
|
|
(1.8 |
) |
|
| D&A3 |
|
(37.1 |
) |
(34.8 |
) |
|
|
(81.6 |
) |
(85.0 |
) |
|
| Finance income (costs) |
|
(167.9 |
) |
(184.7 |
) |
|
|
(315.7 |
) |
(313.6 |
) |
|
| Income
taxes, current and deferred |
|
(12.5 |
) |
42.6 |
|
|
|
41.0 |
|
128.2 |
|
|
|
Net profit (loss) |
|
185.8 |
|
9.2 |
|
(95 |
)% |
|
263.9 |
|
(61.8 |
) |
n.m. |
| (+) Adjustment items |
|
16.9 |
|
5.7 |
|
|
|
33.5 |
|
49.1 |
|
|
| (+)
Income tax impact of adjustments |
|
(5.8 |
) |
(1.9 |
) |
|
|
(11.4 |
) |
(16.7 |
) |
|
|
Adjusted net profit (loss) |
|
197.0 |
|
12.9 |
|
(93 |
)% |
|
286.0 |
|
(29.4 |
) |
n.m. |
3 Depreciation & amortization, which includes the fair value
adjustment on inventory sold from acquired companies, a non-cash
expenses resulting from purchase price allocation of past
acquisitions
Segment Results
Brazil Ag Retail
- Segment revenue of $528.7 million
increased by 1% (a decrease of -5% in BRL terms) over the prior
year period, reflecting unit volume growth in crop protection (up
46%), fertilizers (up 63%), specialty products (up 29%), and seeds
(up 3%), which were offset by price deflation and negative product
mix across all categories. Notably, revenue in seeds products
decreased by -11% y/y, negatively impacted by the shift in timing
of farmers purchasing decisions, and a decrease in the mix of
higher technology corn seed varieties due to El Niño. Recently
acquired Referencia and Coram together contributed 6% to 2Q24
Brazil Ag Retail segment revenue.
- Gross margin contracted by -510 bps
y/y to 13.9% in 2Q24, led by the impact of input price deflation
across all product categories. Positively, gross margins saw a
notable sequential improvement in y/y trends relative 1Q24, where
gross margins had contracted by -1,070 bps. The sequential
improvement was most pronounced in crop protection (a reduction of
-260 bps y/y in 2Q24 vs. a reduction of -1,310 bps in 1Q24) and
fertilizers (-280 bps in 2Q24 vs. -1,200 bps in 1Q24), as local
input prices from the retail channel to farmers have stabilized,
and as our average cost of goods sold continues to improve with the
cycling of higher-cost inventory. Gross margins in seeds products
sales declined sequentially (-430 bps y/y in 2Q24 vs. flat in
1Q24), due to the above-mentioned headwinds from mix.
- Adjusted EBITDA experienced a 58%
decrease to $26.7 million in 2Q24, with Adjusted EBITDA margins
reducing by -720 bps to 5.0%, attributable to gross margins
headwinds, in addition to increased SG&A expenses due to a
higher allowance for expected credit losses and elevated personnel
costs stemming from the recent hiring of RTVs which have yet to
impact sales.
|
Brazil Ag Retail (USD) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of US dollars) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Inputs revenue |
|
520.6 |
|
521.7 |
|
0 |
% |
|
861.9 |
|
893.3 |
|
4 |
% |
| Grains
revenue |
|
4.2 |
|
7.0 |
|
66 |
% |
|
21.3 |
|
47.3 |
|
122 |
% |
|
Revenue |
|
524.8 |
|
528.7 |
|
1 |
% |
|
883.1 |
|
940.6 |
|
7 |
% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
99.7 |
|
73.3 |
|
(27 |
)% |
|
169.1 |
|
108.9 |
|
(36 |
)% |
|
Gross Margin |
|
19.0 |
% |
13.9 |
% |
(510) bps |
|
19.1 |
% |
11.6 |
% |
(760) bps |
|
Gross Margin (% Inputs revenue) |
|
19.2 |
% |
14.0 |
% |
(510) bps |
|
19.6 |
% |
12.2 |
% |
(740) bps |
| |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
64.3 |
|
26.7 |
|
(58 |
)% |
|
97.4 |
|
30.9 |
|
(68 |
)% |
|
Adjusted EBITDA margin |
|
12.2 |
% |
5.0 |
% |
(720) bps |
|
11.0 |
% |
3.3 |
% |
(770) bps |
|
Adjusted EBITDA (% Inputs revenue) |
|
12.3 |
% |
5.1 |
% |
(720) bps |
|
11.3 |
% |
3.5 |
% |
(780) bps |
|
Brazil Ag Retail (BRL) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of Brazilian reais) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Inputs revenue |
|
2,740.7 |
|
2,585.0 |
|
(6 |
)% |
|
4,526.5 |
|
4,407.6 |
|
(3 |
)% |
| Grains
revenue |
|
22.3 |
|
34.9 |
|
56 |
% |
|
111.4 |
|
230.3 |
|
107 |
% |
|
Revenue |
|
2,763.0 |
|
2,619.9 |
|
(5 |
)% |
|
4,637.8 |
|
4,637.8 |
|
0 |
% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
525.1 |
|
363.2 |
|
(31 |
)% |
|
887.6 |
|
539.5 |
|
(39 |
)% |
|
Gross Margin |
|
19.0 |
% |
13.9 |
% |
(510) bps |
|
19.1 |
% |
11.6 |
% |
(750) bps |
|
Gross Margin (% Inputs revenue) |
|
19.2 |
% |
14.0 |
% |
(510) bps |
|
19.6 |
% |
12.2 |
% |
(740) bps |
| |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
338.3 |
|
132.3 |
|
(61 |
)% |
|
511.4 |
|
155.3 |
|
(70 |
)% |
|
Adjusted EBITDA margin |
|
12.2 |
% |
5.0 |
% |
(720) bps |
|
11.0 |
% |
3.3 |
% |
(770) bps |
|
Adjusted EBITDA (% Inputs revenue) |
|
12.3 |
% |
5.1 |
% |
(720) bps |
|
11.3 |
% |
3.5 |
% |
(780) bps |
|
Brazil Ag Retail KPIs |
|
2Q23 |
2Q24 |
Chg. % |
|
|
|
|
|
|
| Retail stores |
|
175 |
172 |
(2 |
)% |
| Number of RTVs |
|
736 |
1,040 |
41 |
% |
Latam Ag Retail
- Segment
revenue was $54.9 million in 2Q24, marking a -2% decrease from the
prior year quarter (a decrease of -8% in BRL terms, and -17% in
local Colombian Peso terms), led primarily by price deflationary
headwinds to fertilizers and crop protection distribution revenue,
and the ongoing impact of the discontinuation of a herbicide from a
supplier’s product lineup. These headwinds to revenue were partly
offset by growth in sales of specialty product, seeds, and
services, as well as the currency tailwind stemming from the
appreciation of the Colombian Peso relative to the US Dollar and
Brazilian Real.
- Segment
gross profit was $9.9 million in 2Q24, a decrease of -14% y/y over
the prior year period, while gross margins declining by -230 bps to
17.8% due primarily to the above-mentioned impact of pricing
deflation to crop protection and fertilizer distribution
margins.
- Adjusted EBITDA decreased -34% y/y
to $4.7 million, and Adjusted EBITDA margins compressed by -410 bps
to 8.4% due to the same drivers outlined above.
|
Latam Ag Retail (USD) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of US dollars) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Inputs & services
revenue |
|
56.2 |
|
54.9 |
|
(2 |
)% |
|
117.7 |
|
115.0 |
|
(2 |
)% |
| Grains
revenue |
|
0.8 |
|
0.9 |
|
11 |
% |
|
6.0 |
|
7.1 |
|
17 |
% |
|
Revenue |
|
57.0 |
|
55.8 |
|
(2 |
)% |
|
123.7 |
|
122.1 |
|
(1 |
)% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
11.5 |
|
9.9 |
|
(14 |
)% |
|
21.0 |
|
19.1 |
|
(9 |
)% |
|
Gross Margin |
|
20.2 |
% |
17.8 |
% |
(230) bps |
|
17.0 |
% |
15.6 |
% |
(140) bps |
|
Gross Margin (% Inputs revenue) |
|
20.4 |
% |
18.1 |
% |
(230) bps |
|
17.9 |
% |
16.6 |
% |
(130) bps |
| |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
7.1 |
|
4.7 |
|
(34 |
)% |
|
11.5 |
|
7.8 |
|
(32 |
)% |
|
Adjusted EBITDA margin |
|
12.4 |
% |
8.4 |
% |
(410) bps |
|
9.3 |
% |
6.4 |
% |
(290) bps |
|
Adjusted EBITDA (% Inputs revenue) |
|
12.6 |
% |
8.5 |
% |
(410) bps |
|
9.8 |
% |
6.8 |
% |
(300) bps |
|
Latam Ag Retail (BRL) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of Brazilian reais) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Inputs & services
revenue |
|
296.1 |
|
272.0 |
|
(8 |
)% |
|
617.9 |
|
565.6 |
|
(8 |
)% |
| Grains
revenue |
|
4.2 |
|
4.3 |
|
4 |
% |
|
31.7 |
|
34.9 |
|
10 |
% |
|
Revenue |
|
300.3 |
|
276.3 |
|
(8 |
)% |
|
649.6 |
|
600.5 |
|
(8 |
)% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
60.5 |
|
49.2 |
|
(19 |
)% |
|
110.5 |
|
93.9 |
|
(15 |
)% |
|
Gross Margin |
|
20.2 |
% |
17.8 |
% |
(230) bps |
|
17.0 |
% |
15.6 |
% |
(140) bps |
|
Gross Margin (% Inputs revenue) |
|
20.4 |
% |
18.1 |
% |
(230) bps |
|
17.9 |
% |
16.6 |
% |
(130) bps |
| |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
37.4 |
|
23.1 |
|
(38 |
)% |
|
60.5 |
|
38.4 |
|
(37 |
)% |
|
Adjusted EBITDA margin |
|
12.4 |
% |
8.4 |
% |
(410) bps |
|
9.3 |
% |
6.4 |
% |
(290) bps |
|
Adjusted EBITDA (% Inputs revenue) |
|
12.6 |
% |
8.5 |
% |
(410) bps |
|
9.8 |
% |
6.8 |
% |
(300) bps |
|
Latam Ag Retail KPIs |
|
2Q23 |
2Q24 |
Chg. % |
|
|
|
|
|
|
| Retail stores |
|
40 |
37 |
(8 |
)% |
| Number of RTVs |
|
276 |
263 |
(5 |
)% |
Crop Care
- Segment
revenue was $72.8 million in 2Q24, marking a 26% increase (19% in
BRL terms) from the previous year, reflecting strong performance in
the specialty fertilizer product category (up 55%), as well as the
contribution of newly acquired manufacturer of adjuvants and
enhancers, Cromo Química, which contributed 5% to Crop Care’s 2Q24
segment revenue.
- Cromo’s
y/y revenue growth exceeded 100% in 2Q24, benefiting from effective
cross-selling with Brazil Ag Retail distribution. These positive
contributors to revenue were partly offset by a -19% decline in
biological products sales, which were adversely impacted by the
shift in timing of farmers purchasing decisions, and by the impact
of El Niño on the safrinha corn crop.
- Segment
gross profit grew 21% y/y to $25.7 million in 2Q24, while gross
margins decreased by -160 bps to 35.3% due to adverse mix effects
from the relative performance of high-margin biological products in
the quarter.
- Adjusted EBITDA grew 8% y/y to $16.2
million in 2Q24, while Adjusted EBITDA margins decreased by -380
bps to 22.2% due to the above-mentioned gross margin headwinds,
along with increased investments in R&D and other growth
initiatives.
|
Crop Care (USD) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of US dollars) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Revenue |
|
57.7 |
|
72.8 |
|
26 |
% |
|
93.7 |
|
108.5 |
|
16 |
% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
21.3 |
|
25.7 |
|
21 |
% |
|
38.1 |
|
41.2 |
|
8 |
% |
|
Gross Margin |
|
36.9 |
% |
35.3 |
% |
(160) bps |
|
40.6 |
% |
37.9 |
% |
(270) bps |
| |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
15.0 |
|
16.2 |
|
8 |
% |
|
26.8 |
|
21.7 |
|
(19 |
)% |
|
Adjusted EBITDA margin |
|
26.0 |
% |
22.2 |
% |
(380) bps |
|
28.6 |
% |
20.1 |
% |
(850) bps |
|
Crop Care (BRL) |
|
2Q23 |
2Q24 |
Chg. % |
|
1H23 |
1H24 |
Chg. % |
|
(in millions of Brazilian reais) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Revenue |
|
303.5 |
|
360.8 |
|
19 |
% |
|
491.5 |
|
535.8 |
|
9 |
% |
| |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
112.0 |
|
127.4 |
|
14 |
% |
|
199.5 |
|
203.3 |
|
2 |
% |
|
Gross Margin |
|
36.9 |
% |
35.3 |
% |
(160) bps |
|
40.6 |
% |
37.9 |
% |
(260) bps |
| |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
79.0 |
|
80.2 |
|
1 |
% |
|
140.4 |
|
108.4 |
|
(23 |
)% |
|
Adjusted EBITDA margin |
|
26.0 |
% |
22.2 |
% |
(380) bps |
|
28.6 |
% |
20.2 |
% |
(830) bps |
Full Fiscal Year 2024 Consolidated
Outlook4
Lavoro is maintaining its FY2024 guidance, with consolidated
revenue projected between USD $2.0 billion and $2.3 billion,
consolidated Inputs revenue expected to range from $1.7 billion to
$2.0 billion, and consolidated Adjusted EBITDA anticipated to be
between $80 million and $110 million.
| |
|
FY2024 Guidance |
|
Consolidated Financials Outlook |
|
Low |
High |
|
(in millions of US dollars) |
|
|
|
| |
|
|
|
| Revenue |
|
2,000 |
2,300 |
| |
|
|
|
| Inputs
revenue |
|
1,700 |
2,000 |
|
|
|
|
|
| Adjusted
EBITDA |
|
80 |
110 |
Conference Call Details
The Company will host a conference call and
webcast to review its fiscal Second Quarter 2024 results on March
7, 2024, at 5 pm ET / 7 pm BRT.
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/.
4 USD/BRL average period exchange rate embedded
in our financial outlook: monthly exchange rates (4.801 for Jul-23,
4.904 for Aug-23, 4.937 for Sep-23) used for 1Q24; 4.955 for 2Q24;
4.95 for the remainder of FY24
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) for the year, adjusted for
finance income (costs), net, income taxes, depreciation and
amortization and excluding the impact of certain revenues, expenses
and costs that we believe are isolated in nature incurred as part
of our expansion, namely: (i) fair value on inventories sold from
acquired companies, (ii) M&A adjustments that in management’s
judgment do not necessarily occur on a regular basis, (iii) listing
and other expenses recognized in connection with the Business
Combination, (iv) share-based compensation expenses, (v) bonuses
paid out to our employees as a result of the closing of the
Business Combination, (vi) expenses paid to Patria in connection
with management consultancy services, (vii) depreciation and
amortization recognize on cost of goods sold and (viii)
losses/gains on the fair value of commodity forward contracts.
Adjusted EBITDA Margin is calculated as Adjusted EBITDA as a
percentage of revenue for the period/year. Adjusted Net Profit/Loss
is defined as Net Profit/Loss excluding the impact of certain
revenues, expenses and costs that we believe are isolated in nature
incurred as part of our expansion, namely: (i) fair value on
inventories sold from acquired companies, (ii) M&A adjustments
that in management’s judgment do not necessarily occur on a regular
basis, (iii) listing and other expenses recognized in connection
with the Business Combination, (iv) share-based compensation
expenses, (v) bonuses paid out to our employees as a result of the
closing of the Business Combination, (vi) expenses paid to Patria
in connection with management consultancy services, (vii)
depreciation and amortization recognize on cost of goods sold and
(viii) losses/gains on the fair value of commodity forward
contracts. 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
|
Reconciliation of Adjusted EBITDA (USD) |
|
2Q23 |
2Q24 |
|
1H23 |
1H24 |
|
(in millions of US dollars) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Net profit (loss) |
|
35.3 |
1.9 |
|
|
50.4 |
|
(12.6 |
) |
|
(+) Income taxes, current and deferred |
|
2.4 |
(8.6 |
) |
|
(7.8 |
) |
(26.3 |
) |
| (+) Finance income
(costs) |
|
31.9 |
37.3 |
|
|
60.0 |
|
63.3 |
|
| (+) Depreciation and
amortization |
|
7.0 |
7.0 |
|
|
15.5 |
|
17.3 |
|
| (+) Share of profit of an
associate |
|
– |
0.2 |
|
|
– |
|
0.4 |
|
| (+) M&A expenses |
|
0.5 |
0.5 |
|
|
1.0 |
|
3.9 |
|
| (+) Stock-based
compensation |
|
0.5 |
1.0 |
|
|
2.2 |
|
2.2 |
|
| (+) DeSPAC related bonus |
|
– |
0.1 |
|
|
– |
|
1.4 |
|
| (+) Related party consultancy
services |
|
– |
0.9 |
|
|
0.6 |
|
1.8 |
|
| (+)
Other non-operating (benefits) expenses |
|
– |
– |
|
|
– |
|
– |
|
|
Adjusted EBITDA |
|
77.5 |
40.1 |
|
|
121.9 |
|
51.3 |
|
|
Reconciliation of Adjusted EBITDA (BRL) |
|
2Q23 |
2Q24 |
|
1H23 |
1H24 |
|
(in millions of Brazilian reais) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Net profit (loss) |
|
185.8 |
9.2 |
|
|
263.9 |
|
(61.8 |
) |
|
(+) Income taxes, current and deferred |
|
12.5 |
(42.6 |
) |
|
(41.0 |
) |
(128.2 |
) |
| (+) Finance income
(costs) |
|
167.9 |
184.7 |
|
|
315.7 |
|
313.6 |
|
| (+) Depreciation and
amortization |
|
37.1 |
34.8 |
|
|
81.6 |
|
85.0 |
|
| (+) Share of profit of an
associate |
|
– |
0.8 |
|
|
– |
|
1.8 |
|
| (+) M&A expenses |
|
2.4 |
2.4 |
|
|
5.0 |
|
19.3 |
|
| (+) Stock-based
compensation |
|
2.5 |
4.7 |
|
|
11.4 |
|
10.7 |
|
| (+) DeSPAC related bonus |
|
– |
0.4 |
|
|
– |
|
7.0 |
|
| (+) Related party consultancy
services |
|
– |
4.4 |
|
|
3.1 |
|
8.7 |
|
| (+)
Other non-operating (benefits) expenses |
|
– |
0.1 |
|
|
0.2 |
|
0.6 |
|
|
Adjusted EBITDA |
|
408.2 |
198.9 |
|
|
640.0 |
|
256.7 |
|
Reconciliation of Adjusted Net Profit
(Loss)
|
Reconciliation of Adjusted Net Profit (USD) |
|
2Q23 |
2Q24 |
|
1H23 |
1H24 |
|
(in millions of US dollars) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Net profit (loss) |
|
35.3 |
|
1.9 |
|
|
50.4 |
|
(12.6 |
) |
|
(+) Fair value of inventories sold from acquired companies |
|
2.3 |
|
(1.4 |
) |
|
2.6 |
|
0.2 |
|
| (+) Share of profit of an
associate |
|
— |
|
0.2 |
|
|
— |
|
0.4 |
|
| (+) M&A expenses |
|
0.5 |
|
0.5 |
|
|
1.0 |
|
3.9 |
|
| (+) Stock Option Plan |
|
0.5 |
|
1.0 |
|
|
2.2 |
|
2.2 |
|
| (+) DeSPAC related bonus |
|
— |
|
0.1 |
|
|
— |
|
1.4 |
|
| (+) Related party consultancy
services |
|
— |
|
0.9 |
|
|
0.6 |
|
1.8 |
|
| (+) Other non-operating
(benefits) expenses |
|
— |
|
— |
|
|
— |
|
— |
|
| (+)
Income tax impact of adjustments |
|
(1.1 |
) |
(0.4 |
) |
|
(2.2 |
) |
(3.4 |
) |
|
Adjusted net profit (loss) |
|
37.4 |
|
2.6 |
|
|
54.6 |
|
(6.1 |
) |
|
Reconciliation of Adjusted Net Profit (BRL) |
|
2Q23 |
2Q24 |
|
1H23 |
1H24 |
|
(in millions of Brazilian reais) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Net profit (loss) |
|
185.8 |
|
9.2 |
|
|
263.9 |
|
(61.8 |
) |
|
(+) Fair value of inventories sold from acquired companies |
|
12.0 |
|
(7.2 |
) |
|
13.8 |
|
1.1 |
|
| (+) Share of profit of an
associate |
|
— |
|
0.8 |
|
|
— |
|
1.8 |
|
| (+) M&A expenses |
|
2.4 |
|
2.4 |
|
|
5.0 |
|
19.3 |
|
| (+) Stock Option Plan |
|
2.5 |
|
4.7 |
|
|
11.4 |
|
10.7 |
|
| (+) DeSPAC related bonus |
|
— |
|
0.4 |
|
|
— |
|
7.0 |
|
| (+) Related party consultancy
services |
|
— |
|
4.4 |
|
|
3.1 |
|
8.7 |
|
| (+) Other non-operating
(benefits) expenses |
|
— |
|
0.1 |
|
|
0.2 |
|
0.6 |
|
| (+)
Income tax impact of adjustments |
|
(5.8 |
) |
(1.9 |
) |
|
(11.4 |
) |
(16.7 |
) |
|
Adjusted net profit (loss) |
|
197.0 |
|
12.9 |
|
|
286.0 |
|
(29.4 |
) |
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, and Uruguay,
via its team of over 1,000 technical sales representatives (RTVs),
its network of over 210 retail locations, and its digital
marketplace and solutions. 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 Cluster (Brazil Ag Retail): comprises
companies dedicated to the distribution of agricultural inputs such
as crop protection, seeds, fertilizers, and specialty products, in
Brazil.
LatAm Cluster (Latam Ag Retail): includes
companies dedicated to the distribution of agricultural inputs
outside Brazil (currently primarily in Colombia).
Crop Care Cluster (Crop Care): includes
companies that produce and import our own portfolio of private
label products including specialty products (e.g., biologicals and
specialty fertilizers) and off-patent crop protection.
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 presentation 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
condition; 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 the business
combination and being a public company and other risks and
uncertainties indicated from time to time in the proxy
statement/prospectus filed by Lavoro relating to the business
combination or in the future, including those under “Risk Factors”
therein, and in 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 presentation. 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 presentation. Accordingly, undue reliance should not
be placed upon 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
Interim condensed consolidated statement of financial
position As of December 31, 2023 (In thousands of
Brazilian reais - R$, except if otherwise indicated
|
|
December 31,2023 |
June 30,2023 |
|
|
|
|
|
Assets |
|
|
|
Current assets |
|
|
|
Cash equivalents |
693,851 |
564,294 |
|
Trade receivables |
4,291,676 |
2,667,057 |
|
Inventories |
2,648,851 |
1,868,204 |
|
Taxes recoverable |
59,451 |
57,001 |
|
Derivative financial instruments |
28,908 |
40,410 |
|
Commodity forward contracts |
73,264 |
114,861 |
|
Advances to suppliers |
358,833 |
192,119 |
|
Other assets |
51,625 |
32,701 |
|
Total current assets |
8,206,459 |
5,536,646 |
|
|
|
|
|
Non-current assets |
|
|
|
Restricted cash |
144,384 |
139,202 |
|
Trade receivables |
44,862 |
41,483 |
|
Other assets |
5,420 |
8,390 |
|
Commodity forward contracts |
20,622 |
|
|
Judicial deposits |
9,007 |
8,820 |
|
Right-of-use assets |
192,419 |
173,679 |
|
Taxes recoverable |
363,187 |
282,903 |
|
Deferred tax assets |
431,135 |
329,082 |
|
Investments |
1,879 |
— |
|
Property, plant and equipment |
214,455 |
196,588 |
|
Intangible assets |
979,769 |
807,192 |
|
Total non-current assets |
2,407,139 |
1,987,339 |
|
|
|
|
|
Total assets |
10,613,598 |
7,523,984 |
Interim condensed consolidated statement of financial
positionAs of December 31, 2023(In thousands of Brazilian
reais - R$, except if otherwise indicated)
|
|
December 31,2023 |
June 30, 2023 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Trade payables |
4,699,892 |
|
2,575,701 |
|
|
Trade payables – Supplier finance |
- |
|
26,157 |
|
|
Lease liabilities |
91,885 |
|
85,865 |
|
|
Borrowings |
1,613,955 |
|
922,636 |
|
|
Obligations to FIAGRO quota holders |
168,892 |
|
150,018 |
|
|
Payables for the acquisition of subsidiaries |
248,471 |
|
221,509 |
|
|
Derivative financial instruments |
54,354 |
|
44,008 |
|
|
Commodity forward contracts |
121,295 |
|
207,067 |
|
|
Salaries and social charges |
174,702 |
|
223,376 |
|
|
Taxes payable |
61,103 |
|
37,105 |
|
|
Dividends payable |
9,263 |
|
1,619 |
|
|
Warrant liabilities |
36,613 |
|
36,446 |
|
|
Advances from customers |
459,040 |
|
488,578 |
|
|
Other liabilities |
54,140 |
|
34,388 |
|
|
Total current liabilities |
7,793,605 |
|
5,054,473 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
Trade payables |
889 |
|
2,547 |
|
|
Lease liabilities |
112,858 |
|
98,554 |
|
|
Borrowings |
32,546 |
|
42,839 |
|
|
Agribusiness Receivables Certificates |
403,153 |
|
— |
|
|
Commodity forward contracts |
410 |
|
— |
|
|
Payables for the acquisition of subsidiaries |
23,110 |
|
53,700 |
|
|
Provision for contingencies |
12,938 |
|
8,845 |
|
|
Liability for FPA Shares |
144,306 |
|
139,133 |
|
|
Other liabilities |
521 |
|
223 |
|
|
Taxes payable |
800 |
|
963 |
|
|
Deferred tax liabilities |
18,189 |
|
12,351 |
|
|
Total non-current liabilities |
749,720 |
|
359,155 |
|
|
|
|
|
|
Equity |
|
|
|
Share Capital |
591 |
|
591 |
|
|
Additional Paid-in Capital |
2,108,209 |
|
2,134,339 |
|
|
Capital reserve |
25,227 |
|
14,533 |
|
|
Other comprehensive loss |
(11,460 |
) |
(28,634 |
) |
|
Accumulated losses |
(342,258 |
) |
(260,710 |
) |
|
Equity attributable to shareholders of the Parent
Company |
1,780,309 |
|
1,860,119 |
|
|
Non-controlling interests |
289,964 |
|
250,238 |
|
|
Total equity |
2,070,273 |
|
2,110,357 |
|
|
|
|
|
|
Total liabilities and equity |
10,613,598 |
|
7,523,984 |
|
Interim condensed consolidated statement of profit or
loss(In thousands of Brazilian reais - R$, except if
otherwise indicated)
|
|
Three-month period ended December 31, |
Six-month period ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Revenue |
3,065,902 |
|
3,220,211 |
|
5,431,858 |
|
5,506,175 |
|
|
Cost of goods sold |
(2,555,320 |
) |
(2,569,096 |
) |
(4,627,991 |
) |
(4,380,852 |
) |
|
|
|
|
|
|
|
Gross profit |
510,582 |
|
651,115 |
|
803,867 |
|
1,125,323 |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Sales, general and administrative expenses |
(380,120 |
) |
(303,013 |
) |
(700,358 |
) |
(618,438 |
) |
|
Other operating (expenses) income, net |
21,560 |
|
18,093 |
|
21,912 |
|
31,710 |
|
|
Share of profit of an associate |
(786 |
) |
|
(1,753 |
) |
— |
|
|
|
|
|
|
|
|
Operating profit |
151,236 |
|
366,195 |
|
123,668 |
|
538,595 |
|
|
|
|
|
|
|
|
Finance Income (costs) |
|
|
|
|
|
Finance income |
111,399 |
|
71,064 |
|
197,298 |
|
159,883 |
|
|
Finance costs |
(278,248 |
) |
(227,948 |
) |
(514,235 |
) |
(455,368 |
) |
|
Other financial income (costs) |
(17,848 |
) |
(10,973 |
) |
3,288 |
|
(20,192 |
) |
|
|
|
|
|
|
|
Profit (loss) before income taxes |
(33,461 |
) |
198,338 |
|
(189,981 |
) |
222,918 |
|
|
|
|
|
|
|
|
Income taxes |
|
|
|
|
|
Current |
(6,544 |
) |
(30,535 |
) |
31,949 |
|
(14,303 |
) |
|
Deferred |
49,186 |
|
18,007 |
|
96,216 |
|
55,274 |
|
|
|
|
|
|
|
|
Profit (loss) for the period |
9,181 |
|
185,810 |
|
(61,816 |
) |
263,889 |
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Net investment of the parent/ Equity holders of the parent |
(15,011 |
) |
149,695 |
|
(81,548 |
) |
209,310 |
|
|
Non-controlling interests |
24,192 |
|
36,115 |
|
19,732 |
|
54,579 |
|
|
|
|
|
|
|
|
Earnings (loss) per share |
|
|
|
|
|
Basic, profit (loss) for the period attributable to net investment
of the parent/ equity holders of the parent |
(0.13 |
) |
1.32 |
|
(0.72 |
) |
1.84 |
|
|
Diluted, profit (loss) for the period attributable to net
investment of the parent/ equity holders of the parent |
(0.13 |
) |
1.29 |
|
(0.72 |
) |
1.82 |
|
Interim consolidated statement of comprehensive income
or loss(In thousands of Brazilian reais - R$, except if
otherwise indicated)
|
|
Three-month period ended December 31, |
Six-month period ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Profit (loss) for the period |
9,181 |
|
185,810 |
|
(61,816 |
) |
263,889 |
|
|
Items that may be reclassified to profit or loss in
subsequent periods |
|
|
|
|
|
Exchange differences on translation of foreign operations |
3,146 |
|
(89,512 |
) |
17,340 |
|
(28,488 |
) |
|
|
|
|
|
|
|
Total comprehensive income (loss) for the
period |
12,327 |
|
96,298 |
|
(44,476 |
) |
235,401 |
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Net investment of the parent/ equity holders of the parent |
(12,031 |
) |
61,190 |
|
(64,374 |
) |
181,829 |
|
|
Non-controlling interests |
24,358 |
|
35,108 |
|
19,898 |
|
53,572 |
|
Interim condensed consolidated statement of cash
flows For the three-month period ended December 31,
2023(In thousands of Brazilian reais - R$, except if otherwise
indicated
|
|
2023 |
|
2022 |
|
|
Operating activities: |
|
|
|
Profit (loss) before income taxes |
(189,980 |
) |
222,918 |
|
|
Adjustments to reconcile profit (loss) for the period to net cash
flow: |
|
|
|
Allowance for expected credit losses |
76,212 |
|
17,838 |
|
|
Foreign exchange differences |
(30,017 |
) |
7,705 |
|
|
Accrued interest expenses |
158,715 |
|
163,972 |
|
|
Interest arising from revenue contracts |
(161,270 |
) |
(139,450 |
) |
|
Accrued interest on trade payables |
323,457 |
|
279,176 |
|
|
Loss (gain) on derivatives |
6,947 |
|
7,513 |
|
|
Interest from tax benefits |
(17,736 |
) |
(10,390 |
) |
|
Fair value on commodity forward contracts |
19,783 |
|
4,974 |
|
|
Gain on changes in fair value of warrants |
167 |
|
- |
|
|
Amortization of intangibles |
35,311 |
|
35,677 |
|
|
Amortization of right-of-use assets |
39,247 |
|
24,170 |
|
|
Depreciation |
9,708 |
|
8,240 |
|
|
Losses and damages of inventories |
5,003 |
|
6,103 |
|
|
Provisions for contingencies |
3,941 |
|
(2,073 |
) |
|
Share-based payment |
10,694 |
|
12,112 |
|
|
Share of profit of an associate |
1,753 |
|
- |
|
|
Others |
(3,162 |
) |
7,394 |
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
Assets |
|
|
|
Trade receivables |
(1,690,556 |
) |
(1,759,501 |
) |
|
Inventories |
(683,870 |
) |
(753,503 |
) |
|
Advances to suppliers |
(159,378 |
) |
24,043 |
|
|
Derivative financial instruments |
14,901 |
|
378 |
|
|
Taxes recoverable |
(40,107 |
) |
(116,213 |
) |
|
Other receivables |
(78,515 |
) |
20,514 |
|
|
Liabilities |
|
|
|
Trade payables |
2,113,050 |
|
1,420,984 |
|
|
Advances from customers |
(34,312 |
) |
32,293 |
|
|
Salaries and social charges |
(53,252 |
) |
2,350 |
|
|
Taxes payable |
23,310 |
|
65,114 |
|
|
Other payables |
48,065 |
|
(57,328 |
) |
|
Interest paid on borrowings and FIAGRO quota holders |
(132,284 |
) |
(64,546 |
) |
|
Interest paid on acquisitions of subsidiary |
(6,328 |
) |
(3,127 |
) |
|
Interest paid on trade payables and lease liabilities |
(459,601 |
) |
(248,435 |
) |
|
Interest received from revenue contracts |
206,829 |
|
111,731 |
|
|
Income taxes paid/received |
12,976 |
|
(28,422 |
) |
|
|
|
|
|
Net cash flows used in operating activities |
(630,299 |
) |
(707,789 |
) |
|
|
|
|
|
Investing activities: |
|
|
|
Acquisition of subsidiary, net of cash acquired |
(187,723 |
) |
(110,919 |
) |
|
Additions to property, plant and equipment and intangible
assets |
(47,749 |
) |
(29,399 |
) |
|
Proceeds from the sale of property, plant and equipment |
3,539 |
|
1,598 |
|
|
Net cash flows used in investing activities |
(231,933 |
) |
(138,720 |
) |
|
|
|
|
|
Financing activities: |
|
|
|
Proceeds from borrowings |
1,702,374 |
|
1,105,864 |
|
|
Repayment of borrowings |
(1,084,144 |
) |
(199,715 |
) |
|
Proceeds from Agribusiness Receivables Certificates, net of
transaction cost |
402,259 |
|
— |
|
|
Payment of principal portion of lease liabilities |
(37,952 |
) |
(22,977 |
) |
|
Proceeds from FIAGRO quota holders, net of transaction costs |
137,496 |
|
143,082 |
|
|
Repayment of FIAGRO quota holders |
(109,126 |
) |
— |
|
|
Trade payables – Supplier finance |
(26,157 |
) |
14,753 |
|
|
Acquisition of non-controlling interests |
— |
|
(87,500 |
) |
|
Dividend payments (i) |
(1,208 |
) |
— |
|
|
Capital contributions |
— |
|
1,871 |
|
|
|
|
|
|
Net cash flows provided by financing
activities |
983,542 |
|
955,378 |
|
|
|
|
|
|
Net increase in cash equivalents |
121,310 |
|
108,869 |
|
|
Net foreign exchange difference |
8,246 |
|
- |
|
|
|
|
|
|
Cash equivalents at beginning of the period |
564,294 |
|
254,413 |
|
|
|
|
|
|
Cash equivalents at end of the period |
693,851 |
|
363,282 |
|
Lavoro (NASDAQ:LVRO)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Lavoro (NASDAQ:LVRO)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
