Lavoro (LVRO) investor relations material

Executive summary

• Preliminary unaudited FY25 results show a 34% year-over-year revenue decline to $6.2 billion, mainly due to inventory shortages and order cancellations in Brazil Ag Retail.

• Gross profit fell 33% to R$0.9 billion, with margin expansion in Latam Ag Retail offset by declines in Brazil Ag Retail and Crop Care.

• The company is undergoing an out-of-court restructuring (EJ Plan), with 64% of eligible supplier claims now supporting the plan, up from 52% in September 2025.

• The company reported a consolidated equity deficit of R$1,997 million as of June 30, 2025, compared to a surplus of R$816 million a year earlier, driven by accumulated losses and market headwinds.

Financial highlights

• FY25 consolidated revenue: $6.2 billion, down 34% year-over-year.

• FY25 consolidated gross profit: R$0.9 billion, down 33% year-over-year.

• Net loss for FY25: R$2,860 million, compared to a net loss of R$685 million in FY24.

• Cash equivalents at year-end: R$330 million, down from R$857 million in FY24.

• Net working capital deficit: R$2,398 million (consolidated), compared to a deficit of R$446 million in FY24.

Outlook and guidance

• Court ratification of the restructuring plan is expected by late November 2025, with audit completion possible by late December 2025, but timing remains uncertain.

• Management is focused on executing sales, collections, and cost reduction plans, as well as regularizing debt service and asset sales to stabilize operations.