Lavoro Limited (LVRO) investor relations material

Executive summary

• Announced an out-of-court restructuring agreement with key suppliers for the Brazil ag retail subsidiary, extending payment terms and securing multi-year inventory financing to address severe inventory constraints.

• Filed an out-of-court reorganization plan (EJ Plan) in Brazil, covering R$2.5 billion in trade payables, to standardize supply and financing terms and ensure product availability.

• The agreement is already in effect, restoring normal inventory flow in Q4, but full ratification is pending court approval, expected within three to five months.

• The plan is limited to the Brazil ag retail segment and does not impact other subsidiaries, financial lenders, or employees.

• FY2025 financial guidance withdrawn due to ongoing restructuring and financial closing complexities.

Financial highlights

• 2Q25 consolidated revenue fell 27% year-over-year to R$2.25 billion (US$384.4 million, down 38%), mainly due to inventory shortages in Brazil ag retail.

• 2Q25 consolidated gross profit decreased 28% to R$366.9 million, with gross margin contracting 40 bps to 16.3%.

• Brazil ag retail segment revenue dropped 30% year-over-year to R$1.84 billion; gross margin contracted 240 bps to 11.5%.

• LATAM ag retail revenue grew 4% to R$287.3 million, with gross margin expanding 480 bps to 22.6%.

• Crop Care segment revenue dropped 30% to R$251.5 million, with gross margin contracting 1,160 bps to 23.7%.

Outlook and guidance

• FY2025 guidance withdrawn due to uncertainties and complexities from the restructuring process.

• Management expects to provide full financial results upon completion of closing procedures.

• Projections indicate a meaningful recovery in farmer profitability for the current crop year, driven by improved weather and commodity prices.