Lavoro (LVRO) Q4 2024 earnings summary

Executive summary

• FY2024 revenue grew 6% to R$1.89 billion (or $1.89 billion, up 5% year-over-year), driven by strong grains and Crop Care performance, and market share gains in Brazil Ag Retail, despite deflationary input prices.

• Net loss widened to R$154.6 million ($154.6 million), with adjusted net loss at $144.9 million, reflecting margin compression, higher finance costs, and income tax headwinds.

• Adjusted EBITDA for FY2024 dropped 64% to $53.4 million, with margin compressing to 2.8%, due to lower gross profit and higher operating expenses.

• Cash flows from operations improved to $33.1 million (R$165.8 million) from the prior year.

Financial highlights

• Q4 consolidated revenue rose 2% year-over-year to R$271.1 million ($271.1 million), with grains revenue up 41% and inputs revenue down 6%.

• Full year gross profit fell 19% to $268.4 million, with gross margin down 430 bps to 14.2%.

• Adjusted EBITDA for the year was $53.4 million, down 64% year-over-year; margin at 2.8%, down 550 bps.

• Adjusted net loss was $144.9 million in FY2024, compared to adjusted net profit of $30.9 million in FY2023.

Outlook and guidance

• FY2025 consolidated revenue expected between R$8.6–9.2 billion ($1.50–$1.60 billion); inputs revenue between R$7.7–8.3 billion ($1.35–$1.45 billion).

• Adjusted EBITDA is projected to grow in FY2025, driven by margin improvement and operational efficiency.

• Brazil's ag inputs retail market is forecast to decline by ~10% in FY2025, with low-single-digit volume growth offset by price declines.

• Seasonality and order cadence expected to be similar to the previous year.