Lavoro's earnings performance has shown fluctuations over recent quarters, with both positive and negative trends:
- Q1 2025 Earnings Performance:
- Lavoro reported a decrease in consolidated revenue by 13% year-over-year to R$2.05 billion, primarily due to input price deflation in Brazil’s Ag Retail sector1.
- Despite this, the company experienced a 10% increase in gross profit, driven by improved distribution margins1.
- However, Lavoro faced a net loss of R$267.1 million, exacerbated by changes in deferred tax assets and increased finance costs1.
- Adjusted EBITDA fell by 5% to R$54.4 million, impacted by higher SG&A expenses1.
- Q4 2024 Earnings Performance:
- Lavoro's annual consolidated revenue increased by 6% to $1.89 billion, with Grain revenue up by 61%2.
- However, gross profit declined by 19% to $268.4 million, and gross margin compressed by 430 basis points to 14.2%2.
- The company faced a significant net loss of $77.2 million for the quarter, attributed to a rise in input costs and finance charges2.
- Comparison with Q1 2024:
- In Q1 2025, Lavoro's revenue missed analyst estimates by 6%, and the earnings per share (EPS) also missed estimates by 29%34.
- The company reported a net loss of R$248.5 million in Q1 2025, which is a significant increase from the net loss of R$267.1 million in Q1 20243.
- Segmental Performance:
- The Crop Care segment showed strong performance, with a significant 68% revenue growth, driven by the strong performance of subsidiaries Union Agro and Perterra1.
- Gross profit and adjusted EBITDA improved, with a 10% increase in gross profit and a 320 basis points increase in gross margin5.
Overall, while Lavoro has shown positive growth in certain segments and gross profit margins, it has faced significant challenges in terms of revenue decline, increased net losses, and liquidity issues. The company's performance is influenced by market conditions, input prices, and operational efficiency.
4/11/2025 04:28am
