What caused LVRO's earnings to miss forecasts in Q2 2024?

Lavoro's earnings missed forecasts in Q2 2024 due to a combination of factors:

1. Revenue Shortfall: Lavoro reported a revenue of $618.70 million for Q2 2024, which was 1.18% below the analyst estimate of $626.10 million. This shortfall can be attributed to reduced sales in Brazil, where the company closed 70 out of 183 stores, resulting in a 13% drop in revenue.
2. Brazilian Market Conditions: The Brazilian fertilizer-seller, Lavoro, faced significant challenges due to a "significant tightening in inventory financing conditions" and a wave of farmer defaults, which is part of a broader downturn for Brazil’s agribusiness industry. This led to a 16.94% decrease in gross profit and a net loss of $64.8 million in Q3 2024, despite a 6% revenue increase to $514.2 million.
3. Input Price Deflation: Lavoro's margins were affected by input price deflation, which led to a less favorable sales mix and a greater proportion of low-margin Grain revenue. This deflationary pressure continued to impact the company's financial results throughout 2024.

In summary, Lavoro's earnings miss in Q2 2024 was primarily caused by reduced sales in Brazil, due to store closures, and input price deflation, which affected its revenue and gross profit.