Lavoro Limited (LVRO) Q1 2024 Earnings Report

Lavoro Limited reported a mixed QQ1 2024 performance characterized by a solid top-line in a challenging price environment and ongoing aggressive market-share expansion, but with continued profitability pressures from deflation in Brazil’s crop protection and fertilizer categories. Revenue rose to BRL 2,052,720,000 for the quarter, reflecting volume growth and grains strength, while gross profit reached BRL 321,161,000 for an implied consolidated gross margin around 15.6%. Despite the revenue growth, net income remained negative at BRL -248,533,000, underscoring ongoing balance-sheet and margin pressure driven by industry-wide price deflation and higher operating costs. Management updated full-year 2024 guidance, targeting adjusted EBITDA of BRL 80 million to BRL 110 million, with revenue unchanged, signaling a cautious but constructive view on a eventual margin normalization as destocking unwinds and LatAm agriculture fundamentals remain intact. The company emphasized market-share gains, a strengthened distribution network, and select M&A contributions (Referencia and Cromo Química) as pillars of the medium-term growth plan, while acknowledging El Niño-driven drought and supply-chain headwinds could delay the recovery trajectory into the second and third quarters.