The earnings call presented a mixed picture. While there were notable achievements in grains and Crop Care revenue growth, as well as some improvement in gross margins, these were counterbalanced by significant declines in Brazil Ag Retail inputs revenue, gross margin compression, and a substantial increase in net loss. The farmer liquidity constraints and credit issues also pose challenges. The sentiment reflects caution amidst some positive trends.
Company Guidance
During Lavoro's Q4 2024 earnings call, the company provided guidance for fiscal year 2025, projecting consolidated revenues between BRL 8.6 billion and BRL 9.2 billion, with inputs revenue ranging from BRL 7.7 billion to BRL 8.3 billion. On a U.S. dollar basis, consolidated revenue is expected to range from $1.5 billion to $1.6 billion, and inputs revenue from $1.35 billion to $1.45 billion. Lavoro anticipates growth in adjusted EBITDA, driven by margin improvements. The company foresees the ag retail input market contracting by approximately 10% due to modest volume growth being offset by last year's price declines. Despite challenges in the market environment, Lavoro aims to grow slightly above market rates by improving margins, operating efficiency, and optimizing its retail network. The company noted positive market dynamics such as improved farmer profitability and stabilized input prices, although farmer liquidity constraints pose a challenge.
Grains Revenue Growth
Grains revenue increased by 40% to $67.7 million in Q4, driven by strong barter operations.
Crop Care Revenue Surge
Crop Care revenue increased by 87% to $19.9 million, with significant contributions from Union Agro.
Improved Gross Margins
Gross margins improved by 70 basis points year-over-year to 22.3% in the quarter, marking the first positive impact since the start of the downturn.
Fiscal Year Revenue Growth
Consolidated revenue for fiscal year 2024 grew by 6%, reaching $1.89 billion, mainly due to a 61% increase in grains revenue.
Positive Net Cash Flows
Net cash flows from operations totaled BRL 43.1 million, up from BRL 20.9 million the previous year.
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Lavoro Limited (LVRO) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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LVRO Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Oct 31, 2024
$4.00
$4.48
+12.00%
Jun 03, 2024
$6.47
$5.58
-13.76%
Mar 07, 2024
$6.59
$6.60
+0.15%
Jan 24, 2024
$8.20
$8.20
0.00%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Lavoro Limited (LVRO) report earnings?
Lavoro Limited (LVRO) is schdueled to report earning on Jan 22, 2025, TBA Not Confirmed.
What is Lavoro Limited (LVRO) earnings time?
Lavoro Limited (LVRO) earnings time is at Jan 22, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
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