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Earnings Call Summary | Lavoro(LVRO.US) Q2 2024 Earnings Conference

Futu News ·  Mar 8 14:36  · Conference Call

The following is a summary of the Lavoro Limited (LVRO) Q2 2024 Earnings Call Transcript:

Financial Performance:

  • Lavoro reported a slight revenue increase in Q2, reaching $618 million.

  • A notable success was the 20% growth in Crop Care's revenues and gross profits.

  • However, Q2 gross profit and adjusted EBITDA saw decreases of 17% and 48% respectively over the prior year period.

  • Gross profit contracted to 16.7% due to a decrease of 17% to $103 million.

  • Adjusted EBITDA declined significantly to $40.1 million, down by $37.4 million from the previous year, constricting the EBITDA margin to 6.5%.

  • Increased selling, general, and administrative expenses by 300 basis points to 11.3% impacted the bottom line as it led the adjusted net profit to decline by $34.8 million to $2.6 million.

Business Progress:

  • Lavoro managed to achieve substantial volume growth in crop protection, fertilizers, and specialty products by 46%, 63%, and 29% respectively.

  • Industry transformation is anticipated due to current market landscape according to Lavoro.

  • Strategic sales force enhancement with the hiring of over 1,040 RTVs in Brazil contributed to the company's market share gain.

  • Lavoro experienced revenue growth in its Brazil Ag Retail and Crop Care segments, with the latter driven by specialty fertilizer product Integra and strategic acquisitions.

  • Even in the drought-affected areas, the company remains committed to meeting farmers' needs, and plans to focus its increased R&D expenditure on hiring new experienced sales consultants to promote sales growth in the next financial year.

More details: Lavoro IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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