Lavoro Limited

Preliminary Q2 consolidated revenue declined 27% year over year to BRL 2.25 billion, or 38% to $384 million in U.S. dollars, reflecting the additional 15% depreciation of the Brazilian real. Preliminary consolidated gross profit decreased 28% to BRL 366 million, and consolidated gross margin contracted 40 basis points to 16.3%. By segment, Brazil Ag Retail revenue fell 30% to BRL 1.84 billion and gross margin fell 240 basis points to 11.5%; Crop Care revenue fell 30% to BRL 251 million and gross margin fell 1,160 basis points to 23.7%; Latam Ag Retail revenue rose 4% to BRL 287 million and gross margin expanded 480 basis points to 22.6%. Management withdrew its prior fiscal 2025 outlook and did not provide new full-year or next-quarter financial guidance.

Ruy Cunha framed the quarter as the result of extraordinary industry headwinds: 40% to 60% input price deflation, drought, farmer liquidity constraints, and then a tighter inventory-financing environment after a major retailer’s judicial reorganization. His tone was defensive but constructive, emphasizing that the new supplier plan is meant to create a leaner, more resilient Lavoro Brazil. He said the company remains committed to the long-term thesis and believes the plan will support a more focused and profitable platform.

No separate CFO commentary was given; the CEO covered the preliminary financials. The key figures highlighted were BRL 2.25 billion in revenue, BRL 366 million in gross profit, and a 16.3% gross margin, along with the segment margin moves in Brazil Ag Retail, Crop Care, and Latam Ag Retail. Management also said the plan covers approximately BRL 2.5 billion in supplier trade payables due by the end of fiscal 2025 and would be repaid in regular semiannual installments over multiple years.

There was no Q&A session because management said it was limited by the ongoing court process and the fact that the second quarter audit was not yet finalized. As a result, no analyst questions or follow-ups were taken. The call focused on the restructuring plan, the preliminary revenue and gross profit figures, and the withdrawal of fiscal 2025 guidance.