Lavoro Q1 Revenue Up 11% to $483.1M, Gross Profit Down 34%

TL;DR

**Lavoro's Q1 revenue grew, but gross profit plunged 34% to $59.5M, raising margin concerns.**

AI Summary

Lavoro Ltd. reported its fiscal first quarter 2024 earnings on January 24, 2024, revealing revenue of $483.1 million, an 11% increase year-over-year (3% in constant currency). Despite this revenue growth, gross profit for the quarter decreased by 34% to $59.5 million. This matters to investors because while the company is growing its top line, the significant drop in gross profit suggests potential margin pressures or increased costs, which could impact future profitability and stock performance.

Why It Matters

The revenue growth indicates Lavoro is expanding its market presence, but the sharp decline in gross profit signals potential challenges in profitability that investors should scrutinize.

Risk Assessment

Risk Level: medium — The significant decline in gross profit despite revenue growth indicates potential operational or pricing pressures that could impact future earnings and shareholder value.

Analyst Insight

A smart investor would investigate the reasons behind the 34% gross profit decline despite revenue growth, looking into cost of goods sold, pricing strategies, and competitive pressures before making any investment decisions.

Key Numbers

• $483.1 million — Revenue (Represents an 11% increase year-over-year for FY1Q24, showing top-line growth.)
• +11% — Revenue Growth (Indicates market share gains for Lavoro in FY1Q24.)
• $59.5 million — Gross Profit (Represents a 34% decrease year-over-year for FY1Q24, highlighting significant margin compression.)
• -34% — Gross Profit Decrease (Signals potential challenges in cost management or pricing power for Lavoro in FY1Q24.)

Key Players & Entities

• Lavoro Ltd. (company) — registrant and reporting entity
• Ruy Cunha (person) — Chief Executive Officer of Lavoro Limited
• $483.1 million (dollar_amount) — Lavoro's revenue for fiscal first quarter 2024
• $59.5 million (dollar_amount) — Lavoro's gross profit for fiscal first quarter 2024
• January 24, 2024 (date) — date of the press release and filing
• September 30, 2023 (date) — end of the three-month period for the unaudited financial statements

Forward-Looking Statements

• Lavoro will face continued pressure on gross margins in the next fiscal quarter. (Lavoro Ltd.) — medium confidence, target: March 31, 2024
• The company will need to provide a detailed explanation for the significant gross profit decline in future communications. (Lavoro Ltd.) — high confidence, target: Next earnings call

FAQ

Filing Documents

• a6-kcover.htm (6-K) — 20KB
• a991-1q24pressrelease.htm (EX-99.1) — 160KB
• a20240124_1q24erpresoxvf.htm (EX-99.2) — 35KB
• a993-1q24lavorolimited6xk.htm (EX-99.3) — 1583KB
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• 0001945711-24-000011.txt ( ) — 5248KB

From the Filing

Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January 2024 Commission File Number 001-41635 Lavoro Limited (Exact name of registrant as specified in its charter) Av. Dr. Cardoso de Melo, 1450, 4th floor, office 401 So Paulo—SP, 04548-005, Brazil +55 (11) 4280-0709 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F X Form 40-F TABLE OF CONTENTS EXHIBIT 99.1 Press release dated January 24 , 2024 – Lavoro Reports Fiscal First Quarter 2024 Earnings Results 99.2 Fiscal First Quarter 2024 Earnings Presentation 99.3 Unaudited Interim Consolidated Financial Statements of Lavoro Limited for the Three-Month Period Ended September 30, 2023 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Lavoro Limited By s Ruy Cunha Name Ruy Cunha Title Chief Executive Officer Date January 24, 2024

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View this 6-K filing on SEC EDGAR