AgTech Corporate Stock Market

Lavoro Limited News: Q3 Published & New Acquisition

Lavoro Limited begins trading on NASDAQ

Lavoro Reports Strong Financial Growth, Acquires Cromo Química, and Forges Insurance Partnership with Banco do Brasil Subsidiary

Lavoro, the global agricultural solutions provider, reported substantial revenue growth, reaching USD 1.5 billion for the nine months ending March 31, 2023. This marks a 25% increase compared to the same period in the previous year, reflecting the company’s robust business performance amidst the evolving agricultural landscape.

The company also registered an impressive surge in gross profit, totaling USD 285 million, a significant 35% increase over the prior year. This profit represented a healthy margin of 18.6% and demonstrated the company’s strong operational efficiency. Lavoro’s financial growth was complemented by strategic moves, such as the successful acquisition of Cromo Química on May 31, 2023. This move bolstered Lavoro’s Crop Care Cluster by adding a wide range of products and specialized expertise in high-performance adjuvants.

In alignment with its growth strategy and commitment to providing comprehensive services to farmers, Lavoro initiated a strategic partnership in May 2023 with a subsidiary of Banco do Brasil. The partnership aims to offer tailored agricultural insurance solutions, further enhancing Lavoro’s service portfolio. However, due to a prolonged diligence process, the company does not foresee the completion of the NS Agro transaction within this fiscal year. This delay led to a revised projection for the fiscal year 2023 pro forma Adjusted EBITDA, now expected to be between $172 million and $178 million. Excluding the impact of the NS Agro transaction delay, Lavoro is on track to meet its previously issued guidance for the fiscal year 2023 pro forma Adjusted EBITDA.

To Report Its Q3 2023 On June 1st 2023

After the market close, Lavoro Limited announced that it would release its third quarter fiscal 2023 earnings results on Thursday, June 1, 2023.

Lavoro Limited Starts Floating On NASDAQ (2023/03/02)

Lavoro Limited, Brazil’s leading agricultural inputs retailer, has debuted on the Nasdaq Stock Market after merging with TPB Acquisition Corporation I. Lavoro’s portfolio includes a range of products such as seed, fertilizer, crop protection, emerging biologics, and other specialty items, catering to farmers across Brazil, Colombia, Peru, Chile, and Uruguay.

The company’s Crop Care business stands out as a significant supplier of biologics and specialty fertilizers in Brazil, which help farmers safeguard their crops from pests, disease, and weeds without relying on traditional synthetic crop chemistry. This approach enhances soil health and productivity while reducing the environmental footprint, a pressing concern today.

Ruy Cunha, Lavoro’s CEO, expressed his excitement for the company’s next development phase as it begins trading on Nasdaq. According to Cunha, the gross proceeds generated by the transaction will provide the company with a prime opportunity to drive shareholder value as it executes its growth strategy. This strategy focuses on enhancing the penetration of agricultural technologies across Latin America, further strengthening the company’s continuous efforts to expand its footprint through organic growth and market consolidation.

Cunha highlighted the company’s mission to tackle food insecurity and empower farmers by providing greater access to innovative agricultural solutions. By leveraging its expertise and resources, Lavoro aims to support sustainable agriculture and increase the productivity of the farm sector in the region. The CEO’s statement underscores the company’s commitment to creating a positive impact in Latin America while delivering value to its shareholders.

Over the past few years, the company has made over 20 acquisitions, resulting in USD 1.56 billion in pro forma revenue in the fiscal year ending June 30, 2022. The company also generated USD 28.77 million in pro forma net income in the same period. Lavoro’s revenue grew at a CAGR of 69% between the fiscal year 2020 to the fiscal year 2022, including 23% and 14% year-over-year organic growth in the fiscal year 2021 and fiscal year 2022, respectively.

Photo by Tiago Araújo on Unsplash 

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