- On February 28, 2023, Lavoro and TPB Acquisition Corp. I
completed the previously announced business combination.
- Lavoro began trading on the Nasdaq under “LVRO” on March 1,
2023.
Lavoro Limited (Nasdaq: LVRO; LVROW), the first U.S.-listed
pure-play agricultural inputs distributor in Latin America, today
announced select financial results for the first half fiscal 2023,
ending December 31, 2022. The Company also announced that it will
release its first half fiscal 2023 earnings results on Monday,
April 10, 2023, after the market close.
Ruy Cunha, Chief Executive Officer of Lavoro commented, “We are
thrilled to complete our business combination and look forward to
our inaugural earnings conference call. Our performance through the
first half of our fiscal year reflects strong execution across each
of our business segments and our efforts to further consolidate the
Latin American agricultural marketplace with our network of stores
and value-added Crop Care solutions. We believe that our business
is on track to deliver the full-year projections¹ we shared
previously with the market, and we are excited about delivering a
strong second half of our fiscal year.”
First-Half Fiscal 2023 Results
- Reported combined revenue increased 45% to $1.0 billion as
compared to 1H22, driven primarily by the increase of agricultural
retail sales, reflecting Lavoro’s organic and inorganic expansion,
and the sales increase from the Company’s private label
products.
- Adjusted EBITDA increased 88% to $118.5 million compared to
1H22.
- Proforma revenue and proforma Adjusted EBITDA, which assumes
Lavoro owned its acquired companies for the complete current and
prior periods, increased 26% to $1.1 billion, and 64% to $125.2
million, respectively, for the fiscal first half of 2023, as
compared to 1H22.
Note: (1) Full-year projections for the fiscal year 2023. On
September 15, 2022, Lavoro reported to the market its financial
forecast, on Investor Presentation, page 47, “FY23E”, available on
Lavoro’s IR website, and this link.
Conference Call Details
The Company will host a conference call and webcast to review
its first-half fiscal 2023 results on Monday, April 10, 2023, at
5:00 pm ET.
The live telephonic conference call can be accessed following
registration via this link
https://register.vevent.com/register/BIce1b30a96d644e7bb5076254a566a715.
The webcast link is also available via this link:
https://edge.media-server.com/mmc/p/ri2ud8ns. An archived replay of
the webcast will also be available shortly after the live event has
concluded. The live audio webcast will be accessible in the Events
section on the Company's Investor Relations website at
https://ir.lavoroagro.com/disclosure-and-documents/events/.
About Lavoro
Lavoro is Brazil’s largest agricultural inputs retailer and a
leading provider of agriculture biologics inputs. Through a
comprehensive portfolio, we believe Lavoro empowers farmers to
adopt breakthrough technology and boost productivity. Founded in
2017, Lavoro has a broad geographical presence, with distribution
operations in Brazil and Colombia, and an emergent agricultural
input trading company in Uruguay. Lavoro has around 1,000 technical
sales representatives (RTVs), which meet with more than 72,000
customers on farms and at 215 retail locations multiple times per
year to help them plan, purchase the right inputs, and manage their
farming operations to optimize outcomes. Learn more about Lavoro at
ir.lavoroagro.com.
Non-IFRS Financial Measures
This press release contains certain non-IFRS financial measures,
including Adjusted EBITDA, Adjusted EBITDA Margin, Pro Forma
Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin. A non-IFRS
financial measure is generally defined as a numerical measure of
historical or future financial performance, financial position, or
cash flow that purports to measure financial performance but
excludes or includes amounts that would not be so adjusted in the
most comparable IFRS measure. The Company believes these non-IFRS
financial measures provide meaningful supplemental information as
they are used by the Company's management to evaluate the Company's
performance, and provide additional information about trends in our
operating performance prior to considering the impact of capital
structure, depreciation, amortization and taxation on our results,
as well as the effects of certain items or events that vary widely
among similar companies, and therefore may hamper comparability
across periods, although these measures are not explicitly defined
under IFRS. Management believes that these measures enhance a
reader's understanding of the operating and financial performance
of the Company and facilitate a better comparison between fiscal
periods. Adjusted EBITDA is defined as profit for the period,
adjusted for finance income (cost), net, income taxes current and
deferred, depreciation and amortization, M&A expenses that in
management’s judgment do not necessarily occur on a regular basis,
fair value of inventories sold from acquired companies, minus gain
on bargain purchases, to provide further meaningful information to
evaluate the Company’s performance. Adjusted EBITDA Margin is
calculated as Adjusted EBITDA as a percentage of revenue for the
period. Pro Forma Adjusted EBITDA is defined as pro forma profit
for the period, adjusted for pro forma finance income (costs), net,
pro forma income taxes current and deferred, pro forma depreciation
and amortization, fair value on inventories sold from acquired
companies, and M&A expenses that in management’s judgment do
not necessarily occur on a regular basis, minus gain on bargain
purchases. Pro Forma Adjusted EBITDA Margin is calculated as Pro
Forma Adjusted EBITDA as a percentage of pro forma revenue for the
period.
The Company does not intend for the non-IFRS financial measures
contained in this release to be a substitute for any IFRS financial
information. Readers of this press release should use these
non-IFRS financial measures only in conjunction with comparable
IFRS financial measures. Reconciliations of the non-IFRS financial
measures, Adjusted EBITDA, and Pro Forma Adjusted EBITDA, to their
most comparable IFRS measures, are provided in the table below.
Reconciliation of Adjusted EBITDA and Pro forma Adjusted
EBITDA2,3
(in US$ million)
1H23
1H22
Chg. %
Profit for the period
50.0
29.8
67.8%
(+) Finance income (costs), net
59.9
9.0
566.7%
(+) Income taxes current and deferred
(7.8)
12.7
-160.9%
(+) Depreciation and amortization
12.9
10.8
19.3%
(+) M&A expenses4
0.9
1.1
-12.1%
(+) Fair value of inventories sold from
acquired companies
2.6
2.8
-9.8%
(-) Gain on bargain purchases5
(3.2)
-100.0%
Adjusted EBITDA
118.5
63.0
88.0%
(/) Revenue
1,042.9
720.8
44.7%
Adjusted EBITDA margin %
11.36%
8.74%
2.6 p.p.
(in US$ million)
1H23
1H22
Chg. %
Pro forma profit for the period
55.3
37.9
46.0%
(+) Pro forma finance income (costs),
net
60.2
12.7
374.5%
(+) Pro forma income taxes current and
deferred
(6.9)
14.3
-148.6%
(+) Pro forma depreciation and
amortization
13.1
10.8
21.6%
(+) M&A expenses4
1.0
1.2
-13.0%
(+) Fair value of inventories sold from
acquired companies
2.6
2.8
-9.8%
(-) Gain on bargain purchases5
(3.3)
-100.0%
Pro forma Adjusted EBITDA
125.2
76.3
64.1%
(/) Pro forma revenue
1,104.2
879.4
25.6%
Pro forma Adjusted EBITDA margin %
11.3%
8.7%
2.7 p.p.
Note: (2) For illustrative purposes only, Lavoro has translated
its amounts in reais to U.S. dollars. The exchange rate on December
31, 2022, was R$ 5.27975 to US$1.00, and on December 31, 2021, was
R$ 5.57000 to US$1.00, as reported by Refinitiv. Note: (3) Pro
Forma financial information is calculated assuming the acquisitions
occurred at the beginning of the period presented and the prior
year (rather than just the partial “stub period” contribution). Pro
forma financial information is disclosed only for comparison
purposes. Note: (4) M&A expenses primarily include M&A team
compensation expenses and accounting and tax due diligence
expenses. Note: (5) Difference between the fair value of the Union
Agro`s net assets and the price paid by the Company, recorded as a
gain.
Lavoro’s Fiscal Year
Lavoro follows the crop year, which means that its fiscal year
comprises July 1st of each year, until June 30th of the following
year. Given this, Lavoro’s quarters have the following format:
1Q – quarter starting on July 1st and ending on September 30th.
2Q – quarter starting on October 1st and ending on December 31st.
3Q – quarter starting on January 1st and ending on March 31st. 4Q –
quarter starting on April 1st and ending on June 30th.
Forward-Looking Statements
The contents of any website mentioned or hyperlinked in this
press release are for informational purposes and the contents
thereof are not part of or incorporated into this press
release.
Certain statements made in this press release are
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as “aims,” “estimate,” “plan,”
“project,” “forecast,” “intend,” “will,” “expect,” “anticipate,”
“believe,” “seek,” “target” or other similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding the
expectations regarding the growth of Lavoro’s business and its
ability to realize expected results, grow revenue from existing
customers, and consummate acquisitions; opportunities, trends, and
developments in the agricultural input industry, including with
respect to future financial performance in the industry. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as and must not be relied on by
any investor as, a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Lavoro.
These forward-looking statements are subject to a number of
risks and uncertainties, including but not limited to, the outcome
of any legal proceedings that may be instituted against Lavoro
related to the business combination agreement or the transaction;
the ability to maintain the listing of Lavoro’s securities on
Nasdaq; the price of Lavoro’s securities may be volatile due to a
variety of factors, including changes in the competitive and
regulated industries in which Lavoro operates, variations in
operating performance across competitors, changes in laws and
regulations affecting Lavoro’s business; Lavoro’s inability to meet
or exceed its financial projections and changes in the combined
capital structure; changes in general economic conditions,
including as a result of the COVID-19 pandemic; the ability to
implement business plans, forecasts, and other expectations,
changes in domestic and foreign business, market, financial,
political and legal conditions; the outcome of any potential
litigation, government and regulatory proceedings, investigations
and inquiries; costs related to the business combination and being
a public company and other risks and uncertainties indicated from
time to time in the proxy statement/prospectus filed by Lavoro
relating to the business combination or in the future, including
those under “Risk Factors” therein, and in TPB Acquisition Corp.’s
or Lavoro’s other filings with the SEC. If any of these risks
materialize or our assumptions prove incorrect, actual results
could differ materially from the results implied by these
forward-looking statements. There may be additional risks that
Lavoro currently believes are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements.
In addition, forward-looking statements reflect Lavoro’s
expectations, plans, or forecasts of future events and views as of
the date of this press release. Lavoro anticipates that subsequent
events and developments will cause Lavoro’s assessments to change.
However, while Lavoro may elect to update these forward-looking
statements at some point in the future, Lavoro specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing Lavoro’s assessments as
of any date subsequent to the date of this press release.
Accordingly, undue reliance should not be placed upon the
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230405005365/en/
Fernanda Rosa fernanda.rosa@lavoroagro.com
Lavoro (NASDAQ:LVRO)
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