From GlobeNewswire: 2025-06-18 14:40:00

Lavoro Brazil has reached an agreement with suppliers for inventory financing and extended payment terms to aid in recovery. Preliminary unaudited 2Q25 revenue decreased 27% to R$2.25 billion, with gross profit down 28% to R$366.9 million. The FY2025 guidance has been withdrawn. The out-of-court restructuring agreement involves key suppliers such as BASF and FMC Agrícola. The EJ Plan submitted to Brazilian courts aims to restructure trade payables owed by Lavoro Brazil. The EJ Plan extends supplier obligations and ensures reliable product availability. The EJ Plan includes different repayment plans for various creditor classes. The EJ Plan establishes a multi-year inventory supply and financing framework to ensure product availability. The EJ Plan was filed with the São Paulo reorganization court and awaits confirmation. Due to the complexities associated with the EJ Plan, Lavoro has withdrawn its fiscal 2025 financial outlook. Brazil Ag Retail saw a 30% decline in revenue in 2Q25, while Latam Ag Retail experienced a 4% increase. Crop Care revenue decreased by 30% due to industry-wide regulatory uncertainty. In USD terms, revenue decreased by 38% to $384.4 million. Gross profit decreased by 28% to R$366.9 million, with Brazil Ag Retail’s gross margin contracting by 240 bps. Latam Ag Retail’s gross profit increased by 32%, and Crop Care’s gross profit fell by 53%. The EJ Plan will result in the novation of affected obligations, extinguish related judicial proceedings, and provide for the release of guarantees under Brazilian law. Lavoro management will host a conference call to discuss the restructuring agreement and financial information.



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