Lavoro Reaches Out-of-Court Restructuring Agreement with Key Suppliers and Reports Certain Preliminary Unaudited Financial Information for Second Quarter of Fiscal 2025
Lavoro Limited (LVRO) announced an out-of-court restructuring agreement with key suppliers for its Brazil subsidiary, involving R$2.5 billion in trade payables. The agreement includes extended payment terms and secures multi-year product supply. 2Q25 preliminary results showed consolidated revenue declined 27% to R$2.25 billion, while gross profit decreased 28% to R$366.9 million. The company's Brazil Ag Retail segment was particularly impacted, with revenue falling 30% to R$1.84 billion due to inventory shortages. The restructuring plan categorizes suppliers into different creditor classes with varying repayment terms spanning 2-5 years. Major suppliers including BASF, FMC Agrícola, UPL Brasil, EuroChem, and Ourofino have committed to the plan. Due to these developments, Lavoro has withdrawn its FY2025 guidance.
