Lavoro Brazil Secures Multi-Year Supplier Agreement to Support Recovery Amid Revenue Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 18 2025
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Source: NASDAQ.COM
Lavoro Brazil's Financial Restructuring: Lavoro Brazil has secured a multi-year financing agreement with key suppliers to address supply chain disruptions and declining revenues, which saw a 27% drop in revenue for Q2 2025. The company has also submitted a court-approved reorganization plan to standardize inventory supply and financing terms.
Impact of the EJ Plan: The EJ Plan restructures R$2.5 billion in trade payables and aims to improve financial flexibility while ensuring ongoing supplier commitments, with the expectation of stabilizing operations amid challenging market conditions in Brazil's agricultural sector.
Analyst Views on LVRO
About LVRO
Lavoro Limited is a Brazil-based agricultural input retailer and a provider of agriculture biologics inputs. The Company has three reportable segments: the Brazil Cluster, which comprises companies dedicated to the distribution of agricultural inputs such as crop protection, seeds, fertilizers and specialty products, in Brazil; the LATAM Cluster, which includes companies dedicated to the distribution ofagricultural inputs outside Brazil primarily in Colombia; as well as the Crop Care Cluster, which includes companies that produce and import Lavoro's own portfolio of private label products including off-patent crop protection and specialty products, e.g., biologicals and specialty fertilizers. The main crops served are: soy, corn, cotton, coffee, beans, rice, sugar cane, wheat, citrus and pastures. The Company has a broad geographical presence, operating in Brazil, Colombia, and Uruguay.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
