Lavoro: Inventories will normalize in the first quarter of 2024 and annual revenue growth is expected to be 28%

Recently, the CEO of Lavoro Brazil said that the Brazilian agrochemical input distribution market is returning to normal, and the supplier's fertilizer and agrochemical prices have stabilized or rebounded. Lavoro's net revenue in 2023-24 increased by 24% to $1.8 billion. However, orders suggest margins will start to improve in the coming months, with revenue expected to grow 28 percent in 2024.

Lavoro, Brazil's largest retailer of agricultural inputs, explains that the free-fall in pesticide and fertilizer prices has stopped and retailers' high inventories are almost balanced. Glyphosate prices have fallen 65 percent in the past year, and phosphate fertilizer prices have fallen nearly 60 percent.

There has been an increase in barter contracts in the retail sector as producers finance costs and insulate them from falling prices in various ways, and there may still be excess inventory in the coming months, but the overall normalization has taken place. Lavoro said it will complete the adjustment process by the end of 2023, and in the first quarter of 2024, inventories will normalize.

In addition, Lavoro has high expectations for the biological sector, which subcontracts imports containing biologics, foliar fertilizers and chemicals. Due to the growth in sales of biologics, this segment has been increasing in the company.

Lavoro is the largest retailer of agricultural inputs and a leading producer of agricultural bioproducts in the entire Latin American region. The company helps farmers of all sizes in the region adopt the latest agricultural technologies and increase productivity. Since its founding in 2017, Lavoro has continued to expand its presence in Latin America, serving 72,000 customers in Brazil, Colombia and Uruguay through its team, with more than 1,000 technical sales representatives, a network of more than 210 retail locations, and digital services marketplaces and solutions. Lavoro is also the first Latin American pure agricultural input distributor to be listed in the United States.