Unaudited interim condensed consolidated financial statements | ||
Interim condensed consolidated statement of financial position |
3 | |
Interim condensed consolidated statement of profit or loss |
6 | |
Interim condensed consolidated statement of comprehensive income or loss |
8 | |
Interim condensed consolidated statement of changes in equity |
9 | |
Interim condensed consolidated statement of cash flows |
11 | |
1 |
Background information |
14 |
2 |
Significant accounting policies |
15 |
3 |
Segment information |
20 |
4 |
Cash equivalents |
27 |
5 |
Trade receivables |
27 |
6 |
Financial instruments |
29 |
7 |
Financial and capital risk management |
31 |
8 |
Inventories |
39 |
9 |
Taxes recoverable |
40 |
10 |
Commodity forward contracts - Barter transactions |
41 |
11 |
Right-of-use assets and lease liabilities |
43 |
12 |
Property, plant and equipment |
44 |
13 |
Intangible assets |
45 |
14 |
Trade payables |
47 |
15 |
Borrowings |
48 |
16
| Agribusiness Receivables Certificates |
48
|
17 |
Payables for the acquisition of subsidiaries |
50 |
18 |
Acquisition of subsidiaries | 49 |
19 |
Accounting considerations related to the SPAC Transaction |
55 |
20 |
Income taxes |
56 |
21 |
Provisions for contingencies |
58 |
22 |
Advances from customers |
58 |
23 |
Related parties |
59 |
24 |
Equity |
60 |
25 |
Revenue from contracts with customers |
65 |
26 |
Costs and expenses by nature |
66 |
27 |
Finance income (costs) |
67 |
28 | Other operating (income) expenses, net |
68 |
29 |
Non-cash transactions |
68 |
30 |
Subsequent events |
68 |
Interim condensed consolidated statement of financial
As of March 31, 2024
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes |
March 31, 2024 |
June 30, 2023 | |
Assets | |||
Current assets | |||
Cash equivalents | 4 | 394,365 | 564,294 |
Restricted cash | 19 | 150,339 | - |
Trade receivables | 5 | 5,405,117 | 2,667,057 |
Inventories | 8 | 1,958,197 | 1,868,204 |
Taxes recoverable | 9 | 67,105 | 57,001 |
Derivative financial instruments | 7 | 56,650 | 40,410 |
Commodity forward contracts | 10 | 136,866 | 114,861 |
Advances to suppliers | 147,107 | 192,119 | |
Other assets | 92,712 | 32,701 | |
Total current assets | 8,408,458 | 5,536,646 | |
Non-current assets | |||
Restricted cash | 19 | - | 139,202 |
Trade receivables | 5 | 133,680 | 41,483 |
Other assets | 5,714 | 8,390 | |
Commodity forward contracts | 10 | 4,000 | |
Judicial deposits | 10,166 | 8,820 | |
Right-of-use assets | 11 | 205,663 | 173,679 |
Taxes recoverable | 9 | 361,772 | 282,903 |
Deferred tax assets | 20 | 410,991 | 329,082 |
Investments | 6,083 | - | |
Property, plant and equipment | 12 | 225,764 | 196,588 |
Intangible assets | 13 | 980,432 | 807,192 |
Total non-current assets | 2,344,265 | 1,987,339 | |
Total assets | 10,752,723 | 7,523,984 |
Interim condensed consolidated statement of financial
As of March 31, 2024
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes |
March 31, 2024 | June 30, 2023 | |
Liabilities | |||
Current liabilities | |||
Trade payables | 14 | 5,554,838 | 2,575,701 |
Trade payables - Supplier finance | 14(c) | - | 26,157 |
Lease liabilities | 11 | 96,394 | 85,865 |
Borrowings | 15 | 1,280,083 | 922,636 |
Agribusiness Receivables Certificates | 16 | 1,101 | - |
Obligations to FIAGRO quota holders | 175,168 | 150,018 | |
Payables for the acquisition of subsidiaries | 17 | 214,109 | 221,509 |
Derivative financial instruments | 7 | 65,039 | 44,008 |
Commodity forward contracts | 10 | 128,658 | 207,067 |
Salaries and social charges | 175,238 | 223,376 | |
Taxes payable | 43,507 | 37,105 | |
Dividends payable | 1,804 | 1,619 | |
Warrant liabilities | 19 | 25,956 | 36,446 |
Liability for FPA Shares | 19 | 150,339 | - |
Advances from customers | 22 | 399,761 | 488,578 |
Other liabilities | 48,550 | 34,388 | |
Total current liabilities | 8,360,545 | 5,054,473 | |
Non-current liabilities | |||
Trade payables | 14 | 7,219 | 2,547 |
Lease liabilities | 11 | 121,315 | 98,554 |
Borrowings | 15 | 43,693 | 42,839 |
Agribusiness Receivables Certificates | 16 | 402,648 | - |
Commodity forward contracts | 10 | 140 | - |
Payables for the acquisition of subsidiaries | 17 | 23,408 | 53,700 |
Provision for contingencies | 21 | 14,040 | 8,845 |
Liability for FPA Shares | 19 | - | 139,133 |
Other liabilities | 587 | 223 | |
Taxes payable | 795 | 963 | |
Deferred tax liabilities | 20 | 17,571 | 12,351 |
Total non-current liabilities | 631,416 | 359,155 | |
Equity | 24 | ||
Share Capital | 591 | 591 | |
Additional Paid-in Capital | 2,116,908 | 2,134,339 | |
Capital reserve | 27,987 | 14,533 | |
Other comprehensive loss | (3,174) | (28,634) | |
Accumulated losses | (635,145) | (260,710) |
Interim condensed consolidated statement of financial
As of March 31, 2024
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Equity attributable to shareholders of the Parent Company | 1,507,167 | 1,860,119 |
Non-controlling interests | 253,595 | 250,238 |
Total equity | 1,760,762 | 2,110,357 |
Total liabilities and equity | 10,752,723 | 7,523,984 |
Interim condensed consolidated statement of profit or loss
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Notes | Three-month period ended March 31, |
Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | ||
Revenue | 25 | 2,545,824 | 2,526,155 | 7,977,682 | 8,032,330 |
Cost of goods sold | 26 | (2,247,938) | (2,152,758) | (6,875,929) | (6,533,610) |
Gross profit | 297,886 | 373,397 | 1,101,753 | 1,498,720 | |
Operating expenses | |||||
Sales, general and administrative expenses | 26 | (349,226) | (303,900) | (1,049,584) | (912,221) |
Other operating (expenses) income, net | 28 | 1,993 | (332,235) | 23,905 | (300,525) |
Share of profit of an associate | 2,509 | 756 | |||
Operating profit (loss) | (46,838) | (262,738) | 76,830 | 285,974 | |
Finance Income (costs) | |||||
Finance income | 27 | 124,510 | 96,903 | 321,808 | 256,786 |
Finance costs | 27 | (317,255) | (251,850) | (831,322) | (717,335) |
Other financial income (costs) | 27 | (53,455) | 2,441 | (50,335) | (17,751) |
Loss before income taxes | (293,038) | (415,244) | (483,019) | (192,326) | |
Income taxes | |||||
Current | 20 | (8,307) | (3,618) | 23,642 | (17,921) |
Deferred | 20 | (19,596) | 32,864 | 76,620 | 88,138 |
Loss for the period | (320,941) | (385,998) | (382,757) | (122,109) | |
Attributable to: | |||||
Equity holders of the parent | (292,887) | (387,547) | (374,435) | (178,237) | |
Non-controlling interests | (28,054) | 1,549 | (8,322) | 56,128 | |
Loss per share |
Interim condensed consolidated statement of profit or loss
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Notes | Three-month period ended March 31, |
Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | ||
Basic, profit (loss) for the period attributable to net investment of the parent/ equity holders of the parent | 24 | (2.58) | (3.41) | (3.30) | (1.57) |
Diluted, profit (loss) for the period attributable to net investment of the parent/ equity holders of the parent | 24 | (2.58) | (3.41) | (3.30) | (1.57) |
Interim consolidated statement of comprehensive income or loss
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Three-month period ended March 31, | Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Profit (loss) for the period | (320,941) | (385,998) | (382,757) | (122,109) |
Items that may be reclassified to profit or loss in subsequent periods | ||||
Exchange differences on translation of foreign operations | 8,730 | 6,299 | 26,070 | (22,212) |
Total comprehensive income (loss) for the period | (312,211) | (379,699) | (356,687) | (144,321) |
Attributable to: | ||||
Net investment of the parent/ equity holders of the parent | (284,601) | (382,278) | (348,975) | (200,472) |
Non-controlling interests | (27,610) | 2,579 | (7,712) | 56,151 |
Interim condensed consolidated statement of changes in equity
For the nine-month period ended March 31, 2024 and 2023
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Notes | Net investment of the Parent | Share Capital | Additional Paid-in Capital | Capital reserve | Accumulated losses | Other comprehensive loss | Total | Non-controlling interest |
Total Equity/ Net Investment | |
At June 30, 2022 | 1,451,647 | - | - | - | - | - | 1,451,647 | 218,080 | 1,669,727 | |
Capital contributions | 60,880 | - | - | - | - | - | 60,880 | - | 60,880 | |
Acquisition of non-controlling interests | (51,324) | - | - | - | - | - | (51,324) | (36,176) | (87,500) | |
Non-controlling dilution on capital contributions | (7,475) | - | - | - | - | - | (7,475) | 7,475 | - | |
Dividends paid | - | - | - | - | - | - | - | (3,485) | (3,485) | |
Acquisition of subsidiaries | 8,809 | - | - | - | - | - | 8,809 | 9,707 | 18,516 | |
Share-based payment | 12,112 | - | - | - | - | - | 12,112 | - | 12,112 | |
Profit for the period | 209,310 | - | - | - | - | - | 209,310 | 54,579 | 263,889 | |
Exchange differences on translation of foreign operations | (27,481) | - | - | - | - | - | (27,481) | (1,007) | (28,488) | |
Pre reorganization | 1,656,478 | - | - | - | - | - | 1,656,478 | 249,173 | 1,905,651 | |
Changes in parent company's net investment | (1,656,478) | 514 | 1,485,135 | 12,112 | 209,310 | (50,593) | - | - | - | |
SPAC merger transaction | - | 77 | 670,256 | - | - | - | 670,333 | - | 670,333 | |
Foreign currency translation differences | - | - | - | - | - | 5,422 | 5,422 | 1,030 | 6,452 | |
Profit (loss) for the period | - | - | - | - | (387,547) | - | (387,547) | 1,549 | (385,998) | |
Stock option plan | - | - | - | 535 | - | - | 535 | - | 535 | |
At March 31, 2023 | - | 591 | 2,155,391 | 12,647 | (178,237) | (45,171) | 1,945,221 | 251,752 | 2,196,973 | |
At June 30, 2023 | - | 591 | 2,134,339 | 14,533 | (260,710) | (28,634) | 1,860,119 | 250,238 | 2,110,357 | |
Exchange differences on translation of foreign operations | - | - | - | - | - | 25,460 | 25,460 | 610 | 26,070 | |
Share-based payment | 24 | - | - | - | 13,454 | - | - | 13,454 | - | 13,454 |
Acquisition of subsidiaries | 18 | - | - | - | - | - | - | - | 2,007 | 2,007 |
Other | - | - | (17,431) | - | - | - | (17,431) | 9,062 | (8,369) |
Interim condensed consolidated statement of changes in equity
For the nine-month period ended March 31, 2024 and 2023
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Loss for the period | - | - | - | - | (374,435) | - | (374,435) | (8,322) | (382,757) | |
At March 31, 2024 | - | 591 | 2,116,908 | 27,987 | (635,145) | (3,174) | 1,507,167 | 253,595 | 1,760,762 |
Interim condensed consolidated statement of cash flows
For the nine-month period ended March 31, 2024
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Notes | March 31, 2024 | March 31, 2023 | |
Operating activities: | |||
Loss before income taxes | (483,017) | (192,327) | |
Adjustments to reconcile profit (loss) for the period to net cash flow: | |||
Allowance for expected credit losses | 26 | 118,732 | 39,442 |
Listing expense | - | 319,554 | |
Foreign exchange differences | 27 | (678) | 17,988 |
Accrued interest expenses | 27 | 235,211 | 246,221 |
Interest arising from revenue contracts | 27 | (275,607) | (229,681) |
Accrued interest on trade payables | 27 | 517,806 | 435,931 |
Loss (gain) on derivatives | 27 | (7,623) | (68,278) |
Interest from tax benefits | 27 | (17,736) | (11,437) |
Fair value on commodity forward contracts | 27 | 69,125 | 80,964 |
Gain on changes in fair value of warrants | 19 | (10,491) | (7,744) |
Amortization of intangibles | 26 | 53,018 | 52,921 |
Amortization of right-of-use assets | 26 | 64,669 | 38,160 |
Depreciation | 26 | 14,985 | 12,512 |
Losses and damages of inventories | 26 | 4,149 | 11,061 |
Provisions for contingencies | 5,044 | 6,890 | |
Share-based payment | 24 | 13,454 | 12,647 |
Share of profit of an associate | (756) | - | |
Others | (3,163) | 26,286 | |
Changes in operating assets and liabilities: | |||
Assets | |||
Trade receivables | (2,900,443) | (2,592,910) | |
Inventories | (1,043) | (200,666) | |
Advances to suppliers | 52,348 | 161,193 | |
Derivative financial instruments | 12,413 | (8,085) | |
Taxes recoverable | (68,772) | (115,664) | |
Other receivables | (236,461) | (77,216) | |
Liabilities | |||
Trade payables | 2,867,788 | 1,764,935 | |
Advances from customers | (93,591) | (38,834) | |
Salaries and social charges | (52,624) | 27,809 | |
Taxes payable | 18,208 | 41,250 |
Interim condensed consolidated statement of cash flows
For the nine-month period ended March 31, 2024
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Other payables | 53,168 | 14,204 | |
Interest paid on borrowings and FIAGRO quota holders | (195,546) | (76,159) | |
Interest paid on acquisitions of subsidiary | (8,408) | (3,258) | |
Interest paid on trade payables and lease liabilities | (574,451) | (151,026) | |
Interest received from revenue contracts | 291,082 | 94,131 | |
Income taxes paid/received | 14,595 | (28,173) | |
Net cash flows used in operating activities | (524,615) | (397,359) | |
Investing activities: | |||
Acquisition of subsidiary, net of cash acquired | (198,637) | (121,410) | |
Additions to property, plant and equipment and intangible assets | (73,458) | (52,540) | |
Proceeds from the sale of property, plant and equipment | 3,537 | 1,289 | |
Net cash flows used in investing activities | (268,558) | (172,661) | |
Financing activities: | |||
Proceeds from borrowings | 15 | 1,900,726 | 1,142,491 |
Repayment of borrowings | 15 | (1,618,396) | (624,453) |
Proceeds from Agribusiness Receivables Certificates, net of transaction cost | 16 | 402,648 | - |
Payment of principal portion of lease liabilities | 11 | (63,633) | (36,262) |
Proceeds from FIAGRO quota holders, net of transaction costs | 16 | 137,496 | 147,119 |
Repayment of FIAGRO quota holders | 16 | (109,350) | - |
Trade payables - Supplier finance | 14(c) | (26,157) | 4,918 |
Acquisition of non-controlling interests | (52) | (87,500) | |
Dividend payments (i) | (8,667) | (3,485) | |
Proceeds from SPAC Merger | - | 463,909 | |
Capital contributions | - | 60,880 | |
Net cash flows provided by financing activities | 614,615 | 1,067,617 | |
Net increase in cash equivalents | (178,558) | 497,597 | |
Net foreign exchange difference | 8,629 | (12,924) | |
Cash equivalents at beginning of the period | 564,294 | 254,413 | |
Cash equivalents at end of the period | 394,365 | 739,085 |
Interim condensed consolidated statement of cash flows
For the nine-month period ended March 31, 2024
(In thousands of Brazilian reais - R$, except if otherwise indicated)
| |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Equity interest | ||||
Name | Core activities | Location | March 31, 2024 | June 30, 2023 |
Corporate: |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Lavoro Agro Limited | Holding | George Town - Cayman Island | 100 | % | 100 | % |
Lavoro America Inc. | Holding | California - USA | 100 | % | 100% | |
Lavoro Merger Sub II Limited | Holding | George Town - Cayman Island | 100 | % | 100 | % |
Lavoro Agro Cayman II | Holding | George Town - Cayman Island | 100 | % | 100 | % |
Lavoro Latam SL | Holding | Madrid - Spain | 100 | % | 100 | % |
Lavoro Uruguay S.A. (formerly Malinas SA) | Holding | Montevideu - Uruguay | 100 | % | 100 | % |
Lavoro Brazil: | ||||||
Lavoro Agro Holding S.A. | Holding | São Paulo - Brazil | 100 | % | 100 | % |
Lavoro Agrocomercial S.A. (ii) | Distributor of agricultural inputs | Rondonópolis - Brazil | 97.43 | % | 97.42 | % |
Agrocontato Comércio e Representações de Produtos Agropecuários S.A. (ii) | Distributor of agricultural inputs | Sinop - Brazil | 97.43 | % | 97.42 | % |
PCO Comércio, Importação, Exportação e Agropecuária Ltda. (ii) | Distributor of agricultural inputs | Campo Verde - Brazil | 97.43 | % | 97.42 | % |
Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) (ii) | Distributor of agricultural inputs | Chapadão do Sul - Brazil | 93.60 | % | 93.11 | % |
Produtiva Agronegócios Comércio e Representação Ltda. | Distributor of agricultural inputs | Paracatu - Brazil | 87.40 | % | 87.40 | % |
Facirolli Comércio e Representação S.A. (Agrozap) | Distributor of agricultural inputs | Uberaba - Brazil | 62.61%- | 62.61 | % | |
Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. (ii) | Distributor of agricultural inputs | Campo Verde - Brazil | 97.43 | % | 97.42 | % |
Central Agrícola Rural Distribuidora de Defensivos Ltda. (ii) | Distributor of agricultural inputs | Vilhena - Brazil | 97.43 | % | 97.42 | % |
Distribuidora Pitangueiras de Produtos Agropecuários S.A. (ii) | Distributor of agricultural inputs | Ponta Grossa - Brazil | 93.60 | % | 93.11 | % |
Produtec Comércio e Representações S.A. | Distributor of agricultural inputs | Cristalina - Brazil | 87.40 | % | 87.40 | % |
Qualiciclo Agrícola S.A. (ii) | Distributor of agricultural inputs | Limeira - Brazil | 72.17 | % | 66.75 | % |
Desempar Participações Ltda. (ii) | Distributor of agricultural inputs | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Denorpi Distribuidora de Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Deragro Distribuidora de Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Desempar Tecnologia Ltda. (ii) | Holding | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Futuragro Distribuidora de Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Plenafértil Distribuidora de Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Realce Distribuidora de Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Palmeira - Brazil | 93.60 | % | 93.11 | % |
Cultivar Agrícola Comércio, Importação e Exportação S.A. (ii) | Distributor of agricultural inputs | Chapadão do Sul - Brazil | 93.60 | % | 93.11 | % |
Nova Geração Comércio e Produtos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Pinhalzinho - Brazil | 72.17 | % | 66.75 | % |
Floema Soluções Nutricionais de Cultivos Ltda. | Distributor of agricultural inputs | Uberaba - Brazil | 62.61 | % | 62.61 | % |
Casa Trevo Participações S.A. (ii) | Holding | Nova Prata - Brazil | 79.56 | % | 79.14 | % |
Casa Trevo Comercial Agrícola Ltda. (ii) | Distributor of agricultural inputs | Nova Prata - Brazil | 79.56 | % | 79.14 | % |
CATR Comercial AgrícolaLtda. (ii) | Distributor of agricultural inputs | Nova Prata - Brazil | 79.56 | % | 79.14 | % |
Sollo Sul Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Pato Branco - Brazil | 93.60 | % | 93.11 | % |
Dissul Insumos Agrícolas Ltda. (ii) | Distributor of agricultural inputs | Pato Branco - Brazil | 93.60 | % | 93.11 | % |
Referência Agroinsumos Ltda. (i) (ii) | Distributor of agricultural inputs | Dom Pedrito - Brazil | 65.52 | % | - | % |
Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais | FIAGRO | São Paulo - Brazil | 5.00 | % | 5.00 | % |
CORAM - Comércio e Representações Agrícolas Ltda. (i) (ii) | Distributor of agricultural inputs | São Paulo - Brazil | 72.17 | % | - | % |
Lavoro Colômbia: | ||||||
Lavoro Colombia S.A.S. | Holding | Bogota - Colombia | 94.90 | % | 94.90 | % |
Crop Care Colombia | Distributor of agricultural inputs | Bogota - Colombia | 94.90 | % | 94.90 | % |
Agricultura y Servicios S.A.S. | Distributor of agricultural inputs | Ginebra - Colombia | 94.90 | % | 94.90 | % |
Grupo Cenagro S.A.S. | Distributor of agricultural inputs | Yumbo - Colombia | 94.90 | % | 94.90 | % |
Cenagral S.A.S. | Distributor of agricultural inputs | Yumbo - Colombia | 94.90 | % | 94.90 | % |
Grupo Gral S.A.S. | Distributor of agricultural inputs | Bogota - Colombia | 94.90 | % | 94.90 | % |
Agrointegral Andina S.A.S. | Distributor of agricultural inputs | Bogota - Colombia | 94.90 | % | 94.90 | % |
Servigral Praderas S.A.S. | Distributor of agricultural inputs | Bogota - Colombia | 94.90 | % | 94.90 | % |
Agroquímicos para la Agricultura Colombiana S.A.S. | Distributor of agricultural inputs | Bogota - Colombia | 94.90 | % | 94.90 | % |
Provecampo S.A.S. | Distributor of agricultural inputs | Envigado - Colombia | 94.90 | % | 94.90 | % |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Crop Care: | ||||||
Crop Care Holding S.A. | Holding | São Paulo - Brazil | 100.00 | % | 100.00 | % |
Perterra Insumos Agropecuários S.A. | Private label products | São Paulo - Brazil | 100.00 | % | 100.00 | % |
Araci Administradora de Bens S.A. | Private label products | São Paulo - Brazil | 100.00 | % | 100.00 | % |
Union Agro S.A. | Private label products | Pederneiras - Brazil | 73.00 | % | 73.00 | % |
Agrobiológica Sustentabilidade S.A. | Private label products | São Paulo - Brazil | 65.13 | % | 65.13 | % |
Agrobiológica Soluções Naturais Ltda. | Private label products | Leme - Brazil | 65.13 | % | 65.13 | % |
Cromo Indústria Química LTDA. | Private label products | Estrela - Brasil | 70.00 | % | 70.00 | % |
Perterra Trading S.A. | Private label products | Montevideu - Uruguay | 100.00 | % | 100.00 | % |
Equity interest | ||||
Name | Core activities | Location | March 31, 2024 | June 30, 2023 |
Gestão e Transformação Consultoria S.A. | Consulting | São Paulo - Brazil | 40% | 40% |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Originally presented | Effects of Change in classification | After change in classification | |
Acquisition of subsidiary, net of cash acquired | (87,500) | 87,500 | - |
Net cash flows used in investing activities | (226,220) | 87,500 | (138,720) |
Acquisition of non-controlling interests | - | (87,500) | (87,500) |
Net cash flows provided by financing activities | 1,042,878 | (87,500) | 955,378 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Description | Brazil | LATAM | Crop Care | Total reportable segments | Corporate (i) | Eliminations between segments (ii) | Consolidated |
Certain assets | |||||||
Cash equivalents | 318,823 | 20,566 | 43,698 | 383,087 | 11,278 | - | 394,365 |
Trade receivables | 4,800,040 | 375,173 | 654,034 | 5,829,247 | - | (290,451) | 5,538,796 |
Inventories | 1,670,440 | 219,865 | 133,076 | 2,023,381 | - | (65,184) | 1,958,197 |
Advances to suppliers | 140,018 | 1,442 | 5,647 | 147,107 | - | - | 147,107 |
Total assets | 9,113,076 | 759,540 | 1,068,183 | 10,940,799 | 1,684,107 | (1,872,183) | 10,752,723 |
Certain liabilities | |||||||
Trade payables | 5,360,494 | 294,680 | 207,999 | 5,863,173 | 455 | (301,571) | 5,562,057 |
Borrowings | 879,712 | 121,084 | 311,860 | 1,312,656 | - | 11,120 | 1,323,776 |
Advances from customers | 396,954 | 1,092 | 1,715 | 399,761 | - | - | 399,761 |
Total liabilities and equity | 9,113,076 | 759,540 | 1,068,183 | 10,940,799 | 1,684,107 | (1,872,183) | 10,752,723 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Description | Brazil | LATAM | Crop Care | Total reportable segments | Corporate (i) | Eliminations between segments (ii) | Consolidated |
Revenue | 2,227,787 | 250,120 | 109,472 | 2,587,379 | - | (41,556) | 2,545,823 |
Cost of goods sold | (2,012,378) | (214,048) | (64,320) | (2,290,746) | - | 42,807 | (2,247,939) |
Sales, general and administrative expenses (iii) | (262,608) | (35,804) | (43,579) | (341,991) | (7,235) | - | (349,226) |
Share of profit of an associate | 4,399 | - | (669) | 3,730 | (296,194) | 294,973 | 2,509 |
Other operating income, net | (55) | (1,396) | 4,135 | 2,684 | (691) | - | 1,993 |
Financial (costs) income | (231,752) | (7,281) | (18,522) | (257,555) | 11,357 | - | (246,198) |
Income taxes | (22,602) | 1,339 | (6,215) | (27,478) | - | (425) | (27,903) |
Profit (loss) for the period | (297,209) | (7,070) | (19,698) | (323,977) | (292,763) | 295,799 | (320,941) |
Depreciation and amortization | (42,976) | (2,763) | (2,666) | (48,405) | - | - | (48,405) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Description | Brazil | LATAM | Crop Care | Total reportable segments | Corporate (i) | Eliminations between segments (ii) | Consolidated |
Revenue | 6,865,611 | 850,623 | 645,276 | 8,361,510 | - | (383,829) | 7,977,681 |
Cost of goods sold | (6,110,697) | (720,629) | (396,858) | (7,228,184) | - | 352,254 | (6,875,930) |
Sales, general and administrative expenses(iii) | (782,047) | (95,861) | (157,386) | (1,035,294) | (14,290) | - | (1,049,584) |
Share of profit of an associate | 109 | - | 1,242 | 1,351 | (345,376) | 344,781 | 756 |
Other operating income (expenses), net | 39,731 | (2,453) | 7,739 | 45,017 | (21,112) | - | 23,905 |
Financial (costs) income | (517,346) | (17,101) | (41,686) | (576,133) | 16,286 | - | (559,847) |
Income taxes | 107,837 | (7,590) | (10,721) | 89,526 | - | 10,736 | 100,262 |
Profit (loss) for the period | (396,802) | 6,989 | 47,606 | (342,207) | (364,492) | 323,942 | (382,757) |
Depreciation and amortization | (109,133) | (8,327) | (15,941) | (133,401) | - | - | (133,401) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Description | Brazil | LATAM | Crop Care | Total reportable segments | Corporate (i) | Eliminations between segments (ii) | Consolidated |
Certain assets | |||||||
Cash equivalents | 207,744 | 22,003 | 95,585 | 325,332 | 238,962 | - | 564,294 |
Trade receivables | 2,194,853 | 343,745 | 242,391 | 2,780,989 | - | (72,449) | 2,708,540 |
Inventories | 1,547,384 | 202,239 | 151,289 | 1,900,912 | - | (32,708) | 1,868,204 |
Advances to suppliers | 176,831 | 2,266 | 13,088 | 192,185 | - | (66) | 192,119 |
Total assets | 5,926,380 | 683,894 | 680,294 | 7,290,568 | 449,779 | (216,363) | 7,523,984 |
Certain liabilities | |||||||
Trade payables | 2,304,043 | 309,828 | 46,506 | 2,660,377 | 455 | (56,427) | 2,604,405 |
Borrowings | 824,868 | 71,562 | 69,045 | 965,475 | - | - | 965,475 |
Advances from customers | 478,313 | 7,020 | 3,245 | 488,578 | - | - | 488,578 |
Total liabilities and equity | 5,926,380 | 683,894 | 680,294 | 7,290,568 | 449,779 | (216,361) | 7,523,984 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Description | Brazil | LATAM | Crop Care | Total reportable segments | Corporate (i) | Eliminations between segments (ii) | Combined |
Revenue | 2,215,040 | 250,573 | 88,567 | 2,554,180 | - | (28,025) | 2,526,155 |
Cost of goods sold | (1,946,973) | (211,055) | (47,153) | (2,205,181) | - | 52,423 | (2,152,758) |
Sales, general and administrative expenses (iii) | (228,321) | (30,384) | (44,795) | (303,500) | (400) | - | (303,900) |
Other operating income, net | (14,500) | 469 | 2,872 | (11,159) | (321,076) | - | (332,235) |
Financial (costs) income | (135,825) | (3,958) | (10,082) | (149,865) | (2,641) | - | (152,506) |
Income taxes | 40,360 | (2,360) | (463) | 37,537 | - | (8,291) | 29,246 |
Profit for the period | (70,219) | 3,285 | (11,054) | (77,988) | (324,117) | 16,107 | (385,998) |
Depreciation and amortization | (38,798) | (2,074) | (2,900) | (43,772) | - | (43,772) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Description | Brazil | LATAM | Crop Care | Total reportable segments | Corporate (i) | Eliminations between segments (ii) | Consolidated |
Revenue | 6,852,875 | 900,190 | 580,076 | 8,333,141 | - | (300,811) | 8,032,330 |
Cost of goods sold | (5,697,199) | (750,189) | (339,191) | (6,786,579) | - | 252,969 | (6,533,610) |
Sales, general and administrative expenses(iii) | (714,839) | (84,940) | (112,042) | (911,821) | (400) | - | (912,221) |
Other operating income (expenses), net | 20,619 | (2,597) | 2,529 | 20,551 | (321,076) | - | (300,525) |
Financial (costs) income | (443,528) | (11,318) | (20,813) | (475,659) | (2,641) | - | (478,300) |
Income taxes | 104,176 | (18,778) | (31,447) | 53,951 | - | 16,266 | 70,217 |
Profit (loss) for the period | 122,104 | 32,368 | 79,112 | 233,584 | (324,117) | (31,576) | (122,109) |
Depreciation and amortization | (108,813) | (8,316) | (9,064) | (126,193) | - | (126,193) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Annual yield | March, 31 2024 | June, 30 2023 | |
Cash equivalents (R$) | 88% to 110% CDI (i) | 362,521 | 304,292 |
Cash equivalents (COP) | 12.49% DTF(ii) | 20,566 | 22,003 |
Cash equivalents (US$) | 3.82% a year(iii) | 11,278 | 237,999 |
Total cash equivalents | 394,365 | 564,294 |
March, 31 2024 | June, 30 2023 | |
Trade receivables (Brazil) | 5,428,200 | 2,525,845 |
Trade receivables (Colombia) | 409,929 | 370,767 |
(-) Allowance for expected credit losses | (299,332) | (188,072) |
Total | 5,538,797 | 2,708,540 |
Current | 5,405,117 | 2,667,057 |
Non-current | 133,680 | 41,483 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March, 31 2024 | March, 31 2023 | |
Opening balance as of June | (188,072) | (151,114) |
Increase in allowance | (118,732) | (39,866) |
Allowance for credit losses from acquisitions | (15,314) | (761) |
Trade receivables write-off | 25,354 | 11,839 |
Exchange rate translation adjustment | (2,568) | 3,043 |
Ending balance (i) | (299,332) | (176,859) |
March, 31 2024 | June, 30 2023 | |
Not past due | 5,042,969 | 2,089,543 |
Overdue | ||
1 to 60 days | 215,392 | 169,556 |
61 to 180 days | 80,284 | 359,958 |
181 to 365 days | 267,817 | 90,734 |
Over 365 days | 231,667 | 186,821 |
Allowance for expected credit losses | (299,332) | (188,072) |
5,538,797 | 2,708,540 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March, 31 2024 | ||
Amortized cost | Fair value through profit or loss | |
Assets: | ||
Trade receivables | 5,538,797 | |
Commodity forward contracts | 140,866 | |
Derivative financial instruments | 56,650 | |
Restricted cash | 150,339 | |
Total | 5,689,136 | 197,516 |
Liabilities: | ||
Trade payables | 5,562,057 | |
Lease liabilities | 217,709 | |
Borrowings | 1,323,776 | |
Agribusiness Receivables Certificates | 403,749 | |
Obligations to FIAGRO quota holders | 175,168 | |
Payables for the acquisition of subsidiaries | 237,517 | |
Derivative financial instruments | 65,039 | |
Salaries and social charges | 175,238 | |
Commodity forward contracts | 128,798 | |
Dividends payable | 1,804 | |
Warrant liabilities | 25,956 | |
Liability for FPA Shares | 150,339 | |
Total | 8,247,357 | 219,793 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
June, 30 2023 | ||
Amortized cost | Fair value through profit or loss | |
Assets: | ||
Trade receivables | 2,708,540 | - |
Commodity forward contracts | - | 114,861 |
Derivative financial instruments | - | 40,410 |
Restricted cash | 139,202 | - |
Total | 2,847,742 | 155,271 |
Liabilities: | ||
Trade payables | 2,578,248 | - |
Lease liabilities | 184,419 | - |
Borrowings | 965,475 | - |
Obligations to FIAGRO quota holders | 150,018 | - |
Payables for the acquisition of subsidiaries | 275,209 | - |
Derivative financial instruments | - | 44,008 |
Salaries and social charges | 223,376 | - |
Commodity forward contracts | - | 207,067 |
Dividends payable | 1,619 | - |
Warrant liabilities | - | 36,446 |
Liability for FPA Shares | 139,133 | - |
Total | 4,517,497 | 287,521 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
% Of guarantees required on sales | ||||
Credit rating | % Customers | Risk classification | Medium-sized farmers (i) | Other |
AA & A | 23% | Very small |
80-90%
| 0% |
B | 49% | Medium | 100% | 30% |
C & D | 16% | High | 100% | 60% |
Simplified | 12% | Small farmers | N/A | N/A |
March 31, 2024 | June 30, 2023 | |
Trade receivables (current and non-current) | 5,538,797 | 2,708,539 |
Advances to suppliers | 147,107 | 192,119 |
5,685,904 | 2,900,658 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March, 31 2024 | |||
Up to 1 year | From 1 to 5 years | Total | |
Trade payables | 5,750,749 | 7,219 | 5,757,968 |
Lease liabilities | 102,298 | 128,746 | 231,044 |
Borrowings | 1,358,489 | 46,369 | 1,404,858 |
Obligations to FIAGRO quota holders | 185,897 | - | 185,897 |
Agribusiness Receivables Certificates | 1,169 | 427,310 | 428,479 |
Payables for the acquisition of subsidiaries | 217,364 | 23,766 | 241,130 |
Commodity forward contracts | 130,626 | 142 | 130,768 |
Derivative financial instruments | 66,033 | - | 66,033 |
Salaries and social charges | 177,918 | - | 177,918 |
Dividends payable | 1,832 | - | 1,832 |
Warrant liabilities | 25,956 | - | 25,956 |
Liability for FPA Shares | 150,339 | - | 150,339 |
8,168,670 | 633,552 | 8,802,222 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
June, 30 2023 | |||
Up to 1 year | From 1 to 5 years | Total | |
Trade payables | 2,765,354 | 2,547 | 2,767,901 |
Lease liabilities | 91,419 | 111,304 | 202,723 |
Borrowings | 982,318 | 48,382 | 1,030,700 |
Obligations to FIAGRO quota holders | 159,722 | - | 159,722 |
Payables for the acquisition of subsidiaries | 224,689 | 55,242 | 279,931 |
Commodity forward contracts | 210,040 | - | 210,040 |
Derivative financial instruments | 44,639 | - | 44,639 |
Salaries and social charges | 226,583 | - | 226,583 |
Dividends payable | 1,642 | - | 1,642 |
Warrant liabilities | 36,446 | - | 36,446 |
Liability for FPA Shares | - | 139,133 | 139,133 |
4,742,852 | 356,608 | 5,099,460 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March, 31 2024 | ||||
Expense on profit or loss | ||||
Current Index | Scenario 1 | Scenario 2 | Scenario 3 | |
Floating rate borrowings in Brazil | CDI Rate (10,65%) | 150,182 | 178,852 | 207,521 |
Floating rate borrowings in Colombia | IBR Rate (12,24%) | 18,994 | 22,700 | 26,406 |
Floating rate Agribusiness Receivables Certificates | CDI Rate (10,65%) | 57,353 | 68,102 | 78,852 |
226,529 | 269,654 | 312,779 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | ||||
Effect on profit or loss | ||||
Current Index | Scenario 1 | Scenario 2 | Scenario 3 | |
Cash equivalents in U.S. Dollars | 5,1155 | 269 | 3,156 | 6,043 |
Trade receivables in U.S. Dollars | 5,1155 | 9,677 | 113,415 | 217,154 |
Trade payables in U.S. Dollars | 5,1155 | (13,514) | (158,384) | (303,254) |
Borrowings in U.S. Dollars | 5,1155 | (11,318) | (132,644) | (253,970) |
Net impacts on commercial operations | (14,886) | (174,457) | (334,027) | |
Derivative financial instruments | 5,1155 | 9,861 | 115,570 | 221,279 |
Total impact, net of derivatives | (5,025) | (58,887) | (112,748) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Tons | Position | Current Risk | Average of contract prices | Current Market (R$/bag) | +25% current | +50% current | |||
Position | Market | Impact | Market | Impact | |||||
Soybean 2024 | 282,462 | Purchased | (43,164) | 126 | (9) | (11) | (10,791) | (14) | (21,582) |
Soybean 2024 | (369,600) | Sold | (3,815) | 110 | 1 | 1 | (954) | 1 | (1,907) |
Corn 2024 | 169,468 | Purchased | 3,366 | 46 | 1 | 1 | 841 | 2 | 1,683 |
Corn 2024 | (96,668) | Sold | (12,346) | 39 | 8 | 10 | (3,087) | 11 | (6,173) |
Soybean 2025 | 251,536 | Purchased | 88,518 | 103 | 21 | 26 | 22,130 | 32 | 44,259 |
Soybean 2025 | (52,609) | Sold | (20,549) | 101 | 23 | 29 | (5,137) | 35 | (10,274) |
Net exposure on grain contracts | 184,589 | Net purchased | 12,010 | 3,002 | 6,006 | ||||
Soybean 2024 | (7,905) | Sold on derivatives | (175) | 130 | 131 | 164 | (44) | 197 | (87) |
Corn 2024 | (5,574) | Sold on derivatives | 9,394 | 63 | 61 | 77 | 2,349 | 92 | 4,697 |
Soybean 2025 | (251,356) | Sold on derivatives | (5,554) | 135 | 136 | 171 | (1,389) | 205 | (2,777) |
Net exposure on derivatives | (264,835) | 3,665 | 916 | 1,833 | |||||
Net exposure (i) | (80,246) | 15,675 | 3,918 | 7,839 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Options (put/call of commodities) | (132) | (513) |
Forwards (R$/US$) (i) | 3,611 | 8,837 |
Swap (R$/US$) | (11,867) | (11,922) |
Derivative financial instruments, net | (8,388) | (3,598) |
March 31, 2024 | June 30, 2023 | |
Goods for resale | 1,985,211 | 1,885,941 |
(-) Allowance for inventory losses | (27,014) | (17,737) |
Total | 1,958,197 | 1,868,204 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | March 31, 2023 | |
Opening balance as of June | (17,737) | (10,186) |
Increase in allowance | (4,149) | (5,168) |
Allowance for inventory losses from acquisitions | (4,321) | - |
Exchange rate translation adjustment | (807) | 662 |
Ending balance | (27,014) | (14,692) |
March 31, 2024 | June 30, 2023 | |
State VAT ("ICMS") (i) | 80,963 | 78,805 |
Brazilian federal contributions (ii) | 306,602 | 239,815 |
Colombian federal contributions | 41,312 | 21,284 |
Total | 428,877 | 339,904 |
Current | 67,105 | 57,001 |
Non-current | 361,772 | 282,903 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Fair value of commodity forward contracts: | ||
Assets | ||
Purchase contracts | 108,202 | 53,695 |
Sale contracts | 32,664 | 61,166 |
Current | 136,866 | 114,861 |
Non-current | 4,000 | - |
Liabilities | ||
Purchase contracts | (59,424) | (206,881) |
Sale contracts | (69,374) | (186) |
Current | (128,658) | (207,067) |
Non-current | (140) | - |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Outstanding Volume (tons) | Average of contract prices R$/Bag | Average Market Prices (Corn R$/bag (ii); Soybean US$/bu(i)) | Soybean market premium (US$/bu) | Freight (R$/ton) | |
Purchase Contracts | |||||
Soybean | |||||
As of June 30, 2023 | 449,847 | 127.95 | 13.16 | (0.30) | 293.65 |
As of March 31, 2024 | 533,998 | 114.91 | 11.94 | 0.45 | 461.05 |
Corn | |||||
As of June 30, 2023 | 303,432 | 65.25 | 56.04 | N/A | 282.23 |
As of March 31, 2024 | 169,468 | 46.38 | 61.43 | N/A | 229.73 |
Selling Contracts | |||||
Soybean | |||||
As of June 30, 2023 | 145,915 | 145.71 | 13.16 | 0.01 | - |
As of March 31, 2024 | 422,209 | 110.36 | 11.92 | 0.15 | 417.96 |
Corn | |||||
As of June 30, 2023 | 255,499 | 48.36 | 56.04 | N/A | 284.59 |
As of March 31, 2024 | 96,668 | 39.26 | 61.42 | N/A | 234.88 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Vehicles | Buildings | Machinery and equipment | Total | |
Cost | 120,052 | 141,915 | 73,236 | 335,203 |
Accumulated depreciation | (54,560) | (77,732) | (29,232) | (161,524) |
Balance at June 30, 2023 | 65,492 | 64,183 | 44,004 | 173,679 |
Cost | 151,189 | 183,551 | 89,174 | 423,914 |
Accumulated depreciation | (67,784) | (111,684) | (38,783) | (218,251) |
Balance at March 31, 2024 | 83,405 | 71,867 | 50,391 | 205,663 |
March, 31 2024 | June, 30 2023 | |
Vehicles | 87,674 | 68,420 |
Buildings | 97,521 | 85,839 |
Machinery and equipment | 32,514 | 30,160 |
Total | 217,709 | 184,419 |
Current | 96,394 | 85,865 |
Non-current | 121,315 | 98,554 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Vehicles | Lands, buildings and improvements | Machines, equipment and facilities | Furniture and fixtures | Computer equipment | Total | |
Cost | 40,851 | 142,561 | 75,134 | 15,610 | 10,015 | 284,171 |
Accumulated depreciation | (31,349) | (14,698) | (26,817) | (7,198) | (7,521) | (87,583) |
Balance at June 30, 2023 | 9,502 | 127,863 | 48,317 | 8,412 | 2,494 | 196,588 |
Cost | 42,613 | 167,659 | 89,652 | 17,810 | 11,404 | 329,138 |
Accumulated depreciation | (34,155) | (21,805) | (29,566) | (8,516) | (9,332) | (103,374) |
Balance at March 31, 2024 | 8,458 | 145,854 | 60,086 | 9,294 | 2,072 | 225,764 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Goodwill | Customer relationship | Purchase contracts and brands | Software and other | Total | |
Cost: | |||||
At June 30, 2022 | 451,974 | 301,477 | 21,846 | 56,373 | 831,670 |
Additions | - | - | - | 5,025 | 5,025 |
Business combinations (i) | 98,890 | 50,600 | 1,207 | - | 150,698 |
Other (ii) | (3,201) | - | - | - | (3,201) |
Translation adjustment | (998) | (666) | (48) | (10) | (1,722) |
At June 30, 2023 | 546,665 | 351,412 | 23,005 | 61,388 | 982,470 |
Additions | - | - | - | 24,039 | 24,039 |
Business combinations (i) | 115,658 | 59,212 | - | 35 | 174,905 |
Other (iii) | 34,388 | (10,987) | - | - | 23,401 |
Translation adjustment | 2,543 | 556 | 813 | - | 3,912 |
At March 31, 2024 | 699,254 | 400,193 | 23,818 | 85,462 | 1,208,727 |
Amortization: | |||||
At June 30, 2022 | - | 89,502 | 6,929 | 10,918 | 107,349 |
Amortization for the period | - | 50,263 | 8,983 | 8,682 | 67,928 |
At June 30, 2023 | - | 139,765 | 15,912 | 19,600 | 175,277 |
Amortization for the period | - | 38,089 | 2,642 | 12,287 | 53,018 |
At March 31, 2024 | - | 177,854 | 18,554 | 31,887 | 228,295 |
At June 30, 2023 | 546,665 | 211,646 | 7,093 | 41,788 | 807,192 |
At March 31, 2024 | 699,254 | 222,339 | 5,264 | 53,575 | 980,432 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Trade payables - Brazil | 5,224,243 | 2,268,420 |
Trade payables - Colombia | 337,814 | 309,828 |
Total | 5,562,057 | 2,578,248 |
Current | 5,554,838 | 2,575,701 |
Non-current | 7,219 | 2,547 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Borrowing in Colombia | 121,083 | 71,562 |
Borrowings in Brazil | 1,202,693 | 893,913 |
Total borrowings | 1,323,776 | 965,475 |
Average interest rate March 31,2024 (i) | March 31, 2024 | Average interest rate June 30, 2023 (i) | June 30, 2023 | |||
Debt contracts in Brazil in: | ||||||
R$, indexed to CDI (ii) | 14.51 | % | 687,823 | 16.62 | % | 725,563 |
R$, with fixed interest | 14.33 | % | 104,391 | 8.76 | % | 8,590 |
U.S. Dollars, with fixed interest | 7.26 | % | 410,479 | 4.03 | % | 159,760 |
Debt contracts in Colombia in: | ||||||
COP, indexed to IBR (iii) | 12.72 | % | 121,083 | 15.43 | % | 69,862 |
COP, with fixed interest | 15.72 | % | 1,700 | |||
Total | 1,323,776 | 965,475 | ||||
Current | 1,280,083 | 922,636 | ||||
Non-current | 43,693 | 42,839 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
At June 30, 2022 | 710,552 |
Proceeds from borrowings | 1,142,492 |
Repayment of principal amount | (624,453) |
Accrued interest | 227,016 |
Exchange rate translation | 25,756 |
Interest payment | (76,160) |
At March 31, 2023 | 1,405,203 |
At June 30, 2023 | 965,475 |
Proceeds from borrowings | 1,900,726 |
Repayment of principal amount | (1,618,396) |
Accrued interest | 175,599 |
Borrowings from acquired companies | 61,793 |
Foreign exchange differences | 2,915 |
Exchange rate translation | 1,630 |
Interest payment | (165,966) |
At March 31, 2024 | 1,323,776 |
March 31, 2024 | June 30, 2023 | |
2024 | 726 | |
2025 | 8,185 | 15,452 |
2026 | 3,495 | 1,376 |
2027 | 22,854 | 25,285 |
2028 | 9,159 | |
Total | 43,693 | 42,839 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Maturity | Average interest rate 2023 (i) | March 31, 2024 | ||
Serie I | December 22, 2027 | CDI + 3,00% | 69,189 | |
Serie II | December 22, 2027 | 14.20 | % | 351,912 |
Transaction cost | (17,352) | |||
Total | 403,749 | |||
Current | 1,101 | |||
Non-current | 402,648 |
At June 30, 2023 | - |
Proceeds from borrowings | 420,000 |
Transaction cost | (17,741) |
Transaction cost amortization | 389 |
Accrued interest | 15,608 |
Interest payment | (14,507) |
At March 31, 2024 | 403,749 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Fair value as of the acquisition date | ||
Referência Agroinsumos (c) | CORAM (d) | |
Assets | ||
Cash equivalents | 8,135 | 15,352 |
Trade receivables | 31,464 | 61,791 |
Inventories | 43,680 | 47,481 |
Other assets | 11,473 | 12,779 |
Property, plant and equipment | 1,556 | 1,804 |
Intangible assets | 30,494 | 15,003 |
126,802 | 154,210 | |
Liabilities | ||
Trade payables | 56,137 | 79,298 |
Borrowings | 32,429 | 29,364 |
Advances from customers | 40,757 | 1,263 |
Other liabilities | 4,168 | 10,259 |
133,491 | 120,184 | |
Total identifiable net assets at fair value | (6,689) | 34,026 |
Non-controlling interests | 2,007 | - |
Goodwill arising on acquisition | 106,794 | 15,847 |
Consideration transferred | 102,112 | 49,873 |
Cash paid | 67,112 | 20,000 |
Payable in installments | 35,000 | 29,873 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Item | March 31, 2024 | Nature | Valuation method |
Customer relationship | 45,462 | A loyal relationship between the acquirees and its customers, which translates into recurring purchases of products and services | Multi Period Excess Earnings Method (MPEEM) |
Total | 45,462 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | March 31, 2023 | |
Revenues | 383,112 | 8,356,011 |
Profit (loss) for the period | (10,084) | (103,300) |
Revenues | Profit (loss) | Period from | |
Referência Agroinsumos | 256,567 | 28,078 | July, 2023 |
CORAM | 56,443 | 1,560 | November, 2023 |
Total | 313,010 | 29,638 |
Revenues | Profit (loss) | Period from | |
Provecampo | 23,913 | 2,869 | August, 2022 |
Floema | 185,777 | 14,564 | August, 2022 |
Casa Trevo | 110,705 | (546) | September, 2022 |
Sollo Sul | 108,738 | (11,693) | December, 2022 |
Dissul | 6,307 | 60 | December, 2022 |
Total | 435,440 | 5,254 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | March 31, 2023 | |
Profit (loss) before income taxes | (483,019) | (192,265) |
Statutory rate (i) | 34% | 34% |
Income taxes at statutory rate | 164,226 | 66,324 |
Unrecognized deferred tax asset (ii) | (123,876) | (162,506) |
Difference from income taxes calculation based on taxable profit computed as a percentage of gross revenue | (45) | 11,023 |
Deferred income taxes over goodwill tax recoverable | (5,139) | (5,044) |
Tax benefit (iii) | 71,130 | 163,963 |
Other | (6,034) | (3,543) |
Income tax expense | 100,262 | 70,217 |
Income tax and social contribution effective rate | -20.76% | 35.84% |
Current income taxes | 23,642 | (17,921) |
Deferred income taxes | 76,620 | 88,138 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Deferred assets and liabilities: | ||
Amortization of fair value adjustment | 62,926 | 66,065 |
Tax losses | 222,847 | 123,072 |
Allowance for expected credit losses | 68,177 | 49,026 |
Adjustment to present value | 7,476 | 14,222 |
Provision for management bonuses | 12,654 | 22,182 |
Allowance for inventory losses | 5,693 | 3,841 |
Financial effect on derivatives | 2,182 | (1,468) |
Fair value of commodity forward contracts | (6,301) | 31,343 |
Unrealized exchange gains or losses | (1,808) | (7,618) |
Unrealized profit in Inventories | 22,163 | (11,121) |
Amortized right-of-use assets | 5,142 | 6,273 |
Deferred tax on goodwill | (11,366) | (2,067) |
Other provisions | 3,635 | 22,981 |
Deferred income tax assets, net | 410,991 | 329,082 |
Deferred income tax liabilities, net | (17,571) | (12,351) |
Deferred income tax assets, net | 393,420 | 316,731 |
Deferred income tax and social contribution | |
At June 30, 2022 | 193,495 |
Recognized in the statement of profit or loss | 128,362 |
Deferred tax from acquired companies | (5,126) |
At June 30, 2023 | 316,731 |
Recognized in the statement of profit or loss | 76,689 |
At March 31, 2024 | 393,420 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Up to 1 year | 170,573 | 185,123 |
Over 1 year | 222,847 | 131,608 |
Total | 393,420 | 316,731 |
March 31, 2024 | June 30, 2023 | |
Civil | 1,989 | - |
Tax | 2,629 | 9 |
Labor | 9,305 | 8,801 |
Environmental | 117 | 35 |
Total | 14,040 | 8,845 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | June 30, 2023 | |
Opening balance | 488,578 | 320,560 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (656,759) | (320,560) |
Increase in advances | 525,922 | 427,463 |
Advances from acquired companies | 42,020 | 61,115 |
Ending balance | 399,761 | 488,578 |
March 31, 2024 | June 30, 2023 | |
Assets | ||
Trade receivables (i) | 25,959 | 24,487 |
Total assets | 25,959 | 24,487 |
Liabilities | ||
Trade payables (i) | 4,993 | 1,675 |
Advances from customers (i) | 6,859 | - |
Payables for the acquisition of subsidiaries (ii) | 83,085 | 100,287 |
Total liabilities | 94,937 | 101,962 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
March 31, 2024 | March 31, 2023 | |
Revenue from sales of products (i) | 27,902 | 28,699 |
Monitoring expenses (ii) | (15,079) | (16,699) |
Interest on payables for the acquisition of subsidiaries | (3,833) | (2,938) |
Other expenses | (2,471) | (205) |
Total | 6,519 | 8,857 |
March 31, 2024 | March 31, 2023 | |
Wages | 13,524 | 10,433 |
Direct and indirect benefits | 978 | 435 |
Variable compensation (bonuses) | 16,737 | 23,677 |
Short-term benefits | 31,239 | 34,545 |
Share-based payment benefits | 13,454 | 6,927 |
Total | 44,693 | 41,472 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Other capital reserves | |
At June 30, 2022 | - |
Share-based payments expense during the year | 14,533 |
At June 30, 2023 | 14,533 |
Share-based payments expense during the period | 910 |
Share-based payments reversal during the period | (1,356) |
At March 31, 2024 | 14,087 |
Options granted | |
At June 30, 2022 | - |
Granted options | 49,518,732 |
Canceled | (3,800,000) |
At June 30, 2023 | 45,718,732 |
Canceled | (3,566,672) |
At March 31, 2024 | 42,152,060 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
RSUs granted | |
At June 30, 2023 | - |
Granted options | 1,597,076 |
Canceled | (57,274) |
At March 31, 2024 | 1,539,802 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Three-month period ended March 31, | Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Weighted average ordinary shares of Lavoro | 113,602 | 113,602 | 113,602 | 113,602 |
Effects of dilution from: | ||||
Share-based payment (i) | 2,109 | 1,606 | 2,150 | 1,606 |
Restricted stock unit plan (ii) | 1,540 | - | 1,376 | - |
Number of ordinary shares adjusted for the effect of dilution | 117,251 | 115,208 | 117,128 | 115,208 |
Loss for the period attributable to net investment of the parent/equity holders of the parent | (292,886) | (387,547) | (374,434) | (178,237) |
Basic loss per share | (2.58) | (3.41) | (3.30) | (1.57) |
Diluted loss per share | (2.58) | (3.41) | (3.30) | (1.57) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Three-month period ended March 31, | Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Inputs Retails sales | ||||
Brazil | 1,730,024 | 1,847,866 | 5,884,776 | 6,263,798 |
Colombia | 214,304 | 239,633 | 721,832 | 840,149 |
Private Label products | ||||
Crop Care | 135,860 | 147,245 | 582,212 | 474,848 |
Grains (i) | ||||
Brazil | 429,821 | 280,471 | 660,072 | 393,495 |
Colombia | 3,240 | 1,213 | 38,184 | 32,894 |
Services | ||||
Colombia | 32,575 | 9,727 | 90,606 | 27,146 |
Total Revenues | 2,545,824 | 2,526,155 | 7,977,682 | 8,032,330 |
Summarized by region | ||||
Brazil | 2,295,704 | 2,275,582 | 7,127,060 | 7,132,141 |
Colombia | 250,120 | 250,573 | 850,622 | 900,189 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Three-month period ended March 31, | Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Cost of inventory (i) | 2,215,725 | 2,114,075 | 6,762,623 | 6,459,093 |
Personnel expenses | 168,185 | 178,519 | 442,718 | 477,004 |
Maintenance of the units | 10,109 | 11,026 | 32,614 | 26,482 |
Consulting, legal and other services | 26,365 | 34,226 | 86,699 | 84,460 |
Freight on sales | 29,020 | 16,705 | 103,596 | 44,271 |
Commissions | 17,436 | 15,840 | 70,871 | 43,771 |
Storage | 4,202 | 2,387 | 14,981 | 5,404 |
Travel | 7,885 | 7,725 | 25,278 | 24,543 |
Depreciation | 5,276 | 4,272 | 14,985 | 12,512 |
Amortization of intangibles | 17,707 | 17,244 | 53,018 | 52,921 |
Amortization of right-of-use assets | 25,421 | 13,990 | 64,669 | 38,160 |
Taxes and fees | (3,202) | 7,372 | 18,486 | 21,998 |
Short term rentals | (1,258) | 9,878 | 7,468 | 24,187 |
Business events | (290) | 1,889 | 5,597 | 6,819 |
Marketing and advertising | 3,773 | 4,332 | 12,938 | 11,470 |
Insurance | (1,148) | 1,309 | 5,615 | 5,683 |
Utilities | 3,373 | 3,683 | 10,122 | 14,892 |
Allowance for expected credit losses | 42,520 | 22,028 | 118,732 | 39,866 |
Losses and damage of inventories | (854) | 4,958 | 4,149 | 11,061 |
Fuels and lubricants | 8,572 | 8,003 | 24,325 | 21,860 |
Other administrative expenditures | 18,347 | (22,803) | 46,029 | 19,374 |
Total | 2,597,164 | 2,456,658 | 7,925,513 | 7,445,831 |
Classified as: | ||||
Cost of goods sold | 2,247,938 | 2,152,758 | 6,875,929 | 6,533,610 |
Sales, general and administrative expenses | 349,226 | 303,900 | 1,049,584 | 912,221 |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Three-month period ended March 31, | Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Finance income | ||||
Interest from cash equivalents | 5,903 | 1,562 | 17,351 | 6,193 |
Interest arising from revenue contracts | 114,337 | 90,231 | 275,607 | 229,681 |
Interest from tax benefit (see note 20) | - | 1,047 | 17,735 | 11,437 |
Other | 4,270 | 4,063 | 11,115 | 9,475 |
Total | 124,510 | 96,903 | 321,808 | 256,786 |
Finance costs | ||||
Interest on borrowings | (49,208) | (77,040) | (175,599) | (204,845) |
Interest on Agribusiness Receivables Certificates | (15,608) | - | (15,608) | - |
Interest on acquisitions of subsidiary | (3,518) | (352) | (11,190) | (3,258) |
Interest on FIAGRO | (2,107) | 2,763 | (18,064) | (22,171) |
Interest on leases | (6,055) | (4,362) | (14,750) | (12,689) |
Interest on trade payables | (194,349) | (156,755) | (517,806) | (435,931) |
Other | (46,410) | (23,848) | (78,305) | (46,185) |
Total | (317,255) | (259,594) | (831,322) | (725,079) |
Other Finance Income (Cost) | ||||
Loss on fair value of commodity forward contracts | (49,345) | (7,712) | (69,126) | (12,686) |
Gain on changes in fair value of derivative instruments | 14,570 | 7,513 | 7,623 | - |
Foreign exchange differences on cash equivalents | 383 | (10,620) | 8,629 | (10,620) |
Foreign exchange differences on trade receivables and trade payables, net | (16,179) | 4,398 | (5,011) | (3,307) |
Foreign exchange differences on borrowings | (13,543) | 8,862 | (2,941) | 8,862 |
Gain on changes in fair value of warrants | 10,658 | 7,744 | 10,491 | 7,744 |
Total | (53,456) | 10,185 | (50,335) | (10,007) |
Finance costs, net | (246,201) | (152,506) | (559,849) | (478,300) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Three-month period ended March 31, | Nine-month period ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Listing expenses | - | (319,554) | - | (319,554) |
Sales of fixed assets | - | (303) | 3,163 | 1,289 |
Other operating income | 1,993 | (12,377) | 20,742 | 17,740 |
Total | 1,993 | (332,234) | 23,905 | (300,525) |
Notes to the interim condensed consolidated financial statements
(In thousands of Brazilian reais - R$, except if otherwise indicated)
|
Attachments
- Original Link
- Permalink
Disclaimer
Lavoro Ltd. published this content on 03 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2024 21:19:23 UTC.