Sugarcane
Sugarcane Harvest Year Result
|
2019 Harvest Estimated
(Apr/01 to Nov/30)
|
2019 Harvest
Realized
(Apr/01 to Sep/30)
|
Change
(%)
|
Tons harvested
|
2,164,999
|
1,698,132
|
-21.6%
|
Hectares harvested
|
26,510
|
19,924
|
-24.8%
|
TCH - Harvest tons per hectares
|
81.67
|
85.23
|
4.4%
|
In April, we began harvesting the new sugarcane crop. So far, 1.7 million tons of sugarcane have been harvested, registering a TCH (harvest tons per hectares) of 85.2. During the 2019 harvest, wildfires affected some areas of ratoons of sugarcane (700 hectares at the Alto Taquari Farm and 1,800 hectares at the São José Farm). We took corrective measures to intensify the nitrogen fertilization of the affected areas to mitigate the effect of fire in the ratoons and estimate minor yield impacts.
9
Cattle Raising
Cattle Raising
|
18/19
Harvest
(A)
|
19/20 Harvest
Estimated
(B)
|
19/20 Harvest
Realized
(Up to Sep/30)
(C)
|
Change
C/A (%)
|
Change
C/B
(%)
|
Hectares
|
13,351
|
13,721
|
13,351
|
0.0%
|
-2.7%
|
Number of heads
|
20,865
|
21,456
|
19,038
|
-8.8%
|
-11.3%
|
Meat production (kg)
|
2,803,685
|
3,048,511
|
491,831
|
-82.5%
|
-83.9%
|
Weight Gain per Day
|
0.53
|
0.47
|
0.42
|
-20.4%
|
-9.2%
|
Weight Gain per hectare
|
210.00
|
222.18
|
36.84
|
-82.5%
|
-83.4%
|
Cattle raising is a transitory activity for the Company, aimed at the transformation of the area. We have 19,000 head of cattle in the Preferência and the Jatobá Farms and in Paraguay, distributed in 13,351 hectares of already active pasture in Brazil and Paraguay.
In addition to the 13,351 hectares estimated for active pasture in 1Q20, the Company has 3,085 hectares of pasture at the Chaparral Farm, which are part of the area opening strategy, because the grasses increase the organic material level in the soil and reduce impacts that could cause lower productivity in new areas.
We estimate a lower weight gain per day for the 2019/2020 harvest due to changes in management strategies in each farm to improve the margin of this activity.
Other
In order to improve the Company’s results, mitigate operating risks and as a real estate strategy, in 1Q20, we leased 13,778 hectares to third parties in the state of Bahia and in Paraguay. The areas were leased to local farmers and the contracts have a duration of up to 5 years with a value of up to 18% of production, and the minimum value is 5 soybean bags per hectare.
In addition, we have 1,358 hectares of other crops, such as grasses cover crops and sorghum, in order to increase the organic matter and accelerate the maturation of the soil.
10
|
FINANCIAL PERFORMANCE
|
The consolidated financial statements were prepared and are being presented in accordance with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board.
EBITDA and Adjusted EBITDA
EBITDA is presented based on Net Income adjusted for interest, taxes, depreciation and amortization, pursuant to accounting standards.
Adjusted EBITDA was calculated by excluding biological assets in progress (sugarcane and grains planted) and adjusted for the harvest’s derivative results and depreciation expenses, including depreciation of fixed assets of the Farms, developed areas and permanent crops.
EBITDA (R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Net Income
|
40,576
|
136,637
|
-70.3%
|
Interest
|
(1,235)
|
(18,689)
|
-93.4%
|
Taxes
|
8,649
|
13,317
|
-35.1%
|
Depreciations and amortizations
|
11,972
|
11,624
|
3.0%
|
EBITDA
|
59,962
|
142,889
|
-58.0%
|
|
|
|
|
Adjusted EBITDA (R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Net Income
|
40,576
|
136,637
|
-70.3%
|
Interest
|
(1,235)
|
(18,689)
|
-93.4%
|
Taxes
|
8,649
|
13,317
|
-35.1%
|
Depreciations and Amortizations
|
11,972
|
11,624
|
3.0%
|
Equity pick-up
|
40
|
47
|
-14.9%
|
Other operating income/expenses, net
|
(1)
|
(38)
|
-97.4%
|
Elimination of the effects of gains on biological assets (grains and sugarcane planted)
|
(5,411)
|
(10,302)
|
-47.5%
|
Derivatives Results
|
2,849
|
(2,133)
|
n.a.
|
Adjusted EBITDA
|
57,439
|
130,463
|
-56.0%
|
11
EBITDA and Adjusted EBITDA of Operations
EBITDA (R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Net Income excluding farm sale
|
24,004
|
35,843
|
-33.0%
|
Interest
|
(1,235)
|
(18,689)
|
n.a.
|
Taxes
|
7,787
|
8,788
|
-11.4%
|
Depreciations and amortizations
|
11,972
|
11,624
|
3.0%
|
EBITDA
|
42,528
|
37,566
|
13.2%
|
|
|
|
|
Adjusted EBITDA (R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Net Income excluding farm sale
|
24,004
|
35,843
|
-33.0%
|
Interest
|
(1,235)
|
(18,689)
|
n.a.
|
Taxes
|
7,787
|
8,788
|
-11.4%
|
Adjusted Depreciation
|
11,972
|
11,624
|
3.0%
|
Equity pick-up
|
40
|
47
|
-14.9%
|
Other operating income/expenses
|
(1)
|
(38)
|
-97.4%
|
Elimination of the effects of gains on biological assets (grains and sugarcane planted)
|
(5,411)
|
(10,302)
|
-47.5%
|
Derivatives Results
|
2,849
|
(2,133)
|
n.a.
|
Adjusted EBITDA
|
40,005
|
25,140
|
59.1%
|
Income Statement
NET REVENUE FROM SALES
Net Revenue (R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Total
|
184,980
|
241,671
|
-23.5%
|
Farms Sale
|
18,974
|
123,335
|
-84.6%
|
Soybean
|
51,966
|
39,780
|
30.6%
|
Corn
|
8,859
|
1,883
|
370.5%
|
Cotton
|
5,226
|
-
|
n.a.
|
Sugarcane
|
91,936
|
74,114
|
24.0%
|
Cattle Raising
|
5,980
|
1,955
|
205.9%
|
Leasing
|
2,039
|
582
|
250.3%
|
Others
|
-
|
22
|
n.a.
|
In 1Q20, net revenue from sales reached R$185.0 million, 23.5% lower than the same period of the previous year, due to the accounting of a large sale (9,784
hectares) of the Jatobá Farm in 1Q19, partially offset by the increased revenue from the operation in the comparison between the periods.
12
SALE OF FARMS
In 1Q20, the Company recorded the sale of a plot on the Jatobá Farm, an agricultural property located in the municipality of Jaborandi, Bahia. A total of 1,134 hectares (893 arable hectares) were sold, corresponding to the nominal value of R$23.2 million (~R$25,961/arable hectare). In the same period of the previous year, a total of R$173.8 million (nominal value) was recorded, referring to the sale of 9,784 hectares (7,485 arable hectares) of the Jatobá Farm (BA).
The table below shows the revenue from the sale of property:
Farm Sales
(R$ thousand)
|
1Q20
|
1Q19
|
Change
(%)
|
Nominal Value of Sale
|
22,650
|
173,771
|
-87.0%
|
Present Value Adjustment
|
(3,676)
|
(50,436)
|
n.a.
|
Revenue from Farms Sale
|
18,974
|
123,335
|
-84.6%
|
Sales Taxes
|
(693)
|
(4,502)
|
-84.6%
|
Selling Costs
|
(1,709)
|
(18,039)
|
-90.5%
|
Farm Sale Gain
|
16,572
|
100,794
|
-259.7%
|
The variation in the R$23.2 million disclosed through Material Fact and the R$22.7 million recorded in the most recent sale of the Jatobá Farm reflects the possibility of change in price due to differences between the estimated arable hectares and the arable hectares verified in the final measurement. This is possibility is remote, and is considered as a variable consideration component, as defined in paragraphs 50 and 51 of IFRS 15. Therefore, in order to represent the risk of revenue reversal, the Company does not recognize the percentage of 2.3% of the previously disclosed value until the final measurement of the negotiated area.
13
SALE OF AGRICULTURAL PRODUCTS
Net Revenue (R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Total
|
166,006
|
118,336
|
40.3%
|
Soybean
|
51,966
|
39,780
|
30.6%
|
Corn
|
8,859
|
1,883
|
370.5%
|
Cotton
|
5,226
|
-
|
n.a.
|
Sugarcane
|
91,936
|
74,114
|
24.0%
|
Cattle Raising
|
5,980
|
1,955
|
205.9%
|
Leasing
|
2,039
|
582
|
250.3%
|
Others
|
-
|
22
|
n.a.
|
|
|
|
|
|
|
|
|
Quantity sold (tons)
|
1Q20
|
1Q19
|
Change
|
Total
|
1,065,421
|
885,051
|
20.4%
|
Soybean
|
45,319
|
32,196
|
40.8%
|
Corn
|
24,111
|
3,845
|
n.a.
|
Cotton
|
2,685
|
-
|
n.a.
|
Sugarcane
|
992,137
|
848,594
|
16.9%
|
Cattle Raising
|
1,117
|
416
|
168.5%
|
Others
|
52
|
-
|
n.a.
|
Soybean revenue increased by R$12.2 million in 1Q20 compared to the same period last year, from R$39.8 million, from the sale of 32,200 tons at R$1,235.56 per ton, to R$52.0 million, from the sale of 45,300 tons at R$1,146.67 per ton. The rise in sales of soybean in 1Q20 compared to 1Q19 reflects the increase in volume sold. On the other hand, the incorporation of Parceria V in Mato Grosso impacted revenue per ton, as the price practiced in this region is lower, considering the distance for production flow.
Corn revenue in 1Q20 increased by R$7.0 million compared to the same period of the previous year, from R$1.9 million from the sale of 3,800 tons at R$489.73 per ton, to R$8.9 million, from the sale of 24,100 tons at R$367.43 per ton. The growth in corn revenue in 1Q20 compared to 1Q19 reflects the increase in volume sold. On the other hand, the incorporation of Parceria V in Mato Grosso impacted revenue per ton, as the price practiced in this region is lower, considering the distance for production flow.
Sugarcane revenue in 1Q20 increased by R$17.8 million compared to the same period of the previous year, from R$74.1 million from the sale of 848,600 tons at R$87.34 per ton, to R$91.9 million from the sale of 992,100 tons at R$92.66 per ton of sugarcane. The increase in per-ton sugarcane price was due to the higher price of the TRS (total recoverable sugar) of sugarcane sold. In the same period, there was also an increase in the price of the TRS per ton of sugarcane harvested, which went from 0.654 R$/kg in 1Q19 to 0.671 R$/kg in 1Q20.
14
Cattle-raising revenue in 1Q20 increased by R$4.0 million compared to the same period of the previous year, from R$2.0 million from the sale of 1,103 head of cattle at R$4.70 per kilo, to R$6.0 million, which refers to the sale of 3,348 cattle to R$5.35 per kilo.
Leasing revenue reached R$2.1 million in 1Q20 and refers to third-party leases of Farms. These lease contracts have a duration of up to 5 years with value of up to 18% of production, and the minimum value is 5 soybean bags per hectare.
GAINS OR LOSSES OF AGRICULTURAL PRODUCTS AND BIOLOGICAL ASSETS
Biological Assets and Agricultural Products
(R$ thousand)
|
Soybean 18/19
|
Corn
(crop)
18/19
|
Corn
(2nd crop)
18/19
|
Cotton
18/19
|
Sugarcane
|
Cattle
Raising
|
Others
|
Gain / Loss
09/30/19
|
Gains and losses in agricultural products
|
530
|
598
|
(379)
|
498
|
32,850
|
(1,210)
|
(79)
|
32,808
|
Gains and losses in biological assets
|
-
|
-
|
-
|
-
|
5,410
|
-
|
-
|
5,410
|
Change in fair value of biological assets
and agricultural products
|
530
|
598
|
(379)
|
498
|
38,260
|
(1,210)
|
(79)
|
38,218
|
Gains or losses of agricultural products
Gains or losses from the variation in the fair value of agricultural products are determined by the difference between their harvested volume at market value (net of selling expenses and taxes) and the production costs incurred (direct and indirect costs, leasing and depreciation).
Harvested agricultural products are measured at their value at the time of harvest considering the market price of the area of each farm.
Agricultural Products
|
Soybean 18/19
|
Corn
(crop)
18/19
|
Corn
(2nd crop)
18/19
|
Cotton
18/19
|
Sugarcane
|
Cattle
Raising
|
Others
|
Gain / Loss
09/30/19
|
Area (hectares)
|
-
|
1,095
|
7,670
|
976
|
12,348
|
13,351
|
-
|
35,440
|
Production (Tons or Meat Kgs)
|
-
|
4,053
|
33,681
|
3,289
|
1,094,916
|
491,831
|
-
|
1,627,770
|
Yield (Ton./ha) (Kg/Head)
|
-
|
-
|
-
|
-
|
-
|
19,038
|
-
|
19,038
|
Livestock - head of cattle
|
-
|
3.70
|
4.39
|
3.37
|
88.67
|
25.83
|
-
|
45.93
|
Production fair value (R$ thousand)
|
59
|
2,424
|
10,576
|
7,977
|
108,253
|
3,138
|
260
|
132,687
|
Production Cost (R$ thousand)
|
471
|
(1,826)
|
(10,955)
|
(7,479)
|
(75,403)
|
(4,348)
|
(339)
|
(99,879)
|
Gain and losses in agricultural products (R$ thousand)
|
530
|
598
|
(379)
|
498
|
32,850
|
(1,210)
|
(79)
|
32,808
|
The table below shows the results of the sugarcane harvest in the fiscal year, including gains (losses) in the value of agricultural products:
15
Period ended June 30, 2019
|
2018 Harvest
(Jul to Dec/2018)
|
2019 Harvest
(Jan to Jun/2019)
|
Total
|
Net Revenue
|
115,113
|
45,363
|
160,476
|
Cost of sales
|
(97,475)
|
(44,828)
|
(142,303)
|
Gain (loss) of agricultural products
|
16,497
|
11,161
|
27,658
|
Total
|
34,135
|
11,696
|
45,831
|
Produced Tons
|
1,329,019
|
603,216
|
1,932,235
|
|
|
|
|
Period ended September 30, 2019
|
|
2019 Harvest
(Jul to Sep/2019)
|
Total
|
Net Revenue
|
|
91,936
|
91,936
|
Cost of sales
|
|
(90,862)
|
(90,862)
|
Gain (loss) of agricultural products
|
|
33,916
|
33,916
|
Total
|
|
34,990
|
34,990
|
Produced Tons
|
|
1,094,916
|
1,094,916
|
|
|
|
|
Sugarcane Harvest Year
|
2018 Harvest
(Jan to Dec/2018)
|
2019 Harvest
(Jan to Sep/2019)
|
Change
|
Net Revenue
|
141,445
|
137,299
|
-2.9%
|
Cost of sales
|
(133,725)
|
(135,690)
|
1.5%
|
Gain (loss) of agricultural products
|
27,443
|
45,077
|
64.3%
|
Total
|
35,163
|
46,686
|
32.8%
|
Produced Tons
|
1,763,193
|
1,698,132
|
-3.7%
|
By October 30, the harvest of the 2019 sugarcane crop in the Midwest region had been completed. By the end of November, we expect to have concluded the harvest of the remaining 8% of the estimated volume at the São José Farm.
Loss from cattle raising corresponded to R$1.4 million, with a production of 491.8 tons of meat, 5.0% lower compared to the same period last year. It is worth mentioning that the first four months of each harvest have a historically lower record of weight gain, due to rainfall patterns and supply of pastures.
Cattle Raising
|
1Q20
|
1Q19
|
Change
|
Net Revenue
|
5,980
|
1,955
|
205.9%
|
Cost of sales
|
(6,203)
|
(2,089)
|
196.9%
|
Gain (loss) of agricultural products
|
(1,211)
|
(1,373)
|
-11.8%
|
Total
|
(1,434)
|
(1,507)
|
n.a.
|
Produced Kgs
|
491,831
|
517,571
|
-5.0%
|
16
Gains or losses of biological assets
Biological Assets
|
Soybean
19/20
|
Corn
(crop)
19/20
|
Corn
(2nd crop)
19/20
|
Cotton
19/20
|
Sugarcane
|
Gain / Loss
09/30/19
|
Area (hectares)
|
-
|
-
|
-
|
-
|
27,491
|
27,491
|
Production (Tons)
|
-
|
-
|
-
|
-
|
1,931,611
|
1,931,611
|
Yield (Ton./ha)
|
-
|
-
|
-
|
-
|
70.26
|
70.26
|
Biological Assets (R$ thousand)
|
-
|
-
|
-
|
-
|
5,410
|
5,410
|
Biological assets correspond to agricultural products in formation (not yet harvested) and cattle, measured at the net present value of the expected cash flow from these products. The calculation of fair value considers the best estimates in relation to sales prices, discount rates, direct and indirect costs, leasing, yields and selling expenses. In the first quarter, biological assets from soybean, corn and cotton crops are not yet accounted for.
The biological assets corresponding to sugarcane represent the total area to be harvested from April 1 to November 30, 2019.
IMPAIRMENT (REVERSAL OF PROVISIONS OF THE RECOVERABLE AMOUNT OF AGRICULTURAL PRODUCTS, NET)
A provision to adjust inventories at the net realized value of agricultural products is constituted when the fair value of the inventory is higher than the realized value. The realization value is the sales price estimated during the normal course of business less estimated selling expenses.
On September 30, 2019, the recognized amount corresponded to a loss of R$1.3 million.
17
COST OF PRODUCTION
18/19 Harvest (%)
|
Soybean
|
Corn
|
Corn
2nd Crop
|
Cotton
|
Sugarcane
|
Cattle
Raising
|
Variable costs
|
72%
|
74%
|
100%
|
86%
|
69%
|
35%
|
Seeds
|
9%
|
17%
|
22%
|
7%
|
0%
|
0%
|
Fertilizers
|
22%
|
27%
|
28%
|
16%
|
8%
|
0%
|
Defensives
|
20%
|
12%
|
16%
|
31%
|
7%
|
0%
|
Agricultural services
|
17%
|
14%
|
34%
|
32%
|
45%
|
0%
|
Fuels and Lubricants
|
3%
|
3%
|
0%
|
0%
|
8%
|
0%
|
Maintenance of machines and instruments
|
0%
|
0%
|
0%
|
0%
|
0%
|
5%
|
Animal Feed
|
0%
|
0%
|
0%
|
0%
|
0%
|
26%
|
Others
|
1%
|
1%
|
0%
|
0%
|
0%
|
4%
|
Fixed costs
|
28%
|
26%
|
0%
|
14%
|
31%
|
65%
|
Labor
|
8%
|
10%
|
0%
|
3%
|
6%
|
31%
|
Depreciation and amortization
|
2%
|
7%
|
0%
|
3%
|
9%
|
14%
|
Leasing
|
14%
|
7%
|
0%
|
8%
|
7%
|
0%
|
Others
|
4%
|
2%
|
0%
|
0%
|
10%
|
19%
|
(R$ / ha)
|
|
18/19
Harvest
|
19/20 Harvest
Estimated
|
Change
%
|
Soybean(1)
|
|
2,747
|
2,950
|
7.4%
|
Corn(1)
|
|
2,578
|
2,366
|
-8.2%
|
Corn 2nd Crop
|
|
1,357
|
1,585
|
16.8%
|
Cotton
|
|
8,286
|
8,877
|
7.1%
|
Sugarcane
|
|
5,307
|
5,726
|
7.9%
|
(1) includes area opening amortization
|
|
|
|
|
18
COST OF GOODS SOLD
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Cost of Goods Sold
|
(127,227)
|
(78,872)
|
61.3%
|
Soybean
|
(47,125)
|
(21,887)
|
115.3%
|
Corn
|
(7,649)
|
(1,632)
|
368.7%
|
Cotton
|
(6,319)
|
-
|
n.a.
|
Sugarcane
|
(59,573)
|
(53,231)
|
11.9%
|
Cattle Raising
|
(6,203)
|
(2,089)
|
196.9%
|
Leasing
|
(351)
|
-
|
n.a.
|
Others
|
(7)
|
(33)
|
-78.8%
|
|
|
|
|
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Realization of the Fair Value of Biological Assets
|
(31,580)
|
(26,197)
|
20.5%
|
Soybean
|
16
|
(12,590)
|
n.a.
|
Corn
|
(982)
|
(56)
|
1653.6%
|
Cotton
|
380
|
-
|
n.a.
|
Sugarcane
|
(31,288)
|
(13,557)
|
130.8%
|
Others
|
294
|
6
|
n.a.
|
|
|
|
|
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Total Cost of Goods Sold
|
(158,807)
|
(105,069)
|
51.1%
|
Soybean
|
(47,109)
|
(34,477)
|
36.6%
|
Corn
|
(8,631)
|
(1,688)
|
411.3%
|
Cotton
|
(5,939)
|
-
|
n.a.
|
Sugarcane
|
(90,861)
|
(66,788)
|
36.0%
|
Cattle Raising
|
(6,203)
|
(2,089)
|
196.9%
|
Leasing
|
(351)
|
-
|
n.a.
|
Others
|
287
|
(27)
|
n.a.
|
Due to adjustments to the fair value of agricultural products, period changes in costs are directly linked to the market price of commodities at the time of harvest for the calculation of Total COGS. The comments on each crop below exclude the effect of the realization of the fair value of biological assets.
Soybean COGS increased by R$25.2 million in 1Q20 compared to the previous year, from R$21.9 million, from the sale of 32,200 tons at R$679.80 per ton, to R$47.1 million, from the sale of 45,300 tons at R$1,039.85 per ton. The increase in cost was due to the increase in volume sold (R$9.0 million), the variation in
fertilizer prices, impacted by freight and exchange rates and the drop in productivity per hectare (R$16.2 million).
19
Corn COGS increased by R$6.0 million compared to the previous year, from R$1.6 million, from the sale of 3,800 tons at R$424.45 per ton, to R$7.6 million, from the sale of 24,100 tons at R$317.24 per ton. The decrease in cost was due to the higher volume sold and the consequent dilution of fixed cost.
Sugarcane COGS increased by R$6.3 million in 1Q20 versus the previous year, from R$53.2 million, from the sale of 848,600 tons at R$62.73 per ton, to R$59.6 million, from the sale of 992,100 million tons at R$60.05 per ton of sugarcane. The decrease in cost per ton is mainly due to improved productivity at the São José Farm, which resulted in greater dilution of cost.
Cattle-raising COGS increased R$4.1 million in 1Q20 compared to the previous year, from R$2.1 million from the sale cost of 1,103 head of cattle at R$1.8 thousand per head, to R$6.2 million from the sale cost of 3,348 head of cattle at R$1.9 thousand per head.
SELLING EXPENSES
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Selling expenses
|
(3,873)
|
(1,175)
|
229.6%
|
Freight
|
(1,360)
|
(281)
|
384.0%
|
Storage and Processing
|
(2,489)
|
(446)
|
458.1%
|
Others
|
(24)
|
(448)
|
-94.6%
|
In 1Q20, we recorded R$3.9 million in selling expenses, an increase of R$2.7 million compared to 1Q19, mainly due to the higher volume sold and higher storage expenses in Mato Grosso, after the start of operations at the Parceria V Farm.
20
GENERAL AND ADMINISTRATIVE EXPENSES
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
General and administrative expenses
|
(9,186)
|
(10,316)
|
-11.0%
|
Depreciations and amortizations
|
(324)
|
(380)
|
-14.7%
|
Personnel expenses
|
(6,018)
|
(6,972)
|
-13.7%
|
Expenses with services providers
|
(1,098)
|
(1,127)
|
-2.6%
|
Leases and Rents
|
(89)
|
(176)
|
-49.4%
|
Taxes
|
(867)
|
(961)
|
-9.8%
|
Travel expenses
|
(175)
|
(151)
|
15.9%
|
Software expenses
|
(276)
|
(151)
|
82.8%
|
Other expenses
|
(339)
|
(398)
|
-14.8%
|
In 1Q20, general and administrative expenses decreased by 11.0% compared to the same period of the previous year, from R$10.3 million to R$9.2 million. The 49.4% decrease in lease and rental expenses reflects the reclassifications established by IFRS 16.
Other expenses include costs regarding telephony services, building maintenance, registry, insurances, shares listing and others.
OTHER OPERATING INCOME / EXPENSES
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Other operating income/expenses
|
446
|
(300)
|
n.a.
|
Gain/Loss on sale of fixed assets
|
585
|
(130)
|
n.a.
|
Provisions for lawsuits
|
88
|
31
|
183.9%
|
Others
|
(227)
|
(201)
|
12.9%
|
21
FINANCIAL RESULT
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Total
|
1,235
|
18,689
|
-93.4%
|
Interest (i)
|
(4,723)
|
(4,730)
|
-0.1%
|
Exchange vartiation (ii)
|
1,415
|
(931)
|
n.a.
|
Present value adjustment (iii)
|
5,759
|
23,969
|
-76.0%
|
Results with derivatives (iv)
|
(2,743)
|
(1,221)
|
124.7%
|
Other financial income / expenses (v)
|
1,527
|
1,602
|
-4.7%
|
The consolidated financial result is composed of the following items: (i) interest on financing; (ii) the impact of the exchange variation on the offshore account; (iii) the present value of the Araucária, the Alto Taquari and the Jatobá Farms’ sales receivables, fixed in soybean bags, and the leasing of sugarcane areas; (iv) the result from hedge operations; and (v) bank fees and expenses and returns on cash investments.
The realization of the present value of assets and liabilities in 1Q20, in the amount of R$7.6 million, shows the variation in the amount to be received due to the sales of the Araucária, the Jatobá and the Alto Taquari Farms, denominated in soybean bags, and the variation of Consecana’s price in the lease of the Parceria IV Farm.
The derivatives result reflects the commodities hedge operations result and the impact of the exchange variation on cash, which was partially dollarized in order to maintain purchasing power in regard to inputs, investments and new acquisitions, which have a positive correlation with the U.S. currency. In 1Q20, the result of derivative transactions was a negative R$2.7 million, R$7.8 million of which are related to currency operations and R$5.1 million are related to operations with commodities. In 1Q19, derivative operations totaled a negative R$1.2 million, R$2.6 million of which are related to currency operations and R$1.4 million related to operations with commodities.
The rise in other financial income / expenses is due to the SELIC rate reduction. The Company’s cash position went from an average cash flow of R$80.0 million in 1Q19 to R$102.2 million in 1Q20.
22
DERIVATIVE OPERATIONS
Our risk policy primarily aims to hedge the Company’s cash flow. In this context, we are concerned not only with the main components of our revenue, but also the main components of our production costs. Therefore, we monitor on a daily basis: a) the international prices of the main agricultural commodities produced by the Company, usually expressed in U.S. dollars; b) the base premium, i.e. the difference between the international and domestic commodity price; c) exchange rates; and d) the prices of the main components such as freight, fertilizers and chemicals, that can significantly impact costs.
The points analyzed when deciding on the price and margin hedging strategy and tools are listed below:
• Estimated gross margin based on the current price environment.
• Standard deviation from the estimated gross margin for different pricing strategy scenarios.
• Analysis of the estimated gross margin in stress scenarios for different hedge strategies.
• Comparison between current estimates and the Company’s budget.
• Comparison of the estimated gross margin and the historical average.
• Market expectations and trends.
• Tax aspects.
HEDGE POSITION ON OCTOBER 31, 2019
Harvest
|
Soybean
|
FX
|
Volume
|
% of hedge(1)
|
Price (USD/bu)
|
Volume (thousand)
|
% of hedge(2)
|
BRL/USD
|
19/20
|
64,821 ton
|
43.6%
|
9.63
|
USD 30,043
|
56.8%
|
4.04
|
(1) % of the volume of soybean locked in tons.
|
(2) % of estimated revenue in USD.
|
23
Balance Sheet
DISTRIBUTION OF DIVIDENDS
On October 16, the Annual and Extraordinary Shareholders’ Meeting approved the distribution of dividends equivalent to R$0.93 per share. The payment of dividends will be made as of November 14, and the Company's shares Company will be traded "ex" dividends from October 17, 2019.
NET ASSET VALUE – NAV
(R$ mil)
|
09/30/2019
|
Book
|
NAV
|
BrasilAgro's Equity
|
938,852
|
938,852
|
Properties appraisal
|
-
|
1,471,248
|
(-) Balance Sheet - Land Value (Investment Properties)
|
-
|
(564,467)
|
NAV - Net Asset Value
|
938,852
|
1,845,633
|
Shares
|
56,889
|
56,889
|
NAV per share
|
16.50
|
32.44
|
CASH AND CASH EQUIVALENTS
Cash and Cash equivalents / Marketable Securities
|
09/30/2019
|
06/30/2019
|
Change
|
Cash and Cash equivalents
|
112,461
|
106,627
|
5.5%
|
Cash and Banks
|
24,554
|
25,614
|
-4.1%
|
Repurchase agreements
|
7,438
|
12,632
|
-41.1%
|
Bank deposit certificates
|
52,478
|
46,262
|
13.4%
|
Finance Lease bills
|
27,991
|
22,119
|
26.5%
|
Marketable securities
|
4,041
|
4,038
|
0.1%
|
Bank deposit certificates
|
4,041
|
3,983
|
1.5%
|
Treasury financial bills
|
-
|
55
|
n.a.
|
Restricted Marketable securities
|
9,209
|
9,114
|
1.0%
|
Banco do Nordeste (loan guarantees)
|
9,209
|
9,114
|
1.0%
|
Total
|
125,711
|
119,779
|
5.0%
|
24
CLIENTS
(R$ mil)
|
09/30/2019
|
06/30/2019
|
Change
|
Sugarcane Sales
|
47,224
|
27,623
|
71.0%
|
Grains Sales
|
36,387
|
36,546
|
-0.4%
|
Cattle Raising Sales
|
958
|
1,210
|
-20.8%
|
Leases and Rents
|
4,308
|
6,954
|
-38.1%
|
Machinery Sales
|
353
|
121
|
191.7%
|
Farm Sales
|
46,315
|
41,351
|
12.0%
|
|
135,545
|
113,805
|
19.1%
|
|
|
|
|
Provision for doubtful accounts
|
(1,159)
|
(1,159)
|
0.0%
|
|
|
|
|
Current total
|
134,386
|
112,646
|
19.3%
|
|
|
|
|
Farm Sales
|
176,016
|
180,597
|
-2.5%
|
|
|
|
|
Non-current total
|
176,016
|
180,597
|
-2.5%
|
INVENTORY
(R$ thousand)
|
09/30/2019
|
06/30/2019
|
Change
|
Soybean
|
12,524
|
54,581
|
-77.1%
|
Corn
|
15,242
|
11,116
|
37.1%
|
Cotton
|
6,354
|
4,349
|
46.1%
|
Livestock
|
37,072
|
37,122
|
-0.1%
|
Other crops
|
462
|
255
|
81.2%
|
Agricultural Products
|
71,654
|
107,423
|
-33.3%
|
Supplies
|
56,294
|
26,767
|
110.3%
|
Total
|
127,948
|
134,190
|
-4.7%
|
The Company ended 1Q20 with an inventory of 13,500 tons of soybean, 45,800 tons of corn, 2,100 tons of cotton and 19,000 head of cattle. At the end of 1Q19, the Company’s inventory was 15,700 tons of soybean, 4,800 tons of corn and 20,300 head of cattle.
Cattle biological assets are measured at fair value and controlled in accordance with two methodologies: 12 to 15-month calves and steers (heifers) are controlled and valued by head, while older animals are controlled by weight.
25
Inventories - Cattle Raising
|
Total Heads
|
Value
(R$ thousand)
|
In June 30, 2019
|
20,865
|
37,122
|
Aquisition, Birth | Aquisition Expenses
|
1,606
|
3,485
|
Handling Expenses
|
-
|
4,348
|
Sales
|
(3,348)
|
(6,153)
|
Deaths
|
(85)
|
(127)
|
Exchange variation
|
-
|
(392)
|
Fair value variation
|
-
|
(1,211)
|
In September 30, 2019
|
19,038
|
37,072
|
INDEBTEDNESS
(R$ thousand)
|
Expiration
|
Annual Interest Tax - %
|
09/30/2019
|
06/30/2019
|
Change
|
Short term
|
|
|
|
|
|
Financing for Agricultural Funding
|
Sep-20
|
Pre 6.14 to 7.00
|
13,928
|
38,588
|
-63.9%
|
Financing for Agricultural Funding (USD)
|
Nov-19
|
Pre 7.25 to 8.25
|
19,763
|
18,364
|
7.6%
|
Financing of Projeto Bahia
|
Sep-20
|
Pre 3.50 to 9.00
|
4,583
|
6,243
|
-26.6%
|
Machinery and Equipment Financing
|
Sep-20
|
TJLP + 3.73
Pre 8.50 to 10.50
|
1,635
|
1,431
|
14.3%
|
Sugarcane Financing
|
Sep-20
|
TJLP + 2.70 to 3.80
Pre 6.14 to 10.00
|
32,508
|
1,401
|
n.a.
|
Debentures
|
Sep-20
|
106.50 and 110.00 of CDI rate
|
42,668
|
10,581
|
303.3%
|
|
|
|
115,085
|
76,608
|
50.2%
|
Long term
|
|
|
|
|
|
Financing of Agricultural Costs
|
Aug-24
|
Pre 7.64
|
6,666
|
-
|
n.a.
|
Financing of Projeto Bahia
|
Aug-23
|
Pre 3.50 to 9.00
|
18,105
|
22,291
|
-18.8%
|
Machinery and Equipment Financing
|
Jun-24
|
TJLP + 3.73
Pre 8.50 to 10.50
|
3,792
|
4,111
|
-7.8%
|
Sugarcane Financing
|
Dec-23
|
TJLP + 2.70 to 3.80
Pre 6.14 to 10.00
|
14,200
|
42,081
|
-66.3%
|
Debentures
|
Jul-23
|
106.50 and 110.00 of CDI rate
|
99,587
|
140,762
|
-29.3%
|
|
|
|
142,350
|
209,245
|
-32.0%
|
Total
|
|
|
257,435
|
285,853
|
-9.9%
|
On September 30, 2019 and June 30, 2019, the balance of loans and financing was R$257.4 million and R$285.9 million, respectively. The payment of interest and principal totaled R$46.8 million in 1Q20.
During the period, R$12.6 million were also disbursed to finance the cost of sugarcane, soybean, corn and cotton operations.
The average cost of debt is 6.2% p.a., with an average maturity of 2 years.
26
FINANCIAL LEASES – IFRS 16
With the adoption of IFRS 16, the Company opted for the modified retrospective method, considering the value of the right of use asset measured at the amount equal to the lease liability, calculated at present value based on the lessee’s incremental borrowing rate on the transition date, classified as Financial leases.
Therefore, the value of the right of use Asset and its equivalent value in the lease Liability are now calculated at present value. Asset values, after being marked to market, will be monthly recognized in the cost of production account, according to the respective fraction of each contract, and also updated by the variation of the soybean or sugarcane bag in Reais.
Currently, the Company’s main agreements subject to IFRS 16 apply to agricultural partnership operations and land leasing, in addition to other minor contracts involving the leasing of vehicles, buildings and machinery.
Liabilities will be recognized whenever there is an effective lease payment, in addition to periodic updating by the variation of the soybean or sugarcane bag and adjustment to present value. The impacts of the adjustment to present value will be recognized in the Financial Result.
For more information, please see Notes 14 and 27 in the Quarterly Information.
(R$ thousand)
|
Nature
|
09/30/2019
|
06/30/2019
|
Change
|
Short Term
|
|
|
|
|
|
|
|
Sugarcane Finance Leasing
|
Partnership III
|
261
|
254
|
2.8%
|
Operating Leases
|
-
|
16,380
|
21,133
|
-22.5%
|
|
|
|
16,641
|
21,387
|
-22.2%
|
Long Term
|
|
|
|
|
|
|
|
Sugarcane Finance Leasing
|
Partnership IV
|
23,494
|
20,943
|
12.2%
|
Operating Leases
|
-
|
91,953
|
-
|
n.a.
|
|
|
|
115,447
|
20,943
|
451.2%
|
Total
|
|
|
132,088
|
42,330
|
212.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(R$ thousand)
|
06/30/2019
|
IFRS 16 Initial
Adoption
|
Exchange
Variation
|
Updates
|
Payment
|
06/30/2019
|
Change
|
Sugarcane Finance Leasing - Partenership III
|
254
|
-
|
-
|
7
|
-
|
261
|
-2.7%
|
Sugarcane Finance Leasing - Partenership IV
|
20,943
|
-
|
-
|
2,551
|
-
|
23,494
|
-10.9%
|
Operating Leases
|
21,133
|
92,795
|
52
|
1,885
|
(7,532)
|
108,333
|
-80.5%
|
Total
|
42,330
|
92,795
|
52
|
4,443
|
(7,532)
|
132,088
|
-68.0%
|
PROPERTIES FOR INVESTMENT
The fundamental pillars of the Company’s business strategy are the acquisition, development, exploration and sale of rural properties suitable for agricultural activities. The Company acquires rural properties with significant potential for generating value, subsequently transforming the assets and carrying out profitable agricultural activities on them.
27
Once we acquire our rural properties, we begin to implement high value added crops and to transform these rural properties by investing in infrastructure and technology. In line with our strategy, when we deem a rural property has reached its optimal return, we sell it to capture the capital gains.
The rural properties acquired by the Company are booked at their acquisition cost, which does not exceed their realized net value, and are recognized under “Non-Current Assets”.
Properties for investment are evaluated at their historical cost, plus investments in buildings, improvements and the clearing of new areas, less accrued depreciation, in accordance with the same criteria detailed for fixed assets.
(R$ thousand)
|
Acquisition value
|
Buildings and improvements
|
Area
Opening
|
Construction in progress
|
Investment Properties
|
Initial Balance
|
410,561
|
39,658
|
78,832
|
19,666
|
548,717
|
In June 30, 2019
|
|
|
|
|
|
Acquisitions
|
-
|
39
|
6
|
3,689
|
3,734
|
Reductions
|
(1,219)
|
-
|
(487)
|
-
|
(1,706)
|
(-) Depreciation/ Amortization
|
-
|
(403)
|
(1,713)
|
-
|
(2,116)
|
Cumulative Translation Adjustment
|
11,543
|
854
|
2,949
|
492
|
15,838
|
In September 30, 2019
|
420,885
|
40,148
|
79,587
|
23,847
|
564,467
|
DEPRECIATION – AREA OPENING
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Maintenance
|
(2,460)
|
(2,415)
|
1.9%
|
Opening¹
|
(4,009)
|
(11,870)
|
-66.2%
|
Total
|
(6,469)
|
(14,285)
|
-54.7%
|
(1) During the 2018/2019 haverst year the opening depreciation rate was adjusted
|
CAPEX – PROPERTY, PLANT AND EQUIPMENT
(R$ thousand)
|
Buildings and improvements
|
Equipments and facilities
|
Machinery
|
Furniture and untensils
|
Sugarcane
|
Property, Plant and Equipment
|
Initial Balance
|
111
|
13,774
|
11,022
|
1,044
|
81,901
|
107,852
|
In June 30, 2019
|
|
|
|
|
|
|
Acquisitions
|
-
|
398
|
1,858
|
38
|
4,527
|
6,821
|
Reductions
|
-
|
(11)
|
(723)
|
(2)
|
-
|
(736)
|
(-) Depreciation/ Amortization
|
(16)
|
(447)
|
(2,442)
|
(43)
|
(9,121)
|
(12,069)
|
Cumulative Translation Adjustment
|
-
|
2
|
160
|
14
|
-
|
176
|
In September 30, 2019
|
95
|
13,716
|
9,875
|
1,051
|
77,307
|
102,044
|
28
INVESTMENT IN AGROFY
On October 2, the Company announced an investment of US$1,000,000.00 in Ag-Fintech Agrofy, in return for a stake in the company. The startup is an online marketplace with a complete range of e-commerce solutions, customized to meet the needs of the retailers and their partners and channels, seeking an alternative way of connecting farmers and suppliers.
This investment was made in a primary funding round and represents the Company’s efforts to invest in innovation and technology and, therefore, ensure greater efficiency and sustainability of its business.
29
|
CAPITAL MARKETS
|
The Company was the first agricultural production company to list its shares on the Novo Mercado segment of B3 (São Paulo Stock Exchange) and was also the first Brazilian agribusiness company to list its ADRs (American Depositary Receipts) on the NYSE (New York Stock Exchange).
Share Performance
On November 6, 2019, BrasilAgro’s shares (AGRO3) were traded at R$16.85, resulting in a market cap of R$958.6 million, while its ADRs (LND) were traded at US$4.20.
HIGHLIGHTS - AGRO3
|
1Q20
|
1Q19
|
Average Daily Trade Volume (R$)
|
1,710,424
|
748,285
|
Maximun (R$ per share)
|
17.13
|
13.18
|
Mininum (R$ per share)
|
15.22
|
12.09
|
Average (R$ per share)
|
16.12
|
12.51
|
Closing Quote (R$ per share)
|
16.88
|
12.29
|
Variation in the period (%)
|
6.59%
|
1.33%
|
30
31
|
WEIGHTS AND MEASURES USED IN AGRICULTURE
|
Weights and Measures used in Agriculture
|
|
1 ton
|
1,000 kg
|
|
1 Kilo
|
2.20462 pounds
|
|
1 pound
|
0.45359 kg
|
|
1 acre
|
0.1840 bushel
|
|
1 hectare (ha)
|
2.47105 acres
|
|
1 hectare (ha)
|
10,000 m2
|
|
1 bushel
|
5.4363 acres
|
|
|
|
|
Soybean
|
|
|
1 bushel of soybean
|
60 pounds
|
27.2155 kg
|
1 bags of soybean
|
60 kg
|
2.20462 bushels
|
1 bushel/acre
|
67.25 kg/ha
|
|
1.00 US$/bushel
|
2.3621 US$/bag
|
|
|
|
|
Corn
|
|
|
1 bushel of corn
|
56 pounds
|
25.4012 kg
|
1 bags of corn
|
60 kg
|
2.36210 bushels
|
1 bushel/acre
|
62.77 kg/ha
|
|
1.00 US$/bushel
|
2.3621 US$/bag
|
|
|
|
|
Cattle
|
|
|
1 arroba
|
~66.2 pounds
|
30 Kg
|
1 net arroba (excluding carcass)
|
~33.1 pounds
|
15 Kg
|
32
|
INCOME STATEMENT
|
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
Revenues from Farm Sales
|
18,974
|
123,335
|
-85%
|
Revenues from grains
|
61,744
|
42,569
|
45%
|
Revenues from cotton
|
5,260
|
-
|
n.a.
|
Revenues from sugarcane
|
91,937
|
75,687
|
21%
|
Revenues from cattle raising
|
6,263
|
2,000
|
213%
|
Revenues from leasing
|
2,603
|
1,566
|
66%
|
Other revenues
|
137
|
71
|
93%
|
Deductions from gross revenue
|
(1,938)
|
(3,556)
|
-46%
|
Net Sales Revenue
|
184,980
|
241,672
|
-23%
|
Change in fair value of biological assets and agricultural products
|
38,218
|
29,042
|
32%
|
Impairment
|
(1,345)
|
-
|
n.a.
|
Net Revenue
|
221,853
|
270,714
|
-18%
|
Cost of Farm Sale
|
(2,402)
|
(22,541)
|
-89%
|
Cost of agricultural products sale
|
(158,808)
|
(105,069)
|
51%
|
Gross Profit
|
60,643
|
143,104
|
-58%
|
Selling Expenses
|
(3,873)
|
(1,174)
|
230%
|
General and Administrative Expenses
|
(9,186)
|
(10,318)
|
-11%
|
Depreciation and Amortization
|
(324)
|
(380)
|
-15%
|
Personnel expenses
|
(6,018)
|
(6,972)
|
-14%
|
Expenses with services providers
|
(1,098)
|
(1,127)
|
-3%
|
Leases and Rents
|
(89)
|
(176)
|
-49%
|
Others expenses
|
(1,657)
|
(1,663)
|
0%
|
Other operating income/expenses, net
|
446
|
(300)
|
n.a.
|
Equity pick up
|
(40)
|
(47)
|
-15%
|
Financial result
|
1,235
|
18,689
|
-93%
|
Financial income
|
71,605
|
135,031
|
-47%
|
Interest on Financial Investments
|
1,757
|
2,059
|
-15%
|
Interest on assets
|
156
|
111
|
41%
|
Foreign exchange variations
|
2,795
|
1,265
|
121%
|
Unwind of present value adjustment
|
40,609
|
75,433
|
-46%
|
Realized results with derivatives
|
4,812
|
13,421
|
-64%
|
Unrealized results with derivatives
|
21,476
|
42,742
|
-50%
|
Financial expenses
|
(70,370)
|
(116,342)
|
-40%
|
Interest expenses
|
(83)
|
(98)
|
-15%
|
Bank charges
|
(147)
|
(359)
|
-59%
|
Interest on liabilities
|
(4,879)
|
(4,841)
|
1%
|
Foreign exchange variations
|
(1,380)
|
(2,196)
|
-37%
|
Unwind of present value adjustment
|
(34,850)
|
(51,464)
|
-32%
|
Realized results with derivatives
|
(4,706)
|
(16,776)
|
-72%
|
Unrealized results with derivatives
|
(24,325)
|
(40,608)
|
-40%
|
Profit (loss) before income and social contribution taxes
|
49,225
|
149,954
|
-67%
|
Income and social contribution taxes
|
(8,649)
|
(13,317)
|
-35%
|
Profit (loss) for the period
|
40,576
|
136,637
|
-70%
|
Outstanding shares at the end of the period
|
56,888,916
|
56,888,916
|
n.a.
|
Basic earnings (loss) per share - R$
|
0.71
|
2.40
|
-70%
|
33
|
BALANCE SHEET – ASSETS
|
Assets (R$ thousand)
|
09/30/2019
|
06/30/2019
|
Change
|
Current assets
|
|
|
|
Cash and Cash equivalents
|
112,461
|
106,627
|
5%
|
Marketable securities
|
4,041
|
4,038
|
0%
|
Derivative financial instruments
|
5,646
|
5,906
|
-4%
|
Trade accounts receivable
|
156,576
|
125,320
|
25%
|
Inventories
|
90,876
|
97,068
|
-6%
|
Biologial assets
|
92,675
|
99,881
|
-7%
|
Transactions with related parties
|
2,002
|
1,987
|
1%
|
|
464,277
|
440,827
|
5.3%
|
|
|
|
|
Non-current assets
|
|
|
|
Biological assets
|
19,461
|
23,235
|
-16%
|
Marketable securities
|
9,209
|
9,114
|
1%
|
Derivative financial instruments
|
787
|
1,013
|
-22%
|
Diferred taxes
|
16,822
|
20,510
|
-18%
|
Accounts receivable and other credits
|
202,619
|
203,533
|
0%
|
Investment properties
|
564,467
|
548,717
|
3%
|
Investments
|
3,410
|
1,256
|
n.a.
|
Property, plant and equipment
|
102,044
|
107,852
|
-5%
|
Intangible assets
|
1,611
|
1,557
|
3%
|
Using rights of Leasings
|
89,049
|
-
|
n.a.
|
|
1,009,479
|
916,787
|
10.1%
|
|
|
|
|
Total assets
|
1,473,756
|
1,357,614
|
8.6%
|
34
|
BALANCE SHEET – LIABILITIES
|
Liabilities (R$ thousand)
|
09/30/2019
|
06/30/2019
|
Change
|
Current liabilities
|
|
|
|
Trade accounts payable and other obligations
|
98,955
|
98,070
|
1%
|
Loans and financing
|
115,085
|
76,608
|
50%
|
Labor obligations
|
10,535
|
17,093
|
-38%
|
Derivative financial instruments
|
13,020
|
11,055
|
18%
|
Transactions with related parties
|
2,361
|
2,405
|
-2%
|
Financial Leasings
|
16,641
|
21,387
|
-22%
|
|
256,597
|
226,618
|
13.2%
|
|
|
|
|
Non-current liabilities
|
|
|
|
Trade accounts payable and other obligations
|
19,775
|
19,451
|
2%
|
Loans and financing
|
142,350
|
209,245
|
-32%
|
Financial Leasings
|
115,447
|
20,943
|
451%
|
Provision for legal claims
|
735
|
824
|
-11%
|
|
278,307
|
250,463
|
11.1%
|
|
|
|
|
Total liabilities
|
534,904
|
477,081
|
12.1%
|
|
|
|
|
Equity
|
|
|
|
Share Capital
|
584,224
|
584,224
|
n.a.
|
Capital reserves
|
5,155
|
3,645
|
41%
|
Treasury shares
|
(35,208)
|
(35,208)
|
0%
|
Profits reserves
|
281,052
|
281,052
|
0%
|
Proposed additional dividends
|
7,944
|
7,944
|
n.a.
|
Comprehensive Income
|
55,109
|
38,876
|
42%
|
Accumulated profit
|
40,576
|
-
|
n.a.
|
Total equity
|
938,852
|
880,533
|
6.6%
|
|
|
|
|
Total liabilities and equity
|
1,473,756
|
1,357,614
|
8.6%
|
35
|
CASH FLOW
|
(R$ thousand)
|
1Q20
|
1Q19
|
Change
|
CASH FLOW OF OPERATING ACTIVITIES
|
|
|
|
Profit (loss) for the period
|
40,576
|
136,637
|
-70%
|
Adjustments to reconcile net income
|
|
|
|
Depreciation and amortization
|
11,972
|
11,624
|
3%
|
Farm Sales Gain
|
(16,572)
|
(100,794)
|
-84%
|
Residual value of fixed assets
|
245
|
135
|
81%
|
Written-off in investment properties
|
487
|
9,499
|
-95%
|
Equity Pickup
|
40
|
47
|
-15%
|
Gain unrealized results with derivatives
|
2,849
|
(2,134)
|
n.a.
|
Exchange rate, monetary and financial charges
|
1,634
|
3,700
|
-56%
|
Adjustment to present value for receivables from sale of farms, machinery and financial leasings
|
(5,759)
|
(23,969)
|
-76%
|
Share based Incentive Plan (ILPA)
|
1,510
|
526
|
187%
|
Income and social contribution taxes
|
3,688
|
7,682
|
-52%
|
Fair value of biological assets and agricultural products and depletion of harvest
|
(38,218)
|
(29,042)
|
32%
|
Provision (Reversal) of impairment of agricultural products after harvest
|
1,345
|
-
|
n.a.
|
Allowance for doubtful accounts
|
-
|
(511)
|
n.a.
|
Provisions for lawsuits
|
(89)
|
(31)
|
187%
|
|
3,708
|
13,369
|
-72%
|
Changes in the Short Term Operating Capital
|
|
|
|
Trade accounts receivable
|
9,696
|
(24,457)
|
n.a.
|
Inventories
|
4,643
|
3,286
|
41%
|
Biological Assets
|
56,604
|
8,329
|
n.a.
|
Recoverable Taxes
|
(3,451)
|
(3,690)
|
-6%
|
Derivative Transactions
|
685
|
(2,400)
|
n.a.
|
Other assets
|
(9,012)
|
(3,887)
|
132%
|
Suppliers
|
661
|
3,774
|
-82%
|
Related parties
|
(163)
|
(26)
|
527%
|
Taxes payable
|
7,472
|
3,848
|
94%
|
Income tax and social contribution
|
(4,458)
|
1,758
|
n.a.
|
Labor obligations
|
(6,584)
|
3,488
|
n.a.
|
Advance from customers
|
(3,915)
|
(15,658)
|
-75%
|
Operating Leases
|
(7,531)
|
4,970
|
n.a.
|
Other obligations
|
(34)
|
(211)
|
-84%
|
Net Cash generated by (used in) operating activities
|
48,321
|
(7,507)
|
n.a.
|
CASH FLOW OF INVESTMENT ACTIVITIES
|
|
|
|
Additions to immobilized and intangible
|
(6,975)
|
(5,485)
|
27%
|
Additions to property for investments
|
(3,734)
|
(7,867)
|
-53%
|
Redemption of (investment in) marketable securities
|
353
|
(11,735)
|
n.a.
|
Reduction (increase) of Investment and Participation
|
(2,087)
|
-
|
n.a.
|
Cresca's Joint Venture acquisition
|
24
|
-
|
n.a.
|
Advances for Future Capital Increases
|
-
|
(47)
|
n.a.
|
Receivables from farm sale
|
2,698
|
26,790
|
-90%
|
Net Cash generated by (used in) investment activities
|
(9,721)
|
1,656
|
n.a.
|
CASH FLOW OF FINANCING ACTIVITIES
|
|
|
|
Raising of Loans and financing
|
12,622
|
3,000
|
321%
|
Interest from Loans and Financing
|
(14,931)
|
(357)
|
n.a.
|
Payment of loans and financing
|
(31,906)
|
(34,038)
|
-6%
|
Generated (provided) net cash by financing activities
|
(34,215)
|
(31,395)
|
9%
|
Increase (decrease) in cash and cash equivalents
|
4,385
|
(37,246)
|
n.a.
|
FX Variation in cash and cash equivalents
|
1,449
|
766
|
89%
|
Cash and cash equivalents initial balance
|
106,627
|
104,314
|
2%
|
Cash and cash equivalents final balance
|
112,461
|
67,834
|
66%
|
|
5,834
|
(36,480)
|
n.a.
|
36
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 6, 2019.
|
|
|
By:
|
/s/ Gustavo Javier Lopez
|
|
|
Name:
|
Gustavo Javier Lopez
|
|
|
Title:
|
Administrative Officer and Investor Relations Officer
|
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