Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | BrasilAgro - Brazilian Agricultural Real Estate Co |
Entity Central Index Key | 1,499,849 |
Document Type | 20-F |
Trading Symbol | LND |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity's Reporting Status Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 56,888,916 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,018 |
Consolidated statement of finan
Consolidated statement of financial position - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Current assets | |||
Cash and cash equivalents | R$ 104314 | R$ 43798 | |
Marketable securities | 11,215 | 6,972 | |
Derivative financial instruments | [1] | 28,299 | 4,090 |
Accounts receivable and others | 95,176 | 54,026 | |
Inventories | 69,622 | 22,658 | |
Biological assets | 61,993 | 38,260 | |
Transactions with related parties | 1,660 | 1,298 | |
Total current assets | 372,279 | 171,102 | |
Noncurrent assets | |||
Biological assets | 34,053 | 13,435 | |
Restricted marketable securities | 18,226 | 17,088 | |
Derivative financial instruments | [1] | 4,053 | 1 |
Deferred taxes | 32,742 | 53,780 | |
Accounts receivable and others | 74,775 | 44,605 | |
Investment properties | 557,152 | 389,799 | |
Receivables from related parties | 35,640 | ||
Investments in unquoted equity instruments | 86 | 101,426 | |
Property, plant and equipment | 84,830 | 54,745 | |
Intangible assets | 1,403 | 1,672 | |
Total non-current assets | 807,320 | 712,191 | |
Total assets | 1,179,599 | 883,293 | |
Current liabilities | |||
Trade accounts payable and others | 106,445 | 55,615 | |
Loans, financing, debentures and finance leases | 70,088 | 56,620 | |
Salaries and payroll obligations | 14,300 | 11,513 | |
Derivative financial instruments | [1] | 10,489 | 3,978 |
Payables for purchase of farms | 24,646 | ||
Transactions with related parties | 1,831 | 4,784 | |
Total current liabilities | 203,153 | 157,156 | |
Noncurrent liabilities | |||
Trade accounts payable and others | 11,298 | 1,520 | |
Loans, financing, debentures and finance leases | 205,932 | 55,555 | |
Derivative financial instruments | [1] | 2,145 | |
Provision for legal claims | 1,207 | 1,594 | |
Total non-current liabilities | 220,582 | 58,669 | |
Total liabilities | 423,735 | 215,825 | |
Equity | |||
Capital | 584,224 | 584,224 | |
Capital reserve | 1,997 | 1,525 | |
Treasury shares | (35,208) | (36,797) | |
Income reserves | 164,968 | 68,615 | |
Additional dividends proposed | 6,486 | ||
Other comprehensive income | 39,883 | 43,415 | |
Total equity | 755,864 | 667,468 | |
Total liabilities and equity | R$ 1179599 | R$ 883293 | |
[1] | The Derivative transactions negotiated in an active market in the amount of R$1,275 (R$3,169 at June 30, 2017) are measured at fair value at Level 1, and over-the-counter transactions are measured at Level 2, as presented in the table above. |
Consolidated statement of incom
Consolidated statement of income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Profit or loss [abstract] | |||
Revenue | R$ 244278 | R$ 146911 | R$ 147128 |
Gain on sale of farms | 39,817 | 26,716 | |
Changes in fair value of biological assets and agricultural products | 99,083 | 12,266 | (12,632) |
Adjustment to net realizable value of agricultural products after harvest, net | 883 | (1,655) | 659 |
Cost of sales | (228,319) | (136,362) | (134,714) |
Gross profit | 155,742 | 47,876 | 441 |
Selling expenses | (10,087) | (6,676) | (2,732) |
General and administrative expenses | (34,945) | (30,941) | (28,944) |
Other operating (expenses) income, net | 35,432 | (6,019) | 2,812 |
Share of profit (loss) of a joint venture | 14,671 | (4,425) | (511) |
Operating income (loss) | 160,813 | (185) | (28,934) |
Financial income (expenses) | |||
Financial income | 129,323 | 110,090 | 192,644 |
Financial expenses | (137,879) | (76,646) | (154,270) |
Profit before income and social contribution taxes | 152,257 | 33,259 | 9,440 |
Income and social contribution taxes | (25,919) | (5,949) | (1,451) |
Net profit for the year | R$ 126338 | R$ 27310 | R$ 7989 |
Basic earnings per share-in reais | R$ 2.3505 | R$ 0.4771 | R$ 0.1372 |
Diluted earnings per share-in reais | R$ 2.3477 | R$ 0.4742 | R$ 0.1364 |
Consolidated statement of other
Consolidated statement of other comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of comprehensive income [abstract] | |||
Net profit for the year | R$ 126338 | R$ 27310 | R$ 7989 |
Other comprehensive income to be reclassified to profit or loss for the year in subsequent periods: | |||
Currency translation adjustment of foreign operations | 27,084 | 3,410 | 3,737 |
Currency translation adjustment of joint venture spin-off | (30,616) | ||
Total comprehensive income for the year | R$ 122806 | R$ 30720 | R$ 11726 |
Consolidated statements of chan
Consolidated statements of changes in equity - BRL (R$) R$ in Thousands | Capital [Member] | Capital Reserve [Member] | Treasury Shares [Member] | Legal Reserve [Member] | Reserve for Investment and Expansion [Member] | Additional Dividends Proposed [Member] | Other Comprehensive Income [Member] | Retained Earnings / Accumulated Losses [Member] | Total |
Beginning Balance at Jun. 30, 2015 | R$ 584224 | R$ 2349 | R$ 224 | R$ 8491 | R$ 84721 | R$ 40333 | R$ 36268 | R$ 756162 | |
Changes In Equity [Roll Forward] | |||||||||
Payment of additional dividends | (40,333) | (40,333) | |||||||
Exercise of granted stock | (578) | 2,674 | 2,096 | ||||||
Treasury stock acquired | (39,653) | (39,653) | |||||||
Net profit for the year | 7,989 | 7,989 | |||||||
Constitution of legal reserve | 529 | (529) | |||||||
Minimum mandatory dividends | (2,510) | (2,510) | |||||||
Additional dividends proposed | (2,583) | 7,533 | (4,950) | ||||||
Currency translation adjustment of foreign operation | 3,737 | 3,737 | |||||||
Currency translation adjustment of joint venture spin-off | |||||||||
Ending Balance at Jun. 30, 2016 | 584,224 | 1,771 | (37,203) | 9,020 | 82,138 | 7,533 | 40,005 | 687,488 | |
Changes In Equity [Roll Forward] | |||||||||
Additional dividends proposed | (22,000) | 22,000 | |||||||
Payment of additional dividends | (29,533) | (29,533) | |||||||
Exercise of granted stock | (246) | 1,076 | 830 | ||||||
Cancellation of treasury stock | 14,881 | (14,881) | |||||||
Treasury stock acquired | (15,551) | (15,551) | |||||||
Net profit for the year | 27,310 | 27,310 | |||||||
Constitution of legal reserve | 1,366 | (1,366) | |||||||
Minimum mandatory dividends | (6,486) | (6,486) | |||||||
Additional dividends proposed | 6,486 | (6,486) | |||||||
Constitution of reserve for investment and expansion | 12,972 | (12,972) | |||||||
Currency translation adjustment of foreign operation | 3,410 | 3,410 | |||||||
Currency translation adjustment of joint venture spin-off | |||||||||
Ending Balance at Jun. 30, 2017 | 584,224 | 1,525 | (36,797) | 10,386 | 58,229 | 6,486 | 43,415 | 667,468 | |
Changes In Equity [Roll Forward] | |||||||||
Payment of additional dividends | (6,486) | (6,486) | |||||||
Reversal of expired unpaid dividends | 20 | 20 | |||||||
Share based compensation | 844 | 844 | |||||||
Exercise of granted stock | (372) | 2,199 | 1,827 | ||||||
Treasury stock acquired | (610) | (610) | |||||||
Net profit for the year | 126,338 | 126,338 | |||||||
Constitution of legal reserve | (6,317) | ||||||||
Minimum mandatory dividends | (30,005) | (30,005) | |||||||
Additional dividends proposed | 10,995 | (10,995) | |||||||
Constitution of reserve for investment and expansion | 79,041 | (79,041) | |||||||
Currency translation adjustment of foreign operation | 27,084 | 27,084 | |||||||
Currency translation adjustment of joint venture spin-off | (30,616) | (30,616) | |||||||
Ending Balance at Jun. 30, 2018 | R$ 584224 | R$ 1997 | R$ 35208 | R$ 16703 | R$ 137270 | R$ 10995 | R$ 39883 | R$ 755864 |
Consolidated statements of cash
Consolidated statements of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOW FROM OPERATING ACTIVITIES | |||
Net profit for the year | R$ 126338 | R$ 27310 | R$ 7989 |
Adjustments to reconcile profit for the year | |||
Depreciation and amortization | 23,222 | 15,027 | 21,957 |
Gain from changes in fair value of assets due to spin-off | (5,098) | ||
Gain on sale of farm | (39,817) | (26,716) | |
Currency translation adjustment of joint venture spin-off | (30,616) | ||
Residual value of property, plant and equipment and intangible assets disposed | 433 | 1,896 | 208 |
Write-off of capitalized costs in investment properties | 10,793 | 8,246 | 12 |
Share of profit (loss) of a joint venture | (14,671) | 4,425 | 511 |
Unrealized (gain) loss on derivatives, net | (1,772) | (1,513) | (1,196) |
Unrealized foreign exchange loss (gain), monetary variation and financial charges, net | 12,191 | (8,546) | (23,960) |
Gain on remeasurement of receivable from sale of farms, net | (12,721) | (8,029) | (9,850) |
Share-based incentive plan - ILPA | 844 | ||
Deferred income and social contribution taxes | 21,044 | 1,814 | (14,547) |
Loss (Gain) arising from changes in fair value of biological assets and agricultural products | (99,083) | (12,266) | 12,632 |
Adjustments to net realizable value of agriculutural products | (883) | 1,655 | (659) |
Allowance for doubtful accounts | (133) | (516) | (314) |
Provision (Reversal of provision)for legal claims | (387) | 139 | (2,229) |
Discount on the payment of Alto Taquari farm | (2,277) | ||
Total | (10,316) | 2,926 | (11,723) |
Changes in working capital | |||
Trade accounts receivable | (6,746) | (7,297) | 46,895 |
Inventories | (58,442) | (6,329) | 11,156 |
Biological assets | 60,312 | 5,576 | (19,197) |
Recoverable taxes | 1,943 | 2,754 | (964) |
Derivative financial instruments | (16,982) | 18,996 | (9,686) |
Other receivables | (2,356) | 3,779 | (882) |
Trade accounts payable | 11,178 | 24,996 | 6,544 |
Related parties | (2,338) | 16,714 | (1,127) |
Taxes payable | 1,718 | (2,769) | (10,216) |
Income tax and social contribution | 1,323 | (970) | (7,422) |
Salaries and payroll | 2,787 | 2,657 | (2,359) |
Advances from customers | 15,540 | 5,353 | (7,219) |
Other liabilities | 115 | (1,335) | (240) |
Net cash flows from (used in) operating activities | (2,264) | 65,051 | (6,440) |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Addition to property, plant and equipment and intangible assets | (43,105) | (25,478) | (12,442) |
Addition on investment properties | (23,861) | (119,150) | (10,745) |
Redemption of (Investment in) marketable securities | (4,001) | 125,090 | 172,960 |
Cash received from sales of farms and assets | 5,267 | 6,011 | |
Net cash flows from (used in) investing activities | (65,700) | (13,527) | 149,773 |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Payments of installments of financed acquisition of farm | (15,559) | (27,394) | |
Proceeds from loans, financing and debentures | 270,310 | 39,469 | 71,566 |
Interest paid on loans, financing and debentures | (10,347) | (6,327) | (8,425) |
Payment of loans and financing | (105,408) | (48,308) | (82,270) |
Treasury stock acquired | (610) | (14,721) | (39,653) |
Proceeds from the exercise of granted stock | 2,096 | ||
Dividends paid | (12,972) | (32,043) | (80,669) |
Net cash flows from (used in) financing activities | 125,414 | (61,930) | (164,749) |
Increase (decrease) in cash and cash equivalents | 57,450 | (10,406) | (21,416) |
Effect of exchange rate variation on cash and cash equivalents | 3,066 | ||
Cash and cash equivalents at beginning of year | 43,798 | 54,204 | 75,620 |
Cash and cash equivalents at end of year | 104,314 | 43,798 | 54,204 |
Total cash and cash equivalents | R$ 60516 | R$ 10406 | R$ 21416 |
Operations
Operations | 12 Months Ended |
Jun. 30, 2018 | |
Operations | |
Operations | 1. Operations BrasilAgro Companhia Brasileira de Propriedades Agrícolas (“BrasilAgro”) was incorporated on September 23, 2005 and is headquartered at Avenida Brigadeiro Faria Lima, 1309, in São Paulo with branches in the states of Bahia, Goiás, Mato Grosso, Minas Gerais, Maranhão and Piauí, and in Paraguay, in the state of Boquerón. The Company holds interest in other companies (“subsidiaries), as mentioned in Note 2.1, and its corporate purpose includes: ● agriculture, cattle raising and forestry activities of any type and nature and rendering directly or indirectly related services; ● the import and export of agricultural products and inputs and those related to cattle raising activity; ● the purchase, sale and/or rental of properties, land, buildings and real estate in rural and/or urban areas; ● real estate brokerage involving any type of operations; ● holding interest, as a member, in other companies and commercial ventures of any nature, in Brazil and/or abroad, directly or indirectly, related to the purposes described herein; and ● management of its own and third-party assets. The Company and its subsidiaries (collectively, the “Company”) have ten (10) farms in six (6) Brazilian states and one (1) joint-venture farm in Paraguay, with a total area of 198,158 hectares of own lands and 26,763 hectares of leased lands. 1.1 Spin-off of Joint Venture Cresca S.A. On October 5, 2016, the Company entered into an agreement with Carlos Casado S.A., the sole partner of the Company in the Joint Venture Cresca S.A., each with 50% interest in the share capital, by which the partners undertook to sell to third parties all the assets and liabilities that meet the definition of business or divide them into equivalent parts, including rural properties, within an agreed-upon period. Since the sale to third parties was not consummated within the contractually defined period, the parties agreed on splitting off Cresca’s assets and liabilities. The procedures required for splitting Cresca’s assets and liabilities had to follow a timetable established by the parties, which had to be concluded on the second quarter of 2017. Through June 30, 2017, certain assets, such as cattle and inventories, and agreements (including labor) were divided and transferred to Palmeiras, a wholly-owned subsidiary of the Company located in Paraguay. However, the remaning assets and liabilities, including agricultural properties and financial debts with shareholders, remained under the exclusive ownership and/or responsibility of Cresca. On February 9, 2018, the spin-off of Cresca was concluded; the portion of assets and liabilities attributed to the Company was transferred to the wholly-owned subsidiary Agropecuária Moroti S.A. As a result of this transaction, the Company has the following two subsidiaries that received Cresca’s assets and liabilities: - Palmeiras S.A. (“Palmeiras”) – On December 16, 2016, Palmeiras was incorporated in Asunción, the capital city of Paraguay, with partners Jaborandi Agrícola Ltda. holding 1% of the shares and BrasilAgro holding 99% of the shares. Palmeiras was incorporated with the objective to operate the activities of the Company’s investment in Cresca S.A. (“Cresca”). - Agropecuária Moroti S.A. (“Moroti”) – Subsidiary that received on February 9, 2018, upon conclusion of the formal spin-off process, all other assets and liabilities of Cresca attributed to BrasilAgro, including land and debts. As part of the spin-off, the Company and Carlos Casado, partners in the joint venture, decided to waive the interest for late payment on the intercompany loans taken by Cresca S.A. in the total amount of R$32,962, of which BrasilAgro’s share was R$16,563 (Note 23). After the conclusion of the spin-off, considering that the Company obtained control of the assets and liabilities that were earlier jointly controlled, as required by IFRS 3 – Business Combinations, the assets acquired and liabilities acquired were remeasured at the fair value on the date of acquisition. The estimated fair value of the assets and liabilities transferred to Moroti on February 9, 2018 is shown below: Book value Effect of fair value measurement Fair value Assets 134,446 11,502 145,948 Accounts receivable, inventories and other receivables 4,616 36 4,652 Recoverable taxes 13 (13 ) — Investment properties 129,750 11,202 140,952 Other property and equipment other than land 67 277 344 Liabilities 18,968 6,404 25,372 Trade payables, taxes and other liabilities 254 6,322 6,576 Loans 18,714 82 18,796 Fair value of net spun-off assets 115,478 5,098 120,576 The Company recorded a gain of R$5,098 for the difference between the carrying value of the interest in the jointly controlled investment of R$115,478 and the fair value of the assets and liabilities contributed to Moroti of R$120,576 (Note 22).The fair value of assets and liabilities was determined based on preliminary estimates and concluded on June 30, 2018. No adjustment to the amounts recorded preliminarly was recorded upon conclusion. In addition, the Company reclassified the accumulated currency translation adjustment on the jointly controlled inverstment from comprehensive income to the statement of income for an amount of R$30,616, under “Other Operating income (expenses), net” (Note 22). 1.2. Araucaria Farm On March 27, 2017, the Company sold a 274-hectare area (200 arable hectares) of the Araucária Farm for 1,000 soybean bags per usable hectare or R$12,451. The Company received a down payment of 39,254 soybean bags in the amount of R$2,124 and the balance will be received in four annual installments (Note 7.1.e – Araucária III). On May 22, 2017, the Company sold a 1,360-hectare area (918 hectares of arable land) of the Araucária Farm, for 280 soybean bags per usable hectare or R$16,987 (Note 7.1.e – Araucária IV). The Company received a down payment of 50,148 soybean bags in the amount of R$3,008 and the balance will be received in five annual installments. The accounting impacts on results are shown in Note 19.b. On May 3, 2018, the Company sold a 956 hectares area (660 hectares of arable land) of the Araucária Farm. The area was sold for 1,208 soybean bags per usable hectare or R$66,224 par value. The Company received a down payment of 79,200 soybean bags in the amount of R$5,267, a second installment corresponding to the same number of soybean bags to be received on September 1, 2018 and the balance to be settled in six annual installments (Note 7.1.e – Araucária V). The accounting impact on profit or loss is described in Note 19.b. 1.3 Sale of Cremaq Farm On May 19, 2015, the subsidiary Imobiliária Cremaq Ltda. entered into a purchase and sale agreement for the Cremaq Farm. However, as the contractual condition to obtain a licence for an additional area was still pending, a portion of the gain on sales was not recognized. In March 2017, the Company obtained such licence and recognized a gain on sales as disclosed in Notes 14 and 19.b. At June 30, 2017, the amount of R$49,703 of the selling price received, wich use was restricted, was fully released upon the compliance of all condition precedent related to the original sale agreement. 1.4 Sale of Jatobá Farm At June 30, 2017, the Company completed the sale of a 625-hectare area (500 agricultural hectares) of Jatobá Farm. The area was sold for 300 soybean bags per usable hectare or R$10,145. The Company received a down payment of 15,000 soybean bags in the amount of R$878, a second installment of the same amount on July 30, 2017, and the remaining balance will be settled in four annual installments (Note 7.1.e – Jatobá I). The accounting impacts on results are shown in Note 19.b. 1.5 Acquisition and agricultural partnership in property in Maranhão On February 7, 2017, the Company, through its subsidiary Imobiliária Ceibo, entered into a Purchase Agreement for the acquisition of a property in the city of São Raimundo das Mangabeiras in Maranhão (“São José Farm”), with a total of 17,566 hectares for R$100,000. In addition, the Company incurred additional acquisition costs (due diligence) totaling R$2,733. As a result the total transaction price amounted to R$102,733. This acquisition is classified as an investment property in the financial statements, as disclosed in Note 10. On the same date, the Company entered into an Agricultural Partnership agreement (“Partnership IV”) (Note 26.d), which involves an arable and developed area of 15,000 hectares, most of which is planted with sugarcane. The Agricultural Partnership is for 15 years and may be renewed for the same term. This agreement meets the definition of a finance lease. |
Basis of preparation and presen
Basis of preparation and presentation | 12 Months Ended |
Jun. 30, 2018 | |
Basis Of Preparation And Presentation | |
Basis of preparation and presentation | 2. Basis of preparation and presentation The significant accounting policies applied when preparing these financial statements are described below. These policies are being consistently applied in all years presented, unless otherwise stated. 2.1. Basis of preparation On October 23, 2018, Brasilagro’s Executive Board, Board of Directors and Fiscal Council approved the Company’s consolidated financial statements and authorized their issuance. The consolidated financial statements have been prepared and are presented in accordance with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB). All the references to IFRS in these financial statements correspond to the IFRS as issued by the IASB. The consolidated financial statements have been prepared on the historical cost basis, except where otherwise stated, as described in the summary of significant accounting policies. Management has not identified any significant uncertainty as to the Company’s ability to continue as a going concern in the next 12 months. The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires that Management use judgment in the process of application of the Company’s accounting policies. Those areas requiring a higher level of judgment and with more complexity, as well as the areas in which assumptions and estimates are significant for the financial statements, are disclosed in Note 3. Non-financial data included in these financial statements, such as sales volume, planted and leased area, number of farms, and environment were not examined by the independent auditors. All monetary amounts in these financial statements are presented in thousands of Brazilian reais, except where otherwise stated. Some of the totals presented in these financial statements may not cast due to rounding. Basis of consolidation The consolidated financial statements comprise the financial statements of Brasilagro and its subsidiaries as of June 30, 2018 and 2017, as described bellow: Ownership % 2018 2017 2016 Jaborandi Agrícola Ltda 99.99 99.99 99.99 Imobiliária Jaborandi 99.99 99.99 99.99 Cremaq 99.99 99.99 99.99 Engenho de Maracaju 99.99 99.99 99.99 Araucária 99.99 99.99 99.99 Mogno 99.99 99.99 99.99 Cajueiro 99.99 99.99 99.99 Ceibo 99.99 99.99 99.99 Flamboyant 99.99 99.99 99.99 Palmeiras (a) 99.99 99,99 — Moroti (a) 99.99 — — FIM Guardian Exclusive Fund (b) — 100.00 100.00 (a) Subsidiary incorporaded during the Cresca spin-off process, as per Note 1.1. (b) During the year, the Company extinguisned its exclusive investment fund (FIM Guardian). The subsidiaries are fully consolidated from the date of acquisition and consolidation ceases when the Company loses control. The financial statements of the subsidiaries are prepared for the same reporting period of Brasilagro, using consistent accounting policies. All intergroup balances, revenues and expenses are fully eliminated in the consolidated financial statements. 2.2. Foreign currency translation a) Functional and presentation currency The Company’s functional and presentation currency is the Brazilian Real (R$). The items included in the financial statements of the subsidiaries located in Brazil are measured using Brazilian Reais (R$) as their functional currency. The U.S. Dollar is the functional currency of the joint venture Cresca S.A. (“Cresca”), and subsidiaries Palmeiras S.A. (“Palmeiras”) and Agropecuária Moroti S.A. (“Moroti”), all headquartered in Paraguay. b) Transactions and balances in foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations when items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of operations. c) Foreign operations In the preparation of the consolidated financial statements, the financial statements of Palmeiras, Moroti and Cresca, are translated into reais as follows: a) balance sheet at the exchange rate at year end and b) statement of income and cash flows, at the average exchange rate. The effects from variations in the foreign exchange rate resulting from the translation of foreing operations are presented in “Currency translation adjustment of foreign operations” in the statement of comprehensive income and in the statement of changes in equity. 2.3. Investment in joint venture Our investments in the joint venture Cresca, is recorded under the equity method. A joint venture is an agreement whereby the parties sharing joint control are entitled to the net assets of the joint ventures. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control. 2.4. Cash and cash equivalents and marketable securities Cash and cash equivalents includes cash, bank deposits maturing within 90 days from the transaction date and short-term highly liquid repurchase agreements for which there are no fines or other restrictions for their immediate redemption. Cash equivalents are recorded at cost plus earnings accrued up to the balance sheet dates, not exceeding market or realization value. Marketable securities include the financial investments provided as guarantee for loans and financing recorded in noncurrent assets based on the maturities of referred to loans and financing. Considering the nature of investments held by the Company, there are no significant differences between their book value and the market value. Investments are recorded at the original cost plus earnings accrued through the balance sheet date on a pro-rata temporis basis. Bank deposit certificates and repo transactions may mature in a term exceeding 90 days, and may have repurchase guarantee contractually provided by the issuer of the security, allowing the redemption of the securities at their original amount invested plus interest, with no penalty. These investments are classified as cash equivalents. Investments in deposit certificates that are not eligible for redemption without penalties are classified as marketable securities. Certain debt agreements require the Company to keep marketable securities as a guarantee for the outstanding balances. Such investments are restricted while held in guarantee. The Company discloses the purchases and sales of such investments as investment activities in the statement of cash flows. Fixed-income investments are intended to maintain the value of the resources held by the Company and not yet allocated to rural activities, and are governed by a policy approved by the Board of Directors. The statement of cash flows in relation to financing and investment activities, include only transactions that have actually impacted cash and cash equivalents. 2.5. Financial instruments 2.5.1. Classification and measurement The Company classifies its financial assets and liabilities in the following classes: measured at fair value through profit or loss, loans and receivables and available for sale. a) Financial assets and liabilities measured at fair value through profit or loss Financial assets and liabilities at fair value through profit or loss comprise financial assets held for trading and financial assets and liabilities designated upon initial recognition at fair value through profit or loss. A financial asset is classified as held for trading if: (i) acquired principally for the purpose of selling in the near term (ii) it is a derivative (unless designated as effective hedging instruments) or, (iii) the measurement at fair value reduces or eliminates inconsistences with the measument used by the Company’s financial management. The Company designates at initial recognition, certain financial assets at fair value through profit or loss. This designation cannot be changed later. These assets are limited to restricted marketable securities, derivatives and receivables from the sale of farms, which are included in the Consolidated statement of financial position in “Trade accounts receivable”. Changes in fair value related to receivable from the sale of farms designated at fair value through profit or loss are recognized in “Gain (loss) on remeasurement of receivables from the sale of farms” in “financial income and expenses” (Note 23). b) Loans and receivables The category includes loans granted and receivables which are non-derivative financial assets with fixed or determinable payments, not quoted in an active market. They are included in current assets, except for those with maturities exceeding 12 months after the balance sheet date, which are classified as non-current assets. The Company’s loans and receivables is comprised of trade receivables, other receivables, and marketable securities given in guarantee on loans and financing and transaction with related parties. Loans and receivables are recorded at amortized cost, using the effective interest rate method. Interest income is included in the caption financial income in the statement of operations. c) Available for sale financial assets Available for sale financial assets are those non-derivative instruments which are not classified as (a) loans and receivables, (b) investments held to maturity (c) financial assets at fair value through profit or loss. These financial assets include equity instruments and debt securities. Debt securities in this category are those intended to be held for an indefinite period and which may be sold to meet liquidity needs or as response to the changes in market conditions. After initial recognition, available-for-sale financial assets are measured at fair value, with unrealized gains and losses directly recognized in the available-for-sale reserve in other comprehensive income until the investment is derecognized. Impairment losses, interest income and gains or losses on foreign exchange on monetary assets are recognized in profit or loss for the year. When the investment is derecognized or when there is an impairment loss, the cumulative gains or losses previously recognized in other comprehensive income (loss) shall be recognized in profit or loss for the year. d) Financial liabilities at amortized cost The Company recognizes bonds issued and subordinated liabilities initially on the date when they are originated. Financial liabilities are initially recognized at fair value plus transaction costs. After initial recognition, these financial liabilities are measured at amortized cost through the effective interest rate method. The amortization of the effective interest rate method is included in the financial expenses caption in the statement of income. The Company’s financial liabilities mainly include trade accounts payable, loans and financing, debentures, financial leases and accounts payable from acquisitions of farms. 2.5.2. Recognition Regular purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Investments are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are written-off when the rights to receive cash flow from investments have expired or have been transferred; in the latter case, provided the Company has transferred, significantly, all risks and benefits of ownership. 2.5.3 Impairment of financial assets The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are recognized only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”), that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets and it can be reliably estimated. The criteria that the Company uses to determine if there is objective evidence of an impairment loss include: (i) significant financial difficulty of the issuer or debtor; (ii) a breach of contract, such as a default or delinquency in interest or principal payments; (iii) the Company, for economic or legal reasons relating to the borrower’s financial difficulty, grants to the borrower a concession that the lender would not otherwise consider; (iv) it becomes probable that the borrower will go bankrupt or undergo any other financial reorganization; (v) the disappearance of an active market for that financial asset because of financial difficulties; or (vi) observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot be yet identified with the individual financial assets in the portfolio, including: ● adverse changes in the payment status of borrowers in the portfolio; and ● national or local economic conditions that correlate to defaults on the assets in the portfolio. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognized in the statement of operations. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Company may measure impairment based on an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in the statement of operations. 2.6. Derivative financial instruments Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument. Although the Company uses derivative financial instruments for economic hedge purposes, it has not applied hedge accounting. Any gains or losses arising from changes in the fair value of derivatives during the year are recognized immediately in the statement of income (Note 23). The fair value of derivative financial instruments is disclosed in Note 6. 2.7. Trade receivables Trade receivables are amounts due from customers for merchandise and farms sold in the ordinary course of business. If collection is expected in one year or less, trade receivables are classified as current assets, otherwise, they are presented as non-current assets. Trade receivables not related to the sale of farms are initially recognized at fair value, and subsequently, measured at amortized cost under the effective interest rate method, less an allowance for doubtful accounts, as appropriate. Trade receivables related to the sale of farms for which the amount of cash receivable is contractually determined in Reais, equivalent to a quantity of soybean bags, are designated at fair value through profit or loss upon initial recognition. The amount of the receivable is subsequently remeasured at each balance sheet date by applying to the contractual committeed quantity of sacks of soybean by the quotation of soybean for future delivery at the maturity date of each installment (or based on estimates and quotations of brokers when there is no quotation of soybean for future delivery on a specific maturity date) and by translating the resulting U.S. dollars amount to Reais using the U.S. dollar exchange rate for future delivery on the same maturity date (considering that future soybean quotations are denominated in US$) and finally discounting the resulting amount to present value. The gain (loss) on remeasurement of the receivable is recognized in Financial income and expenses under “Gain (loss) on remeasurement of receivables from sale of farms” (Note 23). 2.8. Inventories Agricultural products from biological assets are measured at fair value when they are ready to be harvested, less selling expenses, when they are reclassified from biological assets to inventories. Seeds, manures, fertilizers, pesticides, fuel, lubricants, warehouse and sundry materials are measured at average acquisition cost. Upon identification of the loss of quality of products which affect their sales (either due to storage, load, transportation and other events related to the operation), these products are counted and physically segregated.In addition, an internal process to record, approve, dispose of or allocate inventories, is initiated through the approval of the responsible officers duly formalized in the Company’s management system. An adjustment to net realizable value of agricultural products is recognized when the fair value recorded in inventories is higher than the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs to sell. Adjustments to net realizable value are recognized in the statement of income in “Adjustment to net realizable value of agricultural products after harvest”. 2.9. Biological assets The Company’s and its subsidiaries’ biological assets consist mainly of the cultivation of soybean, corn, sorghum, sugarcane and beef cattle, which are measured at fair value less costs to sell. (a) Agricultural activity The fair value of biological assets is determined upon their initial recognition and at each subsequent balance sheet date. Gains and losses arising from the changes in fair value of biological assets is determined as the difference between fair value and the costs incurred in the plantation and treatment of crops of biological assets and agricultural products at the balance sheet date, and are recorded in the statement of income in “Changes in fair value of biological assets”. In certain circumstances, the estimated fair value less cost to sell approximate cost incurred at that moment, especially when only a minor biological transformation has taken place or when no material impact is expected from that biological transformation on the price. Biological assets continue to be recorded at their fair value. The sugarcane crops productive cycle is five years on average, and for a new cycle to start depends on the completion of the previous cycle. In this regard, the current cycle is classified as biological asset in current assets, and the amount of the constitution of the bearer plant (bearer of the other cycles) are classified as permanent culture in property, plant and equipment . The calculation methodology used to estimate the fair value of the biological asset “sugarcane” was the discounted cash flows at a rate reflecting the risks and the terms of the operation. As such, the Company projected the future cash flows in accordance with the projected productivity cycle, taking into consideration the estimated useful life of each area, the prices of Total Sugar Recoverable (“ATR”), estimated productivity and the related estimated costs of production, including the cost of land, harvest, loading and transportation for each hectare planted. The soybean, corn and sorghum are temporary cultures, in which the agricultural product is harvested after a period of time spanning from 110 to 180 days after the planting date, depending on the cultivation, variety, geographic location and climate conditions. The calculation methodology used to estimate the fair value of the grains was the discounted cash flows at a rate reflecting the risk and terms of operations. As such, we projected the future cash flows taking into consideration the estimated productivity, costs to be incurred based on the Company’s budget or on new internal estimates and market prices. The commodities’prices available in futures markets, were obtained from quotes on the following boards of trade: CBOT (“Chicago Board of Trade”), B3 (Bolsa, Brasil, Balcão), and NYBOT (“New York Board of Trade”). For the agricultural products not quoted in these of markets, we used the prices obtained through direct market surveys or disclosed by specialized companies. We considered the related logistic expenses and tax discounts in order to arrive at the prices of each of these products in each production unit of the Company. As mentioned above, the fair value of the biological assets disclosed in the balance sheet was determined using valuation techniques – the discounted cash flows method. The data used in these methods is based on the information observed in the market, whenever possible, and if unavailable, a certain level of judgment is required to establish such fair value. Judgment is used to determine the data to be used, e.g. price, productivity and production cost. Changes in the assumptions on these inputs might affect the fair value of biological assets. There were no changes in the valuation methodology used to estimate the fair value of the biological assets. (b) Cattle raising activity On June 14, 2016, the Company started raising cattle, which typically consists of producing and selling beef calves after weaning, which characterizes the activity as breeding. For segregation purposes, when applicable, the Company classifies its cattle herd into: cattle (current assets), which can be sold as a biological asset for meat production; and breeding cattle (non-current assets), which is used in farm operations to generate other biological assets. Up to the reporting date the Company only had cattle, which includes calves, heifers, cows and bulls. The fair value of beef cattle is determined based on market prices, given the existence of an active market. Gain or loss from changes in the fair value of beef cattle is recognized in profit or loss for the period (Note 9). The Company considered the prices in the cattle market in Bahia state, considered the principal market, and the metrics used in the market. Accordingly, beef and breeding cattle are measured based on weight and the age bracket of animals. 2.10. Investment properties The Company’s business strategy aims mainly at the acquisition, development, exploration and sale of rural properties where agricultural activities can be developed. The Company acquires rural properties believed to have significant potential of appreciation in value by means of maintenance of assets and development of profitable agricultural activities. By acquiring rural properties, the Company seeks to implement higher value added crops and transform these rural properties with investments in infrastructure and technology, in addition to entering into lease contracts with third parties. Based on this strategy, whenever the Company considers that its rural properties are profitable, it sells these rural properties to realize capital gains. The land of rural properties purchased by the Company is measured at acquisition cost, which does not exceed its net realizable value, and is presented in “Non-current assets”. The fair value of each property is disclosed in Note 10. Buildings, improvements and opening of areas in investment properties are measured at historical cost, less accumulated depreciation, following the same criteria described for property, plant and equipment in Note 2.11. 2.11. Property, plant and equipment Property, plant and equipment is measured at historical cost less accumulated depreciation. Historical cost includes expenditures directly attributable to the acquisition of the items. Historical cost also includes borrowing costs related to the acquisition of qualifying assets. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured. All other repair and maintenance costs are recognized in profit or loss, as incurred. Depreciation is calculated using the straight-line method over their estimated useful lives, at the depreciation rates described below: Annual depreciation rates % Buildings and improvements 2-20 Equipment and facilities 10 Vehicles and agricultural machinery 13-20 Furniture and fixtures 10 Opening of areas 10-20 Permanent cultures 16-27 The residual amount and useful lives of property, plant and equipment are revised and adjusted, if appropriate, at the end of each year. An asset carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount exceeds its estimated recoverable amount. Gains and losses on disposals are determined by comparing the sale price with the carrying amount and are recognized in “Other operating income (expenses), net” in the statement of income. 2.12. Intangible assets Intangible assets includes software license and acquired contractual rights and are amortized over their estimated useful life of 5 years. Costs associated with software maintenance are recognized as an expense as incurred. The Company has no intangible assets with indefinite useful life. 2.13. Impairment of non-financial assets Pursuant to IAS 36 – Impairment of Assets, assets with finite useful lives are reviewed for impairment indicators on each balance sheet date and whenever events or changes in circumstances indicate that the book value may not be recoverable. If any indication exists, the assets are tested for impairment. An impairment loss is recognized for the difference between the asset’s carrying amount and its recoverable amount. On June 30, 2018 and 2017, no indication of impairment of assets was identified. 2.14. Trade accounts payables Trade account payables are obligations to pay for goods or services acquired from suppliers in the ordinary course of business. Trade accounts payables are classified as current liabilities if payment is due within one year or less, otherwise they are classified as non-current liabilities. 2.15. Loans, financing and debentures Loans, financing and debentures are recognized initially at fair value, net of transaction costs incurred, and subsequently carried at amortized cost. Any difference between the procceds (net of transaction costs) and the settlement value is recognized in the statement of income over the agreement period using the effective interest rate method. Fees paid in raising credit facilities are recognized as transaction costs to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquididation services and amortized over the period of the facility to which it relates. Loans, financing and debentures are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months or longer after the balance sheet date. 2.16. Provisions Provisions are recognized when the Company has a present, legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Contingent liabilities arising from labor, social security, tax, environmental, contractual, operating obligations and administrative and judicial claims are recorded at their estimated amount when the likelihood of loss in considered probable (Note 3.a). 2.17. Current and deferred income tax and social contribution (a) Current income tax and social contribution Current income tax and social contribution are calculated applying a rate of 15%, plus surtax of 10% on taxable profit exceeding R$240 per annum for income tax, and 9% on taxable profit for social contribution on net profit. Income tax and social contribution loss carryforwards can be used to offset the payment of income tax and social contribution tax payable limited to 30% of annual taxable profit, except for the rural activity which may reach 100% of annual taxable profit. Tax loss carryforwards do not expire. As allowed by the Brazilian tax legislation, certain subsidiaries opted for a tax regime under which taxable profit is computed as a percentage of revenues. Under this regime, taxable profit for income and social contribution tax is calculated by applying a rate of 8% and 12% on gross revenue, respectively, on which the statutory rates for income and social contribution tax are applied. (b) Deferred income tax and social contribution Deferred income taxes are recognized for temporary differences between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. A deferred income tax liability is recognized for all the temporary differences, whereas deferred income tax assets are only recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized, including the recognition of a deferred tax asset related to unused tax loss carryforwards. Deferred tax assets and liabilities are classified as non-current. Income tax related to items directly recognized in equity are also recognized in equity. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year whae the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Suh rates are 25% for income tax and 9% for social contribution tax (Notes 16). 2.18. Employee benefits a) Share-based payments The Company operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options and shares) of the Company. The cost of transactions settled with shares is recognized as expense for the year, jointly with a corresponding increase in equity during the year in which the conditions of performance and/or provision of services are met. The accumulated expenses recognized in connection with the equity instruments on each base date, until the date of acquisition, reflect the extent to which the acquisition period has expired and the best estimate of the Company and its subsidiaries as to the number of equity instruments to be acquired. The expense or reversal of expenses for each year represents the changes in accumulated expenses recognized in the beginning and end of the year. Expenses related to services that did not complete their acquisition period are not recognized, except for transactions settled with shares in which the acquisition depends on a market condition or on the non-acquisition of rights, which are treated as acquired, irrespective of whether the market condition or the condition of non-acquisition of rights is fulfilled or not, provided that all other conditions of performance and/or provision of services are met. When an equity instrument is modified, the minimum expense recognized is the expense that would have been incurred if the terms had not been modified. An additional expense is recognized in case of modification that raises the total fair value of the transaction paid for with shares or that otherwise benefits the employee, as measured on the date of modification. If an equity instrument is canceled, such instrument is treated as if it was fully acquired on the date of cancellation, and any expenses not yet recognized, relating to the premium, are recognized immediately in the profit or loss of the year. This includes any premium whose non-acquisition conditions under the control of the Company or the employee are not met. However, if the canceled plan is replaced by a new plan and substitute grants are generated, on the date it is granted, the canceled grant and the new plan will be treated |
Significant accounting estimate
Significant accounting estimates and judgments | 12 Months Ended |
Jun. 30, 2018 | |
Significant Accounting Estimates And Judgments | |
Significant accounting estimates and judgments | 3. Significant accounting estimates and judgments Accounting estimates and judgments are continuously assessed and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. Based on the assumptions, the Company concerning its future. The resulting accounting estimates will, by definition, seldom equal the related actual amounts. The estimates and assumptions that have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next year are as follows: a) Contingencies The Company is party to different legal and administrative proceedings, as described in Note 25. Provisions are set up for all the contingencies related to legal claims that are estimated to represent probable losses (present obligations resulting from past events in which an outflow of resources is probable, and amounts can be reliably estimated). The evaluation of the likelihood of loss includes the opinion of outside legal advisors. b) Biological assets The fair value of biological assets recorded in the balance sheet (Note 9) was determined using valuation techniques, including the discounted cash flows method. The inputs for these estimates are based on those observable in the market, whenever possible, and when such inputs are not available, a certain level of judgment is required to estimate the fair value. Judgment includes considerations on data e.g. price, productivity, crop cost and production cost. Changes in the assumptions on these factors might affect the fair value recognized for biological assets. An increase or decrease by 1% in the expected productivity of sugarcane and grains would result in an increase or decrease in biological asset by R$1,117, and an increase or decrease by 1% in the price of sugarcane and grains would result in an increase or decrease in biological asset by R$1,623. With regard to cattle, the Company values its breeding stock at fair value based on market price for the region. c) Investment properties The fair value of investment properties was determined through an appraisal prepared by the Company. The appraisal was performed by means of standards adopted in the market considering the characteristics, location, type of soil, climate of the region, calculation of improvements, presentation of the elements and calculation of the land value, which may differ based on these variables. Methodology used At June 30, 2018, investment properties were valued by applying the comparative analysis methodology adjusted by its related features: i) The valuation relied, among other aspects, on the following information: (i) location of farms, (ii) total area and its related percentages of opening and use; ii) The market value presented for the farm corresponds to the portion of bare land, for payment in cash, not including machinery, equipment, agricultural inputs, cultivation. The soil adjustment factor (preparation of land for planting) was considered in the assessment of prices; iii) The value of land for agriculture in the surveyed region, is referenced to the price of soybean bag. The unit amounts of the farms for sale (market researches) were obtained in soybean bags per hectare. Accordingly, the amount in reais (R$) of the property varies directly due to the variation in the soybean price; and iv) The soybean price considered at the base date of the work, June 30, 2018, was R$58.91 (West Region – Bahia), R$59.78 (Balsas Region – Maranhão), R$57.18 (Alto Taquari Region – Mato Grosso) and R$57.18 (Mineiros Region – Goiás). This amount represents an average in amounts arbitrated by the real estate market of the region due to the great instability in the amount of soybean bag. There were no changes in the valuation methodology used to estimate the fair value of the investment properties. d) Deferred income tax The Company recognizes deferred income tax assets and liabilities, as described in Note 16, on the temporary differences between the carrying amount and the tax basis of assets and liabilities using statutory rates. The Company regularly assesses if the deferred income tax assets recognized are recoverable, considering the taxable profit generated in the past as well as the expected future taxable profit, in accordance with a technical feasibility study performed by the Company. |
Financial risk management
Financial risk management | 12 Months Ended |
Jun. 30, 2018 | |
Financial Risk Management | |
Financial risk management | 4. Financial risk management 4.1. Financial risk factors The Company operates with various financial instruments, including cash and cash equivalents, marketable securities, trade accounts receivables, accounts receivable and others, trade accounts payable, accounts payable for the purchase of farms, loans and financing and derivative instruments. Certain Company’s operations expose it to market risks, mainly in relation to exchange rates, interest rates and changes in the prices of agricultural commodities. As a result, the Company also enters into derivative financial instruments, used to hedge its exposures with respect to crops or with respect to assets and liabilities recognized in the balance sheet, depending on the nature of the specific operation. Excluding derivative financial instruments, fair value is basically determined using the discounted cash flow method. The amounts recorded under current assets and liabilities are either highly liquid or mature within twelve months, as such their carrying value approximates their fair value. 4.2. Policies approved by the Board of Directors for the use of financial instruments, including derivatives The Company’s policies in respect to transactions with financial instruments, which have been approved by the Board of Directors, are as follows: (i) Investment Policy which provides guidelines in respect to Company’s investment of cash, considering the counterparty risk, the nature of instruments and liquidity, among others; (ii) Derivative financial instrument policy which provides guidelines to manage the Company’s exposures to currency risk, interest rate and index risks, and agricultural commodities price risk, always linking the derivative financial instrument to the asset or liability that generates the exposure; and (iii) Risk Policy, which addresses items not covered by the Investment Policy or the Derivative financial instrument Policy including hedge against future cash flows with respect to future production of commodities. a) Cash and cash equivalents, marketable securities, trade accounts receivable, receivable from sale of farms, loans with related parties and accounts payable. The amounts recorded approximate their estimated fair value. b) Loans, financing and debentures. The book value of loans, financing and debentures, denominated in reais have its interest rates either fixed or based on the variation of TJLP (Long Term Interest Rate), SELIC (Special System of Clearance and Custody Rate) and exchange rate and approximates their fair value. The Executive Officers report the transactions entered into at the Board of Directors’ meetings. 4.3. Analysis of exposure to financial asset and liability risks a) Currency risk This risk arises from the possibility that the Company may incur losses due to fluctuations in exchange rates, which reduces the nominal amount of assets or increase the amount of liabilities. This risk also arises with respect to commitments to sell products existing in inventories or agricultural products not yet harvested when sales are made at prices to be fixed at a future date, prices which vary depending on the exchange rate. b) Interest rate and indices risk This risk arises from the possibility that the Company may incur losses due to fluctuations in the interest rates or indices which increase financial expenses related to certain contracts for the acquisition of farms, indexed by inflation, such as the IGP-M rate (“FGV”). c) Agricutural commodities price risk This risk arises from the possibility that the Company may incur losses due to fluctuations in the market prices of agricultural products. 4.4. Objectives and strategies of risk management and of use of derivative instruments The Executive Board is responsible for managing financial risks, and evaluates the Company’s exposure to foreign currency risk, interest rate and index risk and agricultural commodities price risk with respect to assets, liabilities and transactions of the Company. Considering the exposure to such risks, Company management evaluates the convenience, cost and availability in the market of derivative financial instruments which allow the Company to mitigate such risks. After such assessment, the Executive Board decides whether to enter into derivative financial instruments within the parameters previously approved in the Policies referred to above, and reports it in the Board of Directors’ meetings. 4.5. Risks related to operating strategy The use of derivative instruments as an economic hedge reduce the risks of changes in cash flows arising from risks such as foreign currency, interest rate and price index and agricultural commodities prices, currently soybean and corn. However the change in the fair value of the derivative financial instrument may differ from the change in the cash flows or fair value of the assets, liabilities or forecasted transactions which are being hedged, as a result of different factors, such as, among others, differences between the contract dates, the maturity and settlement dates, or differences in “spreads” on the financial assets and liabilities being hedged and the corresponding spreads in the related legs of the swaps. In the case of the derivative financial instruments strategy to hedge recognized assets and liabilities, management believes that the derivative financial instruments present a high degree of protection with respect to the changes in the assets and liabilities being hedged. In the case of the strategy to hedge forecasted sales of soybean or to hedge accounts payable/receivable, which are susceptible to changes commodity prices, differences may arise due to additional factors, such as differences between the estimated and actual soybean volume to be harvested, or differences between the quoted price of soybean in the international markets where the derivative financial instruments are quoted and the price of soybean in the markets in which soybean is physically delivered/received by the Company. Should the soybean volume effectively harvested be lower than the amount for which derivative financial instruments were contracted, the Company will be exposed to variations in the price of the commodities by the volume hedged in excess and vice-versa should the soybean volume effectively harvested be higher than the hedged volume. To the extent that the Company does not set the selling price of soybean through derivative financial instruments, but rather it establishes a range of selling prices through options, the quantity of US dollars to be received from the sale of soybean to customers and from the settlement of the options is a range of amounts. Should the notional amount of futures to sell US dollars entered into be lower than the actual amount of US dollars received, the Company will be exposed to changes in the exchange rate between the U.S. dollar and the Brazilian real for the amount hedged in excess and vice-versa should the notional amount of futures to sell US dollars entered into be higher than the actual amount of U.S. dollars received. 4.6. Controls over the use of derivative financial instruments Additionally, the Company is subject to credit risk with respect to the counterparty of the derivative financial instrument. The Company has contracted derivative financial instruments either traded in on stock exchanges or from prime first-tier financial institutions or “trading” companies. The Company understands that, at the balance sheet date, there are no indications of collectability risk with respect to the amounts recognized as assets with respect to derivative financial instruments. The main controls established on the use of derivative financial instruments are as follows: ● establishment of policies defined by the Board of Directors; ● prohibition to enter into derivative financial instruments that have not been approved by the Executive Officers; ● maintenance by the Executive Officers of a centralized inventory of outstanding derivative financial instruments contracts; ● daily risk report with the consolidated position provided to a group comprising the Executive Officers and designated members of the Board of Directors; ● monthly monitoring by the Executive Officers of the fair values as reported by the counterparties as compared to the amounts estimated by management; and ● the fair value of the derivative financial instruments is estimated based on the market in which they were contracted and also in which the instruments are inserted. 4.7. Impact of derivative instruments on the statement of operation The gains and losses for changes in the fair value of derivative financial instruments are recognized in the statement of income separately between realized profit and loss (corresponding to derivative financial instruments that have already been settled) and unrealized profit and loss (corresponding to derivative financial instruments not yet settled). 4.8. Estimate of fair value of derivative financial instruments The fair value of derivative financial instruments traded on stock exchanges (B3 and Chicago Board of Trade) is determined based on the quoted prices at the balance sheet date. To estimate the fair value of derivative financial instruments not traded on stock exchanges the Company uses quotes for similar instruments or information available in the market and uses valuation methodologies widely used and that are also used by the counterparties. The estimates do not necessarily guarantee that such operations may be settled at the estimated amounts. The use of different market information and/or valuation methodologies may have a relevant effect on the amount of the estimated fair value. Specific methodologies used for derivative financial instruments entered into by the Company: ● Derivative financial instruments of agricultural commodities - The fair value is obtained by using various market sources, including quotes provided by international brokers, international banks and available on the Chicago Board of Trade (CBOT). ● Derivative financial instruments of foreign currencies - The fair value is determined based on information obtained from various market sources including, as appropriate, B3 S.A. – Brasil, Bolsa, Balcão, local banks, in addition to information sent by the operation counterparty. a) Sensitivity analysis Management identified for each type of derivative financial instrument the conditions for variation in foreign exchange rates, interest rates or commodities prices which may generate loss on assets and/or liabilities which is being hedged or, in the case of derivative financial instruments related to transactions not recorded in the balance sheet, in the fair value of the contracted derivatives. The sensitivity analysis aims at measuring the impact from the changes in the market variables on the aforementioned financial instruments of the Company, considering all other market indicators comprised. Upon their settlement, such amounts may differ from those stated below, due to the estimates used in their preparation. This analysis contemplates 5 distinct scenarios that differ due to the intensity of variation in relation to the current market. At June 30, 2018, as reference for probable scenarios I, II, III and IV, a variation in relation to the current market of 0%, -25%, -50%, +25%, +50%, respectively, was considered. The preparation of the probable scenario took into consideration the market prices of each one of the reference assets of derivative instruments held by the Company at year end. Since all these assets are inserted in competitive and open markets, the current market price is a satisfactory reference for the expected price of these assets. Accordingly, since the current market price was the reference for the calculation of both book value of derivatives and the Probable Scenario, the result of the latter one is the same, because the rates and prices of each operation maturity were used. The assumptions and scenarios are as follows: 2018 Devaluation in reais R$ Appreciation in reais R$ Probable scenario Scenario I -25% Scenario II -50% Scenario III +25% Scenario IV +50% Soybean - R$ / bag – July 12, 2018 (CBOT) 74.81 56.11 37.41 93.51 112.22 Soybean - R$ / bag – July 13, 2018 (CBOT) 72.98 54.74 36.49 91.23 109.47 Soybean - R$ / bag – July 27, 2018 (CBOT) 73.89 55.42 36.95 92.36 110.84 Soybean - R$ / bag – October 26, 2018 (CBOT) 74.81 56.11 37.41 93.51 112.22 Ethanol - R$ / mˆ3 – July 31, 2018 (BM&F) 1,610.00 1,207.50 805.00 2,012.50 2,415.00 Ethanol - R$ / mˆ3 – August 31, 2018 (BM&F) 1,680.00 1,260.00 840.00 2,100.00 2,520.00 Ethanol - R$ / mˆ3 – September 28, 2018 (BM&F) 1,705.00 1,278.75 852.50 2,131.25 2,557.50 U.S. dollar – October 26, 2018 3.92 2.94 1.96 4.90 5.88 Interest (% rate) – July 2, 2018 6.41 % 4.81 % 3.21 % 8.01 % 9.62 % Interest (% rate) – August 27, 2018 6.51 % 4.88 % 3.26 % 8.14 % 9.77 % Interest (% rate) – May 10, 2019 7.53 % 5.65 % 3.77 % 9.41 % 11.30 % Interest (% rate) – August 15, 2023 11.09 % 8.32 % 5.55 % 13.86 % 16.64 % 2017 Devaluation in reais R$ Appreciation in reais R$ Probable scenario Scenario I -25% Scenario II -50% Scenario III +25% Scenario IV +50% Soybean - R$ / bag – July 2017 (CBOT) 68.72 51.54 34.36 85.90 103.08 Cattle - R$ / – October 2017 (BMF) 124.58 93.44 62.29 155.73 186.87 Soybean - R$ / bag – November 2017 (CBOT) 69.64 52.23 34.82 87.05 104.46 Soybean - R$ / bag – April 2018 (CBOT) 3.60 2.70 1.80 4.50 5.40 Soybean - R$ / bag – June 2018 (CBOT) 4.44 3.33 2.22 5.55 6.66 Soybean - R$ / bag – July 2018 (CBOT) 71.31 53.48 35.66 89.14 106.97 U.S. dollar – August 3, 2017 3.33 2.50 1.67 4.16 5.00 U.S. dollar – July 28, 2017 3.33 2.50 1.67 4.16 5.00 U.S. dollar – May 30, 2018 3.49 2.62 1.75 4.36 5.24 This sensitivity analysis aims to measure the impact of variable market changes on the aforementioned financial instruments of the Company, considering all other market indicators remain unchanged. Estimated amounts below can significantly differ from amount eventually settled. In addition, the Company presents a summary of possible scenarios for the following 12 months of the Company’s financial instruments. Reliable sources of index disclosure were used for the rates used in the “probable scenario”. Scenario I - Possible Scenario II - Remote Scenario I - Possible Scenario II – Remote (*) Annual average rates At June 30, 2018 Scenario I - Probable Decrease 25% Decrease 50% Increase 25% Increase 50% Operation Risk Balance (R$) Notional Rate Balance (R$) Rate Balance (R$) Rate Balance (R$) Rate Balance (R$) Rate Balance (R$) Rate Investment CDI 81,213 — 6.39 % (983 ) 7.60 % (1,543 ) 5.70 % (3,086 ) 3.80 % 1,543 9.50 % 3,086 11.40 % Marketable securities - LFT SELIC 10,086 — 6.40 % (122 ) 7.61 % (193 ) 5.71 % (383 ) 3.81 % 193 9.51 % 383 11.42 % Marketable securities - USD CDI 19,355 — 6.39 % (234 ) 7.60 % (368 ) 5.70 % (735 ) 3.80 % 368 9.50 % 735 11.40 % Investment USD 22,700 3,079 3.86 (416 ) 3.99 (3,072 ) 2.99 (6,145 ) 2.00 3,072 4.99 6,145 5.99 Total cash, cash equivalents 133,354 3,079 (1,755 ) (5,176 ) (10,349 ) 5,176 10,349 Financing for Working Capital USD (486 ) (126 ) 3.86 (66 ) 3.99 485 2.99 970 2.00 (485 ) 4.99 (970 ) 5.99 Financing for Working Capital CDI (141,642 ) — 6.39 % (1,714 ) 7.60 % 2,691 5.70 % 5,382 3.80 % (2,691 ) 9.50 % (5,382 ) 11.40 % Financing for Machinery and Equipment – FINAME TJLP (1,317 ) — 6.60 % — 6.60 % 22 4.95 % 43 3.30 % (22 ) 8.25 % (43 ) 9.90 % Financing for sugarcane TJLP (11,893 ) — 6.60 % — 6.60 % 196 4.95 % 392 3.30 % (196 ) 8.25 % (392 ) 9.90 % Total financing (b) (155,338 ) (126 ) (1,780 ) 3,394 6,787 (3,394 ) (6,787 ) Araucária Farma III Soybean bags 8,527 121,692 80.60 — 80.60 (2,132 ) 60.45 (4,264 ) 40.30 2,132 100.75 4,264 120.89 Araucária Farm IV Soybean bags 9,017 129,499 86.08 — 86.08 (2,254 ) 64.56 (4,509 ) 43.04 2,254 107.60 4,509 129.12 Araucária Farm V Soybean bags 50,594 717,840 93.27 — 93.27 (12,649 ) 69.96 (25,297 ) 46.64 12,649 116.59 25,297 139.91 Jatobá Farm Gleba 12A Soybean bags 8,657 120,000 88.14 — 88.14 (2,164 ) 66.10 (4,329 ) 44.07 2,164 110.17 4,329 132.21 Total receivables from farms 76,795 1,089,031 — — (19,199 ) (38,399 ) 19,199 38,399 Derivative, net Grains 805 (1,819,921 ) (a) — (a) 12,365 (a) 23,068 (a) (9,041 ) (a) (19,744 ) (a) Derivative, net USD (2,079 ) (35,800 ) (a) — (a) 28,857 (a) 58,799 (a) (31,027 ) (a) (60,970 ) (a) Derivative, net Ethanol 216 (2,100 ) (a) — (a) 1,105 (a) 1,997 (a) (675 ) (a) (1,566 ) (a) Derivative, net Swap (14 ) 64,810 (a) — (a) 331 (a) 321 (a) 344 (a) 350 (a) Margin - LFT Socopa SELIC 20,790 — 6.40 % (249 ) 7.60 % (395 ) 5.70 % (790 ) 3.80 % 395 9.50 % 790 11.40 % Total derivatives 19,718 (249 ) 42,263 83,395 (40,004 ) (81,140 ) Cresca, net USD (1,450 ) (376 ) 3.86 (51 ) 3.99 375 2.99 751 2.00 (375 ) 4.99 (751 ) 5.99 Cresud, net USD 267 69 3.86 8 3.99 (69 ) 2.99 (138 ) 2.00 69 4.99 138 5.99 Total related parties (1,183 ) (307 ) (43 ) 306 613 (306 ) (613 ) (*) SOURCE Risks: Bloomberg (a) For sensitivity analysis of derivative positions, forward rates and prices at each maturity date of the transaction were used, according to the table above. (b) The sensitivity analyses do not consider financing transactions with fixed rate. b) Credit risk Credit risk refers to the risk of the noncompliance by a counterparty of its contractual obligations, leading the Company to incur financial losses. The risk to which the Company is exposed arises from the possibility of not recovering the amounts receivable from the sale of sugarcane, grains, and from the leasing of land. To reduce credit risk in commercial transactions, the Company adopts the practice of defining credit limits in which it analyzes factors such as: the counteerparty’s history, history of its business, commercial references and Credit Protection Institution (Serasa). The Company also constantly monitors the outstanding balances. Currently, management does not expect losses due to the default of its counterparties and has no significant exposure to any individual counterparty. c) Liquidity risk The prudent management of liquidity risk implies the maintenance of sufficient cash and marketable securities to comply with its financial commitments, due to the mismatch of terms or volume between the estimated amounts receivables and payables. The table below shows the Company’s financial liabilities by maturity. The amounts disclosed in the table are the discounted contractual cash flows, in addition to the net derivative financial instruments, whose fair value is disclosed. With respect to payables for the purchase of farms all amounts due at June 30, 2018 and 2017 are payable upon the fulfillment of certain conditions precedent by the sellers and as a result its payment date cannot be determined and have been considered as payable on demand in the table below and no interest or other financial charges have been considered. Note Less than one year From one to two years From three to five years Above five years Total At June 30, 2018 Trade payable 14.1 48,518 — — — 48,518 Financial instruments derivatives 6 10,489 2,145 — — 12,634 Loans, financing and debentures 15 70,088 21,298 143,793 40,841 276,020 Payable for purchase of farms 13 — — — — — Transactions with related parties 27 1,831 — — — 1,831 At June 30, 2017 Trade payable 14.1 37,805 — — — 37,805 Financial instruments derivatives 6 3,978 — — — 3,978 Loans and financing 15 56,620 16,428 15,129 23,998 112,175 Payable for purchase of farms 13 24,646 — — — 24,646 Transactions with related parties 27 4,784 — — — 4,784 4.9. Capital management The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to stockholders, return capital to stockholders or, also, issue new shares or sell assets to reduce, for example, debt. Consistent with others in the industry, the Company monitors capital based on the leverage ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total loans and financing (including “current and noncurrent loans and financing” as shown in the Consolidated statement of financial position) less cash and cash equivalents. Total capital is calculated as equity, as shown in the Consolidated statement of financial position, plus net debt. According to the following table, the Company presents net debt of loans, acquisitions payable and trade accounts payables and the financial leverage index. 2018 2017 Loans, financing, debentures and finance leases (Note 15) 276,020 112,175 Total payable for purchase of farms (Note 13) — 24,646 Total trade accounts payables (Note 14.1) 48,518 37,805 Total derivatives (Note 6) 12,634 3,978 337,172 178,604 Less: cash and cash equivalents (Note 5.1) (104,314 ) (43,798 ) Less: marketable securities (Notes 5.2) (29,441 ) (24,060 ) (133,755 ) (67,858 ) Net debt 203,417 110,746 Total equity 755,864 667,468 Financial leverage 26.91 % 16.59 % 4.10. Hierarchy of fair value and financial instruments by category The carrying amount (less impairment) of trade accounts receivable and payables approximate their fair values. The fair value of financial liabilities, for disclosure purposes, is estimated by discounting the future contractual cash flows at the current market interest rate that is available for similar financial instruments. The Company adopted IFRS 7 and IFRS 13 for financial instruments that are measured in the balance sheet at fair value; this requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: ● Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). ● Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). ● Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). There were no changes in the valuation methodology used to estimate the fair value of financial instruments categorized as levels 2 and 3. There were no transfers between fair value hierarchy levels during the year. The following table presents the Company’s main financial assets and liabilities, their classification and the fair value, as well as the level of hierarchy: June 30, 2018 June 30, 2017 Consolidated – thousand R$ Note Fair value through profit or loss Loans and receivables Total Fair value Level 2 Fair value through profit or loss Loans and receivables Total Fair value Level 2 Assets Current Cash equivalents 5.1 81,213 — 81,213 81,213 28,639 — 28,639 28,639 Marketable securities (d) 5.2 11,215 — 11,215 11,215 6,972 — 6,972 6,972 Trade accounts receivable, net 7.1 — 57,185 57,185 57,185 — 35,167 35,167 35,167 Receivable from sale of farm, net 7.1 21,372 — 21,372 21,372 9,136 — 9,136 9,136 Derivative financial instruments (c) 6 28,299 — 28,299 7,293 4,090 — 4,090 670 Transactions with related parties 27 — 1,660 1,660 1,660 — 1,298 1,298 1,298 Noncurrent Marketable securities 5.2 18,226 — 18,226 18,226 17,088 — 17,088 17,088 Trade accounts receivable, net 7.1 — — — — — 100 100 100 Receivable from sale of farm 7.1 55,423 — 55,423 55,423 22,592 — 22,592 22,592 Derivative financial instruments (c) 6 4,053 — 4,053 4,053 1 — 1 — Transactions with related parties 27 — — — — — 35,640 35,640 35,640 Total 219,801 58,845 278,646 257,640 88,518 72,205 160,723 157,302 June 30, 2018 June 30, 2017 Consolidated – thousand R$ Note Designated at fair value through profit or loss Financial liabilities at amortized cost Total Fair value Designated at fair value through profit or loss Financial liabilities at amortized cost Total Fair value Liabilities Current Trade accounts payable 14.1 — 48,518 48,518 48,518 — 37,805 37,805 37,805 Loans, financing and debentures (a) 15 — 68,412 68,412 68,412 — 55,001 55,001 55,001 Finance lease sugarcane crop - Partnership III (b) 15 1,676 — 1,676 N/A 1,619 — 1,619 N/A Derivative financial instruments (c) 6 10,489 — 10,489 9,214 3,978 — 3,978 809 Payables for purchase of farms 13 — — — — — 24,646 24,646 24,646 Noncurrent Loans, financing and debentures (a) 15 — 187,393 187,393 187,393 — 33,095 33,095 33,095 Finance lease sugarcane crop - Partnerships III and IV (b) 15 18,539 — 18,539 N/A 22,460 — 22,460 N/A Derivative financial instruments (c) 6 2,145 — 2,145 2,145 — — — — Total 32,849 304,323 337,172 315,682 28,057 150,547 178,604 151,356 (a) The carrying amount of loans and financing in the financial statements, approximate the fair value, since the rates of these instruments are substantially subsidized and there is no intention of early settlement; (b) Finance lease is measured at fair value in Level 3. The pricing takes into account the average ATR for lease agreements disclosed by Consecana (138 Kg ATR / TC), at the Consecana price for the respective month, at a weighting of 50% EHC and 50% EAC. (c) The Derivative transactions negotiated in an active market in the amount of R$1,275 (R$3,169 at June 30, 2017) are measured at fair value at Level 1, and over-the-counter transactions are measured at Level 2, as presented in the table above. |
Cash and cash equivalents and m
Cash and cash equivalents and marketable securities | 12 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents And Marketable Securities | |
Cash and cash equivalents and marketable securities | 5. Cash and cash equivalents and marketable securities 5.1. Cash and cash equivalents CDI 2018 2017 Cash and banks — 23,101 15,159 Repurchase agreements (a) 55% a 65% 15,242 28,639 Bank deposit certificates 99% to 100% 33,137 — Letter of Mercantile Lease 101% to 102% 32,834 — 104,314 43,798 (a) The Company uses this type of investment for funds that will be redeemed in less than 30 days, according to the projected cash flow and also in case of need to invest funds that were received after banking hours. The Company has R$22,700 (R$13,155 at June 30, 2017), of bank balances denominated in foreign currency which do not bear any interest. 5.2. Marketable securities 2018 2017 Investment fund — 2 Bank deposit certificates (a) 1,129 — Banco do Nordeste (BNB) (b) — 5,502 Treasury financial bills (c) 10,086 1,468 Total current 11,215 6,972 Bank deposit certificates (a) 9,588 8,982 Banco do Nordeste (BNB) (a) / (b) 8,638 8,106 Total noncurrent 18,226 17,088 Marketable securities 29,441 24,060 (a) Indexed to rates from 98% to 102,5% of the CDI – Interbank Deposit Certificate. (b) The securities in BNB consist of CDBs provided as collateral for financing from BNB Bank, to be held up to the end of the contract in July 2019. (c) Treasury bonds indexed to the Selic rate. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Financial Instruments | |
Derivative financial instruments | 6. Derivative financial instruments June, 20 2018 Risk Maturity Outstanding derivative instruments Counter party Receivable Payable Net balance Notional (’000) Call option (put option) Unit Currency US$ October -18 Options FC Stone 1,490 (2,484 ) (994 ) (4,800 ) — US$ Currency US$ June -18 Dollar – 1st Futures BM&F 1 (1,086 ) (1,085 ) (31,000 ) — US$ Current 1,491 (3,570 ) (2,079 ) (35,800 ) — US$ Noncurrent — — — — — US$ Total US$ risk 1,491 (3,570 ) (2,079 ) (35,800 ) — US$ Soybean CBOT July-18 Soybean Options Trading Companies/Banks/CBOT — (7 ) (7 ) — (77,107 ) Bags Soybean CBOT October-18 Soybean Options Trading Companies/Banks/CBOT — (1,275 ) (1,275 ) — (1,294,946 ) Bags Soybean CBOT July-18 Futures Soybean Trading Companies/Banks/CBOT 5,451 (5,569 ) (118 ) — — Bags Soybean CBOT October-18 Futures Soybean Trading Companies/Banks/CBOT 351 — 351 — (16,975 ) Bags Soybean CBOT July-19 Futures Soybean Trading Companies/Banks/CBOT 3,999 (2,145 ) 1,854 — (430,893 ) Bags Ethanol BM&F July-18 Futures Ethanol BM&F 42 — 42 — (300 ) mˆ3 Ethanol BM&F August-18 Futures Ethanol BM&F 94 — 94 — (900 ) mˆ3 Ethanol BM&F September-18 Futures Ethanol BM&F 80 — 80 — (900 ) mˆ3 Current (bags) 5,802 (6,851 ) (1,049 ) — (1,389,028 ) Bags Current (Ethanol) 216 — 216 — (2,100 ) Cubic Meters Noncurrent (bags) 3,999 (2,145 ) 1,854 — (430,893 ) Bags Total commodities risk 10,017 (8,996 ) 1,021 — (1,822,021 ) Interest R$ January-18 DI SWAP x Dollar Banco Safra — — — — — BRL Interest R$ August-23 Pre-DI SWAP Bradesco 54 — 54 14,810 — BRL Interest R$ July-18 Pre-DI SWAP ABC — (12 ) (12 ) 10,000 — BRL Interest R$ August-18 Pre-DI SWAP Itaú BBA Jaborandi — (11 ) (11 ) 20,000 — BRL Interest R$ May-19 Pre-DI SWAP Itaú BBA Jaborandi — (45 ) (45 ) 20,000 — BRL Current — (68 ) (68 ) 50,000 — BRL Noncurrent 54 — 54 14,810 — BRL Total interest rate risk 54 (68 ) (14 ) 64,810 — BRL Total risks 11,562 (12,634 ) (1,072 ) 29,010 (1,822,021 ) Margin deposit 20,790 — 20,790 Current 28,299 (10,489 ) Noncurrent 4,053 (2,145 ) P &L at June 30, 2018 (Note 23) 62,965 (68,300 ) June, 20 2017 Risk Maturity Outstanding derivative instruments Counter party Receivable Payable Net balance Notional (’000) Call option (put option) Unit Currency US$ August-17 BM&F BM&F 15 — 15 2,000 — US$ Currency US$ July- 7 NDF FC Stone 423 — 423 (2,000 ) — US$ Currency US$ January-18 Options FC Stone — (638 ) (638 ) (2,500 ) — US$ Currency US$ May-18 Accumulator Macquarie 4 — 4 (30 ) — US$ Currency US$ June-18 Options FC Stone 154 (171 ) (17 ) (1,000 ) — US$ Current 596 (809 ) (213 ) (3,530 ) — US$ Noncurrent — — — — — US$ Total US$ risk 596 (809 ) (213 ) (3,530 ) — US$ Soybean CBOT July-17 Soybean Futures Trading Companies/Banks/CBOT 1,377 (2,219 ) (842 ) — — Bags Soybean CBOT November-17 Soybean Futures Trading Companies/ Banks /CBOT 5 — 5 — (24,946 ) Bags Soybean CBOT April-18 Soybean Options Trading Companies/ Banks /CBOT — (408 ) (408 ) — (113,393 ) Bags Soybean CBOT June-18 Soybean Options Trading Companies/ Banks /CBOT — (514 ) (514 ) — (72,571 ) Bags Soybean CBOT July-18 Soybean Futures Trading Companies/ Banks /CBOT 1 — 1 — (335 ) Bags Live Cattle BM&F October-17 Live Cattle Futures BM&F 14 — 14 — 660 Heads Current (bags) 1,382 (3,141 ) (1,759 ) — (210,910 ) Bags Current (heads) 14 — 14 — 660 Heads Noncurrent (bags) 1 — 1 — (335 ) Bags Total commodities risk 1,397 (3,141 ) (1,744 ) — (210,585 ) Interest R$ November-17 Pre-DI SWAP Itaú BBA 89 — 89 7,000 — US$ Current 89 — 89 7,000 — US$ Noncurrent — — — — — US$ Total interest rate risk 89 — 89 7,000 — US$ Daily adjustments – Currency — (15 ) (15 ) Daily adjustments – Commodities — (13 ) (13 ) Total risks 2,082 (3,978 ) (1,896 ) 3,470 (210,585 ) Margin deposit 2,009 — 2,009 Current 4,090 (3,978 ) Noncurrent 1 — P&L at June 30, 2017 (Note 23) 62,226 (44,791 ) The Company uses derivative financial instruments such as forward currency contracts and forward commodities contracts to hedge against currency risk and commodities prices, respectively. The margin deposits in operations with derivatives refer to the called margins by counterparties in operations with derivative instruments. The total fair value of a derivative is classified as noncurrent assets or liabilities if the remaining maturity of the derivative is over 12 months, and as current assets or liabilities if the remaining maturity of the derivative is less than 12 months. |
Accounts receivable and others
Accounts receivable and others | 12 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable And Others | |
Accounts receivable and others | 7. Accounts receivable and others Note 2018 2017 Trade accounts receivable 7.1 78,557 44,303 Recoverable taxes 7.2 9,479 7,126 Advances to suppliers 6,711 1,866 Other receivables 429 731 Total current 95,176 54,026 Trade accounts receivable 7.1 55,423 22,692 Recoverable taxes 7.2 17,847 20,124 Judicial deposits 25.c 1,505 1,789 Total noncurrent 74,775 44,605 7.1 Trade accounts receivable 2018 2017 Sale of sugarcane (c) 36,742 23,637 Sale of grains (d ) 14,757 11,958 Sale of cattle 589 — Leases of land 5,747 184 Sale of machinery 216 249 Sale of farms (e) 21,372 9,136 79,423 45,164 Allowance for doubtful accounts (a) (866 ) (861 ) Total current 78,557 44,303 Sale of machinery — 100 Sale of farms (e) 55,423 22,592 Total non-current 55,423 22,692 a) Changes in the allowance for doubtful accounts: At June 30, 2016 1,163 Accrual of provision 49 Write-off or reversal (351 ) At June 30, 2017 861 Accrual of provision 284 Write-off or reversal (279 ) At June 30, 2018 866 The estimated losses in allowance for doubtful accounts were recorded as selling expenses in the statement of operations. The allowance for doubtful accounts is based on the analysis of accounts, individually by client, and the amounts included in the allowance are written-off when these amounts are no longer expected to be recovered. b) Breakdown of receivable by maturity 2018 2017 Falling due: Up to 30 days 34,305 8,020 31 to 90 days 19,611 15,025 91 to 180 days 9,159 100 181 to 360 days 15,316 20,967 Over 360 days 55,423 22,692 Past due: Up to 30 days 106 22 31 to 90 days 60 169 91 to 180 days 2 5 181 to 360 days 8 1 Over 360 days 856 855 134,846 67,856 c) Sale of sugarcane The Company has two sugarcane supply agreements. The first agreement was with Brenco Companhia Brasileira de Energia Renovável and the second agreement is included in the partnership IV Agreement, as mentioned in the Explanatory Note on Commitments, whose credit risks are assessed in accordance with the internal policy, as presented in Note 4.8b. All the risks were covered during the fiscal year ended on June 30, 2018, and there is no record of default until the date of disclosure of these Financial Statements. d) Sale of grains For the years ended June 30, 2018 and 2017, corn and soybean were sold mainly to the customers Bunge Alimentos, Amaggi and Cargill Agrícola. e) Receivables from sale of farms Total amounts sold, collected and receivables from sale of farms are as follows: Araucária I Araucária II Araucária III Araucária IV Araucária V Jatobá I Consolidated At June 30, 2016 1,930 14,411 — — — — 16,341 Sale amount (a) — — 12,451 16,987 — 10,145 39,583 Receipts (1,950 ) (8,188 ) (2,124 ) (3,009 ) — (878 ) (16,149 ) Restatement of nominal value (23 ) (4,733 ) 412 273 — — (4,071 ) Unwind of present value adjustment 43 2,913 (1,950 ) (3,256 ) — (1,726 ) (3,976 ) At June 30, 2017 — 4,403 8,789 10,995 — 7,541 31,728 Sale amount (a) — — — — 52,405 — 52,405 Receipts — (4,994 ) (2,493 ) (4,250 ) (5,267 ) (877 ) (17,881 ) Restatement of nominal value — 142 1,542 1,510 6,632 2,187 12,013 Unwind of present value adjustment — 449 689 762 (3,176 ) (194 ) (1,470 ) At June 30, 2018 — — 8,527 9,017 50,594 8,657 76,795 Current 21,372 Non-current 55,423 (a) Information on sales and the amounts received in the fiscal year ended June 30, 2018 is presented in Notes 1.2 and 19.b 7.2 Recoverable taxes 2018 2017 Withholding income tax (IRRF) on financial investments to be offset 3,843 4,940 Income tax losses and social contribution carryforwards 148 — Other recoverable taxes and contributions 5,488 2,186 Total current (a) 9,479 7,126 ICMS recoverable 8,429 7,658 ICMS recoverable on property, plant and equipment 409 684 Non-cumulative PIS and COFINS to be offset 6,837 7,031 IRRF on financial investments to be offset 2,172 4,751 Total noncurrent 17,847 20,124 (a) Of the amounts consolidated as of June 30, 2018, the amount of R$ 4,844 refers to Value Added Tax in Paraguay. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
Inventories Abstract | |
Inventories | 8. Inventories 2018 2017 Soybean 50,289 6,837 Corn 6,247 6,819 Other harvests 1,153 50 Agricultural products 57,689 13,706 Raw materials 11,933 8,952 69,622 22,658 The amounts of inventories of agricultural products are disclosed net of the provision, as follows: 8.1 Adjustment to recoverable value of inventories of agricultural products At June 30, 2016 (4 ) Provision for recoverable value of agricultural products, net (1,655 ) Realization as cost of sales 447 At June 30, 2017 (1,212 ) Provision for recoverable value of agricultural products, net 883 Realization as cost of sales 325 At June 30, 2018 (4 ) |
Biological assets
Biological assets | 12 Months Ended |
Jun. 30, 2018 | |
Biological Assets | |
Biological assets | 9. Biological assets 2018 2017 Production cattle 34,053 13,435 Grain plantation 2,203 1,385 Sugarcane plantation 59,790 36,875 Total 96,046 51,695 Current 61,993 38,260 Noncurrent 34,053 13,435 The amounts of expenditures with plantation and tilling of crops are substantially represented by expenditures with the formation of harvest such as: seeds, fertilizers, pesticides, depreciation and manpowers used in the crops. The area (hectares) to be harvested corresponding to the biological assets is as follows: Planted area (Hectares) 2018 2017 Grains 1,322 — Sugarcane (a) 29,955 32,286 31,277 32,286 (a) For sugarcane the area considered above refers to the total to be harvested in all the future cuts, considered in the cash flow for calculation of fair value of biological assets. This area includes the hectares leased from Brenco and Partnership IV, according to contracts executed on May 8, 2015 and February 7, 2017, respectively. Changes in agricultural activity Grains Sugarcane At June 30, 2016 — 22,285 Expenditures with plantation 98,314 — Expenditures with tilling — 63,513 Lease contract – Partnership IV — 17,479 Fair value variation (a) (Note 18) 4,302 11,532 Harvest of agricultural produce (101,231 ) (77,934 ) At June 30, 2017 1,385 36,875 Expenditures with plantation 81,080 — Expenditures with tilling — 130,197 Fair value variation (a) (Note 18) 54,892 43,952 Harvest of agricultural produce (136,396 ) (151,234 ) Effect of conversion 1,242 — At June 30, 2018 2,203 59,790 (a) For sugarcane, the area considered above refers to the total to be harvested in all future cuts, considered in the cash flow for calculating the fair value of biological assets. This area includes hectares leased from Brenco as per the agreement signed on May 8, 2015, and the total of 15,000 hectares related to an agricultural partnership, as per the agreement signed on February 7, 2017. Changes in cattle raising activity Heads of cattle (in number) Cattle for production At July 1, 2016 4,148 5,241 Acquisition/birth costs 4,729 6,476 Cattle-raising costs — 5,667 Sales (136 ) (312 ) Deaths (97 ) (69 ) Change in fair value (Note18) — (3,568 ) At June 30, 2017 8,644 13,435 Acquisition/birth costs 14,680 14,311 Handling costs — 9,415 Sales (2,006 ) (4,332 ) Deaths (325 ) (476 ) Change in fair value (Note18) — 239 Effect of conversion — 1,461 At June 30, 2018 20,993 34,053 Quantitative data about cattle raising activity, expressed in heads of cattle Work animals At June 30, 2017 8,644 At June 30, 2018 20,993 Fair value hierarchy at June 30, 2018 Amount Fair value Sugarcane 59,790 Level 3 Cattle 34,053 Level 2 Grains 2,203 Level 1 Changes in fair value in profit or loss 2018 2017 2016 Grains 54,892 4,302 (32,165 ) Sugarcane 43,952 11,532 19,533 Cattle 239 (3,568 ) — 99,083 12,266 (12,632 ) |
Investment properties noncurren
Investment properties noncurrent | 12 Months Ended |
Jun. 30, 2018 | |
Investment Properties Noncurrent | |
Investment properties - noncurrent | 10. Investment properties – noncurrent Land – Farms Buildings and improvements Opening of area Total in operation Construction in progress 2018 2017 Opening balance 300,487 26,369 53,021 379,877 9,922 389,799 287,867 Acquisitions 2,231 152 1,390 3,773 20,088 23,861 121,672 Acquisitions – corporate restructuring 113,158 4,141 — 117,299 23,653 140,952 — Disposals (10,676 ) (116 ) — (10,792 ) (1 ) (10,793 ) (8,728 ) Transfers — 1,979 6,943 8,922 (8,922 ) — — (-) Depreciation / amortization — (983 ) (11,916 ) (12,899 ) — (12,899 ) (11,012 ) Effect of conversion 19,879 710 36 20,625 5,607 26,232 — Net book balance 425,079 32,252 49,474 506,805 50,347 557,152 389,799 At June 30, 2018 Total cost 425,079 39,925 145,397 610,401 50,347 660,748 480,496 Accumulated depreciation — (7,673 ) (95,923 ) (103,596 ) — (103,596 ) (90,697 ) Net book balance 425,079 32,252 49,474 506,805 50,347 557,152 389,799 Annual depreciation rates (weighted average) - % — 4-20 10-20 — — — — Four farms owned by the Company are held as guarantee for loans and financing according to Note 15, representing 33% of total investment properties. The fair values of the investment properties are as follows: Hectares Fair value* Cost value Farm State 6/30/2018 6/30/2016 Real estate Acquisition 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Jatobá Bahia 30,981 30,981 Jaborandi Ltda Mar-07 340,942 360,758 56,963 59,057 Alto Taquari Mato Grosso 5,394 5,394 Mogno Ltda Aug-07 158,726 119,706 35,962 35,783 Araucária Goiás 5,534 6,493 Araucária Ltda Apr-07 137,796 172,327 43,198 53,001 Chaparral Bahia 37,182 37,184 Cajueiro Ltda Nov-07 312,256 352,391 82,038 79,794 Nova Buriti Minas Gerais 24,212 24,212 Flamboyant Ltda Dec-07 32,145 23,407 23,116 21,998 Preferência Bahia 17,799 17,799 Cajueiro Ltda Sep-08 58,171 64,392 27,735 30,082 São José Maranhão 17,566 17,566 Ceibo Ltda Feb-17 156,798 156,981 106,387 105,138 Moroti (a) Boqueron Paraguay 59,490 — Agropecuaria Moroti S/A Feb-18 188,946 — 166,477 — 198,158 139,629 1,385,780 1,249,962 541,876 384,853 (*) Considered Level 3 for fair value. (a) Property consolidated during the Cresca spin-off process, see Note 1.1. At June 30, 2018, the cost value of R$541,898 (R$384,853 at June 30, 2017) is not comparable to that disclosed in the “Investment properties” note, since the note contemplates Avarandado Farm (leased), which is not an integral part of the Company’s portfolio of owned farms. |
Investments
Investments | 12 Months Ended |
Jun. 30, 2018 | |
Investments | |
Investments | 11. Investments a) Changes in investments At June 30, 2016 102,955 Share of loss in a joint venture (4,425 ) Effect from currency translation adjustment 2,896 Balance at June 30, 2017 101,426 Write-off of investment due to spin-off (115,478 ) Share of profit in a joint venture 14,671 Effect from currency translation adjustment (533 ) Balance at June 30, 2018 86 b) Interest in Joint Venture Cresca’s summarized financial information, based on the financial statements prepared in accordance with IFRS as of and for years ended June 30, 2018 and 2017 and the reconciliation with the book value of the investment in the consolidated financial statements considering the fair value adjustments on the acquisition date are presented below: 2018(*) 2017 Assets 3,371 281,529 Current 3,356 9,705 Cash and cash equivalents 333 503 Accounts receivable, inventories and other receivables 3,023 8,976 Contract of purchase of land — 226 Noncurren t 15 271,824 Recoverable taxes — 3,311 Investment properties — 268,267 Other noncurrent 15 246 Liabilities 3,200 78,677 Current 3,200 1,295 Trade payables, taxes and loans 3,200 1,295 Noncurrent — 77,382 Including taxes and loans — 77,382 Total net assets 171 202,852 Company’s interest – 50% 50 % 50 % Company’s interest in net assets at estimated fair value 86 101,426 2018 2017 Revenue 83 12,916 Cost of products sold (684 ) (14,404 ) Gross revenue (expenses) (601 ) (1,488 ) Selling expenses (34 ) (891 ) Administrative expenses (374 ) (979 ) Other profit/expenses 437 (92 ) Finance profit 32,340 (578 ) Finance costs 16 (5,257 ) Loss before tax 31,784 (9,285 ) Income and social contribution taxes (2,443 ) — Loss for the year 29,341 (9,285 ) Company’s interest – 50% 14,671 (4,643 ) Amortization of fair value adjustment on the purchase date (shareholders’ loans) — 218 Equity method 14,671 (4,425 ) (*) Balance sheet after spin-off that took place on February 9, 2018, as described in Note 1.1. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 12. Property, plant and equipment Buildings and improvements Equipment and facilities Agricultural vehicles and machinery Furniture and fixtures Total in operation Construction in progress Sugarcane Total property, plant and equipment At June 30, 2017 Opening balance 28 1,858 6,182 495 8,563 4 19,236 27,803 Acquisitions (a) — 687 2,633 108 3,428 340 33,012 36,780 Disposals — (129 ) (324 ) (3 ) (456 ) — — (456 ) Transfers 169 116 — — 285 (285 ) — — Depreciation (5 ) (321 ) (755 ) (95 ) (1,176 ) — (8,206 ) (9,382 ) Accounting balance, net 192 2,211 7,736 505 10,644 59 44,042 54,745 At June 30, 2017 Total cost 921 5,473 20,752 1,254 28,400 59 64,138 92,597 Accumulated depreciation (729 ) (3,262 ) (13,016 ) (749 ) (17,756 ) — (20,096 ) (37,852 ) Accounting balance, net 192 2,211 7,736 505 10,644 59 44,042 54,745 At June 30, 2018 Opening balance 192 2,211 7,736 505 10,644 59 44,042 54,745 Acquisitions (a) 10 5,458 4,634 318 10,420 52 32,385 42,857 Acquisitions – corporate restructuring — 215 74 55 344 — — 344 Disposals — (55 ) (235 ) (6 ) (296 ) — (137 ) (433 ) Depreciation (5 ) (856 ) (1,214 ) (110 ) (2,185 ) — (10,498 ) (12,683 ) Accounting balance, net 197 6,973 10,995 762 18,927 111 65,792 84,830 At June 30, 2018 Total cost 931 11,091 25,225 1,621 38,868 111 97,907 136,886 Accumulated depreciation (734 ) (4,118 ) (14,230 ) (859 ) (19,941 ) — (32,115 ) (52,056 ) Accounting balance, net 197 6,973 10,995 762 18,927 111 65,792 84,830 Annual depreciation rates (weighted average) - % 2-20 10 13-20 10 16-27 |
Payables for purchase of farms
Payables for purchase of farms | 12 Months Ended |
Jun. 30, 2018 | |
Payables For Purchase Of Farms | |
Payables for purchase of farms | 13. Payables for purchase of farms Restatement index 2018 2017 Nova Buriti Farm (a) *IGP-M — 22,085 São José Farm — — 2,561 — 24,646 * IGP-M –Market General Price Index a) On August 30, 2017, the total debt was R$22,126, when the deed of Nova Buriti farm was prepared and consequently a partial amount for the farm was paid in the amount of R$5,802. Of the remaining balance, R$1,500 was paid on October 18, 2017, R$3,665 was paid on January 10, 2018, and R$1,886 was paid on May 29, 2018. During the negotiation, the total price of the farm was renegociated, fully waiving inflation adjustment (IGP-M – General Market Price Index), which would be payable by the Company. The amount of R$9,273 was recognized as financial income in the quarter ended September 30, 2017, see Note 23. The payments related to the purchase of the farms are linked to the fulfillment of certain conditions precedent by the sellers for the obtaining of licenses. |
Trade accounts payable and othe
Trade accounts payable and others | 12 Months Ended |
Jun. 30, 2018 | |
Trade Accounts Payable And Others | |
Trade accounts payable and others | 14. Trade accounts payable and others Note 2018 2017 Trade accounts payable 14.1 48,518 37,805 Taxes payable 6,142 5,209 Dividends payable 30,008 6,509 Advances to customers 21,201 5,631 Other liabilities 576 461 Total current 106,445 55,615 Taxes payable 11,298 1,520 Total noncurrent 11,298 1,520 14.1 Trade accounts payable At June 30, 2018, the Company’s balance of trade accounts payable is as follows: 2018 2017 Raw materials and services 25,859 24,618 Operating lease transactions with third parties 22,659 13,187 48,518 37,805 |
Loans, financing, debentures an
Loans, financing, debentures and finance leases | 12 Months Ended |
Jun. 30, 2018 | |
Loans Financing Debentures And Finance Leases | |
Loans, financing, debentures and finance leases | 15. Loans, financing, debentures and finance leases Bank Final Maturity Annual interest rates and charges -% Guarantee 2018 2017 Current Financing for agricultural costs ABC and Itaú September/18 Fixed rate 7.22% to 9% — 31,847 10,703 Financing for agricultural costs (USD) Itaú November/18 Fixed rate 7.22% — 11,486 — Bahia Project Financing (a) BNB and HSBC June/19 Fixed rate 4% to 9% Jatobá and Chaparral Farms 3,131 15,236 Working Capital Financing Rabobank May/18 1.40% to 2.30% + 100% of CDI — — 15,782 Working Capital Financing (USD) (a) Itaú August/17 3.49% — — 5,031 Financing of Machinery and Equipment - FINAME Rabobank and Itaú June/19 TJLP + 3.73% Machinery and Equipment 630 1 Financing of sugarcane Itaú, Rabobank, Banco do Brasil and Santander June/19 TJLP + 2.70 Morro Vermelho and Chaparral Farms 21,318 8,248 Finance lease sugarcane crop (Note 26.c) Partnership III November/18 6.62% 1,676 1,619 70,088 56,620 Noncurrent Financing Bahia Project (a) BNB and HSBC August/23 Fixed rate 4% to 9% Jatobá and Chaparral Farms 27,146 30,862 Financing of Machinery and Equipment - FINAME Rabobank and Itaú June/24 TJLP + 3.73% Machinery and Equipment 5,411 1,208 Financing of sugarcane Itaú, Rabobank, Banco do Brasil and Santander December/23 TJLP + 2.70 Morro Vermelho and Chaparral Farms 13,194 1,025 Debentures Insurance company July/23 106.5% and 110% of CDI Chaparral Farm 141,642 — Finance lease sugarcane crop (Note 26.c) Partnership III November/18 6.62% — — 1,665 Finance lease sugarcane crop (Notes 1.1 and 26.d) Partnership IV January/32 R$/Kg 0.6462 — 18,539 20,795 205,932 55,555 276,020 112,175 Keys: TJLP – Long Term Interest Rate FINAME – Financing of Machinery and Equipment (BNDES) BNDES – Brazilian Development Bank BNB – Banco do Nordeste Changes in loans and financing during the year ended June 30, 2018 are as follows: June 30, 2016 Contracting Payment of principal Payment of Interest Appropriation of interest Foreign exchange difference Present value adjustment June 30, 2017 Finance for agricultural cost 35,087 10,000 (34,826 ) (2,085 ) 2,527 — — 10,703 Bahia Project(a) Financing 57,099 1,607 (13,131 ) (3,954 ) 4,477 — — 46,098 Working Capital Financing — 15,000 — (106 ) 888 — — 15,782 Working Capital (USD) Financing — 4,661 — — 94 276 — 5,031 Financing of Machinery and Equipment – FINAME 114 1,201 (109 ) (5 ) 8 — — 1,209 Sugarcane Financing 1,772 7,000 (242 ) (177 ) 920 — — 9,273 Finance Lease - Sugarcane Crop - Partnership III 5,773 — — — — — (2,489 ) 3,284 Finance lease sugarcane crop — 29,049 — — — — (8,254 ) 20,795 99,845 68,518 (48,308 ) (6,327 ) 8,914 276 (10,743 ) 112,175 June 30, 2017 Contracting Payment of principal Payment of Interest Appropriation of interest Foreign exchange difference Present value adjustment June 30, 2018 Finance for agricultural cost 10,703 62,734 (34,062 ) (1,447 ) 4,003 1,402 — 43,333 Bahia Project Financing (a) 46,098 13,904 (27,622 ) (4,706 ) 2,603 — — 30,277 Working Capital Financing 15,782 16,250 (31,523 ) (1,893 ) 1,384 — — — Working Capital (USD) Financing 5,031 — (4,703 ) (83 ) 18 (263 ) — — Financing of Machinery and Equipment – FINAME 1,209 4,700 — (404 ) 461 75 — 6,041 Sugarcane Financing 9,273 32,557 (7,498 ) (1,814 ) 1,994 — — 34,512 Debentures — 140,165 — — 1,477 — — 141,642 Finance Lease - Sugarcane Crop - Partnership III 3,284 — — — — — (1,608 ) 1,676 Finance lease sugarcane crop 20,795 — — — — — (2,256 ) 18,539 112,175 270,310 (105,408 ) (10,347 ) 11,940 1,214 (3,864 ) 276,020 (a) Financing to raise funds for opening of areas and improvements in Jatobá and Chaparral farms. a) Loans and Financing Covenants All loans and financing contracts above are in Reais and have specific terms and conditions defined in the respective contracts with governmental economic and development agencies that directly or indirectly grant those loans. At June 30, 2018 and 2017, the Company’s financing had no financial covenants, but rather only operating clauses, on which the Company is not in default. b) Debentures On May 25, 2018, one hundred forty-two thousand, two hundred (142,200) non-convertible debentures were subscribed to and paid in, with security interest, in the total of R$142,200 (R$85,200 for the first series and R$57,000 for the second series). The maturity date of the first-series debentures is August 1, 2022 (“maturity date of the first series”) and their unit face value will be paid in three (3) annual installments, the first on July 30, 2020 and the final on the maturity date of the first series. Compensatory interest corresponding to one hundred six point fifty percent (106,50%) of the DI rate will be accrued on the unit face value of first-series debentures, which will be paid on July 30 of each year or on the maturity date of the first series. The maturity date of the second-series debentures is July 31, 2023 (“maturity date of the second series”) and their unit face value will be paid in four (4) annual installments, the first on July 30, 2020 and the final on the maturity date of the second series. Compensatory interest corresponding to one hundred ten percent (110.00%) of the CDI (Interbank Deposit Certificate) rate will be accrued on the unit face value of second-series debentures, which will be paid on July 30 of each year or on the maturity date of the second series. The costs directly related to the issue of debentures totaled R$2,035 and will be amortized during the term of the agreement. The Debentures were linked to a securitization transaction, serving as guarantee for the issue of Certificates of Agribusiness Receivables (“CRA”) pursuant to Law 11,076/2004 and CVM Instruction 414/2004, which were the object of a public distribution offer with restricted efforts, under CVM Instruction 476/2009 (“Restricted Offer”). The Debentures are backed by security interest in the form of fiduciary sale of properties owned by the Company and registered under no. 6,254, 6,267 and 6,405, all of them at the Property Records Office of Correntina in the state of Bahia. Covenants The debentures have covenants related to the maintenance of certain financial indicators, based on the ratio of net debt to fair value of investiment properties. Failure by the Company to attain these indicators during the term of the debentures may entail advance maturity of the debt. On June 30, 2018, the Company is in compliance with the covenants described above. |
Income and social contribution
Income and social contribution taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income And Social Contribution Taxes | |
Income and social contribution taxes | 16. Income and social contribution taxes 16.1. Deferred taxes Deferred income and social contribution tax assets and liabilities are offset when there is a legal right to offset tax credits against tax liabilities, and provided that they refer to the same tax authority and the same legal entity. The fiscal year for income tax and social contribution calculation purposes is calendar year, which is different from that adopted by the Company for the preparation of its consolidated financial statements, which ends June 30 of each year. The changes in deferred income tax and social contribution tax assets and liabilities for the periods ended June 30, 2018 and 2017 and without taking into consideration offsetting of balances in the same tax jurisdiction, are as follows: 2018 2017 Assets Noncurrent Tax loss carryforwards (NOL) 43,442 58,458 Biological assets 5,942 2,401 Financial lease 2,103 — Contingency, bonuses and fair value 11,125 6,162 Hedge 364 635 Provision for doubtful acoorents 668 624 Difference in cost of farms 170 170 Provision of other accounts payable and receivable 1,794 2,918 65,608 71,368 Liabilities Noncurrent Biological assets 13,386 2,308 Finance lease 548 — Contingency, bonuses and fair value 3,574 — Surplus on investment 1,733 — Costs of transactions 499 — Provision of residual value and useful life of PPE assets 1,633 1,397 Accelerated depreciation of assets for rural activity 11,493 13,883 32,866 17,588 Net balance 32,742 53,780 The net change in deferred income tax is as follows: At June 30, 2016 55,594 Tax losses (4,820 ) Adjustments in biological assets and agricultural products 2,182 Provisions for contingency and fair value (2,043 ) Hedge (192 ) Allowance for doubtful accounts 176 Onerous agreements 2,918 Accelerated depreciation (35 ) At June 30, 2017 53,780 Tax losses (15,016 ) Adjustments in biological assets and agricultural products (7,543 ) Financial lease 1,555 Provisions for contingency and fair value 1,389 Hedge (271 ) Surplus on investment (Note 1.1) (1,733 ) Costs of transactions (499 ) Allowance for doubtful accounts 44 Provision for other accounts payable and receivable (1,124 ) Accelerated depreciation 2,154 Total without effect from conversion 32,736 Effect of conversion 6 At June 30, 2018 32,742 The estimated years of realization of deferred tax assets are as follows: 2018 2019 20,721 2020 1,973 2021 1,935 2022 2,370 2023 to 2028 38,609 65,608 16.2. Income and social contribution tax expenses 2018 2017 2016 Income before income and social contribution taxes 152,257 33,259 9,440 Combined nominal rate of income tax and social contribution taxes – % 34 % 34 % 34 % (51,767 ) (11,308 ) (3,210 ) Share of loss in a Joint Venture 4,988 (1,504 ) (174 ) Management bonus (2,331 ) (2,025 ) (1,524 ) Share-based incentive plan - ILPA (208 ) — — Nondeductible expenses (135 ) (709 ) (61 ) Profit or loss of joint venture abroad — (378 ) — Net effect of subsidiaries taxed whose profit is computed as a percentage of gross revenue (*) 19,121 10,320 3,931 Net effect of spin-off of joint venture abroad (Note 1.1) 4,778 — — Other permanent addition (365 ) (345 ) (413 ) Income and social contribution taxes for the year (25,919 ) (5,949 ) (1,451 ) Current (4,875 ) (4,135 ) (15,998 ) Deferred (21,044 ) (1,814 ) 14,547 (25,919 ) (5,949 ) (1,451 ) Effective tax rate -17 % -18 % -15 % (*) For some of our real estate subsidiaries, profit tax is measured based on the regime whereby profit is computed as a percentage of gross revenue, i.e., income tax is determined on a simplified base to calculate the taxable profit (32% for lease revenues, 8% for sale of farms and 100% for other earnings). This results effectively in taxing the profit of subsidiaries at a rate lower than if taxable income were based on accounting records. |
Equity
Equity | 12 Months Ended |
Jun. 30, 2018 | |
Equity | |
Equity | 17. Equity a) Capital (number of shares) Shareholder 2018 2017 Cresud S.A.C.I.F.Y.A. (a) 23,291,500 23,291,500 Board of Directors 8,431,700 161,900 Executive Board 168,267 159 Officers 8,599,967 162,059 Treasury 3,086,748 3,254,556 Other 21,910,701 30,180,801 Total shares of paid-up capital 56,888,916 56,888,916 Total outstanding shares 21,910,701 30,180,801 Outstanding shares as percentage of total shares (%) 39 53 (a) Of this amount, 140,450 shares are held by Agro Managers S.A. and 1,000 shares are held by Agro Managers, subsidiaries of Cresud S.A. At June 30, 2018 and 2017, the Company’s subscribed and paid-up capital amounted to R$584,224. The Company is authorized to increase its capital, regardless of amendments to the articles of incorporation, up to the limit of R$3,000,000, as decided by the Board of Directors. b) Stock option plan The information on the stock option plan and issue of new grants is described in Note 21. c) Legal reserve and retention for investment and expansion Pursuant to article 193 of Law No. 6404/76 and article 36, item (a), 5% (five per cent) of the Company’s net income at the end of each year must, before any other allocation, be used to set up a legal reserve, which shall not exceed 20% (twenty percent) of capital. The Company is allowed not to set up the legal reserve for the financial year in which the reserve balance, plus the amount of capital reserve addressed in item 1, of article 182, of Law No. 6404/76, exceeds 30% (thirty per cent) of capital. The legal reserve aims at assuring the integrity of the Company’s capital and may only be used to offset loss and increase capital. According to article 36, item (c), of the Company’s articles of incorporation and article 196 of Law No. 6404/76, the Company may allocate the remaining portion of adjusted net income for the year ended, to reserve for investment and expansion, subject to approval on the General Shareholders’ Meeting. The balance of the retained profits reserve, except for the reserves of unrealized profit and reserves for contingencies, may not exceed the amount of capital. Once this maximum limit is reached, the General Meeting may resolve on the investment of the exceeding portion in the payment, increase of capital or in dividend distribution. d) Dividends Pursuant to article 36, of the Company’s Articles of Incorporation, profit for the year shall be allocated as follows: (a) 5% (five percent) of net profit for the set-up of legal reserve, up to the limit of 20% (twenty percent) of share capital ; (b) 25% (twenty five percent) of adjusted net profit, after the deduction addressed in item (a) above, shall be allocated to the payment of mandatory dividends and (iii) the remaining portion of adjusted net profit, after the deduction addressed in item (b) above, may be allocated to the reserve for investment and expansion. 2018 2017 Profit for the year (a) 126,338 27,310 (-) Constitution of legal reserve (5% of net profit) (6,317 ) (1,366 ) Adjusted net profit 120,021 25,944 (-) Mandatory minimum dividends - 25% of adjusted net profit (30,005 ) (6,486 ) (-) Additional dividends proposed (10,995 ) (6,486 ) Proposed dividends (41,000 ) (12,972 ) Set-up of reserve for investments and expansion 79,021 12,972 Total paid-in capital (per thousand shares) 56,889 56,889 (-) Treasury shares (per thousand shares) (3,087 ) (3,255 ) (=) Free float (per thousand shares) 53,802 53,634 Dividend per share (R$) 0.76 0.24 At June 30, 2018, the total of R$30,005 was allocated as mandatory minimum dividends and R$10,995 as additional dividends proposed, to be approved at the Annual Shareholders’ Meeting. On October 16, 2018, the Company approved the distribution of dividends at the Extraordinary Shareholders’ Meeting, in the amount of R$41,000. On October 2, 2017, the shareholders of the Company approved at the Annual Shareholders’ Meeting the distribution of dividends in the amount of R$12,972, of which R$6,486 refers to mandatory minimum dividends and R$6,486 to additional dividends proposed. e) Other comprehensive income At June 30, 2018, the effects from foreign exchange rate differences arising from the translation of Cresca, Palmeiras and Moroti financial statements for the year amounted to positive R$27,084 (R$3,410 at June 30, 2017 and R$27,865 at June 30, 2015), and the accumulated effect amounted to R$39,883 (R$43,415 on June 30, 2017), due to the write-off of R$30,616 upon the spin-off of Cresca, as per Note 1.1. f) Treasury shares The Shares were acquired through a common share repurchase plan, as approved at the meeting of Company’s Board of Directors held on June 25, 2015. On the same date, the Board of Directors approved the plan to repurchase common shares issued to be held in treasury and later disposal or cancellation with no capital decrease. Changes in treasury shares in the year are as follows: Treasury shares Number of shares Amount (R$) At June 30, 2016 3,344,211 37,203 Acquisitions 1,345,400 15,551 Cancellations (1,337,684 ) (14,881 ) Transfer to Board of Executive Officers – 3 rd (97,371 ) (1,076 ) At June 30, 2017 3,254,556 36,797 Acquisitions 50,300 610 Transfer to Board of Executive Officers – 2 nd rd (218,108 ) (2,199 ) At June 30, 2018 3,086,748 35,208 g) Subscription warrants On March 15, 2006, the Board of Directors approved the issue of 512,000 share subscription warrants, 256,000 of which for first issue and 256,000 for second issue, which were delivered to the founder shareholders, in proportion to their interest in the Company’s capital at the date of issue of the subscription warrants. Each issue of subscription warrant grants their holders the right to subscribe shares issued by the Company, in an amount equivalent to 20% of its capital after the increase arising from the full exercise of the subscription warrant of each issue. Subscription warrants of the first issue grant their holders, as from the dates on which they become exercisable, the right to subscribe the shares issued by the Company through the payment of the price per share used in the initial public offering, subject to certain restatement and adjustment rules. The subscription warrants of the first issue were issued in three series, which differ solely as to the date on which the right to subscribe the shares granted by them start. Exceptionally, the subscription warrants of the first issue may be exercised by their holders in the event of transfer of the Company’s control or acquisition of material interest, as defined in the terms of the corporate documents that decided on the issue of the subscription warrants. The subscription warrants of the second issue grant the holders the right to subscribe shares issued by the Company for up to 15 years, from the date of publication of the announcement of closing of the initial public offering of shares and solely in the events of transfer or acquisition of material shareholding control in the Company, as defined in the terms of the corporate document that decided on the issue of the subscription warrants. In such events, public offerings for acquisition of all the outstanding shares of the Company shall be presented. For the subscription of shares object of the subscription warrants of second issue, their holders shall be required to pay the same price per share used in the abovementioned public offerings of acquisition of the Company shares. The number of shares to be subscribed according to the subscription warrants shall be adjusted in case of split or reverse split of shares. The detailed information of the second issue market value of these subscription warrants is shown in the table below: Second issue BrasilAgro 2018 2017 Price of share - R$ 13.55 12.20 Maturity (years) 15 15 Maturity (day/month/year) 27/04/2021 4/27/2021 Exercise price at year end - R$/share 19.57 18.75 Number of existing shares 56,888,916 56,888,916 Percentage of capital shares subject to conversion (percentage of new capital) - % 20 20 Number of outstanding shares and stock purchase warrants 256,000 256,000 |
Segment information
Segment information | 12 Months Ended |
Jun. 30, 2018 | |
Segment Information | |
Segment information | 18. Segment information Segment information is presented consistently with the internal report provided by the main operating decision makerthat is the Executive Board, responsible for allocating resources, assessing the performance of the operating segments, and for making the Company’s strategic decisions. Segment information is based on information used by BrasilAgro Executive Board to assess the performance of the operating segments and to make decisions on the investment of funds. The Company has five segments, namely: (i) real estate, (ii) grains, (iii) sugarcane, (iv) cattle raising and (v) other. The operating assets related to these segments are located only in Brazil. The main activity of the grains segment is the production and sale of soybean and corn. The Sugarcane segment includes the sale of the raw product. The Real Estate segment presents the Profit and Losses from operations carried out in the Company’s subsidiaries. The cattle raising segment consists of producing and selling beef calves after weaning, which characterizes the activity as breeding. The selected P&L, assets e liabilities information by segment, which were measured in accordance with the same accounting practices used in the preparation of the financial statements, are as follows: June 30, 2018 Total Real estate Agricultural activity Other Not allocated Grains Sugarcane Cattle raising Net revenue 244,278 5,133 97,180 138,143 4,081 (259 ) — Gain on sale of farm 39,817 39,817 — — — — — Change in fair value of biological assets and agricultural products (Note 9) 99,083 — 55,584 43,952 239 (692 ) — (Impairment) of net realizable value of agriculturl products after harvest, net 883 — 905 — — (22 ) — Cost of sales (228,319 ) — (89,633 ) (134,028 ) (4,378 ) (280 ) — Gross profit 155,742 44,950 64,036 48,067 (58 ) (1,253 ) — Operating profit (expenses) Selling expenses (10,087 ) — (9,730 ) — (383 ) 26 — General and administrative expenses (34,945 ) — — — — — (34,945 ) Other operating expenses, net 35,432 — — — — — 35,432 Share of profit af a joint venture 14,671 — — — — — 14,671 Operating profit (loss) 160,813 44,950 54,306 48,067 (441 ) (1,227 ) 15,158 Net finance profit Finance income 129,323 20,843 12,388 18,208 — 18,501 59,383 Finance expenses (137,879 ) (5,158 ) (6,606 ) (20,597 ) — (18,261 ) (87,257 ) Profit (loss) before income and social contribution taxes 152,257 60,635 60,088 45,678 (441 ) (987 ) (12,716 ) Income and social contribution taxes (25,919 ) (20,616 ) (20,430 ) (15,531 ) 150 335 30,173 Net profit (loss) for the year 126,338 40,019 39,658 30,147 (291 ) (652 ) 17,457 Total assets 1,179,599 624,417 78,070 129,787 35,438 14,073 297,814 Total liabilities 423,735 — 73,610 52,310 — — 297,815 June 30, 2017 Total Real estate Agricultural activity Other Not allocated Grains Sugarcane Cattle raising Net revenue 146,911 — 68,971 73,658 369 3,913 — Gain on sale of farm 26,716 26,716 — — — — — Change in fair value of biological assets and agricultural products (Note 9) 12,266 — 4,302 11,532 (3,568 ) — — (Impairment) of net realizable value of agriculturl products after harvest, net (1,655 ) — (1,652 ) — — (3 ) — Cost of sales (136,362 ) — (59,770 ) (74,498 ) (156 ) (1,938 ) — Gross profit 47,876 26,716 11,851 10,692 (3,355 ) 1,972 — Operating profit (expenses) Selling expenses (6,676 ) (8 ) (6,144 ) — (80 ) (444 ) — General and administrative expenses (30,941 ) — — — — — (30,941 ) Other operating expenses, net (6,019 ) — — — — — (6,019 ) Share of loss af a joint venture (4,425 ) — — — — — (4,425 ) Operating profit (loss) (185 ) 26,708 5,707 10,692 (3,435 ) 1,528 (41,385 ) Net finance profit Finance income 110,090 8,276 9,901 8,254 — 1,292 82,367 Finance expenses (76,646 ) (8,057 ) (8,881 ) (921 ) — (9,097 ) (49,690 ) Profit (loss) before income and social contribution taxes 33,259 26,927 6,727 18,025 (3,435 ) (6,277 ) (8,708 ) Income and social contribution taxes (5,949 ) (9,155 ) (2,287 ) (6,128 ) 1,168 2,134 8,319 Net profit (loss) for the year 27,310 17,772 4,440 11,897 (2,267 ) (4,143 ) (389 ) Total assets 883,293 421,769 27,938 112,670 5,952 1,257 313,707 Total liabilities 215,825 41,090 10,703 33,353 — — 130,679 The balance sheet accounts are mainly represented by “Trade accounts receivables”, “Biological assets”, “Inventories of agricultural products” and “Investment properties”. a) Information on concentration of clients In the year ended June 30, 2018, the Company has five clients representing 10% or more of the revenues from the sugarcane or grains segments, totaling 83.2% of the total sales of the Company. Of these five clients, two account for 58.9% and 41.1% of the revenues from the sugarcane segment and three account for 27.4%, 17.4% and 10.5% of the revenues from the grains segment. In the year ended June 30, 2017, the Company had five clients representing 10% or more of the sugarcane or grains segments, totaling 78.3% of the total sales of the Company. Of these five clients, two accounted for 86.0% and 14.0% of the revenues from the sugarcane segment and three accounted for 31.0%, 16.0% and 9.9% of the revenues from the grains segment. b) Geographic information Revenues and non-current assets, excluding financial instruments, income tax and social contribution, deferred assets, post-employment benefits and rights arising from insurance contracts are distributed as follows: In Brazil Subsidiaries abroad (a) 2018 2017 2018 2017 Net income 218,224 137,397 26,054 9,514 Non-current assets 646,528 736,170 182,628 3,749 (a) The subsidiaries abroad are all located in Paraguay |
Revenues
Revenues | 12 Months Ended |
Jun. 30, 2018 | |
Revenues | |
Revenues | 19. Revenues a) Operating sales 2018 2017 2016 Sales of grains 99,875 71,272 62,878 Sales of sugarcane 142,037 75,986 85,916 Revenue from cattle raising 4,115 Lease 6,592 2,820 2,260 Other revenues 132 2,227 4,347 Gross operating revenue 252,751 152,305 155,401 Sales deductions Taxes on sales (8,473 ) (5,394 ) (8,273 ) Net revenue 244,278 146,911 147,128 b) Sale of farms Araucária V At June 30, 2018 Jatobá I Cremaq Araucária III Araucária IV At June 30, 2017 Gross revenue from sale of farm (a) 52,406 52,406 8,419 4 9,866 13,731 36,016 Sales taxes (1,913 ) (1,913 ) (307 ) (146 ) (360 ) (501 ) (1,314 ) Cost of sale of farm (10,676 ) (10,676 ) (1,102 ) — (3 ) (3,884 ) (7,986 ) Gain from sale of farm 39,817 39,817 7,010 3,854 6,506 9,346 26,716 |
Expenses by nature
Expenses by nature | 12 Months Ended |
Jun. 30, 2018 | |
Expenses By Nature | |
Expenses by nature | 20. Expenses by nature Cost of products sold Selling expenses General and administrative expenses Total Depreciation and amortization 22,406 — 816 23,222 Personnel expenses 4,265 2,223 24,133 30,621 Expenses with service provider 53,014 — 4,279 57,293 Leasing 7,799 — 689 8,488 Cost of agricultural products 130,188 — — 130,188 Freight and storage — 7,731 — 7,731 Allowance for doubtful accounts — 133 — 133 Maintenance, travel expenses and others 10,647 — 5,028 15,675 At June 30, 2018 228,319 10,087 34,945 273,351 Depreciation and amortization 14,326 — 701 15,027 Personnel expenses 4,579 1,058 21,199 26,836 Expenses with service provider 52,706 — 3,772 56,478 Leasing 11,089 — 728 11,817 Cost of agricultural products 50,024 — — 50,024 Freight and storage — 5,025 — 5,025 Allowance for doubtful accounts — 516 — 516 Sale of farm — 8 — 8 Maintenance, travel expenses and others 3,638 69 4,541 8,248 At June 30, 2017 136,362 6,676 30,941 173,979 Depreciation and amortization 21,211 — 746 21,957 Personnel expenses 7,320 — 19,135 26,455 Expenses with service providers 53,562 — 2,975 56,537 Leasing 7,385 — 788 8,173 Cost of agricultural products 41,924 — — 41,924 Freight and storage — 2,418 — 2,418 Allowance for doubtful accounts — (2,686 ) — (2,686 ) Losses on receivables — 3,000 — 3,000 Maintenance, travel expenses and other 3,312 — 5,300 8,612 At June 30, 2016 134,714 2,732 28,944 166,390 |
Management compensation
Management compensation | 12 Months Ended |
Jun. 30, 2018 | |
Management Compensation | |
Management compensation | 21. Management compensation The expenses with Management compensation were recorded under “General and administrative expenses”, as follows: 2018 2017 2016 Board of directors and executive board compensation 2,491 3,528 2,756 Bonuses 6,856 5,957 4,483 Total compensation 9,347 9,485 7,239 The total compensation of the Company’s officers and members of the Board of Directors, for the year ended June 30, 2018 in the amount of R$11,000, was approved at the Annual General Meeting held on October 2, 2017. a) Stock option plan On August 11, 2010, the Board of Directors approved the creation of the Stock Option Program, authorizing the Company’s Board to grant stock options to the beneficiaries then elected. The Plan established the beneficiaries, the number of shares that each one may acquire upon exercise of the options, the exercise price per share to be paid in cash by the beneficiaries and the conditions of options. The stock options to be granted according to the Plan may grant rights on the number of shares no greater, at any time, than the maximum and cumulative amount of 2% of Company shares, respecting the minimum price of the average quote of Company shares on the São Paulo Stock Exchange (B3), weighted by the volume of trading on the last thirty floors prior to the option grant. The table below presents the changes in the stock option plan per grant: Second grant Third grant Total Outstanding on July 1, 2017 109,054 109,054 218,108 Exercised (109,054 ) (109,054 ) (218,108 ) Exercisable on June 30, 2018 — — — On September 27, 2017, the Company received notice of the exercise of all the stock options granted under the Second and Third Programs, totaling 109,054 stock options at the strike price of R$8.25 per share and 109,054 stock options at the strike price of R$8.52 per share, respectively, corresponding to the total of R$1,827. Consequent to the notice of exercise of stock options by the beneficiary, the Company transferred to the beneficiary the number of shares equivalent to the number of options informed, as applicable, and the shares to be transferred by the Company are currently held in treasury. The beneficiary, in turn, paid the exercise price in cash after the transfer of shares. b) Long-term Share-based Incentive Plan On October 2, 2017, the Shareholders Meeting approved the creation of the Long-term Share-based Incentive Plan (“ILPA Plan”). Under the terms of the ILPA Plan, participants will be entitled to receive a certain number of shares if they remain in the Company for a vesting period and achieve certain key performance indicators (“KPIs”). The ILPA Plan establishes that the Board of Directors will have broad powers to implement the ILPA Plan and take all measures necessary for it. The shares to be granted under the ILPA Plan may not exceed, at any time, the maximum and cumulative limit of 2% of the shares issued by the Company. The first grant of incentives was approved by the Board of Directors on June 18, 2018, when the 1st ILPA Program was approved and the beneficiaries, number of shares to be granted, vesting period and KPIs to be achieved were defined. The vesting period for the 1st ILPA Program is the period between October 2, 2017 and October 2, 2019, and participants were selected from among those who were Company employees at the start of the vesting period, considering their category and compensation on that date. Shares will be granted to participants only if they remain employed by the Company until the end of the vesting period and achieve certain KPIs. One of the KPIs is a certain percentage of appreciation of the price of the AGRO3 stock in the vesting period; if such percentage is not reached, participants will not have the right to receive any shares. If the KPI of stock appreciation is achieved, the number of shares to be granted will vary in three ranges, depending on the level of achievement of three other KPIs, and will be adjusted by the dividends per share distributed in the vesting period, and will increase by an amount established in case the share appreciation exceeds the floor price. The fair value of the benefit was estimated at R$8.61.To measure the fair value of the benefit, the Company considered the price of the AGRO3 stock on the date of the grant and projected the probable range of stock price at the end of the vesting period based on the past performance of the stock price in a period of 1 year and 4 months (compatible with the period between the grant in June 2018 and the end of the vesting period in October 2018).Considering the volatility of the AGRO3 stock, the Company determined the probability of the stock price at the end of the vesting period reaching the value necessary to achieve the appreciation KPI. The maximum number of shares to be issued is 447,127 (granted on June 18, 2018 and outstanding on June 30, 2018). As of June 30, 2018, no shares were cancelled or issued to the beneficiaries, and the number of shares will be adjusted by the dividends per share distributed during the vesting period. To determine the number of shares and the compensation expense, in each fiscal year Management determines the estimated number of shares to be granted based on its best judgment of the portion of each of the three KPIs that does not depend on the stock price and the dividends to be paid in the vesting period. The expense amount is adjusted on account of such revision and the effects are recognized prospectively. The estimated expense is recognized upon the grant, in June 2018 being appropriated linearly during the vesting period, between October 2, 2017 and October 2, 2019, and an expense of R$844 was registered in the fiscal year ended June 30, 2018. |
Other operating income (expense
Other operating income (expenses), net | 12 Months Ended |
Jun. 30, 2018 | |
Other Operating Income Expenses Net | |
Other operating income (expenses), net | 22. Other operating income (expenses) , net 2018 2017 2016 Gain/loss on sale of PPE (380 ) (479 ) 33 Reversal of management fee – Cresca (a) — (3,318 ) — Provision for legal claims (b) 387 (139 ) 2,213 Alto Taquari Farm (c) — 34 2,277 Surplus gain from spin-off (Note 1.1) 5,098 — (500 ) Write-off of effect of conversion of joint venture due to spin-off (Note 1.1) 30,616 — — Other (d) (289 ) (2,117 ) (1,211 ) 35,432 (6,019 ) 2,812 (a) On October 5, 2016, the Company entered into an agreement with the shareholder Carlos Casado S.A., which provides for the termination of the land development consultancy agreement. The termination of this agreement resulted in a reversal of revenue amounting to R$1,050. At December 31, 2016, the advisory agreement recorded under Intangible Assets,” in the amount of R$1,440, was derecognized. At June 30, 2017, the Company recognized that it should have received amounts net of taxes and recorded a loss of R$828 related to taxes levied on settlement of the agreement. (b) The amount recognized in June 2016 refers to the reversal of provision for INSS of foreign members of the Board of Directors. (c) In June 2016, the Company obtained a discount on the payment of acquisition of Alto Taquari Farm. (d) The amount in 2017 basically refers to the termination of the Chief Executive Officer’ employment contract, as per his resignation tendered at the Board of Directors’ Meeting held on August 18, 2016, in the amount of R$1,394, and to the payment of ICMS fine on undue credit in use and consumption operations, property, plant and equipment, diesel oil and agricultural inputs, in the amount of R$630. |
Financial income and expenses
Financial income and expenses | 12 Months Ended |
Jun. 30, 2018 | |
Financial Income And Expenses | |
Financial income and expenses | 23. Financial income and expenses Notes 2018 2017 2016 Financial income Interest on marketable securities 4,341 15,383 39,509 Interest on receivable (a) 10,462 4,878 5,506 Monetary variations (i) 160 619 — Foreign exchange variation (ii) 12,058 11,166 8,933 Gain on remeasurement of receivables from sale of farms (iii) 39,337 15,818 22,499 Realized profit from derivative transactions (iv) 6 16,861 19,576 77,448 Unrealized profit from derivative transactions (v) 6 46,104 42,650 38,749 129,323 110,090 192,644 Financial expenses Marketable securities charges (1,372 ) (2,565 ) (9,884 ) Bank charges (685 ) (1,080 ) (1,405 ) Interest accrued (b) (28,768 ) (8,963 ) (8,202 ) Monetary variation (i) (346 ) (541 ) (3,164 ) Foreign exchange variation (ii) (11,792 ) (10,917 ) (8,738 ) Loss on remeasurement of receivables from sale of farms (iii) (26,616 ) (7,789 ) (12,649 ) Realized loss from derivative financial transactions (iv) 6 (23,968 ) (3,654 ) (72,675 ) Unrealized loss from derivative financial transactions (v) 6 (44,332 ) (41,137 ) (37,553 ) (137,879 ) (76,646 ) (154,270 ) Financial income (expense), net (8,556 ) 33,444 38,374 a) Mainly represented by financial income obtained from renegotiation of the Nova Buriti farm, in the amount of R$9,273, according to Note 13. b) The amount of R$16,563 refers to the waiver of 100% of the interest on agreements entered into with Cresca, see Note 1.1. Net balances are as follows: 2018 2017 2016 Monetary variations (i) (186 ) 78 (3,164 ) Foreign exchange difference (ii) 266 249 195 Realization of present value on balance of accounts receivable (iii) 12,721 8,029 9,850 Realized (loss) profit derivative financial instruments (iv) (7,107 ) 15,922 4,773 Unrealized profit from Derivative financial instruments (v) 1,772 1,513 1,196 |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings per share [abstract] | |
Earnings per share | 24. Earnings per share 2018 2017 2016 Profit attributed to controlling shareholders 126,338 27,310 7,989 Weighted average number of common shares issued (thousands) 53,750 57,241 58,227 Effect from dilution – shares (a) 64 352 357 Weighted average number of common shares issued adjusted by the dilution effect 53,813 57,593 58,584 Basic earnings per share 2.3505 0.4771 0.1372 Diluted earnings per share 2.3477 0.4742 0.1364 (a) Refers to potencial ordinary shares from the long term incentive and stock option plans (Note 21). |
Provision for legal claims
Provision for legal claims | 12 Months Ended |
Jun. 30, 2018 | |
Provision For Legal Claims | |
Provision for legal claims | 25. Provision for legal claims The Company and its subsidiaries are involved in civil, labor, environmental and tax lawsuits and in administrative proceedings of labor, tax and environmental natures. The provision for probable losses arising from these lawsuits is estimated and updated by management, supported by the opinion of the Company’s external legal advisors. Probable likelihood of loss Labor Administrative Tax Civil Total At June 30, 2016 1,143 — 312 — 1,455 Additions 431 — — 619 1,050 Monetary restatement 138 — — 79 217 Reversal/payments (313 ) — (117 ) (698 ) (1,128 ) At June 30, 2017 1,399 — 195 — 1,594 Additions 131 300 — 22 453 Monetary restatement 173 — — — 173 Reversal/payments (713 ) (300 ) — — (1,013 ) At June 30, 2018 990 — 195 22 1,207 Possible likelihood of loss The Company and its subsidiaries are parties to legal suits of civil, labor, environmental and tax natures, and administrative tax proceedings for which no provisions were set up, since they involve risk of loss classified as possible by the Company and its external legal advisors. The contingencies are as follows: 2018 2017 Civil 11,232 10,719 Tax 4,858 4,315 Labor 964 1,514 Environmental 279 — 17,333 16,548 Judicial deposits 2018 2017 Labor 277 611 Tax 1,099 1,051 Civil 129 127 (Note 7) 1,505 1,789 |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2018 | |
Commitments | |
Commitments | 26. Commitments a) Contracts of sugarcane supply between BrasilAgro and ETH Bioenergia For the year ended June 30, 2018, gross sugarcane sales of BrasilAgro to ETH Bioenergia reached R$81,375, representing 33.3% of the Company’s total gross revenue. 2018 2017 2016 Number Number Number (tons) Amount (tons) Amount (tons) Amount Gross revenue from sugarcane – ETH 842,960 81,375 720,548 59,811 1,075,183 85,916 The price of sugarcane ton delivered was calculated on Total Sugar Recoverable (ATR) assessed on the sales date. There is a future balance of sugarcane to be delivered, the estimated quantity and amounts of which are difficult to be established considering the scenarios of fluctuating market value and crop productivity. b) Lease agreement – Partnership (II) 2018 2017 2016 Lease agreement 1,877 2,081 2,150 This partnership agreement complies with the definition of operating lease. The payment will always be in kind (soybean grains), to be deposited until June 30 of each crop year. The quantity of bags to be paid during the effectiveness of the agreement may vary due to two variables, namely, the productivity and the area effectively planted. According to such agreement, the minimum quantity to be paid in the long term would correspond to 479,181 bags, of which 59,898 bags of soybean in up to one year, 299,488 bags of soybean from one to five years and 119,795 bags of soybean with more than five years up to the end of the agreement. c) Sugarcane agricultural partnership agreement On May 8, 2015, the Company executed three agreements with ETH Bioenergia. The first agreement was the rural subpartnership agreement to operate nine farms, in the state of Mato Grosso. The subpartnership starts on the date of execution and ends on March 31, 2026. This partnership contract meets the definition of operating lease. The payment shall be always in kind (tons of sugarcane). According to this contract the quantity to be paid in the long term corresponds to 529,975 tons, of which 174,929 tons from one to five years and 355,046 tons for a period longer than five years up to the end of the agreement. 2018 2017 2016 Operating lease 3,407 1,017 127 The second agreement deals with the regulation of rights and obligations between agricultural partners, in which BrasilAgro acquired the sugarcane crops planted by ETH Bioenergia in the properties addressed by the subpartnership agreement described above. Such agreement contract meets the definition of financeal lease. The payment shall be always in kind (tons of sugarcane), to be delivered at the plant owned by ETH Bioenergia during the harvest period of the product. According to this contract, the quantity to be paid in the long term corresponds to 53,845 tons, of which 18,604 tons in up to one year and 35,241 tons from one to five years. 2018 2017 2016 Finance lease (sugarcane crop) 1,676 3,284 5,773 d) Sugarcane agricultural partnership agreement (IV) On February 7, 2017, the Company entered into an agricultural partnership agreement involving a property in São Raimundo das Mangabeiras, in the state of Maranhão, named Partnership IV. The first agreement establishes an agricultural partnership to operate an area of around 15,000 hectares. The agricultural partnership is for 15 years from the date of the agreement and may be renewed for the same period. This partnership agreement meets the definition of operating lease. Payment will always be made in kind (tons of sugarcane). The quantity to be paid corresponds to 10% of the entire production obtained in the area specified in the agreement and the initial base quantity to be produced in the area during the first year of the agreement was established at 850,000 tons. After this period, spanning between one and five years, the minimum quantity to be produced in the partnership areas is 4,500,000 tons of sugarcane, and from the sixth year to the termination of agreement, minimum production should be 1,250,000 tons of sugarcane per crop year. The second agreement regulates the rights and obligations of the agricultural partners, by which BrasilAgro acquired sugarcane crops planted by the agricultural partner in the areas specified in the partnership agreement described above. This agreement meets the definition of finance lease. As consideration in this agreement, BrasilAgro undertakes to return, at the end of the agreement, the area specified in the partnership agreement together with sugarcane stubble crops with the capacity to produce 850,000 tons of sugarcane, in the crop year subsequent to the termination of the agricultural partnership agreement. 2018 2017 Finance lease Partnership IV (a) / (b) 18,539 20,795 (a) Finance lease as per Note 15. (b) Amounts adjusted at the price determined by Sugarcane Producers Council (Consecana) at June 30, 2018. The third agreement deals with sugarcane supply, in which the parties aim to regulate the price and conditions of supply, as well as the obligations of each party in a cyclical system, which involves the need to supply sugarcane, in a certain delivery frequency and schedule that is consistent with buyer’s receipt and production capacity. For the year ended June 30, 2018, gross sugarcane sales to Partnership IV totaled R$56,848 million, representing 23,3% of the Company’s total net revenue. 2018 2017 Quantity Amount Quantity Amount Gross sugarcane sales Partnership IV 838,501 56,848 217,797 16,175 |
Transactions with related parti
Transactions with related parties | 12 Months Ended |
Jun. 30, 2018 | |
Transactions With Related Parties | |
Transactions with related parties | 27. Transactions with related parties 2018 2017 Current assets Cresud (a) 303 1,298 Other (b) 1,357 — 1,660 1,298 Noncurrent assets Cresca (c) — 35,640 Current liabilities – trade accounts payable Trade accounts payable (d) 1,450 3,451 Cresud (a) 36 936 Cresca — 397 Ombu 332 — Other 13 — 1,831 4,784 (a) Expenses and revenue related to implementation of the budget and controls system and reimbursement of general expenses; (b) The amounts substantially refer to the total shares exercised under the Second and Third Programs, as detailed in Note 21. (c) On February 1, 2018, the Company resolved, at a Meeting of the Board of Executive Officers, to waive 100% of the interest earned on loan agreements and receivables pertaining to Cresca. On February 9, 2018, date of spin-off of the joint venture Cresca, the debt of US$5,727 (R$18,796) was transferred to Moroti (Note 1.1). (d) Acquisition of biological assets and other items related to the Palmeiras operation; |
Insurance
Insurance | 12 Months Ended |
Jun. 30, 2018 | |
Insurance | |
Insurance | 28. Insurance The Company and its subsidiaries maintain (i) civil liability insurance for all employees working at the farms, (ii) insurance for machinery, (iii) life insurance for all the employees, as well as (iv) insurance for Directors and Officers (D&O) and for other Board members. The coverage amount is considered sufficient by management to cover risks, if any, over its assets and/or liabilities. The Company assessed the risk of farm buildings and facilities owned by the Group, as well as its inventories and biological assets, concluding that there is no need for other types of insurance due to low likelihood of risks. Below is the table of the liabilities covered by insurance and the related amounts at June 30, 2018: Insurance type Coverage - R$ Civil liability (D&O) 30,000 Civil, professional and general liability 5,000 Machinery 8,432 Fire/lightning/explosion/electrical damage (office) 775 Storage silo (Chaparral Farm) 13,900 58,107 |
Subsequent event
Subsequent event | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Event | |
Subsequent event | 29. Subsequent events Sale of farm On June 13, 2018, the Company entered into an agreement for the sale of a total area of 9,784 hectares (7,485 harable hectares) of Jatobá Farm, a rural property located in the city of Jaborandi in Bahia, for 285 soybean bags per hectare or R$177,862. On July 31, 2018, the buyer made a down payment of 300,000 soybean bags, in the amount of R$21,000, and the Company transfered of ownership of the land, which resulted in the recognition of the revenue from the sale of land in the amount of R$156,810. The remaining balance will be paid in seven annual installments. Lease agreement On August 28, 2018, the Company entered into a leasing agreement to use an area of 23,500 hectares, which have a compromise of payment a minimum of 9.39 soybean bags per hectare or 17% of total production, whichever the greater. The area is in the municipality of São Félix do Araguaia, in the state of Mato Grosso – Brazil. The new farm will be named Partnership V. The lease agreement has a term up to 10 years and was set with market prices practiced in the region. The area will be cultivated with grains on the upcoming 2018/2019 harvest year. These areas are mature, with more than 5 years under production and are suitable for a second crop. |
Basis of preparation and pres_2
Basis of preparation and presentation (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Basis Of Preparation And Presentation | |
Basis of preparation | 2.1. Basis of preparation On October 23, 2018, Brasilagro’s Executive Board, Board of Directors and Fiscal Council approved the Company’s consolidated financial statements and authorized their issuance. The consolidated financial statements have been prepared and are presented in accordance with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB). All the references to IFRS in these financial statements correspond to the IFRS as issued by the IASB. The consolidated financial statements have been prepared on the historical cost basis, except where otherwise stated, as described in the summary of significant accounting policies. Management has not identified any significant uncertainty as to the Company’s ability to continue as a going concern in the next 12 months. The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires that Management use judgment in the process of application of the Company’s accounting policies. Those areas requiring a higher level of judgment and with more complexity, as well as the areas in which assumptions and estimates are significant for the financial statements, are disclosed in Note 3. Non-financial data included in these financial statements, such as sales volume, planted and leased area, number of farms, and environment were not examined by the independent auditors. All monetary amounts in these financial statements are presented in thousands of Brazilian reais, except where otherwise stated. Some of the totals presented in these financial statements may not cast due to rounding. Basis of consolidation The consolidated financial statements comprise the financial statements of Brasilagro and its subsidiaries as of June 30, 2018 and 2017, as described bellow: Ownership % 2018 2017 2016 Jaborandi Agrícola Ltda 99.99 99.99 99.99 Imobiliária Jaborandi 99.99 99.99 99.99 Cremaq 99.99 99.99 99.99 Engenho de Maracaju 99.99 99.99 99.99 Araucária 99.99 99.99 99.99 Mogno 99.99 99.99 99.99 Cajueiro 99.99 99.99 99.99 Ceibo 99.99 99.99 99.99 Flamboyant 99.99 99.99 99.99 Palmeiras (a) 99.99 99,99 — Moroti (a) 99.99 — — FIM Guardian Exclusive Fund (b) — 100.00 100.00 (a) Subsidiary incorporaded during the Cresca spin-off process, as per Note 1.1. (b) During the year, the Company extinguisned its exclusive investment fund (FIM Guardian). The subsidiaries are fully consolidated from the date of acquisition and consolidation ceases when the Company loses control. The financial statements of the subsidiaries are prepared for the same reporting period of Brasilagro, using consistent accounting policies. All intergroup balances, revenues and expenses are fully eliminated in the consolidated financial statements. |
Foreign currency translation | 2.2. Foreign currency translation a) Functional and presentation currency The Company’s functional and presentation currency is the Brazilian Real (R$). The items included in the financial statements of the subsidiaries located in Brazil are measured using Brazilian Reais (R$) as their functional currency. The U.S. Dollar is the functional currency of the joint venture Cresca S.A. (“Cresca”), and subsidiaries Palmeiras S.A. (“Palmeiras”) and Agropecuária Moroti S.A. (“Moroti”), all headquartered in Paraguay. b) Transactions and balances in foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations when items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of operations. c) Foreign operations In the preparation of the consolidated financial statements, the financial statements of Palmeiras, Moroti and Cresca, are translated into reais as follows: a) balance sheet at the exchange rate at year end and b) statement of income and cash flows, at the average exchange rate. The effects from variations in the foreign exchange rate resulting from the translation of foreing operations are presented in “Currency translation adjustment of foreign operations” in the statement of comprehensive income and in the statement of changes in equity. |
Investment in a joint venture | 2.3. Investment in joint venture Our investments in the joint venture Cresca, is recorded under the equity method. A joint venture is an agreement whereby the parties sharing joint control are entitled to the net assets of the joint ventures. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control. |
Cash and cash equivalents and marketable securities | 2.4. Cash and cash equivalents and marketable securities Cash and cash equivalents includes cash, bank deposits maturing within 90 days from the transaction date and short-term highly liquid repurchase agreements for which there are no fines or other restrictions for their immediate redemption. Cash equivalents are recorded at cost plus earnings accrued up to the balance sheet dates, not exceeding market or realization value. Marketable securities include the financial investments provided as guarantee for loans and financing recorded in noncurrent assets based on the maturities of referred to loans and financing. Considering the nature of investments held by the Company, there are no significant differences between their book value and the market value. Investments are recorded at the original cost plus earnings accrued through the balance sheet date on a pro-rata temporis basis. Bank deposit certificates and repo transactions may mature in a term exceeding 90 days, and may have repurchase guarantee contractually provided by the issuer of the security, allowing the redemption of the securities at their original amount invested plus interest, with no penalty. These investments are classified as cash equivalents. Investments in deposit certificates that are not eligible for redemption without penalties are classified as marketable securities. Certain debt agreements require the Company to keep marketable securities as a guarantee for the outstanding balances. Such investments are restricted while held in guarantee. The Company discloses the purchases and sales of such investments as investment activities in the statement of cash flows. Fixed-income investments are intended to maintain the value of the resources held by the Company and not yet allocated to rural activities, and are governed by a policy approved by the Board of Directors. The statement of cash flows in relation to financing and investment activities, include only transactions that have actually impacted cash and cash equivalents. |
Financial instruments | 2.5. Financial instruments 2.5.1. Classification and measurement The Company classifies its financial assets and liabilities in the following classes: measured at fair value through profit or loss, loans and receivables and available for sale. a) Financial assets and liabilities measured at fair value through profit or loss Financial assets and liabilities at fair value through profit or loss comprise financial assets held for trading and financial assets and liabilities designated upon initial recognition at fair value through profit or loss. A financial asset is classified as held for trading if: (i) acquired principally for the purpose of selling in the near term (ii) it is a derivative (unless designated as effective hedging instruments) or, (iii) the measurement at fair value reduces or eliminates inconsistences with the measument used by the Company’s financial management. The Company designates at initial recognition, certain financial assets at fair value through profit or loss. This designation cannot be changed later. These assets are limited to restricted marketable securities, derivatives and receivables from the sale of farms, which are included in the Consolidated statement of financial position in “Trade accounts receivable”. Changes in fair value related to receivable from the sale of farms designated at fair value through profit or loss are recognized in “Gain (loss) on remeasurement of receivables from the sale of farms” in “financial income and expenses” (Note 23). b) Loans and receivables The category includes loans granted and receivables which are non-derivative financial assets with fixed or determinable payments, not quoted in an active market. They are included in current assets, except for those with maturities exceeding 12 months after the balance sheet date, which are classified as non-current assets. The Company’s loans and receivables is comprised of trade receivables, other receivables, and marketable securities given in guarantee on loans and financing and transaction with related parties. Loans and receivables are recorded at amortized cost, using the effective interest rate method. Interest income is included in the caption financial income in the statement of operations. c) Available for sale financial assets Available for sale financial assets are those non-derivative instruments which are not classified as (a) loans and receivables, (b) investments held to maturity (c) financial assets at fair value through profit or loss. These financial assets include equity instruments and debt securities. Debt securities in this category are those intended to be held for an indefinite period and which may be sold to meet liquidity needs or as response to the changes in market conditions. After initial recognition, available-for-sale financial assets are measured at fair value, with unrealized gains and losses directly recognized in the available-for-sale reserve in other comprehensive income until the investment is derecognized. Impairment losses, interest income and gains or losses on foreign exchange on monetary assets are recognized in profit or loss for the year. When the investment is derecognized or when there is an impairment loss, the cumulative gains or losses previously recognized in other comprehensive income (loss) shall be recognized in profit or loss for the year. d) Financial liabilities at amortized cost The Company recognizes bonds issued and subordinated liabilities initially on the date when they are originated. Financial liabilities are initially recognized at fair value plus transaction costs. After initial recognition, these financial liabilities are measured at amortized cost through the effective interest rate method. The amortization of the effective interest rate method is included in the financial expenses caption in the statement of income. The Company’s financial liabilities mainly include trade accounts payable, loans and financing, debentures, financial leases and accounts payable from acquisitions of farms. 2.5.2. Recognition Regular purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Investments are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are written-off when the rights to receive cash flow from investments have expired or have been transferred; in the latter case, provided the Company has transferred, significantly, all risks and benefits of ownership. 2.5.3 Impairment of financial assets The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are recognized only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”), that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets and it can be reliably estimated. The criteria that the Company uses to determine if there is objective evidence of an impairment loss include: (i) significant financial difficulty of the issuer or debtor; (ii) a breach of contract, such as a default or delinquency in interest or principal payments; (iii) the Company, for economic or legal reasons relating to the borrower’s financial difficulty, grants to the borrower a concession that the lender would not otherwise consider; (iv) it becomes probable that the borrower will go bankrupt or undergo any other financial reorganization; (v) the disappearance of an active market for that financial asset because of financial difficulties; or (vi) observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot be yet identified with the individual financial assets in the portfolio, including: ● adverse changes in the payment status of borrowers in the portfolio; and ● national or local economic conditions that correlate to defaults on the assets in the portfolio. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognized in the statement of operations. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Company may measure impairment based on an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in the statement of operations. |
Derivative financial instruments | 2.6. Derivative financial instruments Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument. Although the Company uses derivative financial instruments for economic hedge purposes, it has not applied hedge accounting. Any gains or losses arising from changes in the fair value of derivatives during the year are recognized immediately in the statement of income (Note 23). The fair value of derivative financial instruments is disclosed in Note 6. |
Trade receivables | 2.7. Trade receivables Trade receivables are amounts due from customers for merchandise and farms sold in the ordinary course of business. If collection is expected in one year or less, trade receivables are classified as current assets, otherwise, they are presented as non-current assets. Trade receivables not related to the sale of farms are initially recognized at fair value, and subsequently, measured at amortized cost under the effective interest rate method, less an allowance for doubtful accounts, as appropriate. Trade receivables related to the sale of farms for which the amount of cash receivable is contractually determined in Reais, equivalent to a quantity of soybean bags, are designated at fair value through profit or loss upon initial recognition. The amount of the receivable is subsequently remeasured at each balance sheet date by applying to the contractual committeed quantity of sacks of soybean by the quotation of soybean for future delivery at the maturity date of each installment (or based on estimates and quotations of brokers when there is no quotation of soybean for future delivery on a specific maturity date) and by translating the resulting U.S. dollars amount to Reais using the U.S. dollar exchange rate for future delivery on the same maturity date (considering that future soybean quotations are denominated in US$) and finally discounting the resulting amount to present value. The gain (loss) on remeasurement of the receivable is recognized in Financial income and expenses under “Gain (loss) on remeasurement of receivables from sale of farms” (Note 23). |
Inventories | 2.8. Inventories Agricultural products from biological assets are measured at fair value when they are ready to be harvested, less selling expenses, when they are reclassified from biological assets to inventories. Seeds, manures, fertilizers, pesticides, fuel, lubricants, warehouse and sundry materials are measured at average acquisition cost. Upon identification of the loss of quality of products which affect their sales (either due to storage, load, transportation and other events related to the operation), these products are counted and physically segregated.In addition, an internal process to record, approve, dispose of or allocate inventories, is initiated through the approval of the responsible officers duly formalized in the Company’s management system. An adjustment to net realizable value of agricultural products is recognized when the fair value recorded in inventories is higher than the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs to sell. Adjustments to net realizable value are recognized in the statement of income in “Adjustment to net realizable value of agricultural products after harvest” |
Biological assets | 2.9. Biological assets The Company’s and its subsidiaries’ biological assets consist mainly of the cultivation of soybean, corn, sorghum, sugarcane and beef cattle, which are measured at fair value less costs to sell. (a) Agricultural activity The fair value of biological assets is determined upon their initial recognition and at each subsequent balance sheet date. Gains and losses arising from the changes in fair value of biological assets is determined as the difference between fair value and the costs incurred in the plantation and treatment of crops of biological assets and agricultural products at the balance sheet date, and are recorded in the statement of income in “Changes in fair value of biological assets”. In certain circumstances, the estimated fair value less cost to sell approximate cost incurred at that moment, especially when only a minor biological transformation has taken place or when no material impact is expected from that biological transformation on the price. Biological assets continue to be recorded at their fair value. The sugarcane crops productive cycle is five years on average, and for a new cycle to start depends on the completion of the previous cycle. In this regard, the current cycle is classified as biological asset in current assets, and the amount of the constitution of the bearer plant (bearer of the other cycles) are classified as permanent culture in property, plant and equipment . The calculation methodology used to estimate the fair value of the biological asset “sugarcane” was the discounted cash flows at a rate reflecting the risks and the terms of the operation. As such, the Company projected the future cash flows in accordance with the projected productivity cycle, taking into consideration the estimated useful life of each area, the prices of Total Sugar Recoverable (“ATR”), estimated productivity and the related estimated costs of production, including the cost of land, harvest, loading and transportation for each hectare planted. The soybean, corn and sorghum are temporary cultures, in which the agricultural product is harvested after a period of time spanning from 110 to 180 days after the planting date, depending on the cultivation, variety, geographic location and climate conditions. The calculation methodology used to estimate the fair value of the grains was the discounted cash flows at a rate reflecting the risk and terms of operations. As such, we projected the future cash flows taking into consideration the estimated productivity, costs to be incurred based on the Company’s budget or on new internal estimates and market prices. The commodities’prices available in futures markets, were obtained from quotes on the following boards of trade: CBOT (“Chicago Board of Trade”), B3 (Bolsa, Brasil, Balcão), and NYBOT (“New York Board of Trade”). For the agricultural products not quoted in these of markets, we used the prices obtained through direct market surveys or disclosed by specialized companies. We considered the related logistic expenses and tax discounts in order to arrive at the prices of each of these products in each production unit of the Company. As mentioned above, the fair value of the biological assets disclosed in the balance sheet was determined using valuation techniques – the discounted cash flows method. The data used in these methods is based on the information observed in the market, whenever possible, and if unavailable, a certain level of judgment is required to establish such fair value. Judgment is used to determine the data to be used, e.g. price, productivity and production cost. Changes in the assumptions on these inputs might affect the fair value of biological assets. There were no changes in the valuation methodology used to estimate the fair value of the biological assets. (b) Cattle raising activity On June 14, 2016, the Company started raising cattle, which typically consists of producing and selling beef calves after weaning, which characterizes the activity as breeding. For segregation purposes, when applicable, the Company classifies its cattle herd into: cattle (current assets), which can be sold as a biological asset for meat production; and breeding cattle (non-current assets), which is used in farm operations to generate other biological assets. Up to the reporting date the Company only had cattle, which includes calves, heifers, cows and bulls. The fair value of beef cattle is determined based on market prices, given the existence of an active market. Gain or loss from changes in the fair value of beef cattle is recognized in profit or loss for the period (Note 9). The Company considered the prices in the cattle market in Bahia state, considered the principal market, and the metrics used in the market. Accordingly, beef and breeding cattle are measured based on weight and the age bracket of animals. |
Investment properties | 2.10. Investment properties The Company’s business strategy aims mainly at the acquisition, development, exploration and sale of rural properties where agricultural activities can be developed. The Company acquires rural properties believed to have significant potential of appreciation in value by means of maintenance of assets and development of profitable agricultural activities. By acquiring rural properties, the Company seeks to implement higher value added crops and transform these rural properties with investments in infrastructure and technology, in addition to entering into lease contracts with third parties. Based on this strategy, whenever the Company considers that its rural properties are profitable, it sells these rural properties to realize capital gains. The land of rural properties purchased by the Company is measured at acquisition cost, which does not exceed its net realizable value, and is presented in “Non-current assets”. The fair value of each property is disclosed in Note 10. Buildings, improvements and opening of areas in investment properties are measured at historical cost, less accumulated depreciation, following the same criteria described for property, plant and equipment in Note 2.11. |
Property, plant and equipment | 2.11. Property, plant and equipment Property, plant and equipment is measured at historical cost less accumulated depreciation. Historical cost includes expenditures directly attributable to the acquisition of the items. Historical cost also includes borrowing costs related to the acquisition of qualifying assets. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured. All other repair and maintenance costs are recognized in profit or loss, as incurred. Depreciation is calculated using the straight-line method over their estimated useful lives, at the depreciation rates described below: Annual depreciation rates % Buildings and improvements 2-20 Equipment and facilities 10 Vehicles and agricultural machinery 13-20 Furniture and fixtures 10 Opening of areas 10-20 Permanent cultures 16-27 The residual amount and useful lives of property, plant and equipment are revised and adjusted, if appropriate, at the end of each year. An asset carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount exceeds its estimated recoverable amount. Gains and losses on disposals are determined by comparing the sale price with the carrying amount and are recognized in “Other operating income (expenses), net” in the statement of income. |
Intangible assets | 2.12. Intangible assets Intangible assets includes software license and acquired contractual rights and are amortized over their estimated useful life of 5 years. Costs associated with software maintenance are recognized as an expense as incurred. The Company has no intangible assets with indefinite useful life. |
Impairment of non-financial assets | 2.13. Impairment of non-financial assets Pursuant to IAS 36 – Impairment of Assets, assets with finite useful lives are reviewed for impairment indicators on each balance sheet date and whenever events or changes in circumstances indicate that the book value may not be recoverable. If any indication exists, the assets are tested for impairment. An impairment loss is recognized for the difference between the asset’s carrying amount and its recoverable amount. On June 30, 2018 and 2017, no indication of impairment of assets was identified. |
Trade accounts payables | 2.14. Trade accounts payables Trade account payables are obligations to pay for goods or services acquired from suppliers in the ordinary course of business. Trade accounts payables are classified as current liabilities if payment is due within one year or less, otherwise they are classified as non-current liabilities. |
Loans, financing and debentures | 2.15. Loans, financing and debentures Loans, financing and debentures are recognized initially at fair value, net of transaction costs incurred, and subsequently carried at amortized cost. Any difference between the procceds (net of transaction costs) and the settlement value is recognized in the statement of income over the agreement period using the effective interest rate method. Fees paid in raising credit facilities are recognized as transaction costs to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquididation services and amortized over the period of the facility to which it relates. Loans, financing and debentures are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months or longer after the balance sheet date. |
Provisions | 2.16. Provisions Provisions are recognized when the Company has a present, legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Contingent liabilities arising from labor, social security, tax, environmental, contractual, operating obligations and administrative and judicial claims are recorded at their estimated amount when the likelihood of loss in considered probable (Note 3.a). |
Current and deferred profit and social contribution taxes | 2.17. Current and deferred income tax and social contribution (a) Current income tax and social contribution Current income tax and social contribution are calculated applying a rate of 15%, plus surtax of 10% on taxable profit exceeding R$240 per annum for income tax, and 9% on taxable profit for social contribution on net profit. Income tax and social contribution loss carryforwards can be used to offset the payment of income tax and social contribution tax payable limited to 30% of annual taxable profit, except for the rural activity which may reach 100% of annual taxable profit. Tax loss carryforwards do not expire. As allowed by the Brazilian tax legislation, certain subsidiaries opted for a tax regime under which taxable profit is computed as a percentage of revenues. Under this regime, taxable profit for income and social contribution tax is calculated by applying a rate of 8% and 12% on gross revenue, respectively, on which the statutory rates for income and social contribution tax are applied. (b) Deferred income tax and social contribution Deferred income taxes are recognized for temporary differences between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. A deferred income tax liability is recognized for all the temporary differences, whereas deferred income tax assets are only recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized, including the recognition of a deferred tax asset related to unused tax loss carryforwards. Deferred tax assets and liabilities are classified as non-current. Income tax related to items directly recognized in equity are also recognized in equity. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year whae the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Suh rates are 25% for income tax and 9% for social contribution tax (Notes 16). |
Employee benefits | 2.18. Employee benefits a) Share-based payments The Company operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options and shares) of the Company. The cost of transactions settled with shares is recognized as expense for the year, jointly with a corresponding increase in equity during the year in which the conditions of performance and/or provision of services are met. The accumulated expenses recognized in connection with the equity instruments on each base date, until the date of acquisition, reflect the extent to which the acquisition period has expired and the best estimate of the Company and its subsidiaries as to the number of equity instruments to be acquired. The expense or reversal of expenses for each year represents the changes in accumulated expenses recognized in the beginning and end of the year. Expenses related to services that did not complete their acquisition period are not recognized, except for transactions settled with shares in which the acquisition depends on a market condition or on the non-acquisition of rights, which are treated as acquired, irrespective of whether the market condition or the condition of non-acquisition of rights is fulfilled or not, provided that all other conditions of performance and/or provision of services are met. When an equity instrument is modified, the minimum expense recognized is the expense that would have been incurred if the terms had not been modified. An additional expense is recognized in case of modification that raises the total fair value of the transaction paid for with shares or that otherwise benefits the employee, as measured on the date of modification. If an equity instrument is canceled, such instrument is treated as if it was fully acquired on the date of cancellation, and any expenses not yet recognized, relating to the premium, are recognized immediately in the profit or loss of the year. This includes any premium whose non-acquisition conditions under the control of the Company or the employee are not met. However, if the canceled plan is replaced by a new plan and substitute grants are generated, on the date it is granted, the canceled grant and the new plan will be treated as a modification of the original grant, as described in the previous paragraph. All cancellations of transactions with share-based payments will be treated the same. b) Profit sharing The Company provides employees a profit-sharing program, under which all of the employees have the right to receive annual bonuses based on the Company’s consolidated financial and operational results, and also on personal goals set for individual employees. Profit sharing is usually recognized at year end, when the amount can be reliably measured by the Company. |
Capital | 2.19. Capital Common shares are recorded in equity. Incremental costs directly attributable to issue new shares or options are shown in equity as a deduction of the issued amount, net of taxes. |
Revenue recognition | 2.20. Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities, including leases. Revenue is presented net of taxes, returns and discounts. The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the Company’s activities, as described below. The Company’s estimates are based on past experience, taking into consideration the type of customer, the type of transaction and transaction specifics. a) Sale of goods Revenue from grain and sugarcane sales is recognized when the significant risks and benefits of ownership of the goods are transferred to the purchaser, usually when the products are delivered to the purchaser at the determined location, according to the agreed sales terms. In the case of grains, the Company normally enters into forward contracts under which the Company is entitled to determine the sale price for the total or partial volume of grains sold, through the delivery date, based on formulas contractually agreed upon. In some cases, the formulas used to determine the sales price are estated in U.S. Dollars. The Reais amount is also contractually determined, which is based on the exchange rate applicable a couple of days prior to settling the transaction. The price can also be adjusted by other factors, such as humidity and other technical characteristics of grains. Upon the delivery of grains, revenue is recognized based on the price determined for each client considering the foreign exchange rate on the delivery date. After the grains are delivered to the client, the quality and final weight areassessed, and the final price of the transaction is agreed upon, which result in adjusting the original contractual amounts, and any foreign exchange rate variation through the settlement date. b) Sale of farms Gain on sale of farms is not recognized until (i) the sale is completed, (ii) the Company has determined that it is probable the buyer will pay, (iii) the amount of revenue can be measured reliably, and (iv) the Company has transferred all risks and rewards to the buyer, and does not have a continuing involvement. The result from sales of farms is presented in the statement of operations as “Gain on sale of farms” net of the related cost. c) Sale of beef cattle Revenue from the sale of beef cattle is recognized when the material risks and the benefits of cattle ownership are transferred to the buyer, usually when the cattle is delivered to the buyer at the specified place, in accordance with the terms of the sale agreed upon. As for the sale of beef cattle, the company’s operation consists basically of a project involving the production and sale of beef calves after weaning (this process is called rearing). However, some animals that prove to be infertile may be sold to meat packers for slaughtering. The pricing for sale of rearing cattle is based on the price of the arroba of fed cattle in the respective market (the arroba price is verified on the transaction date), the animal weight, plus the premium related to the category. The sale of animals for slaughtering, in turn, considers the price of the arroba of fed cattle or heifer/cow on the date of sale in the respective market, applied to carcass yields. |
Financial income and expenses | 2.21. Financial income and expenses Includes interest and foreing exchange variations arising from loan and financing contracts, marketable securities, trade accounts receivable, gain (loss) on remeasurement of receivables from sale of farms and machinery, gains and losses for changes in fari value of derivative financial instruments, as well as discounts obtained from suppliers for the prepayment trade accounts payable. |
Leases | 2.22. Leases a) Company as lessee The Company classifies lease of farms as operating leases to the extent that a significant portion of the risks and benefits of the ownership is held by the lessor and classifies lease of sugarcane crops as financial leases to the extent that a significant portion of the risks and benefits of ownership is transferred to the lessee. The lease expenses are initially recorded as part of biological assets and recorded as cost of sales of agricultural products upon the sale. The lease payments are measured based on a future quotation of soybean and as such, do not have a fixed value, but rather depend on the soybean quotation on a future date, are considered contingent payments. b) Company as lessor Revenues from operating lease of land are recognized on a straight line basis over the leasing period. When the lease price is defined in quantities of agricultural products or livestock, the lease amount is recognized considering the price of the agricultural product or livestock effective at the balance sheet date or at the date established in the contract, as the case may be. The amounts received in advance are recognized in current liabilities under the caption “Other liabilities”. Leasing arrangements under which a significant portion of the risks and benefits of ownership of the land are retained by the lessor are classified as operating leases. |
Distribution of dividends | 2.23. Distribution of dividends Distribution of dividends to the Company’s stockholders are recognized as a liability in the Company’s financial statements at year-end based on the Company’s articles of incorporation. Any amount that exceeds the minimum legally required is only approved at the shareholders’ general meeting according to the proposal submitted by the Board of Directors. The tax benefit of interest on equity is recognized in the statement of operations. |
Adjustment to present value - assets and liabilities | 2.24. Adjustment to present value – assets and liabilities Assets and liabilities arising from long-term operations and short-term operations for which the financing component could have a material effect, are adjusted to present value. Accordingly, certain elements of assets and liabilities are adjusted to present value, based on discount rates, which aim to reflect the best estimates of time value of money. The discount rate used varies depending on the characteristics of the assets and liabilities including the risk and terms of the specific item, and it is based on the average rate of loans and financing obtained by the Company, net of inflationary effects. |
Basic and diluted earnings per share | 2.25. Basic and diluted earnings per share Basic earnings per share is calculated by dividing the available profit by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by dividing the available profit by the weighted average number of common shares outstanding during the year plus the weighted number of additional shares that would be issued on conversion of all dilutive potential common shares into common shares, such as stock options and warrants. |
Statement of cash flows | 2.26. Statement of cash flows The statement of cash flows is prepared and presented in accordance with IAS 7. Interest paid is classified as cash flows from financing activities since it represents costs for obtaining financial resources, and are not considered cash flows from operating activities of the Company. |
New standards, amendments and interpretations | 2.27. New standards, amendments and interpretations New or revised pronouncements applied for the first time in the current year The Company understands that the amendments and revisions of the rules issued by the International Accounting Standards Board (IASB), to be mandatorily adopted for the first time in the current fiscal year, did not produce significant impacts on its financial statements. Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). The Company has provided the information for both the current and the comparative period in Note 2.4.. Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealized Losses The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of deductible temporary difference related to unrealized losses. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. The Company applied amendments retrospectively. However, their application has no effect on the Company’s financial position and performance as the Company has no deductible temporary differences or assets that are in the scope of the amendments. Annual Improvements Cycle - 2014-2016 Amendments to IFRS 12 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in IFRS 12 The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale. This amendment has no impact as the Company does not have any investment classified as held for sale. Standards issued but not yet in force as of June 30, 2018 The Company decided not to the early adopt any standard, interpretation or alteration that has been issued but has not become effective yet. Since the Company’s fiscal year begins on July 1, the standards to be mandatorily applied as from January 1, 2018 will be adopted by the Company in the fiscal year beginning July 1, 2018.The nature and effectiveness of each of the new standards and alterations are described below: a) IFRS 9 – Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments, which replaces IAS 39 – Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 combines the three aspects of the project for accounting for financial instruments: classification and measurement, asset impairment and hedge accounting. The standard is applicable for fiscal years beginning on January 1, 2018. Starting July 1, 2018, the Company will apply IFRS 9 – Financial Instruments as the basis for recognition, classification and measurement of financial instruments. The main aspects of the new standard applicable to the Company are described below: i. Classification and measurement of financial assets IFRS 9 contains a new approach for the classification and measurement of financial assets that reflect the business model under which assets and their cash flow characteristics are managed. It contains three main categories to classify financial instruments: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss. The standard eliminates the categories existing in IAS 39 of financial instruments held to maturity, loans and receivables and financial instruments available for sale. This change of nomenclature does not alter how financial instruments are subsequently measured; it only impacts the disclosure of financial instruments by category in the financial statements, as shown below: 6/30/2018 Category Financial Instruments Consolidated IAS 39 IFRS 9 Trade accounts receivable 57,185 Loans and receivables Amortized cost Transactions with Related Parties 1,660 Loans and receivables Amortized cost Trade accounts payable 48,518 Financial liabilities at amortized cost Amortized cost Loans and financing 255,805 Financial liabilities at amortized cost Amortized cost ii. Impairment The new standard replaced the “incurred losses” model of IAS 39 for a prospective model of “expected credit losses.” This will require significant judgment on how changes in economic factors affect expected credit losses. Such provisions will be measured in credit losses expected for 12 months and credit losses expected for the lifetime of the asset, that is, credit losses that result from all possible default events throughout the expected life of a financial instrument. The Company selected to apply the simplified approach of IFRS 9 – Financial Instruments to measure the credit losses expected throughout the expected life of the financial instrument. During the year, the Company carried out a detailed evaluation of the impact of IFRS 9 aspects. The conclusion of the evaluation is that there is no relevant impact on the adoption of IFRS 9 on impairment of financial asstes due to the fact that the Company already analysis each client individualy for expected losses and the level of overdue receivables is not relevant. b) IFRS 15 – Revenue from Contracts with Customers IFRS 15 was issued in May 2014, amended in April 2016 and establishes a five-step model to account for revenues from agreements with clients. According to IFRS 15, revenue is recognized for a value that reflects the consideration to which an entity expects to be entitled in exchange for the transfer or goods or services to a client. The new standard on revenue will replace all current requirements for recognition of revenue in accordance with IFRS. Starting from July 1, 2018, the Company will adopt the IFRS 15 – Revenue from Contracts with Customers. The complete retrospective application or modified retrospective application of the standard will be required for annual periods starting from January 1, 2018.The Company plans to adopt the new standard on the required date based on the modified retrospective method. The new standard provides the principles to be applied by an entity to determine the measurement of revenue and how and when it must be recognized, based on five steps: i) identification of the agreements with clients; ii) identification of the performance obligations envisaged in the agreements; iii) determination of the transaction price; iv) allocation of the transaction price to the performance obligations envisaged in the agreements; and v) recognition of revenue when the performance obligation is fulfilled. The changes establish the criteria for measurement and registration of sales, as they were effectively made with due presentation, as well as registration of the values to which the Company is entitled in the operation, considering any estimates of impairment loss. In preparing to adopt IFRS 15, the Company considered the following: (a) Sales of agricultural products For contracts with customers in which the sale of agricultural prodcuts is generally expected to be the only performance obligation, adoption of IFRS 15 is not expected to have any impact on the Company’s revenue and profit or loss. The Company expects the revenue recognition to occur at a point in time when control of the agricultural products is transferred to the customer, generally on delivery. (b) Sales of farms For sales of land, revenue is recognized when risks and benefits of ownership of the land is transferred to the customer. This is considered to be the only performance obligation and therefore, according to IFRS 15, revenue is recognized at a point in time, generally when possession of the land is granted to the customer. (c) Presentation and disclosure requirements The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS. The presentation requirements represent a significant change from current practice and increases the volume of disclosures required in the Company’s financial statements. As required by IFRS 15, the Company will disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. It will also disclose information about the relationship between the disclosure of disaggregated revenue and revenue information disclosed for each reportable segment. The Company and its subsidiaries analyzed the new standard and identified no relevant impacts on their financial statements, except for a higher level of disclosures, considering the nature of their sale transactions, in which performance obligations are clear, transaction price definition and the transfer of control over assets is not complex (it is made to the extent the ownership and benefits are transferred to the beneficiaries based on defined market prices). c) IFRS 16 – Leases IFRS 16 was issued in January 2016 and replaces IAS 17 – Leases, IFRIC 4 – Determining Whether an Arrangement Contains a Lease, SIC-15 – Operating leases – Incentives, and SIC-27 – Evaluating the Substance of Transactions in the Legal Form of a Lease. IFRS 16 establishes the principles for recognition, measurement, presentation and disclosure of leases and requires that lessees book all leases using a single model in the balance sheet, similar to the accounting of financial leases under IAS 17. IFRS 16 will be applicable for annual periods beginning on January 1, 2019.Lessees may choose to adopt the standard using a complete retrospective application or a modified retrospective application. The temporary provisions of the standard allow certain exemptions. The Company performed a preliminary analysis and concluded that the standard should produce impacts on its financial statements. The quantitative analysis of the potential effect of IFRS 16 on its financial statements will be made during the fiscal year ending on June 30, 2019, considering this standard will be adopted on July 01, 2019. d) IFRS 2 Classification and Measurement of Share-based Payment Transactions — Amendments to IFRS 2 The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The amendments are effective for annual periods beginning on or after January 01, 2018, with early application permitted. The Company does not expect any impacts on its consolidated financial statements. e) Transfers of Investment Property — Amendments to IAS 40 The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use. Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with IAS 8 is only permitted if it is possible without the use of hindsight. Effective for annual periods beginning on or after January 01, 2018. Early application of the amendments is permitted and must be disclosed. The Company will apply amendments when they become effective. However, since the current practice is in line with the clarifications issued, the Company does not expect any effect on its consolidated financial statements. f) IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration The Interpretation clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration. Entities may apply the amendments on a fully retrospective basis. Alternatively, an entity may apply the Interpretation prospectively to all assets, expenses and income in its scope that are initially recognized on or after: (i) The beginning of the reporting period in which the entity first applies the interpretation Or (ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the interpretation. The Interpretation is effective for annual periods beginning on or after January 01, 2018. Early application of interpretation is permitted and must be disclosed. However, since the current practice is in line with the Interpretation, the Company does not expect any effect on its consolidated financial statements. g) IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 and does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: ● Whether an entity considers uncertain tax treatments separately ● The assumptions an entity makes about the examination of tax treatments by taxation authorities ● How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates ● How an entity considers changes in facts and circumstances An entity must determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The interpretation is effective for annual reporting periods beginning on or after January 01, 2019, but certain transition reliefs are available. The Company will apply interpretation from its effective date. The Company is assessing the potential effect of the amendments on its consolidated financial statements. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Operations | |
Schedule of estimated fair value of the assets and liabilities | The estimated fair value of the assets and liabilities transferred to Moroti on February 9, 2018 is shown below: Book value Effect of fair value measurement Fair value Assets 134,446 11,502 145,948 Accounts receivable, inventories and other receivables 4,616 36 4,652 Recoverable taxes 13 (13 ) — Investment properties 129,750 11,202 140,952 Other property and equipment other than land 67 277 344 Liabilities 18,968 6,404 25,372 Trade payables, taxes and other liabilities 254 6,322 6,576 Loans 18,714 82 18,796 Fair value of net spun-off assets 115,478 5,098 120,576 |
Basis of preparation and pres_3
Basis of preparation and presentation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Basis Of Preparation And Presentation | |
Schedule of consolidated financial statements | The consolidated financial statements comprise the financial statements of Brasilagro and its subsidiaries as of June 30, 2018 and 2017, as described bellow: Ownership % 2018 2017 2016 Jaborandi Agrícola Ltda 99.99 99.99 99.99 Imobiliária Jaborandi 99.99 99.99 99.99 Cremaq 99.99 99.99 99.99 Engenho de Maracaju 99.99 99.99 99.99 Araucária 99.99 99.99 99.99 Mogno 99.99 99.99 99.99 Cajueiro 99.99 99.99 99.99 Ceibo 99.99 99.99 99.99 Flamboyant 99.99 99.99 99.99 Palmeiras (a) 99.99 99,99 — Moroti (a) 99.99 — — FIM Guardian Exclusive Fund (b) — 100.00 100.00 (a) Subsidiary incorporaded during the Cresca spin-off process, as per Note 1.1. (b) During the year, the Company extinguisned its exclusive investment fund (FIM Guardian). |
Schedule of depreciation rate | Depreciation is calculated using the straight-line method over their estimated useful lives, at the depreciation rates described below: Annual depreciation rates % Buildings and improvements 2-20 Equipment and facilities 10 Vehicles and agricultural machinery 13-20 Furniture and fixtures 10 Opening of areas 10-20 Permanent cultures 16-27 |
Schedule of reclassifications on the statement of financial position | This change of nomenclature does not alter how financial instruments are subsequently measured; it only impacts the disclosure of financial instruments by category in the financial statements, as shown below: 6/30/2018 Category Financial Instruments Consolidated IAS 39 IFRS 9 Trade accounts receivable 57,185 Loans and receivables Amortized cost Transactions with Related Parties 1,660 Loans and receivables Amortized cost Trade accounts payable 48,518 Financial liabilities at amortized cost Amortized cost Loans and financing 255,805 Financial liabilities at amortized cost Amortized cost |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Financial Risk Management | |
Schedule of assumptions and scenarios | The assumptions and scenarios are as follows: 2018 Devaluation in reais R$ Appreciation in reais R$ Probable scenario Scenario I -25% Scenario II -50% Scenario III +25% Scenario IV+ 50% Soybean - R$ / bag – July 12, 2018 (CBOT) 74.81 56.11 37.41 93.51 112.22 Soybean - R$ / bag – July 13, 2018 (CBOT) 72.98 54.74 36.49 91.23 109.47 Soybean - R$ / bag – July 27, 2018 (CBOT) 73.89 55.42 36.95 92.36 110.84 Soybean - R$ / bag – October 26, 2018 (CBOT) 74.81 56.11 37.41 93.51 112.22 Ethanol - R$ / mˆ3 – July 31, 2018 (BM&F) 1,610.00 1,207.50 805.00 2,012.50 2,415.00 Ethanol - R$ / mˆ3 – August 31, 2018 (BM&F) 1,680.00 1,260.00 840.00 2,100.00 2,520.00 Ethanol - R$ / mˆ3 – September 28, 2018 (BM&F) 1,705.00 1,278.75 852.50 2,131.25 2,557.50 U.S. dollar – October 26, 2018 3.92 2.94 1.96 4.90 5.88 Interest (% rate) – July 2, 2018 6.41 % 4.81 % 3.21 % 8.01 % 9.62 % Interest (% rate) – August 27, 2018 6.51 % 4.88 % 3.26 % 8.14 % 9.77 % Interest (% rate) – May 10, 2019 7.53 % 5.65 % 3.77 % 9.41 % 11.30 % Interest (% rate) – August 15, 2023 11.09 % 8.32 % 5.55 % 13.86 % 16.64 % 2017 Devaluation in reais R$ Appreciation in reais R$ Probable scenario Scenario I -25% Scenario II -50% Scenario III +25% Scenario IV+ 50% Soybean - R$ / bag – July 2017 (CBOT) 68.72 51.54 34.36 85.90 103.08 Cattle - R$ / – October 2017 (BMF) 124.58 93.44 62.29 155.73 186.87 Soybean - R$ / bag – November 2017 (CBOT) 69.64 52.23 34.82 87.05 104.46 Soybean - R$ / bag – April 2018 (CBOT) 3.60 2.70 1.80 4.50 5.40 Soybean - R$ / bag – June 2018 (CBOT) 4.44 3.33 2.22 5.55 6.66 Soybean - R$ / bag – July 2018 (CBOT) 71.31 53.48 35.66 89.14 106.97 U.S. dollar – August 3, 2017 3.33 2.50 1.67 4.16 5.00 U.S. dollar – July 28, 2017 3.33 2.50 1.67 4.16 5.00 U.S. dollar – May 30, 2018 3.49 2.62 1.75 4.36 5.24 |
Schedule of a summary of possible scenarios of loans and receivables | In addition, the Company presents a summary of possible scenarios for the following 12 months of the Company’s financial instruments. Reliable sources of index disclosure were used for the rates used in the “probable scenario”. Scenario I - Probable Scenario I - Possible Scenario II - Remote Scenario I - Possible Scenario II – Remote (*) Annual average rates At June 30, 2018 Decrease 25% Decrease 50% Increase 25% Increase 50% Operation Risk Balance (R$) Notional Rate Balance (R$) Rate Balance (R$) Rate Balance (R$) Rate Balance (R$) Rate Balance (R$) Rate Investment CDI 81,213 — 6.39% (983) 7.60% (1,543) 5.70% (3,086) 3.80% 1,543 9.50% 3,086 11.40% Marketable securities - LFT SELIC 10,086 — 6.40% (122) 7.61% (193) 5.71% (383) 3.81% 193 9.51% 383 11.42% Marketable securities - USD CDI 19,355 — 6.39% (234) 7.60% (368) 5.70% (735) 3.80% 368 9.50% 735 11.40% Investment USD 22,700 3,079 3.86 (416) 3.99 (3,072) 2.99 (6,145) 2.00 3,072 4.99 6,145 5.99 Total cash, cash equivalents 133,354 3,079 (1,755) (5,176) (10,349) 5,176 10,349 Financing for Working Capital USD (486) (126) 3.86 (66) 3.99 485 2.99 970 2.00 (485) 4.99 (970) 5.99 Financing for Working Capital CDI (141,642) — 6.39% (1,714) 7.60% 2,691 5.70% 5,382 3.80% (2,691) 9.50% (5,382) 11.40% Financing for Machinery and Equipment – FINAME TJLP (1,317) — 6.60% — 6.60% 22 4.95% 43 3.30% (22) 8.25% (43) 9.90% Financing for sugarcane TJLP (11,893) — 6.60% — 6.60% 196 4.95% 392 3.30% (196) 8.25% (392) 9.90% Total financing (b) (155,338) (126) (1,780) 3,394 6,787 (3,394) (6,787) Araucária Farma III Soybean bags 8,527 121,692 80.60 — 80.60 (2,132) 60.45 (4,264) 40.30 2,132 100.75 4,264 120.89 Araucária Farm IV Soybean bags 9,017 129,499 86.08 — 86.08 (2,254) 64.56 (4,509) 43.04 2,254 107.60 4,509 129.12 Araucária Farm V Soybean bags 50,594 717,840 93.27 — 93.27 (12,649) 69.96 (25,297) 46.64 12,649 116.59 25,297 139.91 Jatobá Farm Gleba 12A Soybean bags 8,657 120,000 88.14 — 88.14 (2,164) 66.10 (4,329) 44.07 2,164 110.17 4,329 132.21 Total receivables from farms 76,795 1,089,031 — — (19,199) (38,399) 19,199 38,399 Derivative, net Grains 805 (1,819,921) (a) — (a) 12,365 (a) 23,068 (a) (9,041) (a) (19,744) (a) Derivative, net USD (2,079) (35,800) (a) — (a) 28,857 (a) 58,799 (a) (31,027) (a) (60,970) (a) Derivative, net Ethanol 216 (2,100) (a) — (a) 1,105 (a) 1,997 (a) (675) (a) (1,566) (a) Derivative, net Swap (14) 64,810 (a) — (a) 331 (a) 321 (a) 344 (a) 350 (a) Margin - LFT Socopa SELIC 20,790 — 6.40% (249) 7.60% (395) 5.70% (790) 3.80% 395 9.50% 790 11.40% Total derivatives 19,718 (249) 42,263 83,395 (40,004) (81,140) Cresca, net USD (1,450) (376) 3.86 (51) 3.99 375 2.99 751 2.00 (375) 4.99 (751) 5.99 Cresud, net USD 267 69 3.86 8 3.99 (69) 2.99 (138) 2.00 69 4.99 138 5.99 Total related parties (1,183) (307) (43) 306 613 (306) (613) (*) SOURCE Risks: Bloomberg (a) For sensitivity analysis of derivative positions, forward rates and prices at each maturity date of the transaction were used, according to the table above. (b) The sensitivity analyses do not consider financing transactions with fixed rate. |
Schedule of financial liabilities by maturity | The amounts disclosed in the table are the discounted contractual cash flows, in addition to the net derivative financial instruments, whose fair value is disclosed. With respect to payables for the purchase of farms all amounts due at June 30, 2018 and 2017 are payable upon the fulfillment of certain conditions precedent by the sellers and as a result its payment date cannot be determined and have been considered as payable on demand in the table below and no interest or other financial charges have been considered. Note Less than one year From one to two years From three to five years Above five years Total At June 30, 2018 Trade payable 14.1 48,518 — — — 48,518 Financial instruments derivatives 6 10,489 2,145 — — 12,634 Loans, financing and debentures 15 70,088 21,298 143,793 40,841 276,020 Payable for purchase of farms 13 — — — — — Transactions with related parties 27 1,831 — — — 1,831 At June 30, 2017 Trade payable 14.1 37,805 — — — 37,805 Financial instruments derivatives 6 3,978 — — — 3,978 Loans and financing 15 56,620 16,428 15,129 23,998 112,175 Payable for purchase of farms 13 24,646 — — — 24,646 Transactions with related parties 27 4,784 — — — 4,784 |
Schedule of net debt of loans, acquisitions payable and trade accounts payables | According to the following table, the Company presents net debt of loans, acquisitions payable and trade accounts payables and the financial leverage index. 2018 2017 Loans, financing, debentures and finance leases (Note 15) 276,020 112,175 Total payable for purchase of farms (Note 13) — 24,646 Total trade accounts payables (Note 14.1) 48,518 37,805 Total derivatives (Note 6) 12,634 3,978 337,172 178,604 Less: cash and cash equivalents (Note 5.1) (104,314 ) (43,798 ) Less: marketable securities (Notes 5.2) (29,441 ) (24,060 ) (133,755 ) (67,858 ) Net debt 203,417 110,746 Total equity 755,864 667,468 Financial leverage 26.91 % 16.59 % |
Schedule of main assets and liabilities that are measured at fair value, as well as the level of hierarchy | The following table presents the Company’s main financial assets and liabilities, their classification and the fair value, as well as the level of hierarchy: June 30, 2018 June 30, 2017 Consolidated – thousand R$ Note Fair value through profit or loss Loans and receivables Total Fair value Level 2 Fair value through profit or loss Loans and receivables Total Fair value Level 2 Assets Current Cash equivalents 5.1 81,213 — 81,213 81,213 28,639 — 28,639 28,639 Marketable securities (d) 5.2 11,215 — 11,215 11,215 6,972 — 6,972 6,972 Trade accounts receivable, net 7.1 — 57,185 57,185 57,185 — 35,167 35,167 35,167 Receivable from sale of farm, net 7.1 21,372 — 21,372 21,372 9,136 — 9,136 9,136 Derivative financial instruments (c) 6 28,299 — 28,299 7,293 4,090 — 4,090 670 Transactions with related parties 27 — 1,660 1,660 1,660 — 1,298 1,298 1,298 Noncurrent Marketable securities 5.2 18,226 — 18,226 18,226 17,088 — 17,088 17,088 Trade accounts receivable, net 7.1 — — — — — 100 100 100 Receivable from sale of farm 7.1 55,423 — 55,423 55,423 22,592 — 22,592 22,592 Derivative financial instruments (c) 6 4,053 — 4,053 4,053 1 — 1 — Transactions with related parties 27 — — — — — 35,640 35,640 35,640 Total 219,801 58,845 278,646 257,640 88,518 72,205 160,723 157,302 June 30, 2018 June 30, 2017 Consolidated – thousand R$ Note Designated at fair value through profit or loss Financial liabilities at amortized cost Total Fair value Designated at fair value through profit or loss Financial liabilities at amortized cost Total Fair value Liabilities Current Trade accounts payable 14.1 — 48,518 48,518 48,518 — 37,805 37,805 37,805 Loans, financing and debentures (a) 15 — 68,412 68,412 68,412 — 55,001 55,001 55,001 Finance lease sugarcane crop - Partnership III (b) 15 1,676 — 1,676 N/A 1,619 — 1,619 N/A Derivative financial instruments (c) 6 10,489 — 10,489 9,214 3,978 — 3,978 809 Payables for purchase of farms 13 — — — — — 24,646 24,646 24,646 Noncurrent Loans, financing and debentures (a) 15 — 187,393 187,393 187,393 — 33,095 33,095 33,095 Finance lease sugarcane crop - Partnerships III and IV (b) 15 18,539 — 18,539 N/A 22,460 — 22,460 N/A Derivative financial instruments (c) 6 2,145 — 2,145 2,145 — — — — Total 32,849 304,323 337,172 315,682 28,057 150,547 178,604 151,356 (a) The carrying amount of loans and financing in the financial statements, approximate the fair value, since the rates of these instruments are substantially subsidized and there is no intention of early settlement; (b) Finance lease is measured at fair value in Level 3. The pricing takes into account the average ATR for lease agreements disclosed by Consecana (138 Kg ATR / TC), at the Consecana price for the respective month, at a weighting of 50% EHC and 50% EAC. (c) The Derivative transactions negotiated in an active market in the amount of R$1,275 (R$3,169 at June 30, 2017) are measured at fair value at Level 1, and over-the-counter transactions are measured at Level 2, as presented in the table above. |
Cash and cash equivalents and_2
Cash and cash equivalents and marketable securities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents And Marketable Securities | |
Schedule of cash and cash equivalents | CDI 2018 2017 Cash and banks — 23,101 15,159 Repurchase agreements (a) 55% a 65% 15,242 28,639 Bank deposit certificates 99% to 100% 33,137 — Letter of Mercantile Lease 101% to 102% 32,834 — 104,314 43,798 (a) The Company uses this type of investment for funds that will be redeemed in less than 30 days, according to the projected cash flow and also in case of need to invest funds that were received after banking hours. |
Schedule of Marketable securities | 2018 2017 Investment fund — 2 Bank deposit certificates (a) 1,129 — Banco do Nordeste (BNB) (b) — 5,502 Treasury financial bills (c) 10,086 1,468 Total current 11,215 6,972 Bank deposit certificates (a) 9,588 8,982 Banco do Nordeste (BNB) (a) / (b) 8,638 8,106 Total noncurrent 18,226 17,088 Marketable securities 29,441 24,060 (a) Indexed to rates from 98% to 102,5% of the CDI – Interbank Deposit Certificate. (b) The securities in BNB consist of CDBs provided as collateral for financing from BNB Bank, to be held up to the end of the contract in July 2019. (c) Treasury bonds indexed to the Selic rate. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Financial Instruments Tables Abstract | |
Schedule of derivative financial instruments | June, 20 2018 Risk Maturity Outstanding derivative instruments Counter party Receivable Payable Net balance Notional (’000) Call option (put option) Unit Currency US$ October -18 Options FC Stone 1,490 (2,484 ) (994 ) (4,800 ) — US$ Currency US$ June -18 Dollar – 1st Futures BM&F 1 (1,086 ) (1,085 ) (31,000 ) — US$ Current 1,491 (3,570 ) (2,079 ) (35,800 ) — US$ Noncurrent — — — — — US$ Total US$ risk 1,491 (3,570 ) (2,079 ) (35,800 ) — US$ Soybean CBOT July-18 Soybean Options Trading Companies/Banks/CBOT — (7 ) (7 ) — (77,107 ) Bags Soybean CBOT October-18 Soybean Options Trading Companies/Banks/CBOT — (1,275 ) (1,275 ) — (1,294,946 ) Bags Soybean CBOT July-18 Futures Soybean Trading Companies/Banks/CBOT 5,451 (5,569 ) (118 ) — — Bags Soybean CBOT October-18 Futures Soybean Trading Companies/Banks/CBOT 351 — 351 — (16,975 ) Bags Soybean CBOT July-19 Futures Soybean Trading Companies/Banks/CBOT 3,999 (2,145 ) 1,854 — (430,893 ) Bags Ethanol BM&F July-18 Futures Ethanol BM&F 42 — 42 — (300 ) mˆ3 Ethanol BM&F August-18 Futures Ethanol BM&F 94 — 94 — (900 ) mˆ3 Ethanol BM&F September-18 Futures Ethanol BM&F 80 — 80 — (900 ) mˆ3 Current (bags) 5,802 (6,851 ) (1,049 ) — (1,389,028 ) Bags Current (Ethanol) 216 — 216 — (2,100 ) Cubic Meters Noncurrent (bags) 3,999 (2,145 ) 1,854 — (430,893 ) Bags Total commodities risk 10,017 (8,996 ) 1,021 — (1,822,021 ) Interest R$ January-18 DI SWAP x Dollar Banco Safra — — — — — BRL Interest R$ August-23 Pre-DI SWAP Bradesco 54 — 54 14,810 — BRL Interest R$ July-18 Pre-DI SWAP ABC — (12 ) (12 ) 10,000 — BRL Interest R$ August-18 Pre-DI SWAP Itaú BBA Jaborandi — (11 ) (11 ) 20,000 — BRL Interest R$ May-19 Pre-DI SWAP Itaú BBA Jaborandi — (45 ) (45 ) 20,000 — BRL Current — (68 ) (68 ) 50,000 — BRL Noncurrent 54 — 54 14,810 — BRL Total interest rate risk 54 (68 ) (14 ) 64,810 — BRL Total risks 11,562 (12,634 ) (1,072 ) 29,010 (1,822,021 ) Margin deposit 20,790 — 20,790 Current 28,299 (10,489 ) Noncurrent 4,053 (2,145 ) P &L at June 30, 2018 (Note 23) 62,965 (68,300 ) June, 20 2017 Risk Maturity Outstanding derivative instruments Counter party Receivable Payable Net balance Notional (’000) Call option (put option) Unit Currency US$ August-17 BM&F BM&F 15 — 15 2,000 — US$ Currency US$ July- 7 NDF FC Stone 423 — 423 (2,000 ) — US$ Currency US$ January-18 Options FC Stone — (638 ) (638 ) (2,500 ) — US$ Currency US$ May-18 Accumulator Macquarie 4 — 4 (30 ) — US$ Currency US$ June-18 Options FC Stone 154 (171 ) (17 ) (1,000 ) — US$ Current 596 (809 ) (213 ) (3,530 ) — US$ Noncurrent — — — — — US$ Total US$ risk 596 (809 ) (213 ) (3,530 ) — US$ Soybean CBOT July-17 Soybean Futures Trading Companies/Banks/CBOT 1,377 (2,219 ) (842 ) — — Bags Soybean CBOT November-17 Soybean Futures Trading Companies/ Banks /CBOT 5 — 5 — (24,946 ) Bags Soybean CBOT April-18 Soybean Options Trading Companies/ Banks /CBOT — (408 ) (408 ) — (113,393 ) Bags Soybean CBOT June-18 Soybean Options Trading Companies/ Banks /CBOT — (514 ) (514 ) — (72,571 ) Bags Soybean CBOT July-18 Soybean Futures Trading Companies/ Banks /CBOT 1 — 1 — (335 ) Bags Live Cattle BM&F October-17 Live Cattle Futures BM&F 14 — 14 — 660 Heads Current (bags) 1,382 (3,141 ) (1,759 ) — (210,910 ) Bags Current (heads) 14 — 14 — 660 Heads Noncurrent (bags) 1 — 1 — (335 ) Bags Total commodities risk 1,397 (3,141 ) (1,744 ) — (210,585 ) Interest R$ November-17 Pre-DI SWAP Itaú BBA 89 — 89 7,000 — US$ Current 89 — 89 7,000 — US$ Noncurrent — — — — — US$ Total interest rate risk 89 — 89 7,000 — US$ Daily adjustments – Currency — (15 ) (15 ) Daily adjustments – Commodities — (13 ) (13 ) Total risks 2,082 (3,978 ) (1,896 ) 3,470 (210,585 ) Margin deposit 2,009 — 2,009 Current 4,090 (3,978 ) Noncurrent 1 — P&L at June 30, 2017 (Note 23) 62,226 (44,791 ) |
Accounts receivable and others
Accounts receivable and others (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable And Others Tables Abstract | |
Schedule of accounts receivable and others | Note 2018 2017 Trade accounts receivable 7.1 78,557 44,303 Recoverable taxes 7.2 9,479 7,126 Advances to suppliers 6,711 1,866 Other receivables 429 731 Total current 95,176 54,026 Trade accounts receivable 7.1 55,423 22,692 Recoverable taxes 7.2 17,847 20,124 Judicial deposits 25.c 1,505 1,789 Total noncurrent 74,775 44,605 |
Schedule of trade accounts receivable | 2018 2017 Sale of sugarcane (c) 36,742 23,637 Sale of grains (d ) 14,757 11,958 Sale of cattle 589 — Leases of land 5,747 184 Sale of machinery 216 249 Sale of farms (e) 21,372 9,136 79,423 45,164 Allowance for doubtful accounts (a) (866 ) (861 ) Total current 78,557 44,303 Sale of machinery — 100 Sale of farms (e) 55,423 22,592 Total non-current 55,423 22,692 a) Changes in the allowance for doubtful accounts: At June 30, 2016 1,163 Accrual of provision 49 Write-off or reversal (351 ) At June 30, 2017 861 Accrual of provision 284 Write-off or reversal (279 ) At June 30, 2018 866 The estimated losses in allowance for doubtful accounts were recorded as selling expenses in the statement of operations. The allowance for doubtful accounts is based on the analysis of accounts, individually by client, and the amounts included in the allowance are written-off when these amounts are no longer expected to be recovered. b) Breakdown of receivable by maturity 2018 2017 Falling due: Up to 30 days 34,305 8,020 31 to 90 days 19,611 15,025 91 to 180 days 9,159 100 181 to 360 days 15,316 20,967 Over 360 days 55,423 22,692 Past due: Up to 30 days 106 22 31 to 90 days 60 169 91 to 180 days 2 5 181 to 360 days 8 1 Over 360 days 856 855 134,846 67,856 c) Sale of sugarcane The Company has two sugarcane supply agreements. The first agreement was with Brenco Companhia Brasileira de Energia Renovável and the second agreement is included in the partnership IV Agreement, as mentioned in the Explanatory Note on Commitments, whose credit risks are assessed in accordance with the internal policy, as presented in Note 4.8b. All the risks were covered during the fiscal year ended on June 30, 2018, and there is no record of default until the date of disclosure of these Financial Statements. d) Sale of grains For the years ended June 30, 2018 and 2017, corn and soybean were sold mainly to the customers Bunge Alimentos, Amaggi and Cargill Agrícola. |
Schedule of total amounts sold, collected and receivables from sale of farms | Total amounts sold, collected and receivables from sale of farms are as follows: Araucária I Araucária II Araucária III Araucária IV Araucária V Jatobá I Consolidated At June 30, 2016 1,930 14,411 — — — — 16,341 Sale amount (a) — — 12,451 16,987 — 10,145 39,583 Receipts (1,950 ) (8,188 ) (2,124 ) (3,009 ) — (878 ) (16,149 ) Restatement of nominal value (23 ) (4,733 ) 412 273 — — (4,071 ) Unwind of present value adjustment 43 2,913 (1,950 ) (3,256 ) — (1,726 ) (3,976 ) At June 30, 2017 — 4,403 8,789 10,995 — 7,541 31,728 Sale amount (a) — — — — 52,405 — 52,405 Receipts — (4,994 ) (2,493 ) (4,250 ) (5,267 ) (877 ) (17,881 ) Restatement of nominal value — 142 1,542 1,510 6,632 2,187 12,013 Unwind of present value adjustment — 449 689 762 (3,176 ) (194 ) (1,470 ) At June 30, 2018 — — 8,527 9,017 50,594 8,657 76,795 Current 21,372 Non-current 55,423 (a) Information on sales and the amounts received in the fiscal year ended June 30, 2018 is presented in Notes 1.2 and 19.b |
Schedule of recoverable taxes | 2018 2017 Withholding income tax (IRRF) on financial investments to be offset 3,843 4,940 Income tax losses and social contribution carryforwards 148 — Other recoverable taxes and contributions 5,488 2,186 Total current (a) 9,479 7,126 ICMS recoverable 8,429 7,658 ICMS recoverable on property, plant and equipment 409 684 Non-cumulative PIS and COFINS to be offset 6,837 7,031 IRRF on financial investments to be offset 2,172 4,751 Total noncurrent 17,847 20,124 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventories Abstract | |
Schedule of inventories | 2018 2017 Soybean 50,289 6,837 Corn 6,247 6,819 Other harvests 1,153 50 Agricultural products 57,689 13,706 Raw materials 11,933 8,952 69,622 22,658 |
Schedule of adjustment to recoverable value of inventories of agricultural products | At June 30, 2016 (4 ) Provision for recoverable value of agricultural products, net (1,655 ) Realization as cost of sales 447 At June 30, 2017 (1,212 ) Provision for recoverable value of agricultural products, net 883 Realization as cost of sales 325 At June 30, 2018 (4 ) |
Biological assets (Tables)
Biological assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Biological Assets | |
Schedule of biological assets | 2018 2017 Production cattle 34,053 13,435 Grain plantation 2,203 1,385 Sugarcane plantation 59,790 36,875 Total 96,046 51,695 Current 61,993 38,260 Noncurrent 34,053 13,435 |
Schedule of area (hectares) to be harvested | The area (hectares) to be harvested corresponding to the biological assets is as follows: Planted area (Hectares) 2018 2017 Grains 1,322 — Sugarcane (a) 29,955 32,286 31,277 32,286 (a) For sugarcane the area considered above refers to the total to be harvested in all the future cuts, considered in the cash flow for calculation of fair value of biological assets. This area includes the hectares leased from Brenco and Partnership IV, according to contracts executed on May 8, 2015 and February 7, 2017, respectively. |
Schedule of changes in agricultural activity | Changes in agricultural activity Grains Sugarcane At June 30, 2016 — 22,285 Expenditures with plantation 98,314 — Expenditures with tilling — 63,513 Lease contract – Partnership IV — 17,479 Fair value variation (a) (Note 18) 4,302 11,532 Harvest of agricultural produce (101,231 ) (77,934 ) At June 30, 2017 1,385 36,875 Expenditures with plantation 81,080 — Expenditures with tilling — 130,197 Fair value variation (a) (Note 18) 54,892 43,952 Harvest of agricultural produce (136,396 ) (151,234 ) Effect of conversion 1,242 — At June 30, 2018 2,203 59,790 (a) For sugarcane, the area considered above refers to the total to be harvested in all future cuts, considered in the cash flow for calculating the fair value of biological assets. This area includes hectares leased from Brenco as per the agreement signed on May 8, 2015, and the total of 15,000 hectares related to an agricultural partnership, as per the agreement signed on February 7, 2017. |
Schedule of changes in cattle raising activity | Changes in cattle raising activity Heads of cattle (in number) Cattle for production At July 1, 2016 4,148 5,241 Acquisition/birth costs 4,729 6,476 Cattle-raising costs — 5,667 Sales (136 ) (312 ) Deaths (97 ) (69 ) Change in fair value (Note18) — (3,568 ) At June 30, 2017 8,644 13,435 Acquisition/birth costs 14,680 14,311 Handling costs — 9,415 Sales (2,006 ) (4,332 ) Deaths (325 ) (476 ) Change in fair value (Note18) — 239 Effect of conversion — 1,461 At June 30, 2018 20,993 34,053 |
Schedule of quantitative data about cattle raising activity | Quantitative data about cattle raising activity, expressed in heads of cattle Work animals At June 30, 2017 8,644 At June 30, 2018 20,993 |
Schedule of fair value hierarchy | Fair value hierarchy at June 30, 2018 Amount Fair value Sugarcane 59,790 Level 3 Cattle 34,053 Level 2 Grains 2,203 Level 1 |
Schedule of changes in fair value in profit or loss | Changes in fair value in profit or loss 2018 2017 2016 Grains 54,892 4,302 (32,165 ) Sugarcane 43,952 11,532 19,533 Cattle 239 (3,568 ) — 99,083 12,266 (12,632 ) |
Investment properties noncurr_2
Investment properties noncurrent (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investment Properties Noncurrent | |
Schedule of investment properties noncurrent | Land – Farms Buildings and improvements Opening of area Total in operation Construction in progress 2018 2017 Opening balance 300,487 26,369 53,021 379,877 9,922 389,799 287,867 Acquisitions 2,231 152 1,390 3,773 20,088 23,861 121,672 Acquisitions – corporate restructuring 113,158 4,141 — 117,299 23,653 140,952 — Disposals (10,676 ) (116 ) — (10,792 ) (1 ) (10,793 ) (8,728 ) Transfers — 1,979 6,943 8,922 (8,922 ) — — (-) Depreciation / amortization — (983 ) (11,916 ) (12,899 ) — (12,899 ) (11,012 ) Effect of conversion 19,879 710 36 20,625 5,607 26,232 — Net book balance 425,079 32,252 49,474 506,805 50,347 557,152 389,799 At June 30, 2018 Total cost 425,079 39,925 145,397 610,401 50,347 660,748 480,496 Accumulated depreciation — (7,673 ) (95,923 ) (103,596 ) — (103,596 ) (90,697 ) Net book balance 425,079 32,252 49,474 506,805 50,347 557,152 389,799 Annual depreciation rates (weighted average) - % — 4-20 10-20 — — — |
Schedule of fair values of the investment properties | Four farms owned by the Company are held as guarantee for loans and financing according to Note 15, representing 33% of total investment properties. The fair values of the investment properties are as follows: Hectares Fair value* Cost value Farm State 6/30/2018 6/30/2016 Real estate Acquisition 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Jatobá Bahia 30,981 30,981 Jaborandi Ltda Mar-07 340,942 360,758 56,963 59,057 Alto Taquari Mato Grosso 5,394 5,394 Mogno Ltda Aug-07 158,726 119,706 35,962 35,783 Araucária Goiás 5,534 6,493 Araucária Ltda Apr-07 137,796 172,327 43,198 53,001 Chaparral Bahia 37,182 37,184 Cajueiro Ltda Nov-07 312,256 352,391 82,038 79,794 Nova Buriti Minas Gerais 24,212 24,212 Flamboyant Ltda Dec-07 32,145 23,407 23,116 21,998 Preferência Bahia 17,799 17,799 Cajueiro Ltda Sep-08 58,171 64,392 27,735 30,082 São José Maranhão 17,566 17,566 Ceibo Ltda Feb-17 156,798 156,981 106,387 105,138 Moroti (a) Boqueron Paraguay 59,490 — Agropecuaria Moroti S/A Feb-18 188,946 — 166,477 — 198,158 139,629 1,385,780 1,249,962 541,876 384,853 (*) Considered Level 3 for fair value. (a) Property consolidated during the Cresca spin-off process, see Note 1.1. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments | |
Schedule of changes in investments | a) Changes in investments At June 30, 2016 102,955 Share of loss in a joint venture (4,425 ) Effect from currency translation adjustment 2,896 Balance at June 30, 2017 101,426 Write-off of investment due to spin-off (115,478 ) Share of profit in a joint venture 14,671 Effect from currency translation adjustment (533 ) Balance at June 30, 2018 86 |
Schedule of reconciliation with the book value of the investment in the consolidated financial statements | Cresca’s summarized financial information, based on the financial statements prepared in accordance with IFRS as of and for years ended June 30, 2018 and 2017 and the reconciliation with the book value of the investment in the consolidated financial statements considering the fair value adjustments on the acquisition date are presented below: 2018(*) 2017 Assets 3,371 281,529 Current 3,356 9,705 Cash and cash equivalents 333 503 Accounts receivable, inventories and other receivables 3,023 8,976 Contract of purchase of land — 226 Noncurrent 15 271,824 Recoverable taxes — 3,311 Investment properties — 268,267 Other noncurrent 15 246 Liabilities 3,200 78,677 Current 3,200 1,295 Trade payables, taxes and loans 3,200 1,295 Noncurrent — 77,382 Including taxes and loans — 77,382 Total net assets 171 202,852 Company’s interest – 50% 50 % 50 % Company’s interest in net assets at estimated fair value 86 101,426 2018 2017 Revenue 83 12,916 Cost of products sold (684 ) (14,404 ) Gross revenue (expenses) (601 ) (1,488 ) Selling expenses (34 ) (891 ) Administrative expenses (374 ) (979 ) Other profit/expenses 437 (92 ) Finance profit 32,340 (578 ) Finance costs 16 (5,257 ) Loss before tax 31,784 (9,285 ) Income and social contribution taxes (2,443 ) — Loss for the year 29,341 (9,285 ) Company’s interest – 50% 14,671 (4,643 ) Amortization of fair value adjustment on the purchase date (shareholders’ loans) — 218 Equity method 14,671 (4,425 ) (*) Balance sheet after spin-off that took place on February 9, 2018, as described in Note 1.1. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Buildings and improvements Equipment and facilities Agricultural vehicles and machinery Furniture and fixtures Total in operation Construction in progress Sugarcane Total property, plant and equipment At June 30, 2017 Opening balance 28 1,858 6,182 495 8,563 4 19,236 27,803 Acquisitions (a) — 687 2,633 108 3,428 340 33,012 36,780 Disposals — (129 ) (324 ) (3 ) (456 ) — — (456 ) Transfers 169 116 — — 285 (285 ) — — Depreciation (5 ) (321 ) (755 ) (95 ) (1,176 ) — (8,206 ) (9,382 ) Accounting balance, net 192 2,211 7,736 505 10,644 59 44,042 54,745 At June 30, 2017 Total cost 921 5,473 20,752 1,254 28,400 59 64,138 92,597 Accumulated depreciation (729 ) (3,262 ) (13,016 ) (749 ) (17,756 ) — (20,096 ) (37,852 ) Accounting balance, net 192 2,211 7,736 505 10,644 59 44,042 54,745 At June 30, 2018 Opening balance 192 2,211 7,736 505 10,644 59 44,042 54,745 Acquisitions (a) 10 5,458 4,634 318 10,420 52 32,385 42,857 Acquisitions – corporate restructuring — 215 74 55 344 — — 344 Disposals — (55 ) (235 ) (6 ) (296 ) — (137 ) (433 ) Depreciation (5 ) (856 ) (1,214 ) (110 ) (2,185 ) — (10,498 ) (12,683 ) Accounting balance, net 197 6,973 10,995 762 18,927 111 65,792 84,830 At June 30, 2018 Total cost 931 11,091 25,225 1,621 38,868 111 97,907 136,886 Accumulated depreciation (734 ) (4,118 ) (14,230 ) (859 ) (19,941 ) — (32,115 ) (52,056 ) Accounting balance, net 197 6,973 10,995 762 18,927 111 65,792 84,830 Annual depreciation rates (weighted average) - % 2-20 10 13-20 10 16-27 |
Payables for purchase of farms
Payables for purchase of farms (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Payables For Purchase Of Farms Tables Abstract | |
Schedule of payables for purchase of farms | Restatement index 2018 2017 Nova Buriti Farm (a) *IGP-M — 22,085 São José Farm — — 2,561 — 24,646 * IGP-M –Market General Price Index a) On August 30, 2017, the total debt was R$22,126, when the deed of Nova Buriti farm was prepared and consequently a partial amount for the farm was paid in the amount of R$5,802. Of the remaining balance, R$1,500 was paid on October 18, 2017, R$3,665 was paid on January 10, 2018, and R$1,886 was paid on May 29, 2018. During the negotiation, the total price of the farm was renegociated, fully waiving inflation adjustment (IGP-M – General Market Price Index), which would be payable by the Company. The amount of R$9,273 was recognized as financial income in the quarter ended September 30, 2017, see Note 23. |
Trade accounts payable and ot_2
Trade accounts payable and others (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Trade Accounts Payable And Others | |
Schedule of trade accounts payable and others | Note 2018 2017 Trade accounts payable 14.1 48,518 37,805 Taxes payable 6,142 5,209 Dividends payable 30,008 6,509 Advances to customers 21,201 5,631 Other liabilities 576 461 Total current 106,445 55,615 Taxes payable 11,298 1,520 Total noncurrent 11,298 1,520 |
Schedule of balance of trade accounts payable | At June 30, 2018, the Company’s balance of trade accounts payable is as follows: 2018 2017 Raw materials and services 25,859 24,618 Operating lease transactions with third parties 22,659 13,187 48,518 37,805 |
Loans, financing, debentures _2
Loans, financing, debentures and finance leases (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Loans And Financing Abstract | |
Schedule of loans and financing | Bank Final Maturity Annual interest rates and charges -% Guarantee 2018 2017 Current Financing for agricultural costs ABC and Itaú September/18 Fixed rate 7.22% to 9% — 31,847 10,703 Financing for agricultural costs (USD) Itaú November/18 Fixed rate 7.22% — 11,486 — Bahia Project Financing (a) BNB and HSBC June/19 Fixed rate 4% to 9% Jatobá and Chaparral Farms 3,131 15,236 Working Capital Financing Rabobank May/18 1.40% to 2.30% + 100% of CDI — — 15,782 Working Capital Financing (USD) (a) Itaú August/17 3.49% — — 5,031 Financing of Machinery and Equipment - FINAME Rabobank and Itaú June/19 TJLP + 3.73% Machinery and Equipment 630 1 Financing of sugarcane Itaú, Rabobank, Banco do Brasil and Santander June/19 TJLP + 2.70 Morro Vermelho and Chaparral Farms 21,318 8,248 Finance lease sugarcane crop (Note 26.c) Partnership III November/18 6.62% 1,676 1,619 70,088 56,620 Noncurrent Financing Bahia Project (a) BNB and HSBC August/23 Fixed rate 4% to 9% Jatobá and Chaparral Farms 27,146 30,862 Financing of Machinery and Equipment - FINAME Rabobank and Itaú June/24 TJLP + 3.73% Machinery and Equipment 5,411 1,208 Financing of sugarcane Itaú, Rabobank, Banco do Brasil and Santander December/23 TJLP + 2.70 Morro Vermelho and Chaparral Farms 13,194 1,025 Debentures Insurance company July/23 106.5% and 110% of CDI Chaparral Farm 141,642 — Finance lease sugarcane crop (Note 26.c) Partnership III November/18 6.62% — — 1,665 Finance lease sugarcane crop (Notes 1.1 and 26.d) Partnership IV January/32 R$/Kg 0.6462 — 18,539 20,795 205,932 55,555 276,020 112,175 |
Schedule of changes in loans and financing | Changes in loans and financing during the year ended June 30, 2018 are as follows: June 30, 2016 Contracting Payment of principal Payment of Interest Appropriation of interest Foreign exchange difference Present value adjustment June 30, 2017 Finance for agricultural cost 35,087 10,000 (34,826 ) (2,085 ) 2,527 — — 10,703 Bahia Project(a) Financing 57,099 1,607 (13,131 ) (3,954 ) 4,477 — — 46,098 Working Capital Financing — 15,000 — (106 ) 888 — — 15,782 Working Capital (USD) Financing — 4,661 — — 94 276 — 5,031 Financing of Machinery and Equipment – FINAME 114 1,201 (109 ) (5 ) 8 — — 1,209 Sugarcane Financing 1,772 7,000 (242 ) (177 ) 920 — — 9,273 Finance Lease - Sugarcane Crop - Partnership III 5,773 — — — — — (2,489 ) 3,284 Finance lease sugarcane crop — 29,049 — — — — (8,254 ) 20,795 99,845 68,518 (48,308 ) (6,327 ) 8,914 276 (10,743 ) 112,175 June 30, 2017 Contracting Payment of principal Payment of Interest Appropriation of interest Foreign exchange difference Present value adjustment June 30, 2018 Finance for agricultural cost 10,703 62,734 (34,062 ) (1,447 ) 4,003 1,402 — 43,333 Bahia Project Financing (a) 46,098 13,904 (27,622 ) (4,706 ) 2,603 — — 30,277 Working Capital Financing 15,782 16,250 (31,523 ) (1,893 ) 1,384 — — — Working Capital (USD) Financing 5,031 — (4,703 ) (83 ) 18 (263 ) — — Financing of Machinery and Equipment – FINAME 1,209 4,700 — (404 ) 461 75 — 6,041 Sugarcane Financing 9,273 32,557 (7,498 ) (1,814 ) 1,994 — — 34,512 Debentures — 140,165 — — 1,477 — — 141,642 Finance Lease - Sugarcane Crop - Partnership III 3,284 — — — — — (1,608 ) 1,676 Finance lease sugarcane crop 20,795 — — — — — (2,256 ) 18,539 112,175 270,310 (105,408 ) (10,347 ) 11,940 1,214 (3,864 ) 276,020 (a) Financing to raise funds for opening of areas and improvements in Jatobá and Chaparral farms. |
Income and social contributio_2
Income and social contribution taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income And Social Contribution Taxes | |
Schedule of changes in deferred income tax and social contribution tax assets and liabilities | The changes in deferred income tax and social contribution tax assets and liabilities for the periods ended June 30, 2018 and 2017 and without taking into consideration offsetting of balances in the same tax jurisdiction, are as follows: 2018 2017 Assets Noncurrent Tax loss carryforwards (NOL) 43,442 58,458 Biological assets 5,942 2,401 Financial lease 2,103 — Contingency, bonuses and fair value 11,125 6,162 Hedge 364 635 Provision for doubtful acoorents 668 624 Difference in cost of farms 170 170 Provision of other accounts payable and receivable 1,794 2,918 65,608 71,368 Liabilities Noncurrent Biological assets 13,386 2,308 Finance lease 548 — Contingency, bonuses and fair value 3,574 — Surplus on investment 1,733 — Costs of transactions 499 — Provision of residual value and useful life of PPE assets 1,633 1,397 Accelerated depreciation of assets for rural activity 11,493 13,883 32,866 17,588 Net balance 32,742 53,780 |
Schedule of net change in deferred income tax | The net change in deferred income tax is as follows: At June 30, 2016 55,594 Tax losses (4,820 ) Adjustments in biological assets and agricultural products 2,182 Provisions for contingency and fair value (2,043 ) Hedge (192 ) Allowance for doubtful accounts 176 Onerous agreements 2,918 Accelerated depreciation (35 ) At June 30, 2017 53,780 Tax losses (15,016 ) Adjustments in biological assets and agricultural products (7,543 ) Financial lease 1,555 Provisions for contingency and fair value 1,389 Hedge (271 ) Surplus on investment (Note 1.1) (1,733 ) Costs of transactions (499 ) Allowance for doubtful accounts 44 Provision for other accounts payable and receivable (1,124 ) Accelerated depreciation 2,154 Total without effect from conversion 32,736 Effect of conversion 6 At June 30, 2018 32,742 |
Schedule of estimated years of realization of deferred tax assets | The estimated years of realization of deferred tax assets are as follows: 2018 2019 20,721 2020 1,973 2021 1,935 2022 2,370 2023 to 2028 38,609 65,608 |
Schedule of income and social contribution tax expenses | 2018 2017 2016 Income before income and social contribution taxes 152,257 33,259 9,440 Combined nominal rate of income tax and social contribution taxes – % 34 % 34 % 34 % (51,767 ) (11,308 ) (3,210 ) Share of loss in a Joint Venture 4,988 (1,504 ) (174 ) Management bonus (2,331 ) (2,025 ) (1,524 ) Share-based incentive plan - ILPA (208 ) — — Nondeductible expenses (135 ) (709 ) (61 ) Profit or loss of joint venture abroad — (378 ) — Net effect of subsidiaries taxed whose profit is computed as a percentage of gross revenue (*) 19,121 10,320 3,931 Net effect of spin-off of joint venture abroad (Note 1.1) 4,778 — — Other permanent addition (365 ) (345 ) (413 ) Income and social contribution taxes for the year (25,919 ) (5,949 ) (1,451 ) Current (4,875 ) (4,135 ) (15,998 ) Deferred (21,044 ) (1,814 ) 14,547 (25,919 ) (5,949 ) (1,451 ) Effective tax rate -17 % -18 % -15 % (*) For some of our real estate subsidiaries, profit tax is measured based on the regime whereby profit is computed as a percentage of gross revenue, i.e., income tax is determined on a simplified base to calculate the taxable profit (32% for lease revenues, 8% for sale of farms and 100% for other earnings). This results effectively in taxing the profit of subsidiaries at a rate lower than if taxable income were based on accounting records. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity | |
Schedule of capital (number of shares) | a) Capital (number of shares) Shareholder 2018 2017 Cresud S.A.C.I.F.Y.A. (a) 23,291,500 23,291,500 Board of Directors 8,431,700 161,900 Executive Board 168,267 159 Officers 8,599,967 162,059 Treasury 3,086,748 3,254,556 Other 21,910,701 30,180,801 Total shares of paid-up capital 56,888,916 56,888,916 Total outstanding shares 21,910,701 30,180,801 Outstanding shares as percentage of total shares (%) 39 53 (a) Of this amount, 140,450 shares are held by Agro Managers S.A. and 1,000 shares are held by Agro Managers, subsidiaries of Cresud S.A. |
Schedule of dividends | 2018 2017 Profit for the year (a) 126,338 27,310 (-) Constitution of legal reserve (5% of net profit) (6,317 ) (1,366 ) Adjusted net profit 120,021 25,944 (-) Mandatory minimum dividends - 25% of adjusted net profit (30,005 ) (6,486 ) (-) Additional dividends proposed (10,995 ) (6,486 ) Proposed dividends (41,000 ) (12,972 ) Set-up of reserve for investments and expansion 79,021 12,972 Total paid-in capital (per thousand shares) 56,889 56,889 (-) Treasury shares (per thousand shares) (3,087 ) (3,255 ) (=) Free float (per thousand shares) 53,802 53,634 Dividend per share (R$) 0.76 0.24 |
Schedule of changes in treasury shares | Changes in treasury shares in the year are as follows: Treasury shares Number of shares Amount (R$) At June 30, 2016 3,344,211 37,203 Acquisitions 1,345,400 15,551 Cancellations (1,337,684 ) (14,881 ) Transfer to Board of Executive Officers – 3 rd (97,371 ) (1,076 ) At June 30, 2017 3,254,556 36,797 Acquisitions 50,300 610 Transfer to Board of Executive Officers – 2 nd rd (218,108 ) (2,199 ) At June 30, 2018 3,086,748 35,208 |
Schedule of subscription warrants | The detailed information of the second issue market value of these subscription warrants is shown in the table below: Second issue BrasilAgro 2018 2017 Price of share - R$ 13.55 12.20 Maturity (years) 15 15 Maturity (day/month/year) 27/04/2021 4/27/2021 Exercise price at year end - R$/share 19.57 18.75 Number of existing shares 56,888,916 56,888,916 Percentage of capital shares subject to conversion (percentage of new capital) - % 20 20 Number of outstanding shares and stock purchase warrants 256,000 256,000 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Information | |
Schedule of selected P&L, assets & liabilities information by segment | The selected P&L, assets e liabilities information by segment, which were measured in accordance with the same accounting practices used in the preparation of the financial statements, are as follows: June 30, 2018 Total Real estate Agricultural activity Other Not allocated Grains Sugarcane Cattle raising Net revenue 244,278 5,133 97,180 138,143 4,081 (259 ) — Gain on sale of farm 39,817 39,817 — — — — — Change in fair value of biological assets and agricultural products (Note 9) 99,083 — 55,584 43,952 239 (692 ) — (Impairment) of net realizable value of agriculturl products after harvest, net 883 — 905 — — (22 ) — Cost of sales (228,319 ) — (89,633 ) (134,028 ) (4,378 ) (280 ) — Gross profit 155,742 44,950 64,036 48,067 (58 ) (1,253 ) — Operating profit (expenses) Selling expenses (10,087 ) — (9,730 ) — (383 ) 26 — General and administrative expenses (34,945 ) — — — — — (34,945 ) Other operating expenses, net 35,432 — — — — — 35,432 Share of profit af a joint venture 14,671 — — — — — 14,671 Operating profit (loss) 160,813 44,950 54,306 48,067 (441 ) (1,227 ) 15,158 Net finance profit Finance income 129,323 20,843 12,388 18,208 — 18,501 59,383 Finance expenses (137,879 ) (5,158 ) (6,606 ) (20,597 ) — (18,261 ) (87,257 ) Profit (loss) before income and social contribution taxes 152,257 60,635 60,088 45,678 (441 ) (987 ) (12,716 ) Income and social contribution taxes (25,919 ) (20,616 ) (20,430 ) (15,531 ) 150 335 30,173 Net profit (loss) for the year 126,338 40,019 39,658 30,147 (291 ) (652 ) 17,457 Total assets 1,179,599 624,417 78,070 129,787 35,438 14,073 297,814 Total liabilities 423,735 — 73,610 52,310 — — 297,815 June 30, 2017 Total Real estate Agricultural activity Other Not allocated Grains Sugarcane Cattle raising Net revenue 146,911 — 68,971 73,658 369 3,913 — Gain on sale of farm 26,716 26,716 — — — — — Change in fair value of biological assets and agricultural products (Note 9) 12,266 — 4,302 11,532 (3,568 ) — — (Impairment) of net realizable value of agriculturl products after harvest, net (1,655 ) — (1,652 ) — — (3 ) — Cost of sales (136,362 ) — (59,770 ) (74,498 ) (156 ) (1,938 ) — Gross profit 47,876 26,716 11,851 10,692 (3,355 ) 1,972 — Operating profit (expenses) Selling expenses (6,676 ) (8 ) (6,144 ) — (80 ) (444 ) — General and administrative expenses (30,941 ) — — — — — (30,941 ) Other operating expenses, net (6,019 ) — — — — — (6,019 ) Share of loss af a joint venture (4,425 ) — — — — — (4,425 ) Operating profit (loss) (185 ) 26,708 5,707 10,692 (3,435 ) 1,528 (41,385 ) Net finance profit Finance income 110,090 8,276 9,901 8,254 — 1,292 82,367 Finance expenses (76,646 ) (8,057 ) (8,881 ) (921 ) — (9,097 ) (49,690 ) Profit (loss) before income and social contribution taxes 33,259 26,927 6,727 18,025 (3,435 ) (6,277 ) (8,708 ) Income and social contribution taxes (5,949 ) (9,155 ) (2,287 ) (6,128 ) 1,168 2,134 8,319 Net profit (loss) for the year 27,310 17,772 4,440 11,897 (2,267 ) (4,143 ) (389 ) Total assets 883,293 421,769 27,938 112,670 5,952 1,257 313,707 Total liabilities 215,825 41,090 10,703 33,353 — — 130,679 |
Schedule of non current asets and revenue | Revenues and non-current assets, excluding financial instruments, income tax and social contribution, deferred assets, post-employment benefits and rights arising from insurance contracts are distributed as follows: In Brazil Subsidiaries abroad (a) 2018 2017 2018 2017 Net income 218,224 137,397 26,054 9,514 Non-current assets 646,528 736,170 182,628 3,749 (a) The subsidiaries abroad are all located in Paraguay |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Revenues | |
Schedule of operating sales | a) Operating sales 2018 2017 2016 Sales of grains 99,875 71,272 62,878 Sales of sugarcane 142,037 75,986 85,916 Revenue from cattle raising 4,115 Lease 6,592 2,820 2,260 Other revenues 132 2,227 4,347 Gross operating revenue 252,751 152,305 155,401 Sales deductions Taxes on sales (8,473 ) (5,394 ) (8,273 ) Net revenue 244,278 146,911 147,128 |
Schedule of sale of farms | b) Sale of farms Araucária V At June 30, 2018 Jatobá I Cremaq Araucária III Araucária IV At June 30, 2017 Gross revenue from sale of farm (a) 52,406 52,406 8,419 4 9,866 13,731 36,016 Sales taxes (1,913 ) (1,913 ) (307 ) (146 ) (360 ) (501 ) (1,314 ) Cost of sale of farm (10,676 ) (10,676 ) (1,102 ) — (3 ) (3,884 ) (7,986 ) Gain from sale of farm 39,817 39,817 7,010 3,854 6,506 9,346 26,716 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Expenses By Nature | |
Schedule of expenses by nature | Cost of products sold Selling expenses General and administrative expenses Total Depreciation and amortization 22,406 — 816 23,222 Personnel expenses 4,265 2,223 24,133 30,621 Expenses with service provider 53,014 — 4,279 57,293 Leasing 7,799 — 689 8,488 Cost of agricultural products 130,188 — — 130,188 Freight and storage — 7,731 — 7,731 Allowance for doubtful accounts — 133 — 133 Maintenance, travel expenses and others 10,647 — 5,028 15,675 At June 30, 2018 228,319 10,087 34,945 273,351 Depreciation and amortization 14,326 — 701 15,027 Personnel expenses 4,579 1,058 21,199 26,836 Expenses with service provider 52,706 — 3,772 56,478 Leasing 11,089 — 728 11,817 Cost of agricultural products 50,024 — — 50,024 Freight and storage — 5,025 — 5,025 Allowance for doubtful accounts — 516 — 516 Sale of farm — 8 — 8 Maintenance, travel expenses and others 3,638 69 4,541 8,248 At June 30, 2017 136,362 6,676 30,941 173,979 Depreciation and amortization 21,211 — 746 21,957 Personnel expenses 7,320 — 19,135 26,455 Expenses with service providers 53,562 — 2,975 56,537 Leasing 7,385 — 788 8,173 Cost of agricultural products 41,924 — — 41,924 Freight and storage — 2,418 — 2,418 Allowance for doubtful accounts — (2,686 ) — (2,686 ) Losses on receivables — 3,000 — 3,000 Maintenance, travel expenses and other 3,312 — 5,300 8,612 At June 30, 2016 134,714 2,732 28,944 166,390 |
Management compensation (Tables
Management compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Management Compensation | |
Schedule of expenses with management compensation | The expenses with Management compensation were recorded under “General and administrative expenses”, as follows: 2018 2017 2016 Board of directors and executive board compensation 2,491 3,528 2,756 Bonuses 6,856 5,957 4,483 Total compensation 9,347 9,485 7,239 |
Schedule of changes in the stock option plan | The table below presents the changes in the stock option plan per grant: Second grant Third grant Total Outstanding on July 1, 2017 109,054 109,054 218,108 Exercised (109,054 ) (109,054 ) (218,108 ) Exercisable on June 30, 2018 — — |
Other operating income (expen_2
Other operating income (expenses), net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Operating Income Expenses Net | |
Schedule of other operating income (expenses), net | 2018 2017 2016 Gain/loss on sale of PPE (380 ) (479 ) 33 Reversal of management fee – Cresca (a) — (3,318 ) — Provision for legal claims (b) 387 (139 ) 2,213 Alto Taquari Farm (c) — 34 2,277 Surplus gain from spin-off (Note 1.1) 5,098 — (500 ) Write-off of effect of conversion of joint venture due to spin-off (Note 1.1) 30,616 — — Other (d) (289 ) (2,117 ) (1,211 ) 35,432 (6,019 ) 2,812 (a) On October 5, 2016, the Company entered into an agreement with the shareholder Carlos Casado S.A., which provides for the termination of the land development consultancy agreement. The termination of this agreement resulted in a reversal of revenue amounting to R$1,050. At December 31, 2016, the advisory agreement recorded under Intangible Assets,” in the amount of R$1,440, was derecognized. At June 30, 2017, the Company recognized that it should have received amounts net of taxes and recorded a loss of R$828 related to taxes levied on settlement of the agreement. (b) The amount recognized in June 2016 refers to the reversal of provision for INSS of foreign members of the Board of Directors. (c) In June 2016, the Company obtained a discount on the payment of acquisition of Alto Taquari Farm. (d) The amount in 2017 basically refers to the termination of the Chief Executive Officer’ employment contract, as per his resignation tendered at the Board of Directors’ Meeting held on August 18, 2016, in the amount of R$1,394, and to the payment of ICMS fine on undue credit in use and consumption operations, property, plant and equipment, diesel oil and agricultural inputs, in the amount of R$630. |
Financial income and expenses (
Financial income and expenses (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Financial Income And Expenses | |
Schedule of financial income and expenses | Notes 2018 2017 2016 Financial income Interest on marketable securities 4,341 15,383 39,509 Interest on receivable (a) 10,462 4,878 5,506 Monetary variations (i) 160 619 — Foreign exchange variation (ii) 12,058 11,166 8,933 Gain on remeasurement of receivables from sale of farms (iii) 39,337 15,818 22,499 Realized profit from derivative transactions (iv) 6 16,861 19,576 77,448 Unrealized profit from derivative transactions (v) 6 46,104 42,650 38,749 129,323 110,090 192,644 Financial expenses Marketable securities charges (1,372 ) (2,565 ) (9,884 ) Bank charges (685 ) (1,080 ) (1,405 ) Interest accrued (b) (28,768 ) (8,963 ) (8,202 ) Monetary variation (i) (346 ) (541 ) (3,164 ) Foreign exchange variation (ii) (11,792 ) (10,917 ) (8,738 ) Loss on remeasurement of receivables from sale of farms (iii) (26,616 ) (7,789 ) (12,649 ) Realized loss from derivative financial transactions (iv) 6 (23,968 ) (3,654 ) (72,675 ) Unrealized loss from derivative financial transactions (v) 6 (44,332 ) (41,137 ) (37,553 ) (137,879 ) (76,646 ) (154,270 ) Financial income (expense), net (8,556 ) 33,444 38,374 a) Mainly represented by financial income obtained from renegotiation of the Nova Buriti farm, in the amount of R$9,273, according to Note 13. b) The amount of R$16,563 refers to the waiver of 100% of the interest on agreements entered into with Cresca, see Note 1.1. |
Schedule of net balances | Net balances are as follows: 2018 2017 2016 Monetary variations (i) (186 ) 78 (3,164 ) Foreign exchange difference (ii) 266 249 195 Realization of present value on balance of accounts receivable (iii) 12,721 8,029 9,850 Realized (loss) profit derivative financial instruments (iv) (7,107 ) 15,922 4,773 Unrealized profit from Derivative financial instruments (v) 1,772 1,513 1,196 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings per share [abstract] | |
Schedule of earnings per share | 2018 2017 2016 Profit attributed to controlling shareholders 126,338 27,310 7,989 Weighted average number of common shares issued (thousands) 53,750 57,241 58,227 Effect from dilution – shares (a) 64 352 357 Weighted average number of common shares issued adjusted by the dilution effect 53,813 57,593 58,584 Basic earnings per share 2.3505 0.4771 0.1372 Diluted earnings per share 2.3477 0.4742 0.1364 |
Provision for legal claims (Tab
Provision for legal claims (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Provision For Legal Claims | |
Schedule of probable likelihood of loss | Probable likelihood of loss Labor Administrative Tax Civil Total At June 30, 2016 1,143 — 312 — 1,455 Additions 431 — — 619 1,050 Monetary restatement 138 — — 79 217 Reversal/payments (313 ) — (117 ) (698 ) (1,128 ) At June 30, 2017 1,399 — 195 — 1,594 Additions 131 300 — 22 453 Monetary restatement 173 — — — 173 Reversal/payments (713 ) (300 ) — — (1,013 ) At June 30, 2018 990 — 195 22 1,207 |
Scedule of contingencies | The contingencies are as follows: 2018 2017 Civil 11,232 10,719 Tax 4,858 4,315 Labor 964 1,514 Environmental 279 — 17,333 16,548 |
Scedule of judicial deposits | Judicial deposits 2018 2017 Labor 277 611 Tax 1,099 1,051 Civil 129 127 (Note 7) 1,505 1,789 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments | |
Schedule of gross sugarcane sales | For the year ended June 30, 2018, gross sugarcane sales of BrasilAgro to ETH Bioenergia reached R$81,375, representing 33.3% of the Company’s total gross revenue. 2018 2017 2016 Number Number Number (tons) Amount (tons) Amount (tons) Amount Gross revenue from sugarcane – ETH 842,960 81,375 720,548 59,811 1,075,183 85,916 |
Schedule of lease agreement | b) Lease agreement – Partnership (II) 2018 2017 2016 Lease agreement 1,877 2,081 2,150 |
Schedule of operating lease | 2018 2017 2016 Operating lease 3,407 1,017 127 |
Schedule of finance lease | 2018 2017 2016 Finance lease (sugarcane crop) 1,676 3,284 5,773 |
Schedule of finance lease Partnership | 2018 2017 Finance lease Partnership IV (a) / (b) 18,539 20,795 |
Schedule of gross sugarcane sales to Partnership IV | 2018 2017 Quantity Amount Quantity Amount Gross sugarcane sales Partnership IV 838,501 56,848 217,797 16,175 |
Transactions with related par_2
Transactions with related parties (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Transactions With Related Parties | |
Schedule of transactions with related parties | 2018 2017 Current assets Cresud (a) 303 1,298 Other (b) 1,357 — 1,660 1,298 Noncurrent assets Cresca (c) — 35,640 Current liabilities – trade accounts payable Trade accounts payable (d) 1,450 3,451 Cresud (a) 36 936 Cresca — 397 Ombu 332 — Other 13 — 1,831 4,784 (a) Expenses and revenue related to implementation of the budget and controls system and reimbursement of general expenses; (b) The amounts substantially refer to the total shares exercised under the Second and Third Programs, as detailed in Note 21. (c) On February 1, 2018, the Company resolved, at a Meeting of the Board of Executive Officers, to waive 100% of the interest earned on loan agreements and receivables pertaining to Cresca. On February 9, 2018, date of spin-off of the joint venture Cresca, the debt of US$5,727 (R$18,796) was transferred to Moroti (Note 1.1). (d) Acquisition of biological assets and other items related to the Palmeiras operation; |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Insurance | |
Schedule of liabilities covered by insurance | Below is the table of the liabilities covered by insurance and the related amounts at June 30, 2018: Insurance type Coverage - R$ Civil liability (D&O) 30,000 Civil, professional and general liability 5,000 Machinery 8,432 Fire/lightning/explosion/electrical damage (office) 775 Storage silo (Chaparral Farm) 13,900 58,107 |
Operations (Details)
Operations (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Feb. 09, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of subsidiaries [line items] | ||||
Assets | R$ 1179599 | R$ 883293 | ||
Investment properties | 557,152 | 389,799 | R$ 287867 | |
Liabilities | R$ 423735 | R$ 215825 | ||
Agropecuaria Moroti S.A. [Member] | Book Value [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Assets | R$ 134446 | |||
Accounts receivable, inventories and other receivables | 4,616 | |||
Recoverable taxes | 13 | |||
Investment properties | 129,750 | |||
Other property and equipment other than land | 67 | |||
Liabilities | 18,968 | |||
Trade payables, taxes and other liabilities | 254 | |||
Loans | 18,714 | |||
Fair value of net spun-off assets | 115,478 | |||
Agropecuaria Moroti S.A. [Member] | Effect Of Fair Value Measurement [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Assets | 11,502 | |||
Accounts receivable, inventories and other receivables | 36 | |||
Recoverable taxes | (13) | |||
Investment properties | 11,202 | |||
Other property and equipment other than land | 277 | |||
Liabilities | 6,404 | |||
Trade payables, taxes and other liabilities | 6,322 | |||
Loans | 82 | |||
Fair value of net spun-off assets | 5,098 | |||
Agropecuaria Moroti S.A. [Member] | Fair Value [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Assets | 145,948 | |||
Accounts receivable, inventories and other receivables | 4,652 | |||
Recoverable taxes | ||||
Investment properties | 140,952 | |||
Other property and equipment other than land | 344 | |||
Liabilities | 25,372 | |||
Trade payables, taxes and other liabilities | 6,576 | |||
Loans | 18,796 | |||
Fair value of net spun-off assets | R$ 120576 |
Operations (Details Narrative)
Operations (Details Narrative) R$ in Thousands | May 03, 2018 | Mar. 27, 2017 | Mar. 22, 2017 | Dec. 16, 2016 | Dec. 16, 2016 | Oct. 05, 2016 | Jun. 30, 2018BRL (R$)a | Jun. 30, 2017BRL (R$) |
Disclosure of joint ventures [line items] | ||||||||
Description of sale of farm | The Company sold a 956 hectares area (660 hectares of arable land) of the Araucária Farm. The area was sold for 1,208 soybean bags per usable hectare or R$66,224 par value. The Company received a down payment of 79,200 soybean bags in the amount of R$5,267, a second installment corresponding to the same number of soybean bags to be received on September 1, 2018 and the balance to be settled in six annual installments.</font></p>" id="sjs-B3"><p><font style="font: 10pt Times New Roman, Times, Serif">The Company sold a 956 hectares area (660 hectares of arable land) of the Araucária Farm. The area was sold for 1,208 soybean bags per usable hectare or R$66,224 par value. The Company received a down payment of 79,200 soybean bags in the amount of R$5,267, a second installment corresponding to the same number of soybean bags to be received on September 1, 2018 and the balance to be settled in six annual installments.</font></p> | <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">The Company sold a 274-hectare area (200 arable hectares) of the Araucaria Farm for 1,000 soybean bags per usable hectare or R$12,451. The Company received a down payment of 39,254 soybean bags in the amount of R$2,124 and the balance will be received in four annual installments.</font></td></tr> </table>" id="sjs-C3"><table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">The Company sold a 274-hectare area (200 arable hectares) of the Araucaria Farm for 1,000 soybean bags per usable hectare or R$12,451. The Company received a down payment of 39,254 soybean bags in the amount of R$2,124 and the balance will be received in four annual installments.</font></td></tr> </table> | <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">The Company sold a 1,360-hectare area (918 hectares of arable land) of the Araucaria Farm, for 280 soybean bags per usable hectare or R$16,987 (Note 7.1.e – Araucaria IV). The Company received a down payment of 50,148 soybean bags in the amount of R$3,008 and the balance will be received in five annual installments.</font></td></tr> </table>" id="sjs-D3"><table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">The Company sold a 1,360-hectare area (918 hectares of arable land) of the Araucaria Farm, for 280 soybean bags per usable hectare or R$16,987 (Note 7.1.e – Araucaria IV). The Company received a down payment of 50,148 soybean bags in the amount of R$3,008 and the balance will be received in five annual installments.</font></td></tr> </table> | <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">The Company completed the sale of a 625-hectare area (500 agricultural hectares) of Jatoba Farm. The area was sold for 300 soybean bags per usable hectare or R$10,145. The Company received a down payment of 15,000 soybean bags in the amount of R$878, a second installment of the same amount on July 30, 2017, and the remaining balance will be settled in four annual installments.</font></td></tr> </table>" id="sjs-I3"><table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">The Company completed the sale of a 625-hectare area (500 agricultural hectares) of Jatoba Farm. The area was sold for 300 soybean bags per usable hectare or R$10,145. The Company received a down payment of 15,000 soybean bags in the amount of R$878, a second installment of the same amount on July 30, 2017, and the remaining balance will be settled in four annual installments.</font></td></tr> </table> | ||||
Restricted financial investments | R$ 49703 | |||||||
Description of incorporation | <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">Palmeiras S.A. (“Palmeiras”) was incorporated in Asunción, the capital city of Paraguay, with partners Jaborandi Agrícola Ltda. holding 1% of the shares and BrasilAgro holding 99% of the shares.</font></td></tr> </table>" id="sjs-F5"><table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><font style="font: 10pt Times New Roman, Times, Serif">Palmeiras S.A. (“Palmeiras”) was incorporated in Asunción, the capital city of Paraguay, with partners Jaborandi Agrícola Ltda. holding 1% of the shares and BrasilAgro holding 99% of the shares.</font></td></tr> </table> | |||||||
Area of owned land | a | 198,158 | |||||||
Area of leased land | a | 26,763 | |||||||
Gain on jointly controlled investment | R$ 5098 | |||||||
Other Operating Income (Expenses), Net [Member] | ||||||||
Disclosure of joint ventures [line items] | ||||||||
Write-off of effect of conversion of joint venture due to spin-off | R$ 30616 | |||||||
Palmeiras S.A. [Member] | ||||||||
Disclosure of joint ventures [line items] | ||||||||
Percentage of ownership interest in subsidiary | 99.00% | |||||||
Cresca S.A [Mebmer] | ||||||||
Disclosure of joint ventures [line items] | ||||||||
Ownership interest in share capital | 50.00% | 50.00% | ||||||
Waive interest | R$ 16563 |
Basis of preparation and pres_4
Basis of preparation and presentation (Details) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Jaborandi Agricola Ltda [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Imobiliaria Jaborandi [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Cremaq [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Engenho de Maracaju [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Araucaria [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Mogno [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Cajueiro [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Ceibo [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Flamboyant [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | 99.99% | 99.99% | 99.99% | |
Palmeiras [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | [1] | 99.99% | 99.99% | |
Moroti [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in subsidiaries | [1] | 99.99% | ||
FIM Guardian Exclusive Fund [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Ownership interest in joint venture | [2] | 100.00% | 100.00% | |
[1] | Subsidiary incorporaded during the Cresca spin-off process, as per Note 1.1. | |||
[2] | During the year, the Company extinguisned its exclusive investment fund (FIM Guardian). |
Basis of preparation and pres_5
Basis of preparation and presentation (Details 1) | 12 Months Ended |
Jun. 30, 2018 | |
Buildings and improvements [Member] | Bottom of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P2Y |
Buildings and improvements [Member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P20Y |
Equipment And Facilities [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P10Y |
Vehicles and agricultural machinery [Member] | Bottom of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P13Y |
Vehicles and agricultural machinery [Member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P20Y |
Furniture And Fixtures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P10Y |
Opening of areas [Member] | Bottom of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P10Y |
Opening of areas [Member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P20Y |
Permanent cultures [Member] | Bottom of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P16Y |
Permanent cultures [Member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Annual depreciation rates % | P27Y |
Basis of preparation and pres_6
Basis of preparation and presentation (Details 2) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Trade accounts payable | R$ 48518 | R$ 37805 | |
Loans and financing | 276,020 | R$ 112175 | R$ 99845 |
Consolidated [member] | Amortized Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Trade accounts receivable | 57,185 | ||
Transactions with Related Parties | 1,660 | ||
Trade accounts payable | 48,518 | ||
Loans and financing | R$ 255805 |
Basis of preparation and pres_7
Basis of preparation and presentation (Details Narrative) | 12 Months Ended |
Jun. 30, 2018 | |
LegalEntityLineItems [Line Items] | |
Description of Current income tax and social contribution | Current income tax and social contribution are calculated applying a rate of 15%, plus surtax of 10% on taxable profit exceeding R$240 per annum for income tax, and 9% on taxable profit for social contribution on net profit.</font></p>" id="sjs-B4"><p><font style="font: 10pt Times New Roman, Times, Serif">Current income tax and social contribution are calculated applying a rate of 15%, plus surtax of 10% on taxable profit exceeding R$240 per annum for income tax, and 9% on taxable profit for social contribution on net profit.</font></p> |
Income and social contribution tax loss carryforwards,Limitations on Use | Income tax and social contribution loss carryforwards can be used to offset the payment of income tax and social contribution tax payable limited to 30% of annual taxable profit, except for the rural activity which may reach 100% of annual taxable profit. Tax loss carryforwards do not expire.</font></p>" id="sjs-B5"><p><font style="font: 10pt Times New Roman, Times, Serif">Income tax and social contribution loss carryforwards can be used to offset the payment of income tax and social contribution tax payable limited to 30% of annual taxable profit, except for the rural activity which may reach 100% of annual taxable profit. Tax loss carryforwards do not expire.</font></p> |
Suh rates for income tax | 25.00% |
Suh rates for social contribution tax | 9.00% |
Brazilian tax legislation [Member] | |
LegalEntityLineItems [Line Items] | |
Description of rate use calcalute taxable profit | Under this regime, taxable profit for income and social contribution tax is calculated by applying a rate of 8% and 12% on gross revenue, respectively, on which the statutory rates for income and social contribution tax are applied. </font></p>" id="sjs-B10"><p><font style="font: 10pt Times New Roman, Times, Serif">Under this regime, taxable profit for income and social contribution tax is calculated by applying a rate of 8% and 12% on gross revenue, respectively, on which the statutory rates for income and social contribution tax are applied.  </font></p> |
Significant accounting estima_2
Significant accounting estimates and judgments (Details Narrative) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018BRL (R$) | Jun. 30, 2017BRL (R$) | |
Disclosure of detailed information about biological assets [line items] | ||
1% Increase (decrease) of expected productivity | R$ 34053 | R$ 13435 |
Sugarcane And Grains [Member] | Bottom of range [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
1% Increase (decrease) of expected productivity | 1,117 | |
Sugarcane And Grains [Member] | Top of range [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
1% Increase (decrease) of expected productivity | R$ 1623 | |
Soybean [Member] | West Region - Bahia [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Variable price of markets | 58.91 | |
Soybean [Member] | Balsas Region - Maranhao [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Variable price of markets | 59.78 | |
Soybean [Member] | Alto Taquari Region - Mato Grosso [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Variable price of markets | 57.18 | |
Soybean [Member] | Mineiros Region - Goias [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Variable price of markets | 57.18 |
Financial risk management (Deta
Financial risk management (Details) | Jun. 30, 2018 | Jun. 30, 2017 |
Interest Rate July 2, 2018 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 6.41 | |
Devaluation in scenario I at 25% | 4.81 | |
Devaluation in scenario II at 50% | 3.21 | |
Appreciation in scenario III at 25% | 8.01 | |
Appreciation in scenario III at 50% | 9.62 | |
Interest Rate August 27, 2018 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 6.51 | |
Devaluation in scenario I at 25% | 4.88 | |
Devaluation in scenario II at 50% | 3.26 | |
Appreciation in scenario III at 25% | 8.14 | |
Appreciation in scenario III at 50% | 9.77 | |
Interest Rate May 10, 2019 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 7.53 | |
Devaluation in scenario I at 25% | 5.65 | |
Devaluation in scenario II at 50% | 3.77 | |
Appreciation in scenario III at 25% | 9.41 | |
Appreciation in scenario III at 50% | 11.30 | |
Interest Rate August 15, 2023 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 11.09 | |
Devaluation in scenario I at 25% | 8.32 | |
Devaluation in scenario II at 50% | 5.55 | |
Appreciation in scenario III at 25% | 13.86 | |
Appreciation in scenario III at 50% | 16.64 | |
U.S. dollar August 3, 2017 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 3.33 | |
Devaluation in scenario I at 25% | 2.50 | |
Devaluation in scenario II at 50% | 1.67 | |
Appreciation in scenario III at 25% | 4.16 | |
Appreciation in scenario III at 50% | 5 | |
U.S. dollar July 28, 2017 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 3.33 | |
Devaluation in scenario I at 25% | 2.50 | |
Devaluation in scenario II at 50% | 1.67 | |
Appreciation in scenario III at 25% | 4.16 | |
Appreciation in scenario III at 50% | 5 | |
U.S. dollar May 30, 2018 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 3.49 | |
Devaluation in scenario I at 25% | 2.62 | |
Devaluation in scenario II at 50% | 1.75 | |
Appreciation in scenario III at 25% | 4.36 | |
Appreciation in scenario III at 50% | 5.24 | |
U.S. dollar October 26, 2018 [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 3.92 | |
Devaluation in scenario I at 25% | 2.94 | |
Devaluation in scenario II at 50% | 1.96 | |
Appreciation in scenario III at 25% | 4.90 | |
Appreciation in scenario III at 50% | 5.88 | |
Soybean July 2017 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 68.72 | |
Devaluation in scenario I at 25% | 51.54 | |
Devaluation in scenario II at 50% | 34.36 | |
Appreciation in scenario III at 25% | 85.90 | |
Appreciation in scenario III at 50% | 103.08 | |
Cattle October 2017 (BMF) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 124.58 | |
Devaluation in scenario I at 25% | 93.44 | |
Devaluation in scenario II at 50% | 62.29 | |
Appreciation in scenario III at 25% | 155.73 | |
Appreciation in scenario III at 50% | 186.87 | |
Soybean November 2017 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 69.64 | |
Devaluation in scenario I at 25% | 52.23 | |
Devaluation in scenario II at 50% | 34.82 | |
Appreciation in scenario III at 25% | 87.05 | |
Appreciation in scenario III at 50% | 104.46 | |
Soybean April 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 3.60 | |
Devaluation in scenario I at 25% | 2.70 | |
Devaluation in scenario II at 50% | 1.80 | |
Appreciation in scenario III at 25% | 4.50 | |
Appreciation in scenario III at 50% | 5.40 | |
Soybean June 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 4.44 | |
Devaluation in scenario I at 25% | 3.33 | |
Devaluation in scenario II at 50% | 2.22 | |
Appreciation in scenario III at 25% | 5.55 | |
Appreciation in scenario III at 50% | 6.66 | |
Soybean July 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 71.31 | |
Devaluation in scenario I at 25% | 53.48 | |
Devaluation in scenario II at 50% | 35.66 | |
Appreciation in scenario III at 25% | 89.14 | |
Appreciation in scenario III at 50% | 106.97 | |
Soybean July 12, 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 74.81 | |
Devaluation in scenario I at 25% | 56.11 | |
Devaluation in scenario II at 50% | 37.41 | |
Appreciation in scenario III at 25% | 93.51 | |
Appreciation in scenario III at 50% | 112.22 | |
Soybean July 13, 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 72.98 | |
Devaluation in scenario I at 25% | 54.74 | |
Devaluation in scenario II at 50% | 36.49 | |
Appreciation in scenario III at 25% | 91.23 | |
Appreciation in scenario III at 50% | 109.47 | |
Soybean July 27, 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 73.89 | |
Devaluation in scenario I at 25% | 55.42 | |
Devaluation in scenario II at 50% | 36.95 | |
Appreciation in scenario III at 25% | 92.36 | |
Appreciation in scenario III at 50% | 110.84 | |
Soybean October 26, 2018 (CBOT) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 74.81 | |
Devaluation in scenario I at 25% | 56.11 | |
Devaluation in scenario II at 50% | 37.41 | |
Appreciation in scenario III at 25% | 93.51 | |
Appreciation in scenario III at 50% | 112.22 | |
Ethanol July 31, 2018 (BM&F) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 1,610 | |
Devaluation in scenario I at 25% | 1,207.50 | |
Devaluation in scenario II at 50% | 805 | |
Appreciation in scenario III at 25% | 2,012.50 | |
Appreciation in scenario III at 50% | 2,415 | |
Ethanol August 31, 2018 (BM&F) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 1,680 | |
Devaluation in scenario I at 25% | 1,260 | |
Devaluation in scenario II at 50% | 840 | |
Appreciation in scenario III at 25% | 2,100 | |
Appreciation in scenario III at 50% | 2,520 | |
Ethanol September 28, 2018 (BM&F) [Member] | ||
DerivativeInstrumentRiskLineItems [Line Items] | ||
Probable scenario | 1,705 | |
Devaluation in scenario I at 25% | 1,278.75 | |
Devaluation in scenario II at 50% | 852.50 | |
Appreciation in scenario III at 25% | 2,131.25 | |
Appreciation in scenario III at 50% | 2,557.50 |
Financial risk management (De_2
Financial risk management (Details 1) R$ in Thousands | Jun. 30, 2018BRL (R$) | |
Investment [Member] | USD [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 22700 | |
Notional amount of financial instruments | R$ 3079 | |
Rate of financial instruments | 3.86% | |
Scenario I - Probable | R$ 416 | |
Rate of scenario I - Probable | 3.99% | |
Devaluation in scenario I at 25% possible | R$ 3072 | |
Rate of devaluation in scenario I at 25% possible | 2.99% | |
Devaluation in scenario II at 50% remote | R$ 6145 | |
Rate of devaluation in scenario II at 50% remote | 2.00% | |
Appreciation in scenario I at 25% possible | R$ 3072 | |
Rate of appreciation in scenario I at 25% possible | 4.99% | |
Appreciation in scenario II at 50% remote | R$ 6145 | |
Rate of appreciation in scenario II at 50% remote | 5.99% | |
Investment [Member] | CDI [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 81213 | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.39% | |
Scenario I - Probable | R$ 983 | |
Rate of scenario I - Probable | 7.60% | |
Devaluation in scenario I at 25% possible | R$ 1543 | |
Rate of devaluation in scenario I at 25% possible | 5.70% | |
Devaluation in scenario II at 50% remote | R$ 3086 | |
Rate of devaluation in scenario II at 50% remote | 3.80% | |
Appreciation in scenario I at 25% possible | R$ 1543 | |
Rate of appreciation in scenario I at 25% possible | 9.50% | |
Appreciation in scenario II at 50% remote | R$ 3086 | |
Rate of appreciation in scenario II at 50% remote | 11.40% | |
Marketable Securities LFT [Member] | SELIC [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 10086 | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.40% | |
Scenario I - Probable | R$ 122 | |
Rate of scenario I - Probable | 7.61% | |
Devaluation in scenario I at 25% possible | R$ 193 | |
Rate of devaluation in scenario I at 25% possible | 5.71% | |
Devaluation in scenario II at 50% remote | R$ 383 | |
Rate of devaluation in scenario II at 50% remote | 3.81% | |
Appreciation in scenario I at 25% possible | R$ 193 | |
Rate of appreciation in scenario I at 25% possible | 9.51% | |
Appreciation in scenario II at 50% remote | R$ 383 | |
Rate of appreciation in scenario II at 50% remote | 11.42% | |
Marketable Securities USD [Member] | CDI [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 19355 | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.39% | |
Scenario I - Probable | R$ 234 | |
Rate of scenario I - Probable | 7.60% | |
Devaluation in scenario I at 25% possible | R$ 368 | |
Rate of devaluation in scenario I at 25% possible | 5.70% | |
Devaluation in scenario II at 50% remote | R$ 735 | |
Rate of devaluation in scenario II at 50% remote | 3.80% | |
Appreciation in scenario I at 25% possible | R$ 368 | |
Rate of appreciation in scenario I at 25% possible | 9.50% | |
Appreciation in scenario II at 50% remote | R$ 735 | |
Rate of appreciation in scenario II at 50% remote | 11.40% | |
Total Cash Cash Equivalents [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 133354 | |
Notional amount of financial instruments | 3,079 | |
Scenario I - Probable | 3,079 | |
Devaluation in scenario I at 25% possible | (5,176) | |
Devaluation in scenario II at 50% remote | (10,349) | |
Appreciation in scenario I at 25% possible | 5,176 | |
Appreciation in scenario II at 50% remote | 10,349 | |
Financing For Working Capital [Member] | CDI [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | (141,642) | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.39% | |
Scenario I - Probable | R$ 1714 | |
Rate of scenario I - Probable | 7.60% | |
Devaluation in scenario I at 25% possible | R$ 2691 | |
Rate of devaluation in scenario I at 25% possible | 5.70% | |
Devaluation in scenario II at 50% remote | R$ 5382 | |
Rate of devaluation in scenario II at 50% remote | 3.80% | |
Appreciation in scenario I at 25% possible | R$ 2691 | |
Rate of appreciation in scenario I at 25% possible | 9.50% | |
Appreciation in scenario II at 50% remote | R$ 5382 | |
Rate of appreciation in scenario II at 50% remote | 11.40% | |
Financing For Working Capital [Member] | USD [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 486 | |
Notional amount of financial instruments | R$ 126 | |
Rate of financial instruments | 3.86% | |
Scenario I - Probable | R$ 66 | |
Rate of scenario I - Probable | 3.99% | |
Devaluation in scenario I at 25% possible | R$ 485 | |
Rate of devaluation in scenario I at 25% possible | 2.99% | |
Devaluation in scenario II at 50% remote | R$ 970 | |
Rate of devaluation in scenario II at 50% remote | 2.00% | |
Appreciation in scenario I at 25% possible | R$ 485 | |
Rate of appreciation in scenario I at 25% possible | 4.99% | |
Appreciation in scenario II at 50% remote | R$ 970 | |
Rate of appreciation in scenario II at 50% remote | 5.99% | |
Financing For Machinery and Equipment [Member] | TJLP [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 1317 | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.60% | |
Scenario I - Probable | ||
Rate of scenario I - Probable | 6.60% | |
Devaluation in scenario I at 25% possible | R$ 22 | |
Rate of devaluation in scenario I at 25% possible | 4.95% | |
Devaluation in scenario II at 50% remote | R$ 43 | |
Rate of devaluation in scenario II at 50% remote | 3.30% | |
Appreciation in scenario I at 25% possible | R$ 22 | |
Rate of appreciation in scenario I at 25% possible | 8.25% | |
Appreciation in scenario II at 50% remote | R$ 43 | |
Rate of appreciation in scenario II at 50% remote | 9.90% | |
Financing For Sugarcane [Member] | TJLP [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 11893 | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.60% | |
Scenario I - Probable | ||
Rate of scenario I - Probable | 6.60% | |
Devaluation in scenario I at 25% possible | R$ 196 | |
Rate of devaluation in scenario I at 25% possible | 4.95% | |
Devaluation in scenario II at 50% remote | R$ 392 | |
Rate of devaluation in scenario II at 50% remote | 3.30% | |
Appreciation in scenario I at 25% possible | R$ 196 | |
Rate of appreciation in scenario I at 25% possible | 8.25% | |
Appreciation in scenario II at 50% remote | R$ 392 | |
Rate of appreciation in scenario II at 50% remote | 9.90% | |
Total Financing [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 155338 | [1] |
Notional amount of financial instruments | (126) | [1] |
Scenario I - Probable | (1,780) | [1] |
Devaluation in scenario I at 25% possible | 3,394 | [1] |
Devaluation in scenario II at 50% remote | 6,787 | [1] |
Appreciation in scenario I at 25% possible | (3,394) | [1] |
Appreciation in scenario II at 50% remote | (6,787) | [1] |
Araucaria Farm III [Member] | Soybean Bags [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | 8,527 | |
Notional amount of financial instruments | R$ 121692 | |
Rate of financial instruments | 80.60% | |
Scenario I - Probable | ||
Rate of scenario I - Probable | 80.60% | |
Devaluation in scenario I at 25% possible | R$ 2132 | |
Rate of devaluation in scenario I at 25% possible | 60.45% | |
Devaluation in scenario II at 50% remote | R$ 4264 | |
Rate of devaluation in scenario II at 50% remote | 40.30% | |
Appreciation in scenario I at 25% possible | R$ 2132 | |
Rate of appreciation in scenario I at 25% possible | 100.75% | |
Appreciation in scenario II at 50% remote | R$ 4264 | |
Rate of appreciation in scenario II at 50% remote | 120.89% | |
Araucaria Farm IV [Member] | Soybean Bags [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 9017 | |
Notional amount of financial instruments | R$ 129499 | |
Rate of financial instruments | 86.08% | |
Scenario I - Probable | ||
Rate of scenario I - Probable | 86.08% | |
Devaluation in scenario I at 25% possible | R$ 2254 | |
Rate of devaluation in scenario I at 25% possible | 64.56% | |
Devaluation in scenario II at 50% remote | R$ 4509 | |
Rate of devaluation in scenario II at 50% remote | 43.04% | |
Appreciation in scenario I at 25% possible | R$ 2254 | |
Rate of appreciation in scenario I at 25% possible | 107.60% | |
Appreciation in scenario II at 50% remote | R$ 4509 | |
Rate of appreciation in scenario II at 50% remote | 129.12% | |
Araucaria Farma V [Member] | Soybean Bags [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 50594 | |
Notional amount of financial instruments | R$ 717840 | |
Rate of financial instruments | 93.27% | |
Scenario I - Probable | ||
Rate of scenario I - Probable | 93.27% | |
Devaluation in scenario I at 25% possible | R$ 12649 | |
Rate of devaluation in scenario I at 25% possible | 69.96% | |
Devaluation in scenario II at 50% remote | R$ 25297 | |
Rate of devaluation in scenario II at 50% remote | 46.64% | |
Appreciation in scenario I at 25% possible | R$ 12649 | |
Rate of appreciation in scenario I at 25% possible | 116.59% | |
Appreciation in scenario II at 50% remote | R$ 25297 | |
Rate of appreciation in scenario II at 50% remote | 139.91% | |
Jatoba Farm Gleba 12A [Member] | Soybean Bags [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 8657 | |
Notional amount of financial instruments | R$ 120000 | |
Rate of financial instruments | 88.14% | |
Scenario I - Probable | ||
Rate of scenario I - Probable | 88.14% | |
Devaluation in scenario I at 25% possible | R$ 2164 | |
Rate of devaluation in scenario I at 25% possible | 66.10% | |
Devaluation in scenario II at 50% remote | R$ 4329 | |
Rate of devaluation in scenario II at 50% remote | 44.07% | |
Appreciation in scenario I at 25% possible | R$ 2164 | |
Rate of appreciation in scenario I at 25% possible | 110.17% | |
Appreciation in scenario II at 50% remote | R$ 4329 | |
Rate of appreciation in scenario II at 50% remote | 132.21% | |
Total Receivables From Farms [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 76795 | |
Notional amount of financial instruments | 1,089,031 | |
Scenario I - Probable | ||
Rate of scenario I - Probable | ||
Devaluation in scenario I at 25% possible | R$ 19199 | |
Devaluation in scenario II at 50% remote | (38,399) | |
Appreciation in scenario I at 25% possible | 19,199 | |
Appreciation in scenario II at 50% remote | 38,399 | |
Derivatives [Member] | Ethanol [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | 216 | |
Notional amount of financial instruments | R$ 2100 | |
Rate of financial instruments | [2] | |
Scenario I - Probable | ||
Rate of scenario I - Probable | [2] | |
Devaluation in scenario I at 25% possible | R$ 1105 | |
Rate of devaluation in scenario I at 25% possible | [2] | |
Devaluation in scenario II at 50% remote | R$ 1997 | |
Rate of devaluation in scenario II at 50% remote | [2] | |
Appreciation in scenario I at 25% possible | R$ 675 | |
Rate of appreciation in scenario I at 25% possible | [2] | |
Appreciation in scenario II at 50% remote | R$ 1566 | |
Rate of appreciation in scenario II at 50% remote | [2] | |
Derivatives [Member] | USD [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 2079 | |
Notional amount of financial instruments | R$ 35800 | |
Rate of financial instruments | [2] | |
Scenario I - Probable | ||
Rate of scenario I - Probable | [2] | |
Devaluation in scenario I at 25% possible | R$ 28857 | |
Rate of devaluation in scenario I at 25% possible | [2] | |
Devaluation in scenario II at 50% remote | R$ 58799 | |
Rate of devaluation in scenario II at 50% remote | [2] | |
Appreciation in scenario I at 25% possible | R$ 31027 | |
Rate of appreciation in scenario I at 25% possible | [2] | |
Appreciation in scenario II at 50% remote | R$ 60970 | |
Rate of appreciation in scenario II at 50% remote | [2] | |
Derivatives [Member] | Grains [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 805 | |
Notional amount of financial instruments | R$ 1819921 | |
Rate of financial instruments | [2] | |
Scenario I - Probable | ||
Rate of scenario I - Probable | [2] | |
Devaluation in scenario I at 25% possible | R$ 12365 | |
Rate of devaluation in scenario I at 25% possible | [2] | |
Devaluation in scenario II at 50% remote | R$ 23068 | |
Rate of devaluation in scenario II at 50% remote | [2] | |
Appreciation in scenario I at 25% possible | R$ 9041 | |
Rate of appreciation in scenario I at 25% possible | [2] | |
Appreciation in scenario II at 50% remote | R$ 19744 | |
Rate of appreciation in scenario II at 50% remote | [2] | |
Derivatives [Member] | Swap [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 14 | |
Notional amount of financial instruments | R$ 64810 | |
Rate of financial instruments | [2] | |
Scenario I - Probable | ||
Rate of scenario I - Probable | [2] | |
Devaluation in scenario I at 25% possible | R$ 331 | |
Rate of devaluation in scenario I at 25% possible | [2] | |
Devaluation in scenario II at 50% remote | R$ 321 | |
Rate of devaluation in scenario II at 50% remote | [2] | |
Appreciation in scenario I at 25% possible | R$ 344 | |
Rate of appreciation in scenario I at 25% possible | [2] | |
Appreciation in scenario II at 50% remote | R$ 350 | |
Rate of appreciation in scenario II at 50% remote | [2] | |
Margin - LFT Socopa [Member] | SELIC [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 20790 | |
Notional amount of financial instruments | ||
Rate of financial instruments | 6.40% | |
Scenario I - Probable | R$ 249 | |
Rate of scenario I - Probable | 7.60% | |
Devaluation in scenario I at 25% possible | R$ 395 | |
Rate of devaluation in scenario I at 25% possible | 5.70% | |
Devaluation in scenario II at 50% remote | R$ 790 | |
Rate of devaluation in scenario II at 50% remote | 3.80% | |
Appreciation in scenario I at 25% possible | R$ 395 | |
Rate of appreciation in scenario I at 25% possible | 9.50% | |
Appreciation in scenario II at 50% remote | R$ 790 | |
Rate of appreciation in scenario II at 50% remote | 11.40% | |
Total Derivatives [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 19718 | |
Scenario I - Probable | (249) | |
Devaluation in scenario I at 25% possible | 42,263 | |
Devaluation in scenario II at 50% remote | 83,395 | |
Appreciation in scenario I at 25% possible | (40,004) | |
Appreciation in scenario II at 50% remote | (81,140) | |
Cresca [Member] | USD [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | (1,450) | |
Notional amount of financial instruments | R$ 376 | |
Rate of financial instruments | 3.86% | |
Scenario I - Probable | R$ 51 | |
Rate of scenario I - Probable | 3.99% | |
Devaluation in scenario I at 25% possible | R$ 375 | |
Rate of devaluation in scenario I at 25% possible | 2.99% | |
Devaluation in scenario II at 50% remote | R$ 751 | |
Rate of devaluation in scenario II at 50% remote | 2.00% | |
Appreciation in scenario I at 25% possible | R$ 375 | |
Rate of appreciation in scenario I at 25% possible | 4.99% | |
Appreciation in scenario II at 50% remote | R$ 751 | |
Rate of appreciation in scenario II at 50% remote | 5.99% | |
Cresud [Member] | USD [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 267 | |
Notional amount of financial instruments | R$ 69 | |
Rate of financial instruments | 3.86% | |
Scenario I - Probable | R$ 8 | |
Rate of scenario I - Probable | 3.99% | |
Devaluation in scenario I at 25% possible | R$ 69 | |
Rate of devaluation in scenario I at 25% possible | 2.99% | |
Devaluation in scenario II at 50% remote | R$ 138 | |
Rate of devaluation in scenario II at 50% remote | 2.00% | |
Appreciation in scenario I at 25% possible | R$ 69 | |
Rate of appreciation in scenario I at 25% possible | 4.99% | |
Appreciation in scenario II at 50% remote | R$ 138 | |
Rate of appreciation in scenario II at 50% remote | 5.99% | |
Total Related Parties [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial instruments | R$ 1183 | |
Notional amount of financial instruments | (307) | |
Scenario I - Probable | (43) | |
Devaluation in scenario I at 25% possible | 306 | |
Devaluation in scenario II at 50% remote | 613 | |
Appreciation in scenario I at 25% possible | (306) | |
Appreciation in scenario II at 50% remote | R$ 613 | |
[1] | The sensitivity analyses do not consider financing transactions with fixed rate. | |
[2] | For sensitivity analysis of derivative positions, forward rates and prices at each maturity date of the transaction were used, according to the table above. |
Financial risk management (De_3
Financial risk management (Details 2) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Trade payable | R$ 48518 | R$ 37805 | |
Financial instruments derivatives | 12,634 | 3,978 | |
Loans, financing and debentures | 276,020 | 112,175 | R$ 99845 |
Payable for purchase of farms | 24,646 | ||
Transactions with related parties | 1,831 | 4,784 | |
Less Than One Year [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Trade payable | 48,518 | 37,805 | |
Financial instruments derivatives | 10,489 | 3,978 | |
Loans, financing and debentures | 70,088 | 56,620 | |
Payable for purchase of farms | 24,646 | ||
Transactions with related parties | 1,831 | 4,784 | |
Later Than One Year And Not Later Than Two Years [member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Trade payable | |||
Financial instruments derivatives | 2,145 | ||
Loans, financing and debentures | 21,298 | 16,428 | |
Payable for purchase of farms | |||
Transactions with related parties | |||
From Three To Five years [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Trade payable | |||
Financial instruments derivatives | |||
Loans, financing and debentures | 143,793 | 15,129 | |
Payable for purchase of farms | |||
Transactions with related parties | |||
Above Five Years [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Trade payable | |||
Financial instruments derivatives | |||
Loans, financing and debentures | 40,841 | 23,998 | |
Payable for purchase of farms | |||
Transactions with related parties |
Financial risk management (De_4
Financial risk management (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Financial Risk Management | ||||
Loans, financing, debentures and finance leases | R$ 276020 | R$ 112175 | R$ 99845 | |
Total payable for purchase of farms (Note 13) | 24,646 | |||
Total trade accounts payables (Note 14.1) | 48,518 | 37,805 | ||
Total derivatives (Note 6) | 12,634 | 3,978 | ||
Liabilities | 423,735 | 215,825 | ||
Less: cash and cash equivalents (Note 5.1) | (104,314) | (43,798) | ||
Less: marketable securities (Notes 5.2) | (29,441) | (24,060) | ||
Total Securities | (133,755) | (67,858) | ||
Net debt | 203,417 | 110,746 | ||
Total equity | R$ 755864 | R$ 667468 | R$ 687488 | R$ 756162 |
Financial leverage | 26.91% | 16.59% |
Financial risk management (De_5
Financial risk management (Details 4) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Current | |||
Cash equivalents | R$ 81213 | R$ 28639 | |
Marketable securities | 11,215 | 6,972 | |
Trade accounts receivable, net | 78,557 | 44,303 | |
Receivable from sale of farm, net | 21,372 | 9,136 | |
Derivative financial instruments | [1] | 28,299 | 4,090 |
Transactions with related parties | 1,660 | 1,298 | |
Noncurrent | |||
Marketable securities | 18,226 | 17,088 | |
Trade accounts receivable, net | 55,423 | 22,692 | |
Receivable from sale of farm | 55,423 | 22,592 | |
Derivative financial instruments | [1] | 4,053 | 1 |
Transactions with related parties | 35,640 | ||
Total | 278,646 | 160,723 | |
Current | |||
Trade accounts payable | 48,518 | 37,805 | |
Loans,financing and debentures | [2] | 68,412 | 55,001 |
Finance lease sugarcane crop - Partnership III | [3] | 1,676 | 1,619 |
Derivative financial instruments | [1] | 10,489 | 3,978 |
Payables for purchase of farms | 24,646 | ||
Noncurrent | |||
Loans,financing and debentures | [2] | 187,393 | 33,095 |
Finance lease sugarcane crop - Partnerships III and IV | [3] | 18,539 | 22,460 |
Derivative financial instruments | [1] | 2,145 | |
Total | 337,172 | 178,604 | |
Financial liabilities at amortized cost [Member] | |||
Current | |||
Trade accounts payable | 48,518 | 37,805 | |
Loans,financing and debentures | [2] | 68,412 | 55,001 |
Finance lease sugarcane crop - Partnership III | [3] | ||
Derivative financial instruments | [1] | ||
Payables for purchase of farms | 24,646 | ||
Noncurrent | |||
Loans,financing and debentures | [2] | 187,393 | 33,095 |
Finance lease sugarcane crop - Partnerships III and IV | [3] | ||
Derivative financial instruments | [1] | ||
Total | 304,323 | 150,547 | |
Designated at fair value through profit or loss [Member] | |||
Current | |||
Trade accounts payable | |||
Loans,financing and debentures | [2] | ||
Finance lease sugarcane crop - Partnership III | [3] | 1,676 | 1,619 |
Derivative financial instruments | [1] | 10,489 | 3,978 |
Payables for purchase of farms | |||
Noncurrent | |||
Loans,financing and debentures | [2] | ||
Finance lease sugarcane crop - Partnerships III and IV | [3] | 18,539 | 22,460 |
Derivative financial instruments | [1] | 2,145 | |
Total | 32,849 | 28,057 | |
Fair value Level 2 [Member] | |||
Current | |||
Cash equivalents | 81,213 | 28,639 | |
Marketable securities | 11,215 | 6,972 | |
Trade accounts receivable, net | 57,185 | 35,167 | |
Receivable from sale of farm, net | 21,372 | 9,136 | |
Derivative financial instruments | [1] | 7,293 | 670 |
Transactions with related parties | 1,660 | 1,298 | |
Noncurrent | |||
Marketable securities | 18,226 | 17,088 | |
Trade accounts receivable, net | 100 | ||
Receivable from sale of farm | 55,423 | 22,592 | |
Derivative financial instruments | [1] | 4,053 | |
Transactions with related parties | 35,640 | ||
Total | 257,640 | 157,302 | |
Current | |||
Trade accounts payable | 48,518 | 37,805 | |
Loans,financing and debentures | [2] | 68,412 | 55,001 |
Derivative financial instruments | [1] | 9,214 | 809 |
Payables for purchase of farms | 24,646 | ||
Noncurrent | |||
Loans,financing and debentures | [2] | 187,393 | 33,095 |
Derivative financial instruments | [1] | 2,145 | |
Total | 315,682 | 151,356 | |
Fair value through profit or loss [Member] | |||
Current | |||
Cash equivalents | 81,213 | 28,639 | |
Marketable securities | 11,215 | 6,972 | |
Trade accounts receivable, net | |||
Receivable from sale of farm, net | 21,372 | 9,136 | |
Derivative financial instruments | [1] | 28,299 | 4,090 |
Transactions with related parties | |||
Noncurrent | |||
Marketable securities | 18,226 | 17,088 | |
Trade accounts receivable, net | |||
Receivable from sale of farm | 55,423 | 22,592 | |
Derivative financial instruments | [1] | 4,053 | 1 |
Transactions with related parties | |||
Total | 219,801 | 88,518 | |
Loans and receivables [Member] | |||
Current | |||
Cash equivalents | |||
Marketable securities | |||
Trade accounts receivable, net | 57,185 | 35,167 | |
Receivable from sale of farm, net | |||
Derivative financial instruments | [1] | ||
Transactions with related parties | 1,660 | 1,298 | |
Noncurrent | |||
Marketable securities | |||
Trade accounts receivable, net | 100 | ||
Receivable from sale of farm | |||
Derivative financial instruments | [1] | ||
Transactions with related parties | 35,640 | ||
Total | R$ 58845 | R$ 72205 | |
[1] | The Derivative transactions negotiated in an active market in the amount of R$1,275 (R$3,169 at June 30, 2017) are measured at fair value at Level 1, and over-the-counter transactions are measured at Level 2, as presented in the table above. | ||
[2] | The carrying amount of loans and financing in the financial statements, approximate the fair value, since the rates of these instruments are substantially subsidized and there is no intention of early settlement; | ||
[3] | Finance lease is measured at fair value in Level 3. The pricing takes into account the average ATR for lease agreements disclosed by Consecana (138 Kg ATR / TC), at the Consecana price for the respective month, at a weighting of 50% EHC and 50% EAC. |
Cash and cash equivalents and_3
Cash and cash equivalents and marketable securities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Disclosure of detailed information about borrowings [line items] | |||||
Total | R$ 104314 | R$ 43798 | R$ 54204 | R$ 75620 | |
Cash And Banks [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total | 23,101 | 15,159 | |||
Repurchase Agreements [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total | [1] | R$ 15242 | 28,639 | ||
Repurchase Agreements [member] | Bottom of range [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
CDI | [1] | 55.00% | |||
Repurchase Agreements [member] | Top of range [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
CDI | [1] | 65.00% | |||
Bank Deposit Certificates [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total | R$ 33137 | ||||
Bank Deposit Certificates [member] | Bottom of range [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
CDI | 99.00% | ||||
Bank Deposit Certificates [member] | Top of range [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
CDI | 100.00% | ||||
Letter of Mercantile Lease [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total | R$ 32834 | ||||
Letter of Mercantile Lease [member] | Bottom of range [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
CDI | 101.00% | ||||
Letter of Mercantile Lease [member] | Top of range [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
CDI | 102.00% | ||||
[1] | The Company uses this type of investment for funds that will be redeemed in less than 30 days, according to the projected cash flow and also in case of need to invest funds that were received after banking hours. |
Cash and cash equivalents and_4
Cash and cash equivalents and marketable securities (Details 1) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
CashAndCashEquivalentsAndMarketableSecuritiesLineItems [Line Items] | |||
Total current | R$ 11215 | R$ 6972 | |
Total noncurrent | 18,226 | 17,088 | |
Marketable securities | 29,441 | 24,060 | |
Banco Do Nordeste BNB [member] | |||
CashAndCashEquivalentsAndMarketableSecuritiesLineItems [Line Items] | |||
Total current | [1] | 5,502 | |
Total noncurrent | [1],[2] | 8,638 | 8,106 |
Investments Fund [member] | |||
CashAndCashEquivalentsAndMarketableSecuritiesLineItems [Line Items] | |||
Total current | 2 | ||
Bank Deposit Certificates [member] | |||
CashAndCashEquivalentsAndMarketableSecuritiesLineItems [Line Items] | |||
Total current | [2] | 1,129 | |
Total noncurrent | [2] | 9,588 | 8,982 |
Treasury Financial Bills [Member] | |||
CashAndCashEquivalentsAndMarketableSecuritiesLineItems [Line Items] | |||
Total current | [3] | R$ 10086 | R$ 1468 |
[1] | The securities in BNB consist of CDBs provided as collateral for financing from BNB Bank, to be held up to the end of the contract in July 2019. | ||
[2] | Indexed to rates from 98% to 102,5% of the CDI Interbank Deposit Certificate. | ||
[3] | Treasury bonds indexed to the Selic rate. |
Cash and cash equivalents and_5
Cash and cash equivalents and marketable securities (Details Narrative) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Cash And Cash Equivalents And Marketable Securities | ||
Denominated balance | R$ 22700 | R$ 13155 |
Derivative financial instrume_3
Derivative financial instruments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | R$ 28299 | R$ 4090 |
Payable | (10,489) | (3,978) |
NonCurrent [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 4,053 | 1 |
Payable | (2,145) | |
Total commodities risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 1,491 | 596 |
Payable | (3,570) | (809) |
Net balance | (2,079) | (213) |
Notional ('000) | (35,800) | (3,530) |
Call option (put option) | ||
Total commodities risk [Member] | Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 1,491 | 596 |
Payable | (3,570) | (809) |
Net balance | (2,079) | (213) |
Notional ('000) | (35,800) | (3,530) |
Call option (put option) | ||
Total commodities risk [Member] | NonCurrent [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | ||
Payable | ||
Net balance | ||
Notional ('000) | ||
Call option (put option) | ||
Total commodities risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 10,017 | 1,397 |
Payable | (8,996) | (3,141) |
Net balance | 1,021 | (1,744) |
Notional ('000) | ||
Call option (put option) | (1,822,021) | (210,585) |
Total commodities risk [Member] | Current (bags) [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 1,382 | |
Payable | (3,141) | |
Net balance | (1,759) | |
Notional ('000) | ||
Call option (put option) | (210,910) | |
Total commodities risk [Member] | Current (heads) [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 14 | |
Payable | ||
Net balance | 14 | |
Notional ('000) | ||
Call option (put option) | 660 | |
Total commodities risk [Member] | Non current (bags) [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 1 | |
Payable | ||
Net balance | 1 | |
Notional ('000) | ||
Call option (put option) | (335) | |
Total interest rate risk [Member] | Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 89 | |
Payable | ||
Net balance | 89 | |
Notional ('000) | 7,000 | |
Call option (put option) | ||
Total interest rate risk [Member] | NonCurrent [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | ||
Payable | ||
Net balance | ||
Notional ('000) | ||
Call option (put option) | ||
Total interest rate risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 89 | |
Payable | ||
Net balance | 89 | |
Notional ('000) | 7,000 | |
Call option (put option) | ||
Daily adjustments Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | ||
Payable | (15) | |
Net balance | (15) | |
Daily adjustments Commodities [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | ||
Payable | (13) | |
Net balance | (13) | |
Total risks [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 11,562 | 2,082 |
Payable | (12,634) | (3,978) |
Net balance | (1,072) | (1,896) |
Notional ('000) | 29,010 | 3,470 |
Call option (put option) | (1,822,021) | (210,585) |
Margin deposit [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 20,790 | 2,009 |
Payable | ||
Net balance | 20,790 | 2,009 |
P&L [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 62,965 | 62,226 |
Payable | R$ 68300 | R$ 44791 |
BM And F [Member] | BM And F [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | October (18) | 2017-08 |
Receivable | R$ 1490 | R$ 15 |
Payable | (2,484) | |
Net balance | (994) | 15 |
Notional ('000) | (4,800) | 2,000 |
Call option (put option) | ||
NDF [Member] | FC Stone [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July- 7 | |
Receivable | R$ 423 | |
Payable | ||
Net balance | 423 | |
Notional ('000) | (2,000) | |
Call option (put option) | ||
Options [Member] | FC Stone [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | January18 | |
Receivable | ||
Payable | (638) | |
Net balance | (638) | |
Notional ('000) | (2,500) | |
Call option (put option) | ||
Accumulator [Member] | Macquarie [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | May18 | |
Receivable | R$ 4 | |
Payable | ||
Net balance | 4 | |
Notional ('000) | (30) | |
Call option (put option) | ||
Options 1 [Member] | FC Stone [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | June18 | |
Soybean Futures [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July17 | |
Receivable | R$ 1377 | |
Payable | (2,219) | |
Net balance | (842) | |
Notional ('000) | ||
Call option (put option) | ||
Soybean Futures 1 [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | November17 | |
Receivable | R$ 5 | |
Payable | ||
Net balance | 5 | |
Notional ('000) | ||
Call option (put option) | R$ 24946 | |
Soybean Options [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July (18) | April18 |
Receivable | ||
Payable | (7) | (408) |
Net balance | (7) | (408) |
Notional ('000) | ||
Call option (put option) | R$ 77107 | R$ 113393 |
Soybean Options [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | October (18) | June18 |
Receivable | ||
Payable | (1,275) | (514) |
Net balance | (1,275) | (514) |
Notional ('000) | ||
Call option (put option) | R$ 1294946 | R$ 72571 |
Soybean Futures 2 [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July18 | |
Receivable | R$ 1 | |
Payable | ||
Net balance | 1 | |
Notional ('000) | ||
Call option (put option) | R$ 335 | |
Live Cattle Futures [Member] | BM And F [Member] | Live Cattle BM&F [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | October17 | |
Receivable | R$ 14 | |
Payable | ||
Net balance | 14 | |
Notional ('000) | ||
Call option (put option) | R$ 660 | |
Pre-DI SWAP [Member] | Itau BBA [Member] | Interest [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | November17 | |
Receivable | R$ 89 | |
Payable | ||
Net balance | 89 | |
Notional ('000) | 7,000 | |
Call option (put option) | ||
Options 1 [Member] | FC Stone [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 154 | |
Payable | (171) | |
Net balance | (17) | |
Notional ('000) | (1,000) | |
Call option (put option) |
Derivative financial instrume_4
Derivative financial instruments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | R$ 28299 | R$ 4090 |
Payable | (10,489) | (3,978) |
NonCurrent [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 4,053 | 1 |
Payable | (2,145) | |
Total commodities risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 1,491 | 596 |
Payable | (3,570) | (809) |
Net balance | (2,079) | (213) |
Notional ('000) | (35,800) | (3,530) |
Call option (put option) | ||
Total commodities risk [Member] | Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 1,491 | 596 |
Payable | (3,570) | (809) |
Net balance | (2,079) | (213) |
Notional ('000) | (35,800) | (3,530) |
Call option (put option) | ||
Total commodities risk [Member] | NonCurrent [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | ||
Payable | ||
Net balance | ||
Notional ('000) | ||
Call option (put option) | ||
Total commodities risk [Member] | Total interest rate risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 54 | |
Payable | (68) | |
Net balance | (14) | |
Notional ('000) | 64,810 | |
Call option (put option) | ||
Total commodities risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 10,017 | 1,397 |
Payable | (8,996) | (3,141) |
Net balance | 1,021 | (1,744) |
Notional ('000) | ||
Call option (put option) | (1,822,021) | (210,585) |
Total risks [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 11,562 | 2,082 |
Payable | (12,634) | (3,978) |
Net balance | (1,072) | (1,896) |
Notional ('000) | 29,010 | 3,470 |
Call option (put option) | (1,822,021) | (210,585) |
Margin deposit [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 20,790 | 2,009 |
Payable | ||
Net balance | 20,790 | 2,009 |
P&L [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 62,965 | 62,226 |
Payable | R$ 68300 | R$ 44791 |
BM And F [Member] | BM And F [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | October (18) | 2017-08 |
Receivable | R$ 1490 | R$ 15 |
Payable | (2,484) | |
Net balance | (994) | 15 |
Notional ('000) | (4,800) | 2,000 |
Call option (put option) | ||
Options [Member] | BM&F Options [Member] | Currency [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | June (18) | |
Receivable | R$ 1 | |
Payable | (1,086) | |
Net balance | (1,085) | |
Notional ('000) | (31,000) | |
Call option (put option) | ||
Soybean Options [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July (18) | April18 |
Receivable | ||
Payable | (7) | (408) |
Net balance | (7) | (408) |
Notional ('000) | ||
Call option (put option) | R$ 77107 | R$ 113393 |
Soybean Options 1 [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | October (18) | June18 |
Receivable | ||
Payable | (1,275) | (514) |
Net balance | (1,275) | (514) |
Notional ('000) | ||
Call option (put option) | (1,294,946) | R$ 72571 |
Futures Soybean [Member] | Total commodities risk [Member] | Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 5,802 | |
Payable | (6,851) | |
Net balance | (1,049) | |
Notional ('000) | ||
Call option (put option) | R$ 1389028 | |
Futures Soybean [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July (18) | |
Receivable | R$ 5451 | |
Payable | (5,569) | |
Net balance | (118) | |
Notional ('000) | ||
Call option (put option) | ||
Futures Soybean 1 [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | October (18) | |
Receivable | R$ 351 | |
Payable | ||
Net balance | 351 | |
Notional ('000) | ||
Call option (put option) | (16,975) | |
Futures Soybean 2 [Member] | Total commodities risk [Member] | NonCurrent [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 3,999 | |
Payable | (2,145) | |
Net balance | 1,854 | |
Notional ('000) | ||
Call option (put option) | R$ 430893 | |
Futures Soybean 2 [Member] | Trading Companies Banks CBOT [Member] | Soybean CBOT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July19 | |
Receivable | R$ 3999 | |
Payable | (2,145) | |
Net balance | 1,854 | |
Notional ('000) | ||
Call option (put option) | R$ 430893 | |
Futures Ethanol [Member] | BM&F [Member] | Ethanol BM&F [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July18 | |
Receivable | R$ 42 | |
Payable | ||
Net balance | 42 | |
Notional ('000) | ||
Call option (put option) | (300) | |
Futures Ethanol 1 [Member] | Total commodities risk [Member] | Current [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Receivable | 216 | |
Payable | ||
Net balance | 216 | |
Notional ('000) | ||
Call option (put option) | R$ 2100 | |
Futures Ethanol 1 [Member] | BM&F [Member] | Ethanol BM&F [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | August18 | |
Receivable | R$ 94 | |
Payable | ||
Net balance | 94 | |
Notional ('000) | ||
Call option (put option) | R$ 900 | |
Futures Ethanol 2 [Member] | BM&F [Member] | Ethanol BM&F [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | September18 | |
Receivable | R$ 80 | |
Payable | ||
Net balance | 80 | |
Notional ('000) | ||
Call option (put option) | R$ 900 | |
DI SWAP x Dollar [Member] | Banco Safra [Member] | Interest [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | January18 | |
Receivable | ||
Payable | ||
Net balance | ||
Notional ('000) | ||
Call option (put option) | ||
Pre-DI SWAP [Member] | Bradesco [Member] | Interest [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | August23 | |
Receivable | R$ 54 | |
Payable | ||
Net balance | 54 | |
Notional ('000) | 14,810 | |
Call option (put option) | ||
Pre-DI SWAP [Member] | ABC [Member] | Interest [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | July18 | |
Receivable | ||
Payable | (12) | |
Net balance | (12) | |
Notional ('000) | 10,000 | |
Call option (put option) | ||
Pre-DI SWAP [Member] | Itau BBA Jaborandi [Member] | Interest [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | August18 | |
Receivable | ||
Payable | (11) | |
Net balance | (11) | |
Notional ('000) | 20,000 | |
Call option (put option) | ||
Pre-DI SWAP [Member] | Itau BBA Jaborandi 1 [Member] | Interest [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Maturity | May19 | |
Receivable | ||
Payable | (45) | |
Net balance | (45) | |
Notional ('000) | 20,000 | |
Call option (put option) |
Accounts receivable and other_2
Accounts receivable and others (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts Receivable And Others Detaails Abstract | ||
Trade accounts receivable | R$ 78557 | R$ 44303 |
Recoverable taxes | 9,479 | 7,126 |
Advances to suppliers | 6,711 | 1,866 |
Other receivables | 429 | 731 |
Total current | 95,176 | 54,026 |
Trade accounts receivable, net | 55,423 | 22,692 |
Recoverable taxes | 17,847 | 20,124 |
Judicial deposits | 1,505 | 1,789 |
Total noncurrent | R$ 74775 | R$ 44605 |
Accounts receivable and other_3
Accounts receivable and others (Details 1) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | R$ 79423 | R$ 45164 | ||||
Allowance for doubtful accounts | (866) | [1] | (861) | [1] | R$ 1163 | |
Total current | 78,557 | 44,303 | ||||
Total non-current | 55,423 | 22,692 | ||||
Sale Of Sugarcane [Member] | ||||||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | [2] | 36,742 | 23,637 | |||
Sale Of Grains [Member] | ||||||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | [3] | 14,757 | 11,958 | |||
Sale Of Cattle [Member] | ||||||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | 589 | |||||
Leases Of Land [Member] | ||||||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | 5,747 | 184 | ||||
Sale Of Machinery [Member] | ||||||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | 216 | 249 | ||||
Total non-current | 100 | |||||
Sale Of Farms [Member] | ||||||
TradeAccountsReceivableTypeLineItems [Line Items] | ||||||
Current trade receivables gross | [4] | 21,372 | 9,136 | |||
Total non-current | R$ 55423 | R$ 22592 | ||||
[1] | Changes in the allowance for doubtful accounts: | |||||
[2] | Sale of sugarcane The Company has two sugarcane supply agreements. The first agreement was with Brenco Companhia Brasileira de Energia Renovavel and the second agreement is included in the partnership IV Agreement, as mentioned in the Explanatory Note on Commitments, whose credit risks are assessed in accordance with the internal policy, as presented in Note 4.8b. | |||||
[3] | For the years ended June 30, 2018 and 2017, corn and soybean were sold mainly to the customers Bunge Alimentos, Amaggi and Cargill Agricola. | |||||
[4] | Receivables from sale of farms |
Accounts receivable and other_4
Accounts receivable and others (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | |||
Accounts Receivable And Others Details 2Abstract | ||||
Beginning balance | R$ 861 | [1] | R$ 1163 | |
Accrual of provision | 284 | 49 | ||
Write-off or reversal | (279) | (351) | ||
Ending balance | [1] | R$ 866 | R$ 861 | |
[1] | Changes in the allowance for doubtful accounts: |
Accounts receivable and other_5
Accounts receivable and others (Details 3) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of provision matrix [line items] | ||
Trade and other receivables | R$ 134846 | R$ 67856 |
Current [Member] | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 106 | 22 |
31 to 90 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 60 | 169 |
91 to 180 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 2 | 5 |
181 to 360 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 8 | 1 |
Over 360 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 856 | 855 |
Current [Member] | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 34,305 | 8,020 |
31 to 90 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 19,611 | 15,025 |
91 to 180 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 9,159 | 100 |
181 to 360 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | 15,316 | 20,967 |
Over 360 days | ||
Disclosure of provision matrix [line items] | ||
Trade and other receivables | R$ 55423 | R$ 22692 |
Accounts receivable and other_6
Accounts receivable and others (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
MajorPropertiesClassLineItems [Line Items] | |||
Current | R$ 78557 | R$ 44303 | |
Non-current | 55,423 | 22,692 | |
Araucaria I [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | 1,930 | ||
Sale amount | [1] | ||
Receipts | (1,950) | ||
Restatement of nominal value | (23) | ||
Unwind of present value adjustment | 43 | ||
Ending balance | |||
Araucaria II [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | 4,403 | 14,411 | |
Sale amount | [1] | ||
Receipts | (4,994) | (8,188) | |
Restatement of nominal value | 142 | (4,733) | |
Unwind of present value adjustment | 449 | 2,913 | |
Ending balance | 4,403 | ||
Araucaria III [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | 8,789 | ||
Sale amount | [1] | 12,451 | |
Receipts | (2,493) | (2,124) | |
Restatement of nominal value | 1,542 | 412 | |
Unwind of present value adjustment | 689 | (1,950) | |
Ending balance | 8,527 | 8,789 | |
Araucaria IV [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | 10,995 | ||
Sale amount | [1] | 16,987 | |
Receipts | (4,250) | (3,009) | |
Restatement of nominal value | 1,510 | 273 | |
Unwind of present value adjustment | 762 | (3,256) | |
Ending balance | 9,017 | 10,995 | |
Araucaria V [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | |||
Sale amount | [1] | 52,405 | |
Receipts | (5,267) | ||
Restatement of nominal value | 6,632 | ||
Unwind of present value adjustment | (3,176) | ||
Ending balance | 50,594 | ||
Jatoba I [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | 7,541 | ||
Sale amount | [1] | 10,145 | |
Receipts | (877) | (878) | |
Restatement of nominal value | 2,187 | ||
Unwind of present value adjustment | (194) | (1,726) | |
Ending balance | 8,657 | 7,541 | |
Consolidated [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Beginning balance | 31,728 | 16,341 | |
Sale amount | [1] | 52,405 | 39,583 |
Receipts | (17,881) | (16,149) | |
Restatement of nominal value | 12,013 | (4,071) | |
Unwind of present value adjustment | (1,470) | (3,976) | |
Ending balance | 76,795 | R$ 31728 | |
Current | 21,372 | ||
Non-current | R$ 55423 | ||
[1] | Information on sales and the amounts received in the fiscal year ended June 30, 2018 is presented in Notes 1.2 and 19.b |
Accounts receivable and other_7
Accounts receivable and others (Details 5) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts Receivable And Others Details 5Abstract | |||
Withholding income tax (IRRF) on financial investments to be offset | R$ 3843 | R$ 4940 | |
Income tax losses and social contribution carryforwards | 148 | ||
Other recoverable taxes and contributions | 5,488 | 2,186 | |
Total current | [1] | 9,479 | 7,126 |
ICMS recoverable | 8,429 | 7,658 | |
ICMS recoverable on property, plant and equipment | 409 | 684 | |
Non-cumulative PIS and COFINS to be offset | 6,837 | 7,031 | |
IRRF on financial investments to be offset | 2,172 | 4,751 | |
Total noncurrent | R$ 17847 | R$ 20124 | |
[1] | Of the amounts consolidated as of June 30, 2018, the amount of R$ 4,844 refers to Value Added Tax in Paraguay. |
Inventories (Details)
Inventories (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about biological assets [line items] | ||
Agricultural products | R$ 57689 | R$ 13706 |
Raw materials | 11,933 | 8,952 |
Inventories | 69,622 | 22,658 |
Soybean [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Agricultural products | 50,289 | 6,837 |
Corn [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Agricultural products | 6,247 | 6,819 |
Other Harvests [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Agricultural products | R$ 1153 | R$ 50 |
Inventories (Details 1)
Inventories (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Inventories Abstract | ||
Balance at beginning | R$ 1212 | R$ 4 |
Provision for recoverable value of agricultural products, net | 883 | (1,655) |
Realization as cost of sales | 325 | 447 |
Balance at ending | R$ 4 | R$ 1212 |
Biological assets (Details)
Biological assets (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about biological assets [line items] | ||
Biological assets | R$ 96046 | R$ 51695 |
Current | 61,993 | 38,260 |
Noncurrent | 34,053 | 13,435 |
Production cattle [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Biological assets | 34,053 | 13,435 |
Grain plantation [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Biological assets | 2,203 | 1,385 |
Sugarcane plantation [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Biological assets | R$ 59790 | R$ 36875 |
Biological assets (Details 1)
Biological assets (Details 1) - a | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about biological assets [line items] | ||
Planted area (Hectares) | 31,277 | 32,286 |
Sugarcane [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Planted area (Hectares) | 29,955 | 32,286 |
Grains [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Planted area (Hectares) | 1,322 |
Biological assets (Details 2)
Biological assets (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of detailed information about biological assets [line items] | ||
Opening balance | R$ 2401 | |
total balance | 5,942 | R$ 2401 |
Grains [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Opening balance | 1,385 | |
Expenditures with plantation | 81,080 | 98,314 |
Expenditures with tilling | ||
Lease contract Partnership IV | ||
Fair value variation (a) (Note 18) | 54,892 | 4,302 |
Harvest of agricultural produce | (136,396) | (101,231) |
Effect of conversion | 1,242 | |
total balance | 2,203 | 1,385 |
Sugarcane [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Opening balance | 36,875 | 22,285 |
Expenditures with plantation | ||
Expenditures with tilling | 130,197 | 63,513 |
Lease contract Partnership IV | 17,479 | |
Fair value variation (a) (Note 18) | 43,952 | 11,532 |
Harvest of agricultural produce | (151,234) | (77,934) |
Effect of conversion | ||
total balance | R$ 59790 | R$ 36875 |
Biological assets (Details 3)
Biological assets (Details 3) - Cattle | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Heads of cattle [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Opening balance | 8,644 | 4,148 |
Acquisition birth costs | 14,680 | 4,729 |
Handling costs | ||
Cattle-raising costs | ||
Sales | (2,006) | (136) |
Deaths | (325) | (97) |
Change in fair value (Note18) | ||
Total balance | 20,993 | 8,644 |
Cattle for production [Member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Opening balance | 13,435 | 5,241 |
Acquisition birth costs | 14,311 | 6,476 |
Handling costs | 9,415 | |
Cattle-raising costs | 5,667 | |
Sales | (4,332) | (312) |
Deaths | (476) | (69) |
Change in fair value (Note18) | 239 | (3,568) |
Effect of conversion | 1,461 | |
Total balance | 34,053 | 13,435 |
Biological assets (Details 4)
Biological assets (Details 4) - Cattle | Jun. 30, 2018 | Jun. 30, 2017 |
Biological Assets | ||
Work animals | 20,993 | 8,644 |
Biological assets (Details 5)
Biological assets (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of detailed information about biological assets [line items] | |||
Total | R$ 99083 | R$ 12266 | R$ 12632 |
Sugarcane [Member] | |||
Disclosure of detailed information about biological assets [line items] | |||
Total | 43,952 | 11,532 | 19,533 |
Sugarcane [Member] | Level 3 [Member] | |||
Disclosure of detailed information about biological assets [line items] | |||
Total | 59,790 | ||
Cattle [Member] | |||
Disclosure of detailed information about biological assets [line items] | |||
Total | 239 | (3,568) | |
Cattle [Member] | Level 2 [Member] | |||
Disclosure of detailed information about biological assets [line items] | |||
Total | 34,053 | ||
Grains [Member] | |||
Disclosure of detailed information about biological assets [line items] | |||
Total | 54,892 | R$ 4302 | R$ 32165 |
Grains [Member] | Level 1 [Member] | |||
Disclosure of detailed information about biological assets [line items] | |||
Total | R$ 2203 |
Investment properties - noncurr
Investment properties - noncurrent (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of detailed information about investment property [line items] | |||
Opening balance | R$ 389799 | R$ 287867 | |
Acquisitions | 23,861 | 121,672 | |
Acquisitions - corporate restructuring | 140,952 | ||
Disposals | (10,793) | (8,728) | |
Transfers | |||
(-) Depreciation / amortization | (12,899) | (11,012) | R$ 21957 |
Effect of conversion | 26,232 | ||
Net book balance | 557,152 | 389,799 | 287,867 |
At June 30, 2018 | |||
Total cost | 660,748 | 480,496 | |
Accumulated depreciation | (103,596) | (90,697) | |
Net book balance | 557,152 | 389,799 | R$ 287867 |
Land Farms [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Opening balance | 300,487 | ||
Acquisitions | 2,231 | ||
Acquisitions - corporate restructuring | 113,158 | ||
Disposals | (10,676) | ||
Transfers | |||
(-) Depreciation / amortization | |||
Effect of conversion | 19,879 | ||
Net book balance | 425,079 | 300,487 | |
At June 30, 2018 | |||
Total cost | 425,079 | ||
Accumulated depreciation | |||
Net book balance | 425,079 | 300,487 | |
Buildings and improvements [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Opening balance | 26,369 | ||
Acquisitions | 152 | ||
Acquisitions - corporate restructuring | 4,141 | ||
Disposals | (116) | ||
Transfers | 1,979 | ||
(-) Depreciation / amortization | (983) | ||
Effect of conversion | 710 | ||
Net book balance | 32,252 | 26,369 | |
At June 30, 2018 | |||
Total cost | 39,925 | ||
Accumulated depreciation | (7,673) | ||
Net book balance | R$ 32252 | 26,369 | |
Buildings and improvements [Member] | Bottom of range [Member] | |||
At June 30, 2018 | |||
Annual depreciation rates (weighted average) - % | 4.00% | ||
Buildings and improvements [Member] | Top of range [Member] | |||
At June 30, 2018 | |||
Annual depreciation rates (weighted average) - % | 20.00% | ||
Opening of area [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Opening balance | R$ 53021 | ||
Acquisitions | 1,390 | ||
Acquisitions - corporate restructuring | |||
Disposals | |||
Transfers | 6,943 | ||
(-) Depreciation / amortization | (11,916) | ||
Effect of conversion | 36 | ||
Net book balance | 49,474 | 53,021 | |
At June 30, 2018 | |||
Total cost | 145,397 | ||
Accumulated depreciation | (95,923) | ||
Net book balance | R$ 49474 | 53,021 | |
Opening of area [Member] | Bottom of range [Member] | |||
At June 30, 2018 | |||
Annual depreciation rates (weighted average) - % | 10.00% | ||
Opening of area [Member] | Top of range [Member] | |||
At June 30, 2018 | |||
Annual depreciation rates (weighted average) - % | 20.00% | ||
Total in operation [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Opening balance | R$ 379877 | ||
Acquisitions | 3,773 | ||
Acquisitions - corporate restructuring | 117,299 | ||
Disposals | (10,792) | ||
Transfers | 8,922 | ||
(-) Depreciation / amortization | (12,899) | ||
Effect of conversion | 20,625 | ||
Net book balance | 506,805 | 379,877 | |
At June 30, 2018 | |||
Total cost | 610,401 | ||
Accumulated depreciation | (103,596) | ||
Net book balance | 506,805 | 379,877 | |
Construction in progress [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Opening balance | 9,922 | ||
Acquisitions | 20,088 | ||
Acquisitions - corporate restructuring | 23,653 | ||
Disposals | (1) | ||
Transfers | (8,922) | ||
Effect of conversion | 5,607 | ||
Net book balance | 50,347 | 9,922 | |
At June 30, 2018 | |||
Total cost | 50,347 | ||
Accumulated depreciation | |||
Net book balance | R$ 50347 | R$ 9922 |
Investment properties - noncu_2
Investment properties - noncurrent (Details 1) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018BRL (R$)a | Jun. 30, 2017BRL (R$) | Jun. 30, 2016BRL (R$)a | |
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 198,158 | 139,629 | |
Gains losses on fair value adjustment investment property | R$ 1385780 | R$ 1249962 | |
Gains losses on cost value adjustment investment property | 541,876 | 384,853 | |
Jaborandi Ltda [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 340,942 | 360,758 | R$ 303455 |
Gains losses on cost value adjustment investment property | 56,963 | 59,057 | R$ 59208 |
Mogno Ltda [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 158,726 | 119,706 | |
Gains losses on cost value adjustment investment property | 35,962 | 35,783 | |
Araucaria Ltda [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 137,796 | 172,327 | |
Gains losses on cost value adjustment investment property | 43,198 | 53,001 | |
Cajueiro Ltda [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 312,256 | 352,391 | |
Gains losses on cost value adjustment investment property | 82,038 | 79,794 | |
Flamboyant Ltda [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 32,145 | 23,407 | |
Gains losses on cost value adjustment investment property | 23,116 | 21,998 | |
Cajueiro Ltda1 [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 58,171 | 64,392 | |
Gains losses on cost value adjustment investment property | 27,735 | 30,082 | |
Ceibo Ltda [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 156,798 | 156,981 | |
Gains losses on cost value adjustment investment property | 106,387 | 105,138 | |
Agropecuaria Moroti S.A. [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gains losses on fair value adjustment investment property | 188,946 | ||
Gains losses on cost value adjustment investment property | R$ 166477 | ||
Bahia [Member] | Jatoba [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 30,981 | 30,981 | |
Date of acquisition | 2007-03 | ||
Bahia [Member] | Chaparral [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 37,182 | 37,184 | |
Date of acquisition | 2007-11 | ||
Bahia [Member] | Preferencia [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 17,799 | 17,799 | |
Date of acquisition | 2008-09 | ||
Mato Grosso [Member] | Alto Taquari [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 5,394 | 5,394 | |
Date of acquisition | 2007-08 | ||
Goias [Member] | Araucaria [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 5,534 | 6,493 | |
Date of acquisition | 2007-04 | ||
Minas Gerais [Member] | Nova Buriti [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 24,212 | 24,212 | |
Date of acquisition | 2007-12 | ||
Maranhao [Member] | Sao Jose [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 17,566 | 17,566 | |
Date of acquisition | 2017-02 | ||
Boqueron Paraguay [Member] | Moroti [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Area of farm | a | 59,490 | ||
Date of acquisition | 2018-02 |
Investments (Details)
Investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Investments | ||
Opening balance | R$ 101426 | R$ 102955 |
Write-off of investment due to spin-off | (115,478) | |
Share of profit in a joint venture | 14,671 | |
Share of loss in a joint venture | (4,425) | |
Effect from currency translation adjustment | (533) | 2,896 |
Total balance | R$ 86 | R$ 101426 |
Investments (Details 1)
Investments (Details 1) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of joint ventures [line items] | |||||
Assets | R$ 1179599 | R$ 883293 | |||
Current | 372,279 | 171,102 | |||
Cash and cash equivalents | 104,314 | 43,798 | R$ 54204 | R$ 75620 | |
Non current | 807,320 | 712,191 | |||
Investment properties | 557,152 | 389,799 | R$ 287867 | ||
Liabilities | 423,735 | 215,825 | |||
Current | 203,153 | 157,156 | |||
Noncurrent | 220,582 | 58,669 | |||
Cresca's [Member] | |||||
Disclosure of joint ventures [line items] | |||||
Assets | 3,371 | [1] | 281,529 | ||
Current | 3,356 | [1] | 9,705 | ||
Cash and cash equivalents | 333 | [1] | 503 | ||
Accounts receivable, inventories and other receivables | 3,023 | [1] | 8,976 | ||
Contract of purchase of land | [1] | 226 | |||
Non current | 15 | [1] | 271,824 | ||
Recoverable taxes | [1] | 3,311 | |||
Investment properties | [1] | 268,267 | |||
Other noncurrent | 15 | [1] | 246 | ||
Liabilities | 3,200 | [1] | 78,677 | ||
Current | 3,200 | [1] | 1,295 | ||
Trade payables, taxes and loans | 3,200 | [1] | 1,295 | ||
Noncurrent | [1] | 77,382 | |||
Including taxes and loans | [1] | 77,382 | |||
Total net assets | 171 | [1] | 202,852 | ||
Company's interest 50% | 50 | [1] | 50 | ||
Company's interest in net assets at estimated fair value | R$ 86 | [1] | R$ 101426 | ||
[1] | Balance sheet after spin-off that took place on February 9, 2018, as described in Note 1.1. |
Investments (Details 2)
Investments (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of joint ventures [line items] | |||
Revenue | R$ 244278 | R$ 146911 | R$ 147128 |
Cost of products sold | 228,319 | 136,362 | 134,714 |
Gross revenue (expenses) | 155,742 | 47,876 | 441 |
Selling expenses | (10,087) | (6,676) | (2,732) |
Finance profit | 129,323 | 110,090 | 192,644 |
Finance costs | 137,879 | 76,646 | 154,270 |
Income and social contribution taxes | 25,919 | 5,949 | 1,451 |
Loss for the year | 126,338 | 27,310 | R$ 7989 |
Cresca's [Member] | |||
Disclosure of joint ventures [line items] | |||
Revenue | 83 | 12,916 | |
Cost of products sold | (684) | (14,404) | |
Gross revenue (expenses) | (601) | (1,488) | |
Selling expenses | (34) | 891 | |
Administrative expenses | (374) | (979) | |
Other profit/expenses | 437 | 92 | |
Finance profit | 32,340 | (578) | |
Finance costs | 16 | (5,257) | |
Loss before tax | 31,784 | (9,285) | |
Income and social contribution taxes | (2,443) | ||
Loss for the year | 29,341 | (9,285) | |
Company's interest 50% | 14,671 | (4,643) | |
Amortization of fair value adjustment on the purchase date (shareholders loans) | 218 | ||
Equity method | R$ 14671 | R$ 4425 |
Property, plant and equiptment
Property, plant and equiptment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | R$ 54745 | R$ 27803 |
Acquisitions | 42,857 | 36,780 |
Disposals | (433) | (456) |
Acquisitions - corporate restructuring | 344 | |
Transfers | ||
Depreciation | (12,683) | (9,382) |
Accounting balance, net | 84,830 | 54,745 |
Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 92,597 | |
Accounting balance, net | 136,886 | 92,597 |
Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (37,852) | |
Accounting balance, net | (52,056) | (37,852) |
Buildings And Improvements [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 192 | 28 |
Acquisitions | 10 | |
Disposals | ||
Transfers | 169 | |
Depreciation | (5) | (5) |
Accounting balance, net | 197 | 192 |
Buildings And Improvements [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 921 | |
Acquisitions | ||
Accounting balance, net | 931 | 921 |
Buildings And Improvements [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (729) | |
Accounting balance, net | (734) | (729) |
Equipment And Facilities [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 2,211 | 1,858 |
Acquisitions | 5,458 | 687 |
Disposals | 215 | (129) |
Transfers | (55) | 116 |
Depreciation | (856) | (321) |
Accounting balance, net | 6,973 | 2,211 |
Equipment And Facilities [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 5,473 | |
Accounting balance, net | 11,091 | 5,473 |
Equipment And Facilities [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (3,262) | |
Accounting balance, net | (4,118) | (3,262) |
Agricultural Vehicles And Machinery [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 7,736 | 6,182 |
Acquisitions | 4,634 | 2,633 |
Disposals | 74 | (324) |
Transfers | (235) | |
Depreciation | (1,214) | (755) |
Accounting balance, net | 10,995 | 7,736 |
Agricultural Vehicles And Machinery [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 20,752 | |
Accounting balance, net | 25,225 | 20,752 |
Agricultural Vehicles And Machinery [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (13,016) | |
Accounting balance, net | (14,230) | (13,016) |
Furniture And Fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 505 | 495 |
Acquisitions | 318 | 108 |
Disposals | 55 | (3) |
Transfers | (6) | |
Depreciation | (110) | (95) |
Accounting balance, net | 762 | 505 |
Furniture And Fixtures [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 1,254 | |
Accounting balance, net | 1,621 | 1,254 |
Furniture And Fixtures [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (749) | |
Accounting balance, net | (859) | (749) |
Total In Operation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 10,644 | 8,563 |
Acquisitions | 10,420 | 3,428 |
Disposals | 344 | (456) |
Transfers | (296) | 285 |
Depreciation | (2,185) | (1,176) |
Accounting balance, net | 18,927 | 10,644 |
Total In Operation [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 28,400 | |
Accounting balance, net | 38,868 | 28,400 |
Total In Operation [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (17,756) | |
Accounting balance, net | (19,941) | (17,756) |
Construction In Progress [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 59 | 4 |
Acquisitions | 52 | 340 |
Disposals | ||
Transfers | (285) | |
Depreciation | ||
Accounting balance, net | 111 | 59 |
Construction In Progress [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 59 | |
Accounting balance, net | 111 | 59 |
Construction In Progress [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | ||
Accounting balance, net | ||
Sugarcane [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 44,042 | 19,236 |
Acquisitions | 32,385 | 33,012 |
Disposals | ||
Transfers | (137) | |
Depreciation | (10,498) | (8,206) |
Accounting balance, net | 65,792 | 44,042 |
Sugarcane [Member] | Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | 64,138 | |
Accounting balance, net | 97,907 | 64,138 |
Sugarcane [Member] | Accumulated depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening balance | (20,096) | |
Accounting balance, net | R$ 32115 | R$ 20096 |
Payables for purchase of farm_2
Payables for purchase of farms (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Payables for purchase of farms | R$ 24646 | ||
Nova Buriti Farm [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Payables for purchase of farms | [1] | 22,085 | |
Sao Jose Farm [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Payables for purchase of farms | R$ 2561 | ||
[1] | On August 30, 2017, the total debt was R$22,126, when the deed of Nova Buriti farm was prepared and consequently a partial amount for the farm was paid in the amount of R$5,802. Of the remaining balance, R$1,500 was paid on October 18, 2017, R$3,665 was paid on January 10, 2018, and R$1,886 was paid on May 29, 2018. During the negotiation, the total price of the farm was renegociated, fully waiving inflation adjustment (IGP-M General Market Price Index), which would be payable by the Company. The amount of R$9,273 was recognized as financial income in the quarter ended September 30, 2017, see Note 23. |
Trade accounts payable and ot_3
Trade accounts payable and others (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Trade Accounts Payable And Others | ||
Trade accounts payable | R$ 48518 | R$ 37805 |
Taxes payable | 6,142 | 5,209 |
Dividends payable | 30,008 | 6,509 |
Advances to customers | 21,201 | 5,631 |
Other liabilities | 576 | 461 |
Total current | 106,445 | 55,615 |
Taxes payable | 11,298 | 1,520 |
Total noncurrent | R$ 11298 | R$ 1520 |
Trade accounts payable and ot_4
Trade accounts payable and others (Details 1) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Trade Accounts Payable And Others | ||
Raw materials and services | R$ 25859 | R$ 24618 |
Operating lease transactions with third parties | 22,659 | 13,187 |
Trade and other current payables to trade suppliers | R$ 48518 | R$ 37805 |
Loans, financing, debentures _3
Loans, financing, debentures and finance leases (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases, Current | R$ 70088 | R$ 56620 | ||
Loans, financing, debentures and finance leases, Non current | 205,932 | 55,555 | ||
Loans, financing, debentures and finance leases | 276,020 | 112,175 | R$ 99845 | |
Financing For Agricultural Costs [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 43,333 | 10,703 | 35,087 | |
Bahia Project Financing [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | [1] | 30,277 | 46,098 | 57,099 |
Working Capital Financing [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 15,782 | |||
Working Capital Financing (USD) [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 5,031 | |||
Financing Of Machinery And Equipment - FINAME [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 6,041 | 1,209 | 114 | |
Financing Of Sugarcane [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 34,512 | 9,273 | 1,772 | |
Debentures [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 141,642 | |||
Finance Lease Sugarcane Crop [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases | 18,539 | 20,795 | ||
Current Loans And Financing [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases, Current | R$ 70088 | 56,620 | ||
Current Loans And Financing [Member] | Financing For Agricultural Costs [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">ABC and Itaú</font></p>" id="sjs-C36"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">ABC and Itaú</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">September/18</font></p>" id="sjs-C37"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">September/18</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 7.22% to 9%</font></p>" id="sjs-C38"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 7.22% to 9%</font></p> | |||
Loans, financing, debentures and finance leases, Current | R$ 31847 | 10,703 | ||
Current Loans And Financing [Member] | Financing For Agricultural Costs (USD) [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Itaú</font></p>" id="sjs-C42"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Itaú</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">November/18</font></p>" id="sjs-C43"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">November/18</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 7.22%</font></p>" id="sjs-C44"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 7.22%</font></p> | |||
Loans, financing, debentures and finance leases, Current | R$ 11486 | |||
Current Loans And Financing [Member] | Bahia Project Financing [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | [1] | <font style="font: 10pt Times New Roman, Times, Serif">BNB and HSBC</font></p>" id="sjs-C48"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">BNB and HSBC</font></p> | ||
Final Maturity | [1] | <font style="font: 10pt Times New Roman, Times, Serif">June/19</font></p>" id="sjs-C49"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">June/19</font></p> | ||
Annual interest rates and charges | [1] | <font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 4% to 9%</font></p>" id="sjs-C50"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 4% to 9%</font></p> | ||
Guarantee | [1] | <font style="font: 10pt Times New Roman, Times, Serif">Jatobá and Chaparral Farms</font></p>" id="sjs-C51"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Jatobá and Chaparral Farms</font></p> | ||
Loans, financing, debentures and finance leases, Current | [1] | R$ 3131 | 15,236 | |
Current Loans And Financing [Member] | Working Capital Financing [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Rabobank</font></p>" id="sjs-C55"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Rabobank</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">May/18</font></p>" id="sjs-C56"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">May/18</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">1.40% to 2.30% + 100% of CDI</font></p>" id="sjs-C57"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">1.40% to 2.30% +  100% of CDI</font></p> | |||
Loans, financing, debentures and finance leases, Current | 15,782 | |||
Current Loans And Financing [Member] | Working Capital Financing (USD) [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | [1] | <font style="font: 10pt Times New Roman, Times, Serif">Itaú</font></p>" id="sjs-C61"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Itaú</font></p> | ||
Final Maturity | [1] | <font style="font: 10pt Times New Roman, Times, Serif">August/17</font></p>" id="sjs-C62"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">August/17</font></p> | ||
Annual interest rates and charges | [1] | 3.49% | ||
Loans, financing, debentures and finance leases, Current | [1] | 5,031 | ||
Current Loans And Financing [Member] | Financing Of Machinery And Equipment - FINAME [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Rabobank and Itaú</font></p>" id="sjs-C67"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Rabobank and Itaú</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">June/19</font></p>" id="sjs-C68"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">June/19</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">TJLP + 3.73%<br /> Fixed rate 9% to 11%</font></p>" id="sjs-C69"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">TJLP + 3.73%<br /> Fixed rate 9% to 11%</font></p> | |||
Guarantee | <font style="font: 10pt Times New Roman, Times, Serif">Machinery and Equipment</font></p>" id="sjs-C70"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Machinery and Equipment</font></p> | |||
Loans, financing, debentures and finance leases, Current | R$ 630 | 1 | ||
Current Loans And Financing [Member] | Financing Of Sugarcane [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Itaú, Rabobank, Banco do Brasil and Santander</font></p>" id="sjs-C74"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Itaú, Rabobank, Banco do Brasil and Santander</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">June/19</font></p>" id="sjs-C75"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">June/19</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">TJLP + 2.70<br /> Fixed rate 9% to 10%</font></p>" id="sjs-C76"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">TJLP + 2.70<br /> Fixed rate 9% to 10%</font></p> | |||
Guarantee | <font style="font: 10pt Times New Roman, Times, Serif">Morro Vermelho and Chaparral Farms</font></p>" id="sjs-C77"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Morro Vermelho and Chaparral Farms</font></p> | |||
Loans, financing, debentures and finance leases, Current | R$ 21318 | 8,248 | ||
Current Loans And Financing [Member] | Finance Lease Sugarcane Crop [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Partnership III</font></p>" id="sjs-C81"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Partnership III</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">November/18</font></p>" id="sjs-C82"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">November/18</font></p> | |||
Annual interest rates and charges | 6.62% | |||
Loans, financing, debentures and finance leases, Current | R$ 1676 | 1,619 | ||
Noncurrent Loans And Financing [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Loans, financing, debentures and finance leases, Non current | R$ 205932 | 55,555 | ||
Noncurrent Loans And Financing [Member] | Financing Of Machinery And Equipment - FINAME [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Rabobank and Itaú</font></p>" id="sjs-C90"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Rabobank and Itaú</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">June/24</font></p>" id="sjs-C91"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">June/24</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">TJLP + 3.73%<br /> Fixed rate 9% to 11%</font></p>" id="sjs-C92"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">TJLP + 3.73%<br /> Fixed rate 9% to 11%</font></p> | |||
Guarantee | <font style="font: 10pt Times New Roman, Times, Serif">Machinery and Equipment</font></p>" id="sjs-C93"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Machinery and Equipment</font></p> | |||
Loans, financing, debentures and finance leases, Non current | R$ 5411 | 1,208 | ||
Noncurrent Loans And Financing [Member] | Financing Of Sugarcane [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Itaú, Rabobank, Banco do Brasil and Santander</font></p>" id="sjs-C97"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Itaú, Rabobank, Banco do Brasil and Santander</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">December/23</font></p>" id="sjs-C98"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">December/23</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">TJLP + 2.70<br /> Fixed rate 9% to 10%</font></p>" id="sjs-C99"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">TJLP + 2.70<br /> Fixed rate 9% to 10%</font></p> | |||
Guarantee | <font style="font: 10pt Times New Roman, Times, Serif">Morro Vermelho and Chaparral Farms</font></p>" id="sjs-C100"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Morro Vermelho and Chaparral Farms</font></p> | |||
Loans, financing, debentures and finance leases, Non current | R$ 13194 | 1,025 | ||
Noncurrent Loans And Financing [Member] | Finance Lease Sugarcane Crop [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Partnership III</font></p>" id="sjs-C104"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Partnership III</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">November/18</font></p>" id="sjs-C105"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">November/18</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">6.62%</font></p>" id="sjs-C106"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">6.62%</font></p> | |||
Loans, financing, debentures and finance leases, Non current | 1,665 | |||
Noncurrent Loans And Financing [Member] | Financing Bahia Project [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | [1] | <font style="font: 10pt Times New Roman, Times, Serif">BNB and HSBC</font></p>" id="sjs-C110"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">BNB and HSBC</font></p> | ||
Final Maturity | [1] | <font style="font: 10pt Times New Roman, Times, Serif">August/23</font></p>" id="sjs-C111"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">August/23</font></p> | ||
Annual interest rates and charges | [1] | <font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 4% to 9%</font></p>" id="sjs-C112"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Fixed rate 4% to 9%</font></p> | ||
Guarantee | [1] | <font style="font: 10pt Times New Roman, Times, Serif">Jatobá and Chaparral Farms</font></p>" id="sjs-C113"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Jatobá and Chaparral Farms</font></p> | ||
Loans, financing, debentures and finance leases, Non current | [1] | R$ 27146 | 30,862 | |
Noncurrent Loans And Financing [Member] | Debentures [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Insurance company</font></p>" id="sjs-C117"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Insurance company</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">July/23</font></p>" id="sjs-C118"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">July/23</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">106.5% and 110% of CDI</font></p>" id="sjs-C119"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">106.5% and 110% of CDI</font></p> | |||
Guarantee | <font style="font: 10pt Times New Roman, Times, Serif">Chaparral Farm</font></p>" id="sjs-C120"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Chaparral Farm</font></p> | |||
Loans, financing, debentures and finance leases, Non current | R$ 141642 | |||
Noncurrent Loans And Financing [Member] | Finance Lease Sugarcane Crop [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Bank | <font style="font: 10pt Times New Roman, Times, Serif">Partnership IV</font></p>" id="sjs-C124"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Partnership IV</font></p> | |||
Final Maturity | <font style="font: 10pt Times New Roman, Times, Serif">January/32</font></p>" id="sjs-C125"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">January/32</font></p> | |||
Annual interest rates and charges | <font style="font: 10pt Times New Roman, Times, Serif">R$/Kg 0.6462</font></p>" id="sjs-C126"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">R$/Kg 0.6462</font></p> | |||
Loans, financing, debentures and finance leases, Non current | R$ 18539 | R$ 20795 | ||
[1] | Financing to raise funds for opening of areas and improvements in Jatoba and Chaparral farms. |
Loans, financing, debentures _4
Loans, financing, debentures and finance leases (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | R$ 112175 | R$ 99845 | |
Contracting | 270,310 | 68,518 | |
Payment of principal | (105,408) | (48,308) | |
Payment of Interest | (10,347) | (6,327) | |
Appropriation of interest | 11,940 | 8,914 | |
Foreign exchange difference | 1,214 | 276 | |
Present value adjustment | (3,864) | (10,743) | |
Balance at end | 276,020 | 112,175 | |
Financing For Agricultural Costs [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 10,703 | 35,087 | |
Contracting | 62,734 | 10,000 | |
Payment of principal | (34,062) | (34,826) | |
Payment of Interest | (1,447) | (2,085) | |
Appropriation of interest | 4,003 | 2,527 | |
Foreign exchange difference | 1,402 | ||
Present value adjustment | |||
Balance at end | 43,333 | 10,703 | |
Bahia Project Financing [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | [1] | 46,098 | 57,099 |
Contracting | [1] | 13,904 | 1,607 |
Payment of principal | [1] | (27,622) | (13,131) |
Payment of Interest | [1] | (4,706) | (3,954) |
Appropriation of interest | [1] | 2,603 | 4,477 |
Foreign exchange difference | [1] | ||
Present value adjustment | [1] | ||
Balance at end | [1] | 30,277 | 46,098 |
Working Capital Financing [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 15,782 | ||
Contracting | 16,250 | 15,000 | |
Payment of principal | (31,523) | ||
Payment of Interest | (1,893) | (106) | |
Appropriation of interest | 1,384 | 888 | |
Foreign exchange difference | |||
Present value adjustment | |||
Balance at end | 15,782 | ||
Working Capital Financing (USD) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 5,031 | ||
Contracting | 4,661 | ||
Payment of principal | (4,703) | ||
Payment of Interest | (83) | ||
Appropriation of interest | 18 | 94 | |
Foreign exchange difference | (263) | 276 | |
Present value adjustment | |||
Balance at end | 5,031 | ||
Financing Of Machinery And Equipment - FINAME [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 1,209 | 114 | |
Contracting | 4,700 | 1,201 | |
Payment of principal | (109) | ||
Payment of Interest | (404) | (5) | |
Appropriation of interest | 461 | 8 | |
Foreign exchange difference | 75 | ||
Present value adjustment | |||
Balance at end | 6,041 | 1,209 | |
Financing Of Sugarcane [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 9,273 | 1,772 | |
Contracting | 32,557 | 7,000 | |
Payment of principal | (7,498) | (242) | |
Payment of Interest | (1,814) | (177) | |
Appropriation of interest | 1,994 | 920 | |
Foreign exchange difference | |||
Present value adjustment | |||
Balance at end | 34,512 | 9,273 | |
Finance Lease - Sugarcane Crop - Partnership III [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 3,284 | 5,773 | |
Contracting | |||
Payment of principal | |||
Payment of Interest | |||
Appropriation of interest | |||
Foreign exchange difference | |||
Present value adjustment | (1,608) | (2,489) | |
Balance at end | 1,676 | 3,284 | |
Finance Lease Sugarcane Crop [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | 20,795 | ||
Contracting | 29,049 | ||
Payment of principal | |||
Payment of Interest | |||
Appropriation of interest | |||
Foreign exchange difference | |||
Present value adjustment | (2,256) | (8,254) | |
Balance at end | 18,539 | 20,795 | |
Debentures [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Balance at beginning | |||
Contracting | 140,165 | ||
Payment of principal | |||
Payment of Interest | |||
Appropriation of interest | 1,477 | ||
Foreign exchange difference | |||
Present value adjustment | |||
Balance at end | R$ 141642 | ||
[1] | Financing to raise funds for opening of areas and improvements in Jatoba and Chaparral farms. |
Income and social contributio_3
Income and social contribution taxes (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Noncurrent | ||
Tax loss carryforwards (NOL) | R$ 43442 | R$ 58458 |
Biological assets | 5,942 | 2,401 |
Financial lease | 2,103 | |
Contingency, bonuses and fair value | 11,125 | 6,162 |
Hedge | 364 | 635 |
Provision for doubtful acoorents | 668 | 624 |
Difference in cost of farms | 170 | 170 |
Provision of other accounts payable and receivable | 1,794 | 2,918 |
Total non-current assets | 65,608 | 71,368 |
Noncurrent | ||
Biological assets | 13,386 | 2,308 |
Finance lease | 548 | |
Contingency, bonuses and fair value | 3,574 | |
Surplus on investment | 1,733 | |
Costs of transactions | 499 | |
Provision of residual value and useful life of PPE assets | 1,633 | 1,397 |
Accelerated depreciation of assets for rural activity | 11,493 | 13,883 |
Total | 32,866 | 17,588 |
Net balance | R$ 32742 | R$ 53780 |
Income and social contributio_4
Income and social contribution taxes (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income And Social Contribution Taxes | ||
Deferred tax liability asset | R$ 53780 | R$ 55594 |
Tax losses | (15,016) | (4,820) |
Adjustments in biological assets and agricultural products | (7,543) | 2,182 |
Financial lease | 1,555 | |
Provisions for contingency and fair value | 1,389 | (2,043) |
Hedge | (271) | (192) |
Surplus on investment | (1,733) | |
Costs of transactions | (499) | |
Allowance for doubtful accounts | 44 | 176 |
Provision for other accounts payable and receivable | (1,124) | 2,918 |
Accelerated depreciation | 2,154 | (35) |
Total without effect from conversion | 32,736 | |
Effect of conversion | 6 | |
Deferred tax liability asset | R$ 32742 | R$ 53780 |
Income and social contributio_5
Income and social contribution taxes (Details 2) R$ in Thousands | Jun. 30, 2018BRL (R$) |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |
Total | R$ 65608 |
Later Than One Year And Not Later Than Two Years [member] | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |
Total | 20,721 |
Later than two years and not later than three years [member] | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |
Total | 1,973 |
Later than three years and not later than four years [member] | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |
Total | 1,935 |
Later than four years and not later than five years [member] | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |
Total | 2,370 |
Later than five years and not later than ten years [member] | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |
Total | R$ 38609 |
Income and social contributio_6
Income and social contribution taxes (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Income And Social Contribution Taxes | ||||
Income before income and social contribution taxes | R$ 152257 | R$ 33259 | R$ 9440 | |
Combined nominal rate of income tax and social contribution taxes | 34.00% | 34.00% | 34.00% | |
Net combined nominal rate of income tax and social contribution taxes | R$ 51767 | R$ 11308 | R$ 3210 | |
Share of loss in a Joint Venture | 4,988 | (1,504) | (174) | |
Management bonus | (2,331) | (2,025) | (1,524) | |
Share-based incentive plan - ILPA | (208) | |||
Nondeductible expenses | (135) | (709) | (61) | |
Profit or loss of joint venture abroad | (378) | |||
Net effect of subsidiaries taxed whose profit is computed as a percentage of gross revenue (*) | [1] | 19,121 | 10,320 | 3,931 |
Net effect of spin-off of joint venture abroad | 4,778 | |||
Other permanent addition | (365) | (345) | (413) | |
Income and social contribution taxes for the year | (25,919) | (5,949) | (1,451) | |
Current | (4,875) | (4,135) | (15,998) | |
Deferred | (21,044) | (1,814) | 14,547 | |
Net income and social contribution taxes for the year | R$ 25919 | R$ 5949 | R$ 1451 | |
Effective rate | (17.00%) | (18.00%) | (15.00%) | |
[1] | For some of our real estate subsidiaries, profit tax is measured based on the regime whereby profit is computed as a percentage of gross revenue, i.e., income tax is determined on a simplified base to calculate the taxable profit (32% for lease revenues, 8% for sale of farms and 100% for other earnings). This results effectively in taxing the profit of subsidiaries at a rate lower than if taxable income were based on accounting records. |
Equity (Details)
Equity (Details) - shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | 56,888,916 | 56,888,916 | |
Total outstanding shares | 21,910,701 | 30,180,801 | |
Outstanding shares as percentage of total shares (%) | 39.00% | 53.00% | |
Treasury [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | 3,086,748 | 3,254,556 | |
Other [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | 21,910,701 | 30,180,801 | |
Cresud [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | [1] | 23,291,500 | 23,291,500 |
Board of Directors [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | 8,431,700 | 161,900 | |
Executive Board [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | 168,267 | 159 | |
Officers [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total shares of paid-up capital | 8,599,967 | 162,059 | |
[1] | Of this amount, 140,450 shares are held by Agro Managers S.A. and 1,000 shares are held by Agro Managers, subsidiaries of Cresud S.A. |
Equity (Details 1)
Equity (Details 1) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Equity | |||
Profit for the year | [1] | R$ 126338 | R$ 27310 |
(-) Constitution of legal reserve (5% of net profit) | (6,317) | (1,366) | |
Adjusted net profit | 120,021 | 25,944 | |
(-) Mandatory minimum dividends - 25% of adjusted net profit | (30,005) | (6,486) | |
(-) Additional dividends proposed | (10,995) | (6,486) | |
Proposed dividends | (41,000) | (12,972) | |
Set up of reserve for investments and expansion | 79,021 | 12,972 | |
Total paid-in capital (per thousand shares) | 56,889 | 56,889 | |
(-) Treasury shares (per thousand shares) | (3,087) | (3,255) | |
(=) Free float (per thousand shares) | R$ 53802 | R$ 53634 | |
Dividend per share (R$) | R$ 0.76 | R$ 0.24 | |
[1] | Of this amount, 140,450 shares are held by Agro Managers S.A. and 1,000 shares are held by Agro Managers, subsidiaries of Cresud S.A. |
Equity (Details 2)
Equity (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Equity | ||
Beginning | R$ 36797 | R$ 37203 |
Beginning (in shares) | 3,254,556 | 3,344,211 |
Acquisitions | R$ 610 | R$ 15551 |
Acquisitions (in shares) | 50,300 | 1,345,400 |
Cancellations | ||
Cancellations (in shares) | (1,337,684) | |
Transfer to Board of Executive Officers - 3rd Grant of Shares | R$ 1076 | |
Transfer to Board of Executive Officers - 3rd Grant of Shares (in shares) | (97,371) | |
Transfer to Board of Executive Officers - 2nd and 3rd Grant of Shares | R$ 2199 | |
Transfer to Board of Executive Officers - 2nd and 3rd Grant of Shares (in shares) | (218,108) | |
Ending | R$ 35208 | R$ 36797 |
Ending (in shares) | 3,086,748 | 3,254,556 |
Equity (Details 3)
Equity (Details 3) - R$ / shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Equity | ||
Price of share - R$ | R$ 13.55 | R$ 12.2 |
Maturity (years) | 15 years | 15 years |
Maturity (day/month/year) | Apr. 27, 2021 | Apr. 27, 2021 |
Exercise price at year end - R$/share | R$ 19.57 | R$ 18.75 |
Number of existing shares | 56,888,916 | 56,888,916 |
Percentage of capital shares subject to conversion (percentage of new capital) - % | R$ 20 | R$ 20 |
Number of outstanding shares and stock purchase warrants | 256,000 | 256,000 |
Segment information (Details)
Segment information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 244278 | R$ 146911 | R$ 147128 |
Gain on sale of farm | 39,817 | 26,716 | |
Change in fair value of biological assets and agricultural products (Note 9) | 99,083 | 12,266 | (12,632) |
(Impairment) of net realizable value of agricultural products after harvest, net | 883 | (1,655) | |
Cost of sales | 228,319 | 136,362 | 134,714 |
Gross profit | 155,742 | 47,876 | 441 |
Operating profit (expenses) | |||
Selling expenses | (10,087) | (6,676) | (2,732) |
General and administrative expenses | (34,945) | (30,941) | (28,944) |
Other operating expenses, net | 35,432 | (6,019) | 2,812 |
Share of loss of a joint venture | 14,671 | (4,425) | (511) |
Operating profit (loss) | 160,813 | (185) | (28,934) |
Net finance profit | |||
Finance income | 129,323 | 110,090 | 192,644 |
Finance expenses | 137,879 | 76,646 | 154,270 |
Profit (loss) before income and social contribution taxes | 152,257 | 33,259 | |
Income and social contribution taxes | 25,919 | 5,949 | 1,451 |
Net profit for the year | 126,338 | 27,310 | R$ 7989 |
Total assets | 1,179,599 | 883,293 | |
Total liabilities | 423,735 | 215,825 | |
Real Estate [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 5,133 | ||
Gain on sale of farm | 39,817 | 26,716 | |
Change in fair value of biological assets and agricultural products (Note 9) | |||
(Impairment) of net realizable value of agricultural products after harvest, net | |||
Cost of sales | |||
Gross profit | 44,950 | 26,716 | |
Operating profit (expenses) | |||
Selling expenses | (8) | ||
General and administrative expenses | |||
Other operating expenses, net | |||
Share of loss of a joint venture | |||
Operating profit (loss) | 44,950 | 26,708 | |
Net finance profit | |||
Finance income | 20,843 | 8,276 | |
Finance expenses | (5,158) | (8,057) | |
Profit (loss) before income and social contribution taxes | 60,635 | 26,927 | |
Income and social contribution taxes | (20,616) | (9,155) | |
Net profit for the year | 40,019 | 17,772 | |
Total assets | 624,417 | 421,769 | |
Total liabilities | 41,090 | ||
Grains [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 97,180 | 68,971 | |
Gain on sale of farm | |||
Change in fair value of biological assets and agricultural products (Note 9) | 55,584 | 4,302 | |
(Impairment) of net realizable value of agricultural products after harvest, net | 905 | (1,652) | |
Cost of sales | (89,633) | (59,770) | |
Gross profit | 64,036 | 11,851 | |
Operating profit (expenses) | |||
Selling expenses | (9,730) | (6,144) | |
General and administrative expenses | |||
Other operating expenses, net | |||
Share of loss of a joint venture | |||
Operating profit (loss) | 54,306 | 5,707 | |
Net finance profit | |||
Finance income | 12,388 | 9,901 | |
Finance expenses | (6,606) | (8,881) | |
Profit (loss) before income and social contribution taxes | 60,088 | 6,727 | |
Income and social contribution taxes | (20,430) | (2,287) | |
Net profit for the year | 39,658 | 4,440 | |
Total assets | 78,070 | 27,938 | |
Total liabilities | 73,610 | 10,703 | |
Sugarcane [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 138,143 | 73,658 | |
Gain on sale of farm | |||
Change in fair value of biological assets and agricultural products (Note 9) | 43,952 | 11,532 | |
(Impairment) of net realizable value of agricultural products after harvest, net | |||
Cost of sales | (134,028) | (74,498) | |
Gross profit | 48,067 | 10,692 | |
Operating profit (expenses) | |||
Selling expenses | |||
General and administrative expenses | |||
Other operating expenses, net | |||
Share of loss of a joint venture | |||
Operating profit (loss) | 48,067 | 10,692 | |
Net finance profit | |||
Finance income | 18,208 | 8,254 | |
Finance expenses | (20,597) | (921) | |
Profit (loss) before income and social contribution taxes | 45,678 | 18,025 | |
Income and social contribution taxes | (15,531) | (6,128) | |
Net profit for the year | 30,147 | 11,897 | |
Total assets | 129,787 | 112,670 | |
Total liabilities | 52,310 | 33,353 | |
Cattle Raising [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 4,081 | 369 | |
Gain on sale of farm | |||
Change in fair value of biological assets and agricultural products (Note 9) | 239 | (3,568) | |
(Impairment) of net realizable value of agricultural products after harvest, net | |||
Cost of sales | (4,378) | (156) | |
Gross profit | (58) | (3,355) | |
Operating profit (expenses) | |||
Selling expenses | (383) | (80) | |
General and administrative expenses | |||
Other operating expenses, net | |||
Share of loss of a joint venture | |||
Operating profit (loss) | (441) | (3,435) | |
Net finance profit | |||
Finance income | |||
Finance expenses | |||
Profit (loss) before income and social contribution taxes | (441) | (3,435) | |
Income and social contribution taxes | 150 | 1,168 | |
Net profit for the year | (291) | (2,267) | |
Total assets | 35,438 | 5,952 | |
Total liabilities | |||
Other [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (259) | 3,913 | |
Gain on sale of farm | |||
Change in fair value of biological assets and agricultural products (Note 9) | (692) | ||
(Impairment) of net realizable value of agricultural products after harvest, net | (22) | (3) | |
Cost of sales | (280) | (1,938) | |
Gross profit | (1,253) | 1,972 | |
Operating profit (expenses) | |||
Selling expenses | 26 | (444) | |
General and administrative expenses | |||
Other operating expenses, net | |||
Share of loss of a joint venture | |||
Operating profit (loss) | (1,227) | 1,528 | |
Net finance profit | |||
Finance income | 18,501 | 1,292 | |
Finance expenses | (18,261) | (9,097) | |
Profit (loss) before income and social contribution taxes | (987) | (6,277) | |
Income and social contribution taxes | 335 | 2,134 | |
Net profit for the year | (652) | (4,143) | |
Total assets | 14,073 | 1,257 | |
Total liabilities | |||
Not Allocated [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | |||
Gain on sale of farm | |||
Change in fair value of biological assets and agricultural products (Note 9) | |||
(Impairment) of net realizable value of agricultural products after harvest, net | |||
Cost of sales | |||
Gross profit | |||
Operating profit (expenses) | |||
Selling expenses | |||
General and administrative expenses | (34,945) | (30,941) | |
Other operating expenses, net | 35,432 | (6,019) | |
Share of loss of a joint venture | 14,671 | (4,425) | |
Operating profit (loss) | 15,158 | (41,385) | |
Net finance profit | |||
Finance income | 59,383 | 82,367 | |
Finance expenses | (87,257) | (49,690) | |
Profit (loss) before income and social contribution taxes | (12,716) | (8,708) | |
Income and social contribution taxes | 30,173 | 8,319 | |
Net profit for the year | 17,457 | (389) | |
Total assets | 297,814 | 313,707 | |
Total liabilities | R$ 297815 | R$ 130679 |
Segment information (Details 1)
Segment information (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Net income | R$ 126338 | R$ 27310 | R$ 7989 | |
Non-current assets | 807,320 | 712,191 | ||
Brazil | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Net income | 218,224 | 137,397 | ||
Non-current assets | 646,528 | 736,170 | ||
Subsidiaries Abroad | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Net income | [1] | 26,054 | 9,514 | |
Non-current assets | [1] | R$ 182628 | R$ 3749 | |
[1] | The subsidiaries abroad are all located in Paraguay. |
Revenues (Details)
Revenues (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | |||
Sales of grains | R$ 99875 | R$ 71272 | R$ 62878 |
Sales of sugarcane | 142,037 | 75,986 | 85,916 |
Revenue from cattle raising | 4,115 | ||
Lease | 6,592 | 2,820 | 2,260 |
Other revenues | 132 | 2,227 | 4,347 |
Gross operating revenue | 252,751 | 152,305 | 155,401 |
Sales deductions | |||
Taxes on sales | (1,913) | (1,314) | (8,273) |
Net revenue | R$ 244278 | R$ 146911 | R$ 147128 |
Revenues (Details 1)
Revenues (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
MajorPropertiesClassLineItems [Line Items] | |||
Gross revenue from sale of farm | R$ 52406 | R$ 36016 | |
Sales taxes | (1,913) | (1,314) | R$ 8273 |
Cost of sale of farm | (10,676) | (7,986) | |
Gain from sale of farm | 39,817 | R$ 26716 | |
Araucaria V [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gross revenue from sale of farm | 52,406 | ||
Sales taxes | (1,913) | ||
Cost of sale of farm | (10,676) | ||
Gain from sale of farm | 39,817 | ||
Jatoba I [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gross revenue from sale of farm | 8,419 | ||
Sales taxes | (307) | ||
Cost of sale of farm | (1,102) | ||
Gain from sale of farm | 7,010 | ||
Cremaq [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gross revenue from sale of farm | 4 | ||
Sales taxes | (146) | ||
Cost of sale of farm | |||
Gain from sale of farm | 3,854 | ||
Araucaria III [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gross revenue from sale of farm | 9,866 | ||
Sales taxes | (360) | ||
Cost of sale of farm | (3) | ||
Gain from sale of farm | 6,506 | ||
Araucaria IV [Member] | |||
MajorPropertiesClassLineItems [Line Items] | |||
Gross revenue from sale of farm | 13,731 | ||
Sales taxes | (501) | ||
Cost of sale of farm | (3,884) | ||
Gain from sale of farm | R$ 9346 |
Expenses by nature (Details)
Expenses by nature (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
IncomeStatementLocationsLineItems [Line Items] | |||
Depreciation and amortization | R$ 12899 | R$ 11012 | R$ 21957 |
Personnel expenses | 30,621 | 26,836 | 26,455 |
Expenses with service provider | 57,293 | 56,478 | 56,537 |
Leasing | 8,488 | 11,817 | 8,173 |
Cost of agricultural products | 130,188 | 50,024 | 41,924 |
Freight and storage | 7,731 | 5,025 | 2,418 |
Allowance for doubtful accounts | 133 | 516 | (2,686) |
Onerous contracts | |||
Losses on receivables | 3,000 | ||
Sale of farm | 8 | ||
Maintenance, travel expenses and others | 15,675 | 8,248 | 8,612 |
Total | 273,351 | 173,979 | 166,390 |
Cost of products sold [member] | |||
IncomeStatementLocationsLineItems [Line Items] | |||
Depreciation and amortization | 22,406 | 14,326 | 21,211 |
Personnel expenses | 4,265 | 4,579 | 7,320 |
Expenses with service provider | 53,014 | 52,706 | 53,562 |
Leasing | 7,799 | 11,089 | 7,385 |
Cost of agricultural products | 130,188 | 50,024 | 41,924 |
Freight and storage | |||
Allowance for doubtful accounts | |||
Onerous contracts | |||
Losses on receivables | |||
Sale of farm | |||
Maintenance, travel expenses and others | 10,647 | 3,638 | 3,312 |
Total | 228,319 | 136,362 | 134,714 |
Selling expenses [member] | |||
IncomeStatementLocationsLineItems [Line Items] | |||
Depreciation and amortization | |||
Personnel expenses | 2,223 | 1,058 | |
Expenses with service provider | |||
Leasing | |||
Cost of agricultural products | |||
Freight and storage | 7,731 | 5,025 | 2,418 |
Allowance for doubtful accounts | 133 | 516 | (2,686) |
Onerous contracts | |||
Losses on receivables | 3,000 | ||
Sale of farm | 8 | ||
Maintenance, travel expenses and others | 69 | ||
Total | 10,087 | 6,676 | 2,732 |
General and administrative expenses [member] | |||
IncomeStatementLocationsLineItems [Line Items] | |||
Depreciation and amortization | 816 | 701 | 746 |
Personnel expenses | 24,133 | 21,199 | 19,135 |
Expenses with service provider | 4,279 | 3,772 | 2,975 |
Leasing | 689 | 728 | 788 |
Cost of agricultural products | |||
Freight and storage | |||
Allowance for doubtful accounts | |||
Onerous contracts | |||
Losses on receivables | |||
Sale of farm | |||
Maintenance, travel expenses and others | 5,028 | 4,541 | 5,300 |
Total | R$ 34945 | R$ 30941 | R$ 28944 |
Management compensation (Detail
Management compensation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Management Compensation | |||
Board of directors and executive board compensation | R$ 2491 | R$ 3528 | R$ 2756 |
Bonuses | 6,856 | 5,957 | 4,483 |
Total compensation | R$ 9347 | R$ 9485 | R$ 7239 |
Management compensation (Deta_2
Management compensation (Details 1) R$ in Thousands | 12 Months Ended |
Jun. 30, 2018BRL (R$) | |
VestingGrantLineItems [Line Items] | |
Balance at beginning | R$ 218108 |
Exercised | 218,108 |
Second Grant [Member] | |
VestingGrantLineItems [Line Items] | |
Balance at beginning | 109,054 |
Exercised | (109,054) |
Third Grant [Member] | |
VestingGrantLineItems [Line Items] | |
Balance at beginning | 109,054 |
Exercised | R$ 109054 |
Management compensation (Deta_3
Management compensation (Details Narrative) R$ / shares in Units, R$ in Thousands | Sep. 27, 2017BRL (R$)NR$ / shares | Jun. 30, 2018BRL (R$) | Jun. 30, 2017BRL (R$) | Jun. 30, 2016BRL (R$) |
Disclosure of transactions between related parties [line items] | ||||
Total compensation | R$ 9347 | R$ 9485 | R$ 7239 | |
Stock Options | N | 109,054 | |||
Exercise Price (Per share) | R$ / shares | R$ 8.52 | |||
Total exercise price | R$ 1827 | |||
Officer And Board Of Director [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Total compensation | R$ 11000 |
Other operating income (expen_3
Other operating income (expenses), net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Other Operating Income Expenses Net | ||||
Gain/loss on sale of PPE | R$ 380 | R$ 479 | R$ 33 | |
Reversal of management fee - Cresca | [1] | (3,318) | ||
Provision for legal claims | [2] | 387 | (139) | 2,213 |
Alto Taquari Farm | [3] | 34 | 2,277 | |
Surplus gain from spin-off (Note 1.1) | 5,098 | (500) | ||
Write-off of effect of conversion of joint venture due to spin-off (Note 1.1) | 30,616 | |||
Other | (289) | (2,117) | (1,211) | |
Other operating expenses, net | R$ 35432 | R$ 6019 | R$ 2812 | |
[1] | On October 5, 2016, the Company entered into an agreement with the shareholder Carlos Casado S.A., which provides for the termination of the land development consultancy agreement. The termination of this agreement resulted in a reversal of revenue amounting to R$1,050. At December 31, 2016, the advisory agreement recorded under Intangible Assets," in the amount of R$1,440, was derecognized. At June 30, 2017, the Company recognized that it should have received amounts net of taxes and recorded a loss of R$828 related to taxes levied on settlement of the agreement. | |||
[2] | The amount recognized in June 2016 refers to the reversal of provision for INSS of foreign members of the Board of Directors. | |||
[3] | In June 2016, the Company obtained a discount on the payment of acquisition of Alto Taquari Farm. |
Other operating income (expen_4
Other operating income (expenses), net (Details Narrative) - BRL (R$) R$ in Thousands | Oct. 05, 2016 | Aug. 18, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||||||
Net of taxes | R$ 828 | |||||
Other expenses | R$ 289 | (2,117) | R$ 1211 | |||
Other operating expenses | R$ 35432 | R$ 6019 | R$ 2812 | |||
Chief Executive Officer [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Other expenses | R$ 1394 | |||||
Other operating expenses | R$ 630 | |||||
Agreement Of Shareholder Carlos Casado S.A [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Reversal of revenue | R$ 1050 | |||||
Intangible Assets | R$ 1440 |
Financial income and expenses_2
Financial income and expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Financial income | ||||
Interest on marketable securities | R$ 4341 | R$ 15383 | R$ 39509 | |
Interest on receivable | [1] | 10,462 | 4,878 | 5,506 |
Monetary variations | 160 | 619 | ||
Foreign exchange variation | 12,058 | 11,166 | 8,933 | |
Gain on remeasurement of receivables from sale of farms | 39,337 | 15,818 | 22,499 | |
Realized profit from derivative transactions | 16,861 | 19,576 | 77,448 | |
Unrealized profit from derivative transactions | 46,104 | 42,650 | 38,749 | |
Total | 129,323 | 110,090 | 192,644 | |
Financial expenses | ||||
Marketable securities charges | (1,372) | (2,565) | (9,884) | |
Bank charges | (685) | (1,080) | (1,405) | |
Interest accrued | [2] | (28,768) | (8,963) | (8,202) |
Monetary variation | (346) | (541) | (3,164) | |
Foreign exchange variation | (11,792) | (10,917) | (8,738) | |
Loss on remeasurement of receivables from sale of farms | (26,616) | (7,789) | (12,649) | |
Realized loss from derivative financial transactions | (23,968) | (3,654) | (72,675) | |
Unrealized loss from derivative financial transactions | (44,332) | (41,137) | (37,553) | |
Total | 137,879 | 76,646 | 154,270 | |
Financial income (expense), net | R$ 8556 | R$ 33444 | R$ 38374 | |
[1] | Mainly represented by financial income obtained from renegotiation of the Nova Buriti farm, in the amount of R$9,273, according to Note 13. | |||
[2] | The amount of R$16,563 refers to the waiver of 100% of the interest on agreements entered into with Cresca, see Note 1.1. |
Financial income and expenses_3
Financial income and expenses (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financial Income And Expenses | |||
Monetary variations | R$ 186 | R$ 78 | R$ 3164 |
Foreign exchange difference | 266 | 249 | 195 |
Realization of present value on balance of accounts receivable | 12,721 | 8,029 | 9,850 |
Income from Derivative financial instruments | (7,107) | 15,922 | 4,773 |
Unrealized profit from Derivative financial instruments | R$ 1772 | R$ 1513 | R$ 1196 |
Earnings per share (Details)
Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings per share [abstract] | |||
Net profit for the year | R$ 126338 | R$ 27310 | R$ 7989 |
Weighted average number of common shares issued (thousands) | 53,750 | 57,241 | 58,227 |
Effect from dilution - shares (a) | 64 | 352 | 357 |
Weighted average number of common shares issued adjusted by the dilution effect | 53,813 | 57,593 | 58,584 |
Basic earnings per share | R$ 2.3505 | R$ 0.4771 | R$ 0.1372 |
Diluted earnings per share | R$ 2.3477 | R$ 0.4742 | R$ 0.1364 |
Provision for legal claims (Det
Provision for legal claims (Details) - Provision For Probable Losses [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of other provisions [line items] | ||
Opening balance | R$ 1594 | R$ 1455 |
Additions | 453 | 1,050 |
Monetary restatement | 173 | 217 |
Reversal/payments | (1,013) | (1,128) |
Total balance | 1,207 | 1,594 |
Labor [Member] | ||
Disclosure of other provisions [line items] | ||
Opening balance | 1,399 | 1,143 |
Additions | 131 | 431 |
Monetary restatement | 173 | 138 |
Reversal/payments | (713) | (313) |
Total balance | 990 | 1,399 |
Administrative [Member] | ||
Disclosure of other provisions [line items] | ||
Opening balance | ||
Additions | 300 | |
Monetary restatement | ||
Reversal/payments | (300) | |
Total balance | ||
Tax [Member] | ||
Disclosure of other provisions [line items] | ||
Opening balance | 195 | 312 |
Additions | ||
Monetary restatement | ||
Reversal/payments | (117) | |
Total balance | 195 | 195 |
Civil [Member] | ||
Disclosure of other provisions [line items] | ||
Opening balance | ||
Additions | 22 | 619 |
Monetary restatement | 79 | |
Reversal/payments | (698) | |
Total balance | R$ 22 |
Provision for legal claims (D_2
Provision for legal claims (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Risk Of Loss [Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | R$ 17333 | R$ 16548 |
Judicial Deposits[Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 1,505 | 1,789 |
Civil [Member] | Risk Of Loss [Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 11,232 | 10,719 |
Civil [Member] | Judicial Deposits[Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 129 | 127 |
Tax [Member] | Risk Of Loss [Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 4,858 | 4,315 |
Tax [Member] | Judicial Deposits[Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 1,099 | 1,051 |
Labor [Member] | Risk Of Loss [Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 964 | 1,514 |
Labor [Member] | Judicial Deposits[Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | 277 | 611 |
Environmental [Member] | Risk Of Loss [Member] | ||
Disclosure of other provisions [line items] | ||
Loss Contigencies | R$ 279 |
Commitments (Details)
Commitments (Details) - ETH Bioenergia [Member] R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018BRL (R$)N | Jun. 30, 2017BRL (R$)N | Jun. 30, 2016BRL (R$)N | |
LegalEntityLineItems [Line Items] | |||
Number of sugarcane (tons) | N | 842,960 | 720,548 | 1,075,183 |
Gross revenue from sugarcane | R$ | R$ 81375 | R$ 59811 | R$ 85916 |
Commitments (Details 1)
Commitments (Details 1) - ETH Bioenergia [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
LegalEntityLineItems [Line Items] | |||
Gross revenue from sugarcane | R$ 81375 | R$ 59811 | R$ 85916 |
Lease agreement - Partnership (II) [Member] | |||
LegalEntityLineItems [Line Items] | |||
Gross revenue from sugarcane | R$ 1877 | R$ 2081 | R$ 2150 |
Commitments (Details 2)
Commitments (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Sugarcane Agricultural Partnership Agreement [Member] | ETH Bioenergia [Member] | |||
LegalEntityLineItems [Line Items] | |||
Operating lease | R$ 3407 | R$ 1017 | R$ 127 |
Commitments (Details 3)
Commitments (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Sugarcane Agricultural Partnership Agreement [Member] | ETH Bioenergia [Member] | |||
LegalEntityLineItems [Line Items] | |||
Finance lease (sugarcane crop) | R$ 1676 | R$ 3284 | R$ 5773 |
Commitments (Details 4)
Commitments (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Sugarcane Agricultural Partnership Agreement (IV) [Member] | ETH Bioenergia [Member] | ||
TypeOfAgreementLineItems [Line Items] | ||
Finance lease (sugarcane crop) | R$ 18539 | R$ 20795 |
Commitments (Details 5)
Commitments (Details 5) - ETH Bioenergia [Member] R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2018BRL (R$)N | Jun. 30, 2017BRL (R$)N | Jun. 30, 2016N | |
TypeOfAgreementLineItems [Line Items] | |||
Number of sugarcane (tons) | 842,960 | 720,548 | 1,075,183 |
Sugarcane Agricultural Partnership Agreement (IV) [Member] | |||
TypeOfAgreementLineItems [Line Items] | |||
Number of sugarcane (tons) | 838,501 | 217,797 | |
Gross sugarcane sales | R$ | R$ 56848 | R$ 16175 |
Transactions with related par_3
Transactions with related parties (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |||
Current assets | R$ 372279 | R$ 171102 | |
Noncurrent assets | 807,320 | 712,191 | |
Current liabilities:- | |||
trade accounts payable | 106,445 | 55,615 | |
Cresud [Member] | |||
TypesOfFinancialLiabilitiesLineItems [Line Items] | |||
Current assets | [1] | 303 | 1,298 |
Current liabilities:- | |||
trade accounts payable | [1] | 36 | 936 |
Other [Member] | |||
TypesOfFinancialLiabilitiesLineItems [Line Items] | |||
Current assets | [2] | 1,357 | |
Current liabilities:- | |||
trade accounts payable | 13 | ||
Cresca [Member] | |||
TypesOfFinancialLiabilitiesLineItems [Line Items] | |||
Noncurrent assets | [3] | 35,640 | |
Current liabilities:- | |||
trade accounts payable | 397 | ||
Ombu [Member] | |||
Current liabilities:- | |||
trade accounts payable | 332 | ||
Trade Accounts Payable [Member] | |||
Current liabilities:- | |||
trade accounts payable | [4] | R$ 1450 | R$ 3451 |
[1] | Expenses and revenue related to implementation of the budget and controls system and reimbursement of general expenses; | ||
[2] | The amounts substantially refer to the total shares exercised under the Second and Third Programs, as detailed in Note 21. | ||
[3] | On February 1, 2018, the Company resolved, at a Meeting of the Board of Executive Officers, to waive 100% of the interest earned on loan agreements and receivables pertaining to Cresca. On February 9, 2018, date of spin-off of the joint venture Cresca, the debt of US$5,727 (R$18,796) was transferred to Moroti (Note 1.1). | ||
[4] | Acquisition of biological assets and other items related to the Palmeiras operation; |
Insurance (Details)
Insurance (Details) R$ in Thousands | Jun. 30, 2018BRL (R$) |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |
liabilities covered under risk insurance | R$ 58107 |
Civil Liability [Member] | |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |
liabilities covered under risk insurance | 30,000 |
Civil, Professional And General Liability [Member] | |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |
liabilities covered under risk insurance | 5,000 |
Machinery [Member] | |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |
liabilities covered under risk insurance | 8,432 |
Fire/Lightning/Explosion/Electrical damage (Office) [Member] | |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |
liabilities covered under risk insurance | 775 |
Storage Silo (Chaparral Farm) [Member] | |
TypesOfFinancialLiabilitiesLineItems [Line Items] | |
liabilities covered under risk insurance | R$ 13900 |
Subsequent events (Details Narr
Subsequent events (Details Narrative) R$ in Thousands | Aug. 28, 2018a | Jul. 31, 2018BRL (R$) | Jun. 13, 2018a |
Jatoba Farm [Member] | Agreement [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Sale of land in area | 9,784 | ||
Description of land location | City of Jaborandi in Bahia.</font></p>" id="sjs-D5"><p><font style="font: 10pt Times New Roman, Times, Serif">City of Jaborandi in Bahia.</font></p> | ||
Description of transaction | <font style="font: normal 10pt Times New Roman, Times, Serif">285 soybean bags per hectare or R$177,862.</font></p>" id="sjs-D6"><p style="font: 10pt Times New Roman, Times, Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">285 soybean bags per hectare or R$177,862.</font></p> | ||
Subsequent Events [Member] | Lease Agreement [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Description of land location | Municipality of Sao Felix do Araguaia, in the state of Mato Grosso – Brazil.</font></p>" id="sjs-B9"><p><font style="font: 10pt Times New Roman, Times, Serif">Municipality of Sao Felix do Araguaia, in the state of Mato Grosso – Brazil.</font></p> | ||
Description of transaction | Payment a minimum of 9.39 soybean bags per hectare or 17% of total production.</font></p>" id="sjs-B10"><p><font style="font: 10pt Times New Roman, Times, Serif">Payment a minimum of 9.39 soybean bags per hectare or 17% of total production.</font></p> | ||
Payment Term | 10 years | ||
Area of lease land | 23,500 | ||
Subsequent Events [Member] | Jatoba Farm [Member] | Agreement [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Description of down payment | 300,000 soybean bags, in the amount of R$21,000.</font></p>" id="sjs-C15"><p><font style="font: 10pt Times New Roman, Times, Serif">300,000 soybean bags, in the amount of R$21,000.</font></p> | ||
Revenue from sale of land | R$ | R$ 156810 | ||
Payment Term | 7 years |