Cover
Cover | 12 Months Ended |
Jun. 30, 2023 | |
Cover [Abstract] | |
Entity Registrant Name | Lavoro Limited |
Amendment Description | EXPLANATORY NOTEThis Post-Effective Amendment No. 1 to the Registration Statement on Form F-l (File No. 333-270791), as amended (the “Registration Statement”), of Lavoro Limited (the “Company”), as originally declared effective by the Securities and Exchange Commission (the “SEC”) on May 25, 2023, is being filed pursuant to the undertakings in Item 9 of the Registration Statement to update the information in the Registration Statement to reflect the Company’s results for the fiscal year ended June 30, 2023.The information included in this filing amends the Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement. |
Entity Central Index Key | 0001945711 |
Amendment Flag | true |
Document Type | POS AM |
Consolidated statement of finan
Consolidated statement of financial position - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets | ||
Cash equivalents | R$ 564294 | R$ 254413 |
Trade receivables | 2,667,057 | 1,794,602 |
Inventories | 1,868,204 | 1,749,041 |
Taxes recoverable | 57,001 | 93,725 |
Advances to suppliers | 192,119 | 383,257 |
Other assets | 32,701 | 60,165 |
Total current assets | 5,536,646 | 4,375,680 |
Non-current assets | ||
Restricted cash | 139,202 | 1,344 |
Trade receivables | 41,483 | 39,751 |
Other assets | 8,390 | 2,473 |
Judicial deposits | 8,820 | 3,887 |
Right-of-use assets | 173,679 | 140,179 |
Taxes recoverable | 282,903 | 50,937 |
Deferred tax assets | 329,082 | 200,986 |
Property, plant and equipment | 196,588 | 146,205 |
Intangible assets | 807,192 | 724,321 |
Total non-current assets | 1,987,339 | 1,310,083 |
Total assets | 7,523,984 | 5,685,763 |
Current liabilities | ||
Current trade payables | 2,575,701 | 2,301,700 |
Trade payables – Supplier finance | 26,157 | 0 |
Lease liabilities | 85,865 | 69,226 |
Borrowings | 922,636 | 681,217 |
Obligations to FIAGRO quota holders | 150,018 | 0 |
Payables for the acquisition of subsidiaries | 221,509 | 111,684 |
Salaries and social charges | 223,376 | 187,285 |
Taxes payable | 37,105 | 34,216 |
Dividends payable | 1,619 | 411 |
Warrant liabilities | 36,446 | 0 |
Advances from customers | 488,578 | 320,560 |
Other liabilities | 34,388 | 95,893 |
Total current liabilities | 5,054,473 | 3,836,351 |
Non-current liabilities | ||
Non-current trade payables | 2,547 | 0 |
Lease liabilities | 98,554 | 86,027 |
Borrowings | 42,839 | 29,335 |
Payables for the acquisition of subsidiaries | 53,700 | 52,747 |
Provision for contingencies | 8,845 | 2,966 |
Liability for FPA Shares | 139,133 | 0 |
Other liabilities | 223 | 1,119 |
Taxes payable | 963 | 0 |
Deferred tax liabilities | 12,351 | 7,491 |
Total non-current liabilities | 359,155 | 179,685 |
Equity / Net investment | ||
Net investment from the parent | 1,451,647 | |
Share Capital | 591 | |
Additional Paid-in Capital | 2,134,339 | |
Capital reserve | 14,533 | |
Other comprehensive loss | (28,634) | |
Accumulated losses | (260,710) | |
Equity attributable to shareholders of the Parent Company / Parent Company's Net investment | 1,860,119 | |
Non-controlling interests | 250,238 | 218,080 |
Total equity / net investment | 2,110,357 | |
Total equity / net investment | 1,669,727 | |
Total liabilities and equity / net investment | 7,523,984 | 5,685,763 |
Total liabilities and equity / net investment | 5,685,763 | |
Derivative financial instruments | ||
Current liabilities | ||
Financial liabilities | 44,008 | 7,121 |
Commodity forward contracts | ||
Current liabilities | ||
Financial liabilities | 207,067 | 27,038 |
Derivative financial instruments | ||
Current assets | ||
Financial assets | 40,410 | 7,677 |
Commodity forward contracts | ||
Current assets | ||
Financial assets | R$ 114861 | R$ 32800 |
Consolidated statement of profi
Consolidated statement of profit or loss - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Profit or loss [abstract] | |||
Revenue | R$ 9347413 | R$ 7746534 | R$ 5098545 |
Cost of goods sold | (7,616,606) | (6,421,037) | (4,362,657) |
Gross profit | 1,730,807 | 1,325,497 | 735,888 |
Operating expenses | |||
Sales, general and administrative expenses | (1,228,128) | (1,022,388) | (619,506) |
Other operating (expenses) income, net | (275,810) | 56,759 | 15,618 |
Operating profit | 226,869 | 359,868 | 132,000 |
Finance Income (costs) | |||
Finance income | 371,060 | 426,933 | 227,099 |
Finance costs | (988,867) | (646,377) | (312,892) |
Profit (loss) before income taxes | (390,938) | 140,424 | 46,207 |
Income taxes | |||
Current | 37,499 | (111,409) | (61,676) |
Deferred | 134,757 | 78,747 | 37,000 |
Profit (loss) for the year | (218,682) | 107,762 | 21,531 |
Attributable to: | |||
Net investment of the parent/ Equity holders of the parent | (260,710) | 78,170 | 38,390 |
Non-controlling interests | R$ 42028 | R$ 29592 | R$ 16859 |
Earnings (loss) per share | |||
Basic earnings (loss) per share | R$ 2.29 | R$ 0.69 | R$ 0.34 |
Diluted earnings (loss) per share | R$ 2.29 | R$ 0.69 | R$ 0.34 |
Consolidated statement of compr
Consolidated statement of comprehensive income or loss - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of comprehensive income [abstract] | |||
Profit (loss) for the year | R$ 218682 | R$ 107762 | R$ 21531 |
Items that may be reclassified to profit or loss in subsequent years | |||
Exchange differences on translation of foreign operations | (30,600) | (34,263) | (16,436) |
Total comprehensive (loss) income for the year | (249,282) | 73,499 | 5,095 |
Attributable to: | |||
Net investment of the parent/ equity holders of the parent | (289,344) | 45,630 | 22,346 |
Non-controlling interests | R$ 40062 | R$ 27869 | R$ 17251 |
Consolidated statement of chang
Consolidated statement of changes in equity - BRL (R$) R$ in Thousands | Total | Net investment of the Parent | Share Capital | Additional Paid-in Capital | Share-Based Compensation reserve | Acumulated gain/losses | Foreign currency translation reserve | Non-controlling interest | Total Equity/ Net Investment |
Beginning Balance at Jun. 30, 2020 | R$ 787707 | R$ 68922 | R$ 856629 | ||||||
Capital contributions | 554,735 | 100,350 | 655,085 | ||||||
Acquisition of non-controlling interests | (22,071) | (57,422) | (79,493) | ||||||
Acquisition of subsidiaries | 2,789 | 28,065 | 30,854 | ||||||
Profit (loss) for the year | R$ 21531 | 38,390 | (16,859) | 21,531 | |||||
Exchange differences on translation of foreign operations | (16,436) | (16,436) | (16,436) | ||||||
Ending Balance at Jun. 30, 2021 | 1,345,114 | ||||||||
Ending Balance at Jun. 30, 2021 | 1,345,114 | 123,056 | 1,468,170 | ||||||
Capital contributions | 190,003 | 12,422 | 202,425 | ||||||
Dividends paid | (131,979) | (1,090) | (133,069) | ||||||
Acquisition of non-controlling interests | (3,257) | (31,094) | (34,351) | ||||||
Acquisition of subsidiaries | 6,136 | 86,917 | 93,053 | ||||||
Profit (loss) for the year | 107,762 | 78,170 | 29,592 | 107,762 | |||||
Exchange differences on translation of foreign operations | (34,263) | (32,540) | (1,723) | (34,263) | |||||
Ending Balance at Jun. 30, 2022 | 1,669,727 | 1,451,647 | 218,080 | 1,669,727 | |||||
Ending Balance at Jun. 30, 2022 | R$ 0 | ||||||||
Capital contributions | 60,880 | 60,880 | |||||||
Dividends paid | (3,485) | (3,485) | |||||||
Acquisition of non-controlling interests | (64,711) | (36,176) | (100,887) | ||||||
Non-controlling dilution on capital contributions | (7,475) | 7,475 | 0 | ||||||
Acquisition of subsidiaries | 8,809 | 14,389 | 23,198 | ||||||
Share-based payments | 12,112 | 12,112 | |||||||
Profit (loss) for the year | 209,310 | 54,579 | 263,889 | ||||||
Exchange differences on translation of foreign operations | (27,481) | (1,007) | (28,488) | ||||||
Ending Balance at Feb. 27, 2023 | 1,643,091 | 253,855 | 1,896,946 | ||||||
Beginning Balance at Jun. 30, 2022 | 1,669,727 | 1,451,647 | 218,080 | 1,669,727 | |||||
Beginning Balance at Jun. 30, 2022 | 0 | ||||||||
Profit (loss) for the year | (218,682) | ||||||||
Exchange differences on translation of foreign operations | (30,600) | ||||||||
Ending Balance at Jun. 30, 2023 | 0 | ||||||||
Ending Balance at Jun. 30, 2023 | 2,110,357 | 1,860,119 | R$ 591 | R$ 2134339 | 14,533 | R$ 260710 | R$ 28634 | 250,238 | 2,110,357 |
Beginning Balance at Feb. 27, 2023 | 1,643,091 | 253,855 | 1,896,946 | ||||||
Changes in parent company's net investment | (1,643,091) | 514 | 1,464,083 | 12,112 | 209,310 | (42,928) | 0 | ||
SPAC merger transaction | 670,333 | 77 | 670,256 | 670,333 | |||||
Acquisition of subsidiaries | 8,169 | 8,169 | |||||||
Share-based payments | 2,421 | 2,421 | 2,421 | ||||||
Profit (loss) for the year | (470,020) | (470,020) | (12,550) | (482,570) | |||||
Exchange differences on translation of foreign operations | 14,294 | 14,294 | 763 | 15,057 | |||||
Ending Balance at Jun. 30, 2023 | 0 | ||||||||
Ending Balance at Jun. 30, 2023 | R$ 2110357 | R$ 1860119 | R$ 591 | R$ 2134339 | R$ 14533 | R$ 260710 | R$ 28634 | R$ 250238 | R$ 2110357 |
Consolidated statement of cash
Consolidated statement of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | |||
Profit (loss) before income taxes | R$ 390938 | R$ 140424 | R$ 46207 |
Adjustments to reconcile profit (loss) for the year to net cash flow: | |||
Allowance for expected credit losses | 36,769 | 27,393 | 11,094 |
Listing expense | 319,554 | 0 | 0 |
Foreign exchange diferences | (10,955) | 1,957 | (12,759) |
Accrued interest expenses | 844,885 | 594,076 | 295,169 |
Interest arising from revenue contracts | (250,337) | (407,449) | (204,744) |
Interest from tax benefit | (27,153) | 0 | 0 |
Other finance loss, net | 24,122 | 22,440 | 12,042 |
Amortization of intangibles | 67,927 | 57,607 | 29,717 |
Amortization of right-of-use assets | 56,236 | 51,203 | 17,997 |
Depreciation | 16,408 | 9,697 | 5,717 |
Losses and damages of inventories | 19,127 | 23,339 | 9,808 |
Gain on bargain purchase | 0 | (18,295) | 0 |
Provisions for contingencies | 5,879 | (11,998) | (3,564) |
Share-based payment expense | 14,533 | 0 | 0 |
Others | (2,681) | (26,495) | (7,484) |
Assets | |||
Trade receivables | (608,550) | 19,563 | 262,671 |
Inventories | 49,745 | (721,602) | 5,745 |
Advances to suppliers | 191,138 | 74,542 | (201,351) |
Derivative financial instruments | (32,732) | (7,677) | 0 |
Taxes recoverable | (66,345) | (41,685) | (23,374) |
Other receivables | 77,567 | (6,765) | 4,493 |
Liabilities | |||
Trade payables | (117,567) | 273,611 | (316,575) |
Advances from customers | 106,903 | (207,440) | 187,035 |
Derivative financial instruments | 116,262 | (24,328) | (14,250) |
Salaries and social charges | 36,091 | 91,540 | 46,363 |
Taxes payable | (3,360) | (39,463) | 25,518 |
Other payables | (66,051) | (2,237) | 25,051 |
Interest paid on acquisition of subsidiary | (4,875) | (14,907) | (2,797) |
Interest received from revenue contracts | 206,430 | 310,967 | 179,796 |
Income taxes paid | (76,775) | (76,546) | (85,682) |
Net cash flows from (used in) operating activities | 108,068 | (259,471) | 51,027 |
Investing activities: | |||
Acquisition of subsidiary, net of cash acquired | (157,442) | (198,305) | (280,374) |
Additions to property, plant and equipment and intangible assets | (65,376) | (47,697) | (34,940) |
Proceeds from the sale of property, plant and equipment | 2,084 | 1,309 | 4,242 |
Net cash flows used in investing activities | (220,734) | (244,693) | (311,072) |
Financing activities: | |||
Proceeds from borrowings | 1,449,445 | 615,984 | 466,280 |
Repayment of borrowings | (1,456,017) | (299,613) | (472,909) |
Payment of principal portion of lease liabilities | (60,570) | (45,814) | (7,957) |
Proceeds from FIAGRO quota holders, net of transaction costs | 150,018 | 0 | 0 |
Trade payables – Supplier finance | 16,569 | 0 | 0 |
Dividend payments | (2,277) | (139,512) | 0 |
Proceeds from SPAC merger, net | 391,572 | 0 | 0 |
Acquisition of non-controlling interests | (100,887) | (34,351) | (79,493) |
Capital contributions | 60,880 | 202,425 | 655,085 |
Net cash flows provided by financing activities | 448,733 | 299,119 | 561,006 |
Net increase (decrease) in cash equivalents | 336,068 | (205,045) | 300,961 |
Net foreign exchange difference | (26,187) | 0 | 0 |
Cash equivalents at beginning of year | 254,413 | 459,458 | 158,497 |
Cash equivalents at end of year | 564,294 | 254,413 | 459,458 |
Derivative financial instruments | |||
Adjustments to reconcile profit (loss) for the year to net cash flow: | |||
Financial instruments | (79,375) | 26,323 | 4,883 |
Fair value on commodity forward contracts | |||
Adjustments to reconcile profit (loss) for the year to net cash flow: | |||
Financial instruments | 98,674 | (9,200) | (6,337) |
Borrowings | |||
Liabilities | |||
Interest arising from revenue contracts | (95,739) | (7,401) | (30,424) |
Trade Payables And Lease Liabilities | |||
Liabilities | |||
Interest arising from revenue contracts | R$ 346749 | R$ 360665 | R$ 208938 |
Background information
Background information | 12 Months Ended |
Jun. 30, 2023 | |
General Information [Abstract] | |
Background information | Background information Lavoro Limited is a Cayman Island exempted company incorporated on August 22, 2022. Lavoro Limited is a public company listed with the US Securities and Exchange Commission (“SEC”) and its shares are traded on Nasdaq Global Select Market under ticker symbol “LVRO”. Lavoro Limited (“Lavoro” and collectively with its subsidiaries, the “Group”) is one of the main agricultural input distribution platforms in Latin America, with relevant agricultural input distribution operations in Brazil and Colombia, and an early stage agricultural input trading company in Uruguay. Also, as a result of a verticalization strategy, the Group produces agricultural biological and special fertilizers products through its own facilities. The Group offers farmers a complete portfolio of products and services with the goal of helping farmer customers succeed by providing multi-channel support. As of June 30, 2023, the Group is controlled by investment funds, managed by general partners which are ultimately controlled by Patria Investments Limited (the “Parent” or “Patria”), a manager of alternative assets with its shares listed on the NASDAQ. (a) The SPAC Transaction On September 14, 2022, Lavoro and TPB Acquisition Corporation I (“TPB Acquisition Corp.”), a special purpose acquisition company sponsored by The Production Board LLC, signed an agreement pursuant to which they entered into a definitive business combination agreement (the “Business Combination Agreement”) that resulted in Lavoro becoming a U.S. publicly listed company on the NASDAQ Global Market. The SPAC Transaction was approved at an extraordinary general meeting of TPB Acquisition Corp’s shareholders on February 22, 2023. On February 28, 2023, as a result of the SPAC Transaction Lavoro and TPB Acquisition Corp consummated a corporate reorganization, as further explained below, pursuant to which (i) Lavoro Agro Limited’s shareholders contributed their shares in Lavoro Agro Limited to Lavoro in exchange of Lavoro’s shares at a pre-determined exchange ratio, becoming Lavoro’s controlling shareholders (ii) TPB Acquisition Corp’s shareholders contributed the net assets of TPB Acquisition Corp, which primarily consisted of cash and marketable securities held in the trust account and certain public and private warrants liabilities in exchange of Lavoro’s shares, becoming Lavoro’s non-controlling shareholders. See Note 22 for further information. (b) Corporate reorganizations The Group’s operations include the operations of the following entities (i) Lavoro Agro Holding S.A. and its subsidiaries (“Lavoro Holding”) which was incorporated in 2017 and is domiciled in the city of São Paulo, Brazil, (ii) Crop Care Holding S.A., and its subsidiaries (“Crop Care”) which was incorporated in 2018 and is domiciled in the city of São Paulo, Brazil and (iii) Lavoro Colombia S.A.S. and its subsidiaries (“Lavoro Colombia”) which was incorporated in 2021 and is domiciled in the city of Bogotá, Colombia. In January 2023, as part of the SPAC Transaction a corporate reorganization was completed whereby Lavoro Brazil, Crop Care and Lavoro Colombia were contributed to, and became subsidiaries of Lavoro Agro Limited, a Cayman Islands exempted company with limited liability which was incorporated on November 21, 2021, to become the holding company of all the operations of the Group. As mentioned above, following the consummation of the SPAC Transaction Lavoro became the parent company of Lavoro Agro Limited and the holding company of all the operations of the Group. (c) The Group’s business The Group initiated its operations in 2017 and has expanded mainly through mergers and acquisitions in the distribution of agricultural inputs such as crop protection products, fertilizers, seeds and specialty inputs (foliar fertilizers, biologicals, adjuvants and organominerals) and its production through its proprietary portfolio of products under the crop care segment. Through Crop Care, the Group operates as an importer of post-patent agricultural inputs and producer of specialties products through its own factories’ manufacturing plants. The inputs produced are delivered through the Group’s own distribution channels and by means of direct sales to customers. The Group operates in Brazil, Colombia and Uruguay in the agricultural input distribution market through its own stores and sells agricultural inputs and products, in particular fertilizers, seeds, and pesticides. The Group’s customers are rural producers that operate in the production of cereals, mainly soybeans and corn, in addition to cotton, citrus and fruit and vegetable crops, among others. Seasonality Agribusiness is subject to seasonality throughout the year, especially due to the crop cycles that depend on specific weather conditions. Operations, especially in Brazil, have unique weather conditions compared to other countries producing agricultural commodities, making it possible to harvest two to three crops in the same area per year. Thus, considering that the activities of the Group’s customers are directly related to crop cycles, which are seasonal in nature, revenues and cash flows from sales may also be substantially seasonal. The sale of our products is dependent upon planting and growing seasons, which vary from year to year, and are expected to result in both highly seasonal patterns and substantial fluctuations in quarterly sales and profitability. Demand for our products is typically strongest between October and December, with a second period of strong demand between January and March. The seasonality of agricultural inputs results in our sales volumes and net sales typically being the highest during the period between September to February and our working capital and total debt requirements typically being the highest just after the end of this period. (d) Other relevant events • Acquisitions The Group concluded several business acquisitions during the year ended June, 30, 2023, for which the total consideration was $302,468 including cash, amounts payable in installments and issuance of shares. These acquisitions are further described in Note 21. Additionally, the Group completed an acquisition subsequent to June 30, 2023, which are described in note 33. • Ongoing armed conflict between Russia and Ukraine As a result of the current geopolitical tensions and conflict between Russia and Ukraine, and the recent recognition by Russia of the independence of the self-proclaimed republics of Donetsk and Luhansk in the Donbas region of Ukraine, the governments of the United States, the European Union, Japan and other jurisdictions have recently announced the imposition of sanctions on certain industry sectors and parties in Russia, Belarus and the regions of Donetsk and Luhansk, as well as enhanced export controls on certain products and industries. These and any additional sanctions and export controls, as well as any counter responses by the governments of Russia or other jurisdictions, could adversely affect, directly or indirectly, the global supply chain, with negative implications on the availability and prices of agricultural commodities and raw materials (including petrol, which would affect the price of agricultural inputs), energy prices, and Group’s customers, as well as the global financial markets and financial services industry and the global supply chain in general. From a supply point of view, Brazil is highly dependent on fertilizer imports, and Russia and Belarus hold a market share in Brazilian soil fertilizer imports of approximately 26% to 30%, respectively (a share which is higher for potash-based products). The Group currently buys all of the Group’s fertilizers from suppliers based in Brazil, but most of the Group’s fertilizer suppliers import or have imported, to some degree, from sources in Russia and Belarus. Fertilizers represented approximately 21% of Group’s net revenues in the year ended June 30, 2023 (and 20% of Group’s net revenues in the year ended June 30, 2022). In addition, fertilizer prices, which had already risen before the conflict, have continued to rise, which has led producers to delay purchase negotiations. Despite such supply risk, the Group does not expect material shortages of fertilizers. The Group does not believe that fertilizer supply challenges will cause any material adverse effects on the Group’s business during the upcoming crop year, given that the Group has already delivered substantially all soy and corn fertilizer for the crop year. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies (a) Basis for preparation of consolidated financial statements -Predecessor method Lavoro became the Group’s legal holding company through the corporate reorganization described in Note 1 (b). Such corporate reorganization was recorded at book value since it is a transaction under common control. Under IFRS there is no specific guidance applicable to business combinations of entities under common control, as IFRS 3, excludes business combinations between such entities from its scope. Due to the lack of specific guidance the Group has established an accounting policy as required by IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors. In doing so, the Group considered guidance of other standards-setting bodies that use a similar conceptual framework to develop accounting standards as well as the accounting practices of entities subject to those standards such as the United States of America and the United Kingdom. As a result, the Group accounted for the corporate reorganizations using the predecessor method of accounting, and the consolidated financial statements are presented “as if” the historical consolidated operations of Lavoro Brazil, Crop Care and Lavoro Colombia were the predecessor of Lavoro. Under the predecessor method, the historical operations of the Group prior to the corporate reorganizations are deemed to be those of Lavoro. Thus, these consolidated financial statements reflect: • the historical operating results and financial position of Lavoro Brazil, Crop Care and Lavoro Colombia on a combined basis prior to the corporate reorganizations • the assets and liabilities of Lavoro Brazil, Crop Care and Lavoro Colombia at their historical cost; and • Lavoro’s earnings per share for all years presented. The number of ordinary shares issued by Lavoro, as a result of the corporate reorganization is reflected retroactively, for the purposes of calculating earnings per share in all prior years presented. The consolidated financial statements as of June 30, 2023 and 2022 and for the year ended June 30, 2023, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The consolidated financial statements have been prepared under the historical cost basis, except for financial assets and financial liabilities (including commodity forward contracts and derivative instruments) at fair value through profit or loss. The consolidated financial statements are presented in Brazilian reais (“BRL” or “R$”), which is the Group’s functional and presentation currency. All amounts are rounded to the nearest thousand (R$000), except when otherwise indicated. On October 31, 2023, the issuance of the consolidated financial statements was approved by the Group’s Board of Directors. (b) Significant accounting judgments, estimates and assumptions Use of critical accounting estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues, income, and expenses. These estimates are based on management’s experience and knowledge, information available at the reporting date and other factors, including expectations of future events that are believed to be reasonable under normal circumstances. Any changes in facts and circumstances may lead to a revision of these estimates. Actual results could differ from these estimates. The estimates and assumptions are revised on an ongoing basis. Revisions to estimates are recognized on a forward-looking basis. The significant estimates and judgments applied by the Group in the preparation of these consolidated financial statements are presented in the following notes: Note Significant estimates and judgments 11 Commodity forward contract 16 Impairment testing of non-financial assets 21 Business combination 22 SPAC Transaction 23 Deferred income taxes recoverability (c) Basis of combination/consolidation procedures Lavoro’s fiscal year end is June 30. The consolidated financial statements are prepared for the same reporting periods, using consistent accounting policies. All unrealized intra-group and intercompany balances, transactions, gains and losses relating to transactions between group companies were eliminated in full. The consolidated financial statements include the following subsidiaries of Lavoro Limited: Equity interest Name Core activities Location 2023 2022 2021 Corporate: Lavoro Agro Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro America Inc. (i) Holding California - USA 100 % Lavoro Merger Sub II Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro Agro Cayman II (i) Holding George Town – Cayman Island 100 % — — Lavoro Latam SL (i) Holding Madrid - Spain 100 % — — Malinas S.A. (i) Holding Montevideu – Uruguay 100 % — — Lavoro Brazil: Lavoro Agro Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Lavoro Agrocomercial S.A. (viii) Distributor of agricultural inputs Rondonópolis – Brazil 97.42 % 97.42 % 91.65 % Agrocontato Comércio e Representações de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Sinop – Brazil 97.42 % 97.42 % 91.65 % PCO Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) (ii) (v) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 86.22 % — Produtiva Agronegócios Comércio e Representação Ltda. (v) Distributor of agricultural inputs Paracatu – Brazil 87.40 % 87.40 % — Facirolli Comércio e Representação S.A. (Agrozap) (v) Distributor of agricultural inputs Uberaba – Brazil 62.61%- 62.61 % — Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Central Agrícola Rural Distribuidora de Defensivos Ltda. (viii) Distributor of agricultural inputs Vilhena – Brazil 97.42 % 97.42 % 91.65 % Distribuidora Pitangueiras de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Ponta Grossa – Brazil 93.11 % 86.22 % 86.22 % Produtec Comércio e Representações S.A. (viii) Distributor of agricultural inputs Cristalina – Brazil 87.4 % 87.40 % 72.42 % Qualiciclo Agrícola S.A. (viii) Distributor of agricultural inputs Limeira – Brazil 66.75 % 61.00 % 61.00 % Desempar Participações Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Denorpi Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Deragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Desempar Tecnologia Ltda. (viii) Holding Palmeira – Brazil 93.11 % 86.20 % 86.20 % Futuragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Plenafértil Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Realce Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Cultivar Agrícola Comércio, Importação e Exportação S.A. (viii) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 63.47 % 63.47 % América Insumos Agrícolas Ltda. (iii) Distributor of agricultural inputs Sorriso – Brazil — 97.42 % 91.65 % Integra Soluções Agrícolas Ltda. (iv) Distributor of agricultural inputs Catalão – Brazil — 87.4 % 72.42 % Nova Geração (v) (viii) Distributor of agricultural inputs Pinhalzinho – Brazil 66.75 % 61.00 % — Floema Soluções Nutricionais de Cultivos Ltda. (v) Distributor of agricultural inputs Uberaba – Brazil 62.61 % — — Casa Trevo Participações S.A. (v) Holding Nova Prata – Brazil 79.14 % — — Casa Trevo Comercial Agrícola LTDA. (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — CATR Comercial Agrícola LTDA (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — Sollo Sul Insumos Agrícolas Ltda (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Dissul Insumos Agrícolas Ltda. (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais (vi) FIAGRO São Paulo – Brazil 5 % — — Lavoro Colômbia: Lavoro Colombia S.A.S. (viii) Holding Bogota – Colombia 94.90 % 94.90 % — Crop Care Colombia (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agricultura y Servicios S.A.S. (viii) Distributor of agricultural inputs Ginebra - Colombia 94.90 % 94.90 % 97.61 % Fertilizantes Liquidos y Servicios S.A.S. (vii) Distributor of agricultural inputs Cali - Colombia — — 97.61 % Grupo Cenagro S.A.S. (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Cenagral S.A.S (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Grupo Gral S.A.S. (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agrointegral Andina S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Servigral Praderas S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Agroquímicos para la Agricultura Colombiana S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Provecampo S.A.S. (v) Distributor of agricultural inputs Envigado – Colombia 94.90 % — — Crop Care: Crop Care Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Perterra Insumos Agropecuários S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Araci Administradora de Bens S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Union Agro S.A. (v) Private label products Pederneiras – Brazil 73 % 73.00 % - Agrobiológica Sustentabilidade S.A. Private label products São Paulo – Brazil 65.13 % 65.13 % 65.13 % Agrobiológica Soluções Naturais Ltda. Private label products Leme – Brazil 65.13 % 65.13 % 65.13 % Cromo Indústria Química LTDA. (v) Private label products Estrela - Brasil 70 % — — Perterra Trading S.A. Private label products Montevideu - Uruguay 100 % 100 % — ___________________ (i) Refers to entities of the reorganization, see note 1.b (ii) Agrovenci Distribuidora de Insumos Agrícolas Ltda. was incorporated in August 2021. (iii) América Insumos Agrícolas Ltda. was merged with another entity within the Group in November 2022. (iv) Integra Soluções Agrícolas Ltda. was merged with another entity within the Group in May 2023. (v) See note 21 of Acquisitions of subsidiaries. (vi) Lavoro Agro Fundo de Investimentos nas Cadeias Produtivas Agroindustriais - Direitos Creditórios was incorporated in July 2022. (see Note 19). (vii) Fertilizantes Liquidos y Servicios S.A.S. was merged with another entity within the Group in May 2022. (viii) Changes in non-controlling interests were described in note 27 of Equity. The significant accounting policies applied in the preparation of the consolidated financial statements have been included in the related explanatory notes and are consistent in all reporting years. (a) New accounting standards, interpretations and amendments adopted starting July 1, 2020: The following new accounting standards, interpretations and amendments were adopted starting July 1, 2020: • Reference to the Conceptual Framework – Amendments to IFRS 3; • Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16; • IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time Adopter; • IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities; • IAS 41 Agriculture – Taxation in fair value measurements; and • Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37. The adoption of these new standards and interpretations did not have a material effect on the consolidated financial statements. (b) New accounting standards, interpretations and amendments issued but not yet effective Some accounting standards and interpretations have been issued, but are not yet effective. The Group has not early adopted any of these standards and does not expect these standards to have a material impact on the financial statements in subsequent periods. New and amended standards and interpretations issued, but not yet effective up to the date of the issuance of the Group’s consolidated financial statements are as follows: • Amendments to IAS 1: Classification of Liabilities as Current or Non-current; • Definition of Accounting Estimates - Amendments to IAS 8; • Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12: requires the recognition of deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. It will apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities. The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. The Group intends to adopt these new standards, amendments and interpretations, if applicable, when they become effective; and the Group does not expect them to have a material impact on the financial statements, except for the Amendment to IAS 12, which the Group is currently evaluating. (c) Foreign currency (i) Functional currency and presentation The consolidated financial statements are presented in Brazilian reais (“R$”), which is the Group’s functional currency. The Group determines the functional currency of each of the consolidated entities. Items included in the financial statements of each entity are measured using that functional currency. The functional currency for the majority of the Group’s entities is the Brazilian real. (Brazil Cluster and Crop Care Cluster – see Note 4), except for the companies in Colombia, whose functional currency is the Colombian peso (COP$). For consolidation, the operations in Colombia are translated into Brazilian reais, as follows: (i) Assets and liabilities are translated into Reais at the closing exchange as of the reporting date; (ii) Profit or loss items are translated at the average monthly exchange rate; and (iii) Exchange differences arising on translation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising from the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange as of the reporting date. (ii) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange as of the reporting date. Differences arising on settlement or translation of monetary items are recognized in the statement of profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income or profit or loss, respectively). (d) Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. The Group classifies all other liabilities as non-current Deferred tax assets and liabilities are classified as non-current assets and liabilities. (e) Statement of cash flows In 2023, cash outflows related to acquisitions of non-controlling interests are classified under net cash flows provided by financing activities and interest paid on acquisitions of subsidiary is classified under net cash flows from (used in) operating activities. In 2022 and 2021, both amounts were classified under net cash flows used in investing activities. While the effect of the change in classification of those cash flows from investing to financing and operating activities is not material, management has retrospectively revised those periods for comparison purposes. The retrospective changes in the comparative periods can be summarized as follows: 2022 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (213,212) 14,907 (198,305) Acquisition of non-controlling interests (34,351) 34,351 — Net cash flows used in investing activities (293,951) 49,258 (244,693) Acquisition of non-controlling interests — (34,351) (34,351) Net cash flows provided by financing activities 333,470 (34,351) 299,119 Interest paid on acquisition of subsidiary — (14,907) (14,907) Net cash flows from operating activities (244,564) (14,907) (259,471) 2021 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (283,171) 2,797 (280,374) Acquisition of non-controlling interests (79,493) 79,493 — Net cash flows used in investing activities (393,362) 82,290 (311,072) Acquisition of non-controlling interests — (79,493) (79,493) Net cash flows provided by financing activities 640,499 (79,493) 561,006 Interest paid on acquisition of subsidiary — (2,797) (2,797) Net cash flows from (used) in operating activities 53,824 (2,797) 51,027 |
Summary of significant accounting policies | Significant accounting policies (a) Basis for preparation of consolidated financial statements -Predecessor method Lavoro became the Group’s legal holding company through the corporate reorganization described in Note 1 (b). Such corporate reorganization was recorded at book value since it is a transaction under common control. Under IFRS there is no specific guidance applicable to business combinations of entities under common control, as IFRS 3, excludes business combinations between such entities from its scope. Due to the lack of specific guidance the Group has established an accounting policy as required by IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors. In doing so, the Group considered guidance of other standards-setting bodies that use a similar conceptual framework to develop accounting standards as well as the accounting practices of entities subject to those standards such as the United States of America and the United Kingdom. As a result, the Group accounted for the corporate reorganizations using the predecessor method of accounting, and the consolidated financial statements are presented “as if” the historical consolidated operations of Lavoro Brazil, Crop Care and Lavoro Colombia were the predecessor of Lavoro. Under the predecessor method, the historical operations of the Group prior to the corporate reorganizations are deemed to be those of Lavoro. Thus, these consolidated financial statements reflect: • the historical operating results and financial position of Lavoro Brazil, Crop Care and Lavoro Colombia on a combined basis prior to the corporate reorganizations • the assets and liabilities of Lavoro Brazil, Crop Care and Lavoro Colombia at their historical cost; and • Lavoro’s earnings per share for all years presented. The number of ordinary shares issued by Lavoro, as a result of the corporate reorganization is reflected retroactively, for the purposes of calculating earnings per share in all prior years presented. The consolidated financial statements as of June 30, 2023 and 2022 and for the year ended June 30, 2023, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The consolidated financial statements have been prepared under the historical cost basis, except for financial assets and financial liabilities (including commodity forward contracts and derivative instruments) at fair value through profit or loss. The consolidated financial statements are presented in Brazilian reais (“BRL” or “R$”), which is the Group’s functional and presentation currency. All amounts are rounded to the nearest thousand (R$000), except when otherwise indicated. On October 31, 2023, the issuance of the consolidated financial statements was approved by the Group’s Board of Directors. (b) Significant accounting judgments, estimates and assumptions Use of critical accounting estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues, income, and expenses. These estimates are based on management’s experience and knowledge, information available at the reporting date and other factors, including expectations of future events that are believed to be reasonable under normal circumstances. Any changes in facts and circumstances may lead to a revision of these estimates. Actual results could differ from these estimates. The estimates and assumptions are revised on an ongoing basis. Revisions to estimates are recognized on a forward-looking basis. The significant estimates and judgments applied by the Group in the preparation of these consolidated financial statements are presented in the following notes: Note Significant estimates and judgments 11 Commodity forward contract 16 Impairment testing of non-financial assets 21 Business combination 22 SPAC Transaction 23 Deferred income taxes recoverability (c) Basis of combination/consolidation procedures Lavoro’s fiscal year end is June 30. The consolidated financial statements are prepared for the same reporting periods, using consistent accounting policies. All unrealized intra-group and intercompany balances, transactions, gains and losses relating to transactions between group companies were eliminated in full. The consolidated financial statements include the following subsidiaries of Lavoro Limited: Equity interest Name Core activities Location 2023 2022 2021 Corporate: Lavoro Agro Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro America Inc. (i) Holding California - USA 100 % Lavoro Merger Sub II Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro Agro Cayman II (i) Holding George Town – Cayman Island 100 % — — Lavoro Latam SL (i) Holding Madrid - Spain 100 % — — Malinas S.A. (i) Holding Montevideu – Uruguay 100 % — — Lavoro Brazil: Lavoro Agro Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Lavoro Agrocomercial S.A. (viii) Distributor of agricultural inputs Rondonópolis – Brazil 97.42 % 97.42 % 91.65 % Agrocontato Comércio e Representações de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Sinop – Brazil 97.42 % 97.42 % 91.65 % PCO Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) (ii) (v) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 86.22 % — Produtiva Agronegócios Comércio e Representação Ltda. (v) Distributor of agricultural inputs Paracatu – Brazil 87.40 % 87.40 % — Facirolli Comércio e Representação S.A. (Agrozap) (v) Distributor of agricultural inputs Uberaba – Brazil 62.61%- 62.61 % — Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Central Agrícola Rural Distribuidora de Defensivos Ltda. (viii) Distributor of agricultural inputs Vilhena – Brazil 97.42 % 97.42 % 91.65 % Distribuidora Pitangueiras de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Ponta Grossa – Brazil 93.11 % 86.22 % 86.22 % Produtec Comércio e Representações S.A. (viii) Distributor of agricultural inputs Cristalina – Brazil 87.4 % 87.40 % 72.42 % Qualiciclo Agrícola S.A. (viii) Distributor of agricultural inputs Limeira – Brazil 66.75 % 61.00 % 61.00 % Desempar Participações Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Denorpi Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Deragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Desempar Tecnologia Ltda. (viii) Holding Palmeira – Brazil 93.11 % 86.20 % 86.20 % Futuragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Plenafértil Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Realce Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Cultivar Agrícola Comércio, Importação e Exportação S.A. (viii) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 63.47 % 63.47 % América Insumos Agrícolas Ltda. (iii) Distributor of agricultural inputs Sorriso – Brazil — 97.42 % 91.65 % Integra Soluções Agrícolas Ltda. (iv) Distributor of agricultural inputs Catalão – Brazil — 87.4 % 72.42 % Nova Geração (v) (viii) Distributor of agricultural inputs Pinhalzinho – Brazil 66.75 % 61.00 % — Floema Soluções Nutricionais de Cultivos Ltda. (v) Distributor of agricultural inputs Uberaba – Brazil 62.61 % — — Casa Trevo Participações S.A. (v) Holding Nova Prata – Brazil 79.14 % — — Casa Trevo Comercial Agrícola LTDA. (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — CATR Comercial Agrícola LTDA (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — Sollo Sul Insumos Agrícolas Ltda (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Dissul Insumos Agrícolas Ltda. (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais (vi) FIAGRO São Paulo – Brazil 5 % — — Lavoro Colômbia: Lavoro Colombia S.A.S. (viii) Holding Bogota – Colombia 94.90 % 94.90 % — Crop Care Colombia (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agricultura y Servicios S.A.S. (viii) Distributor of agricultural inputs Ginebra - Colombia 94.90 % 94.90 % 97.61 % Fertilizantes Liquidos y Servicios S.A.S. (vii) Distributor of agricultural inputs Cali - Colombia — — 97.61 % Grupo Cenagro S.A.S. (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Cenagral S.A.S (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Grupo Gral S.A.S. (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agrointegral Andina S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Servigral Praderas S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Agroquímicos para la Agricultura Colombiana S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Provecampo S.A.S. (v) Distributor of agricultural inputs Envigado – Colombia 94.90 % — — Crop Care: Crop Care Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Perterra Insumos Agropecuários S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Araci Administradora de Bens S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Union Agro S.A. (v) Private label products Pederneiras – Brazil 73 % 73.00 % - Agrobiológica Sustentabilidade S.A. Private label products São Paulo – Brazil 65.13 % 65.13 % 65.13 % Agrobiológica Soluções Naturais Ltda. Private label products Leme – Brazil 65.13 % 65.13 % 65.13 % Cromo Indústria Química LTDA. (v) Private label products Estrela - Brasil 70 % — — Perterra Trading S.A. Private label products Montevideu - Uruguay 100 % 100 % — ___________________ (i) Refers to entities of the reorganization, see note 1.b (ii) Agrovenci Distribuidora de Insumos Agrícolas Ltda. was incorporated in August 2021. (iii) América Insumos Agrícolas Ltda. was merged with another entity within the Group in November 2022. (iv) Integra Soluções Agrícolas Ltda. was merged with another entity within the Group in May 2023. (v) See note 21 of Acquisitions of subsidiaries. (vi) Lavoro Agro Fundo de Investimentos nas Cadeias Produtivas Agroindustriais - Direitos Creditórios was incorporated in July 2022. (see Note 19). (vii) Fertilizantes Liquidos y Servicios S.A.S. was merged with another entity within the Group in May 2022. (viii) Changes in non-controlling interests were described in note 27 of Equity. The significant accounting policies applied in the preparation of the consolidated financial statements have been included in the related explanatory notes and are consistent in all reporting years. (a) New accounting standards, interpretations and amendments adopted starting July 1, 2020: The following new accounting standards, interpretations and amendments were adopted starting July 1, 2020: • Reference to the Conceptual Framework – Amendments to IFRS 3; • Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16; • IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time Adopter; • IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities; • IAS 41 Agriculture – Taxation in fair value measurements; and • Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37. The adoption of these new standards and interpretations did not have a material effect on the consolidated financial statements. (b) New accounting standards, interpretations and amendments issued but not yet effective Some accounting standards and interpretations have been issued, but are not yet effective. The Group has not early adopted any of these standards and does not expect these standards to have a material impact on the financial statements in subsequent periods. New and amended standards and interpretations issued, but not yet effective up to the date of the issuance of the Group’s consolidated financial statements are as follows: • Amendments to IAS 1: Classification of Liabilities as Current or Non-current; • Definition of Accounting Estimates - Amendments to IAS 8; • Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12: requires the recognition of deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. It will apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities. The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. The Group intends to adopt these new standards, amendments and interpretations, if applicable, when they become effective; and the Group does not expect them to have a material impact on the financial statements, except for the Amendment to IAS 12, which the Group is currently evaluating. (c) Foreign currency (i) Functional currency and presentation The consolidated financial statements are presented in Brazilian reais (“R$”), which is the Group’s functional currency. The Group determines the functional currency of each of the consolidated entities. Items included in the financial statements of each entity are measured using that functional currency. The functional currency for the majority of the Group’s entities is the Brazilian real. (Brazil Cluster and Crop Care Cluster – see Note 4), except for the companies in Colombia, whose functional currency is the Colombian peso (COP$). For consolidation, the operations in Colombia are translated into Brazilian reais, as follows: (i) Assets and liabilities are translated into Reais at the closing exchange as of the reporting date; (ii) Profit or loss items are translated at the average monthly exchange rate; and (iii) Exchange differences arising on translation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising from the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange as of the reporting date. (ii) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange as of the reporting date. Differences arising on settlement or translation of monetary items are recognized in the statement of profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income or profit or loss, respectively). (d) Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. The Group classifies all other liabilities as non-current Deferred tax assets and liabilities are classified as non-current assets and liabilities. (e) Statement of cash flows In 2023, cash outflows related to acquisitions of non-controlling interests are classified under net cash flows provided by financing activities and interest paid on acquisitions of subsidiary is classified under net cash flows from (used in) operating activities. In 2022 and 2021, both amounts were classified under net cash flows used in investing activities. While the effect of the change in classification of those cash flows from investing to financing and operating activities is not material, management has retrospectively revised those periods for comparison purposes. The retrospective changes in the comparative periods can be summarized as follows: 2022 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (213,212) 14,907 (198,305) Acquisition of non-controlling interests (34,351) 34,351 — Net cash flows used in investing activities (293,951) 49,258 (244,693) Acquisition of non-controlling interests — (34,351) (34,351) Net cash flows provided by financing activities 333,470 (34,351) 299,119 Interest paid on acquisition of subsidiary — (14,907) (14,907) Net cash flows from operating activities (244,564) (14,907) (259,471) 2021 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (283,171) 2,797 (280,374) Acquisition of non-controlling interests (79,493) 79,493 — Net cash flows used in investing activities (393,362) 82,290 (311,072) Acquisition of non-controlling interests — (79,493) (79,493) Net cash flows provided by financing activities 640,499 (79,493) 561,006 Interest paid on acquisition of subsidiary — (2,797) (2,797) Net cash flows from (used) in operating activities 53,824 (2,797) 51,027 |
Description of accounting policy for trade and other receivables [text block] | Trade receivables correspond to amounts receivable from customers for the sale of goods or services in the ordinary course of the Group’s business.A receivable is recognized if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due). |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | Significant accounting policies (a) Basis for preparation of consolidated financial statements -Predecessor method Lavoro became the Group’s legal holding company through the corporate reorganization described in Note 1 (b). Such corporate reorganization was recorded at book value since it is a transaction under common control. Under IFRS there is no specific guidance applicable to business combinations of entities under common control, as IFRS 3, excludes business combinations between such entities from its scope. Due to the lack of specific guidance the Group has established an accounting policy as required by IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors. In doing so, the Group considered guidance of other standards-setting bodies that use a similar conceptual framework to develop accounting standards as well as the accounting practices of entities subject to those standards such as the United States of America and the United Kingdom. As a result, the Group accounted for the corporate reorganizations using the predecessor method of accounting, and the consolidated financial statements are presented “as if” the historical consolidated operations of Lavoro Brazil, Crop Care and Lavoro Colombia were the predecessor of Lavoro. Under the predecessor method, the historical operations of the Group prior to the corporate reorganizations are deemed to be those of Lavoro. Thus, these consolidated financial statements reflect: • the historical operating results and financial position of Lavoro Brazil, Crop Care and Lavoro Colombia on a combined basis prior to the corporate reorganizations • the assets and liabilities of Lavoro Brazil, Crop Care and Lavoro Colombia at their historical cost; and • Lavoro’s earnings per share for all years presented. The number of ordinary shares issued by Lavoro, as a result of the corporate reorganization is reflected retroactively, for the purposes of calculating earnings per share in all prior years presented. The consolidated financial statements as of June 30, 2023 and 2022 and for the year ended June 30, 2023, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The consolidated financial statements have been prepared under the historical cost basis, except for financial assets and financial liabilities (including commodity forward contracts and derivative instruments) at fair value through profit or loss. The consolidated financial statements are presented in Brazilian reais (“BRL” or “R$”), which is the Group’s functional and presentation currency. All amounts are rounded to the nearest thousand (R$000), except when otherwise indicated. On October 31, 2023, the issuance of the consolidated financial statements was approved by the Group’s Board of Directors. (b) Significant accounting judgments, estimates and assumptions Use of critical accounting estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues, income, and expenses. These estimates are based on management’s experience and knowledge, information available at the reporting date and other factors, including expectations of future events that are believed to be reasonable under normal circumstances. Any changes in facts and circumstances may lead to a revision of these estimates. Actual results could differ from these estimates. The estimates and assumptions are revised on an ongoing basis. Revisions to estimates are recognized on a forward-looking basis. The significant estimates and judgments applied by the Group in the preparation of these consolidated financial statements are presented in the following notes: Note Significant estimates and judgments 11 Commodity forward contract 16 Impairment testing of non-financial assets 21 Business combination 22 SPAC Transaction 23 Deferred income taxes recoverability (c) Basis of combination/consolidation procedures Lavoro’s fiscal year end is June 30. The consolidated financial statements are prepared for the same reporting periods, using consistent accounting policies. All unrealized intra-group and intercompany balances, transactions, gains and losses relating to transactions between group companies were eliminated in full. The consolidated financial statements include the following subsidiaries of Lavoro Limited: Equity interest Name Core activities Location 2023 2022 2021 Corporate: Lavoro Agro Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro America Inc. (i) Holding California - USA 100 % Lavoro Merger Sub II Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro Agro Cayman II (i) Holding George Town – Cayman Island 100 % — — Lavoro Latam SL (i) Holding Madrid - Spain 100 % — — Malinas S.A. (i) Holding Montevideu – Uruguay 100 % — — Lavoro Brazil: Lavoro Agro Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Lavoro Agrocomercial S.A. (viii) Distributor of agricultural inputs Rondonópolis – Brazil 97.42 % 97.42 % 91.65 % Agrocontato Comércio e Representações de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Sinop – Brazil 97.42 % 97.42 % 91.65 % PCO Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) (ii) (v) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 86.22 % — Produtiva Agronegócios Comércio e Representação Ltda. (v) Distributor of agricultural inputs Paracatu – Brazil 87.40 % 87.40 % — Facirolli Comércio e Representação S.A. (Agrozap) (v) Distributor of agricultural inputs Uberaba – Brazil 62.61%- 62.61 % — Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Central Agrícola Rural Distribuidora de Defensivos Ltda. (viii) Distributor of agricultural inputs Vilhena – Brazil 97.42 % 97.42 % 91.65 % Distribuidora Pitangueiras de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Ponta Grossa – Brazil 93.11 % 86.22 % 86.22 % Produtec Comércio e Representações S.A. (viii) Distributor of agricultural inputs Cristalina – Brazil 87.4 % 87.40 % 72.42 % Qualiciclo Agrícola S.A. (viii) Distributor of agricultural inputs Limeira – Brazil 66.75 % 61.00 % 61.00 % Desempar Participações Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Denorpi Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Deragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Desempar Tecnologia Ltda. (viii) Holding Palmeira – Brazil 93.11 % 86.20 % 86.20 % Futuragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Plenafértil Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Realce Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Cultivar Agrícola Comércio, Importação e Exportação S.A. (viii) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 63.47 % 63.47 % América Insumos Agrícolas Ltda. (iii) Distributor of agricultural inputs Sorriso – Brazil — 97.42 % 91.65 % Integra Soluções Agrícolas Ltda. (iv) Distributor of agricultural inputs Catalão – Brazil — 87.4 % 72.42 % Nova Geração (v) (viii) Distributor of agricultural inputs Pinhalzinho – Brazil 66.75 % 61.00 % — Floema Soluções Nutricionais de Cultivos Ltda. (v) Distributor of agricultural inputs Uberaba – Brazil 62.61 % — — Casa Trevo Participações S.A. (v) Holding Nova Prata – Brazil 79.14 % — — Casa Trevo Comercial Agrícola LTDA. (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — CATR Comercial Agrícola LTDA (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — Sollo Sul Insumos Agrícolas Ltda (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Dissul Insumos Agrícolas Ltda. (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais (vi) FIAGRO São Paulo – Brazil 5 % — — Lavoro Colômbia: Lavoro Colombia S.A.S. (viii) Holding Bogota – Colombia 94.90 % 94.90 % — Crop Care Colombia (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agricultura y Servicios S.A.S. (viii) Distributor of agricultural inputs Ginebra - Colombia 94.90 % 94.90 % 97.61 % Fertilizantes Liquidos y Servicios S.A.S. (vii) Distributor of agricultural inputs Cali - Colombia — — 97.61 % Grupo Cenagro S.A.S. (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Cenagral S.A.S (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Grupo Gral S.A.S. (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agrointegral Andina S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Servigral Praderas S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Agroquímicos para la Agricultura Colombiana S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Provecampo S.A.S. (v) Distributor of agricultural inputs Envigado – Colombia 94.90 % — — Crop Care: Crop Care Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Perterra Insumos Agropecuários S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Araci Administradora de Bens S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Union Agro S.A. (v) Private label products Pederneiras – Brazil 73 % 73.00 % - Agrobiológica Sustentabilidade S.A. Private label products São Paulo – Brazil 65.13 % 65.13 % 65.13 % Agrobiológica Soluções Naturais Ltda. Private label products Leme – Brazil 65.13 % 65.13 % 65.13 % Cromo Indústria Química LTDA. (v) Private label products Estrela - Brasil 70 % — — Perterra Trading S.A. Private label products Montevideu - Uruguay 100 % 100 % — ___________________ (i) Refers to entities of the reorganization, see note 1.b (ii) Agrovenci Distribuidora de Insumos Agrícolas Ltda. was incorporated in August 2021. (iii) América Insumos Agrícolas Ltda. was merged with another entity within the Group in November 2022. (iv) Integra Soluções Agrícolas Ltda. was merged with another entity within the Group in May 2023. (v) See note 21 of Acquisitions of subsidiaries. (vi) Lavoro Agro Fundo de Investimentos nas Cadeias Produtivas Agroindustriais - Direitos Creditórios was incorporated in July 2022. (see Note 19). (vii) Fertilizantes Liquidos y Servicios S.A.S. was merged with another entity within the Group in May 2022. (viii) Changes in non-controlling interests were described in note 27 of Equity. The significant accounting policies applied in the preparation of the consolidated financial statements have been included in the related explanatory notes and are consistent in all reporting years. (a) New accounting standards, interpretations and amendments adopted starting July 1, 2020: The following new accounting standards, interpretations and amendments were adopted starting July 1, 2020: • Reference to the Conceptual Framework – Amendments to IFRS 3; • Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16; • IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time Adopter; • IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities; • IAS 41 Agriculture – Taxation in fair value measurements; and • Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37. The adoption of these new standards and interpretations did not have a material effect on the consolidated financial statements. (b) New accounting standards, interpretations and amendments issued but not yet effective Some accounting standards and interpretations have been issued, but are not yet effective. The Group has not early adopted any of these standards and does not expect these standards to have a material impact on the financial statements in subsequent periods. New and amended standards and interpretations issued, but not yet effective up to the date of the issuance of the Group’s consolidated financial statements are as follows: • Amendments to IAS 1: Classification of Liabilities as Current or Non-current; • Definition of Accounting Estimates - Amendments to IAS 8; • Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12: requires the recognition of deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. It will apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities. The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. The Group intends to adopt these new standards, amendments and interpretations, if applicable, when they become effective; and the Group does not expect them to have a material impact on the financial statements, except for the Amendment to IAS 12, which the Group is currently evaluating. (c) Foreign currency (i) Functional currency and presentation The consolidated financial statements are presented in Brazilian reais (“R$”), which is the Group’s functional currency. The Group determines the functional currency of each of the consolidated entities. Items included in the financial statements of each entity are measured using that functional currency. The functional currency for the majority of the Group’s entities is the Brazilian real. (Brazil Cluster and Crop Care Cluster – see Note 4), except for the companies in Colombia, whose functional currency is the Colombian peso (COP$). For consolidation, the operations in Colombia are translated into Brazilian reais, as follows: (i) Assets and liabilities are translated into Reais at the closing exchange as of the reporting date; (ii) Profit or loss items are translated at the average monthly exchange rate; and (iii) Exchange differences arising on translation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising from the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange as of the reporting date. (ii) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange as of the reporting date. Differences arising on settlement or translation of monetary items are recognized in the statement of profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income or profit or loss, respectively). (d) Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. The Group classifies all other liabilities as non-current Deferred tax assets and liabilities are classified as non-current assets and liabilities. (e) Statement of cash flows In 2023, cash outflows related to acquisitions of non-controlling interests are classified under net cash flows provided by financing activities and interest paid on acquisitions of subsidiary is classified under net cash flows from (used in) operating activities. In 2022 and 2021, both amounts were classified under net cash flows used in investing activities. While the effect of the change in classification of those cash flows from investing to financing and operating activities is not material, management has retrospectively revised those periods for comparison purposes. The retrospective changes in the comparative periods can be summarized as follows: 2022 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (213,212) 14,907 (198,305) Acquisition of non-controlling interests (34,351) 34,351 — Net cash flows used in investing activities (293,951) 49,258 (244,693) Acquisition of non-controlling interests — (34,351) (34,351) Net cash flows provided by financing activities 333,470 (34,351) 299,119 Interest paid on acquisition of subsidiary — (14,907) (14,907) Net cash flows from operating activities (244,564) (14,907) (259,471) 2021 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (283,171) 2,797 (280,374) Acquisition of non-controlling interests (79,493) 79,493 — Net cash flows used in investing activities (393,362) 82,290 (311,072) Acquisition of non-controlling interests — (79,493) (79,493) Net cash flows provided by financing activities 640,499 (79,493) 561,006 Interest paid on acquisition of subsidiary — (2,797) (2,797) Net cash flows from (used) in operating activities 53,824 (2,797) 51,027 |
Segment information
Segment information | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of operating segments [abstract] | |
Segment information | Segment information (a) Reportable segments by management The chief operating decision-maker of the Group (the “CODM”) is the board of directors which is responsible for allocating resources among operating segments and assessing their performance and for making strategic decisions. The determination of the reportable segments is based on internal reports reviewed by the CODM, which include considerations in relation to risks and returns, organizational structure, etc. Certain expenses across segments are allocated based on reasonable allocation criteria, such as revenues or historical trends. The Group’s reportable segments are the following: • Brazil Cluster: includes companies located in Brazil that sell agricultural inputs; • LATAM Cluster: includes companies located in Colombia that sell agricultural inputs; • Crop Care Cluster: includes companies that produce and import their own portfolio of proprietary products including off-patent crop protection and specialty products (e.g, biologicals and special fertilizers). The CODM used information on a pro forma basis giving effect of the acquisitions completed during the year to assess the segment performance. Starting March 31, 2023, the CODM used historical segment financial information. Segment information for prior years has been recast for comparative purposes. Segment assets and liabilities as of June 30, 2023: Description Brazil LATAM Crop Care Total reportable segments Corporate (i) Eliminations between Consolidated Certain assets Cash equivalents 207,744 22,003 95,585 325,332 238,962 — 564,294 Trade receivables 2,194,853 343,745 242,391 2,780,989 — (72,449) 2,708,540 Inventories 1,547,384 202,239 151,289 1,900,912 — (32,708) 1,868,204 Advances to suppliers 176,831 2,266 13,088 192,185 — (66) 192,119 Total assets 5,926,380 683,894 680,294 7,290,568 449,779 (216,363) 7,523,984 Certain liabilities Trade payables 2,304,043 309,828 46,506 2,660,377 455 (56,427) 2,604,405 Borrowings 824,869 71,562 69,045 965,475 — — 965,475 Advances from customers 478,313 7,020 3,245 488,578 — — 488,578 Total liabilities and equity 5,926,380 683,894 680,294 7,290,568 449,779 (216,361) 7,523,984 __________________ (i) Corporate items refer to balances and expenses with certain corporate demands not directly related to any operating segment. (ii) Transactions between the Crop Care segment and the Brazil segment. Statement of profit or loss data for the year ended June 30, 2023: Description Brazil LATAM Crop Care Total reportable segments Corporate (i) Eliminations between Consolidated Revenue 7,829,305 1,206,341 632,819 9,668,465 — (321,052) 9,347,413 Cost of goods sold (6,543,315) (1,009,721) (351,914) (7,904,950) — 288,344 (7,616,606) Sales, general and administrative expenses (iii) (951,888) (120,936) (151,741) (1,224,565) (3,563) — (1,228,128) Other operating income, net 48,135 (1,640) 1,511 48,006 (323,816) — (275,810) Financial (costs) income (525,056) (15,371) (48,415) (588,842) (28,965) — (617,807) Income taxes 208,331 (22,263) (24,932) 161,136 — 11,120 172,256 Profit (loss) for the year 65,512 36,410 57,328 159,250 (356,344) (21,588) (218,682) Depreciation and amortization (142,139) (11,792) (13,555) (167,486) — — (167,486) __________________ (i) Corporate items refer to balances and expenses with certain corporate demands not directly related to any operating segment. (ii) Sales between the Crop Care segment and the Brazil segment. (iii) Sales, general and administrative expenses include depreciation and amortization Segment assets and liabilities as of June 30, 2022: Description Brazil LATAM Crop Care Total reportable segments Eliminations between Combined Certain assets Cash equivalents 195,343 16,951 42,119 254,413 — 254,413 Trade receivables 1,379,808 324,152 170,868 1,874,828 (40,475) 1,834,353 Inventories 1,451,541 174,532 122,968 1,749,041 — 1,749,041 Advances to suppliers 354,163 1,202 30,799 386,164 (2,907) 383,257 Total assets 4,602,679 619,238 508,331 5,730,248 (44,485) 5,685,763 Certain liabilities Trade payables 1,988,518 311,612 42,035 2,342,165 (40,465) 2,301,700 Borrowings 588,403 39,755 82,394 710,552 — 710,552 Advances from customers 318,404 164 3,502 322,070 (1,510) 320,560 Total liabilities and equity 4,602,679 619,238 508,331 5,730,248 (44,485) 5,685,763 __________________ (i) Transactions between the Crop Care segment and the Brazil segment. Statement of profit or loss data for the year ended June 30, 2022: Description Brazil LATAM Crop Care Total reportable segments Eliminations between Combined Revenue 6,351,223 1,166,415 332,239 7,849,877 (103,343) 7,746,534 Cost of goods sold (5,336,991) (975,756) (211,633) (6,524,380) 103,343 (6,421,037) Sales, general and administrative expenses (ii) (809,144) (120,902) (92,342) (1,022,388) (1,022,388) Other operating income, net 42,608 (6,081) 20,232 56,759 56,759 Financial (costs) income (217,277) (9,639) 7,472 (219,444) (219,444) Income taxes 3,973 (20,865) (15,770) (32,662) (32,662) Profit for the year 34,392 33,172 40,198 107,762 107,762 Depreciation and amortization (127,674) (11,295) (6,543) (145,512) (145,512) __________________ (i) Sales between the Crop Care segment and the Brazil segment. (ii) Sales, general and administrative expenses include depreciation and amortization Statement of profit or loss data for year ended June 30, 2021: Description Brazil LATAM Crop Care Total reportable segments Eliminations between Combined Revenue 4,198,570 858,837 46,850 5,104,257 (5,712) 5,098,545 Cost of goods sold (3,653,813) (704,738) (9,818) (4,368,369) 5,712 (4,362,657) Sales, general and administrative expenses (ii) (476,578) (101,081) (41,847) (619,506) — (619,506) Other operating income, net 13,363 184 2,071 15,618 — 15,618 Financial (costs) income (68,772) (13,524) (3,497) (85,793) — (85,793) Income taxes (8,412) (15,538) (726) (24,676) — (24,676) Profit for the year 4,358 24,140 (6,967) 21,531 — 21,531 Depreciation and amortization (85,518) (4,519) (2,930) (92,966) — (92,966) _____________ (i) Sales between the Crop Care segment and the Brazil segment. (ii) Sales, general and administrative expenses include depreciation and amortization Revenues from external customers for each product and service are disclosed in Note 28. Further breakdown in relation to products and services provided by the Group is not available and such information cannot be produced without unreasonable effort. |
Cash equivalents
Cash equivalents | 12 Months Ended |
Jun. 30, 2023 | |
Cash equivalents [abstract] | |
Cash equivalents | Cash equivalents Accounting policy Cash equivalents are comprised of short-term highly liquid investments with a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. Annual yield 2023 2022 Cash equivalents (R$) 77% CDI (i) 304,292 237,462 Cash equivalents (COP) 13.25% DTF(ii) 22,003 16,951 Cash equivalents (US$) 3.65% a year (iii) 237,999 — Total cash equivalents 564,294 254,413 __________________ (i) Represents the Brazilian interbank deposit rate, which is an average of the overnight interbank rates in Brazil (the "CDI"). (i) Colombian investment rate, which is an average of interbank and corporate finance ("DTF"). (ii) Average annualized yield obtained in the last year from overseas bank accounts. |
Trade receivables
Trade receivables | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade receivables | Trade receivables Accounting policy Trade receivables correspond to amounts receivable from customers for the sale of goods or services in the ordinary course of the Group’s business. A receivable is recognized if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in Note 7. 2023 2022 Trade receivables (Brazil) 2,525,845 1,639,637 Trade receivables (Colombia) 370,767 345,830 (-) Allowance for expected credit losses (188,072) (151,114) Total 2,708,540 1,834,353 Current 2,667,057 1,794,602 Non-current 41,483 39,751 The average effective interest rate used to discount trade receivables for the year ended June 30, 2023 was 0.96% per month (1.00% as of June 30, 2022). The Group does not have any customer that represents more than 10% of its trade receivables or revenues. As of June 30, 2023, the Group also transferred trade receivables to the FIAGRO in the amount of $167,278. There were no trade receivables transferred as of June 30, 2022. As the Group has retained the risks and rewards of ownership, these amounts were not derecognized from trade receivables. Consequently, the liability resulting from these operations is recorded as obligations to FIAGRO quota holders (note 19). Allowance for expected credit losses 2023 2022 2021 Opening balance (151,114) (111,969) (89,173) Increase in allowance (36,769) (27,393) (11,094) Allowance for credit losses from acquisitions (11,702) (16,274) (12,623) Trade receivables write-off 9,500 3,492 3,058 Exchange rate translation adjustment 2,013 1,030 (2,137) Ending balance (i) (188,072) (151,114) (111,969) __________________ (i) The credit risk of the Group is described in note 8.b. The aging analysis of trade receivables is as follow: 2023 2022 Not past due 2,089,543 1,534,224 Overdue 1 to 60 days 169,556 93,436 61 to 180 days 359,958 240,320 181 to 365 days 90,734 7,157 Over 365 days 186,821 110,398 Allowance for expected credit losses (188,072) (151,182) 2,708,540 1,834,353 |
Financial instruments
Financial instruments | 12 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of financial instruments | Financial instruments Accounting policy Initial recognition and measurement (i) Financial assets Financial assets are classified, at initial recognition, and subsequently measured at amortized cost or fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortized cost, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows. Subsequent measurement For purposes of subsequent measurement, Group’s financial assets are classified in following categories: • Financial assets at amortized cost • Financial assets at fair value through profit or loss Financial assets at amortized cost Financial assets at amortized cost are subsequently measured using the effective interest method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. Derecognition A financial asset is primarily derecognized when the rights to receive cash flows from the asset have expired. Impairment The Group recognizes an allowance for expected credit losses for trade receivables, which is the only debt instrument not held at fair value through profit or loss. (ii) Financial liabilities: The Group classifies its financial liabilities in the following categories: (i) measured at amortized cost and (ii) fair value through profit or loss. Financial liabilities classified as fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as fair value through profit or loss. Financial liabilities are derecognized when contractual obligations are withdrawn, canceled, or expired. The difference between the extinguished book value and the consideration paid (including transferred assets or assumed liabilities) is recognized in the statement of income. The Group’s financial instruments were classified according to the following categories: 2023 Amortized cost Fair value through profit or loss Assets: Trade receivables 2,708,540 — Commodity forward contracts — 114,861 Derivative financial instruments — 40,410 Restricted cash 139,202 — Total 2,847,742 155,271 Liabilities: Trade payables 2,578,248 — Lease liabilities 184,419 — Borrowings 965,475 — Obligations to FIAGRO quota holders 150,018 — Payables for the acquisition of subsidiaries 275,209 — Derivative financial instruments — 44,008 Salaries and social charges 223,376 Commodity forward contracts — 207,067 Dividends payable 1,619 — Warrant liabilities — 36,446 Liability for FPA Shares 139,133 — Total 4,517,497 287,521 2022 Amortized cost Fair value through profit or loss Assets: Trade receivables 1,834,353 — Commodity forward contracts — 32,800 Derivative financial instruments — 7,677 Restricted cash 1,344 — Total 1,835,697 40,477 Liabilities: Trade payables 2,301,700 — Lease liabilities 155,253 — Borrowings 710,552 — Payables for the acquisition of subsidiaries 164,431 — Derivative financial instruments — 7,121 Salaries and social charges 187,285 - Commodity forward contracts — 27,038 Dividends payable 411 — Total 3,519,632 34,159 The Group considers that assets and liabilities measured at amortized cost, have a carrying value approximate to their fair value and, therefore, information on their fair values is not presented. (a) Hierarchy of fair value The Group uses various methods to measure and determine fair value (including market approaches and income or cost approaches) and to estimate the value that market participants would use to price the asset or liability. Financial assets and liabilities carried at fair value are classified and disclosed within the following fair value hierarchy levels: Level 1 - Quoted prices (unadjusted) in active, liquid and visible markets, for identical assets and liabilities that are readily available at the measurement date; Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. All financial instruments accounted for at fair value are classified as level 2, except for the Warrant liability which is classified as level 1. On June 30, 2023 and June 30, 2022, there were no changes in the fair value methodology of the financial instruments and, therefore, there were no transfers between levels. |
Financial and capital risk mana
Financial and capital risk management | 12 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Financial and capital risk management | Financial and capital risk management (a) Considerations on risk factors that may affect the business of the Group The Group is exposed to several market risk factors that might impact its business. The Group’s board of directors is responsible for monitoring these risk factors, as well as establishing policies and procedures to address them. The Group’s risk management structure considers the size and complexity of its activities, which allows for a better understanding of how such risks could impact Group’s strategy through committees and other internal meetings. Currently, the Group is focused on action plans relating to risks that could have a significant impact on its strategic goals, including those required by applicable regulations. To efficiently manage and mitigate these risks, its risk management structure conducts risk identification and assessments to prioritize the risks that are key to pursuing potential opportunities that may prevent value from being created or that may compromise existing value, with the possibility of impacting its results, capital, liquidity, customer relationships and/or reputation. The Group’s risk management strategies were developed to mitigate and/or reduce the financial market risks which it is exposed to, which are as follows: • credit risk • liquidity risk • capital risk • interest rate risk • exchange rate risk • commodity price risk in barter transactions (b) Credit risk Credit risk is the risk of financial losses if a customer or a counterparty to a financial instrument fails to fulfill its contractual obligations, which arise mainly from the Group’s trade receivables. The Group maintains short-term investments and derivatives with financial institutions approved by its management according to objective criteria for diversification of such risk. The Group seeks to mitigate its credit risk related to trade receivables by setting forth credit limits for each counterparty based on the analysis of its credit management process. Such credit exposure determination is performed considering the qualitative and quantitative information of each counterparty. The Group also focuses on the diversification of its portfolio and monitors different solvency and liquidity indicators of its counterparties. In addition, primarily for receivables in installments, the Group monitors the balance of allowances for expected credit losses. (see Note 6) The main strategies on credit risks management are listed below: • creating credit approval policies and procedures for new and existing customers. • extending credit to qualified customers through a review of credit agency reports, financial statements and/or credit references, when available. • reviewing existing customer accounts every twelve months based on the credit limit amounts. • evaluating customer and regional risks. • obtaining guarantees through the endorsement of rural producer notes (“CPR”), which give physical ownership of the relevant agricultural goods in the event of the customer’s default. • establishing credit approval for suppliers in case of payments in advance. • setting up provisions using the lifetime expected credit loss method considering all possible default events over the expected life of a financial instrument. Receivables are categorized based on the number of overdue days and/or a customer’s credit risk profile. Estimated losses on receivables are based on known troubled accounts and historical losses. Receivables are considered to be in default and are written off against the allowance for credit losses when it is probable that all remaining contractual payments due will not be collected in accordance with the terms of the agreement. • requiring minimum acceptable counterparty credit ratings from financial counterparties. • setting limits for counterparties or credit exposure; and • developing relationships with investment-grade counterparties. The current credit policy sets forth credit limits for customers based on credit score analysis made by the Group’s credit management area. Such score is determined considering the qualitative and quantitative information related to each customer, resulting in a rating classification and a level of requirement of guarantees as follows: % Of guarantees required on sales Credit rating % Customers Risk classification Medium-sized farmers (i) Other AA & A 18 % Very small 80-90% 0 % B 49 % Medium 100 % 30 % C & D 15 % High 100 % 60 % Simplified 18 % Small farmers N/A N/A __________________ (i) Medium-sized farmers ranging between 100 and 10,000 hectares in planted acreage that are typically not serviced directly by agricultural input producers. For Colombia there is a similar credit scoring process, however, guarantees are not required based on credit ratings but instead based on qualitative factors such as relationships and past experiences with customers. Maximum exposure to credit risk as of June 30, 2023 and June 30, 2022: 2023 2022 Trade receivables (current and non-current) 2,708,539 1,834,353 Advances to suppliers 192,119 383,257 2,900,658 2,217,610 (c) Liquidity risk The Group defines liquidity risk as the risk of financial losses if it is unable to comply with its payment obligations in connection with financial liabilities settled in cash or other financial assets in a timely manner as they become due. The Group’s approach to managing this risk is to ensure that it has sufficient cash available to settle its obligations without incurring losses or affecting the operations. Management is ultimately responsible for managing liquidity risk, which relies on a liquidity risk management model to manage funding requirements and liquidity in the short, medium and long term. The Group’s cash position is monitored by its senior management, through management reports and periodic performance meetings. The Group also manages its liquidity risk by maintaining reserves, bank credit facilities and other borrowing facilities deemed appropriate, through ongoing monitoring of forecast and actual cash flows, as well as through the combination of maturity profiles of financial assets and liabilities. The following maturity analysis of the Group’s financial liabilities and gross settled derivative financial instruments contracts (for which the cash flows are settled simultaneously) is based on the expected undiscounted contractual cash flows from the year end date to the contractual maturity date: 2023 Up to 1 year From 1 to 5 years Total Trade payables 2,765,354 2,547 2,767,901 Lease liabilities 91,419 111,304 202,723 Borrowings 982,318 48,382 1,030,700 Obligations to FIAGRO quota holders 159,722 — 159,722 Payables for the acquisition of subsidiaries 224,689 55,242 279,931 Commodity forward contracts 210,040 — 210,040 Derivative financial instruments 44,639 — 44,639 Salaries and social charges 226,583 — 226,583 Dividends payable 1,642 — 1,642 Warrant liabilities 36,446 — 36,446 Liability for FPA Shares — 139,133 139,133 4,742,852 356,608 5,099,460 2022 Up to 1 year From 1 to 5 years Total Trade payables 2,377,256 — 2,377,256 Lease liabilities 72,228 93,487 165,715 Borrowings 709,266 31,751 741,017 Payables for the acquisition of subsidiaries 114,540 55,444 169,984 Commodity forward contracts 27,729 — 27,729 Derivative financial instruments 7,303 — 7,303 Salaries and social charges 188,083 — 188,083 Dividends payable 422 — 422 3,496,827 180,682 3,677,509 (d) Capital risk The Group manages its capital risk through its leverage policy to ensure its ability to continue as a going concern and to maximize the return of its stakeholders by optimizing its balances of debt and equity. The Group's strategy is to maintain the net debt up to 2.2 times the adjusted EBITDA which was achieved by the Group as of June 30, 2023 and 2022. (e) Interest rate risk Fluctuations in interest rates, such as the Brazilian interbank deposit rate, which is an average of interbank overnight rates in Brazil, and Colombian investment rate, which is an average of interbank and financial corporation loans, may have an effect on the cost of the Group’s borrowings and new borrowings. The Group periodically monitors the effects of market changes in interest rates on its financial instruments portfolio. Funds raised by the Group are used to finance working capital for each crop season and are typically raised at short term conditions. As of June 30, 2023 and June 30, 2022, the Group had no derivative financial instruments used to mitigate interest rate risks. (i) Sensitivity analysis – exposure to interest rates To mitigate its exposure to interest rate risk, the Group uses different scenarios to evaluate the sensitivity of variations transactions impacted by the CDI Rate and IBR Rate. The Scenario 1 represents the impact on booked amounts considering the most current (September 2023) CDI Rate and IBR Rate and reflects management’s best estimates. The Scenario 2 and Scenario 3 consider an appreciation of 25% and 50% in such market interest rates, before taxes, which represents a significant change in the probable scenario for sensitivity purposes. The following table sets forth the potential impacts on the statements of profit or loss: 2023 Expense on profit or loss Current Index Scenario 1 Scenario 2 Scenario 3 Floating rate borrowings in Brazil CDI Rate (12.65%) 149,124 177,153 205,183 Floating rate borrowings in Colombia IBR Rate (12.75%) 11,503 13,685 15,866 160,627 190,838 221,049 (f) Exchange rate risk The Group is exposed to foreign exchange risk arising from its operations related to agricultural inputs, mainly related to the U.S. dollar, which significantly impacts global prices of agricultural inputs in general. Although all purchases and sales are conducted locally, certain purchase and sales contracts are indexed to the U.S. dollar. The Group’s current commercial department seeks to reduce this exposure. Its marketing department is responsible for managing pricing tables and commercial strategies to seek a natural hedge between purchases and sales and to match currency and terms to the greatest extent possible. The Group’s corporate treasury department is responsible for monitoring the forecasted cash flow exposure to the U.S. dollar, and whenever any mismatches as to terms and currencies are identified, non-deliverable forwards derivative financial instruments are purchased to offset these exposures, and therefore fulfill internal policy requirements. U.S. dollar exposure is managed by macro hedging through the analysis of the forecasted cash flow for the next two harvests. The Group may not have any leveraged derivative position. The Group’s exchange rate exposure monitoring committee meets periodically across the commercial, treasury and corporate business departments. There are also committees on purchase valuation and business intelligence for the main goods traded by the Group. The Group does not adopt hedge accounting. Therefore, gains and losses from derivative operations are fully recognized in the statements of profit or loss, as disclosed in Note 30. (i) Sensitivity analysis – exposure to exchange rates To gauge its exposure to exchange rate risk, the Group uses different scenarios to evaluate its asset and liability positions in foreign currency and their potential effects on its results. The Scenario 1 below represents the impact on carrying amounts of the most current (September 2023) market rates for the U.S. dollar ($5.73 to US$1.00). This analysis assumes that all other variables, particularly interest rates, remain constant. The Scenario 2 and Scenario 3 consider the appreciation of the Brazilian real against the US dollar at the rates of 25% and 50%, before taxes, which represents a significant change in the probable scenario for sensitivity purposes. The following table set forth the potential impacts on the statements of profit or loss: 2023 Effect on profit or loss and Current Index Scenario 1 Scenario 2 Scenario 3 Trade receivables in U.S. Dollars 4.7362 (3,692) 48,980 101,652 Trade payables in U.S. Dollars 4.7362 5,747 (76,243) (158,233) Borrowings in U.S. Dollars 4.7362 (2,752) 36,501 75,753 Net impacts on commercial operations (697) 9,238 19,172 Derivative financial instruments 4.7362 646 (8,557) (17,760) Total impact, net of derivatives (51) 681 1,412 (g) Commodity prices risk in barter transactions In all barter transactions mentioned in Note 11, the Group uses future commodity market price as the reference to value the quantities of commodities included in the forward contracts to be delivered by the customers as payment for the Group’s products into currency. The Group uses prices quoted by commodity trading companies to value the grain purchase contracts from farmers. Lavoro enters into grain sale contracts with trading companies or forward derivatives with financial institutions to sell those same grains, at the same price of the purchased contracts with farmers. As such, the Group strategy to manage its exposure to those commodity prices by entering into the purchase and sale contracts at similar conditions. These transactions are conducted by a corporate department which manages and controls such contracts as well as the compliance of Group’s policies. (i) Sensitivity analysis – exposure to commodity price To gauge its exposure to commodity price risk, the Group uses different scenarios to evaluate its asset and liability positions on commodity forward contracts in soybean and corn and their potential effects on its results. The “current risk” scenario below represents the impact on carrying amounts as of June 30, 2023, with assumptions described in Note 11. The other scenarios consider the appreciation of main assumptions at the rates of 25% and 50%, before taxes, which represents a significant change in the probable scenario for sensitivity purposes. As of June 30, 2023: Tons Position Current Risk (i) Average of contract prices Current Market +25% current +50% current Position Market Impact Market Impact Corn 2023 248,796 Purchased (140,542) 67.42 35.34 44.18 (35,136) 53.01 (70,271) Corn 2023 (248,999) Sold 54,190 48.39 34.96 43.70 13,548 52.44 27,095 Soybean 2024 449,847 Purchased (634) 127.86 127.95 159.94 (159) 191.93 (317) Soybean 2024 (145,915) Sold 4,449 143.80 145.71 182.14 1,112 218.57 2,225 Corn 2024 54,433 Purchased (9,499) 55.35 43.11 53.89 (2,375) 64.67 (4,750) Corn 2024 (6,500) Sold (170) 47.44 49.28 61.60 (43) 73.92 (85) Net exposure on grain contracts 351,662 Net purchased (92,206) (23,053) (46,103) Soybean 2024 (319,271) Sold on derivatives (2,761) 13.25 16.56 (690) 19.86 (1,377) Corn 2024 (55,645) Sold on derivatives 11,598 60.24 75.30 2,900 90.36 5,799 Net exposure on derivatives (374,917) Net sold 8,837 2,210 4,422 Net exposure (23,255) (83,369) (20,843) (41,681) __________________ (i) The mismatch on current fair value of Commodity forward contracts for Corn 2023 is related to derivatives contracts that were settled in advance for cash management purposes, resulting in an income of R$80,990 recognized as finance income. (h) Derivative financial investments The Group is exposed to market risks mainly related to fluctuations in exchange rates and commodity prices. The Group maintains operations with financial instruments of protection to mitigate exposure to these risks. The Group has been implementing and improving the internal controls to identify and measure the effects of transactions with trading companies and with financial institutions, so that such transactions are captured, recognized and disclosed in the consolidated financial statements. The Group does not carry out investments of a nature speculative in derivatives or any other risk assets. Trading derivatives are classified as current assets or liabilities. June 30, 2023 June 30, 2022 Options (put/call of commodities) (513) (5,662) Forwards (R$/US$) (i) 8,837 (224) Swap (R$/US$) (11,922) 6,442 Derivative financial instruments, net (3,598) 556 __________________ (i) See note 8 (g) that describe the exposure to commodity prices and volume. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2023 | |
Inventories [Abstract] | |
Inventories | Inventories Accounting policy Inventories are valued at the lower of cost and net realizable value. The costs of individual items of inventory are determined using weighted average costs less any losses, when applicable. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion (when applicable) and the estimated costs necessary to make the sale. An inventory loss is recognized for inventories that are close to their expiration date and there is no expectation that they will be sold. 2023 2022 Goods for resale 1,885,941 1,759,227 (-) Allowance for inventory losses (17,737) (10,186) Total 1,868,204 1,749,041 |
Taxes recoverable
Taxes recoverable | 12 Months Ended |
Jun. 30, 2023 | |
Tax Assets [Abstract] | |
Taxes recoverable | Taxes recoverable 2023 2022 State VAT (“ICMS”) (i) 78,805 63,671 Brazilian federal contributions (ii) 239,815 59,975 Colombian federal contributions 21,284 21,016 Total 339,904 144,662 Current 57,001 93,725 Non-current 282,903 50,937 __________________ (i) Refers to the Brazilian value-added tax on sales and services. The Group’s ICMS relates mainly to the purchase of inputs and the Group has the benefit of a reduced ICMS tax rate. (ii) Includes: a) credits arising from the Brazilian government’s taxes charged for the social integration program (PIS) and the social security program (COFINS), and Brazilian corporate income tax and social contributions. These credits, which are recognized as current assets, will be used by the Group to offset other Federal taxes; b) withholding and overpaid taxes which can be used to settle overdue or future payable federal taxes; c) withholding income tax on cash equivalents which can be used to offset taxes owed at the end of the calendar year, in case of taxable profit, or are carried forward in case of tax loss; and Income tax Benefits arising from ICMS deduction During 2022/2023 the Group obtained the benefit of deducting the ICMS benefit explained in item (i) in the income tax calculation. This was applied for the current year tax calculation and for the prior years and generated an income tax credit recorded in the year ended June 30, 2023 in the amount of R$244,717, recorded under “Brazilian federal contributions”. In accordance with Article 30 of Law No. 12,973/2014, the amount of ICMS benefits must be allocated to the fiscal incentive reserve category when there is sufficient profit in each subsidiary. Additionally, under the same law, these tax benefits must be included in the calculation base for Corporate Income Tax (IRPJ) and Social Contribution on Net Profits (CSLL) when dividends are distributed or capital is refunded to the shareholders of the subsidiaries. As of June 30, 2023, the amount of fiscal incentive reserve in the subsidiaries is R$358,834 and the balance of the fiscal benefit not yet allocated due to insufficient profits for this allocation stands at R$680,396. The Group has no intention to make our subsidiaries to distribute the incentive amounts to the parent. In the event of dividend distribution taxation will apply, as per the provisions of tax laws. |
Commodity forward contracts _ B
Commodity forward contracts – Barter transactions | 12 Months Ended |
Jun. 30, 2023 | |
Commodity Forward Contracts [Abstract] | |
Commodity forward contracts – Barter transactions | Commodity forward contracts – Barter transactions For certain contracts with customers, the Group carries out term sales of agricultural inputs (e.g., fertilizers, crop chemicals, seeds) in exchange for future delivery of grains, mainly soybeans and corn, at the time of their harvest (“Barter transactions"). A contract (grain purchase agreement) is signed between the Group and the customer, pursuant to which Lavoro and the customer agree on an amount of commodity, to be delivered at harvesting, which is equivalent to the total sales price based on the future commodity price on the date in which the contract with the customer is entered into. The customers’ main obligation under this contract is to deliver the agreed upon volume of commodities as payment at a future date. Contemporaneously, the Group enters into a future grain sale agreement with a commodity trading company, pursuant to which the Group is committed to deliver the commodity to be received by the customer under the inputs sales transaction. The Group strategy is to sign this agreement for the same quantity and the same terms of the contract between the Group and its customer. While this physical sale of the grains is not concluded with trading companies, the Group may enter into a derivative contract on commodity and futures exchanges such as CBOT, ICE, or B3, in an equivalent term associated with the physical grain purchases. This aims to mitigate exposure to price fluctuations. Consequently, the Group maintains these derivative contracts to naturally hedge against market volatility. As soon as the physical sale of the grains is concluded, the derivative contracts are promptly liquidated to realize the hedging gains or losses. In the event the customer fails to deliver the committed commodity amount upon harvesting, for example due to a significant increase in the commodity price the Group is required to: • purchase the commodity in the spot market and deliver it to the commodity trading company; or • pay compensation to the commodity trading company in an amount equal to the difference between the commodity price between the time of delivery and the time of closing of the agreement (“washout risk”). The Group is entitled to charge its customers for any losses arising from the settlement of its obligations above with the commodity trading companies. Even though these agreements are settled physically (grains purchase and sale), under IFRS 9, the Group designates, at initial recognition, such forward contracts as measured at fair value through profit and losses (FVTPL). The fair value of the commodity forward contracts, entered into with the customer and the commodity trading company is estimated based on information available in the market and specific valuation methodologies, and discounted to present value, considering the contractual terms and the current market prices for such commodities. Such contracts are disclosed on a gross basis in the statement of financial position. Critical accounting estimates and judgments Fair value of commodity forward contracts is estimated on a regional basis, and they are based on the commodity prices available at exchange future markets, over the counter premium data quoted by market players and the expected freight costs estimated by the Group considering historical inland freight data. As of June 30, fair value of commodity forward contracts is as follows: 2023 2022 Fair value of commodity forward contracts: Assets Purchase contracts 53,695 16,054 Sale contracts 61,166 16,746 114,861 32,800 Liabilities Purchase contracts (206,881) (14,995) Sale contracts (186) (12,043) (207,067) (27,038) The changes in fair value recognized in the statements of profit or loss are in note 30. The main assumptions used in the fair value calculation are as follows: Outstanding Average of contract prices Average Market Prices Soybean market premium Freight Purchase Contracts Soybean As of June 30, 2022 81,379 147.65 14.52 0.4 358.55 As of June 30, 2023 449,847 127.95 13.16 (0.3) 293.65 Corn As of June 30, 2022 181,475 67.47 86.95 N/A 381.00 As of June 30, 2023 303,432 65.25 56.04 N/A 282.23 Selling Contracts Soybean As of June 30, 2022 70,191 147.46 14.56 0.5 367.46 As of June 30, 2023 145,915 145.71 13.16 0.0 0.0 Corn As of June 30, 2022 114,063 67.45 87.06 N/A 451.83 As of June 30, 2023 255,499 48.36 56.04 N/A 284.59 __________________ (i) Market price published by Chicago Board of Trade which is a futures and options exchange in United States. |
Advances to suppliers
Advances to suppliers | 12 Months Ended |
Jun. 30, 2023 | |
Advances To Suppliers [Abstract] | |
Advances to suppliers | Advances to suppliers Advances to suppliers arise from the “Cash purchases” modality, in which the Group advances payments to suppliers of agricultural inputs at the beginning of a harvest and before the actual physical delivery of the products. These advances are short-term and are part of the strategy of formation of margins and guarantee of quality and product supply. |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Leases [Abstract] | |
Right-of-use assets and lease liabilities | Right-of-use assets and lease liabilities Accounting policy The Group leases commercial buildings for its administrative functions, retail stores, equipment, and vehicles. In general, lease agreements have a term of three years to eight years, but they may include extension options. Lease terms are individually negotiated and contain differentiated terms and conditions. The lease contracts do not contain restrictive clauses, but the leased assets cannot be used as collateral for loans. Right of use assets: The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of ease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: Vehicles 3.4 years Buildings 4.9 years Machines and equipment 3 years Lease liabilities: At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include: • fixed payments (including fixed payments in essence, less any incentives from • amounts expected to be paid by the lessee in accordance with residual value guarantees; • payments of fines for lease termination if the lease term reflects the lessee exercising the option to terminate the lease. Lease payments are discounted using the lessee's incremental borrowing rate, which is the rate a lessee would have to pay on a loan to obtain the funds necessary to acquire an asset of similar value in a similar economic environment with equivalent terms and conditions. In determining the incremental borrowing rate, the Group: • whenever possible, uses as a starting point rates from recent financing contracts third-party financing, adjusted to reflect changes in financing conditions since such third-party financing was received; • uses a progressive approach that starts from a risk-free interest rate adjusted for credit risk • uses a progressive approach that takes a risk-free interest rate adjusted for credit risk for leases held by the Group with no recent third-party financing; and • makes specific adjustments to the rate, such as to term, country, currency and collateral. Lease payments are allocated between principal and finance expense. Finance expense is recognized in the statement of profit or loss over the lease term to produce a constant periodic rate of interest on the remaining balance of the liability for each year. Payments associated with short-term leases of equipment and vehicles and all and leases of low-value assets are recognized as incurred as an expense in income statement. Short-term leases are those with a term of 12 months or less. Low-value assets include IT equipment, small items of office furniture and other contracts of small value. As of June 30, 2023 and 2022, the Group had no lease agreements with variable lease payments. (a) Right-of-use assets Vehicles Buildings Machinery and equipment Total Cost 74,604 124,594 46,110 245,308 Accumulated depreciation (28,756) (60,564) (15,809) (105,129) Balance at June 30, 2022 45,848 64,030 30,301 140,179 Cost 120,052 141,915 73,236 335,203 Accumulated depreciation (54,560) (77,732) (29,232) (161,524) Balance at June 30, 2023 65,492 64,183 44,004 173,679 5% of the accumulated cost of right-of-use assets as of June 30, 2023 come from business acquisitions occurred during the year ended June 30, 2023. Right-of-use assets amortization expense for the year ended June 30, 2023 was R$56,236 (R$50,171 for the year ended June 30, 2022) (b) Lease liabilities 2023 2022 Vehicles 68,420 49,588 Buildings 85,839 80,768 Machinery and equipment 30,160 24,897 Total 184,419 155,253 Current 85,865 69,226 Non-current 98,554 86,027 Total interest on lease liabilities incurred for the year ended June 30, 2023 was R$16,977 (R$13,217 for the year ended June 30, 2022). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment Accounting policy Items of property, plant and equipment are measured at historical cost of acquisition or construction, less accumulated depreciation. When significant parts of an item of property, plant and equipment have different useful lives, they are recorded as separate items (major components) of property, plant and equipment. Any gains and losses on the disposal of an item of property, plant and equipment are recognized in the statement of profit or loss. Subsequent costs are capitalized only when it is probable that future economic benefits associated with the expenditure will be earned by the Group. Depreciation is calculated and its residual values estimated, using the straight-line method based on the estimated useful lives of the items. Depreciation is recognized in the statement of profit or loss. Land is not depreciated. The estimated useful lives of property, plant and equipment are as follows: Vehicles 5 years Building and Improvements 25 years Machines, equipment and facilities 10 years Furnitures and fixtures 10 years Computer equipments 5 years The Group uses an estimated useful life of the assets to depreciate property, plant and equipment. At the end of each fiscal year, this estimate is reviewed and, if necessary, adjusted prospectively. An asset's carrying amount is written down immediately to its recoverable amount when the asset's carrying amount is higher than its estimated recoverable value. Gains and losses on disposals are determined by comparing the proceeds from the sale with the carrying amount and are recognized under "Other (expenses) income, net" in the statement of profit or loss. Vehicles Lands, buildings and improvements Machines, equipment and facilities Furniture and fixtures Computer equipment Total Cost 36,316 99,541 53,699 11,892 4,372 205,820 Accumulated depreciation (26,208) (7,968) (18,581) (5,031) (1,827) (59,615) Balance at June 30, 2022 10,108 91,573 35,118 6,861 2,545 146,205 Cost 40,851 142,561 75,134 15,610 10,015 284,171 Accumulated depreciation (31,349) (14,698) (26,817) (7,198) (7,521) (87,583) Balance at June 30, 2023 9,502 127,863 48,317 8,412 2,494 196,588 Depreciation expense of property, plant and equipment for the year ended June 30, 2023 was $16,408 ($9,697 for the year ended June 30, 2022). |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Intangible assets | Intangible assets Accounting policy Intangible assets are recorded at acquisition cost or at the fair value of intangible assets acquired in a business combination and, for finite useful life intangibles, less accumulated amortization calculated using the straight-line method. These intangible assets have useful lives defined based on the useful economic life. The goodwill arising on a business combination is initially measured as the excess of the consideration transferred over the fair value of the net assets acquired (net identifiable assets acquired and liabilities assumed). Subsequent to initial recognition, goodwill is measured at cost, less any accumulated impairment losses, as described in Note 16. The useful lives and methods of amortization of intangibles are reviewed at each balance sheet date and adjusted prospectively, if appropriate. The estimated useful lives of intangible assets for the years ended June 30, 2023 and 2022 are as follows: Customer relationship 9 years Purchase contacts 4 years Software and other 5 years An intangible asset is derecognized upon disposal or when no future economic benefits are expected, and any gain or loss is recognized in the statement of profit or loss when the asset is derecognized. The impairment policy for intangibles is described in note 16. Goodwill Customer relationship Purchase contracts and brands Software and other Total Cost: At June 30, 2020 259,526 138,179 204 4,599 402,508 Additions — — — 32,015 32,015 Business combinations 137,190 118,046 14,827 1,966 272,029 At June 30, 2021 396,716 256,225 15,031 38,580 706,552 Additions — — — 17,793 17,793 Business combinations (i) 71,348 45,922 8,764 — 126,034 Translation adjustment (1,559) (670) (1,949) — (4,178) Other (ii) (14,531) — — — (14,531) At June 30, 2022 451,974 301,477 21,846 56,373 831,670 Additions — — — 5,025 5,025 Business combinations (i) 98,890 50,600 1,207 — 150,698 Other (iii) (3,201) — — — (3,201) Translation adjustment (998) (666) (48) (10) (1,722) At June 30, 2023 546,665 351,412 23,005 61,388 982,470 Amortization: At June 30, 2020 — 19,344 4 676 20,024 Amortization for the year — 26,416 1,081 2,221 29,718 At June 30, 2021 — 45,760 1,085 2,897 49,742 Amortization for the year — 43,742 5,844 8,021 57,607 At June 30, 2022 — 89,502 6,929 10,918 107,349 Amortization for the year — 50,263 8,983 8,682 67,928 At June 30, 2023 — 139,765 15,912 19,600 175,277 At June 30, 2022 451,974 211,975 14,917 45,455 724,321 At June 30, 2023 546,665 211,646 7,093 41,788 807,192 __________________ (i) Balances arising from business combinations (Note 21). (ii) Balances arising from the adjustment in the purchase price from acquisition of Desempar and Cultivar, which occurred in the year ended June 30, 2021. The consideration for each acquisition was subject to post-closing price adjustments, based on the working capital variations of the purchased company. (iii) Balance arising from the adjustment in the purchase price from acquisition of Agrozap, which occurred in the year ended June 30, 2022. The consideration for the acquisition was subject to post-closing price adjustment, based on the working capital variations of the purchased company. |
Impairment testing of non-finan
Impairment testing of non-financial assets | 12 Months Ended |
Jun. 30, 2023 | |
Impairment testing of non-financial assets [Abstract] | |
Impairment testing of non-financial assets | Impairment testing of non-financial assets Accounting policy The carrying amount of the Group’s non-financial assets are reviewed at each reporting date to assess whether there is an indication of impairment. This indication may be due to internal factors arising from the operational efficiency of the assets or external factors due to the macroeconomic scenario and the behavior of the commodity prices and the U.S. dollar. If there is such indication, the recoverable amount of the asset is estimated. The recoverable amount of an asset is defined as the higher of the fair value of the asset and the value in use of its CGU, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and a provision for impairment is recognized to adjust the carrying amount to its recoverable amount. In assessing value in use, the estimated future cash flow is discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired asset, when applicable. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized, except in the case of goodwill that cannot be reversed in future periods. The Group assessed its business segments by grouping the assets of each region into independent cash-generating units (“CGUs”), which represent the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Critical accounting estimates and judgments The Group determines its cash flows based on the budgets approved by its management, which use the following assumptions: (i) revenue growth rate (ii) margins applied to the cost of sale of its products; and (iii) discount rates that reflect specific risks of each CGU. These assumptions are subject to risks and uncertainties. Therefore, it is possible that changes in circumstances may alter these projections, which may affect the recoverable amount of the assets. Business segments are composed by certain CGUs as follows: Segment Identified CGUs LATAM Cluster Colombia CGU Brazil Cluster North CGU, East CGU, South CGU Crop Care Cluster Biological products and special fertilizers CGU Goodwill arising from business combinations are allocated to the CGUs that benefited from the acquisition and are tested for impairment at that level. The Group consistently monitors whether new CGUs are identified, and whether they are justifiable. The main assumptions used in the impairment test are as follows: Cash-generating unit Revenue growth rate Operating margin average Pre Tax discount rate Recoverable amount Colombia CGU 15.2 % 16.0 % 12.0 % 854,088 North CGU 11.5 % 15.1 % 13.2 % 1,034,123 East CGU 13.4 % 11.6 % 13.2 % 2,053,650 South CGU 15.6 % 21.9 % 13.2 % 2,212,679 Biological products and special fertilizers CGU 21.2 % 24.7 % 13.2 % 1,643,008 |
Trade payables
Trade payables | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade payables | Trade payables Accounting policy Trade payables related to the purchase of goods for resale of agricultural inputs are financial liabilities (see Note 7) initially recognized at fair value and subsequently stated at amortized cost using the effective interest rate method. (a) Trade payables 2023 2022 Trade payables – Brazil 2,268,420 1,990,089 Trade payables – Colombia 309,828 311,611 Total 2,578,248 2,301,700 Current 2,575,701 2,301,700 Non-current 2,547 — The average effective interest rate used to discount trade payables for the year ended June 30, 2023 was 1.58% per month (1.18% as of June 30, 2022). (b) Guarantees The Group acquires guarantees with financial institutions in connection with installment purchases of agricultural inputs from certain suppliers. These guarantees are represented by short-term bank guarantees and endorsement to the supplier of CPRs obtained from customers in the sale process. The amount of these guarantees as of June 30, 2023 was R$920,870 (R$506,750 as of June 30, 2022). (c) Trades payable — Supplier finance During the year ended June, 30, 2023, the Group signed agreements with financial institutions to negotiate with suppliers to extend the payment terms and discounting of trade receivable from its suppliers, with interest rates ranging from 1 and 1.5 per month. When trade payable is included in this transaction, such amount is transferred from “Trade Payables” to “Trades payable — Supplier finance”. The Group did not sign supplier finance agreements for the year ended June 30, 2022. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Borrowings | Borrowings Accounting policy Borrowings are financial liabilities initially recognized at fair value, net of transaction costs incurred in the transaction and are subsequently stated at amortized cost. Any difference between the borrowed amounts (net of transaction costs) and total payments is recognized in the statement of profit or loss over the year during which the borrowings are outstanding using the effective interest rate method. 2023 2022 Borrowing in Colombia 71,562 39,755 Borrowings in Brazil 893,913 670,797 Total borrowings 965,475 710,552 The Group’s borrowings are contracted for the purpose of strengthening the working capital and have repayment terms scheduled in conjunction with the operating cycles of each harvest. (a) Debt composition Average interest rate 2023 (i) 2023 Average 2022 Debt contracts in Brazil in: R$, indexed to CDI (ii) (iv) 16.62 % 725,563 14.45 % 525,099 R$, with fixed interest (iv) 8.76 % 8,590 — — U.S. Dollars, with fixed interest (iv) 4.03 % 159,760 3.16 % 145,698 Debt contracts in Colombia in: COP, indexed to IBR (iii) / (iv) 15.43 % 69,862 14.26 % 39,755 COP, with fixed interest (iv) 15.72 % 1,700 — — Total 965,475 710,552 Current 922,636 681,217 Non-current 42,839 29,335 __________________ (i) In order to determine the average interest rate for debt contracts with floating rates, the Group used the rates prevailing during the years. (ii) Brazilian reais denominated debt that bears interest at the CDI Rate (see Note 8 for a definition of those indexes), plus spread. (iii) Colombian peso-denominated debt that bears interest at the IBR rate (see Note 8 for a definition of those indexes), plus spread. (iv) The borrowings are guaranteed by $822 of transferred credit rights (see note 6). (b) Movement in borrowings At June 30, 2020 168,571 Proceeds from borrowings 466,280 Repayment of principal amount (472,909) Accrued interest 33,971 Borrowings from acquired companies 76,915 Interest payment (30,424) At June 30, 2021 242,404 Proceeds from borrowings 615,984 Repayment of principal amount (299,613) Accrued interest 74,081 Borrowings from acquired companies 85,097 Interest payment (7,401) At June 30, 2022 710,552 Proceeds from borrowings 1,449,445 Repayment of principal amount (1,456,017) Accrued interest 319,557 Borrowings from acquired companies 25,756 Exchange rate translation 11,921 Interest payment (95,739) At June 30, 2023 965,475 (c) Schedule of maturity of noncurrent portion of borrowings The installments are distributed by maturity year: 2023 2022 2023 — 4,509 2024 726 23,842 2025 15,452 929 2026 1,376 55 2027 25,285 — Total 42,839 29,335 (d) Covenants The Group has no financial covenants as of June 30, 2023. |
Obligations to FIAGRO quota hol
Obligations to FIAGRO quota holders | 12 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Obligations to FIAGRO quota holders | Obligations to FIAGRO quota holders On July 22, 2022, the Group entered into an agreement to transfer receivables in the aggregate amount of $160,000 to FIAGRO, a structured entity, as defined by IFRS 10, established under Brazilian law designed specifically for investing in agribusiness credit rights receivables. The acquisition of such receivables by the FIAGRO investment fund enables the Group to anticipate the receipt of funds from such receivables. The Group holds all subordinated quotas issued by the FIAGRO, representing approximately 5% of the total outstanding quotas in an aggregate amount of $8,100 while other parties hold all senior and mezzanine quotas, representing approximately 95% of the total outstanding quotas, which includes certain of Patria’s related parties that acquired the mezzanine quotas of FIAGRO in an aggregate amount of $56,000. Under the terms of the FIAGRO, we are not liable in case there is a default on the credit rights acquired by the fund, but any such default may adversely affect our stake in FIAGRO quotas. Our agreement to assign certain credit rights to FIAGRO will expire when all assigned receivables have been liquidated. The bylaws of the FIAGRO were established by the Group at their inception, and grant the Group significant decision-making authority over these entities, such as the right to determine which credits rights are eligible to be acquired by the FIAGRO. In addition, senior and mezzanine quota holders receive interest at a benchmark rate of return ranging from the CDI rate +2.45% per year up to the CDI rate +8.0% per year. Residual returns from the FIAGRO fund, if any, are paid on the subordinated quotas, which do not bear interest and are not otherwise entitled to any pre-established rate of return. Senior and mezzanine quotas amortize annually over a three-year period after an initial 24-month grace period, whereas subordinated quotas amortize at the end of the fifth annual period. In accordance with IFRS 10, we concluded we control FIAGRO and, therefore, it is consolidated in our financial statements. The senior and mezzanine quotas are accounted for as a financial liability under “Obligations to FIAGRO quota holders” and the remuneration paid to senior and mezzanine quota holders is recorded as interest expense. |
Payables for the acquisition of
Payables for the acquisition of subsidiaries | 12 Months Ended |
Jun. 30, 2023 | |
Payables For Acquisition Of Subsidiaries [Abstract] | |
Payables for the acquisition of subsidiaries | Payables for the acquisition of subsidiaries The purchase agreements for acquisition of subsidiaries include payments to the seller in the event of successful collection, after the acquisition date of outstanding receivables and certain tax credits subject to administrative proceedings. See Note 21. Consideration paid during the year ended June 30, 2023, net of cash acquired, was $157,442 which includes installment payments for acquisitions completed in previous years in the amount of $101,889 ($198,305 on June 30, 2022, which includes payments for acquisitions made in previous years in the amount of $125,439 and R$280,374 |
Acquisition of subsidiaries
Acquisition of subsidiaries | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations Disclosure [Abstract] | |
Acquisition of subsidiaries | Acquisition of subsidiaries Accounting policy The acquisition method is used to account for each business combination carried out by the Group, which consists of the following: • Determining the acquisition date; • Determining the acquirer and the acquiree; • Determining the consideration transferred for the acquisition of control; • Determining the fair value of separately identifiable assets and liabilities; and • Determining the residual goodwill or gain on bargain purchase. The acquisition date is typically the date on which the Group assumes the control of the business. Consideration transferred is measured at the acquisition date at the fair value of the assets transferred, including cash, the liabilities incurred, and the equity instruments issued by the Group at the acquisition date. For each business combination, the Group measures the non-controlling interests in the acquiree based on its share of the subsidiary’s identifiable net assets. Acquisition-related costs are expensed as incurred. When the Group acquires a business, it assesses the fair value of the assets and liabilities assumed in order to allocate them according to the contractual terms, economic circumstances and pertinent conditions at the acquisition date. Any contingent consideration to be transferred by the acquirer is recognized at the acquisition date fair value. Subsequent changes in the fair value of the contingent consideration, considered an asset or a liability, shall be recognized in accordance with IFRS 9 Financial Instruments, in the statement of profit or loss. Goodwill or a gain on bargain purchase is the difference between the fair value of the assets acquired and liabilities assumed, and the consideration transferred. When the consideration transferred is higher than the fair value of the net assets acquired goodwill is recognized for the difference, and it is subsequently tested for impairment. When the consideration transferred is lower that the fair value of net assets acquired, a gain on bargain purchase is recognized in the statement of profit or loss. Intangible assets recognized within the scope of a business combination are accounted for in accordance with the accounting policy described in Note 15. Critical accounting estimates and judgments Accounting for business combination requires the Group to exercise critical judgment in determining the fair value of the assets and liabilities of the businesses being acquired. Accordingly, the Group makes certain assumptions about future conditions that are uncertain, including future commodity prices, interest rates, inflation and weather conditions. Changes in some of these assumptions may impact the Group’s business and expected results may differ materially from the estimated amounts at the acquisition date. The Group entered into several agreements to acquire groups of companies to expand its business into new markets or territories, add additional facilities, bolster its competitive edge, or acquire and access new technologies and skillsets. (a) Acquisitions in the year ended June 30, 2023 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition was: Fair value as of the acquisition date Assets Floema (e) Casa Trevo Provecampo Sollo Sul and Dissul Cromo Total Cash equivalents 24,167 12,306 10,479 16,307 8,735 71,994 Trade receivables 19,892 32,106 7,499 132,467 11,907 203,871 Inventories 52,133 61,734 11,320 84,226 5,311 214,724 Other assets 11,739 4,750 23 46,663 664 63,839 Property, plant and equipment 1,152 867 983 2,372 3,151 8,525 Intangible assets 14,879 1,676 12,117 2,083 2,722 33,477 123,962 113,439 42,421 284,118 32,490 596,430 Liabilities Trade payables 88,902 48,070 10,980 80,811 1,200 229,963 Borrowings — — — 25,756 — 25,756 Provision for contingencies — 10,245 — — — 10,245 Other liabilities 1,543 13,659 6,910 87,921 4,056 114,089 90,445 71,974 17,890 194,488 5,256 380,053 Total identifiable net assets at fair value 33,517 41,465 24,531 89,630 27,233 216,376 Non-controlling interests (1) (6,220) — — (8,169) (14,389) Goodwill arising on acquisition 25,796 9,625 2,010 57,719 5,331 100,481 Consideration transferred 59,313 44,870 26,541 147,349 24,395 302,468 Cash paid 25,294 23,619 17,682 52,832 8,120 127,547 Shares issued (1) 12,296 — — — — 12,296 Payable in installments 21,723 21,251 8,859 94,517 16,275 162,625 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in equity. (b) Acquisitions in the year ended June 30, 2022 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition was: Fair value as of the acquisition date Assets Produtiva (j) Cenagro (k) Cenagral (l) Union Agro (m) Agrozap (n) Nova Geração (o) Total Cash and cash equivalents 53,699 2,142 1,064 66,256 9,028 1,617 133,806 Trade receivables 27,610 11,792 7,492 117,882 98,201 47,978 310,955 Inventories 46,261 22,670 5,833 42,435 85,683 9,631 212,513 Other assets 8,472 12,225 1,023 4,524 22,204 2,893 51,341 Property, plant and equipment 1,223 1,266 363 26,659 2,642 585 32,738 Intangible assets 26,074 2,602 7,437 8,293 6,015 4,265 54,686 163,339 52,697 23,212 266,049 223,773 66,969 796,039 Liabilities Trade payables 77,063 17,008 2,097 24,750 136,086 37,532 294,536 Borrowings — 3,045 — 25,157 50,701 6,194 85,097 Provision for contingencies — — — 11,362 — 11,362 Other liabilities 8,898 18,410 5,750 9,923 25,029 743 68,753 85,961 38,463 7,847 71,192 211,816 44,469 459,748 Total identifiable net assets at fair value 77,378 14,234 15,365 194,857 11,957 22,500 336,291 Non-controlling interests (1) - (2,847) (3,073) (52,611) (4,215) — (62,746) Goodwill arising on acquisition 9,491 11,468 9,003 - 33,218 8,168 71,348 Gain on bargain purchase — — — (18,295) — (18,295) Consideration transferred 86,869 22,855 21,295 123,951 40,960 30,668 326,598 Cash paid 36,385 16,724 15,376 103,800 18,813 15,574 206,672 Shares issued (1) 22,500 — — — — 7,807 30,307 Payable in installments 27,984 6,131 5,919 20,151 22,147 7,287 89,619 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in net investment. (c) Acquisitions in the year ended June 30, 2021 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition were: Fair value as of the acquisition date in 2021 Assets Integra Quali América Culti Desem Agrobi Total Cash and cash equivalents 19,905 42,259 7,576 44,223 59,428 2,064 175,455 Trade receivables 21,543 81,377 76,123 231,784 251,002 30,154 691,983 Inventories 30,774 110,946 58,188 68,471 178,697 2,789 449,865 Other assets 5,489 31,940 3,840 11,505 34,119 69 86,962 Property, plant and equipment 832 9,914 603 2,770 7,652 4,083 25,854 Intangible assets 8,398 16,648 40,816 8,375 55,579 11,446 141,262 86,941 293,084 187,146 367,128 586,477 50,605 1,571,381 Liabilities Trade payables 47,082 205,861 114,474 217,486 348,213 1,256 934,372 Borrowings 48 5,518 — 50,870 17,231 3,248 76,915 Other liabilities 6,287 4,873 18,871 16,795 45,966 102 92,894 53,417 216,252 133,345 285,151 411,410 4,606 1,104,181 Total identifiable net assets at fair value 33,524 76,832 53,801 81,977 175,067 45,999 467,200 Non-controlling interests (1) — (22,458) — (13,706) — — (36,164) Goodwill arising on acquisition 22,259 19,231 7,841 6,467 72,933 7,004 135,735 Consideration transferred 55,783 73,605 61,642 74,738 248,000 53,003 566,771 Cash paid 27,723 34,021 42,505 54,184 188,000 28,000 374,433 Shares issued (1) 12,848 — — — — 18,006 30,854 Payable in installments 15,212 39,584 19,137 20,554 60,000 6,997 161,484 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in net investment. (d) Fair value of assets acquired The Group estimated the fair value of significant assets acquired using the following valuation methods: Item 2023 2022 2021 Nature Valuation method Customer relationship 33,477 45,922 119,466 A loyal relationship between the acquirees and its customers, which translates into recurring purchases of products and services Multi Period Excess Earnings Method (MPEEM) Inventories 214,724 212,513 449,865 Inventories Selling price less all expenses related to the distribution of that good Purchase Contracts — — 8,598 Favorable purchase contract with suppliers Multi Period Excess Earnings Method (MPEEM) Brand — 8,764 5,930 Private label products (Produtiva, Union and Cenagral) Relief from Royalty method 248,201 267,199 583,859 There were no differences between accounting basis and tax basis on fair value adjustments, and therefore no deferred taxes were recorded, except for Provecampo, Cenagro and Cenagral, where the Group recorded a corresponding deferred tax liability of $5,298 since the Group does not have a viable tax plan that will permit that the accounting basis and tax basis be the same after the acquisition. (e) Acquisition of Floema On March 22, 2022, the Group signed an agreement for the acquisition of Floema Soluções Nutricionais de Cultivos Ltda. (“Floema”), establishing the terms and other conditions for its acquisition. The fair value of the shares issued to this acquisition was based on an equity transaction with third parties close to the acquisition date. The acquisition was completed on August 4, 2022 and the Group currently owns a 62.61% interest. (f) Acquisition of Casa Trevo Participações S.A. On May 5, 2022, the Group signed an agreement for the acquisition of Casa Trevo Participações S.A. (“Casa Trevo”), establishing the terms and other conditions for its acquisition. The acquisition was completed on August 31, 2022 and the Group currently owns a 79.14% interest. (g) Acquisition of Provecampo On June 16, 2022, the Group signed an agreement for the acquisition of Provecampo S.A.S. (“Provecampo”), an entity incorporated in Colombia, establishing the terms and other conditions for its acquisition. The acquisition was completed on July 29, 2022 and the Group currently owns a 94.90% interest. (h) Acquisition of Sollo Sul e Dissul On July 22, 2022, the Group signed an agreement for the acquisition of Sollo Sul Insumos Agrícolas Ltda (“Sollo Sul”) and Dissul Insumos Agrícolas Ltda. ("Dissul"), establishing the terms and other conditions for its acquisition. The acquisition was completed on November 30, 2022 and the Group currently owns a 93.11% interest. (i) Acquisition of Cromo On January 13, 2023, the Group signed an agreement for the acquisition of Cromo Indústria Química Ltda. (“Cromo”), establishing the terms and other conditions for its acquisition. The acquisition was completed on May 31, 2023 and the Group currently owns a 70% interest. (j) Acquisition of Produtiva On June 23, 2021, an agreement was signed between Produtec Comércio e Representações S.A. (“Produtec”), a subsidiary of Lavoro Brazil, to acquire Produtiva Agronegócios Comércio e Representações S.A. (“Produtiva”), establishing the terms and other conditions for its acquisition. The fair value of the shares issued to this acquisition was based on an equity transaction with third parties close to the acquisition date. The acquisition was completed on September 2, 2021, and the Group currently indirectly owns an 87.40% interest. Under the terms of the acquisition agreement the Group is committed to repaying the sellers an amount of $4,733 related to the successful collection of receivables past due as of the acquisition date. (k) Acquisition of Cenagro On July 28, 2021, the Group signed an agreement to acquire Grupo Cenagro SAS (“Cenagro”), an entity incorporated in Colombia, establishing the terms and other conditions for its acquisition. The acquisition was completed on August 31, 2021 and the Group currently owns an 94.90% interest in Cenagro. (l) Acquisition of Cenagral On July 28, 2021, the Group signed an agreement to acquire Cenagral SAS (“Cenagral”), an entity incorporated in Colombia, establishing the terms and other conditions for its acquisition. The acquisition was completed on August 31, 2021 and the Group currently owns an 94.90% interest in Cenagral. (m) Acquisition of Union Agro On July 26, 2021, the Group signed an agreement to acquire Union Agro S.A. (“Union Agro”), establishing the terms and other conditions for its acquisition. The acquisition was completed on October 28, 2021 and the Group currently owns a 73% interest. A gain on bargain purchase in the amount of $18,295 was recognized on the acquisition date. This gain is recorded under other operating income, net, as discussed in Note 31. (n) Acquisition of Agrozap On August 5, 2021, the Group signed an agreement for the acquisition of Facirolli Comércio e Representações Ltda. (“AgroZap”), establishing the terms and other conditions for its acquisition. The acquisition was completed on January 7, 2022 and the Group currently owns a 62.61% interest. Under the terms of the acquisition agreement, the Group is committed to repaying the sellers an amount of $4,029 related to the successful collection of receivables past due as of the acquisition date. (o) Acquisition of Nova Geração On December 24, 2021, the Group signed an agreement for the acquisition of Nova Geração Comércio de Produtos Agrícolas Ltda. (“Nova Geração”), establishing the terms and other conditions for its acquisition. The acquisition was completed on April 6, 2022 and the Group currently owns a 66.75% interest. Total consideration transferred amounted to $30,668 of which $10,930 was paid in cash on the closing date of the acquisition, which occurred on April 6, 2022 and $7,807 was paid in shares. The remaining $11,931 was paid in cash in April 2023. (p) Acquisition of Integra On June 18, 2020, an agreement was signed between a subsidiary of Lavoro Brazil, Produtec Comércio e Representações S.A. (“Produtec”), and the shareholders of Integra Soluções Agrícolas Ltda. (“Integra”), establishing the terms and other conditions for its acquisition. Consideration transferred to the acquisition was composed of 70.3% to be paid in cash and 29.7% settled in shares issued by Produtec to the selling shareholders representing 8.4% of its capital. The fair value of these shares was $12,848 and was based on an equity transaction with third parties close to the acquisition date. The acquisition was completed on September 1, 2020, and the Group currently indirectly owns 72.42% interest at Integra through Produtec, which directly owns 100% of Integra. (q) Acquisition of Qualiciclo On July 17, 2020, an agreement was signed between the Group and the shareholders of Qualiciclo Agrícola S.A. (“Qualiciclo”), establishing the terms and other conditions for its acquisition. The acquisition was completed on November 17, 2020. The Group currently owns a 66.75% interest. Under the terms of the agreement the Group is committed the repay the sellers amounts related to the successful collection of administrative proceeding on tax credits with the RFB in the amount of $13,844. The Group recognizes an account payable for the amounts of probable disbursements as of the acquisition date. (r) Acquisition of América On September 11, 2020, an agreement was signed between the Group and the shareholders of América Insumos Agrícolas Ltda. (“América”), establishing the terms and other conditions for its acquisition. The acquisition was completed on December 30, 2020. The Group currently owns a 100% interest. (s) Acquisition of Cultivar On November 12, 2020, an agreement was signed between Distribuidora Pitangueiras de Produtos Agropecuários S.A, a subsidiary Lavoro Agro, and the current shareholders of Cultivar Agrícola e Comércio, Importação e Exportação Ltda. (“Cultivar”), establishing the terms and other conditions for its acquisition. Pitangueiras became the parent company of Cultivar, holding 63.47% of its capital on the deal’s closing date, April 1, 2021. The contract guarantees the payment of installment in the event of successful collection of receivables past due at the acquisition date in the amount of $5,752. The Group recognizes an account payable for the amounts for which there are probable disbursements.The Group currently owns a 93.11% interest. (t) Acquisition of Desempar On December 4, 2020, an agreement was signed by the Group for the acquisition of Desempar Participações Ltda. (“Desempar”), establishing the terms and other conditions for its acquisition. The acquisition was completed on March 31, 2021. The Group currently owns 93.11% interest. (u) Acquisition of Agrobiológica On July 21, 2020, an agreement was signed by Agrobiológica Sustentabilidade S.A. (formerly Maneogene Agrociência S.A.) (“Agrobiológica Sustentabilidade”), a subsidiary Lavoro Brazil, to acquire Agrobiológica Soluções Naturais Ltda. (“Agrobiológica”), establishing the terms and other conditions for its acquisition. Consideration transferred to the acquisition was composed of 55.2% to be paid in cash and 44.8% settled in shares issued by Agrobiológica Sustentabilidade to the selling shareholders representing 34.9% of its capital. The fair value of the shares issued was $18,006 and was based on discounted cash flow methodology. The acquisition was completed on August 28, 2020. The Group currently indirectly owns 65.13% interest at Agrobiológica through Agrobiológica Sustentabilidade, which directly owns 100% interest at Agrobiológica. (v) Pro forma information (unaudited) The following tables discloses the Group’s revenues and profit or loss for the year assuming all of the acquisitions completed during the year were completed at the beginning of such year: 2023 2022 2021 Revenues 9,697,932 8,163,196 6,231,988 Profit (loss) for the year (187,082) 151,235 81,742 (w) Revenues and results from new subsidiaries The revenues and profit or loss of the acquisitions from the acquisition date through the end of the fiscal year in which the acquisition was completed and included in the consolidated statement of profit or loss are as follows: Acquisitions in the year ended June 30, 2023: Revenues Profit (loss) Period from Provecampo 37,291 1,656 August 2022 Floema 205,451 12,628 August 2022 Casa Trevo 136,003 20,787 September 2022 Sollo Sul 182,385 (10,064) December 2022 Cromo 210 (719) May 2023 Total 561,340 24,288 Acquisitions in the year ended June 30, 2022: Revenues Profit Period from Produttiva 175,335 14,152 September, 2021 Cenagro 156,722 6,372 September, 2021 Cenagral 26,267 (1,013) September, 2021 Union Agro 156,000 23,428 November, 2021 Agrozap 132,911 1,632 January, 2022 Nova Geração 7,179 (3,828) January, 2022 Total 654,414 40,743 Acquisitions in the year ended June 30, 2021: Revenues Profit Period from Integra 144,087 (4,773) September, 2020 Agrobiológica 39,839 17,217 September, 2020 Qualiciclo 210,521 (12,571) December, 2020 América 74,446 9,304 January, 2021 Cultiva 15,263 (9,185) April, 2021 Desempar 130,771 (13,409) April, 2021 Total 614,927 (13,417) (x) Signed agreement for future acquisitions – Acquisition of NS Agro S.A. (“NS Agro”) The Group signed an agreement on August 25, 2022, for the acquisition of 82% interest in NS Agro S.A. (“NS Agro”), establishing the terms and other conditions for its acquisition. Consideration to be transferred for the acquisition amounted to $664,210 to be paid in cash in three installments. The completion of this acquisition is subject to the usual precedent conditions for this type of transaction, including the approval by the regulatory authorities in Brazil, and has not been completed by the Group as of the issuance date of these financial statements. |
Accounting considerations relat
Accounting considerations related to the SPAC Transaction | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Considerations Related To The SPAC Transaction [Abstract] | |
Accounting considerations related to the SPAC Transaction | Accounting considerations related to the SPAC TransactionOn February 28, 2023, Lavoro and TPB Acquisition Corp. consummated a capital reorganization transaction as described in note 1.b. The SPAC Transaction was accounted for as a capital reorganization in accordance with IFRS 2, Share-based Payment. Under this method of accounting, TPB Acquisition Corp. is treated as the “acquired” company for financial reporting purposes and Lavoro as the accounting “acquirer”. The net assets of TPB Acquisition Corp were stated at historical cost, with no goodwill or other intangible assets recorded. The SPAC Transaction, which is not within the scope of IFRS 3, since TPB Acquisition Corp. did not meet the definition of a “business” pursuant to IFRS 3, was accounted for within the scope of IFRS 2 — Share-Based Payments, or IFRS 2. Any excess of fair value of Lavoro’s ordinary shares issued over the fair value of TPB Acquisition Corp identifiable net assets acquired represents compensation for the service of a stock exchange listing for its shares and is expensed as incurred. Critical accounting estimates and judgments Accounting of SPAC transaction is considered a critical accounting estimate primarily due to the complex nature of the transaction, including the determination the accounting acquirer and assess it as a corporate reorganization, the calculation of the listing expenses and the determination of the accounting treatment of the financial instruments. Changes in some of these assumptions could impact the consolidated financial statements. Accordingly, the Group recorded a listing expense as follows: As of February 27, 2023 Deemed cost of shares issued to TPB Acquisition Corp shareholders (i) 893,613 Less: Net assets of TPB Acquisition Corp at historical cost (574,059) Listing expense 319,554 __________________ (i) The key assumption for the estimated fair value is the opening quoted market price of $9.55 per share as of March 1, 2023 translated considering the foreign exchange rate reported by the Brazilian Central Bank of $1.00 to $5.21. Warrants TPB Acquisition Corp. issued 10,083,606 public and private warrants to certain of its shareholders and its maturity is February 28, 2028. Such public and private warrants were assumed by Lavoro as a result of the SPAC Transaction. The outstanding warrants as of June 30, 2023, is 10,083,592 and aggregate fair value of the private and public warrants is $36,446, and the warrants are reported in the consolidated statement of financial position as warrant liabilities under non-current liabilities. For the year ended June 30, 2023, the Group recognized a gain of R$3,756 related to changes to the fair value of public warrants and private warrants. The fair value of the warrants was calculated based on the listed market price of such warrants. Vesting founder shares and unvested founder shares As part of the SPAC Transaction certain TPB Acquisition Corp.’s shareholders were issued a number of Lavoro ordinary shares tin exchange of TPB Acquisition Corp.’s Class B Ordinary Share that they held prior to the completion of the SPAC Transaction, of which (i) Two-thirds (3,006,050) of such Lavoro ordinary share were deemed to be vesting founder share, and (ii) one-third (1,503,025) of such Lavoro ordinary share were issued to those shareholders. Vesting founder shares will be subject to certain vesting conditions. If at any time during the 3-year period following the close of the SPAC Transaction, for over any 20 trading days within any consecutive 30 trading day period, the closing share price of Lavoro ordinary share is greater than or equal to: • $12.50, then one-half of the vesting founder shares will vest; and • $15.00, then an additional one-half of the vesting founder shares will vest. Lavoro’s ordinary share price targets will be equitably adjusted for stock splits, stock dividends, cash dividends, reorganizations, combinations, recapitalizations and similar transactions affecting Lavoro’s ordinary shares. Any vesting founder shares that will not vest during the 3-year period following the closing of the SPAC Transaction will be forfeited after the 3-year period. The vesting founder shares are considered equity classified contingent considerations under IFRS 2 and are reported as additional paid-in capital under equity. In order to determine the fair value of the Vesting Founder Shares as of the closing of the SPAC Transaction, a Monte Carlo simulation was used, where the future stock price was modeled such that it follows a geometric Brownian motion with constant drift and volatility, where volatility was based on quoted prices of comparable companies. A volatility rate of 54.4% and a risk-free rate of 4.51% were used in the model. Value per share was $9.53 and $8.53 for the shares vesting at $12.50 and $15.00, respectively. In order to determine the fair value of the Unvested Founder Shares as of the closing of the SPAC Transaction, the shares were discounted using a Finnerty put model, assuming a risk-free rate of 4.88%, volatility rate of 54.4%, and a restricted term of 3 months (the estimated time to complete a registration statement). Value per share was determined to be $10.08. Forward share purchase agreements TPB Acquisition Corp. entered into certain Forward Share Purchase Agreements with certain shareholders of TPB Acquisition Corp., in which TPB Acquisition Corp. agreed to purchase, in the aggregate, up to 2,830,750 of TPB Acquisition Corp.’s Class A Ordinary Shares held by those equity holders, either after 24 months after closing of the SPAC Transaction or after meeting certain criteria as defined in the Forward Share Purchase Agreements. Such Forward Share Purchase Agreements were assumed by Lavoro, whereby Lavoro agreed to purchase the same number of Lavoro’s ordinary shares under the same conditions as defined in those Forward Share Purchase Agreements. Lavoro placed a designated balance of funds into an escrow account at the closing of the SPAC Transaction for the purpose acquiring such shares. Lavoro’s Ordinary Shares subject to the Forward Share Purchase Agreement are considered financial liabilities and are recorded in the consolidated statement of financial position as Liability for FPA Shares in non-current liabilities at the amounts deposited in the escrow account. The designated balance of funds in the escrow account is reported in the consolidated statement of financial position as restricted cash. The amount of Liability for FPA Shares and the restricted cash was $139,133 as of June 30, 2023. |
Income taxes
Income taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Income taxes | Income taxes Accounting policy (a) Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Income taxes in Brazil and Colombia are paid by each legal entity on a stand alone basis. (b) Deferred tax Deferred taxes is provided using the liability method on temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred tax liabilities are recognized for all taxable temporary differences, except: • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; • With respect to taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except: • When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss • In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. In assessing the recoverability of deferred tax assets, the Group relies on the same forecast assumptions used elsewhere in the financial statements and in other management reports. The benefits of uncertain tax positions are recorded only after determining, based on the position of its internal and external legal advisors, a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Critical accounting estimates and judgments Significant judgements, estimates and assumptions are required to determine the amount of deferred tax assets that are recognized based on the likely timing and future taxable profits. Deferred tax assets arising from tax losses carryforward and temporary differences are recognized considering assumptions and projected cashflows. Deferred tax assets may be affected by factors including, but not limited to: (i) internal assumptions on the projected taxable income, which are based on sales planning, operational costs and planned capital costs; (ii) macroeconomic environment; and (iii) trade and tax scenarios. The Group applies significant judgement in identifying uncertainties over income tax treatments, which could impact the consolidated financial statements. The Group operates in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. The Group and its subsidiaries are subject to reviews of income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of the applicable laws and regulations. (a) Reconciliation of income taxes expense 2023 2022 2021 Profit (loss) before income taxes (390,937) 140,424 46,207 Statutory rate (i) 34 % 34 % 34 % Income taxes at statutory rate 132,919 (47,744) (15,710) Unrecognized deferred tax asset (ii) (193,898) (7,055) (11,755) Difference from income taxes calculation based on taxable profit computed as a percentage of gross revenue 10,822 7,080 5,375 Deferred income taxes over goodwill tax recoverable (3,897) — — Tax benefit (iii) 244,718 15,066 — Other (18,407) (9) (2,586) Income tax expense 172,256 (32,662) (24,676) Income tax and social contribution effective rate (44 %) 23 % 52 % Current income taxes 37,499 (111,409) (61,676) Deferred income taxes 134,757 78,747 37,000 ___________________ (i) The effective tax rate reconciliation considers the statutory income taxes rates in Brazil, due to the significance of the Brazilian operation when compared to Colombia. The difference to reconcile the effective rate to the Colombian statutory rate (32%) is included in others. (ii) The Group did not recognize deferred tax assets on accumulated tax losses from certain subsidiaries in a total amount of unrecognized credits on tax losses of $187,310 ($7,055 for June 30, 2022 and $11,755 for June 30, 2021). The Group assessed that is unlikely that these subsidiaries will generate future taxable income in the foreseeable future. (iii) This amount reflects the tax benefit from the deduction of the ICMS tax benefits in the calculation of the income tax (see note 10). (b) Deferred income taxes balances 2023 2022 Deferred assets and liabilities: Amortization of fair value adjustment 66,065 32,787 Tax losses 123,072 49,332 Allowance for expected credit losses 49,026 51,379 Adjustment to present value 14,222 40,639 Provision for management bonuses 22,182 26,738 Allowance for inventory losses 3,841 3,463 Financial effect on derivatives (1,468) 2,001 Fair value of commodity forward contracts 31,343 (1,959) Unrealized exchange gains or losses (7,618) (1,803) Unrealized profit in Inventories (11,121) — Gain on bargain purchase — (6,221) Amortized right-of-use assets 6,273 2,617 Deferred tax on goodwill (2,067) — Other provisions 22,981 (5,478) Deferred income tax assets, net 329,082 200,986 Deferred income tax liabilities, net (12,351) (7,491) Deferred income tax assets, net 316,731 193,495 Deferred income tax and social At June 30, 2021 114,748 Recognized in the statement of profit or loss 78,747 At June 30, 2022 193,495 Recognized in the statement of profit or loss 128,362 Deferred tax from acquired companies (5,126) At June 30, 2023 316,731 The aging analysis of net deferred income tax is as follow: 2023 Up to 1 year 185,123 Over 1 year 131,608 Total 316,731 |
Provisions for contingencies
Provisions for contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Other provisions, contingent liabilities and contingent assets [Abstract] | |
Provisions for contingencies | Provisions for contingencies Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are reviewed and adjusted to reflect management’s best estimate at the reporting dates. Probable losses The balance of probable losses from civil, tax and labor contingencies recognized by the Group was $8,845 and $2,966 respectively as of June 30, 2023 and June 30, 2022. Possible losses The Group is a party to various proceedings involving tax, environmental and civil matters that were assessed by management, under advice of legal counsel, as possibly leading to losses. Possible losses from contingencies amounted to $77,724 and $11,600 as of June 30, 2023 and June 30, 2022, respectively. |
Advances from customers
Advances from customers | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from contracts with customers [Abstract] | |
Advances from customers | Advances from customers Advances from customers arise from the “Cash sale” modality, in which rural producers advance payments to the Group at the beginning of a harvest, before the billing of agricultural inputs. These advances are settled in the short term. (a) Movement in the year 2023 2022 2021 Balance as of the beginning of the year 320,560 509,403 218,699 Revenue recognized that was included in the contract liability balance at the beginning of the year (320,560) (509,403) (218,699) Increase in advances 427,463 301,963 390,809 Advances from acquired companies 61,115 18,597 118,594 Balance at the end of the year 488,578 320,560 509,403 Accounting policy Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue from the sale of agricultural inputs is recognized at the point in time when control of the product is transferred to the customer as follows: (i) Retail sales – Sale of products in retail locations, or delivered to the customers, including crop protection, fertilizers, seeds and specialty inputs; (ii) Grains – Sale of grains as a result of Barter transactions (Note 11); (iii) Private Label products – Products delivered to the client such as biological, special fertilizers and off-patent. When products are delivered to the customer revenue is recognized when the customer receives the product at the specified location. The Group engages third parties to provide freight services. The Group provides pulverization services. The Group recognizes revenues from these services when the customer receives and consumes the benefits provided to them, at the time the pulverization services take place. The Group generally acts as a principal as it has the primary responsibility for delivering the contracted goods, bears the inventory risk, and has discretion to establish the price. Revenue from contracts with customers is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. For sales of grains see Note 11. Sales prices are substantially based on international benchmark market prices, which are variable and subject to global supply and demand, and other market factors. There are no general warranties to the customers. Returns and incentives are estimated based on historical and forecasted data, contractual terms, and current conditions. Transportation costs are generally recovered from the customer through sales pricing and is included in cost of goods sold. Trade receivables usually include a significant financing component. As such, the transaction price is discounted, using the interest rate implicit in the contract (i.e., the interest rate that discounts the trade receivable amount to the cash selling price) and revenue is recognized for such amount. A significant financing component is recognized as financial income under the amortized cost method. The average monthly interest rate applied was 0.96% for June 2023 and 1% for June 2022 and 2021. Below is revenue from contracts with customers disaggregated by product line and geographic location: 2023 2022 2021 Inputs Retails sales Brazil 6,950,340 5,555,066 3,439,049 Colombia 1,145,520 1,066,548 758,423 8,095,860 6,621,614 4,197,472 Private Label products Crop Care 557,167 331,527 41,138 Grains (ii) Brazil 633,565 693,525 759,521 Colombia 33,360 21,780 30,251 666,925 715,305 789,772 Services Colombia 27,461 78,088 70,163 Total Revenues 9,347,413 7,746,534 5,098,545 Summarized by region Brazil 8,141,072 6,580,118 4,239,708 Colombia 1,206,341 1,166,416 858,837 __________________ (i) Sales between the Crop Care Cluster and the Brazil Cluster. (ii) As explained in Note 11, the Group receives grains from certain customers in exchange to the product sold. The fair value of such non-cash consideration received from the customer is included in the transaction price and measured when the Group obtains control of the grains. The Group estimates the fair value of the non-cash consideration by reference to its market price. |
Related parties
Related parties | 12 Months Ended |
Jun. 30, 2023 | |
Related party [Abstract] | |
Related parties | Related parties Related parties of the Group that have receivable, payable or other balances are either (i) Non-controlling shareholders, (ii) Patria Investments Limited, which manages the funds that control the Group, or (iii) Key management personnel. (a) Breakdown of assets and liabilities: 2023 2022 Assets Trade receivables (i) 24,487 11,677 Advances to suppliers (i) — 67 Total assets 24,487 11,744 Liabilities Trade payables (i) 1,675 274 Advances from customers (i) — 1,097 Payables for the acquisition of subsidiaries (ii) 100,287 63,930 Total liabilities 101,962 65,301 __________________ (i) Refer to commercial transactions in the ordinary course of business with non-controlling shareholders of subsidiaries. Such transactions are carried at the same commercial terms as non-related parties customers. (ii) Payments in installments to the non-controlling shareholders related to certain business combinations as described in Note 20. (b) Statement of profit or loss 2023 2022 2021 Revenue from sales of products (i) 33,032 13,046 Monitoring expenses (ii) (18,681) (2,504) 5,592 Interest on payables for the acquisition of subsidiaries (4,841) Other expenses (2,374) (1,417) — Total 7,137 9,125 5,592 __________________ (i) Refer to commercial transactions in the ordinary course of business with non-controlling shareholders of subsidiaries. Such transactions are carried at the same commercial terms as non-related party customers. (ii) Expenses paid to the Parent in relation to management support services for acquisition transactions by Gestão e Transformação S.A. (c) Key management personnel compensation 2023 2022 2021 Wages 14,268 11,164 6,540 Direct and indirect benefits 690 427 551 Variable compensation (bonuses) 25,479 3,992 6,148 Short-term benefits 40,437 15,583 13,239 Share-based payment benefits 14,533 — — Total 54,970 15,583 13,239 Key management personnel compensation includes payments to Group board of directors and the executive officers. |
Equity
Equity | 12 Months Ended |
Jun. 30, 2023 | |
Share capital, reserves and other equity [Abstract] | |
Equity | Equity (a) Prior reorganization The financial statements were prepared in accordance with principles described in Note 2. No share capital is presented. The net investment and the profit for the year is derived by aggregating the net assets and business activities of the Group. Acquisitions of non-controlling interests in the year ended June 30, 2023: In 2022, the Group acquired an additional 26.24% stake of Cultivar for $42,500. The carrying amount of the 26.24% non-controlling interest was $16,607. The Group recognized a decrease in non-controlling interest of $16,607 and a decrease in net investment of the Parent of $25,893. In 2022, the Group acquired an additional 6.89% stake of Pitangueiras for $45,000. The carrying amount of the 6.89% non-controlling interest was $19,569. The Group recognized a decrease in non-controlling interest of $19,569 and a decrease in net investment of the Parent of $25,431. Agrovenci, Qualiciclo, Desempar Participações, Denorpi, Deragro, Desempar Tecnologia, Futuragro, Plenafértil, Realce, Cultivar and Nova Geração are direct or indirect controlled by Pitangueiras and the equity interest of each subsidiary were changed on the consolidated financial statements as described in note 2.c. Additionally, the Group paid R$13,387 related to non-controlling interests on Produtec. The effect on the total net investment during the period is summarized as follow: Pre reorganization: Carrying amount of non-controlling interests acquired 36,176 Consideration paid to non-controlling interests (100,887) Excess of consideration paid recognized in net investment of the Parent (64,711) Acquisitions of non-controlling interests in the year ended June 30, 2022: In December 2021, the Group acquired an additional 20% stake of Group Cenagro through the exchange of shares of Lavoro Colombia SAS representing a 2.68% interest. No cash consideration was paid. The fair value of such shares was R$6,480 and the carrying amount of the 20% non-controlling interest was R$4,602. The fair value of the consideration was based on an equity transaction with third partiesclose to the acquisition date.The Group recognized an increase in non-controlling interest of R$1,878 and a decrease in net investment of the Parent of R$1,878. In June 2022, the Group acquired an additional 5.77% stake of Lavoro Agrocomercial S.A. paid in cash for R$16,782. The carrying amount of the 5.77% non-controlling interest was R$9,769. The Group recognized a decrease in non-controlling interest of R$9,769 and a decrease in net investment of the Parent of R$7,013. In June 2022, the Group acquired an additional 7.65% stake of Produtec Comércio e Representações S.A. paid in cash for R$17,569. The carrying amount of the 6.89% non-controlling interest was R$23,203. The Group recognized a decrease in non-controlling interest of R$23,203 and an increase in net investment of the Parent of R$5,634. The effect on the total net investment during the year is summarized as follow: In the year ended June 30, 2022: Carrying amount of non-controlling interests acquired 32,972 Difference between consideration paid in shares and non-controlling interest acquired (1,878) Total carrying amount of non-controlling interests acquired, net 31,094 Consideration paid to non-controlling interests (34,351) Excess of consideration paid recognized in net investment of the Parent (3,257) Acquisitions of non-controlling interests in the year ended June 30, 2021: In fiscal year ended June 30, 2021, the Group acquired an additional 8.94% stake of Lavoro Agrocomercial paid in cash for R$79,493. The carrying amount of the 8.94% non-controlling interest was R$57,422. The Group recognized a decrease in non-controlling interests of R$57,422 and a decrease in net investment of the Parent of R$22,071, as follows: Carrying amount of non-controlling interests acquired 57,422 Consideration paid in cash to non-controlling interests (79,493) Excess of consideration paid recognized in net investment of the Parent (22,071) (b) After reorganization The following table illustrates the impact of the closing of SPAC Transaction on the shareholders’ equity of the Lavoro: Ordinary authorized and issued shares Number of shares Share capital Additional Paid-in Capital Net investment — — — Shares issued to the shareholders of Lavoro Agro Limited 98,726,401 514 1,464,083 Shares issued to the shareholders of TPB Acquisition Corp 14,875,879 77 670,256 As of June 30, 2023 113,602,280 591 2,134,339 Ordinary Shares A Lavoro ordinary shares have a par value of US$0.001 and are entitled to one vote per share. Other capital reserves Other capital reserves is comprised of a reserve set-up by the Group share-based payment (an equity-settled share-based compensation plan). Share based payment Accounting policy for share based payment Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in personnel expenses (Note 29), together with a corresponding increase in equity (other capital reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. Service conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. Share-based payment (“SBP”) On August 17, 2022, the Group approved the Lavoro Agro Holding S.A. Long-Term Incentive Policy (the “Lavoro Share Plan”). Under the Lavoro Share Plan, individuals selected by the Lavoro board of directors (“Selected Employees”) are eligible to receive incentive compensation consisting of cash, assets or share options issued by Lavoro Agro Limited, in an amount linked to the appreciation in the Lavoro Agro Limited share price at the time of the liquidity event, upon the satisfaction of certain conditions, as described below. As of June 30, 2023, Lavoro has granted 49,518,732 share options as incentive compensation to Selected Employees. Share options granted under the Lavoro Share Plan will vest in the event the following market conditions are met (the “Market Conditions”): (i) the occurrence of a liquidity event satisfying a minimum internal rate of return specified in the Lavoro Share Plan; and (ii) the price per share obtained under such liquidity event must be greater than or equal to one of the following amounts: (a) a pre-established reference price multiplied by three; or (b) an amount calculated in accordance with a pre-established formula, in each case specified under the Lavoro Share Plan. Moreover, upon the satisfaction of the Market Conditions, such share options will vest according to the following schedule (the “Service Conditions”): (i) one-third of the options vest on the third anniversary of the grant date; (ii) one-third of the options vest on the fourth anniversary of the grant date; and (iii) one-third of the options vest on the fifth anniversary of the grant date. The Lavoro Share Plan has a term of five years: if the Market Conditions have not been satisfied within this year, all options granted under the Lavoro Share Plan will be extinguished, with no further payment or incentive obligation remaining due by Lavoro. The consummation of the SPAC Transaction (see note 1) did not satisfy the Market Conditions. As of February 28, 2023, the shareholders of Lavoro approved the Lavoro Share Plan. As a result, Lavoro reserved for issuance the number of ordinary shares equal to the number of Lavoro Share Plan Shares under the Lavoro Share Plan, as adjusted in accordance with the Business Combination Agreement, in an amount of 1,663,405 ordinary shares. The exercise price of the share-based payment is equal to the options price agreed with the employee in the contracts, representing the amount of $1 monetarily adjusted until the date on which the liquidity event occurs. The fair value of share options granted is estimated at the date of grant considering the terms and conditions using the Black-Scholes model, taking into account the terms and conditions on which the share options were granted. The model also takes into account historical and expected dividends, and the share price volatility of Lavoro. On May 26, 2023 the Board of Directors approved a long-term incentive plan (the “New Lavoro Equity Plan”) in which eligible participants may include members of our management, our employees and our directors. Beneficiaries under the New Lavoro Equity Plan will be granted equity awards pursuant to the terms and conditions of the New Lavoro Equity Plan and any applicable award agreement. The expense recognized for employee services received during the year and the number of options granted is shown in the following tables: Other capital reserves At June 30, 2022 — Share-based payments expense during the year 14,533 At June 30, 2023 14,533 Options granted At June 30, 2022 — Granted options 49,518,732 Canceled (3,800,000) At June 30, 2023 45,718,732 The weighted average fair value of the options granted during the period was $0.44 per option. The significant data included in the model were: weighted average share price of $2.88 on the grant date, exercise price presented above, volatility of 33.88%, no dividend yield, an expected option life of 3.37 years and a risk-free annual interest rate of 12.45%. Earnings per share Earnings (loss) per share is calculated by dividing the profit (loss) for the period attributable to net investment of the parent/equity holders of the parent by the weighted average number of common shares available during the fiscal year. Diluted earnings (loss) per share is calculated by adjusting the weighted average number of common shares, presuming the conversion of all the potential diluted common shares. The number of ordinary shares issued by Lavoro, as a result of the corporate reorganization is reflected retroactively, for purposes of calculating earnings per share in all prior periods presented. The table below show data used in calculating basic and diluted earnings (loss) per share attributable to the net investment of the parent/equity holders of the parent: 2023 2022 2021 Weighted average ordinary shares of Lavoro 113,602 113,602 113,602 Effects of dilution from: Share-based payment(i) 1,605 — — Number of ordinary shares adjusted for the effect of dilution 115,207 113,602 113,602 Profit (loss) for the period attributable to net investment of the parent/equity holders of the parent (260,710) 78,170 38,390 Basic earnings (loss) per share (2.29) 0.69 0.34 Diluted earnings (loss) per share (2.29) 0.69 0.34 ______________ (i) Based on the numbers of shares reserved by Lavoro Limited to the Lavoro Share Plan, as explained above. The Group reported a loss for the year ended June 30, 2023, accordingly the ordinary shares related to the share-based payment have a non-dilutive effect and therefore were not considered in the total number of shares outstanding to determine the diluted earnings (loss) per share. All public and private warrants are out of the money as of June 30, 2023; therefore, the approximately 6,012,085 and 4,071,507 public and private warrants, respectively, were not included in the calculation of the diluted earnings (loss) per share. Similarly, the 3,060,662 Founder Shares were not considered in the calculation of the diluted earnings (loss) per share due to the Group’s market share price. |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from contracts with customers [Abstract] | |
Revenue from contracts with customers | Advances from customers Advances from customers arise from the “Cash sale” modality, in which rural producers advance payments to the Group at the beginning of a harvest, before the billing of agricultural inputs. These advances are settled in the short term. (a) Movement in the year 2023 2022 2021 Balance as of the beginning of the year 320,560 509,403 218,699 Revenue recognized that was included in the contract liability balance at the beginning of the year (320,560) (509,403) (218,699) Increase in advances 427,463 301,963 390,809 Advances from acquired companies 61,115 18,597 118,594 Balance at the end of the year 488,578 320,560 509,403 Accounting policy Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue from the sale of agricultural inputs is recognized at the point in time when control of the product is transferred to the customer as follows: (i) Retail sales – Sale of products in retail locations, or delivered to the customers, including crop protection, fertilizers, seeds and specialty inputs; (ii) Grains – Sale of grains as a result of Barter transactions (Note 11); (iii) Private Label products – Products delivered to the client such as biological, special fertilizers and off-patent. When products are delivered to the customer revenue is recognized when the customer receives the product at the specified location. The Group engages third parties to provide freight services. The Group provides pulverization services. The Group recognizes revenues from these services when the customer receives and consumes the benefits provided to them, at the time the pulverization services take place. The Group generally acts as a principal as it has the primary responsibility for delivering the contracted goods, bears the inventory risk, and has discretion to establish the price. Revenue from contracts with customers is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. For sales of grains see Note 11. Sales prices are substantially based on international benchmark market prices, which are variable and subject to global supply and demand, and other market factors. There are no general warranties to the customers. Returns and incentives are estimated based on historical and forecasted data, contractual terms, and current conditions. Transportation costs are generally recovered from the customer through sales pricing and is included in cost of goods sold. Trade receivables usually include a significant financing component. As such, the transaction price is discounted, using the interest rate implicit in the contract (i.e., the interest rate that discounts the trade receivable amount to the cash selling price) and revenue is recognized for such amount. A significant financing component is recognized as financial income under the amortized cost method. The average monthly interest rate applied was 0.96% for June 2023 and 1% for June 2022 and 2021. Below is revenue from contracts with customers disaggregated by product line and geographic location: 2023 2022 2021 Inputs Retails sales Brazil 6,950,340 5,555,066 3,439,049 Colombia 1,145,520 1,066,548 758,423 8,095,860 6,621,614 4,197,472 Private Label products Crop Care 557,167 331,527 41,138 Grains (ii) Brazil 633,565 693,525 759,521 Colombia 33,360 21,780 30,251 666,925 715,305 789,772 Services Colombia 27,461 78,088 70,163 Total Revenues 9,347,413 7,746,534 5,098,545 Summarized by region Brazil 8,141,072 6,580,118 4,239,708 Colombia 1,206,341 1,166,416 858,837 __________________ (i) Sales between the Crop Care Cluster and the Brazil Cluster. (ii) As explained in Note 11, the Group receives grains from certain customers in exchange to the product sold. The fair value of such non-cash consideration received from the customer is included in the transaction price and measured when the Group obtains control of the grains. The Group estimates the fair value of the non-cash consideration by reference to its market price. |
Costs and expenses by nature
Costs and expenses by nature | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Disclosure of expenses by nature [text block] | Costs and expenses by nature Accounting policy (a) Cost of goods sold The cost of goods sold comprises the cost of purchases, net of rebates, discounts and commercial agreements received from suppliers, variations in inventories and logistics costs (inbound and outbound). The cost of goods sold includes the cost of the logistics operations managed or outsourced by the Group, including storage, handling and freight costs incurred until goods are ready to be sold. Trade payables include a significant financing component. As such, trade payables are discounted, using the interest rate implicit in the contract (i.e., the interest rate that discounts the trade payable amount to the purchase paid in cash) and inventory is recorded at such amount. A significant financing component is recognized as financial expense under the amortized cost method. The average monthly interest rate applied was 1.58% per month for June 2023 and 1.18% for June 2022 and 2021. (b) Sales, general and administrative expenses Sales, general and administrative expenses refer to indirect expenses and the cost of the corporate departments, information technology, treasury function, sales force personnel and marketing and advertising expenses. The breakdown of costs and expenses by nature is as follows: 2023 2022 2021 Cost of inventory (i) 7,519,405 6,368,444 4,357,001 Personnel expenses 628,222 485,643 286,086 Maintenance of the units 34,396 30,567 22,387 Consulting, legal and other services 118,610 118,056 67,836 Freight on sales 57,650 47,979 31,911 Commissions 52,040 33,874 42,447 Storage 7,613 5,363 8,425 Travel 33,543 23,605 18,444 Depreciation 16,408 9,697 5,717 Amortization of intangibles 67,927 57,607 29,717 Amortization of right-of-use assets 56,236 51,203 17,997 Taxes and fees 32,266 29,849 17,948 Short term rentals 22,365 11,733 20,525 Business events 9,333 4,893 1,951 Marketing and advertising 14,631 18,181 4,089 Insurance 7,679 3,395 2,877 Utilities 22,302 12,696 6,693 Allowance for expected credit losses 36,769 27,393 11,094 Losses and damage of inventories 19,127 23,339 9,808 Fuels and lubricants 29,527 23,705 4,373 Legal fees 4,336 7,025 3,208 SPAC bonuses (ii) 29,743 — — Other administrative expenditures 24,606 49,178 11,629 Total 8,844,734 7,443,425 4,982,163 Classified as: Cost of goods sold 7,616,606 6,421,037 4,362,657 Sales, general and administrative expenses 1,228,128 1,022,388 619,506 __________________ (i) Includes fair value on inventory sold from acquired companies, in the amounts of $26,914,$27,005 and $39,536 respectively for the years ended June 30, 2023, 2022 and 2021. |
Finance income (costs)
Finance income (costs) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Finance income (costs) | Finance income (costs) 2023 2022 2021 Finance income Interest from cash equivalents 8,241 8,703 2,461 Interest arising from revenue contracts 250,337 407,449 204,744 Foreign exchange differences — — 12,759 Gain on changes in fair value of derivative instruments 79,375 — — Gain on changes in fair value of commodity forward contracts — 9,200 6,337 Interest from tax benefit (see note 23) 27,153 — — Other 5,954 1,581 798 Total 371,060 426,933 227,099 Finance costs Interest on borrowings (319,557) (74,081) (33,971) Interest on leases (16,977) (13,217) (5,076) Interest on trade payables and acquisitions of subsidiary (508,351) (506,778) (256,122) Foreign exchange differences (15,232) (1,957) — Loss on changes in fair value of derivative instruments — (26,323) (4,883) Loss on fair value of commodity forward contracts (98,674) — — Other (15,608) (24,021) (12,840) Total (988,867) (646,377) (312,892) Finance costs, net (617,807) (219,444) (85,793) |
Other operating (expenses) inco
Other operating (expenses) income, net | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Other operating (expenses) income, net | Other operating (expenses) income, net 2023 2022 2021 Listing expense (ii) (319,554) — — Gain on bargain purchase (i) — 18,295 — Sales of fixed assets 2,071 8,592 3,914 Other operating income 41,674 29,872 11,704 Other operating income (expenses), net (275,810) 56,759 15,618 __________________ (i) Acquisition of Union. See note 21. (ii) This represents stock exchange listing service as a result of the SPAC Transaction. Refer to Note 22 for further discussion. |
Non-cash transactions
Non-cash transactions | 12 Months Ended |
Jun. 30, 2023 | |
Statement of cash flows [abstract] | |
Non-cash transactions | Non-cash transactions The Group carries out non-cash transactions which are not reflected in the statement of cash flows. The Group had non-cash transactions related to the acquisition of subsidiaries through the issuance of shares and accounts payable as described in Note 20. The Group had non-cash transactions related to the acquisition of non-controlling interest through the exchange of shares as described in Note 27. The Group had non-cash transaction related to the SPAC Transaction as described in Note 22. |
Subsequent events
Subsequent events | 12 Months Ended |
Jun. 30, 2023 | |
Events after reporting period [Abstract] | |
Subsequent events | Subsequent events • New financing transactions Subsequent to June 30, 2023, through the date of this annual report, certain of our Brazilian and Colombian subsidiaries entered into a number of financing agreements totaling an aggregate principal amount of $1,250.7 million with interest rates ranging from CDI Rate plus 1.80% to 3.04% and maturities ranging from October 2023 to September 2024 and COP$24,244.1 million with interest rates ranging from IBR Rate plus 3.20% to 5.60% and up to 16.60% at a fixed rate and maturities ranging from July 2024 to August 2028. These new financing transactions are in line with our business plan and reflect the seasonality of our business as the last quarter usually demands additional working capital. • Closing of Referencia acquisition On February 28, 2023, the Group entered into an agreement for the acquisition of a 70% interest in Referencia Agroinsumos LTDA., or “Referencia Agro.” The consideration transferred for the acquisition amounted $102,112 of which $67,112 was paid in cash on the closing date, and the remaining $35,000 will be paid in cash a year after the closing date. This acquisition was completed on July 31, 2023 and the Group currently owns a 66.57% interest. The following table summarizes the preliminary allocation of the consideration transferred as of July 29, 2022: Cash paid 67,112 Payable in installments 35,000 Fair value of consideration transferred 102,112 (-) Fair value of net assets acquired: Assets Cash and cash equivalents 8,249 Trade receivables 43,462 Inventories 81,972 Property, plant and equipment 1,504 Intangible 34,731 Other assets 8,157 178,076 Liabilities Borrowings 32,455 Trade payables 61,178 Other liabilities 42,205 135,838 Total identifiable net assets at fair value 42,238 Preliminary goodwill arising on acquisition 72,545 • Lavoro Limited Restricted Stock Unit Plan (“RSU Plan”) On August 16, 2023 and September 27, 2023, the board of directors of Lavoro (the “Board”) adopted the Lavoro Limited Restricted Stock Unit Plan (the “RSU Plan”), which provides for the grant of restricted stock units (“RSUs”) to participants identified by the Board. As of the date of the issuance of the consolidated financial statements, 1,634,852 RSUs have been granted, with each RSU entitling the holder to one share of Lavoro stock after the vesting period, as detailed below: Options granted Granted options 1,689,632 Canceled (92,556) 1,597,076 |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis for preparation of Consolidated financial statements -Predecessor method | Basis for preparation of consolidated financial statements -Predecessor method Lavoro became the Group’s legal holding company through the corporate reorganization described in Note 1 (b). Such corporate reorganization was recorded at book value since it is a transaction under common control. Under IFRS there is no specific guidance applicable to business combinations of entities under common control, as IFRS 3, excludes business combinations between such entities from its scope. Due to the lack of specific guidance the Group has established an accounting policy as required by IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors. In doing so, the Group considered guidance of other standards-setting bodies that use a similar conceptual framework to develop accounting standards as well as the accounting practices of entities subject to those standards such as the United States of America and the United Kingdom. As a result, the Group accounted for the corporate reorganizations using the predecessor method of accounting, and the consolidated financial statements are presented “as if” the historical consolidated operations of Lavoro Brazil, Crop Care and Lavoro Colombia were the predecessor of Lavoro. Under the predecessor method, the historical operations of the Group prior to the corporate reorganizations are deemed to be those of Lavoro. Thus, these consolidated financial statements reflect: • the historical operating results and financial position of Lavoro Brazil, Crop Care and Lavoro Colombia on a combined basis prior to the corporate reorganizations • the assets and liabilities of Lavoro Brazil, Crop Care and Lavoro Colombia at their historical cost; and • Lavoro’s earnings per share for all years presented. The number of ordinary shares issued by Lavoro, as a result of the corporate reorganization is reflected retroactively, for the purposes of calculating earnings per share in all prior years presented. The consolidated financial statements as of June 30, 2023 and 2022 and for the year ended June 30, 2023, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The consolidated financial statements have been prepared under the historical cost basis, except for financial assets and financial liabilities (including commodity forward contracts and derivative instruments) at fair value through profit or loss. The consolidated financial statements are presented in Brazilian reais (“BRL” or “R$”), which is the Group’s functional and presentation currency. All amounts are rounded to the nearest thousand (R$000), except when otherwise indicated. On October 31, 2023, the issuance of the consolidated financial statements was approved by the Group’s Board of Directors. |
Significant accounting judgments, estimates and assumptions | Significant accounting judgments, estimates and assumptions Use of critical accounting estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues, income, and expenses. These estimates are based on management’s experience and knowledge, information available at the reporting date and other factors, including expectations of future events that are believed to be reasonable under normal circumstances. Any changes in facts and circumstances may lead to a revision of these estimates. Actual results could differ from these estimates. The estimates and assumptions are revised on an ongoing basis. Revisions to estimates are recognized on a forward-looking basis. The significant estimates and judgments applied by the Group in the preparation of these consolidated financial statements are presented in the following notes: Note Significant estimates and judgments 11 Commodity forward contract 16 Impairment testing of non-financial assets 21 Business combination 22 SPAC Transaction 23 Deferred income taxes recoverability |
Basis of combination/consolidation procuedures | Basis of combination/consolidation procedures Lavoro’s fiscal year end is June 30. The consolidated financial statements are prepared for the same reporting periods, using consistent accounting policies. All unrealized intra-group and intercompany balances, transactions, gains and losses relating to transactions between group companies were eliminated in full. The consolidated financial statements include the following subsidiaries of Lavoro Limited: Equity interest Name Core activities Location 2023 2022 2021 Corporate: Lavoro Agro Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro America Inc. (i) Holding California - USA 100 % Lavoro Merger Sub II Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro Agro Cayman II (i) Holding George Town – Cayman Island 100 % — — Lavoro Latam SL (i) Holding Madrid - Spain 100 % — — Malinas S.A. (i) Holding Montevideu – Uruguay 100 % — — Lavoro Brazil: Lavoro Agro Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Lavoro Agrocomercial S.A. (viii) Distributor of agricultural inputs Rondonópolis – Brazil 97.42 % 97.42 % 91.65 % Agrocontato Comércio e Representações de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Sinop – Brazil 97.42 % 97.42 % 91.65 % PCO Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) (ii) (v) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 86.22 % — Produtiva Agronegócios Comércio e Representação Ltda. (v) Distributor of agricultural inputs Paracatu – Brazil 87.40 % 87.40 % — Facirolli Comércio e Representação S.A. (Agrozap) (v) Distributor of agricultural inputs Uberaba – Brazil 62.61%- 62.61 % — Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Central Agrícola Rural Distribuidora de Defensivos Ltda. (viii) Distributor of agricultural inputs Vilhena – Brazil 97.42 % 97.42 % 91.65 % Distribuidora Pitangueiras de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Ponta Grossa – Brazil 93.11 % 86.22 % 86.22 % Produtec Comércio e Representações S.A. (viii) Distributor of agricultural inputs Cristalina – Brazil 87.4 % 87.40 % 72.42 % Qualiciclo Agrícola S.A. (viii) Distributor of agricultural inputs Limeira – Brazil 66.75 % 61.00 % 61.00 % Desempar Participações Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Denorpi Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Deragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Desempar Tecnologia Ltda. (viii) Holding Palmeira – Brazil 93.11 % 86.20 % 86.20 % Futuragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Plenafértil Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Realce Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Cultivar Agrícola Comércio, Importação e Exportação S.A. (viii) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 63.47 % 63.47 % América Insumos Agrícolas Ltda. (iii) Distributor of agricultural inputs Sorriso – Brazil — 97.42 % 91.65 % Integra Soluções Agrícolas Ltda. (iv) Distributor of agricultural inputs Catalão – Brazil — 87.4 % 72.42 % Nova Geração (v) (viii) Distributor of agricultural inputs Pinhalzinho – Brazil 66.75 % 61.00 % — Floema Soluções Nutricionais de Cultivos Ltda. (v) Distributor of agricultural inputs Uberaba – Brazil 62.61 % — — Casa Trevo Participações S.A. (v) Holding Nova Prata – Brazil 79.14 % — — Casa Trevo Comercial Agrícola LTDA. (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — CATR Comercial Agrícola LTDA (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — Sollo Sul Insumos Agrícolas Ltda (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Dissul Insumos Agrícolas Ltda. (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais (vi) FIAGRO São Paulo – Brazil 5 % — — Lavoro Colômbia: Lavoro Colombia S.A.S. (viii) Holding Bogota – Colombia 94.90 % 94.90 % — Crop Care Colombia (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agricultura y Servicios S.A.S. (viii) Distributor of agricultural inputs Ginebra - Colombia 94.90 % 94.90 % 97.61 % Fertilizantes Liquidos y Servicios S.A.S. (vii) Distributor of agricultural inputs Cali - Colombia — — 97.61 % Grupo Cenagro S.A.S. (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Cenagral S.A.S (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Grupo Gral S.A.S. (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agrointegral Andina S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Servigral Praderas S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Agroquímicos para la Agricultura Colombiana S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Provecampo S.A.S. (v) Distributor of agricultural inputs Envigado – Colombia 94.90 % — — Crop Care: Crop Care Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Perterra Insumos Agropecuários S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Araci Administradora de Bens S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Union Agro S.A. (v) Private label products Pederneiras – Brazil 73 % 73.00 % - Agrobiológica Sustentabilidade S.A. Private label products São Paulo – Brazil 65.13 % 65.13 % 65.13 % Agrobiológica Soluções Naturais Ltda. Private label products Leme – Brazil 65.13 % 65.13 % 65.13 % Cromo Indústria Química LTDA. (v) Private label products Estrela - Brasil 70 % — — Perterra Trading S.A. Private label products Montevideu - Uruguay 100 % 100 % — ___________________ (i) Refers to entities of the reorganization, see note 1.b (ii) Agrovenci Distribuidora de Insumos Agrícolas Ltda. was incorporated in August 2021. (iii) América Insumos Agrícolas Ltda. was merged with another entity within the Group in November 2022. (iv) Integra Soluções Agrícolas Ltda. was merged with another entity within the Group in May 2023. (v) See note 21 of Acquisitions of subsidiaries. (vi) Lavoro Agro Fundo de Investimentos nas Cadeias Produtivas Agroindustriais - Direitos Creditórios was incorporated in July 2022. (see Note 19). (vii) Fertilizantes Liquidos y Servicios S.A.S. was merged with another entity within the Group in May 2022. (viii) Changes in non-controlling interests were described in note 27 of Equity. |
New accounting standards, interpretations and amendments adopted started July 1, 2022, New accounting standards, interpretations and amendments issued but not yet effective | New accounting standards, interpretations and amendments adopted starting July 1, 2020: The following new accounting standards, interpretations and amendments were adopted starting July 1, 2020: • Reference to the Conceptual Framework – Amendments to IFRS 3; • Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16; • IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time Adopter; • IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities; • IAS 41 Agriculture – Taxation in fair value measurements; and • Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37. The adoption of these new standards and interpretations did not have a material effect on the consolidated financial statements. (b) New accounting standards, interpretations and amendments issued but not yet effective Some accounting standards and interpretations have been issued, but are not yet effective. The Group has not early adopted any of these standards and does not expect these standards to have a material impact on the financial statements in subsequent periods. New and amended standards and interpretations issued, but not yet effective up to the date of the issuance of the Group’s consolidated financial statements are as follows: • Amendments to IAS 1: Classification of Liabilities as Current or Non-current; • Definition of Accounting Estimates - Amendments to IAS 8; • Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12: requires the recognition of deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. It will apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities. The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. The Group intends to adopt these new standards, amendments and interpretations, if applicable, when they become effective; and the Group does not expect them to have a material impact on the financial statements, except for the Amendment to IAS 12, which the Group is currently evaluating. |
Foreign currency | Foreign currency (i) Functional currency and presentation The consolidated financial statements are presented in Brazilian reais (“R$”), which is the Group’s functional currency. The Group determines the functional currency of each of the consolidated entities. Items included in the financial statements of each entity are measured using that functional currency. The functional currency for the majority of the Group’s entities is the Brazilian real. (Brazil Cluster and Crop Care Cluster – see Note 4), except for the companies in Colombia, whose functional currency is the Colombian peso (COP$). For consolidation, the operations in Colombia are translated into Brazilian reais, as follows: (i) Assets and liabilities are translated into Reais at the closing exchange as of the reporting date; (ii) Profit or loss items are translated at the average monthly exchange rate; and (iii) Exchange differences arising on translation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising from the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange as of the reporting date. (ii) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. |
Statement of cash flow | Statement of cash flows In 2023, cash outflows related to acquisitions of non-controlling interests are classified under net cash flows provided by financing activities and interest paid on acquisitions of subsidiary is classified under net cash flows from (used in) operating activities. In 2022 and 2021, both amounts were classified under net cash flows used in investing activities. While the effect of the change in classification of those cash flows from investing to financing and operating activities is not material, management has retrospectively revised those periods for comparison purposes. |
Cash equivalents | Cash equivalents are comprised of short-term highly liquid investments with a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. |
Trade receivables | Trade receivables Accounting policy Trade receivables correspond to amounts receivable from customers for the sale of goods or services in the ordinary course of the Group’s business. A receivable is recognized if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in Note 7. 2023 2022 Trade receivables (Brazil) 2,525,845 1,639,637 Trade receivables (Colombia) 370,767 345,830 (-) Allowance for expected credit losses (188,072) (151,114) Total 2,708,540 1,834,353 Current 2,667,057 1,794,602 Non-current 41,483 39,751 The average effective interest rate used to discount trade receivables for the year ended June 30, 2023 was 0.96% per month (1.00% as of June 30, 2022). The Group does not have any customer that represents more than 10% of its trade receivables or revenues. As of June 30, 2023, the Group also transferred trade receivables to the FIAGRO in the amount of $167,278. There were no trade receivables transferred as of June 30, 2022. As the Group has retained the risks and rewards of ownership, these amounts were not derecognized from trade receivables. Consequently, the liability resulting from these operations is recorded as obligations to FIAGRO quota holders (note 19). Allowance for expected credit losses 2023 2022 2021 Opening balance (151,114) (111,969) (89,173) Increase in allowance (36,769) (27,393) (11,094) Allowance for credit losses from acquisitions (11,702) (16,274) (12,623) Trade receivables write-off 9,500 3,492 3,058 Exchange rate translation adjustment 2,013 1,030 (2,137) Ending balance (i) (188,072) (151,114) (111,969) __________________ (i) The credit risk of the Group is described in note 8.b. The aging analysis of trade receivables is as follow: 2023 2022 Not past due 2,089,543 1,534,224 Overdue 1 to 60 days 169,556 93,436 61 to 180 days 359,958 240,320 181 to 365 days 90,734 7,157 Over 365 days 186,821 110,398 Allowance for expected credit losses (188,072) (151,182) 2,708,540 1,834,353 |
Financial instruments | Initial recognition and measurement (i) Financial assets Financial assets are classified, at initial recognition, and subsequently measured at amortized cost or fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortized cost, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows. Subsequent measurement For purposes of subsequent measurement, Group’s financial assets are classified in following categories: • Financial assets at amortized cost • Financial assets at fair value through profit or loss Financial assets at amortized cost Financial assets at amortized cost are subsequently measured using the effective interest method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. Derecognition A financial asset is primarily derecognized when the rights to receive cash flows from the asset have expired. Impairment The Group recognizes an allowance for expected credit losses for trade receivables, which is the only debt instrument not held at fair value through profit or loss. (ii) Financial liabilities: The Group classifies its financial liabilities in the following categories: (i) measured at amortized cost and (ii) fair value through profit or loss. Financial liabilities classified as fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as fair value through profit or loss. Financial liabilities are derecognized when contractual obligations are withdrawn, canceled, or expired. The difference between the extinguished book value and the consideration paid (including transferred assets or assumed liabilities) is recognized in the statement of income. |
Inventories | Inventories are valued at the lower of cost and net realizable value. The costs of individual items of inventory are determined using weighted average costs less any losses, when applicable. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion (when applicable) and the estimated costs necessary to make the sale. An inventory loss is recognized for inventories that are close to their expiration date and there is no expectation that they will be sold. |
Right-of-use assets and lease liabilities | The Group leases commercial buildings for its administrative functions, retail stores, equipment, and vehicles. In general, lease agreements have a term of three years to eight years, but they may include extension options. Lease terms are individually negotiated and contain differentiated terms and conditions. The lease contracts do not contain restrictive clauses, but the leased assets cannot be used as collateral for loans. Right of use assets: The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of ease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: Vehicles 3.4 years Buildings 4.9 years Machines and equipment 3 years Lease liabilities: At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include: • fixed payments (including fixed payments in essence, less any incentives from • amounts expected to be paid by the lessee in accordance with residual value guarantees; • payments of fines for lease termination if the lease term reflects the lessee exercising the option to terminate the lease. Lease payments are discounted using the lessee's incremental borrowing rate, which is the rate a lessee would have to pay on a loan to obtain the funds necessary to acquire an asset of similar value in a similar economic environment with equivalent terms and conditions. In determining the incremental borrowing rate, the Group: • whenever possible, uses as a starting point rates from recent financing contracts third-party financing, adjusted to reflect changes in financing conditions since such third-party financing was received; • uses a progressive approach that starts from a risk-free interest rate adjusted for credit risk • uses a progressive approach that takes a risk-free interest rate adjusted for credit risk for leases held by the Group with no recent third-party financing; and • makes specific adjustments to the rate, such as to term, country, currency and collateral. Lease payments are allocated between principal and finance expense. Finance expense is recognized in the statement of profit or loss over the lease term to produce a constant periodic rate of interest on the remaining balance of the liability for each year. Payments associated with short-term leases of equipment and vehicles and all and leases of low-value assets are recognized as incurred as an expense in income statement. Short-term leases are those with a term of 12 months or less. Low-value assets include IT equipment, small items of office furniture and other contracts of small value. |
Property, plant and equipment | Items of property, plant and equipment are measured at historical cost of acquisition or construction, less accumulated depreciation. When significant parts of an item of property, plant and equipment have different useful lives, they are recorded as separate items (major components) of property, plant and equipment. Any gains and losses on the disposal of an item of property, plant and equipment are recognized in the statement of profit or loss. Subsequent costs are capitalized only when it is probable that future economic benefits associated with the expenditure will be earned by the Group. Depreciation is calculated and its residual values estimated, using the straight-line method based on the estimated useful lives of the items. Depreciation is recognized in the statement of profit or loss. Land is not depreciated. The estimated useful lives of property, plant and equipment are as follows: Vehicles 5 years Building and Improvements 25 years Machines, equipment and facilities 10 years Furnitures and fixtures 10 years Computer equipments 5 years The Group uses an estimated useful life of the assets to depreciate property, plant and equipment. At the end of each fiscal year, this estimate is reviewed and, if necessary, adjusted prospectively. An asset's carrying amount is written down immediately to its recoverable amount when the asset's carrying amount is higher than its estimated recoverable value. Gains and losses on disposals are determined by comparing the proceeds from the sale with the carrying amount and are recognized under "Other (expenses) income, net" in the statement of profit or loss. |
Intangible assets | Intangible assets are recorded at acquisition cost or at the fair value of intangible assets acquired in a business combination and, for finite useful life intangibles, less accumulated amortization calculated using the straight-line method. These intangible assets have useful lives defined based on the useful economic life. The goodwill arising on a business combination is initially measured as the excess of the consideration transferred over the fair value of the net assets acquired (net identifiable assets acquired and liabilities assumed). Subsequent to initial recognition, goodwill is measured at cost, less any accumulated impairment losses, as described in Note 16. The useful lives and methods of amortization of intangibles are reviewed at each balance sheet date and adjusted prospectively, if appropriate. The estimated useful lives of intangible assets for the years ended June 30, 2023 and 2022 are as follows: Customer relationship 9 years Purchase contacts 4 years Software and other 5 years An intangible asset is derecognized upon disposal or when no future economic benefits are expected, and any gain or loss is recognized in the statement of profit or loss when the asset is derecognized. |
Impairment of assets | The carrying amount of the Group’s non-financial assets are reviewed at each reporting date to assess whether there is an indication of impairment. This indication may be due to internal factors arising from the operational efficiency of the assets or external factors due to the macroeconomic scenario and the behavior of the commodity prices and the U.S. dollar. If there is such indication, the recoverable amount of the asset is estimated. The recoverable amount of an asset is defined as the higher of the fair value of the asset and the value in use of its CGU, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and a provision for impairment is recognized to adjust the carrying amount to its recoverable amount. In assessing value in use, the estimated future cash flow is discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired asset, when applicable. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized, except in the case of goodwill that cannot be reversed in future periods. The Group assessed its business segments by grouping the assets of each region into independent cash-generating units (“CGUs”), which represent the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Critical accounting estimates and judgments The Group determines its cash flows based on the budgets approved by its management, which use the following assumptions: (i) revenue growth rate (ii) margins applied to the cost of sale of its products; and (iii) discount rates that reflect specific risks of each CGU. These assumptions are subject to risks and uncertainties. Therefore, it is possible that changes in circumstances may alter these projections, which may affect the recoverable amount of the assets. |
Trade payables | Trade payables related to the purchase of goods for resale of agricultural inputs are financial liabilities (see Note 7) initially recognized at fair value and subsequently stated at amortized cost using the effective interest rate method. |
Borrowings | Borrowings are financial liabilities initially recognized at fair value, net of transaction costs incurred in the transaction and are subsequently stated at amortized cost.Any difference between the borrowed amounts (net of transaction costs) and total payments is recognized in the statement of profit or loss over the year during which the borrowings are outstanding using the effective interest rate method. |
Acquisition of subsidiaries | The acquisition method is used to account for each business combination carried out by the Group, which consists of the following: • Determining the acquisition date; • Determining the acquirer and the acquiree; • Determining the consideration transferred for the acquisition of control; • Determining the fair value of separately identifiable assets and liabilities; and • Determining the residual goodwill or gain on bargain purchase. The acquisition date is typically the date on which the Group assumes the control of the business. Consideration transferred is measured at the acquisition date at the fair value of the assets transferred, including cash, the liabilities incurred, and the equity instruments issued by the Group at the acquisition date. For each business combination, the Group measures the non-controlling interests in the acquiree based on its share of the subsidiary’s identifiable net assets. Acquisition-related costs are expensed as incurred. When the Group acquires a business, it assesses the fair value of the assets and liabilities assumed in order to allocate them according to the contractual terms, economic circumstances and pertinent conditions at the acquisition date. Any contingent consideration to be transferred by the acquirer is recognized at the acquisition date fair value. Subsequent changes in the fair value of the contingent consideration, considered an asset or a liability, shall be recognized in accordance with IFRS 9 Financial Instruments, in the statement of profit or loss. Goodwill or a gain on bargain purchase is the difference between the fair value of the assets acquired and liabilities assumed, and the consideration transferred. When the consideration transferred is higher than the fair value of the net assets acquired goodwill is recognized for the difference, and it is subsequently tested for impairment. When the consideration transferred is lower that the fair value of net assets acquired, a gain on bargain purchase is recognized in the statement of profit or loss. Intangible assets recognized within the scope of a business combination are accounted for in accordance with the accounting policy described in Note 15. Critical accounting estimates and judgments Accounting for business combination requires the Group to exercise critical judgment in determining the fair value of the assets and liabilities of the businesses being acquired. Accordingly, the Group makes certain assumptions about future conditions that are uncertain, including future commodity prices, interest rates, inflation and weather conditions. Changes in some of these assumptions may impact the Group’s business and expected results may differ materially from the estimated amounts at the acquisition date. The Group entered into several agreements to acquire groups of companies to expand its business into new markets or territories, add additional facilities, bolster its competitive edge, or acquire and access new technologies and skillsets. |
SPAC Policy | Critical accounting estimates and judgments Accounting of SPAC transaction is considered a critical accounting estimate primarily due to the complex nature of the transaction, including the determination the accounting acquirer and assess it as a corporate reorganization, the calculation of the listing expenses and the determination of the accounting treatment of the financial instruments. Changes in some of these assumptions could impact the consolidated financial statements. |
Income taxes | Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Income taxes in Brazil and Colombia are paid by each legal entity on a stand alone basis. (b) Deferred tax Deferred taxes is provided using the liability method on temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred tax liabilities are recognized for all taxable temporary differences, except: • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; • With respect to taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except: • When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss • In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. In assessing the recoverability of deferred tax assets, the Group relies on the same forecast assumptions used elsewhere in the financial statements and in other management reports. The benefits of uncertain tax positions are recorded only after determining, based on the position of its internal and external legal advisors, a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Critical accounting estimates and judgments Significant judgements, estimates and assumptions are required to determine the amount of deferred tax assets that are recognized based on the likely timing and future taxable profits. Deferred tax assets arising from tax losses carryforward and temporary differences are recognized considering assumptions and projected cashflows. Deferred tax assets may be affected by factors including, but not limited to: (i) internal assumptions on the projected taxable income, which are based on sales planning, operational costs and planned capital costs; (ii) macroeconomic environment; and (iii) trade and tax scenarios. The Group applies significant judgement in identifying uncertainties over income tax treatments, which could impact the consolidated financial statements. The Group operates in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. The Group and its subsidiaries are subject to reviews of income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of the applicable laws and regulations. |
Revenue | Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue from the sale of agricultural inputs is recognized at the point in time when control of the product is transferred to the customer as follows: (i) Retail sales – Sale of products in retail locations, or delivered to the customers, including crop protection, fertilizers, seeds and specialty inputs; (ii) Grains – Sale of grains as a result of Barter transactions (Note 11); (iii) Private Label products – Products delivered to the client such as biological, special fertilizers and off-patent. When products are delivered to the customer revenue is recognized when the customer receives the product at the specified location. The Group engages third parties to provide freight services. The Group provides pulverization services. The Group recognizes revenues from these services when the customer receives and consumes the benefits provided to them, at the time the pulverization services take place. The Group generally acts as a principal as it has the primary responsibility for delivering the contracted goods, bears the inventory risk, and has discretion to establish the price. Revenue from contracts with customers is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. For sales of grains see Note 11. |
Cost of goods sold | Cost of goods soldThe cost of goods sold comprises the cost of purchases, net of rebates, discounts and commercial agreements received from suppliers, variations in inventories and logistics costs (inbound and outbound). The cost of goods sold includes the cost of the logistics operations managed or outsourced by the Group, including storage, handling and freight costs incurred until goods are ready to be sold. Trade payables include a significant financing component. As such, trade payables are discounted, using the interest rate implicit in the contract (i.e., the interest rate that discounts the trade payable amount to the purchase paid in cash) and inventory is recorded at such amount. A significant financing component is recognized as financial expense under the amortized cost method. |
Sales, general and administrative expenses | Sales, general and administrative expensesSales, general and administrative expenses refer to indirect expenses and the cost of the corporate departments, information technology, treasury function, sales force personnel and marketing and advertising expenses. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Equity Interests of Subsidiaries | The consolidated financial statements include the following subsidiaries of Lavoro Limited: Equity interest Name Core activities Location 2023 2022 2021 Corporate: Lavoro Agro Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro America Inc. (i) Holding California - USA 100 % Lavoro Merger Sub II Limited (i) Holding George Town – Cayman Island 100 % — — Lavoro Agro Cayman II (i) Holding George Town – Cayman Island 100 % — — Lavoro Latam SL (i) Holding Madrid - Spain 100 % — — Malinas S.A. (i) Holding Montevideu – Uruguay 100 % — — Lavoro Brazil: Lavoro Agro Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Lavoro Agrocomercial S.A. (viii) Distributor of agricultural inputs Rondonópolis – Brazil 97.42 % 97.42 % 91.65 % Agrocontato Comércio e Representações de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Sinop – Brazil 97.42 % 97.42 % 91.65 % PCO Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) (ii) (v) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 86.22 % — Produtiva Agronegócios Comércio e Representação Ltda. (v) Distributor of agricultural inputs Paracatu – Brazil 87.40 % 87.40 % — Facirolli Comércio e Representação S.A. (Agrozap) (v) Distributor of agricultural inputs Uberaba – Brazil 62.61%- 62.61 % — Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. (viii) Distributor of agricultural inputs Campo Verde – Brazil 97.42 % 97.42 % 91.65 % Central Agrícola Rural Distribuidora de Defensivos Ltda. (viii) Distributor of agricultural inputs Vilhena – Brazil 97.42 % 97.42 % 91.65 % Distribuidora Pitangueiras de Produtos Agropecuários S.A. (viii) Distributor of agricultural inputs Ponta Grossa – Brazil 93.11 % 86.22 % 86.22 % Produtec Comércio e Representações S.A. (viii) Distributor of agricultural inputs Cristalina – Brazil 87.4 % 87.40 % 72.42 % Qualiciclo Agrícola S.A. (viii) Distributor of agricultural inputs Limeira – Brazil 66.75 % 61.00 % 61.00 % Desempar Participações Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Denorpi Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Deragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Desempar Tecnologia Ltda. (viii) Holding Palmeira – Brazil 93.11 % 86.20 % 86.20 % Futuragro Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Plenafértil Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Realce Distribuidora de Insumos Agrícolas Ltda. (viii) Distributor of agricultural inputs Palmeira – Brazil 93.11 % 86.20 % 86.20 % Cultivar Agrícola Comércio, Importação e Exportação S.A. (viii) Distributor of agricultural inputs Chapadão do Sul – Brazil 93.11 % 63.47 % 63.47 % América Insumos Agrícolas Ltda. (iii) Distributor of agricultural inputs Sorriso – Brazil — 97.42 % 91.65 % Integra Soluções Agrícolas Ltda. (iv) Distributor of agricultural inputs Catalão – Brazil — 87.4 % 72.42 % Nova Geração (v) (viii) Distributor of agricultural inputs Pinhalzinho – Brazil 66.75 % 61.00 % — Floema Soluções Nutricionais de Cultivos Ltda. (v) Distributor of agricultural inputs Uberaba – Brazil 62.61 % — — Casa Trevo Participações S.A. (v) Holding Nova Prata – Brazil 79.14 % — — Casa Trevo Comercial Agrícola LTDA. (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — CATR Comercial Agrícola LTDA (v) Distributor of agricultural inputs Nova Prata – Brazil 79.14 % — — Sollo Sul Insumos Agrícolas Ltda (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Dissul Insumos Agrícolas Ltda. (v) Distributor of agricultural inputs Pato Branco – Brazil 93.11 % — — Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais (vi) FIAGRO São Paulo – Brazil 5 % — — Lavoro Colômbia: Lavoro Colombia S.A.S. (viii) Holding Bogota – Colombia 94.90 % 94.90 % — Crop Care Colombia (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agricultura y Servicios S.A.S. (viii) Distributor of agricultural inputs Ginebra - Colombia 94.90 % 94.90 % 97.61 % Fertilizantes Liquidos y Servicios S.A.S. (vii) Distributor of agricultural inputs Cali - Colombia — — 97.61 % Grupo Cenagro S.A.S. (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Cenagral S.A.S (v) Distributor of agricultural inputs Yumbo – Colombia 94.90 % 94.90 % — Grupo Gral S.A.S. (viii) Distributor of agricultural inputs Bogota - Colombia 94.90 % 94.90 % 100 % Agrointegral Andina S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Servigral Praderas S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Agroquímicos para la Agricultura Colombiana S.A.S. (viii) Distributor of agricultural inputs Bogota – Colombia 94.90 % 94.90 % 100 % Provecampo S.A.S. (v) Distributor of agricultural inputs Envigado – Colombia 94.90 % — — Crop Care: Crop Care Holding S.A. Holding São Paulo – Brazil 100 % 100 % 100 % Perterra Insumos Agropecuários S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Araci Administradora de Bens S.A. Private label products São Paulo – Brazil 100 % 100 % 100 % Union Agro S.A. (v) Private label products Pederneiras – Brazil 73 % 73.00 % - Agrobiológica Sustentabilidade S.A. Private label products São Paulo – Brazil 65.13 % 65.13 % 65.13 % Agrobiológica Soluções Naturais Ltda. Private label products Leme – Brazil 65.13 % 65.13 % 65.13 % Cromo Indústria Química LTDA. (v) Private label products Estrela - Brasil 70 % — — Perterra Trading S.A. Private label products Montevideu - Uruguay 100 % 100 % — ___________________ (i) Refers to entities of the reorganization, see note 1.b (ii) Agrovenci Distribuidora de Insumos Agrícolas Ltda. was incorporated in August 2021. (iii) América Insumos Agrícolas Ltda. was merged with another entity within the Group in November 2022. (iv) Integra Soluções Agrícolas Ltda. was merged with another entity within the Group in May 2023. (v) See note 21 of Acquisitions of subsidiaries. (vi) Lavoro Agro Fundo de Investimentos nas Cadeias Produtivas Agroindustriais - Direitos Creditórios was incorporated in July 2022. (see Note 19). (vii) Fertilizantes Liquidos y Servicios S.A.S. was merged with another entity within the Group in May 2022. (viii) Changes in non-controlling interests were described in note 27 of Equity. |
Summary of significant accoun_2
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Disclosure Of Retrospective Changes For Cash Flows | The retrospective changes in the comparative periods can be summarized as follows: 2022 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (213,212) 14,907 (198,305) Acquisition of non-controlling interests (34,351) 34,351 — Net cash flows used in investing activities (293,951) 49,258 (244,693) Acquisition of non-controlling interests — (34,351) (34,351) Net cash flows provided by financing activities 333,470 (34,351) 299,119 Interest paid on acquisition of subsidiary — (14,907) (14,907) Net cash flows from operating activities (244,564) (14,907) (259,471) 2021 Originally presented Effects of Change in classification After change in classification Acquisition of subsidiary, net of cash acquired (283,171) 2,797 (280,374) Acquisition of non-controlling interests (79,493) 79,493 — Net cash flows used in investing activities (393,362) 82,290 (311,072) Acquisition of non-controlling interests — (79,493) (79,493) Net cash flows provided by financing activities 640,499 (79,493) 561,006 Interest paid on acquisition of subsidiary — (2,797) (2,797) Net cash flows from (used) in operating activities 53,824 (2,797) 51,027 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments | Financial information by segment Segment assets and liabilities as of June 30, 2023: Description Brazil LATAM Crop Care Total reportable segments Corporate (i) Eliminations between Consolidated Certain assets Cash equivalents 207,744 22,003 95,585 325,332 238,962 — 564,294 Trade receivables 2,194,853 343,745 242,391 2,780,989 — (72,449) 2,708,540 Inventories 1,547,384 202,239 151,289 1,900,912 — (32,708) 1,868,204 Advances to suppliers 176,831 2,266 13,088 192,185 — (66) 192,119 Total assets 5,926,380 683,894 680,294 7,290,568 449,779 (216,363) 7,523,984 Certain liabilities Trade payables 2,304,043 309,828 46,506 2,660,377 455 (56,427) 2,604,405 Borrowings 824,869 71,562 69,045 965,475 — — 965,475 Advances from customers 478,313 7,020 3,245 488,578 — — 488,578 Total liabilities and equity 5,926,380 683,894 680,294 7,290,568 449,779 (216,361) 7,523,984 __________________ (i) Corporate items refer to balances and expenses with certain corporate demands not directly related to any operating segment. (ii) Transactions between the Crop Care segment and the Brazil segment. Statement of profit or loss data for the year ended June 30, 2023: Description Brazil LATAM Crop Care Total reportable segments Corporate (i) Eliminations between Consolidated Revenue 7,829,305 1,206,341 632,819 9,668,465 — (321,052) 9,347,413 Cost of goods sold (6,543,315) (1,009,721) (351,914) (7,904,950) — 288,344 (7,616,606) Sales, general and administrative expenses (iii) (951,888) (120,936) (151,741) (1,224,565) (3,563) — (1,228,128) Other operating income, net 48,135 (1,640) 1,511 48,006 (323,816) — (275,810) Financial (costs) income (525,056) (15,371) (48,415) (588,842) (28,965) — (617,807) Income taxes 208,331 (22,263) (24,932) 161,136 — 11,120 172,256 Profit (loss) for the year 65,512 36,410 57,328 159,250 (356,344) (21,588) (218,682) Depreciation and amortization (142,139) (11,792) (13,555) (167,486) — — (167,486) __________________ (i) Corporate items refer to balances and expenses with certain corporate demands not directly related to any operating segment. (ii) Sales between the Crop Care segment and the Brazil segment. (iii) Sales, general and administrative expenses include depreciation and amortization Segment assets and liabilities as of June 30, 2022: Description Brazil LATAM Crop Care Total reportable segments Eliminations between Combined Certain assets Cash equivalents 195,343 16,951 42,119 254,413 — 254,413 Trade receivables 1,379,808 324,152 170,868 1,874,828 (40,475) 1,834,353 Inventories 1,451,541 174,532 122,968 1,749,041 — 1,749,041 Advances to suppliers 354,163 1,202 30,799 386,164 (2,907) 383,257 Total assets 4,602,679 619,238 508,331 5,730,248 (44,485) 5,685,763 Certain liabilities Trade payables 1,988,518 311,612 42,035 2,342,165 (40,465) 2,301,700 Borrowings 588,403 39,755 82,394 710,552 — 710,552 Advances from customers 318,404 164 3,502 322,070 (1,510) 320,560 Total liabilities and equity 4,602,679 619,238 508,331 5,730,248 (44,485) 5,685,763 __________________ (i) Transactions between the Crop Care segment and the Brazil segment. Statement of profit or loss data for the year ended June 30, 2022: Description Brazil LATAM Crop Care Total reportable segments Eliminations between Combined Revenue 6,351,223 1,166,415 332,239 7,849,877 (103,343) 7,746,534 Cost of goods sold (5,336,991) (975,756) (211,633) (6,524,380) 103,343 (6,421,037) Sales, general and administrative expenses (ii) (809,144) (120,902) (92,342) (1,022,388) (1,022,388) Other operating income, net 42,608 (6,081) 20,232 56,759 56,759 Financial (costs) income (217,277) (9,639) 7,472 (219,444) (219,444) Income taxes 3,973 (20,865) (15,770) (32,662) (32,662) Profit for the year 34,392 33,172 40,198 107,762 107,762 Depreciation and amortization (127,674) (11,295) (6,543) (145,512) (145,512) __________________ (i) Sales between the Crop Care segment and the Brazil segment. (ii) Sales, general and administrative expenses include depreciation and amortization Statement of profit or loss data for year ended June 30, 2021: Description Brazil LATAM Crop Care Total reportable segments Eliminations between Combined Revenue 4,198,570 858,837 46,850 5,104,257 (5,712) 5,098,545 Cost of goods sold (3,653,813) (704,738) (9,818) (4,368,369) 5,712 (4,362,657) Sales, general and administrative expenses (ii) (476,578) (101,081) (41,847) (619,506) — (619,506) Other operating income, net 13,363 184 2,071 15,618 — 15,618 Financial (costs) income (68,772) (13,524) (3,497) (85,793) — (85,793) Income taxes (8,412) (15,538) (726) (24,676) — (24,676) Profit for the year 4,358 24,140 (6,967) 21,531 — 21,531 Depreciation and amortization (85,518) (4,519) (2,930) (92,966) — (92,966) _____________ (i) Sales between the Crop Care segment and the Brazil segment. (ii) Sales, general and administrative expenses include depreciation and amortization |
Cash equivalents (Tables)
Cash equivalents (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Cash equivalents [abstract] | |
Disclosure Of Detailed Information About Cash Equivalents | Annual yield 2023 2022 Cash equivalents (R$) 77% CDI (i) 304,292 237,462 Cash equivalents (COP) 13.25% DTF(ii) 22,003 16,951 Cash equivalents (US$) 3.65% a year (iii) 237,999 — Total cash equivalents 564,294 254,413 __________________ (i) Represents the Brazilian interbank deposit rate, which is an average of the overnight interbank rates in Brazil (the "CDI"). (i) Colombian investment rate, which is an average of interbank and corporate finance ("DTF"). |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts receivable | 2023 2022 Trade receivables (Brazil) 2,525,845 1,639,637 Trade receivables (Colombia) 370,767 345,830 (-) Allowance for expected credit losses (188,072) (151,114) Total 2,708,540 1,834,353 Current 2,667,057 1,794,602 Non-current 41,483 39,751 |
Disclosure of allowance for expected credit losses | Allowance for expected credit losses 2023 2022 2021 Opening balance (151,114) (111,969) (89,173) Increase in allowance (36,769) (27,393) (11,094) Allowance for credit losses from acquisitions (11,702) (16,274) (12,623) Trade receivables write-off 9,500 3,492 3,058 Exchange rate translation adjustment 2,013 1,030 (2,137) Ending balance (i) (188,072) (151,114) (111,969) __________________ (i) The credit risk of the Group is described in note 8.b. |
Disclosure of aging analysis of trade receivables | The aging analysis of trade receivables is as follow: 2023 2022 Not past due 2,089,543 1,534,224 Overdue 1 to 60 days 169,556 93,436 61 to 180 days 359,958 240,320 181 to 365 days 90,734 7,157 Over 365 days 186,821 110,398 Allowance for expected credit losses (188,072) (151,182) 2,708,540 1,834,353 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of financial liabilities | The Group’s financial instruments were classified according to the following categories: 2023 Amortized cost Fair value through profit or loss Assets: Trade receivables 2,708,540 — Commodity forward contracts — 114,861 Derivative financial instruments — 40,410 Restricted cash 139,202 — Total 2,847,742 155,271 Liabilities: Trade payables 2,578,248 — Lease liabilities 184,419 — Borrowings 965,475 — Obligations to FIAGRO quota holders 150,018 — Payables for the acquisition of subsidiaries 275,209 — Derivative financial instruments — 44,008 Salaries and social charges 223,376 Commodity forward contracts — 207,067 Dividends payable 1,619 — Warrant liabilities — 36,446 Liability for FPA Shares 139,133 — Total 4,517,497 287,521 2022 Amortized cost Fair value through profit or loss Assets: Trade receivables 1,834,353 — Commodity forward contracts — 32,800 Derivative financial instruments — 7,677 Restricted cash 1,344 — Total 1,835,697 40,477 Liabilities: Trade payables 2,301,700 — Lease liabilities 155,253 — Borrowings 710,552 — Payables for the acquisition of subsidiaries 164,431 — Derivative financial instruments — 7,121 Salaries and social charges 187,285 - Commodity forward contracts — 27,038 Dividends payable 411 — Total 3,519,632 34,159 |
Disclosure of financial assets | The Group’s financial instruments were classified according to the following categories: 2023 Amortized cost Fair value through profit or loss Assets: Trade receivables 2,708,540 — Commodity forward contracts — 114,861 Derivative financial instruments — 40,410 Restricted cash 139,202 — Total 2,847,742 155,271 Liabilities: Trade payables 2,578,248 — Lease liabilities 184,419 — Borrowings 965,475 — Obligations to FIAGRO quota holders 150,018 — Payables for the acquisition of subsidiaries 275,209 — Derivative financial instruments — 44,008 Salaries and social charges 223,376 Commodity forward contracts — 207,067 Dividends payable 1,619 — Warrant liabilities — 36,446 Liability for FPA Shares 139,133 — Total 4,517,497 287,521 2022 Amortized cost Fair value through profit or loss Assets: Trade receivables 1,834,353 — Commodity forward contracts — 32,800 Derivative financial instruments — 7,677 Restricted cash 1,344 — Total 1,835,697 40,477 Liabilities: Trade payables 2,301,700 — Lease liabilities 155,253 — Borrowings 710,552 — Payables for the acquisition of subsidiaries 164,431 — Derivative financial instruments — 7,121 Salaries and social charges 187,285 - Commodity forward contracts — 27,038 Dividends payable 411 — Total 3,519,632 34,159 |
Financial and capital risk ma_2
Financial and capital risk management (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of external credit grades | The current credit policy sets forth credit limits for customers based on credit score analysis made by the Group’s credit management area. Such score is determined considering the qualitative and quantitative information related to each customer, resulting in a rating classification and a level of requirement of guarantees as follows: % Of guarantees required on sales Credit rating % Customers Risk classification Medium-sized farmers (i) Other AA & A 18 % Very small 80-90% 0 % B 49 % Medium 100 % 30 % C & D 15 % High 100 % 60 % Simplified 18 % Small farmers N/A N/A __________________ (i) Medium-sized farmers ranging between 100 and 10,000 hectares in planted acreage that are typically not serviced directly by agricultural input producers. |
Disclosure of internal credit grades | The current credit policy sets forth credit limits for customers based on credit score analysis made by the Group’s credit management area. Such score is determined considering the qualitative and quantitative information related to each customer, resulting in a rating classification and a level of requirement of guarantees as follows: % Of guarantees required on sales Credit rating % Customers Risk classification Medium-sized farmers (i) Other AA & A 18 % Very small 80-90% 0 % B 49 % Medium 100 % 30 % C & D 15 % High 100 % 60 % Simplified 18 % Small farmers N/A N/A __________________ (i) Medium-sized farmers ranging between 100 and 10,000 hectares in planted acreage that are typically not serviced directly by agricultural input producers. |
Disclosure of maximum exposure to credit risk | Maximum exposure to credit risk as of June 30, 2023 and June 30, 2022: 2023 2022 Trade receivables (current and non-current) 2,708,539 1,834,353 Advances to suppliers 192,119 383,257 2,900,658 2,217,610 |
Disclosure of maturity analysis for non-derivative financial liabilities | The following maturity analysis of the Group’s financial liabilities and gross settled derivative financial instruments contracts (for which the cash flows are settled simultaneously) is based on the expected undiscounted contractual cash flows from the year end date to the contractual maturity date: 2023 Up to 1 year From 1 to 5 years Total Trade payables 2,765,354 2,547 2,767,901 Lease liabilities 91,419 111,304 202,723 Borrowings 982,318 48,382 1,030,700 Obligations to FIAGRO quota holders 159,722 — 159,722 Payables for the acquisition of subsidiaries 224,689 55,242 279,931 Commodity forward contracts 210,040 — 210,040 Derivative financial instruments 44,639 — 44,639 Salaries and social charges 226,583 — 226,583 Dividends payable 1,642 — 1,642 Warrant liabilities 36,446 — 36,446 Liability for FPA Shares — 139,133 139,133 4,742,852 356,608 5,099,460 2022 Up to 1 year From 1 to 5 years Total Trade payables 2,377,256 — 2,377,256 Lease liabilities 72,228 93,487 165,715 Borrowings 709,266 31,751 741,017 Payables for the acquisition of subsidiaries 114,540 55,444 169,984 Commodity forward contracts 27,729 — 27,729 Derivative financial instruments 7,303 — 7,303 Salaries and social charges 188,083 — 188,083 Dividends payable 422 — 422 3,496,827 180,682 3,677,509 |
Disclosure of maturity analysis for derivative financial liabilities | The following maturity analysis of the Group’s financial liabilities and gross settled derivative financial instruments contracts (for which the cash flows are settled simultaneously) is based on the expected undiscounted contractual cash flows from the year end date to the contractual maturity date: 2023 Up to 1 year From 1 to 5 years Total Trade payables 2,765,354 2,547 2,767,901 Lease liabilities 91,419 111,304 202,723 Borrowings 982,318 48,382 1,030,700 Obligations to FIAGRO quota holders 159,722 — 159,722 Payables for the acquisition of subsidiaries 224,689 55,242 279,931 Commodity forward contracts 210,040 — 210,040 Derivative financial instruments 44,639 — 44,639 Salaries and social charges 226,583 — 226,583 Dividends payable 1,642 — 1,642 Warrant liabilities 36,446 — 36,446 Liability for FPA Shares — 139,133 139,133 4,742,852 356,608 5,099,460 2022 Up to 1 year From 1 to 5 years Total Trade payables 2,377,256 — 2,377,256 Lease liabilities 72,228 93,487 165,715 Borrowings 709,266 31,751 741,017 Payables for the acquisition of subsidiaries 114,540 55,444 169,984 Commodity forward contracts 27,729 — 27,729 Derivative financial instruments 7,303 — 7,303 Salaries and social charges 188,083 — 188,083 Dividends payable 422 — 422 3,496,827 180,682 3,677,509 |
Disclosure of sensitivity analysis for interest rate risk | The following table sets forth the potential impacts on the statements of profit or loss: 2023 Expense on profit or loss Current Index Scenario 1 Scenario 2 Scenario 3 Floating rate borrowings in Brazil CDI Rate (12.65%) 149,124 177,153 205,183 Floating rate borrowings in Colombia IBR Rate (12.75%) 11,503 13,685 15,866 160,627 190,838 221,049 |
Disclosure of sensitivity analysis for types of market risk | The following table set forth the potential impacts on the statements of profit or loss: 2023 Effect on profit or loss and Current Index Scenario 1 Scenario 2 Scenario 3 Trade receivables in U.S. Dollars 4.7362 (3,692) 48,980 101,652 Trade payables in U.S. Dollars 4.7362 5,747 (76,243) (158,233) Borrowings in U.S. Dollars 4.7362 (2,752) 36,501 75,753 Net impacts on commercial operations (697) 9,238 19,172 Derivative financial instruments 4.7362 646 (8,557) (17,760) Total impact, net of derivatives (51) 681 1,412 As of June 30, 2023: Tons Position Current Risk (i) Average of contract prices Current Market +25% current +50% current Position Market Impact Market Impact Corn 2023 248,796 Purchased (140,542) 67.42 35.34 44.18 (35,136) 53.01 (70,271) Corn 2023 (248,999) Sold 54,190 48.39 34.96 43.70 13,548 52.44 27,095 Soybean 2024 449,847 Purchased (634) 127.86 127.95 159.94 (159) 191.93 (317) Soybean 2024 (145,915) Sold 4,449 143.80 145.71 182.14 1,112 218.57 2,225 Corn 2024 54,433 Purchased (9,499) 55.35 43.11 53.89 (2,375) 64.67 (4,750) Corn 2024 (6,500) Sold (170) 47.44 49.28 61.60 (43) 73.92 (85) Net exposure on grain contracts 351,662 Net purchased (92,206) (23,053) (46,103) Soybean 2024 (319,271) Sold on derivatives (2,761) 13.25 16.56 (690) 19.86 (1,377) Corn 2024 (55,645) Sold on derivatives 11,598 60.24 75.30 2,900 90.36 5,799 Net exposure on derivatives (374,917) Net sold 8,837 2,210 4,422 Net exposure (23,255) (83,369) (20,843) (41,681) __________________ (i) The mismatch on current fair value of Commodity forward contracts for Corn 2023 is related to derivatives contracts that were settled in advance for cash management purposes, resulting in an income of R$80,990 recognized as finance income. |
Disclosure of detailed information about hedging instruments | June 30, 2023 June 30, 2022 Options (put/call of commodities) (513) (5,662) Forwards (R$/US$) (i) 8,837 (224) Swap (R$/US$) (11,922) 6,442 Derivative financial instruments, net (3,598) 556 __________________ (i) See note 8 (g) that describe the exposure to commodity prices and volume. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventories [Abstract] | |
Disclosure Of Detailed Information About Inventories | 2023 2022 Goods for resale 1,885,941 1,759,227 (-) Allowance for inventory losses (17,737) (10,186) Total 1,868,204 1,749,041 |
Taxes recoverable (Tables)
Taxes recoverable (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tax Assets [Abstract] | |
Disclosure of taxes recoverable | 2023 2022 State VAT (“ICMS”) (i) 78,805 63,671 Brazilian federal contributions (ii) 239,815 59,975 Colombian federal contributions 21,284 21,016 Total 339,904 144,662 Current 57,001 93,725 Non-current 282,903 50,937 __________________ (i) Refers to the Brazilian value-added tax on sales and services. The Group’s ICMS relates mainly to the purchase of inputs and the Group has the benefit of a reduced ICMS tax rate. (ii) Includes: a) credits arising from the Brazilian government’s taxes charged for the social integration program (PIS) and the social security program (COFINS), and Brazilian corporate income tax and social contributions. These credits, which are recognized as current assets, will be used by the Group to offset other Federal taxes; b) withholding and overpaid taxes which can be used to settle overdue or future payable federal taxes; c) withholding income tax on cash equivalents which can be used to offset taxes owed at the end of the calendar year, in case of taxable profit, or are carried forward in case of tax loss; and |
Commodity forward contracts __2
Commodity forward contracts – Barter transactions (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Commodity Forward Contracts [Abstract] | |
Fair value of commodity forward contracts | As of June 30, fair value of commodity forward contracts is as follows: 2023 2022 Fair value of commodity forward contracts: Assets Purchase contracts 53,695 16,054 Sale contracts 61,166 16,746 114,861 32,800 Liabilities Purchase contracts (206,881) (14,995) Sale contracts (186) (12,043) (207,067) (27,038) |
Main assumptions used in fair value calculation | The main assumptions used in the fair value calculation are as follows: Outstanding Average of contract prices Average Market Prices Soybean market premium Freight Purchase Contracts Soybean As of June 30, 2022 81,379 147.65 14.52 0.4 358.55 As of June 30, 2023 449,847 127.95 13.16 (0.3) 293.65 Corn As of June 30, 2022 181,475 67.47 86.95 N/A 381.00 As of June 30, 2023 303,432 65.25 56.04 N/A 282.23 Selling Contracts Soybean As of June 30, 2022 70,191 147.46 14.56 0.5 367.46 As of June 30, 2023 145,915 145.71 13.16 0.0 0.0 Corn As of June 30, 2022 114,063 67.45 87.06 N/A 451.83 As of June 30, 2023 255,499 48.36 56.04 N/A 284.59 __________________ (i) Market price published by Chicago Board of Trade which is a futures and options exchange in United States. |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Leases [Abstract] | |
Disclosure of additional lease information | Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: Vehicles 3.4 years Buildings 4.9 years Machines and equipment 3 years |
Disclosure of quantitative information about right-of-use assets | Right-of-use assets Vehicles Buildings Machinery and equipment Total Cost 74,604 124,594 46,110 245,308 Accumulated depreciation (28,756) (60,564) (15,809) (105,129) Balance at June 30, 2022 45,848 64,030 30,301 140,179 Cost 120,052 141,915 73,236 335,203 Accumulated depreciation (54,560) (77,732) (29,232) (161,524) Balance at June 30, 2023 65,492 64,183 44,004 173,679 |
Disclosure of quantitative information about lease liabilities | Lease liabilities 2023 2022 Vehicles 68,420 49,588 Buildings 85,839 80,768 Machinery and equipment 30,160 24,897 Total 184,419 155,253 Current 85,865 69,226 Non-current 98,554 86,027 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | The estimated useful lives of property, plant and equipment are as follows: Vehicles 5 years Building and Improvements 25 years Machines, equipment and facilities 10 years Furnitures and fixtures 10 years Computer equipments 5 years Vehicles Lands, buildings and improvements Machines, equipment and facilities Furniture and fixtures Computer equipment Total Cost 36,316 99,541 53,699 11,892 4,372 205,820 Accumulated depreciation (26,208) (7,968) (18,581) (5,031) (1,827) (59,615) Balance at June 30, 2022 10,108 91,573 35,118 6,861 2,545 146,205 Cost 40,851 142,561 75,134 15,610 10,015 284,171 Accumulated depreciation (31,349) (14,698) (26,817) (7,198) (7,521) (87,583) Balance at June 30, 2023 9,502 127,863 48,317 8,412 2,494 196,588 Depreciation expense of property, plant and equipment for the year ended June 30, 2023 was $16,408 ($9,697 for the year ended June 30, 2022). |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Disclosure of detailed information about intangible assets | The estimated useful lives of intangible assets for the years ended June 30, 2023 and 2022 are as follows: Customer relationship 9 years Purchase contacts 4 years Software and other 5 years |
Disclosure of reconciliation of changes in intangible assets and goodwill | Intangible assets balance is as follows: Goodwill Customer relationship Purchase contracts and brands Software and other Total Cost: At June 30, 2020 259,526 138,179 204 4,599 402,508 Additions — — — 32,015 32,015 Business combinations 137,190 118,046 14,827 1,966 272,029 At June 30, 2021 396,716 256,225 15,031 38,580 706,552 Additions — — — 17,793 17,793 Business combinations (i) 71,348 45,922 8,764 — 126,034 Translation adjustment (1,559) (670) (1,949) — (4,178) Other (ii) (14,531) — — — (14,531) At June 30, 2022 451,974 301,477 21,846 56,373 831,670 Additions — — — 5,025 5,025 Business combinations (i) 98,890 50,600 1,207 — 150,698 Other (iii) (3,201) — — — (3,201) Translation adjustment (998) (666) (48) (10) (1,722) At June 30, 2023 546,665 351,412 23,005 61,388 982,470 Amortization: At June 30, 2020 — 19,344 4 676 20,024 Amortization for the year — 26,416 1,081 2,221 29,718 At June 30, 2021 — 45,760 1,085 2,897 49,742 Amortization for the year — 43,742 5,844 8,021 57,607 At June 30, 2022 — 89,502 6,929 10,918 107,349 Amortization for the year — 50,263 8,983 8,682 67,928 At June 30, 2023 — 139,765 15,912 19,600 175,277 At June 30, 2022 451,974 211,975 14,917 45,455 724,321 At June 30, 2023 546,665 211,646 7,093 41,788 807,192 __________________ (i) Balances arising from business combinations (Note 21). (ii) Balances arising from the adjustment in the purchase price from acquisition of Desempar and Cultivar, which occurred in the year ended June 30, 2021. The consideration for each acquisition was subject to post-closing price adjustments, based on the working capital variations of the purchased company. (iii) Balance arising from the adjustment in the purchase price from acquisition of Agrozap, which occurred in the year ended June 30, 2022. The consideration for the acquisition was subject to post-closing price adjustment, based on the working capital variations of the purchased company. |
Impairment testing of non-fin_2
Impairment testing of non-financial assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Impairment testing of non-financial assets [Abstract] | |
Disclosure of information for cash-generating units | Business segments are composed by certain CGUs as follows: Segment Identified CGUs LATAM Cluster Colombia CGU Brazil Cluster North CGU, East CGU, South CGU Crop Care Cluster Biological products and special fertilizers CGU The main assumptions used in the impairment test are as follows: Cash-generating unit Revenue growth rate Operating margin average Pre Tax discount rate Recoverable amount Colombia CGU 15.2 % 16.0 % 12.0 % 854,088 North CGU 11.5 % 15.1 % 13.2 % 1,034,123 East CGU 13.4 % 11.6 % 13.2 % 2,053,650 South CGU 15.6 % 21.9 % 13.2 % 2,212,679 Biological products and special fertilizers CGU 21.2 % 24.7 % 13.2 % 1,643,008 |
Trade payables (Tables)
Trade payables (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade payables | 2023 2022 Trade payables – Brazil 2,268,420 1,990,089 Trade payables – Colombia 309,828 311,611 Total 2,578,248 2,301,700 Current 2,575,701 2,301,700 Non-current 2,547 — |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of detailed information about borrowings | 2023 2022 Borrowing in Colombia 71,562 39,755 Borrowings in Brazil 893,913 670,797 Total borrowings 965,475 710,552 Average interest rate 2023 (i) 2023 Average 2022 Debt contracts in Brazil in: R$, indexed to CDI (ii) (iv) 16.62 % 725,563 14.45 % 525,099 R$, with fixed interest (iv) 8.76 % 8,590 — — U.S. Dollars, with fixed interest (iv) 4.03 % 159,760 3.16 % 145,698 Debt contracts in Colombia in: COP, indexed to IBR (iii) / (iv) 15.43 % 69,862 14.26 % 39,755 COP, with fixed interest (iv) 15.72 % 1,700 — — Total 965,475 710,552 Current 922,636 681,217 Non-current 42,839 29,335 __________________ (i) In order to determine the average interest rate for debt contracts with floating rates, the Group used the rates prevailing during the years. (ii) Brazilian reais denominated debt that bears interest at the CDI Rate (see Note 8 for a definition of those indexes), plus spread. (iii) Colombian peso-denominated debt that bears interest at the IBR rate (see Note 8 for a definition of those indexes), plus spread. (iv) The borrowings are guaranteed by $822 of transferred credit rights (see note 6). At June 30, 2020 168,571 Proceeds from borrowings 466,280 Repayment of principal amount (472,909) Accrued interest 33,971 Borrowings from acquired companies 76,915 Interest payment (30,424) At June 30, 2021 242,404 Proceeds from borrowings 615,984 Repayment of principal amount (299,613) Accrued interest 74,081 Borrowings from acquired companies 85,097 Interest payment (7,401) At June 30, 2022 710,552 Proceeds from borrowings 1,449,445 Repayment of principal amount (1,456,017) Accrued interest 319,557 Borrowings from acquired companies 25,756 Exchange rate translation 11,921 Interest payment (95,739) At June 30, 2023 965,475 |
Disclosure of maturity analysis for borrowings | The installments are distributed by maturity year: 2023 2022 2023 — 4,509 2024 726 23,842 2025 15,452 929 2026 1,376 55 2027 25,285 — Total 42,839 29,335 |
Acquisition of subsidiaries (Ta
Acquisition of subsidiaries (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations Disclosure [Abstract] | |
Disclosure of detailed information about business combination | The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition was: Fair value as of the acquisition date Assets Floema (e) Casa Trevo Provecampo Sollo Sul and Dissul Cromo Total Cash equivalents 24,167 12,306 10,479 16,307 8,735 71,994 Trade receivables 19,892 32,106 7,499 132,467 11,907 203,871 Inventories 52,133 61,734 11,320 84,226 5,311 214,724 Other assets 11,739 4,750 23 46,663 664 63,839 Property, plant and equipment 1,152 867 983 2,372 3,151 8,525 Intangible assets 14,879 1,676 12,117 2,083 2,722 33,477 123,962 113,439 42,421 284,118 32,490 596,430 Liabilities Trade payables 88,902 48,070 10,980 80,811 1,200 229,963 Borrowings — — — 25,756 — 25,756 Provision for contingencies — 10,245 — — — 10,245 Other liabilities 1,543 13,659 6,910 87,921 4,056 114,089 90,445 71,974 17,890 194,488 5,256 380,053 Total identifiable net assets at fair value 33,517 41,465 24,531 89,630 27,233 216,376 Non-controlling interests (1) (6,220) — — (8,169) (14,389) Goodwill arising on acquisition 25,796 9,625 2,010 57,719 5,331 100,481 Consideration transferred 59,313 44,870 26,541 147,349 24,395 302,468 Cash paid 25,294 23,619 17,682 52,832 8,120 127,547 Shares issued (1) 12,296 — — — — 12,296 Payable in installments 21,723 21,251 8,859 94,517 16,275 162,625 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in equity. (b) Acquisitions in the year ended June 30, 2022 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition was: Fair value as of the acquisition date Assets Produtiva (j) Cenagro (k) Cenagral (l) Union Agro (m) Agrozap (n) Nova Geração (o) Total Cash and cash equivalents 53,699 2,142 1,064 66,256 9,028 1,617 133,806 Trade receivables 27,610 11,792 7,492 117,882 98,201 47,978 310,955 Inventories 46,261 22,670 5,833 42,435 85,683 9,631 212,513 Other assets 8,472 12,225 1,023 4,524 22,204 2,893 51,341 Property, plant and equipment 1,223 1,266 363 26,659 2,642 585 32,738 Intangible assets 26,074 2,602 7,437 8,293 6,015 4,265 54,686 163,339 52,697 23,212 266,049 223,773 66,969 796,039 Liabilities Trade payables 77,063 17,008 2,097 24,750 136,086 37,532 294,536 Borrowings — 3,045 — 25,157 50,701 6,194 85,097 Provision for contingencies — — — 11,362 — 11,362 Other liabilities 8,898 18,410 5,750 9,923 25,029 743 68,753 85,961 38,463 7,847 71,192 211,816 44,469 459,748 Total identifiable net assets at fair value 77,378 14,234 15,365 194,857 11,957 22,500 336,291 Non-controlling interests (1) - (2,847) (3,073) (52,611) (4,215) — (62,746) Goodwill arising on acquisition 9,491 11,468 9,003 - 33,218 8,168 71,348 Gain on bargain purchase — — — (18,295) — (18,295) Consideration transferred 86,869 22,855 21,295 123,951 40,960 30,668 326,598 Cash paid 36,385 16,724 15,376 103,800 18,813 15,574 206,672 Shares issued (1) 22,500 — — — — 7,807 30,307 Payable in installments 27,984 6,131 5,919 20,151 22,147 7,287 89,619 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in net investment. (c) Acquisitions in the year ended June 30, 2021 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition were: Fair value as of the acquisition date in 2021 Assets Integra Quali América Culti Desem Agrobi Total Cash and cash equivalents 19,905 42,259 7,576 44,223 59,428 2,064 175,455 Trade receivables 21,543 81,377 76,123 231,784 251,002 30,154 691,983 Inventories 30,774 110,946 58,188 68,471 178,697 2,789 449,865 Other assets 5,489 31,940 3,840 11,505 34,119 69 86,962 Property, plant and equipment 832 9,914 603 2,770 7,652 4,083 25,854 Intangible assets 8,398 16,648 40,816 8,375 55,579 11,446 141,262 86,941 293,084 187,146 367,128 586,477 50,605 1,571,381 Liabilities Trade payables 47,082 205,861 114,474 217,486 348,213 1,256 934,372 Borrowings 48 5,518 — 50,870 17,231 3,248 76,915 Other liabilities 6,287 4,873 18,871 16,795 45,966 102 92,894 53,417 216,252 133,345 285,151 411,410 4,606 1,104,181 Total identifiable net assets at fair value 33,524 76,832 53,801 81,977 175,067 45,999 467,200 Non-controlling interests (1) — (22,458) — (13,706) — — (36,164) Goodwill arising on acquisition 22,259 19,231 7,841 6,467 72,933 7,004 135,735 Consideration transferred 55,783 73,605 61,642 74,738 248,000 53,003 566,771 Cash paid 27,723 34,021 42,505 54,184 188,000 28,000 374,433 Shares issued (1) 12,848 — — — — 18,006 30,854 Payable in installments 15,212 39,584 19,137 20,554 60,000 6,997 161,484 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in net investment. The Group estimated the fair value of significant assets acquired using the following valuation methods: Item 2023 2022 2021 Nature Valuation method Customer relationship 33,477 45,922 119,466 A loyal relationship between the acquirees and its customers, which translates into recurring purchases of products and services Multi Period Excess Earnings Method (MPEEM) Inventories 214,724 212,513 449,865 Inventories Selling price less all expenses related to the distribution of that good Purchase Contracts — — 8,598 Favorable purchase contract with suppliers Multi Period Excess Earnings Method (MPEEM) Brand — 8,764 5,930 Private label products (Produtiva, Union and Cenagral) Relief from Royalty method 248,201 267,199 583,859 The following tables discloses the Group’s revenues and profit or loss for the year assuming all of the acquisitions completed during the year were completed at the beginning of such year: 2023 2022 2021 Revenues 9,697,932 8,163,196 6,231,988 Profit (loss) for the year (187,082) 151,235 81,742 Acquisitions in the year ended June 30, 2023: Revenues Profit (loss) Period from Provecampo 37,291 1,656 August 2022 Floema 205,451 12,628 August 2022 Casa Trevo 136,003 20,787 September 2022 Sollo Sul 182,385 (10,064) December 2022 Cromo 210 (719) May 2023 Total 561,340 24,288 Acquisitions in the year ended June 30, 2022: Revenues Profit Period from Produttiva 175,335 14,152 September, 2021 Cenagro 156,722 6,372 September, 2021 Cenagral 26,267 (1,013) September, 2021 Union Agro 156,000 23,428 November, 2021 Agrozap 132,911 1,632 January, 2022 Nova Geração 7,179 (3,828) January, 2022 Total 654,414 40,743 Acquisitions in the year ended June 30, 2021: Revenues Profit Period from Integra 144,087 (4,773) September, 2020 Agrobiológica 39,839 17,217 September, 2020 Qualiciclo 210,521 (12,571) December, 2020 América 74,446 9,304 January, 2021 Cultiva 15,263 (9,185) April, 2021 Desempar 130,771 (13,409) April, 2021 Total 614,927 (13,417) The following table summarizes the preliminary allocation of the consideration transferred as of July 29, 2022: Cash paid 67,112 Payable in installments 35,000 Fair value of consideration transferred 102,112 (-) Fair value of net assets acquired: Assets Cash and cash equivalents 8,249 Trade receivables 43,462 Inventories 81,972 Property, plant and equipment 1,504 Intangible 34,731 Other assets 8,157 178,076 Liabilities Borrowings 32,455 Trade payables 61,178 Other liabilities 42,205 135,838 Total identifiable net assets at fair value 42,238 Preliminary goodwill arising on acquisition 72,545 |
Accounting considerations rel_2
Accounting considerations related to the SPAC Transaction (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Considerations Related To The SPAC Transaction [Abstract] | |
Disclosure of detailed information about listing expenses | Accordingly, the Group recorded a listing expense as follows: As of February 27, 2023 Deemed cost of shares issued to TPB Acquisition Corp shareholders (i) 893,613 Less: Net assets of TPB Acquisition Corp at historical cost (574,059) Listing expense 319,554 __________________ |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Reconciliation of income taxes expense | Reconciliation of income taxes expense 2023 2022 2021 Profit (loss) before income taxes (390,937) 140,424 46,207 Statutory rate (i) 34 % 34 % 34 % Income taxes at statutory rate 132,919 (47,744) (15,710) Unrecognized deferred tax asset (ii) (193,898) (7,055) (11,755) Difference from income taxes calculation based on taxable profit computed as a percentage of gross revenue 10,822 7,080 5,375 Deferred income taxes over goodwill tax recoverable (3,897) — — Tax benefit (iii) 244,718 15,066 — Other (18,407) (9) (2,586) Income tax expense 172,256 (32,662) (24,676) Income tax and social contribution effective rate (44 %) 23 % 52 % Current income taxes 37,499 (111,409) (61,676) Deferred income taxes 134,757 78,747 37,000 ___________________ (i) The effective tax rate reconciliation considers the statutory income taxes rates in Brazil, due to the significance of the Brazilian operation when compared to Colombia. The difference to reconcile the effective rate to the Colombian statutory rate (32%) is included in others. (ii) The Group did not recognize deferred tax assets on accumulated tax losses from certain subsidiaries in a total amount of unrecognized credits on tax losses of $187,310 ($7,055 for June 30, 2022 and $11,755 for June 30, 2021). The Group assessed that is unlikely that these subsidiaries will generate future taxable income in the foreseeable future. (iii) This amount reflects the tax benefit from the deduction of the ICMS tax benefits in the calculation of the income tax (see note 10). |
Deferred income taxes balances | Deferred income taxes balances 2023 2022 Deferred assets and liabilities: Amortization of fair value adjustment 66,065 32,787 Tax losses 123,072 49,332 Allowance for expected credit losses 49,026 51,379 Adjustment to present value 14,222 40,639 Provision for management bonuses 22,182 26,738 Allowance for inventory losses 3,841 3,463 Financial effect on derivatives (1,468) 2,001 Fair value of commodity forward contracts 31,343 (1,959) Unrealized exchange gains or losses (7,618) (1,803) Unrealized profit in Inventories (11,121) — Gain on bargain purchase — (6,221) Amortized right-of-use assets 6,273 2,617 Deferred tax on goodwill (2,067) — Other provisions 22,981 (5,478) Deferred income tax assets, net 329,082 200,986 Deferred income tax liabilities, net (12,351) (7,491) Deferred income tax assets, net 316,731 193,495 Deferred income tax and social At June 30, 2021 114,748 Recognized in the statement of profit or loss 78,747 At June 30, 2022 193,495 Recognized in the statement of profit or loss 128,362 Deferred tax from acquired companies (5,126) At June 30, 2023 316,731 |
Aging analysis of net deferred income tax | The aging analysis of net deferred income tax is as follow: 2023 Up to 1 year 185,123 Over 1 year 131,608 Total 316,731 |
Advances from customers (Tables
Advances from customers (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from contracts with customers [Abstract] | |
Explanation of significant changes in contract assets and contract liabilities | Movement in the year 2023 2022 2021 Balance as of the beginning of the year 320,560 509,403 218,699 Revenue recognized that was included in the contract liability balance at the beginning of the year (320,560) (509,403) (218,699) Increase in advances 427,463 301,963 390,809 Advances from acquired companies 61,115 18,597 118,594 Balance at the end of the year 488,578 320,560 509,403 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Related party [Abstract] | |
Disclosure of transactions between related parties | Breakdown of assets and liabilities: 2023 2022 Assets Trade receivables (i) 24,487 11,677 Advances to suppliers (i) — 67 Total assets 24,487 11,744 Liabilities Trade payables (i) 1,675 274 Advances from customers (i) — 1,097 Payables for the acquisition of subsidiaries (ii) 100,287 63,930 Total liabilities 101,962 65,301 __________________ (i) Refer to commercial transactions in the ordinary course of business with non-controlling shareholders of subsidiaries. Such transactions are carried at the same commercial terms as non-related parties customers. (ii) Payments in installments to the non-controlling shareholders related to certain business combinations as described in Note 20. (b) Statement of profit or loss 2023 2022 2021 Revenue from sales of products (i) 33,032 13,046 Monitoring expenses (ii) (18,681) (2,504) 5,592 Interest on payables for the acquisition of subsidiaries (4,841) Other expenses (2,374) (1,417) — Total 7,137 9,125 5,592 __________________ (i) Refer to commercial transactions in the ordinary course of business with non-controlling shareholders of subsidiaries. Such transactions are carried at the same commercial terms as non-related party customers. (ii) Expenses paid to the Parent in relation to management support services for acquisition transactions by Gestão e Transformação S.A. (c) Key management personnel compensation 2023 2022 2021 Wages 14,268 11,164 6,540 Direct and indirect benefits 690 427 551 Variable compensation (bonuses) 25,479 3,992 6,148 Short-term benefits 40,437 15,583 13,239 Share-based payment benefits 14,533 — — Total 54,970 15,583 13,239 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share capital, reserves and other equity [Abstract] | |
Disclosure of noncontrolling interest transactions | The effect on the total net investment during the period is summarized as follow: Pre reorganization: Carrying amount of non-controlling interests acquired 36,176 Consideration paid to non-controlling interests (100,887) Excess of consideration paid recognized in net investment of the Parent (64,711) The effect on the total net investment during the year is summarized as follow: In the year ended June 30, 2022: Carrying amount of non-controlling interests acquired 32,972 Difference between consideration paid in shares and non-controlling interest acquired (1,878) Total carrying amount of non-controlling interests acquired, net 31,094 Consideration paid to non-controlling interests (34,351) Excess of consideration paid recognized in net investment of the Parent (3,257) Carrying amount of non-controlling interests acquired 57,422 Consideration paid in cash to non-controlling interests (79,493) Excess of consideration paid recognized in net investment of the Parent (22,071) |
Disclosure of SPAC Transaction | The following table illustrates the impact of the closing of SPAC Transaction on the shareholders’ equity of the Lavoro: Ordinary authorized and issued shares Number of shares Share capital Additional Paid-in Capital Net investment — — — Shares issued to the shareholders of Lavoro Agro Limited 98,726,401 514 1,464,083 Shares issued to the shareholders of TPB Acquisition Corp 14,875,879 77 670,256 As of June 30, 2023 113,602,280 591 2,134,339 |
Equity | Equity (a) Prior reorganization The financial statements were prepared in accordance with principles described in Note 2. No share capital is presented. The net investment and the profit for the year is derived by aggregating the net assets and business activities of the Group. Acquisitions of non-controlling interests in the year ended June 30, 2023: In 2022, the Group acquired an additional 26.24% stake of Cultivar for $42,500. The carrying amount of the 26.24% non-controlling interest was $16,607. The Group recognized a decrease in non-controlling interest of $16,607 and a decrease in net investment of the Parent of $25,893. In 2022, the Group acquired an additional 6.89% stake of Pitangueiras for $45,000. The carrying amount of the 6.89% non-controlling interest was $19,569. The Group recognized a decrease in non-controlling interest of $19,569 and a decrease in net investment of the Parent of $25,431. Agrovenci, Qualiciclo, Desempar Participações, Denorpi, Deragro, Desempar Tecnologia, Futuragro, Plenafértil, Realce, Cultivar and Nova Geração are direct or indirect controlled by Pitangueiras and the equity interest of each subsidiary were changed on the consolidated financial statements as described in note 2.c. Additionally, the Group paid R$13,387 related to non-controlling interests on Produtec. The effect on the total net investment during the period is summarized as follow: Pre reorganization: Carrying amount of non-controlling interests acquired 36,176 Consideration paid to non-controlling interests (100,887) Excess of consideration paid recognized in net investment of the Parent (64,711) Acquisitions of non-controlling interests in the year ended June 30, 2022: In December 2021, the Group acquired an additional 20% stake of Group Cenagro through the exchange of shares of Lavoro Colombia SAS representing a 2.68% interest. No cash consideration was paid. The fair value of such shares was R$6,480 and the carrying amount of the 20% non-controlling interest was R$4,602. The fair value of the consideration was based on an equity transaction with third partiesclose to the acquisition date.The Group recognized an increase in non-controlling interest of R$1,878 and a decrease in net investment of the Parent of R$1,878. In June 2022, the Group acquired an additional 5.77% stake of Lavoro Agrocomercial S.A. paid in cash for R$16,782. The carrying amount of the 5.77% non-controlling interest was R$9,769. The Group recognized a decrease in non-controlling interest of R$9,769 and a decrease in net investment of the Parent of R$7,013. In June 2022, the Group acquired an additional 7.65% stake of Produtec Comércio e Representações S.A. paid in cash for R$17,569. The carrying amount of the 6.89% non-controlling interest was R$23,203. The Group recognized a decrease in non-controlling interest of R$23,203 and an increase in net investment of the Parent of R$5,634. The effect on the total net investment during the year is summarized as follow: In the year ended June 30, 2022: Carrying amount of non-controlling interests acquired 32,972 Difference between consideration paid in shares and non-controlling interest acquired (1,878) Total carrying amount of non-controlling interests acquired, net 31,094 Consideration paid to non-controlling interests (34,351) Excess of consideration paid recognized in net investment of the Parent (3,257) Acquisitions of non-controlling interests in the year ended June 30, 2021: In fiscal year ended June 30, 2021, the Group acquired an additional 8.94% stake of Lavoro Agrocomercial paid in cash for R$79,493. The carrying amount of the 8.94% non-controlling interest was R$57,422. The Group recognized a decrease in non-controlling interests of R$57,422 and a decrease in net investment of the Parent of R$22,071, as follows: Carrying amount of non-controlling interests acquired 57,422 Consideration paid in cash to non-controlling interests (79,493) Excess of consideration paid recognized in net investment of the Parent (22,071) (b) After reorganization The following table illustrates the impact of the closing of SPAC Transaction on the shareholders’ equity of the Lavoro: Ordinary authorized and issued shares Number of shares Share capital Additional Paid-in Capital Net investment — — — Shares issued to the shareholders of Lavoro Agro Limited 98,726,401 514 1,464,083 Shares issued to the shareholders of TPB Acquisition Corp 14,875,879 77 670,256 As of June 30, 2023 113,602,280 591 2,134,339 Ordinary Shares A Lavoro ordinary shares have a par value of US$0.001 and are entitled to one vote per share. Other capital reserves Other capital reserves is comprised of a reserve set-up by the Group share-based payment (an equity-settled share-based compensation plan). Share based payment Accounting policy for share based payment Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in personnel expenses (Note 29), together with a corresponding increase in equity (other capital reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. Service conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. Share-based payment (“SBP”) On August 17, 2022, the Group approved the Lavoro Agro Holding S.A. Long-Term Incentive Policy (the “Lavoro Share Plan”). Under the Lavoro Share Plan, individuals selected by the Lavoro board of directors (“Selected Employees”) are eligible to receive incentive compensation consisting of cash, assets or share options issued by Lavoro Agro Limited, in an amount linked to the appreciation in the Lavoro Agro Limited share price at the time of the liquidity event, upon the satisfaction of certain conditions, as described below. As of June 30, 2023, Lavoro has granted 49,518,732 share options as incentive compensation to Selected Employees. Share options granted under the Lavoro Share Plan will vest in the event the following market conditions are met (the “Market Conditions”): (i) the occurrence of a liquidity event satisfying a minimum internal rate of return specified in the Lavoro Share Plan; and (ii) the price per share obtained under such liquidity event must be greater than or equal to one of the following amounts: (a) a pre-established reference price multiplied by three; or (b) an amount calculated in accordance with a pre-established formula, in each case specified under the Lavoro Share Plan. Moreover, upon the satisfaction of the Market Conditions, such share options will vest according to the following schedule (the “Service Conditions”): (i) one-third of the options vest on the third anniversary of the grant date; (ii) one-third of the options vest on the fourth anniversary of the grant date; and (iii) one-third of the options vest on the fifth anniversary of the grant date. The Lavoro Share Plan has a term of five years: if the Market Conditions have not been satisfied within this year, all options granted under the Lavoro Share Plan will be extinguished, with no further payment or incentive obligation remaining due by Lavoro. The consummation of the SPAC Transaction (see note 1) did not satisfy the Market Conditions. As of February 28, 2023, the shareholders of Lavoro approved the Lavoro Share Plan. As a result, Lavoro reserved for issuance the number of ordinary shares equal to the number of Lavoro Share Plan Shares under the Lavoro Share Plan, as adjusted in accordance with the Business Combination Agreement, in an amount of 1,663,405 ordinary shares. The exercise price of the share-based payment is equal to the options price agreed with the employee in the contracts, representing the amount of $1 monetarily adjusted until the date on which the liquidity event occurs. The fair value of share options granted is estimated at the date of grant considering the terms and conditions using the Black-Scholes model, taking into account the terms and conditions on which the share options were granted. The model also takes into account historical and expected dividends, and the share price volatility of Lavoro. On May 26, 2023 the Board of Directors approved a long-term incentive plan (the “New Lavoro Equity Plan”) in which eligible participants may include members of our management, our employees and our directors. Beneficiaries under the New Lavoro Equity Plan will be granted equity awards pursuant to the terms and conditions of the New Lavoro Equity Plan and any applicable award agreement. The expense recognized for employee services received during the year and the number of options granted is shown in the following tables: Other capital reserves At June 30, 2022 — Share-based payments expense during the year 14,533 At June 30, 2023 14,533 Options granted At June 30, 2022 — Granted options 49,518,732 Canceled (3,800,000) At June 30, 2023 45,718,732 The weighted average fair value of the options granted during the period was $0.44 per option. The significant data included in the model were: weighted average share price of $2.88 on the grant date, exercise price presented above, volatility of 33.88%, no dividend yield, an expected option life of 3.37 years and a risk-free annual interest rate of 12.45%. Earnings per share Earnings (loss) per share is calculated by dividing the profit (loss) for the period attributable to net investment of the parent/equity holders of the parent by the weighted average number of common shares available during the fiscal year. Diluted earnings (loss) per share is calculated by adjusting the weighted average number of common shares, presuming the conversion of all the potential diluted common shares. The number of ordinary shares issued by Lavoro, as a result of the corporate reorganization is reflected retroactively, for purposes of calculating earnings per share in all prior periods presented. The table below show data used in calculating basic and diluted earnings (loss) per share attributable to the net investment of the parent/equity holders of the parent: 2023 2022 2021 Weighted average ordinary shares of Lavoro 113,602 113,602 113,602 Effects of dilution from: Share-based payment(i) 1,605 — — Number of ordinary shares adjusted for the effect of dilution 115,207 113,602 113,602 Profit (loss) for the period attributable to net investment of the parent/equity holders of the parent (260,710) 78,170 38,390 Basic earnings (loss) per share (2.29) 0.69 0.34 Diluted earnings (loss) per share (2.29) 0.69 0.34 ______________ (i) Based on the numbers of shares reserved by Lavoro Limited to the Lavoro Share Plan, as explained above. The Group reported a loss for the year ended June 30, 2023, accordingly the ordinary shares related to the share-based payment have a non-dilutive effect and therefore were not considered in the total number of shares outstanding to determine the diluted earnings (loss) per share. All public and private warrants are out of the money as of June 30, 2023; therefore, the approximately 6,012,085 and 4,071,507 public and private warrants, respectively, were not included in the calculation of the diluted earnings (loss) per share. Similarly, the 3,060,662 Founder Shares were not considered in the calculation of the diluted earnings (loss) per share due to the Group’s market share price. |
Disclosure of share-based payment expense | The expense recognized for employee services received during the year and the number of options granted is shown in the following tables: Other capital reserves At June 30, 2022 — Share-based payments expense during the year 14,533 At June 30, 2023 14,533 Options granted At June 30, 2022 — Granted options 49,518,732 Canceled (3,800,000) At June 30, 2023 45,718,732 |
Disclosure of earnings per share | The table below show data used in calculating basic and diluted earnings (loss) per share attributable to the net investment of the parent/equity holders of the parent: 2023 2022 2021 Weighted average ordinary shares of Lavoro 113,602 113,602 113,602 Effects of dilution from: Share-based payment(i) 1,605 — — Number of ordinary shares adjusted for the effect of dilution 115,207 113,602 113,602 Profit (loss) for the period attributable to net investment of the parent/equity holders of the parent (260,710) 78,170 38,390 Basic earnings (loss) per share (2.29) 0.69 0.34 Diluted earnings (loss) per share (2.29) 0.69 0.34 ______________ (i) Based on the numbers of shares reserved by Lavoro Limited to the Lavoro Share Plan, as explained above. |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from contracts with customers [Abstract] | |
Disaggregation of revenue from contracts with customers | Below is revenue from contracts with customers disaggregated by product line and geographic location: 2023 2022 2021 Inputs Retails sales Brazil 6,950,340 5,555,066 3,439,049 Colombia 1,145,520 1,066,548 758,423 8,095,860 6,621,614 4,197,472 Private Label products Crop Care 557,167 331,527 41,138 Grains (ii) Brazil 633,565 693,525 759,521 Colombia 33,360 21,780 30,251 666,925 715,305 789,772 Services Colombia 27,461 78,088 70,163 Total Revenues 9,347,413 7,746,534 5,098,545 Summarized by region Brazil 8,141,072 6,580,118 4,239,708 Colombia 1,206,341 1,166,416 858,837 __________________ (i) Sales between the Crop Care Cluster and the Brazil Cluster. (ii) As explained in Note 11, the Group receives grains from certain customers in exchange to the product sold. The fair value of such non-cash consideration received from the customer is included in the transaction price and measured when the Group obtains control of the grains. The Group estimates the fair value of the non-cash consideration by reference to its market price. |
Costs and expenses by nature (T
Costs and expenses by nature (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of Costs and Expenses by Nature | The breakdown of costs and expenses by nature is as follows: 2023 2022 2021 Cost of inventory (i) 7,519,405 6,368,444 4,357,001 Personnel expenses 628,222 485,643 286,086 Maintenance of the units 34,396 30,567 22,387 Consulting, legal and other services 118,610 118,056 67,836 Freight on sales 57,650 47,979 31,911 Commissions 52,040 33,874 42,447 Storage 7,613 5,363 8,425 Travel 33,543 23,605 18,444 Depreciation 16,408 9,697 5,717 Amortization of intangibles 67,927 57,607 29,717 Amortization of right-of-use assets 56,236 51,203 17,997 Taxes and fees 32,266 29,849 17,948 Short term rentals 22,365 11,733 20,525 Business events 9,333 4,893 1,951 Marketing and advertising 14,631 18,181 4,089 Insurance 7,679 3,395 2,877 Utilities 22,302 12,696 6,693 Allowance for expected credit losses 36,769 27,393 11,094 Losses and damage of inventories 19,127 23,339 9,808 Fuels and lubricants 29,527 23,705 4,373 Legal fees 4,336 7,025 3,208 SPAC bonuses (ii) 29,743 — — Other administrative expenditures 24,606 49,178 11,629 Total 8,844,734 7,443,425 4,982,163 Classified as: Cost of goods sold 7,616,606 6,421,037 4,362,657 Sales, general and administrative expenses 1,228,128 1,022,388 619,506 __________________ (i) Includes fair value on inventory sold from acquired companies, in the amounts of $26,914,$27,005 and $39,536 respectively for the years ended June 30, 2023, 2022 and 2021. |
Finance income (costs) (Tables)
Finance income (costs) (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of Finance income (costs) | 2023 2022 2021 Finance income Interest from cash equivalents 8,241 8,703 2,461 Interest arising from revenue contracts 250,337 407,449 204,744 Foreign exchange differences — — 12,759 Gain on changes in fair value of derivative instruments 79,375 — — Gain on changes in fair value of commodity forward contracts — 9,200 6,337 Interest from tax benefit (see note 23) 27,153 — — Other 5,954 1,581 798 Total 371,060 426,933 227,099 Finance costs Interest on borrowings (319,557) (74,081) (33,971) Interest on leases (16,977) (13,217) (5,076) Interest on trade payables and acquisitions of subsidiary (508,351) (506,778) (256,122) Foreign exchange differences (15,232) (1,957) — Loss on changes in fair value of derivative instruments — (26,323) (4,883) Loss on fair value of commodity forward contracts (98,674) — — Other (15,608) (24,021) (12,840) Total (988,867) (646,377) (312,892) Finance costs, net (617,807) (219,444) (85,793) |
Other operating (expenses) in_2
Other operating (expenses) income, net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Disclosure Of Detailed Information About Other Operating Income (Expense) | 2023 2022 2021 Listing expense (ii) (319,554) — — Gain on bargain purchase (i) — 18,295 — Sales of fixed assets 2,071 8,592 3,914 Other operating income 41,674 29,872 11,704 Other operating income (expenses), net (275,810) 56,759 15,618 __________________ (i) Acquisition of Union. See note 21. (ii) This represents stock exchange listing service as a result of the SPAC Transaction. Refer to Note 22 for further discussion. |
Subsequent events (Tables)
Subsequent events (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Events after reporting period [Abstract] | |
Disclosure of detailed information about business combination | The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition was: Fair value as of the acquisition date Assets Floema (e) Casa Trevo Provecampo Sollo Sul and Dissul Cromo Total Cash equivalents 24,167 12,306 10,479 16,307 8,735 71,994 Trade receivables 19,892 32,106 7,499 132,467 11,907 203,871 Inventories 52,133 61,734 11,320 84,226 5,311 214,724 Other assets 11,739 4,750 23 46,663 664 63,839 Property, plant and equipment 1,152 867 983 2,372 3,151 8,525 Intangible assets 14,879 1,676 12,117 2,083 2,722 33,477 123,962 113,439 42,421 284,118 32,490 596,430 Liabilities Trade payables 88,902 48,070 10,980 80,811 1,200 229,963 Borrowings — — — 25,756 — 25,756 Provision for contingencies — 10,245 — — — 10,245 Other liabilities 1,543 13,659 6,910 87,921 4,056 114,089 90,445 71,974 17,890 194,488 5,256 380,053 Total identifiable net assets at fair value 33,517 41,465 24,531 89,630 27,233 216,376 Non-controlling interests (1) (6,220) — — (8,169) (14,389) Goodwill arising on acquisition 25,796 9,625 2,010 57,719 5,331 100,481 Consideration transferred 59,313 44,870 26,541 147,349 24,395 302,468 Cash paid 25,294 23,619 17,682 52,832 8,120 127,547 Shares issued (1) 12,296 — — — — 12,296 Payable in installments 21,723 21,251 8,859 94,517 16,275 162,625 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in equity. (b) Acquisitions in the year ended June 30, 2022 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition was: Fair value as of the acquisition date Assets Produtiva (j) Cenagro (k) Cenagral (l) Union Agro (m) Agrozap (n) Nova Geração (o) Total Cash and cash equivalents 53,699 2,142 1,064 66,256 9,028 1,617 133,806 Trade receivables 27,610 11,792 7,492 117,882 98,201 47,978 310,955 Inventories 46,261 22,670 5,833 42,435 85,683 9,631 212,513 Other assets 8,472 12,225 1,023 4,524 22,204 2,893 51,341 Property, plant and equipment 1,223 1,266 363 26,659 2,642 585 32,738 Intangible assets 26,074 2,602 7,437 8,293 6,015 4,265 54,686 163,339 52,697 23,212 266,049 223,773 66,969 796,039 Liabilities Trade payables 77,063 17,008 2,097 24,750 136,086 37,532 294,536 Borrowings — 3,045 — 25,157 50,701 6,194 85,097 Provision for contingencies — — — 11,362 — 11,362 Other liabilities 8,898 18,410 5,750 9,923 25,029 743 68,753 85,961 38,463 7,847 71,192 211,816 44,469 459,748 Total identifiable net assets at fair value 77,378 14,234 15,365 194,857 11,957 22,500 336,291 Non-controlling interests (1) - (2,847) (3,073) (52,611) (4,215) — (62,746) Goodwill arising on acquisition 9,491 11,468 9,003 - 33,218 8,168 71,348 Gain on bargain purchase — — — (18,295) — (18,295) Consideration transferred 86,869 22,855 21,295 123,951 40,960 30,668 326,598 Cash paid 36,385 16,724 15,376 103,800 18,813 15,574 206,672 Shares issued (1) 22,500 — — — — 7,807 30,307 Payable in installments 27,984 6,131 5,919 20,151 22,147 7,287 89,619 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in net investment. (c) Acquisitions in the year ended June 30, 2021 The fair value of the identifiable assets and liabilities, consideration transferred and goodwill as of the date of each acquisition were: Fair value as of the acquisition date in 2021 Assets Integra Quali América Culti Desem Agrobi Total Cash and cash equivalents 19,905 42,259 7,576 44,223 59,428 2,064 175,455 Trade receivables 21,543 81,377 76,123 231,784 251,002 30,154 691,983 Inventories 30,774 110,946 58,188 68,471 178,697 2,789 449,865 Other assets 5,489 31,940 3,840 11,505 34,119 69 86,962 Property, plant and equipment 832 9,914 603 2,770 7,652 4,083 25,854 Intangible assets 8,398 16,648 40,816 8,375 55,579 11,446 141,262 86,941 293,084 187,146 367,128 586,477 50,605 1,571,381 Liabilities Trade payables 47,082 205,861 114,474 217,486 348,213 1,256 934,372 Borrowings 48 5,518 — 50,870 17,231 3,248 76,915 Other liabilities 6,287 4,873 18,871 16,795 45,966 102 92,894 53,417 216,252 133,345 285,151 411,410 4,606 1,104,181 Total identifiable net assets at fair value 33,524 76,832 53,801 81,977 175,067 45,999 467,200 Non-controlling interests (1) — (22,458) — (13,706) — — (36,164) Goodwill arising on acquisition 22,259 19,231 7,841 6,467 72,933 7,004 135,735 Consideration transferred 55,783 73,605 61,642 74,738 248,000 53,003 566,771 Cash paid 27,723 34,021 42,505 54,184 188,000 28,000 374,433 Shares issued (1) 12,848 — — — — 18,006 30,854 Payable in installments 15,212 39,584 19,137 20,554 60,000 6,997 161,484 __________________ (1) The total of non-controlling interests and shares issued represents the acquisition of subsidiaries presented in the statement of changes in net investment. The Group estimated the fair value of significant assets acquired using the following valuation methods: Item 2023 2022 2021 Nature Valuation method Customer relationship 33,477 45,922 119,466 A loyal relationship between the acquirees and its customers, which translates into recurring purchases of products and services Multi Period Excess Earnings Method (MPEEM) Inventories 214,724 212,513 449,865 Inventories Selling price less all expenses related to the distribution of that good Purchase Contracts — — 8,598 Favorable purchase contract with suppliers Multi Period Excess Earnings Method (MPEEM) Brand — 8,764 5,930 Private label products (Produtiva, Union and Cenagral) Relief from Royalty method 248,201 267,199 583,859 The following tables discloses the Group’s revenues and profit or loss for the year assuming all of the acquisitions completed during the year were completed at the beginning of such year: 2023 2022 2021 Revenues 9,697,932 8,163,196 6,231,988 Profit (loss) for the year (187,082) 151,235 81,742 Acquisitions in the year ended June 30, 2023: Revenues Profit (loss) Period from Provecampo 37,291 1,656 August 2022 Floema 205,451 12,628 August 2022 Casa Trevo 136,003 20,787 September 2022 Sollo Sul 182,385 (10,064) December 2022 Cromo 210 (719) May 2023 Total 561,340 24,288 Acquisitions in the year ended June 30, 2022: Revenues Profit Period from Produttiva 175,335 14,152 September, 2021 Cenagro 156,722 6,372 September, 2021 Cenagral 26,267 (1,013) September, 2021 Union Agro 156,000 23,428 November, 2021 Agrozap 132,911 1,632 January, 2022 Nova Geração 7,179 (3,828) January, 2022 Total 654,414 40,743 Acquisitions in the year ended June 30, 2021: Revenues Profit Period from Integra 144,087 (4,773) September, 2020 Agrobiológica 39,839 17,217 September, 2020 Qualiciclo 210,521 (12,571) December, 2020 América 74,446 9,304 January, 2021 Cultiva 15,263 (9,185) April, 2021 Desempar 130,771 (13,409) April, 2021 Total 614,927 (13,417) The following table summarizes the preliminary allocation of the consideration transferred as of July 29, 2022: Cash paid 67,112 Payable in installments 35,000 Fair value of consideration transferred 102,112 (-) Fair value of net assets acquired: Assets Cash and cash equivalents 8,249 Trade receivables 43,462 Inventories 81,972 Property, plant and equipment 1,504 Intangible 34,731 Other assets 8,157 178,076 Liabilities Borrowings 32,455 Trade payables 61,178 Other liabilities 42,205 135,838 Total identifiable net assets at fair value 42,238 Preliminary goodwill arising on acquisition 72,545 |
Disclosure of number and weighted average exercise prices of share options | As of the date of the issuance of the consolidated financial statements, 1,634,852 RSUs have been granted, with each RSU entitling the holder to one share of Lavoro stock after the vesting period, as detailed below: Options granted Granted options 1,689,632 Canceled (92,556) 1,597,076 |
Background information (Details
Background information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | |||
Consideration transferred | R$ 302468 | R$ 326598 | R$ 566771 |
Product Concentration Risk | Revenue Benchmark | Fertilizers | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 21% | 20% |
Significant accounting polici_4
Significant accounting policies - Summary of Subsidiary Interests (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lavoro Agro Limited | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 0% | 0% |
Lavoro America Inc. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | ||
Lavoro Merger Sub II Limited | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 0% | 0% |
Lavoro Agro Cayman II | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 0% | 0% |
Lavoro Latam SL | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 0% | 0% |
Malinas S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 0% | 0% |
Lavoro Agro Holding S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 100% | 100% |
Lavoro Agrocomercial S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 97.42% | 97.42% | 91.65% |
Agrocontato Comércio e Representações de Produtos Agropecuários S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 97.42% | 97.42% | 91.65% |
PCO Comércio, Importação, Exportação e Agropecuária Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 97.42% | 97.42% | 91.65% |
Agrovenci Distribuidora de Insumos Agrícolas Ltda. (MS) | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.22% | 0% |
Produtiva Agronegócios Comércio e Representação Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 87.40% | 87.40% | 0% |
Facirolli Comércio e Representação S.A. (Agrozap) | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 62.61% | 62.61% | 0% |
Agrovenci Comércio, Importação, Exportação e Agropecuária Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 97.42% | 97.42% | 91.65% |
Central Agrícola Rural Distribuidora de Defensivos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 97.42% | 97.42% | 91.65% |
Distribuidora Pitangueiras de Produtos Agropecuários S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.22% | 86.22% |
Produtec Comércio e Representações S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 87.40% | 87.40% | 72.42% |
Qualiciclo Agrícola S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 66.75% | 61% | 61% |
Desempar Participações Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Denorpi Distribuidora de Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Deragro Distribuidora de Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Desempar Tecnologia Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Futuragro Distribuidora de Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Plenafértil Distribuidora de Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Realce Distribuidora de Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 86.20% | 86.20% |
Cultivar Agrícola Comércio, Importação e Exportação S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 63.47% | 63.47% |
América Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 0% | 97.42% | 91.65% |
Integra Soluções Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 0% | 87.40% | 72.42% |
Nova Geração | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 66.75% | 61% | 0% |
Floema Soluções Nutricionais de Cultivos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 62.61% | 0% | 0% |
Casa Trevo Participações S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 79.14% | 0% | 0% |
Casa Trevo Comercial Agrícola LTDA. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 79.14% | 0% | 0% |
CATR Comercial Agrícola LTDA | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 79.14% | 0% | 0% |
Sollo Sul Insumos Agrícolas Ltda | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 0% | 0% |
Dissul Insumos Agrícolas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 93.11% | 0% | 0% |
Lavoro Agro Fundo de Investimento nas Cadeias Produtivas Agroindustriais | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 5% | 0% | 0% |
Lavoro Colombia S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 0% |
Crop Care Colombia | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 100% |
Agricultura y Servicios S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 97.61% |
Fertilizantes Liquidos y Servicios S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 0% | 0% | 97.61% |
Grupo Cenagro S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 0% |
Cenagral S.A.S | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 0% |
Grupo Gral S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 100% |
Agrointegral Andina S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 100% |
Servigral Praderas S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 100% |
Agroquímicos para la Agricultura Colombiana S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 94.90% | 100% |
Provecampo S.A.S. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 94.90% | 0% | 0% |
Crop Care Holding S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 100% | 100% |
Perterra Insumos Agropecuários S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 100% | 100% |
Araci Administradora de Bens S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 100% | 100% |
Union Agro S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 73% | 73% | 0% |
Agrobiológica Sustentabilidade S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 65.13% | 65.13% | 65.13% |
Agrobiológica Soluções Naturais Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 65.13% | 65.13% | 65.13% |
Cromo Indústria Química LTDA. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 70% | 0% | 0% |
Perterra Trading S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100% | 100% | 0% |
Summary of significant accoun_3
Summary of significant accounting policies - Schedule of Cash Flows (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flow Adjustments [Line Items] | |||
Acquisition of subsidiary, net of cash acquired | R$ 157442 | R$ 198305 | R$ 280374 |
Acquisition of non-controlling interests | 0 | 0 | |
Net cash flows used in investing activities | (220,734) | (244,693) | (311,072) |
Acquisition of non-controlling interests | (100,887) | (34,351) | (79,493) |
Net cash flows provided by financing activities | 448,733 | 299,119 | 561,006 |
Interest paid on acquisition of subsidiary | R$ 4875 | (14,907) | (2,797) |
Net cash flows from operating activities | (259,471) | 51,027 | |
Previously Reported | |||
Cash Flow Adjustments [Line Items] | |||
Acquisition of subsidiary, net of cash acquired | (213,212) | (283,171) | |
Acquisition of non-controlling interests | (34,351) | (79,493) | |
Net cash flows used in investing activities | (293,951) | (393,362) | |
Acquisition of non-controlling interests | 0 | 0 | |
Net cash flows provided by financing activities | 333,470 | 640,499 | |
Interest paid on acquisition of subsidiary | 0 | 0 | |
Net cash flows from operating activities | (244,564) | 53,824 | |
Revision of Prior Period, Reclassification, Adjustment | |||
Cash Flow Adjustments [Line Items] | |||
Acquisition of subsidiary, net of cash acquired | 14,907 | 2,797 | |
Acquisition of non-controlling interests | 34,351 | 79,493 | |
Net cash flows used in investing activities | 49,258 | 82,290 | |
Acquisition of non-controlling interests | (34,351) | (79,493) | |
Net cash flows provided by financing activities | (34,351) | (79,493) | |
Interest paid on acquisition of subsidiary | (14,907) | (2,797) | |
Net cash flows from operating activities | R$ 14907 | R$ 2797 |
Segment information - Segment A
Segment information - Segment Assets and Liabilities (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of operating segments [line items] | ||||
Cash equivalents | R$ 564294 | R$ 254413 | ||
Trade receivables | 2,708,540 | 1,834,353 | ||
Inventories | 1,868,204 | 1,749,041 | ||
Advances to suppliers | 192,119 | 383,257 | ||
Total assets | 7,523,984 | 5,685,763 | ||
Trade payables | 2,604,405 | 2,301,700 | ||
Total borrowings | 965,475 | 710,552 | R$ 242404 | R$ 168571 |
Advances from customers | 488,578 | 320,560 | ||
Total liabilities and equity | 7,523,984 | 5,685,763 | ||
Operating segments | ||||
Disclosure of operating segments [line items] | ||||
Cash equivalents | 325,332 | 254,413 | ||
Trade receivables | 2,780,989 | 1,874,828 | ||
Inventories | 1,900,912 | 1,749,041 | ||
Advances to suppliers | 192,185 | 386,164 | ||
Total assets | 7,290,568 | 5,730,248 | ||
Trade payables | 2,660,377 | 2,342,165 | ||
Total borrowings | 965,475 | 710,552 | ||
Advances from customers | 488,578 | 322,070 | ||
Total liabilities and equity | 7,290,568 | 5,730,248 | ||
Operating segments | Brazil | ||||
Disclosure of operating segments [line items] | ||||
Cash equivalents | 207,744 | 195,343 | ||
Trade receivables | 2,194,853 | 1,379,808 | ||
Inventories | 1,547,384 | 1,451,541 | ||
Advances to suppliers | 176,831 | 354,163 | ||
Total assets | 5,926,380 | 4,602,679 | ||
Trade payables | 2,304,043 | 1,988,518 | ||
Total borrowings | 824,869 | 588,403 | ||
Advances from customers | 478,313 | 318,404 | ||
Total liabilities and equity | 5,926,380 | 4,602,679 | ||
Operating segments | LATAM | ||||
Disclosure of operating segments [line items] | ||||
Cash equivalents | 22,003 | 16,951 | ||
Trade receivables | 343,745 | 324,152 | ||
Inventories | 202,239 | 174,532 | ||
Advances to suppliers | 2,266 | 1,202 | ||
Total assets | 683,894 | 619,238 | ||
Trade payables | 309,828 | 311,612 | ||
Total borrowings | 71,562 | 39,755 | ||
Advances from customers | 7,020 | 164 | ||
Total liabilities and equity | 683,894 | 619,238 | ||
Operating segments | LATAM | ||||
Disclosure of operating segments [line items] | ||||
Cash equivalents | 95,585 | 42,119 | ||
Trade receivables | 242,391 | 170,868 | ||
Inventories | 151,289 | 122,968 | ||
Advances to suppliers | 13,088 | 30,799 | ||
Total assets | 680,294 | 508,331 | ||
Trade payables | 46,506 | 42,035 | ||
Total borrowings | 69,045 | 82,394 | ||
Advances from customers | 3,245 | 3,502 | ||
Total liabilities and equity | 680,294 | 508,331 | ||
Corporate | ||||
Disclosure of operating segments [line items] | ||||
Cash equivalents | 238,962 | |||
Trade receivables | 0 | |||
Inventories | 0 | |||
Advances to suppliers | 0 | |||
Total assets | 449,779 | |||
Trade payables | 455 | |||
Total borrowings | 0 | |||
Advances from customers | 0 | |||
Total liabilities and equity | 449,779 | |||
Eliminations between segments | ||||
Disclosure of operating segments [line items] | ||||
Cash equivalents | 0 | 0 | ||
Trade receivables | (72,449) | (40,475) | ||
Inventories | (32,708) | 0 | ||
Advances to suppliers | (66) | (2,907) | ||
Total assets | (216,363) | (44,485) | ||
Trade payables | (56,427) | (40,465) | ||
Total borrowings | 0 | 0 | ||
Advances from customers | 0 | (1,510) | ||
Total liabilities and equity | R$ 216361 | R$ 44485 |
Segment information - Segment P
Segment information - Segment Profit Or Loss (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | |||
Revenue | R$ 9347413 | R$ 7746534 | R$ 5098545 |
Cost of goods sold | (7,616,606) | (6,421,037) | (4,362,657) |
Sales, general and administrative expenses | (1,228,128) | (1,022,388) | (619,506) |
Other operating (expenses) income, net | (275,810) | 56,759 | 15,618 |
Finance costs, net | (617,807) | (219,444) | (85,793) |
Income tax expense | 172,256 | (32,662) | (24,676) |
Net investment of the parent/ Equity holders of the parent | (218,682) | 107,762 | 21,531 |
Depreciation and amortization | (167,486) | (145,512) | (92,966) |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue | 9,668,465 | 7,849,877 | 5,104,257 |
Cost of goods sold | (7,904,950) | (6,524,380) | (4,368,369) |
Sales, general and administrative expenses | (1,224,565) | (1,022,388) | (619,506) |
Other operating (expenses) income, net | 48,006 | 56,759 | 15,618 |
Finance costs, net | (588,842) | (219,444) | (85,793) |
Income tax expense | 161,136 | (32,662) | (24,676) |
Net investment of the parent/ Equity holders of the parent | 159,250 | 107,762 | 21,531 |
Depreciation and amortization | (167,486) | (145,512) | (92,966) |
Operating segments | Brazil | |||
Disclosure of operating segments [line items] | |||
Revenue | 7,829,305 | 6,351,223 | 4,198,570 |
Cost of goods sold | (6,543,315) | (5,336,991) | (3,653,813) |
Sales, general and administrative expenses | (951,888) | (809,144) | (476,578) |
Other operating (expenses) income, net | 48,135 | 42,608 | 13,363 |
Finance costs, net | (525,056) | (217,277) | (68,772) |
Income tax expense | 208,331 | 3,973 | (8,412) |
Net investment of the parent/ Equity holders of the parent | 65,512 | 34,392 | 4,358 |
Depreciation and amortization | (142,139) | (127,674) | (85,518) |
Operating segments | LATAM | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,206,341 | 1,166,415 | 858,837 |
Cost of goods sold | (1,009,721) | (975,756) | (704,738) |
Sales, general and administrative expenses | (120,936) | (120,902) | (101,081) |
Other operating (expenses) income, net | (1,640) | (6,081) | 184 |
Finance costs, net | (15,371) | (9,639) | (13,524) |
Income tax expense | (22,263) | (20,865) | (15,538) |
Net investment of the parent/ Equity holders of the parent | 36,410 | 33,172 | 24,140 |
Depreciation and amortization | (11,792) | (11,295) | (4,519) |
Operating segments | LATAM | |||
Disclosure of operating segments [line items] | |||
Revenue | 632,819 | 332,239 | 46,850 |
Cost of goods sold | (351,914) | (211,633) | (9,818) |
Sales, general and administrative expenses | (151,741) | (92,342) | (41,847) |
Other operating (expenses) income, net | 1,511 | 20,232 | 2,071 |
Finance costs, net | (48,415) | 7,472 | (3,497) |
Income tax expense | (24,932) | (15,770) | (726) |
Net investment of the parent/ Equity holders of the parent | 57,328 | 40,198 | (6,967) |
Depreciation and amortization | (13,555) | (6,543) | (2,930) |
Corporate | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | ||
Cost of goods sold | 0 | ||
Sales, general and administrative expenses | (3,563) | ||
Other operating (expenses) income, net | (323,816) | ||
Finance costs, net | (28,965) | ||
Income tax expense | 0 | ||
Net investment of the parent/ Equity holders of the parent | (356,344) | ||
Depreciation and amortization | 0 | ||
Eliminations between segments | |||
Disclosure of operating segments [line items] | |||
Revenue | (321,052) | (103,343) | (5,712) |
Cost of goods sold | 288,344 | 103,343 | 5,712 |
Sales, general and administrative expenses | 0 | 0 | |
Other operating (expenses) income, net | 0 | 0 | |
Finance costs, net | 0 | 0 | |
Income tax expense | 11,120 | 0 | |
Net investment of the parent/ Equity holders of the parent | (21,588) | 0 | |
Depreciation and amortization | R$ 0 | R$ 0 |
Cash equivalents (Details)
Cash equivalents (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure Of Detailed Information About Cash Equivalents [Line Items] | ||
Cash equivalents | R$ 564294 | R$ 254413 |
Brazil, Brazil Real | ||
Disclosure Of Detailed Information About Cash Equivalents [Line Items] | ||
Annual yield | 77% | |
Cash equivalents | R$ 304292 | 237,462 |
Colombia, Pesos | ||
Disclosure Of Detailed Information About Cash Equivalents [Line Items] | ||
Annual yield | 13.25% | |
Cash equivalents | R$ 22003 | 16,951 |
United States of America, Dollars | ||
Disclosure Of Detailed Information About Cash Equivalents [Line Items] | ||
Annual yield | 3.65% | |
Cash equivalents | R$ 237999 | R$ 0 |
Trade receivables - Summary of
Trade receivables - Summary of Trade Receivables (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of operating segments [line items] | ||||
Allowance for expected credit losses | R$ 188072 | R$ 151114 | R$ 111969 | R$ 89173 |
Total | 2,708,540 | 1,834,353 | ||
Current | 2,667,057 | 1,794,602 | ||
Non-current | 41,483 | 39,751 | ||
Brazil | ||||
Disclosure of operating segments [line items] | ||||
Trade receivables | 2,525,845 | 1,639,637 | ||
Colombia | ||||
Disclosure of operating segments [line items] | ||||
Trade receivables | R$ 370767 | R$ 345830 |
Trade receivables - Narrative (
Trade receivables - Narrative (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of provision matrix [line items] | |||
Trade receivables, discount rate | 0.96% | 1% | 1% |
Amount of trade receivables transferred to FIAGRO | R$ 167278 | ||
Amount of trade receivables transferred | R$ 822 | R$ 0 |
Trade receivables - Allowance f
Trade receivables - Allowance for Expected Credit Losses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for Expected Credit Losses [Roll Forward] | |||
Allowance for expected credit losses, opening balance | R$ 151114 | R$ 111969 | R$ 89173 |
Allowance for expected credit losses | (36,769) | (27,393) | (11,094) |
Allowance for credit losses from acquisitions | (11,702) | (16,274) | (12,623) |
Trade receivables write-off | 9,500 | 3,492 | 3,058 |
Exchange rate translation adjustment | 2,013 | 1,030 | (2,137) |
Allowance for expected credit losses, ending balance | R$ 188072 | R$ 151114 | R$ 111969 |
Trade receivables - Aging Analy
Trade receivables - Aging Analysis of Trade Receivables (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of provision matrix [line items] | ||||
Allowance for expected credit losses | R$ 188072 | R$ 151114 | R$ 111969 | R$ 89173 |
Total | 2,708,540 | 1,834,353 | ||
Previously stated | ||||
Disclosure of provision matrix [line items] | ||||
Allowance for expected credit losses | (151,182) | |||
Not past due | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables | 2,089,543 | 1,534,224 | ||
1 to 60 days | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables | 169,556 | 93,436 | ||
61 to 180 days | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables | 359,958 | 240,320 | ||
181 to 365 days | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables | 90,734 | 7,157 | ||
Over 365 days | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables | R$ 186821 | R$ 110398 |
Financial instruments - Summary
Financial instruments - Summary of Financial Instruments (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Amortized cost | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | R$ 4517497 | R$ 3519632 |
Amortized cost | Trade payables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 2,578,248 | 2,301,700 |
Amortized cost | Lease liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 184,419 | 155,253 |
Amortized cost | Borrowings | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 965,475 | 710,552 |
Amortized cost | Obligations to FIAGRO quota holders | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 150,018 | |
Amortized cost | Payables for the acquisition of subsidiaries | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 275,209 | 164,431 |
Amortized cost | Derivative financial instruments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Amortized cost | Salaries and social charges | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 223,376 | 187,285 |
Amortized cost | Commodity forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Amortized cost | Dividends payable | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 1,619 | 411 |
Amortized cost | Warrant liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | |
Amortized cost | Liability for FPA Shares | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 139,133 | |
Fair value through profit or loss | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 287,521 | 34,159 |
Fair value through profit or loss | Trade payables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Fair value through profit or loss | Lease liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Fair value through profit or loss | Borrowings | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Fair value through profit or loss | Obligations to FIAGRO quota holders | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | |
Fair value through profit or loss | Payables for the acquisition of subsidiaries | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Fair value through profit or loss | Derivative financial instruments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 44,008 | 7,121 |
Fair value through profit or loss | Salaries and social charges | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | |
Fair value through profit or loss | Commodity forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 207,067 | 27,038 |
Fair value through profit or loss | Dividends payable | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Fair value through profit or loss | Warrant liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 36,446 | |
Fair value through profit or loss | Liability for FPA Shares | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | |
Amortized cost | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 2,847,742 | 1,835,697 |
Amortized cost | Trade receivables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 2,708,540 | 1,834,353 |
Amortized cost | Commodity forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Amortized cost | Derivative financial instruments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Amortized cost | Restricted cash | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 139,202 | 1,344 |
Fair value through profit or loss | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 155,271 | 40,477 |
Fair value through profit or loss | Trade receivables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Fair value through profit or loss | Commodity forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 114,861 | 32,800 |
Fair value through profit or loss | Derivative financial instruments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 40,410 | 7,677 |
Fair value through profit or loss | Restricted cash | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | R$ 0 | R$ 0 |
Financial and capital risk ma_3
Financial and capital risk management - Narrative (Details) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 BRL (R$) | Sep. 30, 2023 brazilianRealPerUSDollar | Mar. 01, 2023 brazilianRealPerUSDollar | Jun. 30, 2022 BRL (R$) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum net debt to adjusted EBITDA ratio | 2.2 | 2.2 | ||
Derivative financial instruments, net | R$ | R$ 3598 | R$ 556 | ||
Closing foreign exchange rate | brazilianRealPerUSDollar | 5.21 | |||
Interest rate risk | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Derivative financial instruments, net | R$ | R$ 0 | R$ 0 | ||
Credit risk | Trade receivables | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Period for review of existing customer accounts | 12 months | |||
Currency risk | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Possible increase in risk variable, percent | 25% | |||
Remote increase in risk variable, percent | 50% | |||
Currency risk | Changes In Foreign Exchange Rates | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Closing foreign exchange rate | brazilianRealPerUSDollar | 5.73 | |||
Floating interest rate | Interest rate risk | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Possible increase in risk variable, percent | 25% | |||
Remote increase in risk variable, percent | 50% |
Financial and capital risk ma_4
Financial and capital risk management - Ratings And Level Of Guarantee Requirement (Details) | Jun. 30, 2023 ha |
Bottom of range | Medium-sized farmers | |
Disclosure of credit risk exposure [line items] | |
Customer size, planted acreage (in hectares) | 100 |
Top of range | Medium-sized farmers | |
Disclosure of credit risk exposure [line items] | |
Customer size, planted acreage (in hectares) | 10,000 |
Credit risk | Trade receivables | AA & A | Very small | |
Disclosure of credit risk exposure [line items] | |
Risk exposure associated with instruments sharing characteristic | 18% |
Credit risk | Trade receivables | AA & A | Very small | Other | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 0% |
Credit risk | Trade receivables | AA & A | Very small | Bottom of range | Medium-sized farmers | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 80% |
Credit risk | Trade receivables | AA & A | Very small | Top of range | Medium-sized farmers | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 90% |
Credit risk | Trade receivables | B | Medium | |
Disclosure of credit risk exposure [line items] | |
Risk exposure associated with instruments sharing characteristic | 49% |
Credit risk | Trade receivables | B | Medium | Medium-sized farmers | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 100% |
Credit risk | Trade receivables | B | Medium | Other | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 30% |
Credit risk | Trade receivables | C & D | High | |
Disclosure of credit risk exposure [line items] | |
Risk exposure associated with instruments sharing characteristic | 15% |
Credit risk | Trade receivables | C & D | High | Medium-sized farmers | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 100% |
Credit risk | Trade receivables | C & D | High | Other | |
Disclosure of credit risk exposure [line items] | |
% Of guarantees required on sales | 60% |
Credit risk | Trade receivables | Simplified | |
Disclosure of credit risk exposure [line items] | |
Risk exposure associated with instruments sharing characteristic | 18% |
Financial and capital risk ma_5
Financial and capital risk management - Maximum Exposure To Credit Risk (Details) - Credit risk - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | R$ 2900658 | R$ 2217610 |
Trade receivables (current and non-current) | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 2,708,539 | 1,834,353 |
Advances to suppliers | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | R$ 192119 | R$ 383257 |
Financial and capital risk ma_6
Financial and capital risk management - Maturity Analysis Of Financial Liabilities And Gross Settled Derivative Financial Instruments (Details) - Liquidity risk - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade payables | R$ 2767901 | R$ 2377256 |
Lease liabilities | 202,723 | 165,715 |
Borrowings | 1,030,700 | 741,017 |
Obligations to FIAGRO quota holders | 159,722 | |
Payables for the acquisition of subsidiaries | 279,931 | 169,984 |
Commodity forward contracts | 210,040 | 27,729 |
Derivative financial instruments | 44,639 | 7,303 |
Salaries and social charges | 226,583 | 188,083 |
Dividends payable | 1,642 | 422 |
Warrant liabilities | 36,446 | |
Liability for FPA Shares | 139,133 | |
Financial liabilities | 5,099,460 | 3,677,509 |
Up to 1 year | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade payables | 2,765,354 | 2,377,256 |
Lease liabilities | 91,419 | 72,228 |
Borrowings | 982,318 | 709,266 |
Obligations to FIAGRO quota holders | 159,722 | |
Payables for the acquisition of subsidiaries | 224,689 | 114,540 |
Commodity forward contracts | 210,040 | 27,729 |
Derivative financial instruments | 44,639 | 7,303 |
Salaries and social charges | 226,583 | 188,083 |
Dividends payable | 1,642 | 422 |
Warrant liabilities | 36,446 | |
Liability for FPA Shares | 0 | |
Financial liabilities | 4,742,852 | 3,496,827 |
From 1 to 5 years | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade payables | 2,547 | 0 |
Lease liabilities | 111,304 | 93,487 |
Borrowings | 48,382 | 31,751 |
Obligations to FIAGRO quota holders | 0 | |
Payables for the acquisition of subsidiaries | 55,242 | 55,444 |
Commodity forward contracts | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Salaries and social charges | 0 | 0 |
Dividends payable | 0 | 0 |
Warrant liabilities | 0 | |
Liability for FPA Shares | 139,133 | |
Financial liabilities | R$ 356608 | R$ 180682 |
Financial and capital risk ma_7
Financial and capital risk management - Sensitivity Analysis - Exposure to Interest Rates (Details) - Interest rate risk R$ in Thousands | 12 Months Ended |
Jun. 30, 2023 BRL (R$) | |
Floating interest rate | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Expense on profit or loss, Scenario 1 | R$ 160627 |
Expense on profit or loss, Scenario 2 | 190,838 |
Expense on profit or loss, Scenario 3 | R$ 221049 |
CDI rate | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Current Index | 12.65% |
Expense on profit or loss, Scenario 1 | R$ 149124 |
Expense on profit or loss, Scenario 2 | 177,153 |
Expense on profit or loss, Scenario 3 | R$ 205183 |
IBR Rate | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Current Index | 12.75% |
Expense on profit or loss, Scenario 1 | R$ 11503 |
Expense on profit or loss, Scenario 2 | 13,685 |
Expense on profit or loss, Scenario 3 | R$ 15866 |
Financial and capital risk ma_8
Financial and capital risk management - Sensitivity Analysis - Exposure to Exchange Rates (Details) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2023 BRL (R$) brazilianRealPerUSDollar | Mar. 01, 2023 brazilianRealPerUSDollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Closing foreign exchange rate | brazilianRealPerUSDollar | 5.21 | |
Currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Expense on profit or loss, Scenario 1 | R$ 51 | |
Expense on profit or loss, Scenario 2 | 681 | |
Expense on profit or loss, Scenario 3 | 1,412 | |
Currency risk | Net impacts on commercial operations | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Expense on profit or loss, Scenario 1 | (697) | |
Expense on profit or loss, Scenario 2 | 9,238 | |
Expense on profit or loss, Scenario 3 | R$ 19172 | |
Currency risk | Trade receivables | U. S. Dollars | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Closing foreign exchange rate | brazilianRealPerUSDollar | 4,736,200 | |
Expense on profit or loss, Scenario 1 | R$ 3692 | |
Expense on profit or loss, Scenario 2 | 48,980 | |
Expense on profit or loss, Scenario 3 | R$ 101652 | |
Currency risk | Trade payables | U. S. Dollars | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Closing foreign exchange rate | brazilianRealPerUSDollar | 4,736,200 | |
Expense on profit or loss, Scenario 1 | R$ 5747 | |
Expense on profit or loss, Scenario 2 | (76,243) | |
Expense on profit or loss, Scenario 3 | R$ 158233 | |
Currency risk | Borrowings | U. S. Dollars | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Closing foreign exchange rate | brazilianRealPerUSDollar | 4,736,200 | |
Expense on profit or loss, Scenario 1 | R$ 2752 | |
Expense on profit or loss, Scenario 2 | 36,501 | |
Expense on profit or loss, Scenario 3 | R$ 75753 | |
Currency risk | Derivative financial instruments | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Closing foreign exchange rate | brazilianRealPerUSDollar | 4,736,200 | |
Expense on profit or loss, Scenario 1 | R$ 646 | |
Expense on profit or loss, Scenario 2 | (8,557) | |
Expense on profit or loss, Scenario 3 | R$ 17760 |
Financial and capital risk ma_9
Financial and capital risk management - Sensitivity Analysis - Exposure to Commodity Price (Details) | 12 Months Ended |
Jun. 30, 2023 BRL (R$) T brazilian_real_per_bag uS_dollar_per_bushel | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (23,255) |
Current Risk | R$ 83369000 |
+25% Current, Impact | (20,843,000) |
+50% Current, Impact | (41,681,000) |
Trading income (expense) on derivative financial instruments | R$ 80990 |
Net sold | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (374,917) |
Current Risk | R$ 8837000 |
+25% Current, Impact | 2,210,000 |
+50% Current, Impact | R$ 4422000 |
Net exposure on grain contracts | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | 351,662,000 |
Current Risk | R$ 92206000 |
+25% Current, Impact | (23,053,000) |
+50% Current, Impact | R$ 46103000 |
Corn | Purchased, current year | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | 248,796 |
Current Risk | R$ 140542000 |
Average of contract prices | brazilian_real_per_bag | 67.42 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 35.34 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 44.18 |
+25% Current, Impact | R$ 35136000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 53.01 |
+50% Current, Impact | R$ 70271000 |
Corn | Sold, current year | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (248,999) |
Current Risk | R$ 54190000 |
Average of contract prices | brazilian_real_per_bag | 48.39 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 34.96 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 43.70 |
+25% Current, Impact | R$ 13548000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 52.44 |
+50% Current, Impact | R$ 27095000 |
Corn | Purchased, next year | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | 54,433 |
Current Risk | R$ 9499000 |
Average of contract prices | brazilian_real_per_bag | 55.35 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 43.11 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 53.89 |
+25% Current, Impact | R$ 2375000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 64.67 |
+50% Current, Impact | R$ 4750000 |
Corn | Sold, next ear | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (6,500) |
Current Risk | R$ 170000 |
Average of contract prices | brazilian_real_per_bag | 47.44 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 49.28 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 61.60 |
+25% Current, Impact | R$ 43000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | brazilian_real_per_bag | 73.92 |
+50% Current, Impact | R$ 85000 |
Corn | Sold on derivatives | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (55,645) |
Current Risk | R$ 11598000 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 60.24 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 75.30 |
+25% Current, Impact | R$ 2900000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 90.36 |
+50% Current, Impact | R$ 5799000 |
Soybean | Purchased, next year | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | 449,847 |
Current Risk | R$ 634000 |
Average of contract prices | uS_dollar_per_bushel | 127.86 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 127.95 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 159.94 |
+25% Current, Impact | R$ 159000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 191.93 |
+50% Current, Impact | R$ 317000 |
Soybean | Sold, next ear | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (145,915) |
Current Risk | R$ 4449000 |
Average of contract prices | uS_dollar_per_bushel | 143.80 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 145.71 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 182.14 |
+25% Current, Impact | R$ 1112000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 218.57 |
+50% Current, Impact | R$ 2225000 |
Soybean | Sold on derivatives | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Volume purchased or sold (tons) | T | (319,271) |
Current Risk | R$ 2761000 |
Current Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 13.25 |
+25% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 16.56 |
+25% Current, Impact | R$ 690000 |
+50% Current, Market (Corn: R$/bag; Soybean: US$/bushel) | uS_dollar_per_bushel | 19.86 |
+50% Current, Impact | R$ 1377000 |
Financial and capital risk m_10
Financial and capital risk management - Derivative Financial Investments (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial instruments, net | R$ 3598 | R$ 556 |
Options (put/call of commodities) | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial instruments, net | (513) | (5,662) |
Forwards (R$/US$) (i) | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial instruments, net | 8,837 | (224) |
Swap (R$/US$) | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial instruments, net | R$ 11922 | R$ 6442 |
Inventories (Details)
Inventories (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Inventories [Abstract] | ||
Goods for resale | R$ 1885941 | R$ 1759227 |
(-) Allowance for inventory losses | (17,737) | (10,186) |
Total | R$ 1868204 | R$ 1749041 |
Taxes recoverable (Details)
Taxes recoverable (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Tax Assets [Abstract] | ||
State VAT ("ICMS") | R$ 78805 | R$ 63671 |
Brazilian federal contributions | 239,815 | 59,975 |
Colombian federal contributions | 21,284 | 21,016 |
Total | 339,904 | 144,662 |
Current | 57,001 | 93,725 |
Non-current | R$ 282903 | R$ 50937 |
Taxes recoverable - Narrative (
Taxes recoverable - Narrative (Details) | 12 Months Ended |
Jun. 30, 2023 BRL (R$) | |
Tax Assets [Abstract] | |
Fiscal incentive reserve | R$ 358834 |
Fiscal benefit, not yet allocated | 680,396 |
Income tax credit | R$ 244717 |
Commodity forward contracts __3
Commodity forward contracts – Barter transactions - Fair value of commodity forward contracts (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets | ||
Commodity forward contracts | R$ 114861 | R$ 32800 |
Liabilities | ||
Commodity forward contracts | (207,067) | (27,038) |
Purchase Contracts | ||
Assets | ||
Commodity forward contracts | 53,695 | 16,054 |
Liabilities | ||
Commodity forward contracts | (206,881) | (14,995) |
Selling Contracts | ||
Assets | ||
Commodity forward contracts | 61,166 | 16,746 |
Liabilities | ||
Commodity forward contracts | R$ 186 | R$ 12043 |
Commodity forward contracts __4
Commodity forward contracts – Barter transactions - Main assumptions used in fair value calculation (Details) | Jun. 30, 2023 T uS_dollar_per_bushel brazilian_real_per_bag brazilian_real_per_ton | Jun. 30, 2022 T brazilian_real_per_bag uS_dollar_per_bushel brazilian_real_per_ton |
Purchase Contracts | Soybean | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Outstanding Volume (tons) | T | 449,847 | 81,379 |
Average of contract prices R$/Bag | brazilian_real_per_bag | 127.95 | 147.65 |
Average Market Prices (Corn: R$/bag; Soybean: US$/bushel) | 13.16 | 14.52 |
Soybean market premium (US$ per bushel) | (0.3) | 0.4 |
Freight (R$/ton) | brazilian_real_per_ton | 293,650 | 358,550 |
Purchase Contracts | Corn | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Outstanding Volume (tons) | T | 303,432 | 181,475 |
Average of contract prices R$/Bag | brazilian_real_per_bag | 65.25 | 67.47 |
Average Market Prices (Corn: R$/bag; Soybean: US$/bushel) | 56.04 | 86.95 |
Freight (R$/ton) | brazilian_real_per_ton | 282,230 | 381,000 |
Selling Contracts | Soybean | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Outstanding Volume (tons) | T | 145,915 | 70,191 |
Average of contract prices R$/Bag | brazilian_real_per_bag | 145.71 | 147.46 |
Average Market Prices (Corn: R$/bag; Soybean: US$/bushel) | 13.16 | 14.56 |
Soybean market premium (US$ per bushel) | 0 | 0.5 |
Freight (R$/ton) | brazilian_real_per_ton | 0 | 367,460 |
Selling Contracts | Corn | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Outstanding Volume (tons) | T | 255,499 | 114,063 |
Average of contract prices R$/Bag | brazilian_real_per_bag | 48.36 | 67.45 |
Average Market Prices (Corn: R$/bag; Soybean: US$/bushel) | 56.04 | 87.06 |
Freight (R$/ton) | brazilian_real_per_ton | 284,590 | 451,830 |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities - Narrative (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Line Items] | |||
Percentage of accumulated cost of right-of-use assets which come from business acquisitions | 5% | ||
Amortization expense | R$ 56236 | R$ 50171 | |
Interest on leases | R$ 16977 | R$ 13217 | R$ 5076 |
Bottom of range | |||
Leases [Line Items] | |||
Term (in years) | 3 years | ||
Top of range | |||
Leases [Line Items] | |||
Term (in years) | 8 years |
Right-of-use assets and lease_4
Right-of-use assets and lease liabilities - Lease term depreciation (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Vehicles | |
Leases [Line Items] | |
Lease, right-of-use asset, useful life | 3 years 4 months 24 days |
Buildings | |
Leases [Line Items] | |
Lease, right-of-use asset, useful life | 4 years 10 months 24 days |
Machines and equipment | |
Leases [Line Items] | |
Lease, right-of-use asset, useful life | 3 years |
Right-of-use assets and lease_5
Right-of-use assets and lease liabilities - Right-of-use assets (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Line Items] | ||
Right-of-use assets | R$ 173679 | R$ 140179 |
Cost | ||
Leases [Line Items] | ||
Right-of-use assets | 335,203 | 245,308 |
Accumulated depreciation | ||
Leases [Line Items] | ||
Right-of-use assets | (161,524) | (105,129) |
Vehicles | ||
Leases [Line Items] | ||
Right-of-use assets | 65,492 | 45,848 |
Vehicles | Cost | ||
Leases [Line Items] | ||
Right-of-use assets | 120,052 | 74,604 |
Vehicles | Accumulated depreciation | ||
Leases [Line Items] | ||
Right-of-use assets | (54,560) | (28,756) |
Buildings | ||
Leases [Line Items] | ||
Right-of-use assets | 64,183 | 64,030 |
Buildings | Cost | ||
Leases [Line Items] | ||
Right-of-use assets | 141,915 | 124,594 |
Buildings | Accumulated depreciation | ||
Leases [Line Items] | ||
Right-of-use assets | (77,732) | (60,564) |
Machinery and equipment | ||
Leases [Line Items] | ||
Right-of-use assets | 44,004 | 30,301 |
Machinery and equipment | Cost | ||
Leases [Line Items] | ||
Right-of-use assets | 73,236 | 46,110 |
Machinery and equipment | Accumulated depreciation | ||
Leases [Line Items] | ||
Right-of-use assets | R$ 29232 | R$ 15809 |
Right-of-use assets and lease_6
Right-of-use assets and lease liabilities - Lease liabilities (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Line Items] | ||
Total | R$ 184419 | R$ 155253 |
Current | 85,865 | 69,226 |
Non-current | 98,554 | 86,027 |
Vehicles | ||
Leases [Line Items] | ||
Total | 68,420 | 49,588 |
Buildings | ||
Leases [Line Items] | ||
Total | 85,839 | 80,768 |
Machinery and equipment | ||
Leases [Line Items] | ||
Total | R$ 30160 | R$ 24897 |
Property, plant and equipment -
Property, plant and equipment - Estimated Useful Lives (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 5 years |
Building and Improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 25 years |
Machines, equipment and facilities | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 10 years |
Furnitures and fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 10 years |
Computer equipments | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 5 years |
Property, plant and equipment_2
Property, plant and equipment - Summary of Property, Plant and Equipment (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | R$ 196588 | R$ 146205 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 9,502 | 10,108 |
Building and Improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 127,863 | 91,573 |
Machines, equipment and facilities | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 48,317 | 35,118 |
Furnitures and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 8,412 | 6,861 |
Computer equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 2,494 | 2,545 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 284,171 | 205,820 |
Cost | Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 40,851 | 36,316 |
Cost | Building and Improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 142,561 | 99,541 |
Cost | Machines, equipment and facilities | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 75,134 | 53,699 |
Cost | Furnitures and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 15,610 | 11,892 |
Cost | Computer equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 10,015 | 4,372 |
Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | (87,583) | (59,615) |
Accumulated depreciation | Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | (31,349) | (26,208) |
Accumulated depreciation | Building and Improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | (14,698) | (7,968) |
Accumulated depreciation | Machines, equipment and facilities | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | (26,817) | (18,581) |
Accumulated depreciation | Furnitures and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | (7,198) | (5,031) |
Accumulated depreciation | Computer equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | R$ 7521 | R$ 1827 |
Property, plant and equipment_3
Property, plant and equipment - Narrative (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, plant and equipment [abstract] | ||
Depreciation, property, plant and equipment | R$ 16408 | R$ 9697 |
Intangible assets - Estimated U
Intangible assets - Estimated Useful Lives (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Customer relationship | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated Useful Life | 9 years |
Purchase contacts | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated Useful Life | 4 years |
Software and other | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated Useful Life | 5 years |
Intangible assets - Summary of
Intangible assets - Summary of Intangible Assets and Goodwill (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | R$ 724321 | ||
Ending balance | 807,192 | R$ 724321 | |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 451,974 | ||
Ending balance | 546,665 | 451,974 | |
Customer relationship | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 211,975 | ||
Ending balance | 211,646 | 211,975 | |
Purchase contacts | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 14,917 | ||
Ending balance | 7,093 | 14,917 | |
Software and other | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 45,455 | ||
Ending balance | 41,788 | 45,455 | |
Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 831,670 | 706,552 | R$ 402508 |
Additions | 5,025 | 17,793 | 32,015 |
Business combinations | 150,698 | 126,034 | 272,029 |
Translation adjustment | (1,722) | (4,178) | |
Other | (3,201) | (14,531) | |
Ending balance | 982,470 | 831,670 | 706,552 |
Cost | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 451,974 | 396,716 | 259,526 |
Additions | 0 | 0 | 0 |
Business combinations | 98,890 | 71,348 | 137,190 |
Translation adjustment | (998) | (1,559) | |
Other | (3,201) | (14,531) | |
Ending balance | 546,665 | 451,974 | 396,716 |
Cost | Customer relationship | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 301,477 | 256,225 | 138,179 |
Additions | 0 | 0 | 0 |
Business combinations | 50,600 | 45,922 | 118,046 |
Translation adjustment | (666) | (670) | |
Other | 0 | 0 | |
Ending balance | 351,412 | 301,477 | 256,225 |
Cost | Software and other | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 56,373 | 38,580 | 4,599 |
Additions | 5,025 | 17,793 | 32,015 |
Business combinations | 0 | 0 | 1,966 |
Translation adjustment | (10) | 0 | |
Other | 0 | 0 | |
Ending balance | 61,388 | 56,373 | 38,580 |
Cost | Purchase contacts | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 21,846 | 15,031 | 204 |
Additions | 0 | 0 | 0 |
Business combinations | 1,207 | 8,764 | 14,827 |
Translation adjustment | (48) | (1,949) | |
Other | 0 | 0 | |
Ending balance | 23,005 | 21,846 | 15,031 |
Amortization for the year | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (107,349) | (49,742) | (20,024) |
Amortization for the year | 67,928 | 57,607 | 29,718 |
Ending balance | (175,277) | (107,349) | (49,742) |
Amortization for the year | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 0 | 0 | 0 |
Amortization for the year | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Amortization for the year | Customer relationship | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (89,502) | (45,760) | (19,344) |
Amortization for the year | 50,263 | 43,742 | 26,416 |
Ending balance | (139,765) | (89,502) | (45,760) |
Amortization for the year | Software and other | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (10,918) | (2,897) | (676) |
Amortization for the year | 8,682 | 8,021 | 2,221 |
Ending balance | (19,600) | (10,918) | (2,897) |
Amortization for the year | Purchase contacts | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (6,929) | (1,085) | (4) |
Amortization for the year | 8,983 | 5,844 | 1,081 |
Ending balance | R$ 15912 | R$ 6929 | R$ 1085 |
Impairment testing of non-fin_3
Impairment testing of non-financial assets (Details) | 12 Months Ended |
Jun. 30, 2023 BRL (R$) | |
Disclosure of information for cash-generating units [line items] | |
Impairment loss | R$ 0 |
Colombia CGU | |
Disclosure of information for cash-generating units [line items] | |
Revenue growth rate | 15.20% |
Operating margin average | 16% |
Pre Tax discount rate | 12% |
Recoverable amount | R$ 854088000 |
North CGU | |
Disclosure of information for cash-generating units [line items] | |
Revenue growth rate | 11.50% |
Operating margin average | 15.10% |
Pre Tax discount rate | 13.20% |
Recoverable amount | R$ 1034123000 |
East CGU | |
Disclosure of information for cash-generating units [line items] | |
Revenue growth rate | 13.40% |
Operating margin average | 11.60% |
Pre Tax discount rate | 13.20% |
Recoverable amount | R$ 2053650000 |
South CGU | |
Disclosure of information for cash-generating units [line items] | |
Revenue growth rate | 15.60% |
Operating margin average | 21.90% |
Pre Tax discount rate | 13.20% |
Recoverable amount | R$ 2212679000 |
Biological products and special fertilizers CGU | |
Disclosure of information for cash-generating units [line items] | |
Revenue growth rate | 21.20% |
Operating margin average | 24.70% |
Pre Tax discount rate | 13.20% |
Recoverable amount | R$ 1643008000 |
Trade payables - Components of
Trade payables - Components of trade payables (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of operating segments [line items] | ||
Trade payables | R$ 2578248 | R$ 2301700 |
Current trade payables | 2,575,701 | 2,301,700 |
Non-current trade payables | 2,547 | 0 |
Brazil | ||
Disclosure of operating segments [line items] | ||
Trade payables | 2,268,420 | 1,990,089 |
Colombia | ||
Disclosure of operating segments [line items] | ||
Trade payables | R$ 309828 | R$ 311611 |
Trade payables - Narrative (Det
Trade payables - Narrative (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of transactions between related parties [line items] | |||
Trade payables, interest rate | 1.58% | 1.18% | 1.18% |
Bottom of range | |||
Disclosure of transactions between related parties [line items] | |||
Trade payables, supplier finance, interest rate | 1% | ||
Top of range | |||
Disclosure of transactions between related parties [line items] | |||
Trade payables, supplier finance, interest rate | 1.50% | ||
Supplier installments | |||
Disclosure of transactions between related parties [line items] | |||
Guarantee payables | R$ 920870 | R$ 506750 |
Borrowings - Borrowings Outstan
Borrowings - Borrowings Outstanding (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | R$ 965475 | R$ 710552 | R$ 242404 | R$ 168571 |
Colombia | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 71,562 | 39,755 | ||
Brazil | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | R$ 893913 | R$ 670797 |
Borrowings - Debt composition (
Borrowings - Debt composition (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||||
Total | R$ 965475 | R$ 710552 | R$ 242404 | R$ 168571 |
Current | 922,636 | 681,217 | ||
Non-current | 42,839 | 29,335 | ||
Amount of trade receivables transferred | 822 | 0 | ||
Brazil | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | 893,913 | 670,797 | ||
Colombia | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | 71,562 | 39,755 | ||
Brazil, Brazil Real | Brazil | Floating interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | 725,563 | 525,099 | ||
Brazil, Brazil Real | Brazil | Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | R$ 8590 | R$ 0 | ||
Brazil, Brazil Real | Brazil | Weighted average | Floating interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Average interest rate | 16.62% | 14.45% | ||
Brazil, Brazil Real | Brazil | Weighted average | Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Average interest rate | 8.76% | 0% | ||
United States of America, Dollars | Brazil | Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | R$ 159760 | R$ 145698 | ||
United States of America, Dollars | Brazil | Weighted average | Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Average interest rate | 4.03% | 3.16% | ||
Colombia, Pesos | Colombia | Floating interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | R$ 69862 | R$ 39755 | ||
Colombia, Pesos | Colombia | Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | R$ 1700 | R$ 0 | ||
Colombia, Pesos | Colombia | Weighted average | Floating interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Average interest rate | 15.43% | 14.26% | ||
Colombia, Pesos | Colombia | Weighted average | Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Average interest rate | 15.72% | 0% |
Borrowings - Movement (Details)
Borrowings - Movement (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
At June 30, 2022 | R$ 710552 | R$ 242404 | R$ 168571 |
Proceeds from borrowings | 1,449,445 | 615,984 | 466,280 |
Repayment of principal amount | (1,456,017) | (299,613) | (472,909) |
Accrued interest | 319,557 | 74,081 | 33,971 |
Borrowings from acquired companies | 25,756 | 85,097 | 76,915 |
Exchange rate translation | 11,921 | ||
Interest payment | (95,739) | (7,401) | (30,424) |
At June 30, 2023 | R$ 965475 | R$ 710552 | R$ 242404 |
Borrowings - Maturity (Details)
Borrowings - Maturity (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Total | R$ 42839 | R$ 29335 |
2023 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | 0 | 4,509 |
2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | 726 | 23,842 |
2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | 15,452 | 929 |
2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | 1,376 | 55 |
2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | R$ 25285 | R$ 0 |
Obligations to FIAGRO quota h_2
Obligations to FIAGRO quota holders (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2022 | |
CDI rate | Interest rate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, adjustment to interest rate basis | 12.65% | |
IBR Rate | Interest rate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, adjustment to interest rate basis | 12.75% | |
FIAGRO | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets recognised in entity's financial statements in relation to structured entities | R$ 160000 | |
Proportion of ownership interest of outstanding quotas | 5% | |
Proportion of ownership interests held by non-controlling interests (in percent) | 95% | |
FIAGRO | Obligations to FIAGRO quota holders | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings maturity, term | 3 years | |
Borrowings grace period | 24 months | |
FIAGRO | Obligations to FIAGRO quota holders | CDI rate | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, adjustment to interest rate basis | 2.45% | |
FIAGRO | Obligations to FIAGRO quota holders | CDI rate | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, adjustment to interest rate basis | 8% | |
FIAGRO | Subordinated quotas | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets recognised in entity's financial statements in relation to structured entities | R$ 8100 | |
FIAGRO | Mezzanine quotas | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets recognised in entity's financial statements in relation to structured entities | R$ 56000 |
Payables for the acquisition _2
Payables for the acquisition of subsidiaries (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Payables For Acquisition Of Subsidiaries [Abstract] | |||
Acquisition of subsidiary, net of cash acquired | R$ 157442 | R$ 198305 | R$ 280374 |
Installment payments for acquisitions completed in previous years | R$ 101889 | R$ 125439 | R$ 81396 |
Acquisition of subsidiaries - F
Acquisition of subsidiaries - Fair value of identifiable assets and liabilities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||||||||||||||||
Oct. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | May 31, 2023 | Feb. 27, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | Aug. 04, 2022 | Jul. 29, 2022 | Apr. 06, 2022 | Jan. 07, 2022 | Sep. 02, 2021 | Aug. 31, 2021 | Apr. 01, 2021 | Mar. 31, 2021 | Dec. 30, 2020 | Nov. 17, 2020 | Sep. 01, 2020 | Aug. 28, 2020 | |
Assets | ||||||||||||||||||||
Cash equivalents | R$ 71994 | R$ 133806 | R$ 175455 | |||||||||||||||||
Trade receivables | 203,871 | 310,955 | 691,983 | |||||||||||||||||
Inventories | 214,724 | 212,513 | 449,865 | |||||||||||||||||
Other assets | 63,839 | 51,341 | 86,962 | |||||||||||||||||
Property, plant and equipment | 8,525 | 32,738 | 25,854 | |||||||||||||||||
Intangible assets | 33,477 | 54,686 | 141,262 | |||||||||||||||||
Identifiable assets acquired | 596,430 | 796,039 | 1,571,381 | |||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 229,963 | 294,536 | 934,372 | |||||||||||||||||
Borrowings | 25,756 | 85,097 | 76,915 | |||||||||||||||||
Provision for contingencies | 10,245 | 11,362 | ||||||||||||||||||
Other liabilities | 114,089 | 68,753 | 92,894 | |||||||||||||||||
Liabilities assumed on acquisition | 380,053 | 459,748 | 1,104,181 | |||||||||||||||||
Total identifiable net assets at fair value | 216,376 | 336,291 | 467,200 | R$ 574059 | ||||||||||||||||
Non-controlling interests | (14,389) | (62,746) | (36,164) | |||||||||||||||||
Goodwill arising on acquisition | 100,481 | 71,348 | 135,735 | |||||||||||||||||
Gain on bargain purchase | 0 | 18,295 | 0 | |||||||||||||||||
Consideration transferred | 302,468 | 326,598 | 566,771 | |||||||||||||||||
Cash paid | 127,547 | 206,672 | 374,433 | |||||||||||||||||
Shares issued | 12,296 | 30,307 | 30,854 | |||||||||||||||||
Payable in installments | R$ 162625 | R$ 89619 | R$ 161484 | |||||||||||||||||
Floema Soluções Nutricionais de Cultivos Ltda. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 24167 | |||||||||||||||||||
Trade receivables | 19,892 | |||||||||||||||||||
Inventories | 52,133 | |||||||||||||||||||
Other assets | 11,739 | |||||||||||||||||||
Property, plant and equipment | 1,152 | |||||||||||||||||||
Intangible assets | 14,879 | |||||||||||||||||||
Identifiable assets acquired | 123,962 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 88,902 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 1,543 | |||||||||||||||||||
Liabilities assumed on acquisition | 90,445 | |||||||||||||||||||
Total identifiable net assets at fair value | 33,517 | |||||||||||||||||||
Non-controlling interests | ||||||||||||||||||||
Goodwill arising on acquisition | 25,796 | |||||||||||||||||||
Consideration transferred | 59,313 | |||||||||||||||||||
Cash paid | 25,294 | |||||||||||||||||||
Shares issued | 12,296 | |||||||||||||||||||
Payable in installments | R$ 21723 | |||||||||||||||||||
Casa Trevo Participações S.A. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 12306 | |||||||||||||||||||
Trade receivables | 32,106 | |||||||||||||||||||
Inventories | 61,734 | |||||||||||||||||||
Other assets | 4,750 | |||||||||||||||||||
Property, plant and equipment | 867 | |||||||||||||||||||
Intangible assets | 1,676 | |||||||||||||||||||
Identifiable assets acquired | 113,439 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 48,070 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Provision for contingencies | 10,245 | |||||||||||||||||||
Other liabilities | 13,659 | |||||||||||||||||||
Liabilities assumed on acquisition | 71,974 | |||||||||||||||||||
Total identifiable net assets at fair value | 41,465 | |||||||||||||||||||
Non-controlling interests | (6,220) | |||||||||||||||||||
Goodwill arising on acquisition | 9,625 | |||||||||||||||||||
Consideration transferred | 44,870 | |||||||||||||||||||
Cash paid | 23,619 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 21251 | |||||||||||||||||||
Provecampo S.A.S. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 10479 | |||||||||||||||||||
Trade receivables | 7,499 | |||||||||||||||||||
Inventories | 11,320 | |||||||||||||||||||
Other assets | 23 | |||||||||||||||||||
Property, plant and equipment | 983 | |||||||||||||||||||
Intangible assets | 12,117 | |||||||||||||||||||
Identifiable assets acquired | 42,421 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 10,980 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 6,910 | |||||||||||||||||||
Liabilities assumed on acquisition | 17,890 | |||||||||||||||||||
Total identifiable net assets at fair value | 24,531 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 2,010 | |||||||||||||||||||
Consideration transferred | 26,541 | |||||||||||||||||||
Cash paid | 17,682 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 8859 | |||||||||||||||||||
Sollo Sul Insumos Agrícolas Ltda | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 16307 | |||||||||||||||||||
Trade receivables | 132,467 | |||||||||||||||||||
Inventories | 84,226 | |||||||||||||||||||
Other assets | 46,663 | |||||||||||||||||||
Property, plant and equipment | 2,372 | |||||||||||||||||||
Intangible assets | 2,083 | |||||||||||||||||||
Identifiable assets acquired | 284,118 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 80,811 | |||||||||||||||||||
Borrowings | 25,756 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 87,921 | |||||||||||||||||||
Liabilities assumed on acquisition | 194,488 | |||||||||||||||||||
Total identifiable net assets at fair value | 89,630 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 57,719 | |||||||||||||||||||
Consideration transferred | 147,349 | |||||||||||||||||||
Cash paid | 52,832 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 94517 | |||||||||||||||||||
Cromo Indústria Química LTDA. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 8735 | |||||||||||||||||||
Trade receivables | 11,907 | |||||||||||||||||||
Inventories | 5,311 | |||||||||||||||||||
Other assets | 664 | |||||||||||||||||||
Property, plant and equipment | 3,151 | |||||||||||||||||||
Intangible assets | 2,722 | |||||||||||||||||||
Identifiable assets acquired | 32,490 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 1,200 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 4,056 | |||||||||||||||||||
Liabilities assumed on acquisition | 5,256 | |||||||||||||||||||
Total identifiable net assets at fair value | 27,233 | |||||||||||||||||||
Non-controlling interests | (8,169) | |||||||||||||||||||
Goodwill arising on acquisition | 5,331 | |||||||||||||||||||
Consideration transferred | 24,395 | |||||||||||||||||||
Cash paid | 8,120 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 16275 | |||||||||||||||||||
Produtiva Agronegócios Comércio e Representações S.A. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 53699 | |||||||||||||||||||
Trade receivables | 27,610 | |||||||||||||||||||
Inventories | 46,261 | |||||||||||||||||||
Other assets | 8,472 | |||||||||||||||||||
Property, plant and equipment | 1,223 | |||||||||||||||||||
Intangible assets | 26,074 | |||||||||||||||||||
Identifiable assets acquired | 163,339 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 77,063 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 8,898 | |||||||||||||||||||
Liabilities assumed on acquisition | 85,961 | |||||||||||||||||||
Total identifiable net assets at fair value | 77,378 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 9,491 | |||||||||||||||||||
Consideration transferred | 86,869 | |||||||||||||||||||
Cash paid | 36,385 | |||||||||||||||||||
Shares issued | 22,500 | |||||||||||||||||||
Payable in installments | R$ 27984 | |||||||||||||||||||
Grupo Cenagro S.A.S. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 2142 | |||||||||||||||||||
Trade receivables | 11,792 | |||||||||||||||||||
Inventories | 22,670 | |||||||||||||||||||
Other assets | 12,225 | |||||||||||||||||||
Property, plant and equipment | 1,266 | |||||||||||||||||||
Intangible assets | 2,602 | |||||||||||||||||||
Identifiable assets acquired | 52,697 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 17,008 | |||||||||||||||||||
Borrowings | 3,045 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 18,410 | |||||||||||||||||||
Liabilities assumed on acquisition | 38,463 | |||||||||||||||||||
Total identifiable net assets at fair value | 14,234 | |||||||||||||||||||
Non-controlling interests | (2,847) | |||||||||||||||||||
Goodwill arising on acquisition | 11,468 | |||||||||||||||||||
Consideration transferred | 22,855 | |||||||||||||||||||
Cash paid | 16,724 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | 6,131 | |||||||||||||||||||
Cenagral S.A.S | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | 1,064 | |||||||||||||||||||
Trade receivables | 7,492 | |||||||||||||||||||
Inventories | 5,833 | |||||||||||||||||||
Other assets | 1,023 | |||||||||||||||||||
Property, plant and equipment | 363 | |||||||||||||||||||
Intangible assets | 7,437 | |||||||||||||||||||
Identifiable assets acquired | 23,212 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 2,097 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 5,750 | |||||||||||||||||||
Liabilities assumed on acquisition | 7,847 | |||||||||||||||||||
Total identifiable net assets at fair value | 15,365 | |||||||||||||||||||
Non-controlling interests | (3,073) | |||||||||||||||||||
Goodwill arising on acquisition | 9,003 | |||||||||||||||||||
Consideration transferred | 21,295 | |||||||||||||||||||
Cash paid | 15,376 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 5919 | |||||||||||||||||||
Union Agro S.A. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 66256 | |||||||||||||||||||
Trade receivables | 117,882 | |||||||||||||||||||
Inventories | 42,435 | |||||||||||||||||||
Other assets | 4,524 | |||||||||||||||||||
Property, plant and equipment | 26,659 | |||||||||||||||||||
Intangible assets | 8,293 | |||||||||||||||||||
Identifiable assets acquired | 266,049 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 24,750 | |||||||||||||||||||
Borrowings | 25,157 | |||||||||||||||||||
Provision for contingencies | 11,362 | |||||||||||||||||||
Other liabilities | 9,923 | |||||||||||||||||||
Liabilities assumed on acquisition | 71,192 | |||||||||||||||||||
Total identifiable net assets at fair value | 194,857 | |||||||||||||||||||
Non-controlling interests | (52,611) | |||||||||||||||||||
Gain on bargain purchase | 18,295 | |||||||||||||||||||
Consideration transferred | 123,951 | |||||||||||||||||||
Cash paid | 103,800 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 20151 | |||||||||||||||||||
Facirolli Comércio e Representações Ltda | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 9028 | |||||||||||||||||||
Trade receivables | 98,201 | |||||||||||||||||||
Inventories | 85,683 | |||||||||||||||||||
Other assets | 22,204 | |||||||||||||||||||
Property, plant and equipment | 2,642 | |||||||||||||||||||
Intangible assets | 6,015 | |||||||||||||||||||
Identifiable assets acquired | 223,773 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 136,086 | |||||||||||||||||||
Borrowings | 50,701 | |||||||||||||||||||
Provision for contingencies | 0 | |||||||||||||||||||
Other liabilities | 25,029 | |||||||||||||||||||
Liabilities assumed on acquisition | 211,816 | |||||||||||||||||||
Total identifiable net assets at fair value | 11,957 | |||||||||||||||||||
Non-controlling interests | (4,215) | |||||||||||||||||||
Goodwill arising on acquisition | 33,218 | |||||||||||||||||||
Consideration transferred | 40,960 | |||||||||||||||||||
Cash paid | 18,813 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 22147 | |||||||||||||||||||
Nova Geração Comércio de Produtos Agrícolas Ltda | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 1617 | |||||||||||||||||||
Trade receivables | 47,978 | |||||||||||||||||||
Inventories | 9,631 | |||||||||||||||||||
Other assets | 2,893 | |||||||||||||||||||
Property, plant and equipment | 585 | |||||||||||||||||||
Intangible assets | 4,265 | |||||||||||||||||||
Identifiable assets acquired | 66,969 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 37,532 | |||||||||||||||||||
Borrowings | 6,194 | |||||||||||||||||||
Provision for contingencies | ||||||||||||||||||||
Other liabilities | 743 | |||||||||||||||||||
Liabilities assumed on acquisition | 44,469 | |||||||||||||||||||
Total identifiable net assets at fair value | 22,500 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 8,168 | |||||||||||||||||||
Consideration transferred | 30,668 | |||||||||||||||||||
Cash paid | 15,574 | |||||||||||||||||||
Shares issued | 7,807 | |||||||||||||||||||
Payable in installments | R$ 7287 | |||||||||||||||||||
Integra Soluções Agrícolas Ltda. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 19905 | |||||||||||||||||||
Trade receivables | 21,543 | |||||||||||||||||||
Inventories | 30,774 | |||||||||||||||||||
Other assets | 5,489 | |||||||||||||||||||
Property, plant and equipment | 832 | |||||||||||||||||||
Intangible assets | 8,398 | |||||||||||||||||||
Identifiable assets acquired | 86,941 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 47,082 | |||||||||||||||||||
Borrowings | 48 | |||||||||||||||||||
Other liabilities | 6,287 | |||||||||||||||||||
Liabilities assumed on acquisition | 53,417 | |||||||||||||||||||
Total identifiable net assets at fair value | 33,524 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 22,259 | |||||||||||||||||||
Consideration transferred | 55,783 | |||||||||||||||||||
Cash paid | 27,723 | |||||||||||||||||||
Shares issued | 12,848 | |||||||||||||||||||
Payable in installments | R$ 15212 | |||||||||||||||||||
Qualiciclo Agrícola S.A. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 42259 | |||||||||||||||||||
Trade receivables | 81,377 | |||||||||||||||||||
Inventories | 110,946 | |||||||||||||||||||
Other assets | 31,940 | |||||||||||||||||||
Property, plant and equipment | 9,914 | |||||||||||||||||||
Intangible assets | 16,648 | |||||||||||||||||||
Identifiable assets acquired | 293,084 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 205,861 | |||||||||||||||||||
Borrowings | 5,518 | |||||||||||||||||||
Other liabilities | 4,873 | |||||||||||||||||||
Liabilities assumed on acquisition | 216,252 | |||||||||||||||||||
Total identifiable net assets at fair value | 76,832 | |||||||||||||||||||
Non-controlling interests | (22,458) | |||||||||||||||||||
Goodwill arising on acquisition | 19,231 | |||||||||||||||||||
Consideration transferred | 73,605 | |||||||||||||||||||
Cash paid | 34,021 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 39584 | |||||||||||||||||||
América Insumos Agrícolas Ltda. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 7576 | |||||||||||||||||||
Trade receivables | 76,123 | |||||||||||||||||||
Inventories | 58,188 | |||||||||||||||||||
Other assets | 3,840 | |||||||||||||||||||
Property, plant and equipment | 603 | |||||||||||||||||||
Intangible assets | 40,816 | |||||||||||||||||||
Identifiable assets acquired | 187,146 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 114,474 | |||||||||||||||||||
Borrowings | 0 | |||||||||||||||||||
Other liabilities | 18,871 | |||||||||||||||||||
Liabilities assumed on acquisition | 133,345 | |||||||||||||||||||
Total identifiable net assets at fair value | 53,801 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 7,841 | |||||||||||||||||||
Consideration transferred | 61,642 | |||||||||||||||||||
Cash paid | 42,505 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 19137 | |||||||||||||||||||
Cultivar Agrícola e Comércio, Importação e Exportação Ltda | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 44223 | |||||||||||||||||||
Trade receivables | 231,784 | |||||||||||||||||||
Inventories | 68,471 | |||||||||||||||||||
Other assets | 11,505 | |||||||||||||||||||
Property, plant and equipment | 2,770 | |||||||||||||||||||
Intangible assets | 8,375 | |||||||||||||||||||
Identifiable assets acquired | 367,128 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 217,486 | |||||||||||||||||||
Borrowings | 50,870 | |||||||||||||||||||
Other liabilities | 16,795 | |||||||||||||||||||
Liabilities assumed on acquisition | 285,151 | |||||||||||||||||||
Total identifiable net assets at fair value | 81,977 | |||||||||||||||||||
Non-controlling interests | (13,706) | |||||||||||||||||||
Goodwill arising on acquisition | 6,467 | |||||||||||||||||||
Consideration transferred | 74,738 | |||||||||||||||||||
Cash paid | 54,184 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 20554 | |||||||||||||||||||
Desempar Participações Ltda. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 59428 | |||||||||||||||||||
Trade receivables | 251,002 | |||||||||||||||||||
Inventories | 178,697 | |||||||||||||||||||
Other assets | 34,119 | |||||||||||||||||||
Property, plant and equipment | 7,652 | |||||||||||||||||||
Intangible assets | 55,579 | |||||||||||||||||||
Identifiable assets acquired | 586,477 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 348,213 | |||||||||||||||||||
Borrowings | 17,231 | |||||||||||||||||||
Other liabilities | 45,966 | |||||||||||||||||||
Liabilities assumed on acquisition | 411,410 | |||||||||||||||||||
Total identifiable net assets at fair value | 175,067 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 72,933 | |||||||||||||||||||
Consideration transferred | 248,000 | |||||||||||||||||||
Cash paid | 188,000 | |||||||||||||||||||
Shares issued | 0 | |||||||||||||||||||
Payable in installments | R$ 60000 | |||||||||||||||||||
Agrobiológica Soluções Naturais Ltda. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | R$ 2064 | |||||||||||||||||||
Trade receivables | 30,154 | |||||||||||||||||||
Inventories | 2,789 | |||||||||||||||||||
Other assets | 69 | |||||||||||||||||||
Property, plant and equipment | 4,083 | |||||||||||||||||||
Intangible assets | 11,446 | |||||||||||||||||||
Identifiable assets acquired | 50,605 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
Trade payables | 1,256 | |||||||||||||||||||
Borrowings | 3,248 | |||||||||||||||||||
Other liabilities | 102 | |||||||||||||||||||
Liabilities assumed on acquisition | 4,606 | |||||||||||||||||||
Total identifiable net assets at fair value | 45,999 | |||||||||||||||||||
Non-controlling interests | 0 | |||||||||||||||||||
Goodwill arising on acquisition | 7,004 | |||||||||||||||||||
Consideration transferred | 53,003 | |||||||||||||||||||
Cash paid | 28,000 | |||||||||||||||||||
Shares issued | 18,006 | |||||||||||||||||||
Payable in installments | R$ 6997 |
Acquisition of subsidiaries -_2
Acquisition of subsidiaries - Fair value of significant assets acquired (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Business Combinations Disclosure [Abstract] | |||
Customer relationship | R$ 33477 | R$ 45922 | R$ 119466 |
Inventories | 214,724 | 212,513 | 449,865 |
Purchase Contracts | 0 | 0 | 8,598 |
Brand | 0 | 8,764 | 5,930 |
Significant assets recognised as of acquisition date | R$ 248201 | R$ 267199 | R$ 583859 |
Acquisition of subsidiaries - N
Acquisition of subsidiaries - Narrative (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | May 31, 2023 | Apr. 30, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | Aug. 31, 2022 | Aug. 25, 2022 | Aug. 04, 2022 | Jul. 29, 2022 | Jun. 30, 2022 | Apr. 06, 2022 | Jan. 07, 2022 | Oct. 28, 2021 | Sep. 02, 2021 | Aug. 31, 2021 | Jun. 30, 2021 | Apr. 01, 2021 | Mar. 31, 2021 | Dec. 30, 2020 | Nov. 17, 2020 | Sep. 01, 2020 | Aug. 28, 2020 |
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Deferred tax liability (asset) | R$ 316731 | R$ 193495 | R$ 114748 | |||||||||||||||||||
Consideration transferred | 302,468 | 326,598 | 566,771 | |||||||||||||||||||
Cash paid | 127,547 | 206,672 | 374,433 | |||||||||||||||||||
Shares issued | R$ 12296 | R$ 30307 | R$ 30854 | |||||||||||||||||||
Produtec Comércio e Representações S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 8.40% | |||||||||||||||||||||
Agrobiológica Sustentabilidade S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 34.90% | |||||||||||||||||||||
Provecampo S.A.S. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 94.90% | |||||||||||||||||||||
Consideration transferred | R$ 26541 | |||||||||||||||||||||
Cash paid | 17,682 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Floema Soluções Nutricionais de Cultivos Ltda. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 62.61% | |||||||||||||||||||||
Consideration transferred | R$ 59313 | |||||||||||||||||||||
Cash paid | 25,294 | |||||||||||||||||||||
Shares issued | R$ 12296 | |||||||||||||||||||||
Casa Trevo Participações S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 79.14% | |||||||||||||||||||||
Consideration transferred | R$ 44870 | |||||||||||||||||||||
Cash paid | 23,619 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Sollo Sul Insumos Agrícolas Ltda | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 93.11% | |||||||||||||||||||||
Consideration transferred | R$ 147349 | |||||||||||||||||||||
Cash paid | 52,832 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Cromo Indústria Química LTDA. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 70% | |||||||||||||||||||||
Consideration transferred | R$ 24395 | |||||||||||||||||||||
Cash paid | 8,120 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Produtiva Agronegócios Comércio e Representações S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 87.40% | |||||||||||||||||||||
Contingent consideration recognised as of acquisition date | R$ 4733 | |||||||||||||||||||||
Consideration transferred | 86,869 | |||||||||||||||||||||
Cash paid | 36,385 | |||||||||||||||||||||
Shares issued | R$ 22500 | |||||||||||||||||||||
Grupo Cenagro S.A.S. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 94.90% | |||||||||||||||||||||
Consideration transferred | R$ 22855 | |||||||||||||||||||||
Cash paid | 16,724 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Cenagral S.A.S | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 94.90% | |||||||||||||||||||||
Consideration transferred | R$ 21295 | |||||||||||||||||||||
Cash paid | 15,376 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Union Agro S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 73% | |||||||||||||||||||||
Consideration transferred | R$ 123951 | |||||||||||||||||||||
Cash paid | 103,800 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Facirolli Comércio e Representação S.A. (Agrozap) | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 62.61% | |||||||||||||||||||||
Contingent consideration recognised as of acquisition date | R$ 4029 | |||||||||||||||||||||
Nova Geração Comércio de Produtos Agrícolas Ltda | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 66.75% | |||||||||||||||||||||
Consideration transferred | R$ 30668 | |||||||||||||||||||||
Cash paid | 15,574 | |||||||||||||||||||||
Shares issued | 7,807 | |||||||||||||||||||||
Deferred consideration payable | R$ 11931 | |||||||||||||||||||||
Nova Geração Comércio de Produtos Agrícolas Ltda | Previously stated | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Cash paid | R$ 10930 | |||||||||||||||||||||
Integra Soluções Agrícolas Ltda. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 72.42% | |||||||||||||||||||||
Consideration transferred | R$ 55783 | |||||||||||||||||||||
Cash paid | 27,723 | |||||||||||||||||||||
Shares issued | R$ 12848 | |||||||||||||||||||||
Percentage of consideration paid in cash | 70.30% | |||||||||||||||||||||
Percentage of consideration settled in shares | 29.70% | |||||||||||||||||||||
Consideration transferred, acquisition date fair value of shares issued | R$ 12848 | |||||||||||||||||||||
Integra Soluções Agrícolas Ltda. | Produtec Comércio e Representações S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||||||||||
Qualiciclo Agrícola S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 66.75% | |||||||||||||||||||||
Contingent consideration recognised as of acquisition date | R$ 13844 | |||||||||||||||||||||
Consideration transferred | 73,605 | |||||||||||||||||||||
Cash paid | 34,021 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
América Insumos Agrícolas Ltda. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||||||||||
Consideration transferred | R$ 61642 | |||||||||||||||||||||
Cash paid | 42,505 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Cultivar Agrícola e Comércio, Importação e Exportação Ltda | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 93.11% | 26.24% | 63.47% | |||||||||||||||||||
Contingent consideration recognised as of acquisition date | R$ 5752 | |||||||||||||||||||||
Consideration transferred | 74,738 | |||||||||||||||||||||
Cash paid | 54,184 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Desempar Participações Ltda. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 93.11% | |||||||||||||||||||||
Consideration transferred | R$ 248000 | |||||||||||||||||||||
Cash paid | 188,000 | |||||||||||||||||||||
Shares issued | R$ 0 | |||||||||||||||||||||
Agrobiológica Soluções Naturais Ltda. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 65.13% | |||||||||||||||||||||
Consideration transferred | R$ 53003 | |||||||||||||||||||||
Cash paid | 28,000 | |||||||||||||||||||||
Shares issued | R$ 18006 | |||||||||||||||||||||
Percentage of consideration paid in cash | 55.20% | |||||||||||||||||||||
Percentage of consideration settled in shares | 44.80% | |||||||||||||||||||||
Consideration transferred, acquisition date fair value of shares issued | R$ 18006 | |||||||||||||||||||||
Agrobiológica Soluções Naturais Ltda. | Agrobiológica Sustentabilidade S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||||||||||
NS Agro S.A. | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Percentage of voting equity interests acquired | 82% | |||||||||||||||||||||
Deferred consideration payable | R$ 664210 | |||||||||||||||||||||
Provecampo S.A.S., Cenagro, and Cenegral | ||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||
Deferred tax liability (asset) | R$ 5298 |
Acquisition of subsidiaries - R
Acquisition of subsidiaries - Results as if acquisitions happened at the beginning of period (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combinations Disclosure [Abstract] | |||
Revenues | R$ 9697932 | R$ 8163196 | R$ 6231988 |
Profit (loss) for the year | R$ 187082 | R$ 151235 | R$ 81742 |
Acquisition of subsidiaries -_3
Acquisition of subsidiaries - Results since acquisition (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about business combination [line items] | |||
Revenues | R$ 561340 | R$ 654414 | R$ 614927 |
Profit (loss) | 24,288 | 40,743 | (13,417) |
Provecampo S.A.S. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 37,291 | ||
Profit (loss) | 1,656 | ||
Floema Soluções Nutricionais de Cultivos Ltda. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 205,451 | ||
Profit (loss) | 12,628 | ||
Casa Trevo Participações S.A. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 136,003 | ||
Profit (loss) | 20,787 | ||
Sollo Sul Insumos Agrícolas Ltda | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 182,385 | ||
Profit (loss) | (10,064) | ||
Cromo Indústria Química LTDA. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 210 | ||
Profit (loss) | R$ 719 | ||
Produtiva Agronegócios Comércio e Representações S.A. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 175,335 | ||
Profit (loss) | 14,152 | ||
Grupo Cenagro S.A.S. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 156,722 | ||
Profit (loss) | 6,372 | ||
Cenagral S.A.S | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 26,267 | ||
Profit (loss) | (1,013) | ||
Union Agro S.A. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 156,000 | ||
Profit (loss) | 23,428 | ||
Facirolli Comércio e Representação S.A. (Agrozap) | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 132,911 | ||
Profit (loss) | 1,632 | ||
Nova Geração Comércio de Produtos Agrícolas Ltda | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 7,179 | ||
Profit (loss) | R$ 3828 | ||
Integra Soluções Agrícolas Ltda. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 144,087 | ||
Profit (loss) | (4,773) | ||
Agrobiológica Soluções Naturais Ltda. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 39,839 | ||
Profit (loss) | 17,217 | ||
Qualiciclo Agrícola S.A. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 210,521 | ||
Profit (loss) | (12,571) | ||
América Insumos Agrícolas Ltda. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 74,446 | ||
Profit (loss) | 9,304 | ||
Cultivar Agrícola e Comércio, Importação e Exportação Ltda | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 15,263 | ||
Profit (loss) | (9,185) | ||
Desempar Participações Ltda. | |||
Disclosure of detailed information about business combination [line items] | |||
Revenues | 130,771 | ||
Profit (loss) | R$ 13409 |
Accounting considerations rel_3
Accounting considerations related to the SPAC Transaction - Listing expenses (Details) R$ in Thousands | Feb. 27, 2023 BRL (R$) | Jun. 30, 2023 BRL (R$) | Mar. 01, 2023 brazilianRealPerUSDollar $ / shares | Jun. 30, 2022 BRL (R$) | Jun. 30, 2021 BRL (R$) |
Accounting Considerations Related To The SPAC Transaction [Abstract] | |||||
Deemed cost of shares issued to TPB Acquisition Corp shareholders | R$ 893613 | ||||
Total identifiable net assets at fair value | (574,059) | R$ 216376 | R$ 336291 | R$ 467200 | |
Payments for share issue costs | R$ 319554 | ||||
Share price per share | $ / shares | $ 9.55 | ||||
Closing foreign exchange rate | brazilianRealPerUSDollar | 5.21 |
Accounting considerations rel_4
Accounting considerations related to the SPAC Transaction - Narrative (Details) R$ in Thousands | 12 Months Ended | ||
Feb. 27, 2023 warrants $ / shares shares | Jun. 30, 2023 BRL (R$) shares | Mar. 01, 2023 $ / shares | |
Disclosure of detailed information about business combination [line items] | |||
Number of instruments or interests issued or issuable | warrants | 10,083,606 | ||
Warrants outstanding (in shares) | shares | 10,083,592 | ||
Warrant liability | R$ | R$ 36446 | ||
Gain on changes in fair value of warrants | R$ | 3,756 | ||
Share price per share | $ 9.55 | ||
Forward share purchase agreement, number of shares to be purchased (in shares) | shares | 2,830,750 | ||
Forward share purchase agreement, term after closing | 24 months | ||
Forward share purchase agreement, liability | R$ | R$ 139133 | ||
Class B Ordinary Shares | |||
Disclosure of detailed information about business combination [line items] | |||
Number of founders shares (in shares) | shares | 3,006,050 | ||
Number of ordinary shares issued to TPB acquisition corp shareholders (in shares) | shares | 1,503,025 | ||
Founder shares, number of consecutive trading days | 30 days | ||
Founder shares, term | 3 years | ||
Founder shares, number of trading days | 20 days | ||
Class B Ordinary Shares, Vested | |||
Disclosure of detailed information about business combination [line items] | |||
Expected volatility, founder shares | 54.40% | ||
Risk free interest rate, founder shares | 4.51% | ||
Class B Ordinary Shares, Unvested | |||
Disclosure of detailed information about business combination [line items] | |||
Expected volatility, founder shares | 54.40% | ||
Risk free interest rate, founder shares | 4.88% | ||
Share price per share | $ 10.08 | ||
Founder shares, restricted term | 3 months | ||
Vesting Condition, One | Class B Ordinary Shares | |||
Disclosure of detailed information about business combination [line items] | |||
Founder shares, share price threshold per share | $ 12.50 | ||
Vesting conditions percentage | 50% | ||
Vesting Condition, One | Class B Ordinary Shares, Vested | |||
Disclosure of detailed information about business combination [line items] | |||
Founder shares, share price threshold per share | $ 12.50 | ||
Share price per share | 9.53 | ||
Vesting Condition, Two | Class B Ordinary Shares | |||
Disclosure of detailed information about business combination [line items] | |||
Founder shares, share price threshold per share | $ 15 | ||
Vesting conditions percentage | 50% | ||
Vesting Condition, Two | Class B Ordinary Shares, Vested | |||
Disclosure of detailed information about business combination [line items] | |||
Founder shares, share price threshold per share | $ 15 | ||
Share price per share | $ 8.53 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of income taxes expense (Details) - BRL (R$) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Profit (loss) before income taxes | R$ 390937000 | R$ 140424000 | R$ 46207000 |
Statutory rate | 34% | 34% | 34% |
Income taxes at statutory rate | R$ 132919000 | R$ 47744000 | R$ 15710000 |
Unrecognized deferred tax asset | (193,898,000) | (7,055,000) | (11,755,000) |
Difference from income taxes calculation based on taxable profit computed as a percentage of gross revenue | 10,822,000 | 7,080,000 | 5,375,000 |
Deferred income taxes over goodwill tax recoverable | (3,897,000) | 0 | 0 |
Tax benefit (iii) | 244,718,000 | 15,066,000 | 0 |
Other | (18,407,000) | (9,000) | (2,586,000) |
Income tax expense | R$ 172256000 | R$ 32662000 | R$ 24676000 |
Income tax and social contribution effective rate | (44.00%) | 23% | 52% |
Current | R$ 37499000 | R$ 111409000 | R$ 61676000 |
Deferred | 134,757,000 | 78,747,000 | 37,000,000 |
Unrecognized credits on tax losses | R$ 187310 | R$ 7055 | R$ 11755 |
Income taxes - Deferred income
Income taxes - Deferred income taxes balances (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | R$ 316731 | R$ 193495 | R$ 114748 |
Amortization of fair value adjustment | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (66,065) | (32,787) | |
Tax losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (123,072) | (49,332) | |
Allowance for expected credit losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (49,026) | (51,379) | |
Adjustment to present value | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (14,222) | (40,639) | |
Provision for management bonuses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (22,182) | (26,738) | |
Allowance for inventory losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (3,841) | (3,463) | |
Financial effect on derivatives | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | 1,468 | (2,001) | |
Fair value of commodity forward contracts | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (31,343) | 1,959 | |
Unrealized exchange gains or losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | 7,618 | 1,803 | |
Unrealized profit in Inventories | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | 11,121 | 0 | |
Gain on bargain purchase | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | 0 | (6,221) | |
Amortized right-of-use assets | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | (6,273) | (2,617) | |
Deferred tax on goodwill | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | 2,067 | 0 | |
Other provisions | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets and liabilities | R$ 22981 | R$ 5478 |
Income taxes - Deferred tax rol
Income taxes - Deferred tax rollforward (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | R$ 193495 | R$ 114748 |
Recognized in the statement of profit or loss | 128,362 | 78,747 |
Deferred tax from acquired companies | (5,126) | |
Deferred tax liability (asset) | R$ 316731 | R$ 193495 |
Income taxes - Aging Analysis (
Income taxes - Aging Analysis (Details) R$ in Thousands | 12 Months Ended |
Jun. 30, 2023 BRL (R$) | |
Income Taxes [Abstract] | |
Up to 1 year | R$ 185123 |
Over 1 year | 131,608 |
Total | R$ 316731 |
Provisions for contingencies (D
Provisions for contingencies (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Other provisions, contingent liabilities and contingent assets [Abstract] | ||
Provision for contingencies | R$ 8845 | R$ 2966 |
Possible losses | R$ 77724 | R$ 11600 |
Advances from customers (Detail
Advances from customers (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from contracts with customers [Abstract] | |||
Balance as of the beginning of the year | R$ 320560 | R$ 509403 | R$ 218699 |
Revenue recognized that was included in the contract liability balance at the beginning of the year | (320,560) | (509,403) | (218,699) |
Increase in advances | 427,463 | 301,963 | 390,809 |
Advances from acquired companies | 61,115 | 18,597 | 118,594 |
Balance at the end of the year | R$ 488578 | R$ 320560 | R$ 509403 |
Related parties - Breakdown of
Related parties - Breakdown of Assets and Liabilities (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets | ||
Trade receivables | R$ 2708540 | R$ 1834353 |
Advances to suppliers | 192,119 | 383,257 |
Total assets | 7,523,984 | 5,685,763 |
Liabilities | ||
Trade payables | 2,578,248 | 2,301,700 |
Advances from customers | 488,578 | 320,560 |
Related parties | ||
Assets | ||
Trade receivables | 24,487 | 11,677 |
Advances to suppliers | 0 | 67 |
Total assets | 24,487 | 11,744 |
Liabilities | ||
Trade payables | 1,675 | 274 |
Advances from customers | 0 | 1,097 |
Payables for the acquisition of subsidiaries | 100,287 | 63,930 |
Total liabilities | R$ 101962 | R$ 65301 |
Related parties - Schedule of P
Related parties - Schedule of Profit and Loss (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Revenue from sales of products | R$ 9347413 | R$ 7746534 | R$ 5098545 |
Profit (loss) for the year | (218,682) | 107,762 | 21,531 |
Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from sales of products | 33,032 | 13,046 | |
Monitoring expenses | (18,681) | (2,504) | 5,592 |
Interest on payables for the acquisition of subsidiaries | (4,841) | ||
Other expenses | (2,374) | (1,417) | 0 |
Profit (loss) for the year | R$ 7137 | R$ 9125 | R$ 5592 |
Related parties - Kay Managemen
Related parties - Kay Management Compensation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related party [Abstract] | |||
Wages | R$ 14268 | R$ 11164 | R$ 6540 |
Direct and indirect benefits | 690 | 427 | 551 |
Variable compensation (bonuses) | 25,479 | 3,992 | 6,148 |
Short-term benefits | 40,437 | 15,583 | 13,239 |
Share-based payment benefits | 14,533 | 0 | 0 |
Total | R$ 54970 | R$ 15583 | R$ 13239 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) | Feb. 27, 2023 BRL (R$) | Jun. 30, 2023 BRL (R$) shares yr vote warrant R$ / shares | Dec. 31, 2022 BRL (R$) | Jun. 30, 2022 BRL (R$) | Jun. 30, 2021 BRL (R$) | Jun. 30, 2023 $ / shares | Feb. 28, 2023 shares | Apr. 01, 2021 | Mar. 31, 2021 | |
Disclosure of reserves within equity [line items] | |||||||||||
Consideration paid (received) | R$ 100887000 | R$ 34351000 | R$ 79493000 | ||||||||
Non-controlling interests | R$ 218080000 | R$ 250238000 | 218,080,000 | ||||||||
Par value per share | $ / shares | $ 0.001 | ||||||||||
Number of votes per share | vote | 1 | ||||||||||
Number of share options granted in share-based payment arrangement | shares | 49,518,732 | ||||||||||
Number of public warrants | warrant | 6,012,085 | ||||||||||
Number of private warrants | warrant | 4,071,507 | ||||||||||
Number of founder shares not included in dilutive earnings per share calculation | shares | 3,060,662 | ||||||||||
Net investment of the Parent | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | (64,711,000) | (3,257,000) | (22,071,000) | ||||||||
Non-controlling interest | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 36176000 | R$ 31094000 | R$ 57422000 | ||||||||
Lavoro share plan | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Maximum term of options granted | 5 years | ||||||||||
Number of shares reserved for issue under options and contracts for sale of shares | shares | 1,663,405 | ||||||||||
Weighted average exercise price of share options granted in share-based payment arrangement | R$ / shares | R$ 0.44 | ||||||||||
Weighted average share price | R$ / shares | R$ 2.88 | ||||||||||
Expected volatility, share options granted | 33.88% | ||||||||||
Expected dividend as percentage, share options granted | 0% | ||||||||||
Option life, share options granted | yr | 3.37 | ||||||||||
Risk free interest rate, share options granted | 12.45% | ||||||||||
Third anniversary | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Vesting requirements for share-based payment arrangement, vesting percentage | 33.333% | ||||||||||
Fourth anniversary | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Vesting requirements for share-based payment arrangement, vesting percentage | 33.333% | ||||||||||
Fifth anniversary | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Vesting requirements for share-based payment arrangement, vesting percentage | 33.333% | ||||||||||
Desempar Participações Ltda. | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Percentage of voting equity interests acquired | 93.11% | ||||||||||
Cultivar Agrícola e Comércio, Importação e Exportação Ltda | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Percentage of voting equity interests acquired | 93.11% | 26.24% | 63.47% | ||||||||
Consideration paid (received) | R$ 42500000 | ||||||||||
Non-controlling interests | 16,607,000 | ||||||||||
Cultivar Agrícola e Comércio, Importação e Exportação Ltda | Net investment of the Parent | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | (25,893,000) | ||||||||||
Cultivar Agrícola e Comércio, Importação e Exportação Ltda | Non-controlling interest | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 16607000 | ||||||||||
Distribuidora Pitangueiras de Produtos Agropecuários S.A. | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Percentage of voting equity interests acquired | 6.89% | ||||||||||
Consideration paid (received) | R$ 45000000 | ||||||||||
Non-controlling interests | 19,569,000 | ||||||||||
Distribuidora Pitangueiras de Produtos Agropecuários S.A. | Net investment of the Parent | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | (25,431,000) | ||||||||||
Distribuidora Pitangueiras de Produtos Agropecuários S.A. | Non-controlling interest | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 19569000 | ||||||||||
Group Cenagro | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Percentage of voting equity interests acquired | 20% | ||||||||||
Non-controlling interests | R$ 4602000 | ||||||||||
Proportion of ownership interests held by non-controlling interests (in percent) | 2.68% | ||||||||||
Group Cenagro | Net investment of the Parent | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 1878000 | ||||||||||
Group Cenagro | Non-controlling interest | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | 1,878,000 | ||||||||||
Group Cenagro | Share Capital | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 6480000 | ||||||||||
Lavoro Agrocomercial S.A. | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Percentage of voting equity interests acquired | 5.77% | 5.77% | 8.94% | ||||||||
Consideration paid (received) | R$ 16782000 | R$ 79493 | |||||||||
Non-controlling interests | R$ 9769000 | R$ 9769000 | R$ 57422 | ||||||||
Proportion of ownership interests held by non-controlling interests (in percent) | 5.77% | 8.94% | |||||||||
Lavoro Agrocomercial S.A. | Net investment of the Parent | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 7013000 | R$ 22071 | |||||||||
Lavoro Agrocomercial S.A. | Non-controlling interest | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 9769000 | R$ 57422 | |||||||||
Produtec Comércio e Representações S.A. | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Percentage of voting equity interests acquired | 7.65% | 7.65% | |||||||||
Consideration paid (received) | R$ 17569000 | R$ 13387000 | |||||||||
Non-controlling interests | R$ 23203000 | R$ 23203000 | |||||||||
Proportion of ownership interests held by non-controlling interests (in percent) | 6.89% | ||||||||||
Produtec Comércio e Representações S.A. | Net investment of the Parent | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 5634000 | ||||||||||
Produtec Comércio e Representações S.A. | Non-controlling interest | |||||||||||
Disclosure of reserves within equity [line items] | |||||||||||
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 23203000 |
Equity - Disclosure of non-cont
Equity - Disclosure of non-controlling interests (Details) - BRL (R$) R$ in Thousands | 8 Months Ended | 12 Months Ended | |
Feb. 27, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reserves within equity [line items] | |||
Carrying amount of non-controlling interests acquired | R$ 32972 | R$ 57422 | |
Difference between consideration paid in shares and non-controlling interest acquired | (1,878) | ||
Consideration paid to non-controlling interests | R$ 100887 | (34,351) | (79,493) |
Non-controlling interest | |||
Disclosure of reserves within equity [line items] | |||
Total carrying amount of non-controlling interests acquired, net | 36,176 | 31,094 | 57,422 |
Increase (decrease) through acquisition of Non-controlling Interests, equity | (36,176) | (31,094) | (57,422) |
Net investment of the Parent | |||
Disclosure of reserves within equity [line items] | |||
Total carrying amount of non-controlling interests acquired, net | 64,711 | 3,257 | 22,071 |
Increase (decrease) through acquisition of Non-controlling Interests, equity | R$ 64711 | R$ 3257 | R$ 22071 |
Equity - After reorganization (
Equity - After reorganization (Details) R$ in Thousands | Jun. 30, 2023 BRL (R$) shares |
Disclosure of classes of share capital [line items] | |
Number of shares issued | shares | 113,602,280 |
Total equity / net investment | R$ 2110357 |
Share capital [member] | |
Disclosure of classes of share capital [line items] | |
Total equity / net investment | 591 |
Additional Paid-in Capital | |
Disclosure of classes of share capital [line items] | |
Total equity / net investment | R$ 2134339 |
Lavoro Agro Limited | |
Disclosure of classes of share capital [line items] | |
Number of shares issued | shares | 98,726,401 |
Lavoro Agro Limited | Share capital [member] | |
Disclosure of classes of share capital [line items] | |
Total equity / net investment | R$ 514 |
Lavoro Agro Limited | Additional Paid-in Capital | |
Disclosure of classes of share capital [line items] | |
Total equity / net investment | R$ 1464083 |
TPB Acquisition Corp | |
Disclosure of classes of share capital [line items] | |
Number of shares issued | shares | 14,875,879 |
TPB Acquisition Corp | Share capital [member] | |
Disclosure of classes of share capital [line items] | |
Total equity / net investment | R$ 77 |
TPB Acquisition Corp | Additional Paid-in Capital | |
Disclosure of classes of share capital [line items] | |
Total equity / net investment | R$ 670256 |
Equity - Share based payment ex
Equity - Share based payment expense (Details) R$ in Thousands | 12 Months Ended |
Jun. 30, 2023 BRL (R$) shares | |
Disclosure of reserves within equity [line items] | |
Share-based payments expense during the year | R$ | R$ 14533 |
Ending Balance | R$ | R$ 2110357 |
Beginning Balance (in shares) | shares | 0 |
Granted options (in shares) | shares | 49,518,732 |
Cancelled (in shares) | shares | (3,800,000) |
Ending Balance (in shares) | shares | 45,718,732 |
Share-Based Compensation reserve | |
Disclosure of reserves within equity [line items] | |
Beginning Balance | R$ | R$ 0 |
Ending Balance | R$ | R$ 14533 |
Equity - Disclosure of earnings
Equity - Disclosure of earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share capital, reserves and other equity [Abstract] | |||
Weighted average ordinary shares of Lavoro | 113,602 | 113,602 | 113,602 |
Effects of dilution from share-based payments | 1,605 | 0 | 0 |
Number of ordinary shares adjusted for the effect of dilution | 115,207 | 113,602 | 113,602 |
Profit (loss) for the period attributable to net investment of the parent/equity holders of the parent | R$ 260710 | R$ 78170 | R$ 38390 |
Basic earnings (loss) per share | R$ 2.29 | R$ 0.69 | R$ 0.34 |
Diluted earnings (loss) per share | R$ 2.29 | R$ 0.69 | R$ 0.34 |
Revenue from contracts with c_3
Revenue from contracts with customers - Narrative (Details) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Revenue from contracts with customers [Abstract] | |||
Trade receivables, discount rate | 0.96% | 1% | 1% |
Revenue from contracts with c_4
Revenue from contracts with customers- Schedule of Disaggregation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | R$ 9347413 | R$ 7746534 | R$ 5098545 |
Brazil | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8,141,072 | 6,580,118 | 4,239,708 |
Colombia | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,206,341 | 1,166,416 | 858,837 |
Inputs Retails sales | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8,095,860 | 6,621,614 | 4,197,472 |
Inputs Retails sales | Brazil | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 6,950,340 | 5,555,066 | 3,439,049 |
Inputs Retails sales | Colombia | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,145,520 | 1,066,548 | 758,423 |
Crop Care | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 557,167 | 331,527 | 41,138 |
Grains | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 666,925 | 715,305 | 789,772 |
Grains | Brazil | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 633,565 | 693,525 | 759,521 |
Grains | Colombia | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 33,360 | 21,780 | 30,251 |
Services | Colombia | Reportable Geographical Components | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | R$ 27461 | R$ 78088 | R$ 70163 |
Costs and expenses by nature -
Costs and expenses by nature - Narrative (Details) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Analysis of income and expense [abstract] | |||
Trade payables, interest rate | 1.58% | 1.18% | 1.18% |
Costs and expenses by nature _2
Costs and expenses by nature - Schedule of Expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |||
Cost of inventory | R$ 7519405 | R$ 6368444 | R$ 4357001 |
Personnel expenses | 628,222 | 485,643 | 286,086 |
Maintenance of the units | 34,396 | 30,567 | 22,387 |
Consulting, legal and other services | 118,610 | 118,056 | 67,836 |
Freight on sales | 57,650 | 47,979 | 31,911 |
Commissions | 52,040 | 33,874 | 42,447 |
Storage | 7,613 | 5,363 | 8,425 |
Travel | 33,543 | 23,605 | 18,444 |
Depreciation | 16,408 | 9,697 | 5,717 |
Amortization of intangibles | 67,927 | 57,607 | 29,717 |
Amortization of right-of-use assets | 56,236 | 51,203 | 17,997 |
Taxes and fees | 32,266 | 29,849 | 17,948 |
Short term rentals | 22,365 | 11,733 | 20,525 |
Business events | 9,333 | 4,893 | 1,951 |
Marketing and advertising | 14,631 | 18,181 | 4,089 |
Insurance | 7,679 | 3,395 | 2,877 |
Utilities | 22,302 | 12,696 | 6,693 |
Allowance for expected credit losses | 36,769 | 27,393 | 11,094 |
Losses and damages of inventories | 19,127 | 23,339 | 9,808 |
Fuels and lubricants | 29,527 | 23,705 | 4,373 |
Legal fees | 4,336 | 7,025 | 3,208 |
SPAC bonuses | 29,743 | 0 | 0 |
Other administrative expenditures | 24,606 | 49,178 | 11,629 |
Total | 8,844,734 | 7,443,425 | 4,982,163 |
Cost of goods sold | 7,616,606 | 6,421,037 | 4,362,657 |
Sales, general and administrative expenses | 1,228,128 | 1,022,388 | 619,506 |
Fair value of acquired receivables | R$ 26914 | R$ 27005 | R$ 39536 |
Finance income (costs) (Details
Finance income (costs) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finance Income [Abstract] | |||
Interest from cash equivalents | R$ 8241 | R$ 8703 | R$ 2461 |
Interest arising from revenue contracts | 250,337 | 407,449 | 204,744 |
Foreign exchange differences | 0 | 0 | 12,759 |
Gain on changes in fair value of derivative instruments | 79,375 | 0 | 0 |
Gain on changes in fair value of commodity forward contracts | 0 | 9,200 | 6,337 |
Interest from tax benefit | 27,153 | 0 | 0 |
Other | 5,954 | 1,581 | 798 |
Finance income | 371,060 | 426,933 | 227,099 |
Finance costs | |||
Interest on borrowings | 319,557 | 74,081 | 33,971 |
Interest on leases | (16,977) | (13,217) | (5,076) |
Interest on trade payables and acquisitions of subsidiary | (508,351) | (506,778) | (256,122) |
Foreign exchange differences | (15,232) | (1,957) | 0 |
Loss on changes in fair value of derivative instruments | 0 | (26,323) | (4,883) |
Loss on fair value of commodity forward contracts | (98,674) | 0 | 0 |
Other | (15,608) | (24,021) | (12,840) |
Finance costs | (988,867) | (646,377) | (312,892) |
Finance costs, net | R$ 617807 | R$ 219444 | R$ 85793 |
Other operating (expenses) in_3
Other operating (expenses) income, net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |||
Listing expense | R$ 319554 | R$ 0 | R$ 0 |
Gain on bargain purchase | 0 | 18,295 | 0 |
Sales of fixed assets | 2,071 | 8,592 | 3,914 |
Other operating income | 41,674 | 29,872 | 11,704 |
Other operating (expenses) income, net | R$ 275810 | R$ 56759 | R$ 15618 |
Non-cash transactions (Details)
Non-cash transactions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of cash flows [abstract] | |||
Non-cash additions to right-of-use assets and lease liabilities | R$ 89895 | R$ 124740 | R$ 21606 |
Subsequent events - Narrative (
Subsequent events - Narrative (Details) shares in Thousands, R$ in Thousands, $ in Millions | Oct. 31, 2023 BRL (R$) | Oct. 31, 2023 COP ($) | Jul. 31, 2023 BRL (R$) | Jun. 30, 2023 BRL (R$) | Jun. 30, 2023 $ / shares | May 26, 2023 shares | Feb. 28, 2023 BRL (R$) | Jul. 29, 2022 BRL (R$) | Jun. 30, 2022 BRL (R$) | Jun. 30, 2021 BRL (R$) | Jun. 30, 2020 BRL (R$) |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Total borrowings | R$ 965475 | R$ 710552 | R$ 242404 | R$ 168571 | |||||||
Consideration transferred | 302,468 | 326,598 | 566,771 | ||||||||
Cash paid | R$ 127547 | R$ 206672 | R$ 374433 | ||||||||
Par value per share (in usd per share) | $ / shares | $ 0.001 | ||||||||||
Restricted Share Units (RSU) | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Outstanding (in shares) | shares | 1,634,852 | ||||||||||
Additional Financing Agreements | Bottom of range | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Current Index | 16.60% | 16.60% | |||||||||
Additional Financing Agreements | CDI rate | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Notional amount | R$ 1250700 | ||||||||||
Additional Financing Agreements | CDI rate | Bottom of range | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Current Index | 1.80% | 1.80% | |||||||||
Additional Financing Agreements | CDI rate | Top of range | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Current Index | 3.04% | 3.04% | |||||||||
Additional Financing Agreements | IBR Rate | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Notional amount | $ | $ 24,244.1 | ||||||||||
Additional Financing Agreements | IBR Rate | Bottom of range | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Current Index | 3.20% | 3.20% | |||||||||
Additional Financing Agreements | IBR Rate | Top of range | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Current Index | 5.60% | 5.60% | |||||||||
Referencia Agro | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Percentage of voting equity interests acquired | 70% | ||||||||||
Consideration transferred | R$ 102112 | R$ 102112 | |||||||||
Cash paid | R$ 67112 | ||||||||||
Deferred consideration payable | R$ 35000 | ||||||||||
Referencia Agro | Major business combination | |||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||
Percentage of voting equity interests acquired | 66.57% | ||||||||||
Cash paid | R$ 67112 |
Subsequent events - Schedule of
Subsequent events - Schedule of Business Combination (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Feb. 28, 2023 | Feb. 27, 2023 | Jul. 29, 2022 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Cash paid | R$ 127547 | R$ 206672 | R$ 374433 | |||
Payable in installments | 162,625 | 89,619 | 161,484 | |||
Consideration transferred | 302,468 | 326,598 | 566,771 | |||
Assets | ||||||
Cash equivalents | 71,994 | 133,806 | 175,455 | |||
Trade receivables | 203,871 | 310,955 | 691,983 | |||
Inventories | 214,724 | 212,513 | 449,865 | |||
Property, plant and equipment | 8,525 | 32,738 | 25,854 | |||
Intangible assets | 33,477 | 54,686 | 141,262 | |||
Other assets | 63,839 | 51,341 | 86,962 | |||
Identifiable assets acquired | 596,430 | 796,039 | 1,571,381 | |||
Liabilities | ||||||
Borrowings | 25,756 | 85,097 | 76,915 | |||
Trade payables | 229,963 | 294,536 | 934,372 | |||
Other liabilities | 114,089 | 68,753 | 92,894 | |||
Liabilities assumed on acquisition | 380,053 | 459,748 | 1,104,181 | |||
Total identifiable net assets at fair value | 216,376 | R$ 574059 | 336,291 | 467,200 | ||
Preliminary goodwill arising on acquisition | R$ 100481 | R$ 71348 | R$ 135735 | |||
Referencia Agro | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Cash paid | R$ 67112 | |||||
Payable in installments | 35,000 | |||||
Consideration transferred | R$ 102112 | 102,112 | ||||
Assets | ||||||
Cash equivalents | 8,249 | |||||
Trade receivables | 43,462 | |||||
Inventories | 81,972 | |||||
Property, plant and equipment | 1,504 | |||||
Intangible assets | 34,731 | |||||
Other assets | 8,157 | |||||
Identifiable assets acquired | 178,076 | |||||
Liabilities | ||||||
Borrowings | 32,455 | |||||
Trade payables | 61,178 | |||||
Other liabilities | 42,205 | |||||
Liabilities assumed on acquisition | 135,838 | |||||
Total identifiable net assets at fair value | 42,238 | |||||
Preliminary goodwill arising on acquisition | R$ 72545 |
Subsequent events -Schedule of
Subsequent events -Schedule of RSUs (Details) shares in Thousands | May 26, 2023 shares |
Restricted Share Units (RSU) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Outstanding (in shares) | 1,634,852 |
Options | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Granted options (in shares) | 1,689,632 |
Canceled (in shares) | (92,556) |
Outstanding (in shares) | 1,597,076 |