Management Report 2020 slide image

Management Report 2020

Management Report 2020 SLC Agrícola Gross income by crop To contribute to a better understanding of margins by crop, in this section the gain (loss) from currency hedge is allocated among cotton, soybean and corn. Cotton lint and cotton seed | In 2020, unit gross in- come from cotton fell 21.8% from 2019, due to the 3.1% reduction in unit price combined with the 6.4% increase in unit cost. The latter factor reflects the in- crease in average cost and decrease in average yield per hectare of cotton invoiced during the year (37% in 2018/19, 63% in 2019/20) compared to 2019 (41% in 2017/18, 59% in 2018/19). Cotton seed unit gross income increased significantly in comparison with 2019. Despite the higher unit cost, this performance is mainly due to the increase in unit price, of 69.2%, reflecting the domestic de- mand for animal food supplements and biodiesel pro- duction. TABLE 14. GROSS INCOME - COTTON LINT Cotton lint Volume invoiced Net revenue Result of FX hedge 2019 2020 HA Ton R$'000 R$'000 185.374 1.212.573 215.965 16,5% 1.697.671 40,0% (61.699) (398.374) 545,7% 1.150.874 1.299.297 12,9% 6.208 6.016 -3,1% (945.782) 24,0% R$/ton R$/ton (4.115) 2.093 (4.379) 6,4% 1.637 -21,8% Net income adj. for the result of FX hedge R$'000 Unit price R$/ton Total cost R$'000 (762.874) Unit cost Unit gross income TABLE 15. GROSS INCOME - COTTON SEED Cotton seed Volume invoiced Net revenue 2019 2020 HA Ton R$'000 R$/ton 234,986 77,154 328 281,613 156,269 19.8% 102.5% 555 69.2% Total cost R$'000 (61,257) (98,128) 60.2% Unit cost R$/ton (261) (348) 33.3% Unit gross income R$/ton 67 207 209.0% Unit price 36
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