Management Report 2020 slide image

Management Report 2020

Management Report 2020 SLC Agrícola Financial performance Income statement analysis Adjusted EBITDA In 2020, Adjusted EBITDA amounted to R$960.3 million, representing a record high. Considering only EBITDA from Agricultural Operations (given that the result for 2019 includes a land sale oper- ation), Adjusted EBITDA grew by 34.2% on the prior year. This performance was in large part due to the higher prices for the soybean and corn invoiced. Note that, with the adoption of IFRS 16, lease costs were excluded from adjusted EBITDA. A total of R$129.6 million was paid for leases in 2020, com- pared to R$78.9 million paid in 2019. TABLE 8. ADJUSTED EBITDA RECONCILIATION (R$'000) Net revenue (+) Changes in fair value - biological assets (-) Cost of products sold Cost of products Realization of fair value - biological assets (=) Gross income 2019 2,535,905 2020 HA 504,751 3,097,547 775,534 22.1% 53.6% (2,257,472) (2,802,782) 24.2% (1,733,206) (2,051,786) 18.4% (524,266) (750,996) 43.2% 783,184 1,070,299 36.7% (-) Sales expenses (152,972) (173,964) 13.7% (-) General and administrative expenses (89,324) (115,452) 29.3% General and administrative Profit sharing (63,236) (70,058) 10.8% (26,088) (45,394) 74.0% (-) Management compensation (13,827) (14,716) 6.4% (-) Other operating revenue (expenses) Land sale 31,651 14,763 -53.4% 24,712 6,939 558,712 105,810 - -100.0% 14,763 780,930 39.8% 112.8% 119,686 13.1% 664,522 900,616 35.5% (504,751) (775,534) 53.6% 524,266 750,996 43.2% 12,228 8,067 -34.0% 425 2,455 477.6% 36,029 -100.0% (+) IFRS 16 adjustment - retained profit5 (+) IFRS 16 adjustment - amortization5 19,466 -100.0% 43,336 73,663 70.0% Adjusted EBITDA (agriculture operation + land sale)1 e 1e2 795,521 960,263 20.7% Adjusted EBITDA Margin (agriculture operation + land sale) 1 e a Adjusted EBITDA (agriculture operation) 1 e 2 2 31.4% 31.0% -0.4p.p Adjusted EBITDA Margin (agriculture operation) 1 e2 715,314 28.2% 960,263 34.2% Other operating revenue (expenses) (=) Income from activity (+) Deprecetiation and amortization EBITDA (-) Changes in fair value - biological assets³ (+) Realization of fair value - biological assets4 (+) Settled fixed assets² (+) Other transactions - fixed asset² (+) Land sale cost 31.0% 2.8p.p 1. Excluding the effects of Biological Assets, as they do not represent a cash effect. | 2. Excluding the settled fixed assets and adjustments to IFRS 16. | 3. Change in the fair value of Biological Assets (explanatory note DF 32). | 4. Realization of fair value Biological Assets (explanatory note DF 31). | 5. Amortization of the right-of-use related - leases. 33 33
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