Management Report 2020
Management Report 2020
SLC Agrícola
Net financial income
Since the Company's dollar-denominated debt is swapped to BRL (in
line with the Risk Management Policy), the exchange variation on such
debt does not affect financial income (loss) when we analyze aggre-
gated figures, since any gains or losses on such debt from FX variation
are offset by proportionate gains/losses in the respective swap.
In 2020, Adjusted Net Financial Income (Loss) decreased compared to
2019. The main impact refers to the interest line, mainly due to the
reduction in adjusted net debt during the year (vs. 2019) and the de-
cline in the CDI rate in the period.
The increase in Adjustment to Present Value of Leases was due to the
lengthening of the terms of certain agreements and to the increase in
the price of the soybean bag in BRL (adjustment index adopted in
agreements).
In 2020, there also was an increase in the line Other financial income
(expenses) related to the recognition of expenses with PIS/COFINS tax
on financial income.
TABLE 21. ADJUSTED NET FINANCIAL INCOME (EXPENSE)
(R$'000)
Interest
FX variation
2019
2020
HA
(101,197)
5,940
(53,637)
-47.0%
28,775
384.4%
Monetary variation
139
-100.0%
Adjust. to present value of leases (IFRS 16)
(47,607)
(61,106)
28.4%
Other financial income (expenses)
(1,325)
(5,783)
336.5%
Total
% Net revenue
(144,050)
(91,751)
5.7%
3.0%
-36.3%
-2.7p.p.
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