Segment information

12 Months Ended

Jun. 30, 2018

Segment Information

Segment information

18. Segment information

Segment information is presented consistently with the internal report provided by the main operating decision makerthat is the Executive Board, responsible for allocating resources, assessing the performance of the operating segments, and for making the Company’s strategic decisions.

Segment information is based on information used by BrasilAgro Executive Board to assess the performance of the operating segments and to make decisions on the investment of funds. The Company has five segments, namely: (i) real estate, (ii) grains, (iii) sugarcane, (iv) cattle raising and (v) other. The operating assets related to these segments are located only in Brazil. The main activity of the grains segment is the production and sale of soybean and corn.

The Sugarcane segment includes the sale of the raw product. The Real Estate segment presents the Profit and Losses from operations carried out in the Company’s subsidiaries. The cattle raising segment consists of producing and selling beef calves after weaning, which characterizes the activity as breeding. The selected P&L, assets e liabilities information by segment, which were measured in accordance with the same accounting practices used in the preparation of the financial statements, are as follows: 

	June 30, 2018
	Total		Real estate		Agricultural activity						Other		Not allocated
					Grains		Sugarcane		Cattle raising
Net revenue	244,278		5,133		97,180		138,143		4,081		(259	)	—
Gain on sale of farm	39,817		39,817		—		—		—		—		—
Change in fair value of biological assets and agricultural products  (Note 9)	99,083		—		55,584		43,952		239		(692	)	—
(Impairment) of net realizable value of agriculturl products after harvest, net	883		—		905		—		—		(22	)	—
Cost of sales	(228,319	)	—		(89,633	)	(134,028	)	(4,378	)	(280	)	—
Gross profit	155,742		44,950		64,036		48,067		(58	)	(1,253	)	—
Operating profit (expenses)
Selling expenses	(10,087	)	—		(9,730	)	—		(383	)	26		—
General and administrative expenses	(34,945	)	—		—		—		—		—		(34,945	)
Other operating expenses, net	35,432		—		—		—		—		—		35,432
Share of profit af a joint venture	14,671		—		—		—		—		—		14,671
Operating profit (loss)	160,813		44,950		54,306		48,067		(441	)	(1,227	)	15,158
Net finance profit
Finance income	129,323		20,843		12,388		18,208		—		18,501		59,383
Finance expenses	(137,879	)	(5,158	)	(6,606	)	(20,597	)	—		(18,261	)	(87,257	)
Profit (loss) before income and social contribution taxes	152,257		60,635		60,088		45,678		(441	)	(987	)	(12,716	)
Income and social contribution taxes	(25,919	)	(20,616	)	(20,430	)	(15,531	)	150		335		30,173
Net profit (loss) for the year	126,338		40,019		39,658		30,147		(291	)	(652	)	17,457
Total  assets	1,179,599		624,417		78,070		129,787		35,438		14,073		297,814
Total liabilities	423,735		—		73,610		52,310		—		—		297,815

					June 30, 2017
	Total		Real estate		Agricultural activity						Other		Not allocated
					Grains		Sugarcane		Cattle raising
Net revenue	146,911		—		68,971		73,658		369		3,913		—
Gain on sale of farm	26,716		26,716		—		—		—		—		—
Change in fair value of biological assets and agricultural products  (Note 9)	12,266		—		4,302		11,532		(3,568	)	—		—
(Impairment) of net realizable value of agriculturl products after harvest, net	(1,655	)	—		(1,652	)	—		—		(3	)	—
Cost of sales	(136,362	)	—		(59,770	)	(74,498	)	(156	)	(1,938	)	—
Gross profit	47,876		26,716		11,851		10,692		(3,355	)	1,972		—
Operating profit (expenses)
Selling expenses	(6,676	)	(8	)	(6,144	)	—		(80	)	(444	)	—
General and administrative expenses	(30,941	)	—		—		—		—		—		(30,941	)
Other operating expenses, net	(6,019	)	—		—		—		—		—		(6,019	)
Share of loss af a joint venture	(4,425	)	—		—		—		—		—		(4,425	)
Operating profit (loss)	(185	)	26,708		5,707		10,692		(3,435	)	1,528		(41,385	)
Net finance profit
Finance income	110,090		8,276		9,901		8,254		—		1,292		82,367
Finance expenses	(76,646	)	(8,057	)	(8,881	)	(921	)	—		(9,097	)	(49,690	)
Profit (loss) before income and social contribution taxes	33,259		26,927		6,727		18,025		(3,435	)	(6,277	)	(8,708	)
Income and social contribution taxes	(5,949	)	(9,155	)	(2,287	)	(6,128	)	1,168		2,134		8,319
Net profit (loss) for the year	27,310		17,772		4,440		11,897		(2,267	)	(4,143	)	(389	)
Total  assets	883,293		421,769		27,938		112,670		5,952		1,257		313,707
Total liabilities	215,825		41,090		10,703		33,353		—		—		130,679

The balance sheet accounts are mainly represented by “Trade accounts receivables”, “Biological assets”, “Inventories of agricultural products” and “Investment properties”.

a)  Information on concentration of clients

In the year ended June 30, 2018, the Company has five clients representing 10% or more of the revenues from the sugarcane or grains segments, totaling 83.2% of the total sales of the Company. Of these five clients, two account for 58.9% and 41.1% of the revenues from the sugarcane segment and three account for 27.4%, 17.4% and 10.5% of the revenues from the grains segment.

In the year ended June 30, 2017, the Company had five clients representing 10% or more of the sugarcane or grains segments, totaling 78.3% of the total sales of the Company. Of these five clients, two accounted for 86.0% and 14.0% of the revenues from the sugarcane segment and three accounted for 31.0%, 16.0% and 9.9% of the revenues from the grains segment.

b)  Geographic information

Revenues and non-current assets, excluding financial instruments, income tax and social contribution, deferred assets, post-employment benefits and rights arising from insurance contracts are distributed as follows:

	In Brazil				Subsidiaries abroad (a)
	2018		2017		2018		2017
Net income		218,224		137,397		26,054		9,514
Non-current assets		646,528		736,170		182,628		3,749

(a) The subsidiaries abroad are all located in Paraguay