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Biological assets

12 Months Ended

Jun. 30, 2025

14. Biological assets

Changes in the Group’s biological assets and their allocation to the fair value hierarchy for the years ended June 30, 2025 and 2024 were as follows:

	Agricultural business
	Sown land-crops						Sugarcane fields			Breeding cattle and cattle for sale (i)			Other cattle (i)			Others			Total
	Level 1			Level 3			Level 3			Level 2			Level 2			Level 1			Level 1
Balance as of June 30, 2023		46,076			8,987			32,457			56,047			870			594			145,031
Non-current (Production)		-			-			-			46,847			761			590			48,198
Current (Consumable)		46,076			8,987			32,457			9,200			109			4			96,833
Balance as of June 30, 2023		46,076			8,987			32,457			56,047			870			594			145,031
Transfers		(3,486	)		3,486			-			-			-			-			-
Purchases		-			-			-			10,348			10			-			10,358
Initial recognition and changes in the fair value of biological assets (i)		-			12,857			4,432			(8,725	)		(427	)		-			8,137
Decrease due to harvest		-			(236,452	)		(69,427	)		-			-			-			(305,879	)
Sales		-			-			-			(28,397	)		(50	)		-			(28,447	)
Consumptions		-			-			-			(125	)		(3	)		(129	)		(257	)
Costs for the year		21,748			235,623			65,099			24,206			-			81			346,757
Foreign exchange		(42,690	)		(5,271	)		(5,635	)		(1,770	)		-			-			(55,366	)
Balance as of June 30, 2024		21,648			19,230			26,926			51,584			400			546			120,334
Non-current (Production)		-			-			-			38,228			304			541			39,073
Current (Consumable)		21,648			19,230			26,926			13,356			96			5			81,261
Balance as of June 30, 2024		21,648			19,230			26,926			51,584			400			546			120,334
Purchases		-			-			-			20,919			35			-			20,954
Transfers		(3,205	)		3,205			-			-			-			-			-
Initial recognition and changes in the fair value of biological assets (i)		-			3,443			8,724			6,941			441			-			19,549
Decrease due to harvest		-			(200,126	)		(73,417	)		-			-			-			(273,543	)
Sales		-			-			-			(37,376	)		(23	)		-			(37,399	)
Consumes		-			-			-			(119	)		(2	)		(368	)		(489	)
Costs for the year		2,362			215,887			66,361			28,916			-			436			313,962
Currency translation adjustment		(11,883	)		(352	)		(1,041	)		(857	)		-			-			(14,133	)
Balance as of June 30, 2025		8,922			41,287			27,553			70,008			851			614			149,235
Non-current (Production)		-			-			-			42,207			737			609			43,553
Current (Consumable)		8,922			41,287			27,553			27,801			114			5			105,682
Balance as of June 30, 2025		8,922			41,287			27,553			70,008			851			614			149,235

(i) Biological assets with a production cycle of more than one year (that is, cattle) generated “Initial recognition and changes in fair value of biological assets” amounting to ARS 7,382 and ARS (9,152) for the fiscal years ended June 30, 2025 and 2024, respectively. For the fiscal years ended June 30, 2025 and 2024, amounts of ARS 8,103 and ARS (5,588), was attributable to price changes, and amounts of ARS (721) and ARS (3,564), was attributable to physical changes generated by production result, respectively.

Crops and oilseeds

The Group’s crops generally include crops and oilseeds (corn, wheat, soybean and sunflower) as well as peanut. The Group measures biological assets that have attained significant biological growth at fair value less costs to sell. The Group measures biological assets that have not attained significant biological growth or when the impact of biological transformation on price is not expected to be material, at cost less any impairment losses, which approximates fair value.

Sugarcane

The Group’s sugarcane production is based in Brazil and to a lesser extent in Bolivia. This crop’s production requires specific weather conditions (tropical and subtropical climates. The Group recognizes these crops at a fair value net of costs of sales as soon as the biological transformation of the bearer plant is observed.

Fair value of biological assets

When an active market exists for biological assets, the Group uses the quoted market price in the principal market as a basis to determine the fair value of its biological assets. Live cattle is measured at fair value less cost to sell, based on market quoted at an auction involving cattle of the same age, breed and genetic merit adjusted, if applicable, to reflect any difference. When there is no active market or market-determined prices are not available, (for example, unharvested crops with significant growth or growing agricultural produce of sugarcane), the Group determines the fair value of a biological asset based on discounted cash flows models.

These models require the input of highly subjective assumptions including observable and unobservable data. The not observable information is determined based on the best information available for example, by reference to historical information of past practices and results, statistics and agricultural information and other analytical techniques. Key assumptions utilized in this method include future market prices, estimated yields at the point of harvest and estimated future costs of harvesting and other costs.

Market prices are generally determined by reference to observable data in the principal market for the agricultural produce. Harvesting costs and other costs are estimated based on historical and statistical data. Yields are estimated based on several factors including the location of the farmland and soil type, environmental conditions, infrastructure and other restrictions and growth at the time of measurement. Yields are subject to a high degree of uncertainty and may be affected by several factors out of the Group’s control including but not limited to extreme or unusual weather conditions, plagues and other crop diseases.

The key assumptions discussed above are highly sensitive. Reasonable shifts in assumptions including but not limited to increases or decreases in prices, costs and discount factors used may result in a significant increase or decrease to the fair value of biological assets recognized at any given time. Cash flows are projected based on estimated production. Estimates of production in themselves are dependent on various assumptions, in addition to those described above, including but not limited to several factors such as location, environmental conditions and other restrictions. Changes in these estimates could materially impact on estimated production, and could therefore affect estimates of future cash flows used in the assessment of fair value. The valuation models and their assumptions are reviewed periodically, and, if necessary, adjusted.

As of June 30 of each year, the Group’s biological assets that are subject to a valuation model include unharvested crops and sugarcane plantations.

The fair value less estimated selling costs of agricultural produce at the point of harvest amount to ARS (212,444) and ARS (222,766) for the years ended June 30, 2025 and 2024, respectively.

When no quoted prices are available in an active market, the Group uses a range of valuation models. The following table presents main parameters:

Description	Valuation technique	Parameters	Range
Cattle (Level 2)	Comparable market prices	Price per livestock head/kg and per category	-
Sown land-crops (Level 3)	Discounted cash flows	Yields - Operating costs - Selling expenses - Future of sale prices - Discount rate	Argentina
			Yields: 0.62 - 15.33 Tn/ha
			Future of sale prices: 211,612 - 723,937 ARS/Tn
			Operating cost: 72,159 - 530,375 ARS/ha
			Brazil:
			Yields: 101.6 Sacas/ha
			Future of sale prices: 43.84 BRL/tn
			Operating cost: 11.45 BRL/ha.
Sugarcane fields (Level 3)	Discounted cash flows	Yields - Operating costs - Selling expenses - Future of sale prices - Discount rate	Brazil:
			Yields: 83.17 tn/ha
			Future of sale prices: 133.79 BRL/tn.
			Operating cost: 77.94 BRL/tn.

As of June 30, 2025 and 2024, the better and maximum use of biological assets shall not significantly differ from the current use.

Capitalized cost of production as of June 30, 2025, 2024 and 2023 are as follows:

	06.30.2025		06.30.2024		06.30.2023
Supplies and labors		226,034		256,466		268,886
Salaries, social security costs and other personnel expenses		15,232		17,158		16,109
Depreciation and amortization		47,617		44,809		47,364
Fees and payments for services		1,318		1,038		708
Maintenance, security, cleaning, repairs and others		2,363		2,517		2,268
Taxes, rates and contributions		526		338		487
Leases and service charges		254		200		176
Freights		2,814		1,899		2,476
Travelling, library expenses and stationery		1,992		1,890		1,832
Other expenses		15,376		20,361		17,784
		313,526		346,676		358,090