6-K
Cresud Inc (CRESY)
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Financial Statements as of December 31, 2024 and for the six and three-month periods ended as of that date, presented comparatively.
Legal information
| Denomination: Cresud Sociedad<br>Anónima, Comercial, Inmobiliaria, Financiera y<br>Agropecuaria | ||
|---|---|---|
| Fiscal year N°: 92,<br>beginning on July 1, 2024 | ||
| Legal address: Carlos Della<br>Paolera 261, 9rd floor – Autonomous City of Buenos Aires,<br>Argentina | ||
| Company activity: Real estate<br>and agricultural activities | ||
| Date of registration of the by-laws in the Public Registry of<br>Commerce: February 19,<br>1937 | ||
| Date of registration of last amendment of the by-laws in the Public<br>Registry of Commerce: Ordinary<br>and Extraordinary General Assembly of October 28, 2022 registered<br>in the General Inspection of Justice on December 5, 2022 under<br>Number 22602 of Book 110 T- of Stock Companies. | ||
| Expiration of Company charter: June 6, 2082 | ||
| Registration number with the Supervisory Board of Companies:<br>26, folio 2, book 45, Stock<br>Companies | ||
| Stock: 603,140,435 common<br>shares | ||
| Common stock subscribed, issued and paid up nominal value (millions<br>of ARS): 603 | ||
| Control Group: Eduardo S.<br>Elsztain directly and through Inversiones Financieras del Sur S.A.,<br>Consultores Venture Capital Uruguay S.A. and Consultores Asset<br>Management S.A.. | ||
| Legal addresses: Bolívar<br>108, 1st floor, Autonomous City of Buenos Aires, Argentina (Eduardo<br>S. Elsztain) - Road 8, km 17,500, Zonamérica Building 1, store<br>106, Montevideo, Uruguay (IFISA) - Road 8, km 17,500,<br>Zonamérica Building 1, store 106, Montevideo, Uruguay<br>(Consultores Venture Capital Uruguay S.A.) - Bolívar 108, 1st<br>floor, Autonomous City of Buenos Aires, Argentina (Consultores<br>Asset Management S.A.). | ||
| Parent companies' activity:<br>Investment | ||
| Direct and indirect participation of the Control Group over the<br>capital: 230,771,688<br>shares | ||
| Voting stock (direct and indirect equity interest):<br>38.67% (*) | ||
| Type of stock | CAPITAL STATUS | |
| Authorized to be offered publicly (Shares) | Subscribed, Issued and Paid-in (millions of ARS) | |
| Ordinary certified shares of ARS 1 face value and 1 vote<br>each | 603,140,435 (**) | 603 |
| (*) For computation purposes, treasury shares have been<br>subtracted. | ||
| (**) Company not included in the Optional Statutory System of<br>Public Offer of Compulsory Acquisition. |
Index
| Glossary of terms | 1 |
|---|---|
| Unaudited Condensed Interim Consolidated Statements of Financial<br>Position | 2 |
| Unaudited Condensed Interim Consolidated Statements of Income and<br>Other Comprehensive Income | 3 |
| Unaudited Condensed Interim Consolidated Statements of Changes in<br>Shareholders' Equity | 4 |
| Unaudited Condensed Interim Consolidated Statements of Cash<br>Flows | 6 |
| Notes to the Unaudited Condensed Interim Consolidated Financial<br>Statements: | |
| Note<br>1 - The Group's business and general information | 7 |
| Note<br>2 - Summary of significant accounting policies | 7 |
| Note<br>3 - Seasonal effects on operations | 8 |
| Note<br>4 - Acquisitions and disposals | 9 |
| Note<br>5 - Financial risk management and fair value estimates | 11 |
| Note<br>6 - Segment information | 12 |
| Note<br>7 - Investments in associates and joint ventures | 16 |
| Note<br>8 - Investment properties | 17 |
| Note<br>9 - Property, plant and equipment | 18 |
| Note<br>10 - Trading properties | 19 |
| Note<br>11 - Intangible assets | 19 |
| Note<br>12 - Right-of-use assets and lease liabilities | 19 |
| Note<br>13 - Biological assets | 20 |
| Note<br>14 - Inventories | 21 |
| Note<br>15 - Financial instruments by category | 21 |
| Note<br>16 - Trade and other receivables | 23 |
| Note<br>17 - Cash flow and cash equivalents information | 24 |
| Note<br>18 - Trade and other payables | 25 |
| Note<br>19 - Provisions | 25 |
| Note<br>20 - Borrowings | 26 |
| Note<br>21 - Taxation | 28 |
| Note<br>22 - Revenues | 29 |
| Note<br>23 - Costs | 29 |
| Note<br>24 - Expenses by nature | 29 |
| Note<br>25 - Other operating results, net | 30 |
| Note<br>26 - Financial results, net | 30 |
| Note<br>27 - Related parties transactions | 30 |
| Note<br>28 - CNV General Resolution N° 622 | 32 |
| Note<br>29 - Cost of sales and services provided | 32 |
| Note<br>30 - Foreign currency assets and liabilities | 33 |
| Note<br>31 - Other relevant events of the period | 34 |
| Note<br>32 - Subsequent Events | 36 |
Glossary of terms
The following are not technical definitions but help the reader to understand certain terms used in the wording of the notes to the Group’s Financial Statements.
| Terms | Definitions |
|---|---|
| ARCOS | Arcos del Gourmet S.A. |
| BACS | Banco de Crédito y Securitización S.A. |
| BHSA | Banco Hipotecario S.A. |
| CAMSA | Consultores Assets Management S.A. |
| CNV | Securities Exchange Commission (Argentina) |
| CODM | Chief operating decision maker |
| Cresud, “the Company”, “us” | Cresud S.A.C.I.F. y A. |
| Financial Statements | Unaudited Condensed Interim Consolidated Financial<br>Statements |
| EHSA | Entertainment Holdings S.A. |
| CPF | Collective Promotion Funds |
| GCDI | GCDI S.A. |
| IASB | International Accounting Standards Board |
| IDBD | IDB Development Corporation Ltd. |
| IFISA | Inversiones Financieras del Sur S.A. |
| IPC | Consumer's price index |
| IRSA | IRSA Inversiones y Representaciones S.A. |
| MEP | Electronic Payment Market |
| New Lipstick | New Lipstick LLC |
| IAS | International Accounting Standards |
| IFRS | International Financial Reporting Standards |
| NIS | New Israeli Shekel |
| Puerto Retiro | Puerto Retiro S.A. |
| Quality | Quality Invest S.A. |
| U.S. | United States |
| VAM | Vista al Muelle S.A. |
| Zetol | Zetol Ltd. |
1
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statement of Financial Position
as of December 31, 2024 and June 30, 2024
(All amounts in millions of Argentine pesos, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
| Note | 12.31.2024 | 06.30.2024 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Investment<br>properties | 8 | 1,918,764 | 2,120,192 |
| Property,<br>plant and equipment | 9 | 572,743 | 618,361 |
| Trading<br>properties | 10 | 22,110 | 23,660 |
| Intangible<br>assets | 11 | 73,580 | 87,801 |
| Group<br>of assets held for sale | 331 | 3,144 | |
| Right-of-use<br>assets | 12 | 101,611 | 96,889 |
| Biological<br>assets | 13 | 37,258 | 33,948 |
| Investment<br>in associates and joint ventures | 7 | 186,774 | 166,681 |
| Deferred<br>income tax assets | 21 | 12,149 | 11,814 |
| Income<br>tax credit | 27 | 17 | |
| Restricted<br>assets | 15 | 4,158 | 3,294 |
| Trade<br>and other receivables | 16 | 158,452 | 171,624 |
| Investment<br>in financial assets | 15 | 6,944 | 12,483 |
| Derivative<br>financial instruments | 15 | 422 | 1,485 |
| Total non-current assets | 3,095,323 | 3,351,393 | |
| Current assets | |||
| Trading<br>properties | 10 | 355 | 499 |
| Biological<br>assets | 13 | 109,624 | 70,602 |
| Inventories | 14 | 105,990 | 140,854 |
| Income<br>tax credit | 1,819 | 2,785 | |
| Trade<br>and other receivables | 16 | 321,507 | 316,960 |
| Investment<br>in financial assets | 15 | 213,249 | 176,978 |
| Derivative<br>financial instruments | 15 | 9,531 | 8,145 |
| Cash<br>and cash equivalents | 15 | 97,928 | 138,861 |
| Total current assets | 860,003 | 855,684 | |
| TOTAL ASSETS | 3,955,326 | 4,207,077 | |
| SHAREHOLDERS’ EQUITY | |||
| Shareholders'<br>equity (according to corresponding statement) | 739,254 | 843,378 | |
| Non-controlling<br>interest | 920,622 | 1,051,029 | |
| TOTAL SHAREHOLDERS' EQUITY | 1,659,876 | 1,894,407 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Trade<br>and other payables | 18 | 62,962 | 61,275 |
| Borrowings | 20 | 628,242 | 576,097 |
| Deferred<br>income tax liabilities | 21 | 678,163 | 773,027 |
| Provisions | 19 | 26,382 | 26,142 |
| Payroll<br>and social security liabilities | 119 | 1,621 | |
| Lease<br>liabilities | 12 | 75,723 | 74,184 |
| Derivative<br>financial instruments | 15 | 5,644 | 3,747 |
| Total non-current liabilities | 1,477,235 | 1,516,093 | |
| Current liabilities | |||
| Trade<br>and other payables | 18 | 308,582 | 301,008 |
| Borrowings | 20 | 387,958 | 420,263 |
| Provisions | 19 | 5,035 | 5,564 |
| Payroll<br>and social security liabilities | 23,104 | 24,452 | |
| Income<br>tax liabilities | 52,281 | 8,118 | |
| Lease<br>liabilities | 12 | 20,749 | 22,453 |
| Derivative<br>financial instruments | 15 | 20,506 | 14,719 |
| Total Current liabilities | 818,215 | 796,577 | |
| TOTAL LIABILITIES | 2,295,450 | 2,312,670 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,955,326 | 4,207,077 |
The accompanying notes are an integral part of these Financial Statements.
| ) | ) |
|---|---|
| Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora | Alejandro<br>G. Elsztain<br><br><br>Vice<br>President II |
2
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statement of Income and Other Comprehensive Income
for the six and three-month periods ended December 31, 2024 and 2023
(All amounts in millions of Argentine pesos, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
| Six months | Three months | ||||
|---|---|---|---|---|---|
| Note | 12.31.2024 | 12.31.2023 | 12.31.2024 | 12.31.2023 | |
| Revenues | 22 | 449,163 | 445,859 | 204,472 | 220,463 |
| Costs | 23 | (298,248) | (253,034) | (124,786) | (112,930) |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | 4,372 | (821) | 6,489 | 6,848 | |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | (1,806) | 15,077 | (3,992) | 9,726 | |
| Gross profit | 153,481 | 207,081 | 82,183 | 124,107 | |
| Net<br>(loss) / gain from fair value adjustment of investment<br>properties | 8 | (227,858) | 304,210 | 12,192 | (32,722) |
| Gain<br>from disposal of farmlands | 23,726 | 9,196 | - | 9,104 | |
| General<br>and administrative expenses | 24 | (47,279) | (35,287) | (25,752) | (27,593) |
| Selling<br>expenses | 24 | (36,478) | (35,492) | (16,673) | (16,454) |
| Other<br>operating results, net | 25 | (1,198) | 11,998 | (1,073) | 1,425 |
| Management<br>fees | - | (12,277) | - | 2,908 | |
| (Loss) / Profit from operations | (135,606) | 449,429 | 50,877 | 60,775 | |
| Share<br>of profit of associates and joint ventures | 7 | 23,654 | 43,276 | 15,909 | 36,985 |
| (Loss) / Profit before financial results and income<br>tax | (111,952) | 492,705 | 66,786 | 97,760 | |
| Finance<br>income | 26 | 3,350 | 18,864 | (1,148) | 10,395 |
| Finance<br>cost | 26 | (37,109) | (40,676) | (17,608) | (18,847) |
| Other<br>financial results | 26 | 93,090 | (271,394) | 35,770 | (259,401) |
| Inflation<br>adjustment | 26 | (34,418) | 148,683 | (26,955) | 116,984 |
| Financial<br>results, net | 26 | 24,913 | (144,523) | (9,941) | (150,869) |
| (Loss) / Profit before income tax | (87,039) | 348,182 | 56,845 | (53,109) | |
| Income<br>tax | 21 | 22,648 | (82,064) | (43,055) | 55,620 |
| (Loss) / Profit for the period | (64,391) | 266,118 | 13,790 | 2,511 | |
| Other<br>comprehensive (loss) / income: | |||||
| Items that may be reclassified subsequently to profit or<br>loss: | |||||
| Currency<br>translation adjustment and other comprehensive results from<br>subsidiaries and associates (i) | (85,410) | 298,845 | (65,504) | 322,302 | |
| Revaluation<br>surplus | 277 | 2,299 | 7 | 863 | |
| Total other comprehensive (loss) / income for the<br>period | (85,133) | 301,144 | (65,497) | 323,165 | |
| Total comprehensive (loss) / income for the period | (149,524) | 567,262 | (51,707) | 325,676 | |
| (Loss) / Profit for the period attributable to: | |||||
| Equity<br>holders of the parent | (61,541) | 106,267 | (18,804) | (29,859) | |
| Non-controlling<br>interest | (2,850) | 159,851 | 32,594 | 32,370 | |
| Total comprehensive (loss) / income attributable to: | |||||
| Equity<br>holders of the parent | (92,161) | 214,251 | (42,516) | 85,331 | |
| Non-controlling<br>interest | (57,363) | 353,011 | (9,191) | 240,345 | |
| (Loss) / Profit for the period per share attributable to equity<br>holders of the parent (ii): | |||||
| Basic | (103.27) | 179.48 | (31.55) | (49.68) | |
| Diluted | (103.27)<br>(iii) | 152.23 | (31.55)<br>(iii) | (49.68)<br>(iii) |
(i)
Components of other comprehensive (loss)/ income have no impact on income tax.
(ii)
See Note 30 to the Annual Consolidated Financial Statements as of June 30, 2024.
(iii)
Given that the result for the period showed losses, there is no diluted effect of such result.
The accompanying notes are an integral part of these Financial Statements.
| ) | ) |
|---|---|
| Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora | Alejandro<br>G. Elsztain<br><br><br>Vice<br>President II |
3
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statement of Changes in Shareholders’ Equity
for the six-month period ended December 31, 2024
(All amounts in millions of Argentine pesos, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
| Attributable to equity holders of the parent | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share capital | ||||||||||||
| Outstanding<br>shares | Treasury<br>shares | Inflation<br>adjustment of share capital and treasury shares (i) | Warrants (ii) | Share<br>premium | Additional<br>paid-in capital from treasury shares | Legal<br>reserve | Other<br>reserves (iii) | Accumulated<br>deficit | Subtotal | Non-controlling<br>interest | Total<br>Shareholders' equity | |
| Balance as of June 30, 2024 | 594 | 2 | 246,894 | 22,381 | 325,047 | (27,077) | 33,259 | 186,799 | 55,479 | 843,378 | 1,051,029 | 1,894,407 |
| Loss<br>for the period | - | - | - | - | - | - | - | - | (61,541) | (61,541) | (2,850) | (64,391) |
| Other<br>comprehensive loss for the period | - | - | - | - | - | - | - | (30,620) | - | (30,620) | (54,513) | (85,133) |
| Total comprehensive loss for the period | - | - | - | - | - | - | - | (30,620) | (61,541) | (92,161) | (57,363) | (149,524) |
| Assignment<br>of results - Shareholders’ meeting | - | - | - | - | - | - | 4,288 | 34,134 | (38,422) | - | - | - |
| Repurchase<br>of treasury shares | (5) | 5 | - | - | - | - | - | (6,517) | - | (6,517) | (7,495) | (14,012) |
| Reserve<br>for share - based payments | - | - | - | - | - | (132) | - | 135 | - | 3 | 112 | 115 |
| Dividends<br>distribution | - | - | - | - | - | - | - | - | (47,338) | (47,338) | (61,910) | (109,248) |
| Exercise<br>of warrants (ii) | 7 | - | 101 | (1,285) | 46,256 | - | - | - | - | 45,079 | 1,019 | 46,098 |
| Changes<br>in non-controlling interest | - | - | - | - | - | - | - | (10,907) | - | (10,907) | (4,899) | (15,806) |
| Other<br>changes in shareholders' equity | - | - | - | - | - | - | - | 7,717 | - | 7,717 | - | 7,717 |
| Capitalization<br>of irrevocable contributions | - | - | - | - | - | - | - | - | - | - | 129 | 129 |
| Balance as of December 31, 2024 | 596 | 7 | 246,995 | 21,096 | 371,303 | (27,209) | 37,547 | 180,741 | (91,822) | 739,254 | 920,622 | 1,659,876 |
(i) Includes ARS 1 of Inflation adjustment of treasury shares as of December 31, 2024. See Note 19 to the Annual Consolidated Financial Statements as of June 30, 2024.
(ii) As of December 31, 2024, the remaining warrants to exercise amount to 81,063,170. See Note 31 to these Financial Statements.
(iii) Group’s other reserves for the period ended December 31, 2024 are comprised as follows:
| Cost of treasury shares | Reserve for currency translation adjustment | Reserve for future dividends | Reserve for the acquisition of securities issued by the<br>Company | Special reserve | Other reserves (i) | Total other reserves | |
|---|---|---|---|---|---|---|---|
| Balance as of June 30, 2024 | (3,360) | (8,893) | 33,427 | 2,377 | 159,469 | 3,779 | 186,799 |
| Other<br>comprehensive (loss) / income for the period | - | (30,920) | - | - | - | 300 | (30,620) |
| Total comprehensive (loss) / income for the period | - | (30,920) | - | - | - | 300 | (30,620) |
| Assignment<br>of results - Shareholders’ meeting | - | - | (33,427) | - | 67,561 | - | 34,134 |
| Repurchase<br>of treasury shares | (6,517) | - | - | - | - | - | (6,517) |
| Changes<br>in non-controlling interest | - | - | - | - | - | (10,907) | (10,907) |
| Reserve<br>for share-based payments | 134 | - | - | - | - | 1 | 135 |
| Other<br>changes in shareholders' equity | - | 249 | - | - | - | 7,468 | 7,717 |
| Balance as of December 31, 2024 | (9,743) | (39,564) | - | 2,377 | 227,030 | 641 | 180,741 |
(i) Includes revaluation surplus.
The Company does not hold any preferred shares, therefore there are no unpaid dividends on such shares.
The accompanying notes are an integral part of these Consolidated Financial Statements.
| ) | ) |
|---|---|
| Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora | Alejandro<br>G. Elsztain<br><br><br>Vice<br>President II |
4
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
for the six-month period ended December 31, 2023
(All amounts in millions of Argentine pesos, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
| Attributable to equity holders of the parent | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share capital | ||||||||||||
| Outstanding<br>shares | Treasury<br>shares | Inflation<br>adjustment of share capital and treasury shares (i) | Warrants | Share<br>premium | Additional<br>paid-in capital from treasury shares | Legal<br>reserve | Other<br>reserves (ii) | Retained<br>earnings | Subtotal | Non-controlling<br>interest | Total<br>Shareholders' equity | |
| Balance as of June 30, 2023 | 586 | 7 | 246,850 | 22,979 | 305,480 | (17,245) | 23,620 | 202,710 | 151,228 | 936,215 | 1,224,585 | 2,160,800 |
| Profit<br>for the period | - | - | - | - | - | - | - | - | 106,267 | 106,267 | 159,851 | 266,118 |
| Other<br>comprehensive income for the period | - | - | - | - | - | - | - | 107,984 | - | 107,984 | 193,160 | 301,144 |
| Total comprehensive income for the period | - | - | - | - | - | - | - | 107,984 | 106,267 | 214,251 | 353,011 | 567,262 |
| Assignment<br>of results - Shareholders’ meeting | - | - | - | - | - | - | 9,639 | 71,430 | (81,069) | - | - | - |
| Issuance<br>of shares | 1 | (1) | - | - | - | (1,639) | - | 1,639 | - | - | - | - |
| Repurchase<br>of treasury shares | - | - | - | - | - | - | - | - | - | - | (5,485) | (5,485) |
| Reserve<br>for share-based payments | - | - | - | - | - | (407) | - | (94) | - | (501) | (919) | (1,420) |
| Exercise<br>of warrants | 1 | - | 12 | (165) | 5,837 | - | - | - | - | 5,685 | 72 | 5,757 |
| Changes<br>in non-controlling interest | - | - | - | - | - | - | - | (9,776) | - | (9,776) | 15,689 | 5,913 |
| Dividends<br>distribution | - | - | - | - | - | - | - | - | (111,708) | (111,708) | (133,704) | (245,412) |
| Other<br>changes in shareholders' equity | - | - | - | - | - | - | - | 5,419 | (5,419) | - | - | - |
| Capitalization<br>of irrevocable contributions | - | - | - | - | - | - | - | - | - | - | 73 | 73 |
| Integration<br>of irrevocable contributions | - | - | - | - | - | - | - | - | - | - | 427 | 427 |
| Balance as of December 31, 2023 | 588 | 6 | 246,862 | 22,814 | 311,317 | (19,291) | 33,259 | 379,312 | 59,299 | 1,034,166 | 1,453,749 | 2,487,915 |
(i) Includes ARS 17 nof Inflation adjustment of treasury shares as of December 31, 2023. See Note 19 to the Annual Consolidated Financial Statements as of June 30, 2024.
(ii) Group’s other reserves for the period ended December 31, 2023 are comprised as follows:
| Cost of treasury shares | Reserve for currency translation adjustment | Reserve for future dividends | Reserve for the acquisition of securities issued by the<br>Company | Special reserve | Other reserves (i) | Total other reserves | |
|---|---|---|---|---|---|---|---|
| Balance as of June 30, 2023 | (11,650) | 26,775 | - | 2,377 | 154,050 | 31,158 | 202,710 |
| Other<br>comprehensive income for the period | - | 106,250 | - | - | - | 1,734 | 107,984 |
| Total comprehensive income for the period | - | 106,250 | - | - | - | 1,734 | 107,984 |
| Assignment of<br>results - Shareholders’ meeting | - | - | 71,430 | - | - | - | 71,430 |
| Issuance of<br>shares | 1,639 | - | - | - | - | - | 1,639 |
| Changes in<br>non-controlling interest | - | - | - | - | - | (9,776) | (9,776) |
| Reserve for<br>share-based payments | 416 | - | - | - | - | (510) | (94) |
| Other changes in<br>shareholders' equity | - | - | - | - | 5,419 | - | 5,419 |
| Balance<br>as of December 31, 2023 | (9,595) | 133,025 | 71,430 | 2,377 | 159,469 | 22,606 | 379,312 |
(i) Includes revaluation surplus.
The Company does not hold any preferred shares, therefore there are no unpaid dividends on such shares.
The accompanying notes are an integral part of these Consolidated Financial Statements.
| ) | ) |
|---|---|
| Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora | Alejandro<br>G. Elsztain<br><br><br>Vice<br>President II |
5
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statement of Cash Flows
for the six-month periods ended December 31, 2024 and 2023
(All amounts in millions of Argentine pesos, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
| Note | 12.31.2024 | 12.31.2023 | |
|---|---|---|---|
| Operating activities: | |||
| Net<br>cash (used in) / generated from operating activities before income<br>tax paid | 17 | (13,487) | 112,684 |
| Income<br>tax paid | (6,884) | (6,487) | |
| Net cash (used in) / generated from operating<br>activities | (20,371) | 106,197 | |
| Investing activities: | |||
| Proceeds from the<br>sale of participation in associates and joint ventures | 4,892 | 28,342 | |
| Capital<br>contributions to associates and joint<br>ventures | (31) | - | |
| Acquisition<br>and improvement of investment properties | (19,402) | (7,119) | |
| Proceeds<br>from sales of investment properties | 6,545 | 43,004 | |
| Acquisitions<br>and improvements of property, plant and equipment | (17,449) | (65,785) | |
| Acquisition<br>of intangible assets | (2,069) | (1,246) | |
| Proceeds<br>from sales of property, plant and equipment | 16,995 | 58,611 | |
| Dividends<br>collected from associates and joint ventures | - | 534 | |
| Proceeds<br>from loans granted | 460 | 1,140 | |
| Acquisitions<br>of investments in financial assets | (324,474) | (306,485) | |
| Proceeds<br>from disposal of investments in financial assets | 265,248 | 354,426 | |
| Interest<br>received from financial assets | 6,042 | 12,606 | |
| Payments<br>of derivative financial instruments | 966 | 189 | |
| Net cash (used in) / generated from investing<br>activities | (62,277) | 118,217 | |
| Financing activities: | |||
| Borrowings,<br>issuance and new placement of non-convertible notes | 226,476 | 131,949 | |
| Payment<br>of borrowings and non-convertible notes | (85,369) | (149,512) | |
| (Payment)<br>/ Obtaining of short term loans, net | (973) | 65,208 | |
| Interest<br>paid | (46,819) | (89,496) | |
| Capital<br>contributions from non-controlling interest in<br>subsidiaries | 129 | 500 | |
| Lease<br>liabilities paid | (2,278) | (157) | |
| Repurchase<br>of treasury shares | (14,012) | (5,485) | |
| Dividends<br>paid | (58,060) | (203,737) | |
| Exercise<br>of warrants | 46,098 | 5,757 | |
| Repurchase<br>of non-convertible notes | (24,854) | - | |
| Net cash generated from / (used in) financing<br>activities | 40,338 | (244,973) | |
| Net decrease in cash and cash equivalents | (42,310) | (20,559) | |
| Cash<br>and cash equivalents at the beginning of the period | 15 | 138,861 | 175,230 |
| Foreign<br>exchange gain on cash and unrealized fair value result for cash<br>equivalents | 7,598 | 56,697 | |
| Inflation<br>adjustment | (6,221) | 10,302 | |
| Cash and cash equivalents at the end of the period | 15 | 97,928 | 221,670 |
The accompanying notes are an integral part of these Financial Statements.
| ) | ) |
|---|---|
| Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora | Alejandro<br>G. Elsztain<br><br><br>Vice<br>President II |
6
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
(All amounts in millions of Argentine pesos, except otherwise indicated)
1.
The Group’s business and general information
Cresud was founded in 1936 as a subsidiary of Credit Foncier, a Belgian company primarily engaged in providing rural and urban loans in Argentina and administering real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, the shares of Cresud were distributed to Credit Foncier’s shareholders. From the 1960s through the end of the 1970s, the business of Cresud shifted exclusively to agricultural activities.
In 2002, Cresud acquired a 19.85% interest in IRSA, a real estate company related to certain shareholders of Cresud. In 2009, Cresud increased its ownership percentage in IRSA to 55.64% and IRSA became Cresud’s direct principal subsidiary.
Cresud and its subsidiaries are collectively referred to hereinafter as the Group.
Main shareholders´ of the Company are jointly Inversiones Financieras del Sur S.A., Agroinvestment S.A and Consultores Venture Capital Uruguay S.A. This entities are companies incorporated in Uruguay and belong to the same controlling group and the ultimate beneficiary is Eduardo S. Elsztain.
The Board of Directors has approved these Financial Statements for issuance on February 10, 2025.
As of December 31, 2024, the Group operates in two major business lines: (i) agricultural business and (ii) urban property and investment business.
2.
Summary of significant accounting policies
2.1.
Basis of preparation
These financial statements have been prepared in accordance with IAS 34 “Interim financial reporting” and should therefore be read in conjunction with the Group's annual Consolidated Financial Statements as of June 30, 2024 prepared in accordance with IFRS Accounting Standards, issued by the IASB. Also, these financial statements include additional information required by Law No. 19,550 and / or regulations of the CNV. Such information is included in the notes to these financial statements, as accepted by IFRS Accounting Standards.
These financial statements as of December 31, 2024 and for the interim periods of six months ended December 31, 2024 and 2023 have not been audited. Management considers that they include all the necessary adjustments to fairly state the results of each period. Interim period results do not necessarily reflect the proportion of the Group's results for the entire fiscal years.
IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated by non-monetary items. This requirement also includes the comparative information of the financial statements.
In order to conclude on whether an economy is categorized as highly inflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of an accumulated inflation rate in three years that approximates or exceeds 100%. Accumulated inflation in Argentina in three years is over 100%. For that reason, in accordance with IAS 29, Argentina must be considered a country with a highly inflationary economy starting July 1, 2018.
In relation to the inflation index to be used and in accordance with Argentine Federation of Professional Councils in Economic Sciences (FACPCE) Resolution No. 539/18, it is determined based on the Wholesale Price Index (IPIM) until 2016, considering the average variation of the Consumer Price Index (CPI) of the Autonomous City of Buenos Aires for the months of November and December 2015, because during those two months there were no national IPIM measurements. Then, from January 2017, the National Consumer Price Index (National CPI) is considered.
7
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The table below presents the index for the period between the last fiscal year and as of December 31, 2024, and for the 12 month period ending on the same date, according to official statistics (INDEC) and following the guidelines described in Resolution 539/18.
| As of<br>December 31, 2024 (six months) | As of<br>December 31, 2024 (twelve months) | |
|---|---|---|
| Price<br>variation | 21% | 118% |
As a consequence of the aforementioned, these financial statements as of December 31, 2024 were restated in accordance with IAS 29.
2.2
Accounting policies
The accounting policies applied in the presentation of these Financial Statements are consistent with those applied in the preparation of the Annual Financial Statements, as described in Note 2 to those Financial Statements.
2.3
Comparability of information
Balance items as of June 30, 2024 and December 31, 2023 presented in these Financial Statements for comparative purposes arise from the financial statements as of and for such periods, restated according to IAS 29 (See Note 2.1).
2.4
Use of estimates
The preparation of Financial Statements at a certain date requires Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements. In the preparation of these financial statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same as the ones applied by the Group in the preparation of the Annual Financial Statements described in Note 3 to those Financial Statements.
3.
Seasonal effects on operations
Agricultural business
Some of the Group’s businesses are more affected by seasonal effects than others. The operations of the Group’s agricultural business are subject to seasonal effects. The harvests and sale of grains in Argentina generally take place each year since June in the case of corn and soybean since March, since October in the case of wheat, and since December in the case of sunflower. In Brazil, the harvest and sale of soybean take place since February, and in the case of corn weather conditions make it possible to have two seasons, therefore the harvest take place between March and July. In Bolivia, weather conditions also make it possible to have two soybean, corn and sorghum seasons and, therefore, these crops are harvested in July and May, whereas wheat is harvested in August and September, respectively. In the case of sugarcane, harvest and sale take place between April and November of each year. Other segments of the agricultural business, such as beef cattle production tend to be more stable. However, beef cattle production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results across quarters.
Urban properties and investments business
The operations of the Group’s shopping malls are subject to seasonal effects, which affect the level of sales recorded by lessees. During summertime in Argentina (January and February), the lessees of shopping malls experience the lowest sales levels in comparison with the winter holidays (July) and Christmas and year-end holidays celebrated in December, when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping malls sales. Sale discounts at the end of each season also affect the business. As a consequence, for shopping mall operations, a higher level of business activity is expected in the period from July through December, compared to the period from January through June.
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
4.
Acquisitions and disposals
Significant acquisitions and disposals for the six-month period ended December 31, 2024 are detailed below. Significant acquisitions and disposals for the fiscal year ended June 30, 2024, are detailed in Note 4 to the Annual Financial Statements.
Agricultural business
Acquisition of “Agrícola Nova Horizonte” - Brasilagro
On May 20, 2024, BrasilAgro acquired Agrícola Nova Horizonte S.A., an agricultural company focused on grain production, with 4,767 hectares leased for 16 years, at an average price of 13 bags per hectare. This acquisition aligns with the Group’s strategy to expand its presence in the sector, increase market share, and optimize agricultural operations.
On August 6, 2024, after fulfilment of the conditions precedent, the closing agreement was signed and BrasilAgro assumed control of the operations. As of that date, the assets and liabilities of the acquired company will be consolidated.
The total value of the acquisition was BRL 6.2 million, as stipulated in the contract. The contract provided for a price adjustment to reflect the variation between June 30, 2024 and the date of the transaction, in accordance with the criteria previously established between the parties.
The amounts are expressed in the currency of the transaction date.
Sale of fraction of “Alto Taquari” farm
Brasilagro
On September 26, 2024, Brasilagro completed the sale of the remaining balance of 1,157 hectares of the Alto Taquari farm, a rural property located in the municipalities of Alto Taquari and Araputanga - Mato Grosso. The contract was signed on September 1, 2021 and established the transfer of possession in two stages, the first being on October 10, 2021.
The amount to be paid was set at 1,272,274 bags of soybeans, equivalent to BRL 189.4 million on the date of the transaction. The gain has been recognized during the current period.
Sale of fraction of “Rio do meio” farm – Brasilagro
On September 30, 2024, Brasilagro transferred 190 hectares due to the sale of the Rio do Meio farm, a rural property located in the municipality of Correntina-Bahia. The contract was signed on November 8, 2022 and established the transfer of ownership in four stages, this being the third, the deadline for the fourth and final transfer is set for July 2025.
The amount to be paid was set at 54,053 bags of soybeans, equivalent to BRL 7 million on the date of the transaction. The gain has been recognized during the current period.
Sale of fraction of “Los Pozos” farm - CRESUD
On September 30, 2024, Cresud signed the transfer of ownership deed for the sale of a fraction of the farmland of the establishment called “Los Pozos” located in the province of Salta, with a total area of 3,630 hectares, leaving a remainder of approximately 231,700 hectares of said establishment in the hands of the Company. The total price was USD 2.23 million (USD/ha 614), of which USD 1.1 million have been collected to date. The remaining balance of USD 1.13 million, guaranteed with a mortgage on the property, will be collected in a single installment in September 2025.
The amounts are expressed in the currency of the transaction date.
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Urban property business and investments
Payment of installments for share purchase - Zetol
On July 12, 2024, the payment of the installments for the purchase of shares in Zetol, corresponding to Towers 3 and 4, was completed for a total amount of USD 8.9 million, including units, parking spaces, and credits in favor of VAM and Zetol for Towers 1 and 2.
The amounts are expressed in the currency of the transaction date.
Purchase of property adjacent to Alto Avellaneda shopping mall - IRSA
On August 1, 2024, IRSA acquired a property adjacent to its Alto Avellaneda shopping mall, located at Gral. Güemes 861, Avellaneda, Province of Buenos Aires.
The property has a total area of 86,861 square meters and a built-up area of 32,660 square meters, with potential for future expansion.
The purchase price was set at USD 12.2 million, of which USD 9.2 million has already been paid, and the remaining USD 3 million will be settled upon the transfer of the title deed, which will be granted within 3 years from the signing of the preliminary sales agreement. The transaction includes the assignment to IRSA of the existing lease agreements until their original expiration and the signing of a new lease agreement with the supermarket for 3 years.
The amounts are expressed in the currency of the transaction date.
Merger by absorption of IRSA and Centro de Entretenimiento La Plata S.A. - IRSA
On September 11, 2024, IRSA and Centro de Entretenimiento La Plata S.A. (CELAP) Boards of Directors approved the prior merger agreement between both companies and the corresponding special financial statements as of June 30, 2024, initiating the corporate reorganization process under the terms of art. 82 et seq. of the General Law of Companies. The merger process has particular characteristics given that IRSA is included in the public offering regime, reason why, not only apply the current provisions of the General Law of Companies but also the procedures established regarding reorganization of companies of the Regulations of the CNV and the markets, both national and foreign, where its shares are listed.
The merger was carried out in order to streamline the technical, administrative, operational and economic resources of both Companies.
On October 14 and 28, 2024, the Shareholders' Meetings of IRSA and CELAP, respectively, were held, approving the merger by absorption, whose effective date was established on July 1, 2024. As of that date, the transfer to the absorbent of the totality of the equity of the absorbed company, thereby incorporating all its rights and obligations, assets and liabilities into the equity of the absorbing company.
Likewise, and in accordance with the prior merger agreement, there is no exchange ratio, since IRSA, in its capacity as the controlling company of CELAP with a 100% share, does not receive its own shares given that its holding in CELAP already it is incorporated into its equity.
“261 Della Paolera” floor sale - IRSA
On October 15, 2024, IRSA sold a floor of the “261 Della Paolera” tower located in the Catalinas district of the Autonomous City of Buenos Aires for a total leasable area of approximately 1,197 square meters and 8 parking lots located in the building.
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The transaction price was approximately USD 7.1 million (MEP) (See Note 8) (USD/ square meters 6,000), of which USD 6.0 million has already been paid and the balance of USD 1.1 million, granted with a mortgage, will be paid in 24 monthly installments accruing an interest rate of 8% annually.
After this operation, IRSA retains ownership of 3 floors of the building with an approximate leasable area of 3,670 square meters in addition to parking lots and other complementary spaces.
Purchase of Shopping Mall “Terrazas de Mayo” - IRSA
On December 3, 2024, IRSA signed an agreement to acquire the business assets of the “Terrazas de Mayo” shopping mall located at the intersection of routes 8 and 202, in front of Campo de Mayo, in the Malvinas Argentinas district, in the northwest of Greater Buenos Aires. The shopping mall has 86 stores, 20 stands and a built-up area of 33,700 square meters, which includes 15 gastronomic stores and 10 movie theaters.
The amount of the operation was set at USD 27.75 million, of which 60% was paid at the time of signing the bill with possession, 20% will be paid at the time of signing the final deed and 20% remaining 36 months from the signing of the deed. Implicit interests have been segregated for a total of USD 1.8 million.
5.
Financial risk management and fair value estimates
These Financial Statements do not include all the information and disclosures on financial risk management; therefore, they should be read along with Note 5 to the Annual Financial Statements. There have been no changes in risk management or risk management policies applied by the Group since year-end.
From June 30, 2024 and up to the date of issuance of these Financial Statements, there have been no significant changes in business or economic circumstances affecting the fair value of the Group's assets or liabilities, (either measured at fair value or amortized cost).
11
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
6.
Segment information
As explained in Note 6 to the Annual Consolidated Financial Statements, segment information is reported from the perspective of products and services: (i) agricultural business and (ii) urban properties and investment business.
Below is a summary of the Group’s operating segments and a reconciliation between the operating income according to segment information and the operating income of the Statement of Income and Other Comprehensive Income of the Group for the six-month periods ended December 31, 2024 and 2023:
| 12.31.2024 | |||||||
|---|---|---|---|---|---|---|---|
| Agricultural<br>business (I) | Urban<br>Properties and Investment business (II) | Total<br>segment information | Joint<br>ventures (i) | Adjustments<br>(ii) | Elimination<br>of inter-segment transactions and non-reportable assets /<br>liabilities (iii) | Total<br>Statement of Income and Other Comprehensive Income/ Financial<br>Position | |
| Revenues | 238,715 | 170,141 | 408,856 | (949) | 42,949 | (1,693) | 449,163 |
| Costs | (216,929) | (38,218) | (255,147) | 88 | (43,189) | - | (298,248) |
| Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest | 2,786 | - | 2,786 | - | - | 1,586 | 4,372 |
| Changes in the net<br>realizable value of agricultural products after<br>harvest | (1,806) | - | (1,806) | - | - | - | (1,806) |
| Gross profit / (loss) | 22,766 | 131,923 | 154,689 | (861) | (240) | (107) | 153,481 |
| Net (loss) / gain<br>from fair value adjustment of investment properties | (646) | (226,998) | (227,644) | (214) | - | - | (227,858) |
| Gain from disposal<br>of farmlands | 23,726 | - | 23,726 | - | - | - | 23,726 |
| General and<br>administrative expenses | (19,033) | (28,498) | (47,531) | 158 | - | 94 | (47,279) |
| Selling<br>expenses | (26,799) | (9,747) | (36,546) | 59 | - | 9 | (36,478) |
| Other operating<br>results, net | 8,415 | (9,723) | (1,308) | (8) | 135 | (17) | (1,198) |
| Profit / (loss) from operations | 8,429 | (143,043) | (134,614) | (866) | (105) | (21) | (135,606) |
| Share of (loss) /<br>profit of associates and joint ventures | (1,123) | 24,061 | 22,938 | 716 | - | - | 23,654 |
| Segment profit / (loss) | 7,306 | (118,982) | (111,676) | (150) | (105) | (21) | (111,952) |
| Reportable<br>assets | 827,875 | 2,178,927 | 3,006,802 | 907 | - | 947,617 | 3,955,326 |
| Reportable<br>liabilities (*) | - | - | - | - | - | (2,295,450) | (2,295,450) |
| Net<br>reportable assets | 827,875 | 2,178,927 | 3,006,802 | 907 | - | (1,347,833) | 1,659,876 |
12
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Below is a summarized analysis of the lines of business of the Group for the period ended December 31, 2023:
| 12.31.2023 | |||||||
|---|---|---|---|---|---|---|---|
| Agricultural business (I) | Urban Properties and Investment business (II) | Total segment information | Joint ventures (i) | Adjustments (ii) | Elimination of inter-segment transactions and non-reportable<br>assets / liabilities (iii) | Total Statement of Income and Other Comprehensive Income/<br>Financial Position | |
| Revenues | 225,523 | 183,583 | 409,106 | (997) | 38,350 | (600) | 445,859 |
| Costs | (181,614) | (32,373) | (213,987) | 122 | (39,169) | - | (253,034) |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | (1,398) | - | (1,398) | - | - | 577 | (821) |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | 15,077 | - | 15,077 | - | - | - | 15,077 |
| Gross profit | 57,588 | 151,210 | 208,798 | (875) | (819) | (23) | 207,081 |
| Net<br>gain from fair value adjustment of investment<br>properties | 2,079 | 304,614 | 306,693 | (2,483) | - | - | 304,210 |
| Gain<br>from disposal of farmlands | 9,196 | - | 9,196 | - | - | - | 9,196 |
| General<br>and administrative expenses | (20,362) | (15,335) | (35,697) | 118 | - | 292 | (35,287) |
| Selling<br>expenses | (22,907) | (12,549) | (35,456) | 87 | - | (123) | (35,492) |
| Other<br>operating results, net | 15,855 | (4,011) | 11,844 | (15) | 320 | (151) | 11,998 |
| Management<br>fees | - | - | - | - | (12,277) | - | (12,277) |
| Profit from operations | 41,449 | 423,929 | 465,378 | (3,168) | (12,776) | (5) | 449,429 |
| Share<br>of (loss) / profit of associates and joint ventures | (117) | 41,310 | 41,193 | 2,083 | - | - | 43,276 |
| Segment profit | 41,332 | 465,239 | 506,571 | (1,085) | (12,776) | (5) | 492,705 |
| Reportable<br>assets | 1,362,035 | 3,107,162 | 4,469,197 | 8,042 | - | 1,388,732 | 5,865,971 |
| Reportable<br>liabilities (*) | - | - | - | - | - | (3,378,056) | (3,378,056) |
| Net reportable assets | 1,362,035 | 3,107,162 | 4,469,197 | 8,042 | - | (1,989,324) | 2,487,915 |
(i)
Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(ii)
Includes ARS (240) and ARS (819) corresponding to Expenses and FPC as of December 31, 2024 and 2023, respectively, and ARS 12,277 to management fees, as of December 31, 2023.
(iii)
Includes deferred income tax assets, income tax and MPIT credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements.
(*)
The CODM focuses its review on reportable assets.
13
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
(I)
Agriculture line of business
The following tables present the reportable segments of the agriculture line of business:
| 12.31.2024 | |||||
|---|---|---|---|---|---|
| Agricultural<br>production | Land<br>transformation and sales | Corporate | Others | Total<br>Agricultural business | |
| Revenues | 148,762 | - | - | 89,953 | 238,715 |
| Costs | (124,728) | (134) | - | (92,067) | (216,929) |
| Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest | 2,786 | - | - | - | 2,786 |
| Changes in the net<br>realizable value of agricultural products after<br>harvest | (1,806) | - | - | - | (1,806) |
| Gross<br>profit / (loss) | 25,014 | (134) | - | (2,114) | 22,766 |
| Net loss from fair<br>value adjustment of investment properties | - | (646) | - | - | (646) |
| Gain<br>from disposal of farmlands | - | 23,726 | - | - | 23,726 |
| General and<br>administrative expenses | (10,763) | (37) | (2,617) | (5,616) | (19,033) |
| Selling<br>expenses | (16,248) | (753) | - | (9,798) | (26,799) |
| Other operating<br>results, net | (1,670) | 8,932 | - | 1,153 | 8,415 |
| (Loss)<br>/ profit from operations | (3,667) | 31,088 | (2,617) | (16,375) | 8,429 |
| Share of loss of<br>associates and joint ventures | (316) | - | - | (807) | (1,123) |
| Segment<br>(loss) / profit | (3,983) | 31,088 | (2,617) | (17,182) | 7,306 |
| Investment<br>properties | - | 65,161 | - | - | 65,161 |
| Property, plant and<br>equipment | 496,554 | 1,532 | - | 3,641 | 501,727 |
| Investments in<br>associates and joint ventures | 7,796 | - | - | 588 | 8,384 |
| Other reportable<br>assets | 181,060 | 331 | - | 71,212 | 252,603 |
| Reportable<br>assets | 685,410 | 67,024 | - | 75,441 | 827,875 |
| 12.31.2023 | |||||
| --- | --- | --- | --- | --- | --- |
| Agricultural<br>production | Land<br>transformation and sales | Corporate | Others | Total<br>Agricultural business | |
| Revenues | 153,519 | - | - | 72,004 | 225,523 |
| Costs | (137,004) | (144) | - | (44,466) | (181,614) |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | (1,398) | - | - | - | (1,398) |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | 15,077 | - | - | - | 15,077 |
| Gross<br>profit / (loss) | 30,194 | (144) | - | 27,538 | 57,588 |
| Net gain from fair<br>value adjustment of investment properties | - | 2,079 | - | - | 2,079 |
| Gain<br>from disposal of farmlands | - | 9,196 | - | - | 9,196 |
| General<br>and administrative expenses | (11,266) | (35) | (2,633) | (6,428) | (20,362) |
| Selling<br>expenses | (16,280) | (85) | - | (6,542) | (22,907) |
| Other<br>operating results, net | 658 | 12,140 | - | 3,057 | 15,855 |
| Profit<br>/ (loss) from operations | 3,306 | 23,151 | (2,633) | 17,625 | 41,449 |
| Share of profit /<br>(loss) of associates and joint ventures | 2,177 | - | - | (2,294) | (117) |
| Segment<br>profit / (loss) | 5,483 | 23,151 | (2,633) | 15,331 | 41,332 |
| Investment<br>properties | - | 144,310 | - | - | 144,310 |
| Property,<br>plant and equipment | 825,016 | 1,522 | - | 4,671 | 831,209 |
| Investments<br>in associates and joint ventures | 9,705 | - | - | 4,214 | 13,919 |
| Other<br>reportable assets | 262,678 | 5,353 | - | 104,566 | 372,597 |
| Reportable assets | 1,097,399 | 151,185 | - | 113,451 | 1,362,035 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
(II)
Urban properties and investments line of business
Below is a summarized analysis of the lines of business of Group’s in the urban properties and investments line of business:
| 12.31.2024 | ||||||
|---|---|---|---|---|---|---|
| Shopping Malls | Offices | Sales and developments | Hotels | Others | Total | |
| Revenues | 120,943 | 8,690 | 6,894 | 30,545 | 3,069 | 170,141 |
| Costs | (8,461) | (634) | (8,187) | (19,169) | (1,767) | (38,218) |
| Gross profit / (loss) | 112,482 | 8,056 | (1,293) | 11,376 | 1,302 | 131,923 |
| Net gain / (loss)<br>from fair value adjustment of investment properties<br>(i) | 119,242 | (104,714) | (241,355) | - | (171) | (226,998) |
| General<br>and administrative expenses | (13,745) | (1,112) | (5,373) | (5,463) | (2,805) | (28,498) |
| Selling<br>expenses | (5,435) | (224) | (1,031) | (2,357) | (700) | (9,747) |
| Other<br>operating results, net | (280) | 56 | (11,586) | (296) | 2,383 | (9,723) |
| Profit / (Loss) from operations | 212,264 | (97,938) | (260,638) | 3,260 | 9 | (143,043) |
| Share of profit of<br>associates and joint ventures | - | - | - | - | 24,061 | 24,061 |
| Segment profit / (loss) | 212,264 | (97,938) | (260,638) | 3,260 | 24,070 | (118,982) |
| Investment<br>and trading properties | 994,539 | 245,837 | 638,866 | - | 2,337 | 1,881,579 |
| Property,<br>plant and equipment | 3,503 | 394 | 23,206 | 40,587 | 3,355 | 71,045 |
| Investment<br>in associates and joint ventures | - | - | - | - | 171,650 | 171,650 |
| Other<br>reportable assets | 1,761 | 1,541 | 48,077 | 601 | 2,673 | 54,653 |
| Reportable assets | 999,803 | 247,772 | 710,149 | 41,188 | 180,015 | 2,178,927 |
(i) For the six-month period ended December 31, 2024, the net loss from fair value adjustment of investment properties was ARS 226,998. The net impact of the values in pesos of our properties was mainly a consequence of the change in macroeconomic conditions:
Level 2:
(a)
The value of our office buildings, undeveloped parcels of land and other rental properties measured in real terms decreased by 28.35% during the six-month period ended as of December 31, 2024, due to the variation of the implicit exchange rate which was well below inflation. Likewise, there is an impact for the sales and acquisitions of the period.
Level 3:
a)
gain of ARS 51,665 as a consequence of the variation in the projected income growth rate increase and the conversion to dollars of the projected cash flow in pesos according to the exchange rate estimates used in the cash flow from shopping malls.
b)
positive impact of ARS 101,238 resulting from the conversion into pesos of the value of the shopping malls in dollars based on the exchange rate at the end of the period.
c)
a decrease of 189 basis points in the discount rate used for cash flows and a decrease of 155 basis points in the discount rate used for perpetuity, mainly due to a decrease in the country-risk rate component and cost of debt components of the WACC discount rate used to discount the cash flow, which led to an increase in the value of the shopping malls of ARS 122,247.
Additionally, due to the impact of the inflation adjustment, ARS 144,967 were reclassified for shopping malls from “Net gain / loss) from fair value adjustment” to “Inflation Adjustment” in the Statement of Income and Other Comprehensive Income.
| 12.31.2023 | ||||||
|---|---|---|---|---|---|---|
| Shopping Malls | Offices | Sales and developments | Hotels | Others | Total | |
| Revenues | 122,405 | 7,648 | 9,858 | 41,094 | 2,578 | 183,583 |
| Costs | (6,335) | (618) | (5,355) | (18,314) | (1,751) | (32,373) |
| Gross profit | 116,070 | 7,030 | 4,503 | 22,780 | 827 | 151,210 |
| Net gain / (loss)<br>from fair value adjustment of investment properties | 331,033 | 1,015 | (28,240) | - | 806 | 304,614 |
| General<br>and administrative expenses | (14,100) | (1,350) | (5,601) | (5,954) | 11,670 | (15,335) |
| Selling<br>expenses | (5,370) | (244) | (3,713) | (2,800) | (422) | (12,549) |
| Other<br>operating results, net | (1,196) | (126) | (4,525) | (307) | 2,143 | (4,011) |
| Profit / (Loss) from operations | 426,437 | 6,325 | (37,576) | 13,719 | 15,024 | 423,929 |
| Share of profit of<br>associates and joint ventures | - | - | - | - | 41,310 | 41,310 |
| Segment profit / (loss) | 426,437 | 6,325 | (37,576) | 13,719 | 56,334 | 465,239 |
| Investment<br>and trading properties | 1,163,618 | 483,597 | 1,147,982 | - | 5,034 | 2,800,231 |
| Property,<br>plant and equipment | 2,659 | 479 | 23,107 | 35,060 | 3,907 | 65,212 |
| Investment<br>in associates and joint ventures | - | - | - | - | 169,747 | 169,747 |
| Other<br>reportable assets | 1,786 | 1,542 | 65,296 | 758 | 2,590 | 71,972 |
| Reportable assets | 1,168,063 | 485,618 | 1,236,385 | 35,818 | 181,278 | 3,107,162 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
15
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
7.
Investments in associates and joint ventures
Changes in the Group’s investments in associates and joint ventures for the six-month period ended December 31, 2024 and for the year ended June 30, 2024 were as follows:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Beginning of the period / year | 166,663 | 178,574 |
| Share<br>capital increase and contributions (Note 27) | 31 | - |
| Sale<br>of interest in associates and joint ventures (Note 27) | (2,831) | (31,731) |
| Share<br>of profit | 23,654 | 39,921 |
| Other<br>comprehensive (loss) / income | (372) | 795 |
| Dividends<br>(Note 27) | (2,390) | (20,896) |
| Increase<br>of participation in associates (ii) | 1,985 | - |
| End of the period / year (i) | 186,740 | 166,663 |
(i) As of December 31, 2024 and June 30, 2024 includes ARS (34) and ARS (18) respectively, reflecting interests in companies with negative equity, which were disclosed in “Provisions” (Note 19).
(ii) Corresponds to the participation in Challenger Gold Ltd.
Below is additional information about the principal Group’s main investments in associates and joint ventures:
| % ownership interest | Value of Group's interest in equity | Group's interest in comprehensive income | ||||
|---|---|---|---|---|---|---|
| Name of the entity | 12.31.2024 | 06.30.2024 | 12.31.2024 | 06.30.2024 | 12.31.2024 | 12.31.2023 |
| New<br>Lipstick | 49.96% | 49.96% | 1,234 | 1,308 | (75) | 712 |
| BHSA | 29.21% | 29.89% | 137,603 | 125,724 | 14,710 | 27,930 |
| BACS<br>(1) | 55.91% | 56.35% | 9,417 | 9,204 | 213 | 1,035 |
| Nuevo<br>Puerto Santa Fe S.A. | 50.00% | 50.00% | 5,816 | 5,391 | 762 | 1,797 |
| GCDI | 27.39% | 27.39% | 4,575 | 1,558 | 3,017 | (2,537) |
| La<br>Rural S.A. | 50.00% | 50.00% | 16,835 | 12,862 | 6,027 | 13,251 |
| Agrouranga<br>S.A. | 34.86% | 34.86% | 6,276 | 6,443 | (170) | 1,191 |
| Other<br>associates and joint ventures | N/A | N/A | 4,984 | 4,173 | (1,202) | 4,148 |
| Total associates and joint ventures | 186,740 | 166,663 | 23,282 | 47,527 | ||
| Last financial statement issued | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Name of the entity | Location of business / Country of incorporation | Main activity | Common shares 1 vote | Share capital (nominal value) | (Loss)/ profit for the period | Shareholders' equity |
| New<br>Lipstick | U.S. | Real<br>estate | 23,631,037 | (*) 47 | (*) (1) | (*) (49) |
| BHSA | Argentina | Financing | 442,469,223 | (**) 1,500 | (**) 50,211 | (**) 460,550 |
| BACS<br>(1) | Argentina | Financing | 33,125,751 | (**) 88 | (**) 564 | (**) 24,964 |
| Nuevo<br>Puerto Santa Fe S.A. | Argentina | Real<br>estate | 138,750 | 28 | 1,524 | 11,130 |
| GCDI | Argentina | Real<br>estate | 250,729,447 | 915 | 11,318 | 16,702 |
| La<br>Rural S.A. | Argentina | Organization of<br>events | 714,998 | 1 | 12,196 | 33,393 |
| Agrouranga<br>S.A. | Argentina | Agriculture | 2,532,206 | 7 | (486) | 3,024 |
(*) Amounts expressed in dollars under USGAAP.
(**) Information as of December 31, 2024 according to IFRS, pending issuance as of the date of these Financial Statements.
(1) Includes participation through BHSA, which owns a 62.28% stake in BACS.
Arcos
There have been no changes to what was informed in Note 7 to the Annual Financial Statements as of June 30, 2024.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
16
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
8.
Investment properties
Changes in the Group’s investment properties for the six-month period ended December 31, 2024 and for the year ended June 30, 2024 were as follows:
| 12.31.2024 | 06.30.2024 | |||
|---|---|---|---|---|
| Level 2 | Level 3 | Level 2 | Level 3 | |
| Fair value at the beginning of the period / year | 1,316,985 | 803,207 | 1,842,544 | 796,144 |
| Additions | 14,197 | 35,680 | 5,399 | 10,774 |
| Disposals | (7,701) | (15) | (47,991) | - |
| Transfers | (3,459) | (1,336) | (49,480) | (8) |
| Net<br>(loss) / gain from fair value adjustment | (356,419) | 128,561 | (418,612) | (3,749) |
| Additions<br>of capitalized leasing costs | 55 | 41 | 19 | 259 |
| Amortization<br>of capitalized leasing costs (i) | (59) | (111) | (163) | (213) |
| Currency<br>translation adjustment | (10,862) | - | (14,731) | - |
| Fair value at the end of the period / year | 952,737 | 966,027 | 1,316,985 | 803,207 |
(i) Amortization charges of capitalized leasing costs were included in “Costs” in the Statement of Income and Other Comprehensive Income (Note 24).
The following is the balance by type of investment property of the Group as of December 31, 2024 and June 30, 2024:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Leased<br>out farmland | 65,160 | 78,156 |
| Offices<br>and other rental properties | 265,163 | 386,174 |
| Shopping<br>malls (i) | 982,785 | 830,951 |
| Undeveloped<br>parcels of land | 603,220 | 822,424 |
| Properties<br>under development | 2,436 | 2,487 |
| Total | 1,918,764 | 2,120,192 |
(i)
Includes parking spaces.
The following amounts have been recognized in the Statement of Income and Other Comprehensive Income:
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Revenues | 178,168 | 177,484 |
| Direct<br>operating expenses | (56,835) | (52,537) |
| Development<br>expenses | (6,282) | (891) |
| Net<br>unrealized (loss) / gain from fair value adjustment of investment<br>property (i) | (230,596) | 273,392 |
| Net<br>realized gain from fair value adjustment of investment property<br>(ii) | 2,738 | 30,818 |
(i) It includes the result from changes in the fair value of those investment properties that are in the portfolio and have not yet been sold. It has been generated in accordance with what is described in the section called "valuation techniques" in Note 9 to the Annual Consolidated Financial Statements as of June 30, 2024, mainly affected by the macroeconomic effects of inflation and changes in the reference exchange rates mentioned therein.
(ii) As of December 31, 2024 corresponds (ARS 4,644) to the realized result from fair value adjustment for the period ((ARS 4,639) for the sale of floors in the “261 Della Paolera” building and (ARS 5) for the sale of parking spaces in Libertador 498) and ARS 7,382 for realized result from fair value adjustment made in previous years (ARS 7,316 for the sale of floors in the “261 Della Paolera” building and ARS 66 for the sale of parking spaces in Libertador 498). As of December 31, 2023 corresponds (ARS 20,165) to the realized result from fair value adjustment for the period ((ARS 22,131) for the Ezpeleta land plot barter agreement, ARS 8,959 for the sale of floors in the “261 Della Paolera” building, (ARS 6,982) for the sale of Maple Building and (ARS 11) for the sale of parking spaces in Libertador 498) and ARS 50,983 for realized result from fair value adjustment made in previous years (ARS 24,093 for the Ezpeleta land plot barter agreement, ARS 17,983 for the sale of floors in the “261 Della Paolera” building, ARS 8,661 for the sale of Maple Building and ARS 246 for the sale of parking spaces in Libertador 498).
Valuation techniques are described in Note 9 to the Annual Financial Statements. There were no changes to such techniques.
Ramblas del Plata (former Costa Urbana) - Costanera Sur, Buenos Aires City
On December 21, 2021, it was published the law from Buenos Aires City congress approving the Regulations for the development of the property of approximately 70 hectares, owned by the Company since 1997, previously known as "Solares de Santa María", located in front of the Río de la Plata in the South Coast of the Autonomous City of Buenos Aires, southeast of Puerto Madero. The published law grants a New Standard, designated: "U73 - Public Park and Costa
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
17
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Urbana Urbanization", which enables the combination of diverse uses such as homes, offices, retail, services, public spaces, education, and entertainment.
The Company will have a construction capacity of 866,806 sqm, which will drive growth for the coming years through the development of mixed-use projects.
IRSA agreed to give in 50.8 hectares for public use, which represents approximately 71% of the total area of the property to the development of public green spaces, pedestrian streets, roadways and will contribute with six additional lots of the property, two for the Sustainable Urban Development Fund (FODUS, by its acronym in Spanish) and one for the Innovation Trust, Science and Technology of the Government of the Autonomous City of Buenos Aires, and the sum of USD 2 million in cash and the amount of 3,000,000 sovereign bonds (AL35) which have already been paid.
Likewise, IRSA will be in charge of the infrastructure and road works on the property and will carry out the public space works contributing up to USD 40 million together with the maintenance of the public spaces assigned for 10 years or until the sum of USD 10 million is completed.
On March 2023, Mensura was approved with a proposal for subdivision, fractioning, transfer of streets and public space. On November 15, 2023 the 3 plots were deeded in favor of the Government of the Autonomous City of Buenos Aires as well as the Public Park lot, and the 61 IRSA´s lots were created, receiving the parcel ballots corresponding to those 61 private plots on May 22, 2024.
As of December 31, 2024, the Project Management has been contracted, and the bidding process is underway, with offers received, for the Earthworks, Sheet Piling, Infrastructure and Roadway Works of Stage I (which includes the first phase of the public park comprising the central bay sector). As of the date of issuance of these Unaudited Condensed Interim Consolidated Financial Statements, the Certificate of Environmental Aptitude of Stage I has already been obtained after the Environmental Public Hearing enabling the development of the Stage I works.
“Ramblas del Plata” will change the landscape of Buenos Aires City, giving life to an undeveloped area and will be in an exceptional property due to its size, location and connectivity, providing the City the possibility of expanding and recovering access to the Río de la Plata coast with areas for walks, recreation, green spaces, public parks and mixed uses.
9.
Property, plant and equipment
Changes in the Group’s property, plant and equipment for the six-month period ended December 31, 2024 and for the year ended June 30, 2024 were as follows:
| Owner<br>occupied farmland | Bearer<br>plant (iii) | Buildings<br>and facilities | Machinery<br>and equipment | Others<br>(i) | 12.31.2024 | 06.30.2024 | |
|---|---|---|---|---|---|---|---|
| Costs | 555,365 | 56,761 | 136,970 | 52,002 | 29,961 | 831,059 | 840,462 |
| Accumulated<br>depreciation | (58,440) | (32,692) | (56,287) | (46,655) | (18,624) | (212,698) | (185,408) |
| Net<br>book amount at the beginning of the period / year | 496,925 | 24,069 | 80,683 | 5,347 | 11,337 | 618,361 | 655,054 |
| Additions | 9,330 | 1,960 | 5,271 | 618 | 3,197 | 20,376 | 58,927 |
| Incorporation by<br>business combination | 650 | - | - | - | 3,593 | 4,243 | - |
| Disposals | (473) | - | (276) | - | (823) | (1,572) | (27,136) |
| Currency<br>translation adjustment | (48,738) | (3,470) | (2,190) | (3) | (1,247) | (55,648) | (61,184) |
| Transfers | 1,883 | - | (1) | 1,411 | (196) | 3,097 | 23,386 |
| Transfers to assets<br>held for sale | (350) | - | - | - | - | (350) | (3,396) |
| Depreciation<br>charges (ii) | (4,326) | (4,169) | (2,958) | (1,137) | (3,174) | (15,764) | (27,290) |
| Balances<br>at the end of the period / year | 454,901 | 18,390 | 80,529 | 6,236 | 12,687 | 572,743 | 618,361 |
| Costs | 517,667 | 55,251 | 139,774 | 54,028 | 34,485 | 801,205 | 831,059 |
| Accumulated<br>depreciation | (62,766) | (36,861) | (59,245) | (47,792) | (21,798) | (228,462) | (212,698) |
| Net<br>book amount at the end of the period / year | 454,901 | 18,390 | 80,529 | 6,236 | 12,687 | 572,743 | 618,361 |
(i)
Includes furniture and fixtures and vehicles.
(ii)
As of December 31, 2024, the depreciation charge has been charged to the line "Costs" for ARS 2,796, "General and administrative expenses" for ARS 1,047 and "Selling expenses" for ARS 242, in the Statement of Income and Other Comprehensive Income (Note 24), ARS 11,679 were capitalized as part of the cost of biological assets.
(iii)
Corresponds to the plantation of sugarcane with a useful life of more than one year.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
18
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
10.
Trading properties
Changes in the Group’s trading properties for the six-month period ended December 31, 2024 and for the year ended June 30, 2024 were as follows:
| Completed<br>properties | Properties<br>under development | Undeveloped<br>sites | 12.31.2024 | 06.30.2024 | |
|---|---|---|---|---|---|
| Beginning of the period / year | 2,586 | 10,840 | 10,733 | 24,159 | 27,808 |
| Additions | - | 374 | 418 | 792 | 1,102 |
| Currency<br>translation adjustment | - | (1,572) | - | (1,572) | (1,285) |
| Disposals | (447) | (465) | (2) | (914) | (3,466) |
| End of the period / year | 2,139 | 9,177 | 11,149 | 22,465 | 24,159 |
| Non-current | 22,110 | 23,660 | |||
| Current | 355 | 499 | |||
| Total | 22,465 | 24,159 |
11.
Intangible assets
Changes in the Group’s intangible assets for the six-month period ended December 31, 2024 and for the year ended June 30, 2024 were as follows:
| Goodwill | Information<br>systems and software | Future<br>units to be received from barters and others | 12.31.2024 | 06.30.2024 | |
|---|---|---|---|---|---|
| Costs | 5,831 | 21,180 | 89,197 | 116,208 | 71,396 |
| Accumulated<br>amortization | - | (18,038) | (10,369) | (28,407) | (26,540) |
| Net<br>book amount at the beginning of the period / year | 5,831 | 3,142 | 78,828 | 87,801 | 44,856 |
| Additions | 3 | 2,066 | 691 | 2,760 | 12,173 |
| Disposals | (12) | (56) | (5,594) | (5,662) | (287) |
| Impairment<br>(ii) | - | - | (11,849) | (11,849) | - |
| Transfers | - | 2,118 | - | 2,118 | 33,205 |
| Currency<br>translation adjustment | (92) | (164) | - | (256) | (279) |
| Amortization<br>charges (i) | - | (1,183) | (149) | (1,332) | (1,867) |
| Balances<br>at the end of the period / year | 5,730 | 5,923 | 61,927 | 73,580 | 87,801 |
| Costs | 5,730 | 25,144 | 72,445 | 103,319 | 116,208 |
| Accumulated<br>amortization | - | (19,221) | (10,518) | (29,739) | (28,407) |
| Net<br>book amount at the end of the period / year | 5,730 | 5,923 | 61,927 | 73,580 | 87,801 |
(i)
As of December 31, 2024, amortization charge was recognized in the amount of ARS 1,064 under "Costs" and in the amount of ARS 268 under "General and administrative expenses" in the Statement of Income and Other Comprehensive Income (Note 24).
(ii)
IRSA annually obtains, as part of its June closing process, a valuation report prepared by a third party, which determines the market value of its properties in USD. This report also includes the values assigned to the future units to be received from barters. IRSA verified at the end of the current period that the USD values of these future units to be received have not undergone significant changes compared to the last annual valuation.
As of the end of the current period, the value of these assets recorded at their inflation-adjusted cost is ARS 46,322, while the reference value in USD of these assets, converted into Argentine Pesos at the period-end exchange rate—considering this as the fair value less selling costs—amounts to ARS 34,473, resulting in an impairment of ARS 11,849. This situation is due to a temporary effect arising from the fact that, during the current period, the exchange rate variation was lower than the accumulated inflation for the same period.
The impairment charge has been recorded under "Other operating results, net" in the statement of income and other comprehensive income (Note 25).
12.
Right of use assets and lease liabilities
The Group’s right-of-use assets as of December 31, 2024 and June 30, 2024 are the following:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Farmland | 89,274 | 78,872 |
| Convention<br>center | 4,099 | 10,430 |
| Offices, shopping<br>malls and other buildings | 5,000 | 5,453 |
| Machinery<br>and equipment | 3,238 | 2,134 |
| Right-of-use<br>assets | 101,611 | 96,889 |
| Non-current | 101,611 | 96,889 |
| Total | 101,611 | 96,889 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
19
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The depreciation charge of the right of use assets is detailed below:
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Farmland | 8,842 | 8,411 |
| Convention<br>center | 403 | 341 |
| Offices, shopping<br>malls and other buildings | 746 | 806 |
| Machinery and<br>equipment | 595 | 394 |
| Depreciation<br>charge of right-of-use assets (i) | 10,586 | 9,952 |
(I) As of December 31, 2024, the amortization charge has been allocated ARS 649 within "Costs", ARS 242 in "General and administrative expenses" and ARS 258 in “Selling expenses” in the Statement of Income and Other Comprehensive Income (Note 24), ARS 9,437 were capitalized as part of the cost of biological assets.
The Group’s lease liabilities as of December 31, 2024 and June 30, 2024 are the following:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Farmland | 91,376 | 82,304 |
| Convention<br>center | 2,153 | 10,867 |
| Offices, shopping<br>malls and other buildings | 2,943 | 3,466 |
| Lease<br>liabilities | 96,472 | 96,637 |
| Non-current | 75,723 | 74,184 |
| Current | 20,749 | 22,453 |
| Total | 96,472 | 96,637 |
13.
Biological assets
Changes in the Group’s biological assets and their allocation to the fair value hierarchy for the six-month period ended December 31, 2024 and for the year ended June 30, 2024 were as follows:
| Agricultural business | ||||||||
|---|---|---|---|---|---|---|---|---|
| Sown land-crops | Sugarcane fields | Breeding cattle and cattle for sale (i) | Other cattle (i) | Others | 12.31.2024 | 06.30.2024 | ||
| Level<br>1 | Level<br>3 | Level<br>3 | Level<br>2 | Level<br>2 | Level<br>1 | |||
| Net book amount at the beginning of the period / year | 18,808 | 16,707 | 23,394 | 44,819 | 347 | 475 | 104,550 | 126,007 |
| Purchases | - | - | - | 7,773 | 25 | - | 7,798 | 8,998 |
| Transfers | (1,162) | 1,162 | - | - | - | - | - | - |
| Initial<br>recognition and changes in the fair value of biological<br>assets | - | (5,588) | 5,870 | 3,459 | 453 | - | 4,194 | 7,072 |
| Decrease<br>due to harvest | - | (38,871) | (46,862) | - | - | - | (85,733) | (265,758) |
| Sales | - | - | - | (14,489) | - | - | (14,489) | (24,716) |
| Consumes | - | - | - | (46) | (1) | (52) | (99) | (222) |
| Costs<br>for the period / year | 23,020 | 71,657 | 40,660 | 13,334 | - | 142 | 148,813 | 301,275 |
| Currency<br>translation adjustment | (11,186) | (2,326) | (3,136) | (1,504) | - | - | (18,152) | (48,106) |
| Balances at the end of the period / year | 29,480 | 42,741 | 19,926 | 53,346 | 824 | 565 | 146,882 | 104,550 |
| Non-current<br>(Production) | - | - | - | 35,985 | 714 | 559 | 37,258 | 33,948 |
| Current<br>(Consumable) | 29,480 | 42,741 | 19,926 | 17,361 | 110 | 6 | 109,624 | 70,602 |
| Net<br>book amount at the end of the period / year | 29,480 | 42,741 | 19,926 | 53,346 | 824 | 565 | 146,882 | 104,550 |
(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 3,912 and ARS (7,951), for the six-month period ended December 31, 2024 and for the fiscal year ended June 30, 2024, respectively; amounts of ARS 5,444 and ARS (4,855), was attributable to price changes, and amounts of ARS (1,532) and ARS (3,096), was attributable to physical changes, respectively.
During the six-month period ended December 31, 2024, there were no transfers between the fair value hierarchies. There were no reclassifications among their respective categories.
The fair value less estimated point of sale costs of agricultural produce at the point of harvest (which have been harvested during the period/year) amount to ARS (77,245) and ARS (193,546) for the six-month period ended December 31, 2024 and the year ended June 30, 2024, respectively.
See information on valuation processes used by the entity in Note 14 to the Annual Financial Statements.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
20
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
As of December 31, 2024, and June 30, 2024, the better and maximum use of biological assets shall not significantly differ from the current use.
Capitalized cost of production as of December 31, 2024 and 2023 are as follows:
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Supplies<br>and labors | 112,599 | 121,374 |
| Salaries,<br>social security costs and other personnel expenses | 6,315 | 7,581 |
| Depreciation<br>and amortization | 21,116 | 18,721 |
| Fees<br>and payments for services | 453 | 372 |
| Maintenance,<br>security, cleaning, repairs and others | 892 | 1,079 |
| Taxes,<br>rates and contributions | 194 | 136 |
| Leases<br>and service charges | 77 | 85 |
| Freights | 1,501 | 718 |
| Travelling,<br>library expenses and stationery | 868 | 871 |
| Other<br>expenses | 4,656 | 7,040 |
| 148,671 | 157,977 |
14.
Inventories
Breakdown of Group’s inventories as of December 31, 2024 and June 30, 2024 are as follows:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Crops | 33,701 | 63,316 |
| Materials and<br>supplies | 70,442 | 75,489 |
| Sugarcane | 1,246 | 1,225 |
| Agricultural<br>inventories | 105,389 | 140,030 |
| Supplies for<br>hotels | 601 | 824 |
| Total<br>inventories | 105,990 | 140,854 |
15.
Financial instruments by category
Determining fair values
The present note shows the financial assets and financial liabilities by category of financial instrument and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy. For further information related to fair value hierarchy refer to Note 16 to the Annual Financial Statements.
Financial assets and financial liabilities as of December 31, 2024 are as follows:
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
21
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
| Financial<br>assets at fair value through profit or loss | |||||||
|---|---|---|---|---|---|---|---|
| Financial<br>assets at amortized cost | Level<br>1 | Level<br>2 | Level<br>3 | Subtotal<br>financial assets | Non-financial<br>assets | Total | |
| December<br>31, 2024 | |||||||
| Assets<br>as per Statement of Financial Position | |||||||
| Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables) (Note 16) | 323,849 | 45,874 | - | - | 369,723 | 115,345 | 485,068 |
| Investment in<br>financial assets: | |||||||
| - Public<br>companies’ securities | 91 | 21,433 | - | - | 21,524 | - | 21,524 |
| -<br>Bonds | - | 96,268 | - | - | 96,268 | - | 96,268 |
| - Mutual<br>funds | - | 93,399 | - | - | 93,399 | - | 93,399 |
| -<br>Others | 4,030 | 4,972 | - | - | 9,002 | - | 9,002 |
| Derivative<br>financial instruments: | |||||||
| - Commodities<br>options contracts | - | 4,691 | - | - | 4,691 | - | 4,691 |
| - Commodities<br>futures contracts | - | 1,798 | - | - | 1,798 | - | 1,798 |
| -<br>Foreign-currency options contracts | - | 68 | - | - | 68 | - | 68 |
| -<br>Foreign-currency future contracts | - | 376 | - | - | 376 | - | 376 |
| -<br>Swaps | - | - | 1,542 | - | 1,542 | - | 1,542 |
| -<br>Warrants | - | - | - | 1 | 1 | - | 1 |
| -<br>Others | - | 1,477 | - | - | 1,477 | - | 1,477 |
| Restricted assets<br>(i) | 4,158 | - | - | - | 4,158 | - | 4,158 |
| Cash and cash<br>equivalents (excluding bank overdrafts): | |||||||
| - Cash on<br>hand and at bank | 28,320 | - | - | - | 28,320 | - | 28,320 |
| - Short-term<br>investments | 28,016 | 41,592 | - | - | 69,608 | - | 69,608 |
| Total<br>assets | 388,464 | 311,948 | 1,542 | 1 | 701,955 | 115,345 | 817,300 |
| Financial<br>liabilities at fair value through profit or loss | Non-financial<br>liabilities | Total | |||||
| --- | --- | --- | --- | --- | --- | ||
| Financial<br>liabilities at amortized cost | Level<br>1 | Subtotal<br>financial liabilities | |||||
| December<br>31, 2024 | |||||||
| Liabilities<br>as per Statement of Financial Position | |||||||
| Trade and other<br>payables (Note 18) | 254,239 | - | 254,239 | 117,305 | 371,544 | ||
| Borrowings (Note<br>20) | 1,016,200 | - | 1,016,200 | - | 1,016,200 | ||
| Derivative<br>financial instruments: | |||||||
| - Commodities<br>options contracts | - | 546 | 546 | - | 546 | ||
| - Commodities<br>futures contracts | - | 726 | 726 | - | 726 | ||
| -<br>Foreign-currency options contracts | - | 14,105 | 14,105 | - | 14,105 | ||
| -<br>Foreign-currency future contracts | - | 5,836 | 5,836 | - | 5,836 | ||
| -<br>Swaps | - | 4,884 | 4,884 | - | 4,884 | ||
| -<br>Others | - | 53 | 53 | - | 53 | ||
| Total<br>liabilities | 1,270,439 | 26,150 | 1,296,589 | 117,305 | 1,413,894 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
22
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Financial assets and financial liabilities as of June 30, 2024 were as follows:
| Financial<br>assets at fair value through profit or loss | |||||||
|---|---|---|---|---|---|---|---|
| Financial<br>assets at amortized cost | Level<br>1 | Level<br>2 | Level<br>3 | Subtotal<br>financial assets | Non-financial<br>assets | Total | |
| June<br>30, 2024 | |||||||
| Assets<br>as per Statement of Financial Position | |||||||
| Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables) (Note 16) | 331,203 | 52,249 | - | - | 383,452 | 110,316 | 493,768 |
| Investment in<br>financial assets: | |||||||
| - Public<br>companies’ securities | 107 | 21,272 | - | - | 21,379 | - | 21,379 |
| -<br>Bonds | - | 65,503 | - | - | 65,503 | - | 65,503 |
| - Mutual<br>funds | - | 78,973 | 336 | - | 79,309 | - | 79,309 |
| -<br>Others | 6,683 | 16,557 | - | 30 | 23,270 | - | 23,270 |
| Derivative<br>financial instruments: | |||||||
| - Commodities<br>options contracts | - | 4,282 | - | - | 4,282 | - | 4,282 |
| - Commodities<br>futures contracts | - | 1,840 | - | - | 1,840 | - | 1,840 |
| -<br>Foreign-currency options contracts | - | 250 | - | - | 250 | - | 250 |
| -<br>Foreign-currency future contracts | - | 232 | - | - | 232 | - | 232 |
| -<br>Swaps | - | - | 1,262 | - | 1,262 | - | 1,262 |
| -<br>Options on companies | 68 | - | - | - | 68 | - | 68 |
| -<br>Others | - | 1,696 | - | - | 1,696 | - | 1,696 |
| Restricted assets<br>(i) | 3,294 | - | - | - | 3,294 | - | 3,294 |
| Cash and cash<br>equivalents (excluding bank overdrafts): | |||||||
| - Cash on<br>hand and at bank | 61,576 | - | - | - | 61,576 | - | 61,576 |
| - Short-term<br>investments | - | 77,285 | - | - | 77,285 | - | 77,285 |
| Total<br>assets | 402,931 | 320,139 | 1,598 | 30 | 724,698 | 110,316 | 835,014 |
| Financial<br>liabilities at fair value through profit or loss | Non-financial<br>liabilities | Total | |||||
| --- | --- | --- | --- | --- | --- | ||
| Financial<br>liabilities at amortized cost | Level<br>1 | Subtotal<br>financial liabilities | |||||
| June<br>30, 2024 | |||||||
| Liabilities<br>as per Statement of Financial Position | |||||||
| Trade and other<br>payables (Note 18) | 232,442 | - | 232,442 | 129,841 | 362,283 | ||
| Borrowings (Note<br>20) | 996,360 | - | 996,360 | - | 996,360 | ||
| Derivative<br>financial instruments: | |||||||
| - Commodities<br>options contracts | - | 812 | 812 | - | 812 | ||
| - Commodities<br>futures contracts | - | 1,641 | 1,641 | - | 1,641 | ||
| -<br>Foreign-currency options contracts | - | 9,512 | 9,512 | - | 9,512 | ||
| -<br>Foreign-currency future contracts | - | 4,501 | 4,501 | - | 4,501 | ||
| -<br>Swaps | - | 2,000 | 2,000 | - | 2,000 | ||
| Total<br>liabilities | 1,228,802 | 18,466 | 1,247,268 | 129,841 | 1,377,109 |
(i)
Corresponds to deposits in guarantee and escrows.
The valuation models used by the Group for the measurement of Level 2 instruments are no different from those used as of June 30, 2024.
As of December 31, 2024, there have been no changes to the economic or business circumstances affecting the fair value of the financial assets and liabilities of the Group.
The Group uses a range of valuation models for the measurement of Level 2 and 3 instruments, details of which may be obtained from the following table. When no quoted prices are available in an active market, fair values (particularly with derivatives) are based on recognized valuation methods.
| Description | Pricing model / method | Parameters | Fair value hierarchy | Range |
|---|---|---|---|---|
| Derivative<br>financial instruments – Swaps | Theoretical<br>price | Underlying<br>asset price and volatility | Level<br>2 | - |
| Purchase<br>option – Warrant (Others) | Black<br>& Scholes with dilution | Underlying<br>asset price and volatility | Level<br>3 | - |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
23
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
16.
Trade and other receivables
Group’s trade and other receivables as of December 31, 2024 and June 30, 2024 are as follows:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Trade, leases and<br>services receivable (*) | 315,281 | 311,550 |
| Less: allowance for<br>doubtful accounts | (5,109) | (5,184) |
| Total<br>trade receivables | 310,172 | 306,366 |
| Prepayments | 77,233 | 71,746 |
| Borrowings,<br>deposits and others | 35,439 | 51,137 |
| Guarantee<br>deposits | 80 | 86 |
| Tax<br>receivables | 37,660 | 31,116 |
| Others | 19,375 | 28,133 |
| Total<br>other receivables | 169,787 | 182,218 |
| Total<br>trade and other receivables | 479,959 | 488,584 |
| Non-current | 158,452 | 171,624 |
| Current | 321,507 | 316,960 |
| Total | 479,959 | 488,584 |
(*) Includes field sales credits, which are revalued based on the soybean price at each balance sheet date. The related impact in the Statement of Income and Other Comprehensive income is presented within “Financial results, net.
The carrying amounts of the Group’s trade and other receivables denominated in foreign currencies are detailed in Note 30.
The fair value of current trade and other receivables approximate their respective carrying amounts due to their short-term nature, as the impact of discounting is not considered significant.
Movements on the Group’s allowance for doubtful accounts were as follows:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Beginning<br>of the period / year | 5,184 | 6,806 |
| Additions<br>(i) | 857 | 1,547 |
| Recovery<br>(i) | (191) | (275) |
| Currency<br>translation adjustment | 211 | 3,590 |
| Used during the the<br>period / year | (149) | (19) |
| Inflation<br>adjustment | (803) | (6,465) |
| End<br>of the period / year | 5,109 | 5,184 |
(i) The additions and recovery of the allowance for doubtful accounts have been included in “Selling expenses” in the Statement of Income and Other Comprehensive Income (Note 24).
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
24
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
17.
Cash flow information
Following is a detailed description of cash flows generated by the Group’s operations for the six-month periods ended December 31, 2024 and 2023:
| Note | 12.31.2024 | 12.31.2023 | |
|---|---|---|---|
| (Loss) / profit for the period | (64,391) | 266,118 | |
| Adjustments for: | |||
| Income<br>tax | 21 | (22,648) | 82,064 |
| Amortization<br>and depreciation | 24 | 6,736 | 6,242 |
| Loss<br>/ (gain) from disposal of trading properties | 1,020 | (4,837) | |
| (Gain)<br>/ loss from disposal of property, plant and equipment | (3) | 2,361 | |
| Net<br>loss / (gain) from fair value adjustment of investment<br>properties | 227,858 | (304,210) | |
| Gain<br>from lease modification | (1,680) | - | |
| Impairment<br>of intangible assets | 25 | 11,849 | - |
| (Gain)<br>/ loss from disposal of subsidiary and associates | 25 | (2,061) | 1,883 |
| Financial<br>results, net | (96,829) | 147,559 | |
| Provisions<br>and allowances | 11,981 | (2,255) | |
| Share<br>of profit of associates and joint ventures | 7 | (23,654) | (43,276) |
| Management<br>fees | - | 12,277 | |
| Changes<br>in net realizable value of agricultural products after<br>harvest | 1,806 | (15,077) | |
| Unrealized<br>initial recognition and changes in fair value of biological assets<br>and agricultural products at the point of harvest | (21,309) | (10,758) | |
| Gain<br>from disposal of farmlands | (23,726) | (9,196) | |
| Changes in operating assets and liabilities: | |||
| Decrease<br>/ (increase) in inventories | 17,152 | (7,232) | |
| Decrease<br>/ (increase) in trading properties | 4,290 | (255) | |
| Increase<br>in biological assets | (9,294) | (22) | |
| Increase<br>in trade and other receivables | (8,483) | (1,958) | |
| (Decrease)<br>/ increase in trade and other payables | (15,423) | 8,347 | |
| Decrease<br>in salaries and social security liabilities | (3,647) | (15,618) | |
| Decrease<br>in provisions | (288) | (457) | |
| Decrease<br>in lease liabilities | (2,635) | (4,227) | |
| Net<br>variation in derivative financial instruments | (108) | 5,207 | |
| Decrease<br>in right of use assets | - | 4 | |
| Net cash (used in) / generated from operating activities before<br>income tax paid | (13,487) | 112,684 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
25
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The following table presents a detail of significant non-cash transactions occurred in the six-month periods ended December 31, 2024 and 2023:
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Increase<br>in investment properties through an increase in trade and other<br>payables | 12,397 | - |
| Decrease<br>in investment properties through an increase in property, plant and<br>equipment | 3,173 | 15,063 |
| Currency<br>translation adjustment and other comprehensive results from<br>associates and joint ventures | 30,920 | 106,250 |
| Other<br>changes in shareholders' equity | 7,974 | 4,492 |
| Increase<br>of non-convertible notes through a decrease in non-convertible<br>notes | 12,183 | - |
| Decrease<br>in lease liabilities through a decrease in trade and other<br>receivables | - | 61 |
| Decrease<br>in property, plant and equipment through an increase in investment<br>properties | 2,420 | 10,366 |
| Increase<br>in shareholders' equity through an increase in investment<br>properties | 371 | 3,517 |
| Increase<br>in deferred income tax liabilities through a decrease in<br>shareholders' equity | 130 | 769 |
| Decrease<br>in lease liabilities through an increase in trade and other<br>payables | 400 | - |
| Increase<br>in investment properties through a decrease in investment in<br>financial assets | 18,160 | - |
| Decrease<br>in investment in financial assets through a decrease in trade and<br>other payables | 10,380 | - |
| Decrease<br>in investment in financial assets through an increase in trade and<br>other receivables | 2,365 | - |
| Increase<br>in property, plant and equipment through an increase in trade and<br>other payables | 2,927 | 11,849 |
| Decrease<br>in property, plant and equipment through an increase in trade and<br>other receivables | 1,203 | 3,262 |
| Increase<br>in investment in financial assets through an increase in<br>borrowings | 462 | 601 |
| Decrease<br>in shareholders' equity through a decrease in investment in<br>financial assets | 51,216 | - |
| Increase<br>in right of use assets through an increase in lease<br>liabilities | 8,957 | 20,200 |
| Increase<br>in investment in associates and joint ventures through a decrease<br>in financial assets | 1,985 | - |
| Increase<br>in intangible assets through a decrease in investment<br>properties | 2,118 | 33,205 |
| Increase<br>in intangible assets through an increase in trade and other<br>payables | 691 | 9,562 |
| Decrease<br>in investment in associates and joint ventures through an increase<br>in trade and other receivables | - | 1,629 |
| Decrease<br>in investment properties through an increase in trade and other<br>receivables | 1,157 | 3,412 |
| Increase<br>in investments in financial assets through a decrease in investment<br>in associates and joint ventures | 2,390 | - |
| Increase<br>in group of assets held for sale through a decrease in property,<br>plant and equipment | 331 | 5,353 |
| Barter<br>transaction investment properties | 14 | 854 |
| Decrease<br>in shareholders' equity through an increase in trade and other<br>payables | 2,122 | 41,780 |
| Increase<br>in investments in financial assets through a decrease in derivative<br>financial instruments | 34 | - |
| Decrease<br>in borrowings through an increase in trade and other<br>payables | 2,654 | - |
| Decrease<br>in shareholders' equity through a decrease in trade and other<br>receivables | 4,277 | 5,043 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
26
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
18.
Trade and other payables
Group’s trade and other payables as of December 31, 2024 and June 30, 2024 were as follows:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Trade<br>payables | 209,824 | 171,851 |
| Advances from<br>sales, leases and services (*) | 54,724 | 74,713 |
| Accrued<br>invoices | 21,508 | 15,651 |
| Deferred<br>income | 532 | 572 |
| Admission fees<br>(*) | 34,635 | 35,623 |
| Deposits in<br>guarantee | 538 | 696 |
| Total<br>trade payables | 321,761 | 299,106 |
| Dividends payable<br>to non-controlling interests | 278 | 7,960 |
| Tax<br>payables | 27,414 | 18,931 |
| Director´s<br>Fees | 4,557 | 6,762 |
| Management<br>fees | - | 9,529 |
| Others | 17,534 | 19,995 |
| Total<br>other payables | 49,783 | 63,177 |
| Total<br>trade and other payables | 371,544 | 362,283 |
| Non-current | 62,962 | 61,275 |
| Current | 308,582 | 301,008 |
| Total | 371,544 | 362,283 |
(*) Corresponds mainly to admission rights and rents collected in advance, which will accrue in an average term of 3 to 5 years.
The carrying amounts of the Group’s trade and other payables denominated in foreign currencies are detailed in Note 30.
19.
Provisions
The table below shows the movements in the Group's provisions categorized by type:
| Legal<br>claims (iii) | Investments<br>in associates and joint ventures (ii) | 12.31.2024 | 06.30.2024 | |
|---|---|---|---|---|
| Beginning<br>of the period / year | 31,688 | 18 | 31,706 | 32,994 |
| Additions<br>(i) | 2,662 | - | 2,662 | 10,216 |
| Decreases<br>(i) | (426) | (31) | (457) | (506) |
| Participation in<br>the results | - | 47 | 47 | 13 |
| Inflation<br>adjustment | (2,195) | - | (2,195) | (10,194) |
| Currency<br>translation adjustment | (58) | - | (58) | (71) |
| Used during the<br>period / year | (288) | - | (288) | (746) |
| End<br>of the period / year | 31,383 | 34 | 31,417 | 31,706 |
| Non-current | 26,382 | 26,142 | ||
| Current | 5,035 | 5,564 | ||
| Total | 31,417 | 31,706 |
(i)
Additions and recovery are included in "Other operating results, net" in the Statement of Income and Other Comprehensive Income.
(ii)
Corresponds to investments in Puerto Retiro as of December 31, 2024 and as of June 30, 2024. The increase and recovery is included in "Share of profit of associates and joint ventures "
(iii)
Includes the provision for the IDBD lawsuit.
There were no significant changes to the processes mentioned in Note 21 to the Annual Financial Statements.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
27
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
IDBD
The Group lost control of IDBD on September 25, 2020.
On September 21, 2020, IDBD filed a lawsuit against Dolphin Netherlands B.V. (“Dolphin BV”) and IRSA before the Tel-Aviv Jaffa District Court (civil case no. 29694-09-20). The amount claimed by IDBD is NIS 140 million, alleging that Dolphin BV and IRSA breached an alleged legally binding commitment to transfer to IDBD 2 installments of NIS 70 million. On December 24, 2020, and following approval by the insolvency court, the IDBD trustee filed a motion to dismiss the claim, maintaining the right as IDBD trustee, to file a new inter alia claim in the same matter, after conduct an investigation into the reasons for IDBD's insolvency. On December 24, 2020, the court entered a judgment to dismiss the claim as requested. On October 31, 2021, the Insolvency Commissioner notified that he did not oppose the motion, and on that same date, the court affirmed the motion initiated by the trustee of IDBD.
On December 26, 2021 IDBD filed the lawsuit against Dolphin BV and IRSA for the sum of NIS 140 million, plus interest and costs.
On January 30, 2023, a copy of the lawsuit was sent to us and we evaluated the legal defense alternatives for the company's interests. Throughout the year 2023 and up to the present date, the legal process has continued as usual, and the Company has responded to all requests made to it.
On January 17, 2024, the Court dismissed the request for asset injunction and seizure on IRSA requested by IDBD. A hearing date has been set in the file dealing with the appeal of jurisdiction and the notification of the lawsuit. A hearing date has also been set in the main claim file, which is currently in the evidentiary stage.
On April 9, 2024, the Court rejected the appeal filed by IRSA regarding the applicable jurisdiction and the form of notification of the claim, ordering that IRSA and Dolphin pay IDBD the sum of NIS 25,000 as expenses. The Court's decision was appealed to the Supreme Court on June 16, 2024 and on June 18, 2024, the Supreme Court refused to address the issue raised.
September 15, 2024 has been set as the deadline for IDBD, IRSA and Dolphin to report to the Court the status of the documentation exchange process. In this process, the parties show each other the requested documentation as part of the evidentiary stage. In a preliminary hearing the parties discussed document requests and agreed to attempt to reach a consensus on the facts of the case. In that hearing, the parties were given until October 2024 to present witnesses. A list of witnesses has been provided and the parties are in discussions to agree on certain facts of the case, which will be documented and submitted to the Court as part of the evidentiary stage.
The company is discussing the origin of the claim in terms of its passive legitimacy and, subsidiarily, refuting the substantive arguments raised by IDBD. Notwithstanding this, based on the analysis of the Company's lawyers based on the actions carried out to date, an accounting provision related to this claim has been recorded under the applicable accounting standards. As of the issuance date of these condensed interim financial statements, the legal process is still ongoing.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
28
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
20.
Borrowings
The breakdown and fair value of the Group’s borrowings as of December 31, 2024 and June 30, 2024 was as follows:
| Book<br>value | Fair<br>value | |||
|---|---|---|---|---|
| 12.31.2024 | 06.30.2024 | 12.31.2024 | 06.30.2024 | |
| Non-convertible<br>notes | 895,806 | 892,026 | 892,431 | 864,682 |
| Bank<br>loans | 84,451 | 51,791 | 84,451 | 51,791 |
| Bank<br>overdrafts | 27,704 | 40,158 | 27,704 | 40,158 |
| Others | 8,239 | 12,385 | 8,239 | 12,385 |
| Total<br>borrowings | 1,016,200 | 996,360 | 1,012,825 | 969,016 |
| Non-current | 628,242 | 576,097 | ||
| Current | 387,958 | 420,263 | ||
| Total | 1,016,200 | 996,360 |
Series XLVI Notes - CRESUD
On July 18, 2024, Cresud issued Notes on the local market for a total amount of USD 28.6 million. Below are the main characteristics of the issuance:
●
Series XLVI Notes: Denominated in dollars and payable in Argentina pesos at the applicable exchange rate for ARS 28.6 million at a fix rate of 1.5%. The principal will be paid at the expiration. The price of issuance was 100.0% of the nominal value.
The funds will be used as defined in the issuance documents.
Series XLVII Notes - CRESUD
On November 15, 2024, the Company issued Notes on the local market for a total amount of USD 64.4 million. Below are the main characteristics of the issuance:
●
Series XLVII Notes: Denominated in dollars for a total amount of USD 64.4 million at a fixed rate of 7.0%, with semiannual interest payments. The principal will be repaid in one instalment on the maturity date, November 15, 2028. The issuance price was 100% of the nominal value.
The funds will primarily be used for debt refinancing and working capital in Argentina.
Local Notes Issuance – Series XXII & XXIII Notes - IRSA
On October 23, 2024, IRSA informed the results of the auction for two series of notes on the local market for a total amount of USD 67.3 million through the following instruments:
●
Series XXII: Denominated in dollars for USD 15.8 million, with 5.75% interest rate and semiannual interests’ payments (except for the first payment on July 23, 2025, and the last payment at maturity). The Capital amortization will be 100% at maturity, on October 23, 2027. The issuance price will be 100.0%.
●
Series XXIII: Denominated in dollars for USD 51.5 million, with 7.25% interest rate and semiannual interests’ payments (except for the first payment on July 23, 2025, and the last payment at maturity). The Capital amortization will be 100% at maturity, on October 23, 2029. The issuance price will be 100.0%.
The funds will be used as defined in the issuance documents.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
29
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
21.
Taxation
The details of the Group’s income tax, is as follows:
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Current<br>income tax | (62,320) | (25,859) |
| Deferred<br>income tax | 84,968 | (56,205) |
| Income tax | 22,648 | (82,064) |
Below is a reconciliation between income tax recognized and the amount which would result from applying the prevailing tax rate on profit before income tax for the six-month periods ended December 31, 2024 and 2023:
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Tax<br>calculated at the tax rates applicable to loss / (profit) in the<br>respective countries | 39,258 | (102,815) |
| Permanent<br>differences: | ||
| Share<br>of profit of joint ventures and associates | 8,183 | 16,528 |
| Tax<br>rate differential | 160 | (57) |
| Provision<br>for unrecoverability of tax loss carry-forwards | 14,795 | (5,268) |
| Difference<br>between affidavit and provision | (4,262) | 6,801 |
| Non-taxable<br>profit, non-deductible expenses and others | (3,128) | (48,163) |
| Tax<br>inflation adjustment | (28,799) | (33,324) |
| Fiscal<br>transparency | (11,810) | (8,499) |
| Inflation<br>adjustment permanent difference | 5,718 | 78,976 |
| Others | 2,533 | 13,757 |
| Income tax | 22,648 | (82,064) |
The gross movement in the deferred income tax account is as follows:
| 12.31.2024 | 06.30.2024 | |
|---|---|---|
| Beginning of the period / year | (761,213) | (864,233) |
| Currency<br>translation adjustment | 6,680 | 8,133 |
| Incorporation<br>by business combination | 5,627 | - |
| Revaluation<br>surplus | (2,076) | (2,467) |
| Charged<br>to the Statement of Income | 84,968 | 97,354 |
| End of the the period / year | (666,014) | (761,213) |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
30
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
22.
Revenues
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Crops | 91,208 | 94,803 |
| Sugarcane | 45,159 | 42,880 |
| Cattle | 17,787 | 13,889 |
| Supplies | 66,882 | 35,499 |
| Consignment | 4,221 | 20,383 |
| Advertising<br>and brokerage fees | 9,644 | 11,582 |
| Agricultural<br>rental and other services | 2,390 | 5,969 |
| Income from sales and services from agricultural<br>business | 237,291 | 225,005 |
| Trading<br>properties and developments | 5,556 | 8,266 |
| Rental<br>and services | 175,779 | 171,514 |
| Hotel<br>operations, tourism services and others | 30,537 | 41,074 |
| Income from sales and services from urban properties and investment<br>business | 211,872 | 220,854 |
| Total revenues | 449,163 | 445,859 |
23.
Costs
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Other<br>operative costs | 133 | 150 |
| Cost of property operations | 133 | 150 |
| Crops | 70,991 | 86,152 |
| Sugarcane | 36,811 | 35,648 |
| Cattle | 14,489 | 10,916 |
| Supplies | 60,178 | 30,359 |
| Consignment | 21,946 | 4,758 |
| Advertising<br>and brokerage fees | 9,943 | 9,349 |
| Agricultural<br>rental and other services | 2,437 | 4,288 |
| Cost of sales and services from agricultural business | 216,795 | 181,470 |
| Trading<br>properties and developments | 7,760 | 4,858 |
| Rental<br>and services | 54,398 | 48,249 |
| Hotel<br>operations, tourism services and others | 19,162 | 18,307 |
| Cost of sales and services from sales and services from urban<br>properties and investment business | 81,320 | 71,414 |
| Total costs | 298,248 | 253,034 |
24.
Expenses by nature
The Group discloses expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following table provides additional disclosures regarding expenses by nature and their relationship to the function within the Group.
| Costs | General<br>and administrative expenses | Selling<br>expenses | 12.31.2024 | 12.31.2023 | |
|---|---|---|---|---|---|
| Change<br>in agricultural products and biological assets | 98,947 | - | - | 98,947 | 108,040 |
| Salaries,<br>social security costs and other personnel expenses | 36,835 | 22,829 | 3,482 | 63,146 | 59,878 |
| Fees<br>and payments for services | 28,755 | 5,643 | 1,235 | 35,633 | 40,917 |
| Cost<br>of sale of goods and services | 87,579 | - | - | 87,579 | 37,636 |
| Maintenance,<br>security, cleaning, repairs and others | 22,867 | 3,529 | 46 | 26,442 | 22,382 |
| Taxes,<br>rates and contributions | 4,933 | 1,989 | 10,809 | 17,731 | 22,618 |
| Advertising<br>and other selling expenses | 9,566 | 36 | 2,162 | 11,764 | 12,282 |
| Freights | 16 | 3 | 11,935 | 11,954 | 7,812 |
| Director's<br>fees (i) | - | 9,079 | - | 9,079 | (6,966) |
| Depreciation<br>and amortization | 4,675 | 1,551 | 510 | 6,736 | 6,242 |
| Leases<br>and service charges | 1,790 | 591 | 41 | 2,422 | 1,887 |
| Travelling,<br>library expenses and stationery | 1,088 | 802 | 658 | 2,548 | 2,233 |
| Supplies<br>and labors | 3 | 1 | 2,099 | 2,103 | 827 |
| Other<br>expenses | 593 | 232 | 997 | 1,822 | 4,114 |
| Bank<br>expenses | 38 | 969 | - | 1,007 | 1,487 |
| Conditioning<br>and clearance | - | - | 1,829 | 1,829 | 1,645 |
| Interaction<br>and roaming expenses | 563 | 25 | 9 | 597 | 614 |
| Allowance<br>for doubtful accounts, net | - | - | 666 | 666 | 165 |
| Total expenses by nature as of 12.31.2024 | 298,248 | 47,279 | 36,478 | 382,005 | - |
| Total expenses by nature as of 12.31.2023 | 253,034 | 35,287 | 35,492 | - | 323,813 |
(i) On October 5, 2023, fees to the Board of Directors were approved at the General Ordinary and Extraordinary Shareholders' Meeting of IRSA for ARS 9,050 (nominal values). The Board of Directors of IRSA had proposed Director´s fees for ARS 13,500 (nominal values) and accordingly made provision for such amount in the Annual Consolidated Financial Statements as of June 30, 2023, issued on September 5, 2023, and submitted to the CNV. During the six-month period ended December 31, 2023, with the final approval of said fee, IRSA proceeded to recover the excess in the provision, with a balancing entry in the line that gave rise to it.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
31
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
25.
Other operating results, net
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Gain<br>from commodity derivative financial instruments | 3,386 | 2,907 |
| Gain<br>/ (loss) from sale of property, plant and equipment | 3 | (2,361) |
| Impairment<br>of intangible assets | (11,849) | - |
| Gain<br>/ (loss) from sale of joint ventures | 2,061 | (1,883) |
| Donations | (470) | (419) |
| Lawsuits<br>and other contingencies | (2,236) | (4,546) |
| Interest<br>and allowances generated by operating assets | 10,593 | 15,765 |
| Administration<br>fees | 552 | 267 |
| Others | (3,238) | 2,268 |
| Total other operating results, net | (1,198) | 11,998 |
26.
Financial results, net
| 12.31.2024 | 12.31.2023 | |
|---|---|---|
| Financial income | ||
| Interest<br>income | 3,339 | 18,864 |
| Other<br>finance income | 11 | - |
| Total financial income | 3,350 | 18,864 |
| Financial costs | ||
| Interest<br>expense | (32,420) | (33,039) |
| Other<br>financial costs | (4,689) | (7,637) |
| Total finance costs | (37,109) | (40,676) |
| Other financial results: | ||
| Foreign<br>exchange, net | 36,726 | (455,008) |
| Fair<br>value gain from financial assets and liabilities at fair value<br>through profit or loss | 68,842 | 206,729 |
| Loss<br>from repurchase of non-convertible notes | (134) | (227) |
| Loss<br>from derivative financial instruments (except<br>commodities) | (12,401) | (33,064) |
| Others | 57 | 10,176 |
| Total other financial results | 93,090 | (271,394) |
| Inflation<br>adjustment | (34,418) | 148,683 |
| Total financial results, net | 24,913 | (144,523) |
27.
Related party transactions
The following is a summary of the balances with related parties as of December 31, 2024 and June 30, 2024:
| Item | 12.31.2024 | 06.30.2024 |
|---|---|---|
| Trade<br>and other receivables | 29,688 | 42,544 |
| Investments<br>in financial assets | 4,282 | 4,582 |
| Trade<br>and other payables | (15,288) | (27,861) |
| Borrowings | (999) | (633) |
| Total | 17,683 | 18,632 |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
32
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
| Related<br>party | 12.31.2024 | 06.30.2024 | Description<br>of transaction | Item |
|---|---|---|---|---|
| New<br>Lipstick | 250 | 267 | Reimbursement<br>of expenses receivable | Trade<br>and other receivables |
| Comparaencasa<br>Ltd. | 2,245 | 2,402 | Other<br>investments | Investments<br>in financial assets |
| 298 | 302 | Loans<br>granted | Trade<br>and other receivables | |
| Banco<br>Hipotecario S.A. | 44 | 46 | Leases<br>and/or right of use assets receivable | Trade<br>and other receivables |
| - | 5,731 | Dividends | Trade<br>and other receivables | |
| La<br>Rural S.A. | 2,077 | 1,666 | Canon | Trade<br>and other receivables |
| (1) | (2) | Other<br>payables | Trade<br>and other payables | |
| 4 | 19 | Other<br>receivables | Trade<br>and other receivables | |
| (1) | - | Leases<br>and/or right of use assets payable | Trade<br>and other payables | |
| Other<br>associates and joint ventures (i) | 1 | 1 | Equity<br>incentive plan receivable | Trade<br>and other receivables |
| 13 | 12 | Loans<br>granted | Trade<br>and other receivables | |
| (999) | (633) | Borrowings | Borrowings | |
| 4 | 35 | Management<br>fees receivable | Trade<br>and other receivables | |
| (29) | (25) | Other<br>payables | Trade<br>and other payables | |
| 11 | 13 | Other<br>receivables | Trade<br>and other receivables | |
| Total associates and joint ventures | 3,917 | 9,834 | ||
| CAMSA<br>and its subsidiaries | - | (9,529) | Management<br>fee payables | Trade<br>and other payables |
| - | (4) | Reimbursement<br>of expenses | Trade<br>and other payables | |
| Yad<br>Levim LTD | 20,597 | 21,407 | Loans<br>granted | Trade<br>and other receivables |
| Galerias<br>Pacifico | - | 3,936 | Loans<br>granted | Trade<br>and other receivables |
| 1 | 4 | Other<br>receivables | Trade<br>and other receivables | |
| Sutton | 5,190 | 4,923 | Loans<br>granted | Trade<br>and other receivables |
| (91) | (93) | Other<br>payables | Trade<br>and other payables | |
| Rundel<br>Global LTD | 2,037 | 2,180 | Other<br>investments | Investments<br>in financial assets |
| Sociedad<br>Rural Argentina | (10,414) | (11,161) | Other<br>payables | Trade<br>and other payables |
| Other<br>related parties | 1,158 | 1,236 | Other<br>receivables | Trade<br>and other receivables |
| (96) | (199) | Other<br>payables | Trade<br>and other payables | |
| 40 | 70 | Reimbursement<br>of expenses receivable | Trade<br>and other receivables | |
| (100) | (69) | Legal<br>services | Trade<br>and other payables | |
| Total other related parties | 18,322 | 12,701 | ||
| IFISA | - | 2,876 | Financial<br>operations receivables | Trade<br>and other receivables |
| Total direct parent company | - | 2,876 | ||
| Directors<br>and Senior Management | (4,556) | (6,779) | Fees<br>for services received | Trade<br>and other payables |
| Total Directors and Senior Management | (4,556) | (6,779) | ||
| Total | 17,683 | 18,632 |
(i) Includes Avenida Compras S.A., Avenida Inc., BHN Vida S.A., Puerto Retiro S.A., Cyrsa S.A. (in liquidation), Nuevo Puerto Santa Fe S.A and Agrouranga S.A.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
33
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The following is a summary of the results with related parties for the six-month periods ended December 31, 2024 and 2023:
| Related party | 12.31.2024 | 12.31.2023 | Description of transaction |
|---|---|---|---|
| BHN<br>Vida S.A. | - | (252) | Financial<br>operations |
| BHN<br>Seguros Generales S.A. | - | (86) | Financial<br>operations |
| Comparaencasa<br>Ltd. | (143) | 2,236 | Financial<br>operations |
| Other<br>associates and joint ventures (i) | (5) | 44 | Leases<br>and/or right of use assets |
| 267 | 170 | Corporate<br>services | |
| 37 | (179) | Financial<br>operations | |
| Total associates and joint ventures | 156 | 1,933 | |
| CAMSA<br>and its subsidiaries | - | (12,277) | Management<br>fee |
| Rundel<br>Global LTD | - | 3,665 | Financial<br>operations |
| Yad<br>Levim LTD | 611 | 527 | Financial<br>operations |
| Sociedad<br>Rural Argentina | 1,097 | (379) | Financial<br>operations |
| Other<br>related parties | (110) | (44) | Leases<br>and/or rights of use |
| (552) | (664) | Fees<br>and remunerations | |
| 50 | 35 | Corporate<br>services | |
| (253) | (279) | Legal<br>services | |
| (505) | 3,025 | Financial<br>operations | |
| (376) | (246) | Donations | |
| 461 | 1,435 | Income<br>from sales and services from agricultural business | |
| Total other related parties | 423 | (5,202) | |
| IFISA | 15 | - | Financial<br>operations |
| Total Parent Company | 15 | - | |
| Directors<br>(ii) | (9,079) | 6,966 | Management<br>fee |
| Senior<br>Management | (610) | (370) | Compensation<br>of Directors and senior management |
| Total Directors and Senior Management | (9,689) | 6,596 | |
| Total | (9,095) | 3,327 |
(i)
Includes Avenida Compras S.A., Avenida Inc., BHN Vida S.A., Puerto Retiro S.A., Cyrsa S.A. (in liquidation), BHN Sociedad de Inversión S.A., La Rural S.A., Nuevo Puerto Santa Fe S.A., Quality Invest S.A. and Agrouranga S.A.
(ii)
See Note 24 to these financial statements.
The following is a summary of the transactions with related parties for the six-month periods ended December 31, 2024 and 2023:
| Related party | 12.31.2024 | 12.31.2023 | Description of transaction |
|---|---|---|---|
| Puerto<br>Retiro | (31) | - | Irrevocable<br>contributions |
| Total irrevocable contributions | (31) | - | |
| Nuevo<br>Puerto Santa Fe S.A. | 336 | 534 | Dividends<br>received |
| La<br>Rural S.A. | 2,054 | - | Dividends<br>received |
| Total dividends received | 2,390 | 534 | |
| Quality | - | (31,445) | Sale of<br>shares |
| BHSA | (2,831) | - | Sale of<br>shares |
| GCDI | - | (48) | Sale of<br>shares |
| Total<br>sale of shares | (2,831) | (31,493) |
28.
CNV General Resolution N° 622
As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622, below there is a detail of the notes to this Financial Statements that disclose the information required by the Resolution in Exhibits.
| Exhibit A - Property, plant and equipment | Note 8 - Investment properties |
|---|---|
| Note 9 - Property, plant and equipment | |
| Exhibit B - Intangible assets | Note 11 - Intangible assets |
| Exhibit C - Equity investments | Note 7 - Investments in associates and joint ventures |
| Exhibit D - Other investments | Note 15 - Financial instruments by category |
| Exhibit E – Provisions and allowances | Note 16 – Trade and other receivables and Note 19 -<br>Provisions |
| Exhibit F - Cost of sales and services provided | Note 29 - Cost of sales and services provided |
| Exhibit G - Foreign currency assets and liabilities | Note 30 - Foreign currency assets and liabilities |
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
34
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
29.
Cost of goods sold and services provided
| Description | Cost of sales and services from agricultural business<br>(i) | Cost of sales and services from sales and services from urban<br>properties and investment business (ii) | 12.31.2024 | 12.31.2023 |
|---|---|---|---|---|
| Inventories at the beginning of the period | 69,978 | 24,983 | 94,961 | 96,796 |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | 10,647 | - | 10,647 | 862 |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | (1,806) | - | (1,806) | 15,078 |
| Additions | 204 | - | 204 | 279 |
| Currency<br>translation adjustment | 8,750 | (1,572) | 7,178 | 16,769 |
| Harvest | 149,477 | - | 149,477 | 176,434 |
| Acquisitions<br>and classifications | 125,498 | 81,889 | 207,387 | 191,693 |
| Consume | (30,134) | - | (30,134) | (20,805) |
| Disposals<br>due to sales | - | (914) | (914) | (3,430) |
| Expenses<br>incurred | 44,341 | - | 44,341 | 31,868 |
| Inventories at the end of the period | (160,160) | (23,066) | (183,226) | (252,660) |
| Cost as of 12.31.2024 | 216,795 | 81,320 | 298,115 | - |
| Cost as of 12.31.2023 | 181,470 | 71,414 | - | 252,884 |
(i)
Includes biological assets (see Note 13).
(ii)
Includes trading properties (see Note 10).
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
35
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
30.
Foreign currency assets and liabilities
Book amounts of foreign currency assets and liabilities are as follows:
| Item / Currency (1) | Amount (2) | Prevailing exchange rate (3) | 12.31.2024 | 06.30.2024 |
|---|---|---|---|---|
| Assets | ||||
| Trade and other receivables | ||||
| US<br>Dollar | 130.060 | 1,029.00 | 133,832 | 100,790 |
| Brazilian<br>Reais | 4.539 | 170.75 | 775 | 3,271 |
| Euros | 0.010 | 1,068.62 | 11 | 12 |
| Uruguayan<br>pesos | 7.913 | 23.63 | 187 | 25 |
| Trade and other receivables related parties | ||||
| US<br>Dollar | 21.578 | 1,032.00 | 22,269 | 23,176 |
| Total Trade and other receivables | 157,074 | 127,274 | ||
| Investment in financial assets | ||||
| US<br>Dollar | 98.646 | 1,029.00 | 101,507 | 126,186 |
| New<br>Israel Shekel | 5.306 | 283.27 | 1,503 | 1,130 |
| Pounds | 0.731 | 1,290.37 | 943 | 978 |
| Investment in financial assets related parties | ||||
| US<br>Dollar | 2.175 | 1,032.00 | 2,245 | 2,402 |
| Total Investment in financial assets | 106,198 | 130,696 | ||
| Derivative financial instruments | ||||
| US<br>Dollar | 1.157 | 1,029.00 | 1,191 | 1,752 |
| Total Derivative financial instruments | 1,191 | 1,752 | ||
| Cash and cash equivalents | ||||
| US<br>Dollar | 49.007 | 1,029.00 | 50,428 | 64,152 |
| Chilenean<br>pesos | 4,030.769 | 1.04 | 4,192 | 2,736 |
| Euros | 0.010 | 1,068.62 | 11 | 6 |
| Guaraníes | 53.846 | 0.13 | 7 | 7 |
| Brazilian<br>Reais | 0.141 | 170.75 | 24 | 84 |
| New<br>Israel Shekel | 0.004 | 283.27 | 1 | 1 |
| Pounds | 0.002 | 1,290.37 | 3 | 4 |
| Uruguayan<br>pesos | 0.085 | 23.63 | 2 | 19 |
| Total Cash and cash equivalents | 54,668 | 67,009 | ||
| Total Assets | 319,131 | 326,731 | ||
| Liabilities | ||||
| Trade and other payables | ||||
| US<br>Dollar | 68.404 | 1,032.00 | 70,593 | 75,471 |
| Uruguayan<br>pesos | 125.172 | 23.63 | 2,958 | 1,983 |
| Brazilian<br>Reais | 19.026 | 180.75 | 3,439 | 13,693 |
| Trade and other payables related parties | ||||
| US<br>Dollar | 10.052 | 1,032.00 | 10,374 | 11,062 |
| Bolivian<br>pesos | 0.341 | 149.37 | 51 | 55 |
| Total Trade and other payables | 87,415 | 102,264 | ||
| Lease liabilities | ||||
| US<br>Dollar | 6.636 | 1,032.00 | 6,848 | 16,223 |
| Total Lease liabilities | 6,848 | 16,223 | ||
| Provisions | ||||
| New<br>Israel Shekel | 86.177 | 283.27 | 24,411 | 24,607 |
| Total Provisions | 24,411 | 24,607 | ||
| Borrowings | ||||
| US<br>Dollar | 775.368 | 1,032.00 | 800,180 | 719,001 |
| Borrowings with related parties | ||||
| US<br>Dollar | 1.143 | 1,032.00 | 1,180 | 819 |
| Total Borrowings | 801,360 | 719,820 | ||
| Derivative financial instruments | ||||
| US<br>Dollar | 0.006 | 1,032.00 | 6 | 219 |
| Total Derivative financial instruments | 6 | 219 | ||
| Total Liabilities | 920,040 | 863,133 |
(1)
The Company uses derivative instruments as a complement in order to reduce its exposure to exchange rate movements (Note 15).
(2)
Considering foreign currencies those that differ from each Group’s subsidiaries functional currency at each period/year-end.
(3)
Exchange rates as of December 31, 2024 according to Banco Nación Argentina and the Central Bank of the Argentine Republic
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
36
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
31.
Other relevant events of the period
Warrants exercise - CRESUD
During the six-month period ended December 31, 2024, certain warrant holders exercised their right to purchase additional shares. For this reason, USD 2,8 million were received, for converted warrants of 4,935,452 and a total of 6,785,115 common shares of the Company with a nominal value of ARS 1 were issued.
General Ordinary and Extraordinary Shareholders’ Meeting - CRESUD
On October 28, 2024, the General Ordinary and Extraordinary Shareholders’ Meeting was held, where it was resolved to distribute a dividend to shareholders in proportion to their shareholdings, payable in cash for the sum of ARS 45,000 million. These were paid fully as of the date of these consolidated financial statements. The amounts are expressed in currency defined as approved by the Ordinary and Extraordinary Shareholders' Meeting.
Likewise, it was approved the request for the issuance and public offer of complementary common shares to those authorized by the CNV on February 8, 2021, within the agreement of the share capital increase by subscription of shares approved by the Shareholders´ Meeting held on October 30, 2019 and the Board of Directors on January 20, 2021 for a total of 90,000,000 common shares of par value ARS 1 and with the right to one vote per share and 90,000,000 options with the right to receive common shares.
Change in Warrants terms and conditions - CRESUD
As a result of the cash dividend payment made by the Company on October 28, 2024, certain terms and conditions of the outstanding options (warrants) to subscribe for the Company’s ordinary shares had been modified:
●
Number of shares to be issued per warrant: Pre-dividend ratio: 1.3146. Post-dividend ratio: 1.4075.
●
Exercise price per new share to be issued: Pre-dividend price: USD 0.4303. Post-dividend price: USD 0.4019.
The other terms and conditions of the warrants remain the same.
Shares Buyback Program – New program - CRESUD
On October 28, 2024, the Board of Directors of CRESUD approved a new program for the buyback program of shares issued by the Company and established the terms and conditions for the acquisition of treasury shares issued by the Company, under the terms of Article 64. of Law No. 26,831 and the CNV regulations, for up to a maximum amount of ARS 6,500 million and up to 10% of the share capital, up to a daily limit of up to 25% of the average volume of daily transactions that the shares have experienced of the Company, jointly in the markets it is listed, during the previous 90 business days, and up to a maximum price of USD 12 per GDS and ARS 1,500 per share. Likewise, the repurchase period was set at up to 180 days, beginning the day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange.
On December 19, 2024, we completed the share buyback program, having acquired 4,522,623 common shares, representing approximately 99.98% of the approved program and 0.75% of the capital stock.
Dividend Payment – BrasilAgro
On October 22, 2024, General Ordinary and Extraordinary Shareholders’ Meeting, BrasilAgro approved the payment of dividends for a total amount of BRL 155 million. The full amount was paid as of the date of these consolidated financial statements.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
37
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Shares Buyback Program – New program - IRSA
On July 11, 2024, the Board of Directors of IRSA approved a new program for the buyback program of shares issued by the Company and established the terms and conditions for the acquisition of treasury shares issued by the Company, under the terms of Article 64. of Law No. 26,831 and the CNV regulations, for up to a maximum amount of ARS 15,000 million and up to 10% of the share capital, up to a daily limit of up to 25% of the average volume of daily transactions that the shares have experienced of the Company, jointly in the markets it is listed, during the previous 90 business days, and up to a maximum price of USD 11 per GDS and ARS 1,550 per share. Likewise, the repurchase period was set at up to 180 days, beginning the day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange.
On September 12, 2024, IRSA completed the share buyback program, having acquired 11,541,885 common shares, representing approximately 99.93% of the approved program and 1.56% of the capital stock of IRSA.
General Ordinary and Extraordinary Shareholders’ Meeting - IRSA
On October 28, 2024, the General Ordinary and Extraordinary Shareholders’ Meeting was held, where it was resolved to distribute a dividend to shareholders in proportion to their shareholdings, payable in cash for the sum of ARS 90,000 million. These were paid fully as of the date of these consolidated financial statements. The amounts are expressed in currency defined as approved by the Ordinary and Extraordinary Shareholders' Meeting.
Likewise, it was approved to distribute the amount of 25,700,000 treasury shares in the portfolio of nominal value ARS 10, derived from the share repurchase programs, to the shareholders in proportion to their shareholdings, and the request for the issuance and public offer of complementary common shares to those authorized by the CNV on February 8, 2021, within the agreement of the share capital increase by subscription of shares approved by the Shareholders´ Meeting held on October 30, 2019 and the Board of Directors on January 20, 2021 for a total of 80,000,000 common shares of par value ARS 1 (currently par value ARS 10) and with the right to one vote per share and 80,000,000 options with the right to receive common shares.
Change in Warrants terms and conditions - IRSA
On November 8, 2024, the Company announced that the terms and conditions of the outstanding options (warrants) to subscribe for the Company’s ordinary shares had been modified because of the cash dividend payment and the allocation of treasury shares to its shareholders carried out by the Company on November 5, 2024. Below are the terms that have been modified:
●
Number of shares to be issued per warrant: Pre-dividend ratio: 1.3070 (nominal value ARS 10). Post-dividend ratio: 1.4818 (nominal value ARS 10).
●
Exercise price per new share to be issued: Pre-dividend price: USD 0.3307 (nominal value ARS 10). Post-dividend price: USD 0.2917 (nominal value ARS 10).
The other terms and conditions of the warrants remain the same.
Warrants exercise - IRSA
During the six-month period ended December 31, 2024, certain warrant holders exercised their right to purchase additional shares. For this reason, USD 2.2 million was received, for converted warrants of 5,105,682 and a total of 6,838,745 common shares of the Company with a nominal value of ARS 10 were issued.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
38
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
32.
Subsequent events
Dividend Payment – FYO
On January 8, 2025, at the General Ordinary and Extraordinary Shareholders’ Meeting, FYO approved the payment of dividends for a total amount of USD 3.2 million.
Sale of lots – "Ramblas del Plata"
On January 27, 2025, IRSA signed two sales agreements with a local developer for the first stage of the "Ramblas del Plata" project, located in Puerto Madero Sur.
The first stage consists of 14 lots covering 126,000 square meters, representing 18% of the project's total sellable area. The transaction involves two lots with a combined total area of 10,525 square meters and an estimated total sellable area of 40,000 square meters.
The total price of both transactions was approximately USD 23.4 million, with 30% paid upon signing the agreement. The remaining balance of approximately USD 16.4 million will be paid upon signing the deeds and transferring possession.
Véase nuestro informe de fecha 11/11/22
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
39
Report on review of interim financial information
To the Shareholders, President and Directors of
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Legal address: Carlos Della Paolera 261, 9° floor
Autonomous City of Buenos Aires
Tax Registration Number: 30-50930070-0
Introduction
We have reviewed the accompanying condensed consolidated interim statement of financial position of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria [and its subsidiaries (the ‘Group’)] as at December 31, 2024 and the related condensed consolidated interim statement of financial performance and statements of comprehensive income for the six-month and three-month periods then ended, and condensed consolidated statements of changes in equity and cash flows for the six-month period then ended and selected explanatory notes.
Responsibilities of the Board of Directors
The board of Directors is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IFRS Accounting Standards and is therefore responsible for the preparation and presentation of the condensed interim financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 (IAS 34).
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34.
40
Report on compliance with current regulations
In accordance with current regulations, we report, in connection with Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, that:
a)
the condensed consolidated interim financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria have not been transcribed into the Inventory and Balance Sheet book and, except for the above mentioned situation, as regards those matters that are within our competence, they are in compliance with the provisions of the General Companies Law and pertinent resolutions of the National Securities Commission;
b)
the condensed separate interim financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal aspects in accordance with legal requirements except for i) the lack of transcription to the Inventories and Balance Sheet Book, and ii) the lack of transcription to the General Journal Book of the accounting entries corresponding to the month of December 2024;
c)
we have read the Business Summary (“Reseña Informativa”), on which we have no observations to make regarding matters that are within our competence;
d)
as of December 31, 2024 the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria accrued in favor of the Argentine Integrated Social Security System, as shown by the Company’s accounting records, amounted to ARS 596,820,390, which was not due at that date.
Autonomous City of Buenos Aires, February 10, 2025.
| PRICE WATERHOUSE & CO. S.R.L.<br><br><br>(Partner) |
|---|
| C.P.C.E.C.A.B.A. V° 1 F° 17 |
| Carlos Brondo<br><br><br>Public Accountant (UNCUYO)<br><br><br>C.P.C.E.C.A.B.A. V. 391 F. 078 |
41
Brief comment on the Company’s activities during the period, including references to significant events that occurred after the end of the period.
Consolidated Results
| (In ARS million) | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 449,163 | 445,859 | 0.7% |
| Costs | (298,248) | (253,034) | 17.9% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 4,372 | (821) | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | (1,806) | 15,077 | (112.0)% |
| Gross profit | 153,481 | 207,081 | (25.9)% |
| Net<br>gain from fair value adjustment on investment<br>properties | (227,858) | 304,210 | (174.9)% |
| Gain<br>from disposal of farmlands | 23,726 | 9,196 | 158.0% |
| General<br>and administrative expenses | (47,279) | (35,287) | 34.0% |
| Selling<br>expenses | (36,478) | (35,492) | 2.8% |
| Other<br>operating results, net | (1,198) | 11,998 | (110.0)% |
| Management<br>Fee | - | (12,277) | (100.0)% |
| Result from operations | (135,606) | 449,429 | (130.2)% |
| Depreciation<br>and Amortization | 27,852 | 24,963 | 11.6% |
| Rights<br>of use installments | (9,705) | (10,551) | (8.0)% |
| EBITDA (unaudited) | (117,459) | 463,841 | (125.3)% |
| Adjusted EBITDA (unaudited) | 134,961 | 159,389 | (15.3)% |
| Loss<br>from joint ventures and associates | 23,654 | 43,276 | (45.3)% |
| Result from operations before financing and taxation | (111,952) | 492,705 | (122.7)% |
| Financial<br>results, net | 24,913 | (144,523) | - |
| Result before income tax | (87,039) | 348,182 | (125.0)% |
| Income<br>tax expense | 22,648 | (82,064) | - |
| Result for the period | (64,391) | 266,118 | (124.2)% |
| Attributable to | |||
| Equity<br>holder of the parent | (61,541) | 106,267 | (157.9)% |
| Non-controlling<br>interest | (2,850) | 159,851 | (101.8)% |
Consolidated Revenues increased during the first half of fiscal year 2025 by 0.7% and 8.6% while Adjusted EBITDA decreased by 15.3% compared to the same period of fiscal year 2024. Agribusiness segments adjusted EBITDA was ARS 35,262 and urban properties and investments business (through IRSA) adjusted EBITDA was ARS 103,136 million.
The net result for the first half of fiscal year 2025 registered a loss of ARS 64,391 million, 124.2% lower than the registered in the same period of 2024. This result is mainly explained by the loss from changes in fair value of investment properties in the urban properties and investment business (IRSA).
42
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Description of Operations by Segment
| 6M 2025 | Agribusiness | Urban Properties and Investments | Total | 6M 25 vs. 6M 24 |
|---|---|---|---|---|
| Revenues | 238,715 | 170,141 | 408,856 | (0.1)% |
| Costs | (216,929) | (38,218) | (255,147) | 19.2% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 2,786 | - | 2,786 | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | (1,806) | - | (1,806) | (112.0)% |
| Gross profit | 22,766 | 131,923 | 154,689 | (25.9)% |
| Net<br>gain from fair value adjustment on investment<br>properties | (646) | (226,998) | (227,644) | (174.2)% |
| Gain<br>from disposal of farmlands | 23,726 | - | 23,726 | 158.0% |
| General<br>and administrative expenses | (19,033) | (28,498) | (47,531) | 33.2% |
| Selling<br>expenses | (26,799) | (9,747) | (36,546) | 3.1% |
| Other<br>operating results, net | 8,415 | (9,723) | (1,308) | (111.0)% |
| Result from operations | 8,429 | (143,043) | (134,614) | (128.9)% |
| Share<br>of profit of associates | (1,123) | 24,061 | 22,938 | (44.3)% |
| Segment result | 7,306 | (118,982) | (111,676) | (122.0)% |
| 6M 2024 | Agribusiness | Urban Properties and Investments | Total | |
| --- | --- | --- | --- | |
| Revenues | 225,523 | 183,583 | 409,106 | |
| Costs | (181,614) | (32,373) | (213,987) | |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | (1,398) | - | (1,398) | |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | 15,077 | - | 15,077 | |
| Gross profit | 57,588 | 151,210 | 208,798 | |
| Net<br>gain from fair value adjustment on investment<br>properties | 2,079 | 304,614 | 306,693 | |
| Gain<br>from disposal of farmlands | 9,196 | - | 9,196 | |
| General<br>and administrative expenses | (20,362) | (15,335) | (35,697) | |
| Selling<br>expenses | (22,907) | (12,549) | (35,456) | |
| Other<br>operating results, net | 15,855 | (4,011) | 11,844 | |
| Result from operations | 41,449 | 423,929 | 465,378 | |
| Share<br>of profit of associates | (117) | 41,310 | 41,193 | |
| Segment result | 41,332 | 465,239 | 506,571 |
2025 Campaign
The 2025 campaign is developing with a larger planted area, good climatic prospects in the region, slightly rising commodity prices, and input costs that have been adjusted in line with the decline in prices experienced last year, which allows for better results than those obtained in the previous campaign. In Argentina, the good level of rainfall at the beginning of the campaign allowed for a fine harvest with good yields in most crops and optimal sowing of summer crops. In January, we experienced lack of rains, which, if it continues in February, could negatively impact the critical periods of the main crops. We are optimistic about the future evolution of the campaign and the impact of the recent government announcement of the reduction of soybean export taxes from 33% to 26%, wheat and corn from 12% to 9.5%, and the elimination for regional economies. This measure is temporarily until June 30, 2025, but it directly impacted both the prices of available grains and future prices.
Our Portfolio
During the second quarter of fiscal year 2025, our portfolio under management consisted of 728,114 hectares, of which 304,189 hectares are productive, and 423,925 hectares are land reserves distributed in the four countries of the region where we operate.
43
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Breakdown of Hectares:
Own and under Concession (*) (**) (***)
| Productive Lands | ||||
|---|---|---|---|---|
| Agricultural | Cattle | Reserved | Total | |
| Argentina | 73,906 | 140,424 | 312,607 | 526,937 |
| Brazil | 50,009 | 11,763 | 70,663 | 132,435 |
| Bolivia | 8,776 | - | 1,244 | 10,020 |
| Paraguay | 11,970 | 7,341 | 39,411 | 58,722 |
| Total | 144,661 | 159,528 | 423,925 | 728,114 |
(*) Includes Brazil, Paraguay, Agro-Uranga S.A. at 34.86% and 132,000 hectares under Concession.
(**) Includes 85,000 hectares intended for sheep breeding
(***) Excludes double crops.
Leased (*)
| Agricultural | Cattle | Other | Total | |
|---|---|---|---|---|
| Argentina | 56,613 | 10,896 | - | 67,509 |
| Brazil | 61,871 | - | 7,048 | 68,919 |
| Bolivia | 1,065 | - | - | 1,065 |
| Total | 119,549 | 10,896 | 7,048 | 137,493 |
(*) Excludes double crops.
Segment Income – Agricultural Business
I)
Land Development and Sales
We periodically sell properties that have reached a considerable appraisal to reinvest in new farms with higher appreciation potential. We analyze the possibility of selling based on a number of factors, including the expected future yield of the farmland for continued agricultural and livestock exploitation, the availability of other investment opportunities and cyclical factors that have a bearing on the global values of farmlands.
| in ARS million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | - | - | - |
| Costs | (134) | (144) | (6.9)% |
| Gross loss | (134) | (144) | (6.9)% |
| Net<br>gain from fair value adjustment on investment<br>properties | (646) | 2,079 | (131.1)% |
| Gain<br>from disposal of farmlands | 23,726 | 9,196 | 158.0% |
| General<br>and administrative expenses | (37) | (35) | 5.7% |
| Selling<br>expenses | (753) | (85) | 785.9% |
| Other<br>operating results, net | 8,932 | 12,140 | (26.4)% |
| Profit from operations | 31,088 | 23,151 | 34.3% |
| Segment profit | 31,088 | 23,151 | 34.3% |
| EBITDA | 31,107 | 23,175 | 34.2% |
| Adjusted EBITDA | 31,753 | 21,095 | 50.5% |
The Segment profit increased by ARS 7,937 million, primarily driven by the gains from farmland sales recorded in the first quarter of the period. No farmland sales were registered in the region during the second quarter.
44
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
II)
Agricultural Production
The result of the Farming segment went from a ARS 5,483 million gain during the first half of fiscal year 2024 to a ARS 3,983 million loss during the same period of the fiscal year 2025.
| in ARS million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 148,762 | 153,519 | (3.1)% |
| Costs | (124,728) | (137,004) | (9.0)% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 2,786 | (1,398) | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | (1,806) | 15,077 | (112.0)% |
| Gross profit | 25,014 | 30,194 | (17.2)% |
| General<br>and administrative expenses | (10,763) | (11,266) | (4.5)% |
| Selling<br>expenses | (16,248) | (16,280) | (0.2)% |
| Other<br>operating results, net | (1,670) | 658 | (353.8)% |
| Results from operations | (3,667) | 3,306 | (210.9)% |
| Results<br>from associates | (316) | 2,177 | (114.5)% |
| Segment results | (3,983) | 5,483 | (172.6)% |
| EBITDA | 8,517 | 12,176 | (30.1)% |
| Adjusted EBITDA | 18,522 | (2,124) | - |
II.a) Crops and Sugarcane
Crops
| in ARS million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 84,167 | 92,258 | (8.8)% |
| Costs | (70,991) | (86,152) | (17.6)% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | (7,174) | 801 | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | (1,787) | 14,687 | - |
| Gross result | 4,215 | 21,594 | -80.5)% |
| General<br>and administrative expenses | (7,497) | (8,062) | (7.0)% |
| Selling<br>expenses | (14,033) | (13,347) | 5.1% |
| Other<br>operating results, net | 571 | 871 | (34.4)% |
| Profit from operations | (16,744) | 1,056 | - |
| Results<br>from associates | (316) | 2,162 | - |
| Activity Profit | (17,060) | 3,218 | - |
Sugarcane
| in ARS million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 45,159 | 42,880 | 5.3% |
| Costs | (36,811) | (35,648) | 3.3% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 5,870 | (1,668) | - |
| Gross result | 14,218 | 5,564 | 155.5% |
| General<br>and administrative expenses | (1,858) | (1,740) | 6.8% |
| Selling<br>expenses | (772) | (1,596) | (51.6)% |
| Other<br>operating results, net | (905) | 131 | - |
| Profit from operations | 10,683 | 2,359 | 352.9% |
| Activity profit | 10,683 | 2,359 | 352.9% |
45
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Operations
| Production Volume (1) | 6M 25 | 6M 24 | 6M 23 | 6M 22 | 6M 21 |
|---|---|---|---|---|---|
| Corn | 123,188 | 226,709 | 159,712 | 231,058 | 185,889 |
| Soybean | 1,549 | 7,499 | 13,760 | 10,559 | 10,079 |
| Wheat | 42,620 | 24,495 | 22,696 | 33,615 | 35,029 |
| Sorghum | 1,078 | 3,161 | 2,066 | 2,725 | 795 |
| Sunflower | - | 177 | -7 | 232 | - |
| Cotton | 20,449 | 14,676 | 3,353 | 3,094 | 6,818 |
| Other | 8,395 | 10,138 | 6,939 | 5,860 | 3,298 |
| Total Crops (tons) | 197,279 | 286,855 | 208,519 | 287,143 | 241,908 |
| Sugarcane (tons) | 1,340,673 | 1,305,064 | 1,287,194 | 1,532,990 | 1,679,465 |
(1)
Includes BrasilAgro. Excludes Agro-Uranga.
Next, we present the total volume sold according to its geographical origin measured in tons:
| Volume of | 6M 25 | 6M 24 | 6M 23 | 6M 22 | 6M 21 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales (3) | M.L. (1) | M.E. (2) | Total | M.L. (1) | M.E. (2) | Total | M.L. (1) | M.E. (2) | Total | M.L. (1) | M.E. (2) | Total | M.L. (1) | M.E. (2) | Total |
| Corn | 118.9 | 20.0 | 138.9 | 152.4 | 94.4 | 246.8 | 153.8 | 84.4 | 238.2 | 193.8 | 65.3 | 259.1 | 218.9 | 70.0 | 288.9 |
| Soybean | 30.2 | 72.8 | 103.0 | 22.1 | 34.9 | 57.0 | 47.9 | 15.5 | 63.4 | 83.7 | 50.3 | 134.0 | 84.8 | 23.3 | 108.1 |
| Wheat | 17.8 | - | 17.8 | 6.8 | - | 6.8 | 8.4 | - | 8.4 | 12.0 | 1.0 | 13.0 | 15.9 | 1.3 | 17.2 |
| Sorghum | 12.8 | - | 12.8 | 2.8 | - | 2.8 | 12.1 | - | 12.1 | 21.4 | - | 21.4 | - | - | - |
| Sunflower | 0.6 | - | 0.6 | 2.0 | - | 2.0 | 0.7 | - | 0.7 | 0.3 | - | 0.3 | - | - | - |
| Cotton | 9.4 | 2.2 | 11.6 | 9.9 | 1.2 | 11.1 | 5.0 | - | 5.0 | 3.8 | - | 3.8 | 2.6 | - | 2.6 |
| Others | 5.7 | - | 5.7 | 6.4 | - | 6.4 | 6.0 | - | 6.0 | 5.6 | 1.2 | 6.8 | 3.3 | 1.0 | 4.3 |
| Total Crops (thousand ton) | 195.4 | 95.0 | 290.4 | 202.4 | 130.5 | 332.9 | 233.9 | 99.9 | 333.8 | 320.6 | 117.8 | 438.4 | 325.5 | 95.6 | 421.1 |
| Sugarcane (thousands ton) | 1.340.7 | - | 1.340.7 | 1,305.1 | - | 1,305.1 | 1,161.0 | - | 1,161.0 | 1,387.7 | - | 1,387.7 | 1,560.3 | - | 1,560.3 |
(1)
Local Market
(2)
International Market
(3)
Includes BrasilAgro. Does not include Agro-Uranga S.A
The Grains activity presented a negative variation of ARS 20.278 million, from a ARS 3,218 million gain during the first half of fiscal year 2024 to a ARS 17,060 million loss during the same period of fiscal year 2025, mainly because of:
●
A holding loss in Argentina due to price performance lagging behind inflation, mainly in soybeans, corn, and wheat.
●
A negative variation in production results due to the progress of the 2024-2025 wheat campaign, which had lower production margins compared to the previous campaign. This was caused by a decline in dollar-denominated prices and a devaluation rate lower than inflation, preventing the increase in production from offsetting the drop in profitability.
●
Partially offset by better results from sales and holdings in Brazil, driven by a 47% increase in soybean volumes sold, along with a 5% rise in prices. Additionally, a gain was recorded in commodity derivatives results, as soybean positions taken during the campaign were sold at average prices above market levels.
The result of the Sugarcane activity increased by ARS 8,324 million, from a gain of ARS 2,359 million in the first half of fiscal year 2024 to a gain of ARS 10,683 million in the same period of 2025. This is mainly driven by higher production gains in Brazil, with improved margins due to increased ethanol consumption following the rise in diesel prizes, along with higher production volumes in tons, partially offset by higher fertilizer and transportation costs.
46
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
| Area in<br>Operation (hectares) (1) | As of 12/31/24 | As of 12/31/23 | YoY Var |
|---|---|---|---|
| Own<br>farms | 114,272 | 121,258 | -5.8% |
| Leased<br>farms | 152,735 | 119,054 | 28.3% |
| Farms<br>under concession | 22,469 | 22,349 | 0.5% |
| Own<br>farms leased to third parties | 14,507 | 21,380 | -32.1% |
| Total Area Assigned to Production | 303,983 | 284,041 | 7.0% |
(1)
Includes Agro-Uranga.
II.b) Cattle Production
| Production Volume | 6M 25 | 6M 24 | 6M 23 | 6M 22 | 6M 21 |
|---|---|---|---|---|---|
| Cattle herd (tons)(1) | 5,495 | 4,496 | 4,273 | 3,575 | 4,543 |
(1) Production measured in tons of live weight. Production is the sum of the net increases (or decreases) during a given period in live weight of each head of livestock we own.
| Volume of | 6M 25 | 6M 24 | 6M 23 | 6M 22 | 6M 21 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales (1) | D.M | F.M | Total | D.M | F.M | Total | D.M | F.M | Total | D.M | F.M | Total | D.M | F.M | Total |
| Cattle herd | 7.9 | - | 7.9 | 6.3 | - | 6.3 | 5.2 | - | 5.2 | 6.2 | - | 6.2 | 8.5 | - | 8.5 |
D.M.: Domestic market
F.M.: Foreign market
Cattle
| In ARS Million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 17,787 | 13,889 | 28.1% |
| Costs | (14,489) | (10,916) | 32.7% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce | 4,090 | (531) | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | (19) | 390 | - |
| Gross Profit | 7,369 | 2,832 | 160.2% |
| General<br>and administrative expenses | (1,122) | (1,074) | 4.5% |
| Selling<br>expenses | (1,325) | (980) | 35.2% |
| Other<br>operating results, net | (1,200) | (274) | 338.0% |
| Result from operations | 3,722 | 504 | 638.5% |
| Results<br>from associates | - | 15 | (100.0)% |
| Activity Result | 3,722 | 519 | 617.1% |
| Area in operation – Cattle (hectares) (1) | As of 12/31/24 | As of 12/31/23 | YoY Var |
| --- | --- | --- | --- |
| Own<br>farms | 69,034 | 68,013 | 1.5% |
| Leased<br>farms | 10,896 | 10,896 | - |
| Farms<br>under concession | 2,696 | 2,696 | - |
| Own<br>farms leased to third parties | 2,797 | 70 | 3,896.3% |
| Total Area Assigned to Cattle Production | 85,423 | 81,675 | 4.6% |
(1) Includes Agro-Uranga, Brazil and Paraguay,
| Stock of Cattle Heard | As of 12/31/24 | As of 12/31/23 | YoY Var |
|---|---|---|---|
| Breeding<br>stock | 65,169 | 70,265 | -7.3% |
| Winter<br>grazing stock | 17,183 | 10,588 | 62.3% |
| Sheep<br>stock | 12,325 | 15,917 | -22.6% |
| Total Stock (heads) | 94,677 | 96,770 | -2.2% |
The result of the Cattle activity increased by ARS 3,203 million, from a ARS 519 million gain during the first half of fiscal year 2024 to a ARS 3,722 million gain in the same period of fiscal year 2025, mainly driven by improved price performance boosted by the strong recovery of the Brazilian Market, along with a significant increase in the volume of meat produced in Argentina, despite higher production costs, primarily related to feed expenses.
47
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
II.c) Agricultural Rental and Services
| In ARS Million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 1,649 | 4,492 | (63.3)% |
| Costs | (2,437) | (4,288) | (43.2)% |
| Gross profit | (788) | 204 | - |
| General<br>and Administrative expenses | (286) | (390) | (26.7)% |
| Selling<br>expenses | (118) | (357) | (66.9)% |
| Other<br>operating results, net | (136) | (70) | 94.3% |
| Result from operations | (1,328) | (613) | 116.6% |
| Activity Result | (1,328) | (613) | 116.6% |
The result of the activity decreased by ARS 715 million, from a ARS 613 million loss in the first half of fiscal year 2024 to a ARS 1,328 million loss in the same period of 2025.
III) Other Segments
We include within "Others" the results coming from our investment in FyO.
The result of the segment decreased by ARS 32,513 million, going from a ARS 15,331 million gain for the first half of fiscal year 2024 to a ARS 17,182 million loss for the same period of fiscal year 2025, due to a loss in stockpiling and consignment operations and on grain brokerage commissions.
| In ARS Million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| Revenues | 89,953 | 72,004 | 24.9% |
| Costs | (92,067) | (44,466) | 107.1% |
| Gross result | (2,114) | 27,538 | (107.7)% |
| General<br>and administrative expenses | (5,616) | (6,428) | (12.6)% |
| Selling<br>expenses | (9,798) | (6,542) | 49.8% |
| Other<br>operating results, net | 1,153 | 3,057 | (62.3)% |
| Result from operations | (16,375) | 17,625 | (192.9)% |
| Profit<br>from associates | (807) | (2,294) | (64.8)% |
| Segment Result | (17,182) | 15,331 | (212.1)% |
| EBITDA | (14,983) | 18,970 | (179.0)% |
| Adjusted EBITDA | (15,013) | 18,865 | (179.6)% |
IV) Corporate Segment
The negative result went from a loss of ARS 2,633 million in the first half of the fiscal year 2024 to a ARS 2,617 million in the same period of fiscal year 2025.
| In ARS Million | 6M 25 | 6M 24 | YoY Var |
|---|---|---|---|
| General<br>and administrative expenses | (2,617) | (2,633) | (0.6)% |
| Loss from operations | (2,617) | (2,633) | (0.6)% |
| Segment loss | (2,617) | (2,633) | (0.6)% |
| EBITDA | (2,617) | (2,633) | (0.6)% |
| Adjusted EBITDA | (2,617) | (2,633) | (0.6)% |
48
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Urban Properties and Investments Business (through our subsidiary IRSA Inversiones y Representaciones Sociedad Anónima)
We develop our Urban Properties and Investments segment through our subsidiary IRSA. As of December 31, 2024, our direct and indirect equity interest in IRSA was 55.77% over stock capital.
Consolidated results of our subsidiary IRSA Inversiones y Representaciones S.A.
| en ARS Millones | 6M 25 | 6M 24 | Var a/a |
|---|---|---|---|
| Revenues | 211,795 | 220,847 | (4.1)% |
| Results<br>from operations | (144,360) | 420,144 | (134.4)% |
| EBITDA | (138,449) | 428,211 | (132.3)% |
| Adjusted EBITDA | 103,136 | 137,760 | (25.1)% |
| Segment results | (118,982) | 465,239 | (125.6)% |
Consolidated revenues from sales, rentals and services decreased by 4.1% during the first half of fiscal year 2025 compared to the same period of 2024. Adjusted EBITDA reached ARS 103,136 million, 25,1% lower than in the same period of the previous fiscal year.
Financial Indebtedness and Other
The following tables contain a breakdown of the company’s indebtedness as of December 31, 2024:
Agricultural Business
| Description | Currency | Amount (USD MM)(1)(2) | Interest Rate | Maturity |
|---|---|---|---|---|
| Loans<br>and bank overdrafts | ARS | 3.9 | Variable | <<br>30 days |
| Series<br>XLIII | ARS | 19.3 | Variable | Jan-25 |
| Series<br>XXXVI | USD | 29.0 | 2.00% | Feb-25 |
| Series<br>XXXVII | USD | 24.4 | 5.50% | Mar-25 |
| Series<br>XXXVIII | USD | 70.4 | 8.00% | Mar-26 |
| Series<br>XLII | USD | 30.0 | 0.00% | May-26 |
| Series<br>XLV | USD | 10.2 | 6.00% | Aug-26 |
| Series<br>XL | USD | 38.2 | 0.00% | Dec-26 |
| Series<br>XLIV | USD | 39.8 | 6.00% | Jan-27 |
| Series<br>XLVI | USD | 23.8 | 1.50% | Jul-27 |
| Series<br>XLVII | USD | 64.4 | 7.00% | Nov-28 |
| Other<br>debt | USD | 12.3 | ||
| CRESUD’s Total Debt (3) | USD | 365.7 | ||
| Cash and cash equivalents (3) | USD | 43.2 | ||
| CRESUD’s Net Debt | USD | 322.5 | ||
| Brasilagro’s Total Net Debt | USD | 134,7 |
(1) Net of repurchases
(2) Principal amount stated in USD (million) at an exchange rate of 1,032.0 ARS/USD and 6.178 BRL/USD, without considering accrued interest or elimination of balances with subsidiaries.
(3) Does not include FyO
49
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Urban Properties and Investments Business
| Description | Currency | Amount (USD MM) (1) | Interest Rate | Maturity |
|---|---|---|---|---|
| Bank<br>overdrafts | ARS | 29.5 | Variable | <<br>360 days |
| Series<br>XIX | ARS | 25.4 | Variable | Feb-25 |
| Series<br>XV | USD | 54.5 | 8.00% | Mar-25 |
| Series<br>XXI | ARS | 16.5 | Variable | Jun-25 |
| Series<br>XVI | USD | 28.3 | 7.00% | Jul-25 |
| Series<br>XVII | USD | 25.0 | 5.00% | Dec-25 |
| Series<br>XX | USD | 21.3 | 6.00% | Jun-26 |
| Series<br>XVIII | USD | 21.4 | 7.00% | Feb-27 |
| Series<br>XXII | USD | 15.8 | 5.75% | Oct-27 |
| Series<br>XIV | USD | 134.8 | 8.75% | Jun-28 |
| Series<br>XXIII | USD | 51.5 | 7.25% | Oct-29 |
| IRSA’s Total Debt | USD | 424.0 | ||
| Cash & Cash Equivalents + Investments<br><br>(2) | USD | 168.6 | ||
| IRSA’s Net Debt | USD | 255.4 |
(1)
Principal amount in USD (million) at an exchange rate of ARS 1,032.0/USD, without considering accrued interest or eliminations of balances with subsidiaries.
(2)
Includes Cash and cash equivalents, Investments in Current Financial Assets and related companies notes holding.
Comparative Summary Consolidated Balance Sheet Data
| In ARS million | Dec-24 | Dec-23 | Dec-22 | Dec-21 | Dec-20 |
|---|---|---|---|---|---|
| Current<br>assets | 860,003 | 1,327,764 | 936,135 | 987,205 | 796,786 |
| Non-current<br>assets | 3,095,323 | 4,538,207 | 3,903,039 | 4,406,776 | 4,656,091 |
| Total assets | 3,955,326 | 5,865,971 | 4,839,174 | 5,393,981 | 5,452,877 |
| Current<br>liabilities | 818,215 | 1,124,142 | 932,486 | 810,843 | 1,353,715 |
| Non-current<br>liabilities | 1,477,235 | 2,253,914 | 1,892,024 | 2,585,510 | 2,272,796 |
| Total liabilities | 2,295,450 | 3,378,056 | 2,824,510 | 3,396,353 | 3,626,511 |
| Total<br>capital and reserves attributable to the shareholders of the<br>controlling company | 739,254 | 1,034,166 | 844,254 | 732,010 | 598,458 |
| Minority<br>interests | 920,622 | 1,453,749 | 1,170,410 | 1,265,618 | 1,227,908 |
| Shareholders’ equity | 1,659,876 | 2,487,915 | 2,014,664 | 1,997,628 | 1,826,366 |
| Total liabilities plus minority interests plus shareholders’<br>equity | 3,955,326 | 5,865,971 | 4,839,174 | 5,393,981 | 5,452,877 |
Comparative Summary Consolidated Statement of Income Data
| In ARS million | Dec-24 | Dec-23 | Dec-22 | Dec-21 | Dec-20 |
|---|---|---|---|---|---|
| Gross<br>profit | 153,481 | 207,081 | 174,605 | 193,431 | 114,461 |
| Profit from operations | (135,606) | 449,429 | (115,001) | 448,421 | 178,608 |
| Results<br>from associates and joint ventures | 23,654 | 43,276 | 5,505 | 821 | (9,726) |
| Profit<br>from operations before financing and taxation | (111,952) | 492,705 | (109,496) | 449,242 | 168,882 |
| Financial<br>results, net | 24,913 | (144,523) | 59,656 | 110,047 | (18,322) |
| Profit<br>before income tax | (87,039) | 348,182 | (49,840) | 559,289 | 150,560 |
| Income<br>tax expense | 22,648 | (82,064) | 180,296 | (56,921) | (82,136) |
| Result<br>of the period of continuous operations | (64,391) | 266,118 | 130,456 | 502,368 | 68,424 |
| Result<br>of discontinued operations after taxes | - | - | - | - | (133,470) |
| Result for the period | (64,391) | 266,118 | 130,456 | 502,368 | (65,046) |
| Controlling<br>company’s shareholders | (61,541) | 106,267 | 71,707 | 280,138 | (59,811) |
| Non-controlling<br>interest | (2,850) | 159,851 | 58,749 | 222,230 | (5,235) |
50
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Comparative Summary Consolidated Statement of Cash Flow Data
| In ARS million | Dec-24 | Dec-23 | Dec-22 | Dec-21 | Dec-20 |
|---|---|---|---|---|---|
| Net<br>cash generated by operating activities | (20,371) | 106,197 | (2,515) | 136,982 | 64,830 |
| Net<br>cash (used in) / generated by investment activities | (62,277) | 118,217 | 37,305 | 97,793 | 1,008,335 |
| Net<br>cash used in financing activities | 40,338 | (244,973) | (224,107) | (256,652) | (910,311) |
| Total net cash generated during the fiscal period | (42,310) | (20,559) | (189,317) | (21,877) | 162,854 |
Ratios
| In ARS million | Dec-24 | Dec-23 | Dec-22 | Dec-21 | Dec-20 |
|---|---|---|---|---|---|
| Liquidity (1) | 1.051 | 1.181 | 1.004 | 1.218 | 0.589 |
| Solvency (2) | 0.723 | 0.736 | 0.713 | 0.588 | 0.504 |
| Restricted capital (3) | 0.783 | 0.774 | 0.807 | 0.817 | 0.854 |
(1) Current Assets / Current Liabilities
(2) Total Shareholders’ Equity/Total Liabilities
(3) Non-current Assets/Total Assets
Material events of the quarter and subsequent events
October 2024: General Ordinary and Extraordinary Shareholders’ Meeting
On October 28, 2024, our General Ordinary and Extraordinary Shareholders’ Meeting was held. The following matters. inter alia, were resolved by majority of votes:
●
Distribution of a cash dividend of ARS 45,000 million as of the date of the Shareholders’ Meeting.
●
Designation of board members.
●
Compensations to the Board of Directors for the fiscal year ended June 30, 2024.
●
The issuance and public offering of complementary shares to fulfill the delivery of shares under the exercise of option holders' rights.
On November 7, 2024, the Company distributed among its shareholders the cash dividend in an amount of ARS 45,000,000,000 equivalent to 7,527.253613523% of the stock capital, an amount per share of ARS 75,27253613523 and an amount per ADS of ARS 752.7253613523.
October 2024: Shares Buyback Program – Start and Completion
On October 28, 2024, the Board of Directors has approved the terms and conditions for the acquisition of the common shares issued by the Company under the provisions of Section 64 of Law Nº 26,831 and the Rules of the Argentine National Securities Commission.
●
Maximum amount of the investment: Up to ARS 6,500 million.
●
Maximum number of shares to be acquired: Up to 10% of the capital stock of the Company, in accordance with the provisions of the applicable regulations.
●
Daily limitation on market transactions: In accordance with the applicable regulation, the limitation will be up to 25% of the average volume of the daily transactions for the Shares and ADS in the markets during the previous 90 days.
●
Payable Price: Up to ARS 1.500 per ordinary share and up to USD 12.00 per ADS.
●
Period in which the acquisitions will take place: up to 180 days after the publication of the minutes, subject to any renewal or extension of the term, which will be informed to the investing public.
●
Origin of the Funds: The acquisitions will be made with realized and liquid earnings pending of distribution of the Company.
51
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
To make such a decision, the Board of Directors has taken into account the economic and market situation, as well as the discount that the current share price has in relation to the fair value of the assets, determined by independent appraisers, and has as its objective to contribute to the strengthening of the shares in the market and reduce the fluctuations in the listed value that does not reflect the value or the economic reality that the assets currently have, resulting in the detriment of the interests of the Company's shareholders.
On December 20, 2024, the Company completed the shares buyback program, having acquired in the local market 4,522,623 ordinary shares, which represent approximately 99.98% of the approved program and 0.75% of the outstanding shares.
November 2024: Warrants – Post dividends distribution
On November 8, 2024, the Company reported that due to the cash dividend and own shares distributed to the shareholders, the terms and conditions of the outstanding warrants for common shares of the Company have been modified as follows, while the other terms and conditions remain the same:
Number of shares to be issued per warrant:
●
Ratio before the adjustment: 1.3146
●
Ratio after the adjustment (current): 1.4075
Warrant exercise price per new share to be issued:
●
Price before the adjustment: USD 0.4303
●
Price after adjustment (current): USD 0.4019
November 2024: Notes issuance
On November 15, 2024, Cresud issued Notes on the local market for a total amount of USD 64.4 million through the following instrument:
●
Series XLVII: Denominated in dollars for USD 64.4 million, with 7.0% interest rate and semiannual interests’ payments. The Capital amortization will be 100% at maturity, on November 15, 2028. The issuance price was 100.0%.
The funds were mainly used to refinance short-term liabilities and working capital in Argentina.
November 2024: Warrants Exercise
Between November 17 and 25, 2024, certain warrants holders have exercised their right to acquire additional shares.
Therefore, a total of 4,501,293 ordinary shares of the Company were registered, with a face value of ARS 1. As a result of the exercise, USD 1,809,070 was collected by the Company.
After the exercise of these warrants, the number of shares and the capital stock of the Company increased from 598,639,142 to 603,140,435, and the number of outstanding warrants decreased from 84,261,280 to 81,063,170.
52
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
EBITDA Reconciliation
In this summary report, we present EBITDA and Adjusted EBITDA. We define EBITDA as profit for the period excluding: (i) result of discontinued operations, (ii) income tax expense, (iii) financial results, net iv) results from participation in associates and joint ventures; and (v) depreciation and amortization. We define Adjusted EBITDA as EBITDA minus net profit from changes in the fair value of investment properties, not realized and realized sales.
EBITDA and Adjusted EBITDA are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. We present EBITDA and adjusted EBITDA because we believe they provide investors supplemental measures of our financial performance that may facilitate period-to-period comparisons on a consistent basis. Our management also uses EBITDA and Adjusted EBITDA from time to time, among other measures, for internal planning and performance measurement purposes. EBITDA and Adjusted EBITDA should not be construed as an alternative to profit from operations, as an indicator of operating performance or as an alternative to cash flow provided by operating activities, in each case, as determined in accordance with IFRS. EBITDA and Adjusted EBITDA, as calculated by us, may not be comparable to similarly titled measures reported by other companies. The table below presents a reconciliation of profit for the relevant period to EBITDA and Adjusted EBITDA for the periods indicated:
| For the six-month period ended December 31 (in ARS<br>million) | ||
|---|---|---|
| 2024 | 2023 | |
| Result<br>for the period | (64,391) | 266,118 |
| Income<br>tax expense | (22,648) | 82,064 |
| Net<br>financial results | (24,913) | 144,523 |
| Share<br>of profit of associates and joint ventures | (23,654) | (43,276) |
| Depreciation<br>and amortization | 27,852 | 24,963 |
| Rights<br>of use installments | (9,705) | (10,551) |
| EBITDA (unaudited) | (117,459) | 463,841 |
| Gain<br>from fair value of investment properties, not realized -<br>agribusiness | 646 | (2,079) |
| Gain<br>from fair value of investment properties, not realized - Urban<br>Properties Business | 227,212 | (302,131) |
| Realized sale – Real<br>Estate | 2,738 | 30,818 |
| Initial<br>recognition and changes in fair value of biological<br>assets | (980) | (13,682) |
| Realized<br>initial recognition and changes in fair value of biological<br>assets | 10,955 | (723) |
| Others | 11,849 | (16,655) |
| Adjusted EBITDA (unaudited) | 134,961 | 159,389 |
53
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of December 31, 2024
Brief comment on prospects for the fiscal year
The 2025 campaign is developing with a larger planted area, good regional climatic prospects, slightly rising commodity prices, and input costs that have been adjusted in line with the decline in prices experienced last year, which allows for better results than those obtained in the previous campaign. In Argentina, the good level of rainfall at the beginning of the campaign allowed for a fine harvest with good yields in most crops and optimal sowing of summer crops. In January, we experienced lack of rains, which, if it continues in February, could negatively impact the critical periods of the main crops. We are optimistic about the future evolution of the campaign and the impact of the recent government announcement of the reduction of soybean export taxes from 33% to 26%, wheat and corn from 12% to 9.5%, and the elimination for regional economies. This measure is temporarily until June 30, 2025, but it directly impacted both the prices of available grains and future prices.
Regarding livestock activity, we expect a year of good prices in Argentina with high production and good margins. The feedlots that the company has in La Pampa and Salta are operating at full capacity.
On the real estate side, since the new government took office in December 2023, we have begun to see greater interest in our farms in Argentina and operations that are gradually materializing. In Brazil, liquidity in the land market continues, and Brasilagro was able to close good deals in recent quarters. As part of our business strategy, we will continue to sell farms that have reached their maximum appreciation level in Argentina and the region.
Our agricultural commercial services business, through FyO, projects continued growth in grain trading, continuing the company’s digital transformation, and advancing the regionalization of the input business in Brazil, Paraguay, Bolivia, and Peru with the aim of increasing sales and margins.
The urban properties and investments business, which we own through IRSA, has been showing good operational performance in its rental businesses and launching new mixed-use developments, such as Ramblas del Plata in Puerto Madero Sur, which we expect will drive the company's growth over the next 10 to 15 years. The outlook for the second half of the 2025 fiscal year is positive for consumption in shopping malls and the office portfolio, while the hotel sector presents a greater challenge given the impact of the current lower FX competitiveness in Argentina. We trust in the quality of IRSA's portfolio and the management's ability to adapt to changes in the context and continue offering the best proposals to its tenants and visitors.
We will continue working during the 2025 fiscal year on reducing and streamlining the cost structure while continuing to evaluate financial, economic, and/or corporate tools that allow the Company to improve its position in the market in which it operates and have the necessary liquidity to meet its obligations, such as the disposal of assets publicly and/or privately, which may include real estate as well as marketable securities owned by the Company, notes issuance, repurchase of own shares, among other instruments that are useful to the proposed objectives.
We believe that Cresud, owner of a diversified rural and urban real estate portfolio, with experienced management team and a great track record in accessing capital markets, will have excellent opportunities to take advantage of the best opportunities in the market.
Alejandro G. Elsztain
CEO
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