6-K
Cresud Inc (CRESY)
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Financial Statements as of March 31, 2024 and for the nine 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°: 91,<br>beginning on July 1, 2023 | ||
| 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: 594,304,406 common<br>shares | ||
| Common stock subscribed, issued and paid up nominal value (millions<br>of ARS): 594 | ||
| Control Group: Eduardo S.<br>Elsztain directly and through Inversiones Financieras del Sur S.A.,<br>Agroinvestment S.A. and Consultores Venture Capital Uruguay<br>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) - Cambara 1620, 2nd floor, office<br>202, Carrasco, 11000 Montevideo, Uruguay (Agroinvesment<br>S.A.) –<br>Road 8, km 17,500, Zonamérica Building 1, store 106,<br>Montevideo, Uruguay (Consultores Venture Capital Uruguay<br>S.A.). | ||
| Parent companies' activity:<br>Investment | ||
| Direct and indirect participation of the Control Group over the<br>capital: 230,771,682<br>shares | ||
| Voting stock (direct and indirect equity interest):<br>38.96% (*) | ||
| 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 | 594,304,406 (**) | 594 |
| (*) 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 | 8 |
| Note<br>3 - Seasonal effects on operations | 9 |
| Note<br>4 - Acquisitions and disposals | 9 |
| Note<br>5 - Financial risk management and fair value estimates | 12 |
| Note<br>6 - Segment information | 12 |
| Note<br>7 - Investments in associates and joint ventures | 17 |
| Note<br>8 - Investment properties | 19 |
| Note<br>9 - Property, plant and equipment | 21 |
| Note<br>10 - Trading properties | 22 |
| Note<br>11 - Intangible assets | 22 |
| Note<br>12 - Right-of-use assets | 22 |
| Note<br>13 - Biological assets | 23 |
| Note<br>14 - Inventories | 24 |
| Note<br>15 - Financial instruments by category | 24 |
| Note<br>16 - Trade and other receivables | 26 |
| Note<br>17 - Cash flow and cash equivalents information | 27 |
| Note<br>18 - Trade and other payables | 28 |
| Note<br>19 - Provisions | 28 |
| Note<br>20 - Borrowings | 29 |
| Note<br>21 - Taxation | 30 |
| Note<br>22 - Revenues | 31 |
| Note<br>23 - Costs | 31 |
| Note<br>24 - Expenses by nature | 32 |
| Note<br>25 - Other operating results, net | 32 |
| Note<br>26 - Financial results, net | 32 |
| Note<br>27 - Related parties transactions | 33 |
| Note<br>28 - CNV General Resolution N° 622 | 34 |
| Note<br>29 - Cost of sales and services provided | 35 |
| Note<br>30 - Foreign currency assets and liabilities | 36 |
| Note<br>31 - Result from discontinued operations | 37 |
| Note<br>32 - Subsequent Events | 43 |
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 |
|---|---|
| BHSA | Banco Hipotecario S.A. |
| CAMSA | Consultores Assets Management S.A. |
| CCL | Cash settlement |
| CNV | Securities Exchange Commission (Argentina) |
| Condor | Condor Hospitality Trust Inc. |
| Cresud, “the Company”, “us” | Cresud S.A.C.I.F. y A. |
| Financial Statements | Unaudited Condensed Interim Consolidated Financial<br>Statements |
| CPF | Collective Promotion Funds |
| GCDI | GCDI S.A. |
| 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 |
| Quality | Quality Invest S.A. |
1
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statement of Financial Position
as of March 31, 2024 and June 30, 2023
(All amounts in millions of Argentine pesos, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
| Note | 03.31.2024 | 06.30.2023 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Investment<br>properties | 8 | 1,398,162 | 1,837,232 |
| Property,<br>plant and equipment | 9 | 484,142 | 456,093 |
| Trading<br>properties | 10 | 17,373 | 18,911 |
| Intangible<br>assets | 11 | 61,248 | 31,232 |
| Group<br>of assets held for sale | 6,075 | - | |
| Right-of-use<br>assets | 12 | 63,065 | 58,720 |
| Biological<br>assets | 13 | 27,757 | 29,156 |
| Investment<br>in associates and joint ventures | 7 | 131,911 | 124,339 |
| Deferred<br>income tax assets | 21 | 8,529 | 4,475 |
| Income<br>tax credit | 6 | 69 | |
| Restricted<br>assets | 15 | 3,990 | 3,767 |
| Trade<br>and other receivables | 16 | 90,703 | 105,632 |
| Investment<br>in financial assets | 15 | 10,086 | 6,470 |
| Derivative<br>financial instruments | 15 | 1,591 | 1,227 |
| Total non-current assets | 2,304,638 | 2,677,323 | |
| Current assets | |||
| Trading<br>properties | 10 | 408 | 451 |
| Biological<br>assets | 13 | 96,769 | 58,578 |
| Inventories | 14 | 82,797 | 88,416 |
| Income<br>tax credit | 734 | 3,584 | |
| Trade<br>and other receivables | 16 | 243,182 | 243,853 |
| Investment<br>in financial assets | 15 | 140,988 | 137,314 |
| Derivative<br>financial instruments | 15 | 12,755 | 19,308 |
| Cash<br>and cash equivalents | 15 | 103,653 | 122,008 |
| Total current assets | 681,286 | 673,512 | |
| TOTAL ASSETS | 2,985,924 | 3,350,835 | |
| SHAREHOLDERS’ EQUITY | |||
| Shareholders'<br>equity (according to corresponding statement) | 580,270 | 651,857 | |
| Non-controlling<br>interest | 754,213 | 852,640 | |
| TOTAL SHAREHOLDERS' EQUITY | 1,334,483 | 1,504,497 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Trade<br>and other payables | 18 | 34,345 | 38,402 |
| Borrowings | 20 | 450,930 | 499,328 |
| Deferred<br>income tax liabilities | 21 | 462,052 | 606,213 |
| Provisions | 19 | 20,139 | 20,259 |
| Payroll<br>and social security liabilities | 1,023 | 1,062 | |
| Lease<br>liabilities | 51,692 | 55,887 | |
| Derivative<br>financial instruments | 15 | 1,818 | 145 |
| Total non-current liabilities | 1,021,999 | 1,221,296 | |
| Current liabilities | |||
| Trade<br>and other payables | 18 | 214,349 | 251,880 |
| Borrowings | 20 | 325,040 | 321,816 |
| Provisions | 19 | 3,533 | 2,713 |
| Payroll<br>and social security liabilities | 14,862 | 21,290 | |
| Income<br>tax liabilities | 49,906 | 5,176 | |
| Lease<br>liabilities | 17,907 | 18,262 | |
| Derivative<br>financial instruments | 15 | 3,845 | 3,905 |
| Total Current liabilities | 629,442 | 625,042 | |
| TOTAL LIABILITIES | 1,651,441 | 1,846,338 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 2,985,924 | 3,350,835 |
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 nine and three-month periods ended March 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
| Nine months | Three months | ||||
|---|---|---|---|---|---|
| Note | 03.31.2024 | 03.31.2023 | 03.31.2024 | 03.31.2023 | |
| Revenues | 22 | 450,813 | 428,532 | 140,375 | 109,899 |
| Costs | 23 | (253,640) | (254,482) | (77,460) | (67,039) |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | 5,786 | (2,598) | 6,358 | 9,176 | |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | 3,047 | (1,598) | (7,451) | (3,756) | |
| Gross profit | 206,006 | 169,854 | 61,822 | 48,280 | |
| Net<br>(loss) / gain from fair value adjustment of investment<br>properties | 8 | (377,718) | (134,939) | (589,529) | 1,438 |
| Gain<br>/ (loss) from disposal of farmlands | 6,254 | 2,670 | (149) | - | |
| General<br>and administrative expenses | 24 | (40,865) | (47,321) | (16,295) | (15,979) |
| Selling<br>expenses | 24 | (36,297) | (31,270) | (11,585) | (10,845) |
| Other<br>operating results, net | 25 | 10,280 | (20,071) | 1,927 | (9,674) |
| Management<br>fees | (884) | (9,048) | 7,664 | (3,276) | |
| (Loss) / Profit from operations | (233,224) | (70,125) | (546,145) | 9,944 | |
| Share<br>of profit / (loss) of associates and joint ventures | 7 | 29,680 | 2,178 | (452) | (1,655) |
| (Loss) / Profit before financial results and income<br>tax | (203,544) | (67,947) | (546,597) | 8,289 | |
| Finance<br>income | 26 | 45,512 | 6,311 | 32,377 | 1,127 |
| Finance<br>cost | 26 | (47,293) | (86,856) | (18,972) | (31,287) |
| Other<br>financial results | 26 | 110,987 | 80,883 | 299,950 | 44,365 |
| Inflation<br>adjustment | 26 | (15,635) | 63,434 | (119,158) | 8,032 |
| Financial<br>results, net | 26 | 93,571 | 63,772 | 194,197 | 22,237 |
| (Loss) / Profit before income tax | (109,973) | (4,175) | (352,400) | 30,526 | |
| Income<br>tax | 21 | 84,327 | 145,093 | 141,466 | 19,559 |
| (Loss) / Profit for the period | (25,646) | 140,918 | (210,934) | 50,085 | |
| Other<br>comprehensive income / (loss): | |||||
| Items that may be reclassified subsequently to profit or<br>loss: | |||||
| Currency<br>translation adjustment and other comprehensive results from<br>associates and joint ventures (i) | 13,718 | 3,900 | (194,357) | 17,691 | |
| Revaluation<br>surplus / (deficit) | 1,487 | 1,662 | (114) | 185 | |
| Total other comprehensive income / (loss) for the<br>period | 15,205 | 5,562 | (194,471) | 17,876 | |
| Total comprehensive (loss) / income for the period | (10,441) | 146,480 | (405,405) | 67,961 | |
| Profit / (loss) for the period attributable to: | |||||
| Equity<br>holders of the parent | 22,340 | 79,463 | (51,652) | 29,535 | |
| Non-controlling<br>interest | (47,986) | 61,455 | (159,282) | 20,550 | |
| Total comprehensive income / (loss) attributable to: | |||||
| Equity<br>holders of the parent | 27,879 | 82,381 | (121,302) | 36,649 | |
| Non-controlling<br>interest | (38,320) | 64,099 | (284,103) | 31,312 | |
| Profit / (loss) for the period per share attributable to equity<br>holders of the parent (ii): | |||||
| Basic | 37.73 | 135.07 | (87.23) | 50.20 | |
| Diluted | 31.91 | 114.16 | (87.23) | 42.43 |
(i) The components of other comprehensive (loss)/ income do not generate an impact on income tax.
(ii) See Note 30 to the Annual Consolidated Financial Statements as of June 30, 2023.
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 nine-month period ended March 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) | Retained<br>earnings | Subtotal | Non-controlling<br>interest | Total<br>Shareholders' equity | |
| Balance as of June 30, 2023 | 586 | 7 | 171,694 | 15,999 | 212,696 | (12,007) | 16,446 | 141,141 | 105,295 | 651,857 | 852,640 | 1,504,497 |
| Profit/<br>(loss) for the period | - | - | - | - | - | - | - | - | 22,340 | 22,340 | (47,986) | (25,646) |
| Other<br>comprehensive income for the period | - | - | - | - | - | - | - | 5,539 | - | 5,539 | 9,666 | 15,205 |
| Total comprehensive income / (loss) for the period | - | - | - | - | - | - | - | 5,539 | 22,340 | 27,879 | (38,320) | (10,441) |
| Assignment<br>of results - Shareholders’ meeting | - | - | - | - | - | - | 6,711 | 49,734 | (56,445) | - | - | - |
| Repurchase<br>of treasury shares | (1) | 1 | - | - | - | - | - | (1,079) | - | (1,079) | (7,697) | (8,776) |
| Reserve<br>for share - based payments | - | - | - | - | - | (470) | - | 122 | - | (348) | (640) | (988) |
| Dividends<br>distribution | - | - | - | - | - | - | - | - | (77,779) | (77,779) | (96,386) | (174,165) |
| Exercise<br>of warrants (ii) | 1 | - | 9 | (133) | 4,626 | - | - | - | - | 4,503 | 334 | 4,837 |
| Issuance<br>of shares | 6 | (6) | - | - | - | (6,375) | - | 6,375 | - | - | - | - |
| Changes<br>in non-controlling interest | - | - | - | - | - | - | - | (24,763) | - | (24,763) | 41,422 | 16,659 |
| Other<br>changes in shareholders' equity | - | - | - | - | - | - | - | 3,773 | (3,773) | - | - | - |
| Capitalization<br>of irrevocable contributions | - | - | - | - | - | - | - | - | - | - | 71 | 71 |
| Integration<br>of irrevocable contributions | - | - | - | - | - | - | - | - | - | - | 2,789 | 2,789 |
| Balance as of March 31, 2024 | 592 | 2 | 171,703 | 15,866 | 217,322 | (18,852) | 23,157 | 180,842 | (10,362) | 580,270 | 754,213 | 1,334,483 |
(i) Includes ARS 16 of Inflation adjustment of treasury shares as of March 31, 2024. See Note 19 to the Annual Consolidated Financial Statements as of June 30, 2023.
(ii) As of March 31, 2024, the remaining warrants to exercise amount to 87,558,873, equivalent to the same number of shares. See Note 31 to these Financial Statements.
(iii) Group’s other reserves for the period ended March 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, 2023 | (8,111) | 18,641 | - | 1,654 | 107,260 | 21,697 | 141,141 |
| Other<br>comprehensive income for the period | - | 4,445 | - | - | - | 1,094 | 5,539 |
| Total comprehensive income for the period | - | 4,445 | - | - | - | 1,094 | 5,539 |
| Assignment<br>of results - Shareholders’ meeting | - | - | 49,734 | - | - | - | 49,734 |
| Repurchase<br>of treasury shares | (1,079) | - | - | - | - | - | (1,079) |
| Issuance<br>of shares | 6,375 | - | - | - | - | - | 6,375 |
| Changes<br>in non-controlling interest | - | - | - | - | - | (24,763) | (24,763) |
| Reserve<br>for share-based payments | 477 | - | - | - | - | (355) | 122 |
| Other<br>changes in shareholders' equity | - | - | - | - | 3,773 | - | 3,773 |
| Balance as of March 31, 2024 | (2,338) | 23,086 | 49,734 | 1,654 | 111,033 | (2,327) | 180,842 |
(i) Includes revaluation surplus.
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 |
4
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
for the nine-month period ended March 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, 2022 | 590 | 2 | 171,681 | 16,227 | 210,895 | 1,536 | 7,759 | 4,337 | 142,950 | 555,977 | 840,932 | 1,396,909 |
| Profit<br>for the period | - | - | - | - | - | - | - | - | 79,463 | 79,463 | 61,455 | 140,918 |
| Other<br>comprehensive income for the period | - | - | - | - | - | - | - | 2,918 | - | 2,918 | 2,644 | 5,562 |
| Total comprehensive income for the period | - | - | - | - | - | - | - | 2,918 | 79,463 | 82,381 | 64,099 | 146,480 |
| Assignment<br>of results - Shareholders’ meeting | - | - | - | - | - | - | 8,687 | 144,109 | (152,796) | - | - | - |
| Repurchase<br>of treasury shares | (18) | 18 | - | - | - | - | - | (19,432) | - | (19,432) | (1,645) | (21,077) |
| Reserve<br>for share-based payments | - | - | - | - | - | 16 | - | 303 | - | 319 | 493 | 812 |
| Exercise<br>of warrants | 1 | - | 13 | (222) | 1,737 | - | - | - | - | 1,529 | 36 | 1,565 |
| Changes<br>in non-controlling interest | - | - | - | - | - | - | - | 22,153 | - | 22,153 | (29,598) | (7,445) |
| Dividends<br>distribution | - | - | - | - | - | - | - | - | (20,941) | (20,941) | (39,066) | (60,007) |
| Other<br>changes in shareholders' equity | - | - | - | - | - | - | - | (119) | - | (119) | (89) | (208) |
| Incorporation<br>by business combination | - | - | - | - | - | - | - | - | - | - | 88 | 88 |
| Balance as of March 31, 2023 | 573 | 20 | 171,694 | 16,005 | 212,632 | 1,552 | 16,446 | 154,269 | 48,676 | 621,867 | 835,250 | 1,457,117 |
(i) Includes ARS 6 of Inflation adjustment of treasury shares as of March 31, 2023. See Note 19 to the Annual Consolidated Financial Statements as of June 30, 2022.
(ii) Group’s other reserves for the period ended March 31, 2023 are comprised as follows:
| Cost of treasury shares | Reserve for currency translation adjustment | Reserve for the acquisition of securities issued by the<br>Company | Special reserve | Other reserves (i) | Total other reserves | |
|---|---|---|---|---|---|---|
| Balance as of June 30, 2022 | (2,463) | 8,355 | 1,654 | - | (3,209) | 4,337 |
| Other<br>comprehensive income for the period | - | 1,174 | - | - | 1,744 | 2,918 |
| Total comprehensive income for the period | - | 1,174 | - | - | 1,744 | 2,918 |
| Assignment<br>of results - Shareholders’ meeting | - | - | - | 144,109 | - | 144,109 |
| Repurchase<br>of treasury shares | (19,432) | - | - | - | - | (19,432) |
| Reserve<br>for share-based payments | - | - | - | - | 303 | 303 |
| Changes<br>in non-controlling interest | - | - | - | - | 22,153 | 22,153 |
| Other changes in<br>shareholders' equity | - | 151 | - | - | (270) | (119) |
| Balance<br>as of March 31, 2023 | (21,895) | 9,680 | 1,654 | 144,109 | 20,721 | 154,269 |
(i) Includes revaluation surplus.
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 |
5
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Consolidated Statement of Cash Flows
for the nine-month periods ended March 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 | 03.31.2024 | 03.31.2023 | |
|---|---|---|---|
| Operating activities: | |||
| Net<br>cash generated from operating activities before income tax<br>paid | 17 | 66,559 | 32,887 |
| Income<br>tax paid | (5,863) | (7,746) | |
| Net cash generated from operating activities | 60,696 | 25,141 | |
| Investing activities: | |||
| Proceeds from the<br>sale of participation in joint ventures | 19,929 | - | |
| Capital<br>contributions to associates and joint ventures | - | (78) | |
| Proceeds<br>from sales of intangible assets | 8 | - | |
| Acquisition<br>and improvement of investment properties | (7,399) | (8,134) | |
| Proceeds<br>from sales of investment properties | 30,150 | 70,868 | |
| Acquisitions<br>and improvements of property, plant and equipment | (19,889) | (39,916) | |
| Payment<br>of acquisitions of property, plant and equipment | (33,328) | - | |
| Acquisition<br>of intangible assets | (1,354) | (768) | |
| Proceeds<br>from sales of property, plant and equipment | 45,776 | 35,688 | |
| Dividends<br>collected from associates and joint ventures | 496 | 1,738 | |
| Proceeds<br>from loans granted | 1,251 | 1,396 | |
| Acquisitions<br>of investments in financial assets | (272,425) | (89,163) | |
| Proceeds<br>from disposal of investments in financial assets | 322,572 | 96,490 | |
| Interest<br>received from financial assets | 10,714 | 361 | |
| Payments<br>of derivative financial instruments | (1,147) | 1,804 | |
| Prepayment<br>for investment properties purchases | - | (6,555) | |
| Net cash generated from investing activities | 95,354 | 63,731 | |
| Financing activities: | |||
| Borrowings,<br>issuance and new placement of non-convertible notes | 214,653 | 228,738 | |
| Payment<br>of borrowings and non-convertible notes | (181,504) | (321,179) | |
| Obtaining<br>of short term loans, net | 4,230 | 32,320 | |
| Interest<br>paid | (84,124) | (83,097) | |
| Capital<br>contributions from non-controlling interest in<br>subsidiaries | 5,851 | - | |
| Lease<br>liabilities paid | (1,440) | (1,183) | |
| Repurchase<br>of treasury shares | (8,776) | (21,077) | |
| Dividends<br>paid | (143,840) | (45,001) | |
| Exercise<br>of warrants | 4,837 | 1,565 | |
| Repurchase<br>of non-convertible notes | (4,236) | - | |
| Net cash used in financing activities | (194,349) | (208,914) | |
| Net decrease in cash and cash equivalents | (38,299) | (120,042) | |
| Cash<br>and cash equivalents at the beginning of the period | 15 | 122,008 | 235,832 |
| Foreign<br>exchange gain on cash and unrealized fair value result for cash<br>equivalents | 31,841 | 10,744 | |
| Inflation<br>adjustment | (11,897) | (7,811) | |
| Cash and cash equivalents at the end of the period | 15 | 103,653 | 118,723 |
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 May 9, 2024.
As of March 31, 2024, the Group operates in two major business lines: (i) agricultural business and (ii) urban property and investment business.
Economic context in which the Group operated
The Group operated in an economic context characterized by strong fluctuations in its main variables. The most relevant aspects are detailed below:
●
Economic Activity: At the end of 2023, the country experienced a 1.6% drop in its economic activity, according to INDEC data, a trend that continued during the first quarter of the 2024 calendar.
●
Inflation: Between April 1, 2023, and March 31, 2024, accumulated inflation reached 288% (measured by the CPI).
●
Exchange Rate: In that same period, according to the official exchange rate, the Argentine peso nominally depreciated against the US dollar, going from ARS 209.1 to ARS 855 per dollar at the end of the period. The MEP dollar behaved in the same way, going from ARS 397.34 to ARS 1,017.50.
●
Fiscal Surplus: During the first quarter of 2024, Argentina achieved a fiscal surplus, because of the strong adjustment applied by the government to order the accounts of the public sector and lower inflation.
●
Exchange Restrictions: The monetary authority maintained the exchange restrictions established in previous years throughout 2023 and the first quarter of 2024. Despite these restrictions, the company managed to meet all financial and contractual maturities.
On December 10, 2023 a new government took office in Argentina with the intention of carrying out a broad legal and regulatory reform.
Among the first measures adopted by this government is a Decree of Necessity and Urgency (DNU) that modifies various laws. These reforms affect areas such as the labor market, the customs code, and the status of public companies. Although the DNU was rejected by the Senate of the Nation’s Congress, its provisions have been partially in force since December 29, 2023, due to judicial actions that suspended certain modifications.
The reforms proposed by the new government are in the process of legislative discussion, and it is not possible to predict at this time their evolution or the new measures that could be announced.
The normative and regulatory situation as of March 31, 2024, does not differ substantially from the one mentioned above, and the financial statements of the Group should be read considering these circumstances.
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, 2023 prepared in accordance with IFRS Accounting Standards. 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 for the interim periods of nine months ended March 31, 2024 and 2023 have not been audited. Management considers that they include all the necessary adjustments to fairly present the results of each period. Intermediate 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.
The table below presents the index for the period between the last fiscal year and as of March 31, 2024, and for the twelve month period ending on the same date, according to official statistics (INDEC) and following the guidelines described in Resolution 539/18.
| As of<br>March 31, 2024 (nine months) | As of<br>March 31, 2024 (twelve months) | |
|---|---|---|
| Price<br>variation | 213% | 288% |
As a consequence of the aforementioned, these financial statements as of March 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, 2023 and March 31, 2023 presented in these Financial Statements for comparative purposes arise from the financial statements as of and for such period, restated in accordance with IAS 29 (See Note 2.1). Certain items from prior periods have been reclassified for consistency purposes.
7
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
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 ranging between July and December, compared to the period between January and June.
4.
Acquisitions and disposals
Significant acquisitions and disposals for the nine-month period ended March 31, 2024 are detailed below. Significant acquisitions and disposals for the fiscal year ended June 30, 2023, are detailed in Note 4 to the Annual Financial Statements.
Agricultural business
Sale of fraction of “Los Pozos” farm
On October 5, 2023, Cresud signed a transfer deed of ownership for the sale of a fraction of field land known as Registration 5,421 of the establishment called “Los Pozos” located in the province of Salta, with a total area of 4,262 hectares. The total price was USD 2.3 million, of which USD 1.4 remains to be received, which will be paid in two installments, the last of which is dated September 23, 2025, with a mortgage guarantee for said balance.
Sale of fraction of “El Tigre” farm
On December 14, 2023, Cresud signed a transfer deed of ownership for the sale of a fraction of 500 hectares of agricultural activity from its “El Tigre” farm, located in the department of Trenel, province of La Pampa, Argentina. The total price was USD 3.8 million, of which USD 0.9 remains to be received, which will be paid in two installments, the last of which is dated December 12, 2025, with a mortgage guarantee for said balance. After this transaction, the Company keeps the ownership of approximately 7,860 hectares of “El Tigre” farm.
8
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Sale of fraction of “Chaparral” farm
On March 26, 2024, BrasilAgro sold a fraction of 12,335 hectares (8,796 productive hectares) of the “Chaparral” farm located in Correntina, State of Bahia, Brazil, that was acquired in 2007. After this operation, a remaining surface of 24,847 hectares of this farm is still owned by BrasilAgro. The total amount of the operation was set at BRL 364.5 million, subject to variations in the soybean bag price, and the portion of the farm that was sold was valued on the books at BRL 34.0 million. The result of the sale will be recorded in the fourth quarter of the fiscal year.
Urban property business and investments
“Maple Building" sale
On July 24, 2023, IRSA signed the deed for the sale of all the functional and complementary units of the “Maple Building” located at 664 Suipacha Street in the Autonomous City of Buenos Aires. The price of the operation was USD 6.75 million, of which USD 3 million has been collected in cash, USD 750,000 through the delivery of 3 functional units in a building owned by the buyer at Avenida Córdoba 637 in the Autonomous City of Buenos Aires, with a bailment agreement for 30 months and the remaining balance of USD 3 million will be paid as follows:
USD 2.5 million in 10 semiannual, equal and consecutive installments of USD 0.25 million, the first due 24 months from the signing of the deed, with an annual interest of 5%;
USD 0.5 million through the provision of services by the buyer, which were valued at the CCL exchange rate according to the conditions agreed in the contract.
“261 Della Paolera” floor sale
On August 9, 2023, IRSA signed the deed for the sale of the 9th floor of the "261 Della Paolera" tower located in the Catalinas neighborhood of the Autonomous City of Buenos Aires with a total of 1,184 square meters, 10 parking spaces, and 2 complementary units of the same building. The transaction price was approximate USD (MEP) 6.3 million, which had already been paid in ARS.
On October 5, 2023, the transfer deed was signed for the sale of the 25th and 26th floors of the “261 Della Paolera” tower located in the Catalinas neighborhood of the Autonomous City of Buenos Aires for a total of 2,395 square meters, 18 units of garages and 6 complementary units of the same building. The transaction price was approximately USD (MEP) 14.9 million, all of which were paid in full in ARS.
After this transaction, IRSA keeps the property of 4 floors of the building with an approximate leasable area of 4,937 square meters, in addition to parking spaces and other complementary spaces.
Vista al Muelle – Boating Trust transaction
On October 31, 2023, Vista al Muelle S.A. (VAM), a subsidiary of Liveck L.T.D., sold two of its plots in the department of Canelones (Uruguay) to the Boating Trust for USD 6 million. In the same transaction, the trust sold units in Tower II to VAM for USD 5 million, which VAM used to fully settle its debt with the Chamyan family. The operation resulted in a profit of USD 1 million.
Sale of Quality Investment S.A.
On August 31, 2023, IRSA sold and transferred 100% of its participation in Quality Invest S.A. representing 50% of the share capital. The amount of the transaction amounted to USD 22.9 million, of which USD 21.5 million has been collected together with the transfer of the shares and the balance of USD 1.4 million will be collected after 3 years, accruing an interest of 7% per year.
9
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Ezpeleta land plot Barter Agreement
On December 7, 2023, IRSA signed a barter agreement transferring the “Ezpeleta land plot” of 46 hectares, located in the district of Quilmes, Buenos Aires province.
The real estate project to be developed on the property consists of a gated community with 330 single-family lots and 6 macro lots for medium-density developments.
The transaction price was set at USD 16.4 million and will be paid to IRSA through the delivery of 125 single-family lots of the project and also 40% of the buildable square meters of the multifamily lots of said project.
Additionally, IRSA received the sum of ARS 62.3 million in cash as part of the consideration.
The amounts are expressed in the currency of the transaction date.
Sale of GCDI common-shares
During the months of November and December 2023, IRSA sold 1,583,560 common-shares of GCDI, equivalent to 0.17% of the capital share, for a total of ARS 25.5 million.
Additionally, during the first quarter of 2024, IRSA sold 5,033,873 common-shares of GCDI, equivalent to 0.55% of the capital share, for a total of ARS 165 million.
The amounts are expressed in the currency of the transaction date.
Del Plata Building Trust
On November 10, 2023, IRSA executed a Trust Administration Contract at cost for a project development and construction of a residential building, stores (gastronomic use), and complementary parking spaces, which is subject to fulfillment of certain suspensive conditions detailed below, and in which the Company will have the character of money trustor. Likewise, and as beneficiary of the trust, IRSA will receive approximately 5,128 salable square meters and 32 parking spaces. TMF Trust Company (Argentina) S.A., a company with a fiduciary purpose that is not a related party, will act as trustee.
The aforementioned trust contract involves the contribution of a building owned by Banco Hipotecario S.A. (“BHSA”), an entity in which the Company holds a significant interest. The building is located in the block embraced by the streets Carlos Pellegrini, Presidente Perón, Sarmiento and Pasaje Carabelas, in the City of Buenos Aires. The contribution was made on December 28, 2023.
Finally, it is informed that the trust underlying project has pre-approval for the Microcentro district reconversion regime issued by the Government of the City of Buenos Aires (Law 6508). Likewise, it has approval from the Central Bank of the Argentine Republic.
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.
Since June 30, 2023 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).
10
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 business units 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 periods ended March 31, 2024 and 2023:
11
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 March 31, 2024:
| 03.31.2024 | |||||||
|---|---|---|---|---|---|---|---|
| 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 | 238,561 | 177,236 | 415,797 | (935) | 37,262 | (1,311) | 450,813 |
| Costs | (184,422) | (31,238) | (215,660) | 112 | (38,092) | - | (253,640) |
| Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest | 5,295 | - | 5,295 | - | - | 491 | 5,786 |
| Changes in the net<br>realizable value of agricultural products after<br>harvest | 3,047 | - | 3,047 | - | - | - | 3,047 |
| Gross profit / (loss) | 62,481 | 145,998 | 208,479 | (823) | (830) | (820) | 206,006 |
| Net loss from fair<br>value adjustment of investment properties | (44) | (377,736) | (377,780) | 62 | - | - | (377,718) |
| Gain from disposal<br>of farmlands | 6,254 | - | 6,254 | - | - | - | 6,254 |
| General and<br>administrative expenses | (20,459) | (20,744) | (41,203) | 112 | - | 226 | (40,865) |
| Selling<br>expenses | (25,123) | (11,961) | (37,084) | 95 | - | 692 | (36,297) |
| Other operating<br>results, net | 14,132 | (4,052) | 10,080 | (15) | 313 | (98) | 10,280 |
| Management<br>fees | - | - | - | - | (884) | - | (884) |
| Profit / (loss) from operations | 37,241 | (268,495) | (231,254) | (569) | (1,401) | - | (233,224) |
| Share of profit /<br>(loss) of associates and joint ventures | 1,106 | 28,272 | 29,378 | 302 | - | - | 29,680 |
| Segment profit / (loss) | 38,347 | (240,223) | (201,876) | (267) | (1,401) | - | (203,544) |
| Reportable<br>assets | 726,619 | 1,559,427 | 2,286,046 | 4,311 | - | 695,567 | 2,985,924 |
| Reportable<br>liabilities (*) | - | - | - | - | - | (1,651,441) | (1,651,441) |
| Net<br>reportable assets | 726,619 | 1,559,427 | 2,286,046 | 4,311 | - | (955,874) | 1,334,483 |
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 March 31, 2023:
| 03.31.2023 | |||||||
|---|---|---|---|---|---|---|---|
| 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 | 221,656 | 168,834 | 390,490 | (977) | 41,113 | (2,094) | 428,532 |
| Costs | (182,803) | (30,277) | (213,080) | 462 | (41,864) | - | (254,482) |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | (3,270) | - | (3,270) | - | - | 672 | (2,598) |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | (1,598) | - | (1,598) | - | - | - | (1,598) |
| Gross profit / (loss) | 33,985 | 138,557 | 172,542 | (515) | (751) | (1,422) | 169,854 |
| Net<br>loss from fair value adjustment of investment<br>properties | (287) | (138,044) | (138,331) | 3,392 | - | - | (134,939) |
| Gain<br>from disposal of farmlands | 2,670 | - | 2,670 | - | - | - | 2,670 |
| General<br>and administrative expenses | (18,525) | (29,354) | (47,879) | 144 | - | 414 | (47,321) |
| Selling<br>expenses | (21,080) | (11,376) | (32,456) | 60 | - | 1,126 | (31,270) |
| Other<br>operating results, net | (1,621) | (18,664) | (20,285) | (74) | 382 | (94) | (20,071) |
| Management<br>fees | - | - | - | - | (9,048) | - | (9,048) |
| (Loss) / profit from operations | (4,858) | (58,881) | (63,739) | 3,007 | (9,417) | 24 | (70,125) |
| Share<br>of (loss) / profit of associates and joint ventures | (3,165) | 7,466 | 4,301 | (2,114) | - | (9) | 2,178 |
| Segment (loss) / profit | (8,023) | (51,415) | (59,438) | 893 | (9,417) | 15 | (67,947) |
| Reportable<br>assets | 693,340 | 1,995,222 | 2,688,562 | (12,098) | - | 611,556 | 3,288,020 |
| Reportable<br>liabilities (*) | - | - | - | - | - | (1,830,903) | (1,830,903) |
| Net reportable assets | 693,340 | 1,995,222 | 2,688,562 | (12,098) | - | (1,219,347) | 1,457,117 |
(i)
Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(ii)
Includes ARS (830) and ARS (751) corresponding to Expenses and FPC as of March 31, 2024 and 2023, respectively, and ARS 884 and ARS 9,048 to management fees, as of March 31, 2024 and 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:
| 03.31.2024 | |||||
|---|---|---|---|---|---|
| Agricultural<br>production | Land<br>transformation and sales | Corporate | Others | Total<br>Agricultural business | |
| Revenues | 163,884 | - | - | 74,677 | 238,561 |
| Costs | (138,555) | (146) | - | (45,721) | (184,422) |
| Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest | 5,295 | - | - | - | 5,295 |
| Changes in the net<br>realizable value of agricultural products after<br>harvest | 3,047 | - | - | - | 3,047 |
| Gross<br>profit / (loss) | 33,671 | (146) | - | 28,956 | 62,481 |
| Net loss from fair<br>value adjustment of investment properties | - | (44) | - | - | (44) |
| Gain<br>from disposal of farmlands | - | 6,254 | - | - | 6,254 |
| General and<br>administrative expenses | (11,959) | (37) | (2,665) | (5,798) | (20,459) |
| Selling<br>expenses | (17,164) | (82) | - | (7,877) | (25,123) |
| Other operating<br>results, net | 6,373 | 3,876 | - | 3,883 | 14,132 |
| Profit<br>/ (loss) from operations | 10,921 | 9,821 | (2,665) | 19,164 | 37,241 |
| Share of profit /<br>(loss) of associates and joint ventures | 2,783 | - | - | (1,677) | 1,106 |
| Segment<br>profit / (loss) | 13,704 | 9,821 | (2,665) | 17,487 | 38,347 |
| Investment<br>properties | - | 69,468 | - | - | 69,468 |
| Property, plant and<br>equipment | 430,554 | 1,067 | - | 3,035 | 434,656 |
| Investments in<br>associates | 7,901 | - | - | 1,567 | 9,468 |
| Other reportable<br>assets | 165,431 | 6,075 | - | 41,521 | 213,027 |
| Reportable<br>assets | 603,886 | 76,610 | - | 46,123 | 726,619 |
| 03.31.2023 | |||||
| --- | --- | --- | --- | --- | --- |
| Agricultural<br>production | Land<br>transformation and sales | Corporate | Others | Total<br>Agricultural business | |
| Revenues | 154,512 | - | - | 67,144 | 221,656 |
| Costs | (140,094) | (202) | - | (42,507) | (182,803) |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | (3,270) | - | - | - | (3,270) |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | (1,598) | - | - | - | (1,598) |
| Gross<br>profit / (loss) | 9,550 | (202) | - | 24,637 | 33,985 |
| Net loss from fair<br>value adjustment of investment properties | - | (287) | - | - | (287) |
| Gain<br>from disposal of farmlands | - | 2,670 | - | - | 2,670 |
| General<br>and administrative expenses | (9,732) | (31) | (3,343) | (5,419) | (18,525) |
| Selling<br>expenses | (15,022) | (19) | - | (6,039) | (21,080) |
| Other<br>operating results, net | 361 | (3,444) | - | 1,462 | (1,621) |
| (Loss)<br>/ profit from operations | (14,843) | (1,313) | (3,343) | 14,641 | (4,858) |
| Share of loss of<br>associates and joint ventures | (803) | - | - | (2,362) | (3,165) |
| Segment<br>(loss) / profit | (15,646) | (1,313) | (3,343) | 12,279 | (8,023) |
| Investment<br>properties | - | 96,005 | - | - | 96,005 |
| Property,<br>plant and equipment | 365,505 | 1,862 | - | 3,184 | 370,551 |
| Investments<br>in associates | 5,206 | - | - | 3,223 | 8,429 |
| Other<br>reportable assets | 165,399 | 9,798 | - | 43,158 | 218,355 |
| Reportable assets | 536,110 | 107,665 | - | 49,565 | 693,340 |
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
14
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:
| 03.31.2024 | ||||||
|---|---|---|---|---|---|---|
| Shopping Malls | Offices | Sales and developments | Hotels | Others | Total | |
| Revenues | 113,210 | 10,766 | 7,370 | 43,607 | 2,283 | 177,236 |
| Costs | (6,497) | (580) | (4,158) | (18,205) | (1,798) | (31,238) |
| Gross profit | 106,713 | 10,186 | 3,212 | 25,402 | 485 | 145,998 |
| Net loss from fair<br>value adjustment of investment properties (i) | (13,282) | (113,238) | (251,179) | - | (37) | (377,736) |
| General<br>and administrative expenses | (14,292) | (1,354) | (5,658) | (6,056) | 6,616 | (20,744) |
| Selling<br>expenses | (5,837) | (288) | (2,542) | (2,866) | (428) | (11,961) |
| Other<br>operating results, net | (1,279) | (103) | (3,107) | (834) | 1,271 | (4,052) |
| Profit / (Loss) from operations | 72,023 | (104,797) | (259,274) | 15,646 | 7,907 | (268,495) |
| Share of profit of<br>associates and joint ventures | - | - | - | - | 28,272 | 28,272 |
| Segment profit / (loss) | 72,023 | (104,797) | (259,274) | 15,646 | 36,179 | (240,223) |
| Investment<br>and trading properties | 572,683 | 227,432 | 572,191 | - | 2,263 | 1,374,569 |
| Property,<br>plant and equipment | 1,819 | 289 | (16,012) | 28,642 | 2,583 | 17,321 |
| Investment<br>in associates and joint ventures | - | - | - | - | 117,922 | 117,922 |
| Other<br>reportable assets | 898 | 708 | 45,620 | 574 | 1,815 | 49,615 |
| Reportable assets | 575,400 | 228,429 | 601,799 | 29,216 | 124,583 | 1,559,427 |
(i)
For the nine-month period ended March 31, 2024, the net loss from fair value adjustment of investment properties was ARS 377,736. 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 and other rental properties measured in real terms decreased by 36.11% during the nine-month period ended as of March 31, 2024, due to the variation of the implicit exchange rate which was well below inflation. Likewise, there is an impact for the sales of the period.
Level 3:
(b)
loss of ARS 26,001 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.
(c)
positive impact of ARS 387,521 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.
(d)
a decrease of 2 basis points in the discount rate used for cash flows and a decrease of 24 basis points in the discount rate used for perpetuity, mainly due to a decrease in the country-risk rate component and risk-free rate 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 17,260.
Additionally, due to the impact of the inflation adjustment, ARS 1,216,125 were reclassified for shopping malls from “Net gain from fair value adjustment” to “Inflation Adjustment” in the Statement of Income and Other Comprehensive Income.
| 03.31.2023 | ||||||
|---|---|---|---|---|---|---|
| Shopping Malls | Offices | Sales and developments | Hotels | Others | Total | |
| Revenues | 108,886 | 11,279 | 10,666 | 35,874 | 2,129 | 168,834 |
| Costs | (7,513) | (935) | (2,901) | (17,202) | (1,726) | (30,277) |
| Gross profit | 101,373 | 10,344 | 7,765 | 18,672 | 403 | 138,557 |
| Net loss from fair<br>value adjustment of investment properties | (40,796) | (18,307) | (78,611) | - | (330) | (138,044) |
| General<br>and administrative expenses | (14,297) | (1,854) | (5,283) | (5,434) | (2,486) | (29,354) |
| Selling<br>expenses | (5,240) | (221) | (3,297) | (2,370) | (248) | (11,376) |
| Other<br>operating results, net | (927) | (151) | (2,219) | (442) | (14,925) | (18,664) |
| Profit / (Loss) from operations | 40,113 | (10,189) | (81,645) | 10,426 | (17,586) | (58,881) |
| Share of profit of<br>associates and joint ventures | - | - | - | - | 7,466 | 7,466 |
| Segment profit / (loss) | 40,113 | (10,189) | (81,645) | 10,426 | (10,120) | (51,415) |
| Investment<br>and trading properties | 580,768 | 378,052 | 861,496 | - | 2,541 | 1,822,857 |
| Property,<br>plant and equipment | 1,482 | 11,178 | 16,089 | 29,172 | 2,769 | 60,690 |
| Investment<br>in associates and joint ventures | - | - | - | - | 85,238 | 85,238 |
| Other<br>reportable assets | 1,253 | 1,074 | 21,728 | 524 | 1,858 | 26,437 |
| Reportable assets | 583,503 | 390,304 | 899,313 | 29,696 | 92,406 | 1,995,222 |
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 nine-month period ended March 31, 2024 and for the year ended June 30, 2023 were as follows:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Beginning of the period/ year | 124,336 | 120,985 |
| Share<br>capital increase and contributions (Note 27) | - | 171 |
| Sale<br>of interest in joint ventures (Note 27) | (22,022) | - |
| Share<br>of profit | 29,680 | 4,944 |
| Other<br>comprehensive income | 404 | 158 |
| Dividends<br>(Note 27) | (498) | (1,999) |
| Others | - | 77 |
| End of the period/ year (i) | 131,900 | 124,336 |
(i)
As of March 31, 2024 includes ARS (11) and as of June 30, 2023 includes ARS (3) reflecting interests in companies with negative equity, which were disclosed in “Provisions” (see Note 19).
Below is additional information about the Group’s 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 | 03.31.2024 | 06.30.2023 | 03.31.2024 | 06.30.2023 | 03.31.2024 | 03.31.2023 |
| New<br>Lipstick | 49.96% | 49.96% | 1,011 | 761 | 74 | (23) |
| BHSA | 29.91% | 29.91% | 98,118 | 74,947 | 23,171 | 5,667 |
| GCDI<br>(2) | 27.39% | 27.82% | 2,644 | 6,001 | (3,230) | (582) |
| Quality<br>(1) | - | 50.00% | - | 21,896 | - | (2,552) |
| La<br>Rural S.A. | 50.00% | 50.00% | 10,272 | 3,804 | 6,467 | 2,432 |
| Other<br>associates and joint ventures | N/A | N/A | 19,855 | 16,927 | 3,602 | (2,764) |
| Total associates and joint ventures | 131,900 | 124,336 | 30,084 | 2,178 | ||
| 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 | (*) (2) | (*) (46) |
| BHSA | Argentina | Financing | 448,689,072 | (**) 1,500 | (**) 77,461 | (**) 320,860 |
| GCDI<br>(2) | Argentina | Real<br>estate | 250,713,162 | 915 | (10,557) | 9,653 |
| La<br>Rural S.A. | Argentina | Organization of<br>events | 715 | 1 | 13,077 | 20,000 |
(*) Amounts expressed in dollars under USGAAP.
(**)
Information as of March 31, 2024 according to NIIF.
(1)
The interest held in Quality S.A. was sold on August 31, 2023. See Note 4 to these financial statements.
(2)
See Note 8 to the annual consolidated financial statements as of June 30, 2023.
Arcos del Gourmet S.A. (“Arcos” or “AGSA”)
ARCOS DEL GOURMET SA AND ANOTHER V. EN-AABE KNOWLEDGE PROCESS (CAF 030002/2015)
(i): This process was initiated on June 18, 2015, by AGSA to raise the nullity of the revocation of the contract for the readjustment of the use and exploitation concession, established by Resolution No. 170/2014 by the Agencia de Administración de Bienes del Estado (State Assets Administration Office, or AABE in Spanish). Evidence was produced, and arguments were presented.
On August 24, 2022, the Court rejected the lawsuit filed by Arcos del Gourmet SA, with costs. On August 26, 2022, Arcos del Gourmet S.A. appealed the final judgment issued in the case. On September 19, 2023, Chamber V of the Federal Administrative Litigation Court issued a judgment rejecting the appeal filed by Arcos del Gourmet SA.
The judgment of the Court was appealed to the Supreme Court of Justice of the Nation through an extraordinary federal appeal filed on October 17, 2023. The federal extraordinary appeal was denied by the Chamber on March 14, 2024. AGSA filed an appeal in fact within the terms of articles 282 and 285 CPCCN before the Supreme Court of Justice of the Nation. The legal advisors of the Company believe that this appeal has reasonable prospects of success, as there is federal subject matter to enable the intervention of the Supreme Court.
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
(i.a.) INCIDENT NO. 1 - PLAINTIFF: ARCOS DEL GOURMET SA DEFENDANT: EN-AABE AND OTHERS REGARDING A PRECAUTIONARY MEASURE (CAF 030002/2015/1)
On March 1, 2019, a request was made for the issuance of a precautionary measure aimed at "ordering AABE to suspend any judicial or administrative eviction procedure, by which it intends to forcibly execute Resolution AABE No. 170/2014, until a final judgment is issued in the nullity lawsuit brought on its basis", particularly the case titled "Playas Ferroviarias de Buenos Aires SA v. Arcos del Gourmet SA regarding Eviction Law 17,901" (File No. CAF 47454/2018). On May 6, 2021, an extension of the precautionary measure was granted. Against this resolution, Playas Ferroviarias and AABE filed an appeal. On September 7, 2021, the Chamber ruled in favor of the appeals filed by AABE and Playas Ferroviarias. Against this resolution, AGSA filed an extraordinary federal appeal on September 21, 2021. On November 17, 2021, the Chamber issued a judgment denying the extraordinary appeal filed by AGSA with costs, arguing that the attempted appeal was not directed at a final judgment or equivalent resolution.
ARCOS DEL GOURMET SA V. ADMINISTRACION DE INFRAESTRUCTURAS FERROVIARIAS SOC DEL ESTADO (ADIF) CONSIGNMENT LAWSUIT (CCF 001461/2015)
On April 8, 2015, AGSA initiated this lawsuit since AGSA was not allowed to pay the March 2015 canon corresponding to the Readjustment Contract of Use and Exploitation that Arcos agreed with ADIF. To date, all the canons that have been accrued to date have been judicially deposited - and those amounts invested in fixed-term deposits. On November 17, 2017, ADIF answered the lawsuit. The trial opened for evidence on March 21, 2019, which was produced, and arguments were presented in December 2022. Subsequently, at the time of requesting the issuance of a judgment, the court - as a measure to better provide - ordered the issuance of various letters rogatory to courts where issues related to the concession contract are being litigated, which were responded. Since these issues are still unresolved, the issuance of the final judgment was deferred.
PLAYAS FERROVIARIAS DE BUENOS AIRES SA V. ARCOS DEL GOURMET SA EVICTION LAW 17.091 (CAF 047454/2018)
On June 14, 2018, Playas Ferroviarias de Buenos Aires S.A. initiated an eviction process against AGSA. On February 13, 2019, it was decided to accumulate the eviction process with the nullity action promoted by AGSA (referred to in the preceding 1.A). On May 11, 2022, the Court ruled to decree the immediate eviction of AGSA and/or occupants and/or intruders of the properties. At the same time, it ordered Playas Ferroviarias de Buenos Aires S.A. to make arrangements to ensure the continuity of the commercial activities of the sub-lessees and the employment sources they employ and, for at least 6 months, the values agreed upon with the current concessionaire must be maintained. The next day, AGSA appealed. Finally, on July 13, 2022, the Prosecutor published the opinion. As a result of the opinion, Chamber V ordered the transfer of the case to judgment. Chamber V issued its judgment on September 19, 2023, rejecting the appeal filed by AGSA and confirming the judgment of the lower court. Against this judgment, AGSA filed an extraordinary federal appeal. The federal extraordinary appeal was denied by the Chamber on March 14, 2024. AGSA lodged a factual appeal under the terms of articles 282 and 285 of the CPCCN to the Supreme Court of Justice of the Nation. The legal advisors of the Company believe that this appeal has reasonable prospects of success, as there is federal subject matter to enable the intervention of the Supreme Court.
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
FEDERACION DE COMERCIO E INDUSTRIA DE LA CIUDAD DE BUENOS AIRES (FECOBA) and others V. GCBA and others on protective petition (CAYT 68795/2013-0)
Federación de Comercio e Industria de la Ciudad de Buenos Aires (Federation of Commerce and Industry of the City of Buenos Aires, or FECOBA in Spanish) argued that the project executed in DISTRICT ARCOS did not have the necessary environmental approvals and did not comply with zoning guidelines. It also requested a precautionary measure, which was admitted and caused the opening to the public to be delayed until December 18, 2014, which now operates normally. In the main process, after the filing of several procedural appeals, Chamber III of the Appeals Court issued a judgment on February 14, 2019, as follows: AGSA and GCBA were convicted, with AGSA being required to allocate at least 23,319.41 square meters for public use and utility with unrestricted access and special and preferential allocation to the generation of new park-like green spaces - located wholly or partially on the property subject to the lawsuit (Distrito Arcos) or adjacent lands. In case the company cannot allocate the entire land fraction to the City of Buenos Aires, then it must pay, after a valuation, the necessary amount of money so that the Administration proceeds to search for a property to fulfill the purpose established during the term of the concession contract. If none of the mentioned alternatives are carried out by AGSA, the demolition of the necessary works on the property to comply with the stipulated in the Urban Planning Code (art. 3.1.2) would be ordered. Subsequently, within the framework of the appeal for constitutional review denied filed by AGSA against the aforementioned judgment, the Superior Court of Justice ruled that the demolition of the works carried out on the property where the "Distrito Arcos" Shopping Center is currently located, as ordered by the Chamber, is not appropriate, confirming the rest of the sentence. Our legal advisors are analyzing the procedural steps to follow.
8.
Investment properties
Changes in the Group’s investment properties for the nine-month period ended March 31, 2024 and for the year ended June 30, 2023 were as follows:
| 03.31.2024 | 06.30.2023 | |||
|---|---|---|---|---|
| Level 2 | Level 3 | Level 2 | Level 3 | |
| Fair value at the beginning of the period/ year | 1,282,901 | 554,331 | 1,470,539 | 572,410 |
| Additions | 3,108 | 4,827 | 10,395 | 8,495 |
| Disposals | (33,327) | - | (81,339) | - |
| Transfers | (37,955) | (6) | 10,189 | 2,764 |
| Net<br>loss from fair value adjustment | (374,317) | (3,401) | (132,488) | (29,445) |
| Additions<br>of capitalized leasing costs | 6 | 58 | 42 | 160 |
| Amortization<br>of capitalized leasing costs (i) | (95) | (105) | (57) | (53) |
| Currency<br>translation adjustment | 2,137 | - | 5,620 | - |
| Fair value at the end of the period/ year | 842,458 | 555,704 | 1,282,901 | 554,331 |
(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 March 31, 2024 and June 30, 2023:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Leased<br>out farmland | 69,468 | 82,278 |
| Offices<br>and other rental properties | 237,603 | 383,884 |
| Shopping<br>malls (i) | 572,679 | 581,468 |
| Undeveloped<br>parcels of land | 516,531 | 787,725 |
| Properties<br>under development | 1,881 | 1,877 |
| Total | 1,398,162 | 1,837,232 |
(i)
Includes parking spaces.
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
The following amounts have been recognized in the Statement of Income and Other Comprehensive Income:
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Revenues | 172,080 | 167,742 |
| Direct<br>operating expenses | (51,700) | (54,639) |
| Development<br>expenses | (850) | (589) |
| Net<br>unrealized loss from fair value adjustment of investment property<br>(i) | (399,278) | (172,822) |
| Net<br>realized gain from fair value adjustment of investment property<br>(ii) | 21,560 | 37,883 |
(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".
(ii)
As of March 31, 2024 corresponds (ARS 14,092) to the realized result from fair value adjustment for the period ((ARS 15,409) for the Ezpeleta land plot barter agreement, ARS 6,238 for the sale of floors in the “261 Della Paolera” building, (ARS 4,862) for the sale of Maple Building, (ARS 51) for the sale of parking spaces located at 1020 Madero Avenue and (ARS 8) for the sale of parking spaces in Libertador 498) and ARS 35,652 for realized result from fair value adjustment made in previous years (ARS 16,776 for the Ezpeleta land plot barter agreement, ARS 12,521 for the sale of floors in the “261 Della Paolera” building, ARS 6,031 for the sale of Maple Building, ARS 153 for the sale of parking spaces located at 1020 Madero Avenue and ARS 171 for the sale of parking spaces in Libertador 498). As of March 31, 2023, ARS 1,396 corresponds to the result for changes in the fair value realized for the period ((ARS 182) for the sale of parking spaces in Libertador 498 and ARS 1,578 for the sale of floors in the “261 Della Paolera” building) and ARS 36,487 for the result of changes in fair value made in previous years (ARS 454 for the sale of parking spaces in Libertador 498 and ARS 36,033 for the sale of floors in the “261 Della Paolera” building).
Valuation techniques are described in Note 9 to the Annual Financial Statements. There were no changes to such techniques.
Costa Urbana –former Solares de Santa María– Costanera Sur, Buenos Aires City (IRSA)
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 Urbana Urbanization", which enables the combination of diverse uses such as homes, offices, retail, services, public spaces, education, and entertainment.
IRSA will have a construction capacity of approximately 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 and will contribute with three additional lots of the property, two for the Sustainable Urban Development Fund (FODUS) 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.
In March 2023, Mensura was approved with a proposal for subdivision, fractioning, transfer of streets and public space and we are in the process of deeding the 3 plots and the public park sector that is transferred for consideration.
Likewise, the Company 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.
“Costa Urbana” 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.
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
On the judicial front, it should be noted that there are two (2) related judicial processes:
(i)
On October 29, 2021, IRSA was notified of the amparo lawsuit initiated by the Civil Association Observatory of Law in the City in relation to the property, in which it was stated that there were nullities that affected the approval process of the Agreement. Urban Planning (CU). The lawsuit was subsequently expanded, also challenging issues proposed in the CU. IRSA proceeded to answer the claim on November 12, 2021, requesting its rejection, and on March 10, 2022, the court issued a ruling partially granting protection, which was appealed by the Company and the GCBA. On March 6, 2023, the Chamber of Administrative, Tax and Consumer Relations Litigation - Chamber IV decided to revoke the first instance ruling, and consequently reject the claim. Since this ruling was not appealed, the case has concluded favorably for the Company.
(ii)
On October 18, 2023, IRSA was notified of the amparo lawsuit initiated by Messrs. Jonatan Baldiviezo and María Eva Koutsovitis in relation to the property, in which they intend to suspend the holding of the public hearing (which took place in August 2021), extend the registration period for the aforementioned hearing and declare the nullity of the public hearing, in the event that it had already been carried out, based on alleged violations of the right to informed participation in the same and access to environmental information. In this regard, IRSA answered the complaint on November 1, 2023, requesting its rejection. This is based on the fact that the issue was already partially resolved by the trial referred to in point (i), and that all the relevant information for carrying out the approval process of the Urban Planning Agreement was fully provided. The environmental issues of the project must be addressed at the corresponding stage, as established by Law 123. On November 8, 2023, the Public Prosecutor's Office issued an opinion recommending that the action be rejected. On February 26, the Court dismissed the attempted amparo action. Since said sentence was not appealed, the case has concluded favorably for IRSA.
9.
Property, plant and equipment
Changes in the Group’s property, plant and equipment for the nine-month period ended March 31, 2024 and for the year ended June 30, 2023 were as follows:
| Owner<br>occupied farmland | Bearer<br>plant (iii) | Buildings<br>and facilities | Machinery<br>and equipment | Others<br>(i) | 03.31.2024 | 06.30.2023 | |
|---|---|---|---|---|---|---|---|
| Costs | 397,045 | 31,909 | 101,366 | 34,425 | 20,447 | 585,192 | 515,203 |
| Accumulated<br>depreciation | (33,889) | (18,102) | (34,889) | (31,044) | (11,175) | (129,099) | (113,725) |
| Net<br>book amount at the beginning of the period / year | 363,156 | 13,807 | 66,477 | 3,381 | 9,272 | 456,093 | 401,478 |
| Additions | 16,126 | 4,482 | 4,428 | 1,236 | 1,866 | 28,138 | 80,656 |
| Disposals | (929) | - | (10,593) | (6) | (157) | (11,685) | (23,317) |
| Currency<br>translation adjustment | 14,124 | 272 | 347 | (18) | 263 | 14,988 | 20,710 |
| Transfers | 17,162 | (57) | 702 | 8 | (702) | 17,113 | (8,060) |
| Transfers to assets<br>held for sale | (6,196) | - | - | - | - | (6,196) | - |
| Depreciation<br>charges (ii) | (5,435) | (3,401) | (3,194) | (1,066) | (1,213) | (14,309) | (15,374) |
| Balances<br>at the end of the period / year | 398,008 | 15,103 | 58,167 | 3,535 | 9,329 | 484,142 | 456,093 |
| Costs | 437,332 | 36,606 | 96,250 | 35,645 | 21,717 | 627,550 | 585,192 |
| Accumulated<br>depreciation | (39,324) | (21,503) | (38,083) | (32,110) | (12,388) | (143,408) | (129,099) |
| Net<br>book amount at the end of the period / year | 398,008 | 15,103 | 58,167 | 3,535 | 9,329 | 484,142 | 456,093 |
(i)
Includes furniture and fixtures and vehicles.
(ii)
As of March 31, 2024, the depreciation charge has been charged to the line "Costs" for ARS 2,764, "General and administrative expenses" for ARS 1,293 and "Selling expenses" for ARS 223, in the Statement of Income and Other Comprehensive Income (Note 24), ARS 10,029 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
20
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
10.
Trading properties
Changes in the Group’s trading properties for the nine-month period ended March 31, 2024 and for the year ended June 30, 2023 were as follows:
| Completed<br>properties | Properties<br>under development | Undeveloped<br>properties | 03.31.2024 | 06.30.2023 | |
|---|---|---|---|---|---|
| Beginning of the period / year | 1,860 | 10,165 | 7,337 | 19,362 | 21,848 |
| Additions | - | 390 | 48 | 438 | 993 |
| Currency<br>translation adjustment | - | 393 | - | 393 | 47 |
| Transfers | - | - | - | - | (1,354) |
| Disposals | (60) | (2,352) | - | (2,412) | (2,172) |
| End of the period / year | 1,800 | 8,596 | 7,385 | 17,781 | 19,362 |
| Non-current | 17,373 | 18,911 | |||
| Current | 408 | 451 | |||
| Total | 17,781 | 19,362 |
11.
Intangible assets
Changes in the Group’s intangible assets for the nine-month period ended March 31, 2024 and for the year ended June 30, 2023 were as follows:
| Goodwill | Information<br>systems and software | Future<br>units to receive under barter transactions and others | 03.31.2024 | 06.30.2023 | |
|---|---|---|---|---|---|
| Costs | 4,121 | 13,220 | 32,370 | 49,711 | 45,705 |
| Accumulated<br>amortization | - | (11,466) | (7,013) | (18,479) | (16,780) |
| Net<br>book amount at the beginning of the period / year | 4,121 | 1,754 | 25,357 | 31,232 | 28,925 |
| Additions | 10 | 1,186 | 6,816 | 8,012 | 5,143 |
| Disposals | - | - | (200) | (200) | (574) |
| Transfers | - | - | 23,120 | 23,120 | (625) |
| Currency<br>translation adjustment | 15 | 20 | - | 35 | 62 |
| Amortization<br>charges (i) | - | (797) | (154) | (951) | (1,699) |
| Balances<br>at the end of the period / year | 4,146 | 2,163 | 54,939 | 61,248 | 31,232 |
| Costs | 4,146 | 14,426 | 62,106 | 80,678 | 49,711 |
| Accumulated<br>amortization | - | (12,263) | (7,167) | (19,430) | (18,479) |
| Net<br>book amount at the end of the period / year | 4,146 | 2,163 | 54,939 | 61,248 | 31,232 |
(i)
As of March 31, 2024, amortization charge was recognized in the amount of ARS 342 under "Costs" and in the amount of ARS 609 under "General and administrative expenses" in the Statement of Income and Other Comprehensive Income (Note 24).
12.
Right of use assets
The Group’s right-of-use assets as of March 31, 2024 and June 30, 2023 are the following:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Farmland | 49,294 | 47,738 |
| Convention<br>center | 7,410 | 7,765 |
| Offices, shopping<br>malls and other buildings | 4,525 | 2,586 |
| Machinery<br>and equipment | 1,836 | 631 |
| Right-of-use<br>assets | 63,065 | 58,720 |
| Non-current | 63,065 | 58,720 |
| Total | 63,065 | 58,720 |
The depreciation charge of the right of use assets is detailed below:
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Farmland | 6,983 | 10,553 |
| Convention<br>center | 353 | 324 |
| Offices, shopping<br>malls and other buildings | 852 | 383 |
| Machinery and<br>equipment | 479 | 201 |
| Depreciation<br>charge of right-of-use assets (i) | 8,667 | 11,461 |
(i)
As of March 31, 2024, the amortization charge has been allocated ARS 636 within "Costs", ARS 322 in "General and administrative expenses" and ARS 247 in “Selling expenses” in the Statement of Income and Other Comprehensive Income (Note 24), ARS 7,462 were capitalized as part of the cost of biological assets.
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
13.
Biological assets
Changes in the Group’s biological assets and their allocation to the fair value hierarchy for the nine-month period ended March 31, 2024 and for the year ended June 30, 2023 were as follows:
| Agricultural business | ||||||||
|---|---|---|---|---|---|---|---|---|
| Sown land-crops | Sugarcane fields | Breeding cattle and cattle for sale (i) | Other cattle (i) | Others | 03.31.2024 | 06.30.2023 | ||
| 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 | 27,873 | 5,437 | 19,635 | 33,905 | 526 | 358 | 87,734 | 103,233 |
| Purchases | - | - | - | 5,447 | 6 | - | 5,453 | 3,668 |
| Transfers | (1,087) | 1,087 | - | - | - | - | - | - |
| Initial<br>recognition and changes in the fair value of biological<br>assets | - | 12,412 | (3,620) | (2,975) | (191) | - | 5,626 | (4,220) |
| Decrease<br>due to harvest | - | (93,931) | (31,275) | - | - | - | (125,206) | (220,490) |
| Sales | - | - | - | (12,358) | (29) | - | (12,387) | (14,350) |
| Consumes | - | - | - | (56) | (2) | (60) | (118) | (177) |
| Costs<br>for the period / year | 11,663 | 105,106 | 30,499 | 11,772 | - | 8 | 159,048 | 216,656 |
| Currency<br>translation adjustment | 5,736 | (2,038) | 484 | 194 | - | - | 4,376 | 3,414 |
| Balances at the end of the period / year | 44,185 | 28,073 | 15,723 | 35,929 | 310 | 306 | 124,526 | 87,734 |
| Non-current<br>(Production) | - | - | - | 27,240 | 213 | 304 | 27,757 | 29,156 |
| Current<br>(Consumable) | 44,185 | 28,073 | 15,723 | 8,689 | 97 | 2 | 96,769 | 58,578 |
| Net<br>book amount at the end of the period / year | 44,185 | 28,073 | 15,723 | 35,929 | 310 | 306 | 124,526 | 87,734 |
(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 (3,166) and ARS (17,200) for the nine-month period ended March 31, 2024 and for the fiscal year ended June 30, 2023, respectively; amounts of ARS (235) and ARS (10,704), was attributable to price changes, and amounts of ARS (2,931) and ARS (6,496), was attributable to physical changes, respectively.
During the nine-month period ended March 31, 2024, there were transfers for ARS 1,087 between the fair value hierarchies 1 and 3 of sown land-crops. Likewise, 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 117,518 and ARS 212,436 for the nine-month period ended March 31, 2024 and the year ended June 30, 2023, respectively.
See information on valuation processes used by the entity in Note 14 to the Annual Financial Statements.
As of March 31, 2024, and June 30, 2023, the better and maximum use of biological assets shall not significantly differ from the current use.
Capitalized cost of production as of March 31, 2024 and 2023 are as follows:
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Supplies<br>and labors | 121,266 | 149,450 |
| Salaries,<br>social security costs and other personnel expenses | 7,988 | 6,578 |
| Depreciation<br>and amortization | 17,492 | 17,501 |
| Fees<br>and payments for services | 479 | 345 |
| Maintenance,<br>security, cleaning, repairs and others | 1,136 | 1,043 |
| Taxes,<br>rates and contributions | 129 | 221 |
| Leases<br>and service charges | 79 | 54 |
| Freights | 868 | 1,133 |
| Travelling,<br>library expenses and stationery | 854 | 842 |
| Other<br>expenses | 8,757 | 15,141 |
| 159,048 | 192,308 |
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
14.
Inventories
Breakdown of Group’s inventories as of March 31, 2024 and June 30, 2023 are as follows:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Crops | 40,344 | 40,396 |
| Materials and<br>supplies | 40,642 | 46,761 |
| Sugarcane | 1,237 | 633 |
| Agricultural<br>inventories | 82,223 | 87,790 |
| Supplies for<br>hotels | 574 | 626 |
| Total<br>inventories | 82,797 | 88,416 |
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 March 31, 2024 are 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 | |
| March<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) | 227,578 | 38,532 | - | - | 266,110 | 71,415 | 337,525 |
| Investment in<br>financial assets: | |||||||
| - Public<br>companies’ securities | - | 16,150 | - | - | 16,150 | - | 16,150 |
| -<br>Bonds | - | 42,327 | - | - | 42,327 | - | 42,327 |
| - Mutual<br>funds | - | 71,837 | 86 | - | 71,923 | - | 71,923 |
| -<br>Others | 4,753 | 15,589 | - | 332 | 20,674 | - | 20,674 |
| Derivative<br>financial instruments: | |||||||
| - Commodities<br>options contracts | - | 7,280 | - | - | 7,280 | - | 7,280 |
| - Commodities<br>futures contracts | - | 390 | - | - | 390 | - | 390 |
| - Bonds<br>futures contracts | - | 15 | - | - | 15 | - | 15 |
| -<br>Foreign-currency options contracts | - | 694 | - | - | 694 | - | 694 |
| -<br>Foreign-currency future contracts | - | 3,289 | - | - | 3,289 | - | 3,289 |
| -<br>Swaps | - | - | 133 | - | 133 | - | 133 |
| -<br>Others | - | 2,545 | - | - | 2,545 | - | 2,545 |
| Restricted assets<br>(i) | 3,990 | - | - | - | 3,990 | - | 3,990 |
| Cash and cash<br>equivalents (excluding bank overdrafts): | |||||||
| - Cash on<br>hand and at bank | 45,325 | - | - | - | 45,325 | - | 45,325 |
| - Short-term<br>investments | - | 58,328 | - | - | 58,328 | - | 58,328 |
| Total<br>assets | 281,646 | 256,976 | 219 | 332 | 539,173 | 71,415 | 610,588 |
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
| 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 | |||
| March<br>31, 2024 | |||||
| Liabilities<br>as per Statement of Financial Position | |||||
| Trade and other<br>payables (Note 18) | 160,355 | - | 160,355 | 88,339 | 248,694 |
| Borrowings (Note<br>20) | 775,970 | - | 775,970 | - | 775,970 |
| Derivative<br>financial instruments: | |||||
| - Commodities<br>options contracts | - | 2,925 | 2,925 | - | 2,925 |
| - Commodities<br>futures contracts | - | 1,842 | 1,842 | - | 1,842 |
| -<br>Foreign-currency options contracts | - | 767 | 767 | - | 767 |
| -<br>Foreign-currency future contracts | - | 106 | 106 | - | 106 |
| -<br>Swaps | - | 23 | 23 | - | 23 |
| Total<br>liabilities | 936,325 | 5,663 | 941,988 | 88,339 | 1,030,327 |
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
Financial assets and financial liabilities as of June 30, 2023 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 | Subtotal<br>financial assets | Non-financial<br>assets | Total | |
| June<br>30, 2023 | ||||||
| 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) | 231,456 | 46,533 | - | 277,989 | 76,235 | 354,224 |
| Investment in<br>financial assets: | ||||||
| - Public<br>companies’ securities | - | 15,811 | - | 15,811 | - | 15,811 |
| -<br>Bonds | - | 40,843 | 2,405 | 43,248 | - | 43,248 |
| - Mutual<br>funds | - | 78,446 | - | 78,446 | - | 78,446 |
| -<br>Others | 4,482 | 1,797 | - | 6,279 | - | 6,279 |
| Derivative<br>financial instruments: | ||||||
| - Commodities<br>options contracts | - | 655 | - | 655 | - | 655 |
| - Commodities<br>futures contracts | - | 6,461 | - | 6,461 | - | 6,461 |
| -<br>Foreign-currency options contracts | - | 864 | - | 864 | - | 864 |
| -<br>Foreign-currency future contracts | - | 5,555 | - | 5,555 | - | 5,555 |
| -<br>Swaps | - | - | 874 | 874 | - | 874 |
| -<br>Others | - | 6,126 | - | 6,126 | - | 6,126 |
| Restricted assets<br>(i) | 3,767 | - | - | 3,767 | - | 3,767 |
| Cash and cash<br>equivalents (excluding bank overdrafts): | ||||||
| - Cash on<br>hand and at bank | 29,033 | - | - | 29,033 | - | 29,033 |
| - Short-term<br>investments | - | 92,975 | - | 92,975 | - | 92,975 |
| Total<br>assets | 268,738 | 296,066 | 3,279 | 568,083 | 76,235 | 644,318 |
| 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, 2023 | ||||||
| Liabilities<br>as per Statement of Financial Position | ||||||
| Trade and other<br>payables (Note 18) | 193,428 | - | 193,428 | 96,854 | 290,282 | |
| Borrowings (Note<br>20) | 821,144 | - | 821,144 | - | 821,144 | |
| Derivative<br>financial instruments: | ||||||
| - Commodities<br>options contracts | - | 2,539 | 2,539 | - | 2,539 | |
| - Commodities<br>futures contracts | 46 | 1,051 | 1,097 | - | 1,097 | |
| -<br>Foreign-currency future contracts | - | 396 | 396 | - | 396 | |
| -<br>Swaps | - | 18 | 18 | - | 18 | |
| Total<br>liabilities | 1,014,618 | 4,004 | 1,018,622 | 96,854 | 1,115,476 |
(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, 2023.
As of March 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
25
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
16.
Trade and other receivables
Group’s trade and other receivables as of March 31, 2024 and June 30, 2023 are as follows:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Trade, leases and<br>services receivable (*) | 219,721 | 232,464 |
| Less: allowance for<br>doubtful accounts | (3,640) | (4,739) |
| Total<br>trade receivables | 216,081 | 227,725 |
| Prepayments | 40,348 | 41,715 |
| Borrowings,<br>deposits and others | 31,128 | 29,873 |
| Contributions<br>pending integration | - | 142 |
| Guarantee<br>deposits | 67 | 35 |
| Tax<br>receivables | 25,989 | 26,132 |
| Others | 20,272 | 23,863 |
| Total<br>other receivables | 117,804 | 121,760 |
| Total<br>trade and other receivables | 333,885 | 349,485 |
| Non-current | 90,703 | 105,632 |
| Current | 243,182 | 243,853 |
| Total | 333,885 | 349,485 |
(*) 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 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:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Beginning<br>of the period/ year | 4,739 | 6,931 |
| Additions<br>(i) | 654 | 1,024 |
| Recovery<br>(i) | (171) | (414) |
| Currency<br>translation adjustment | 2,437 | 1,184 |
| Used during the<br>year | - | (11) |
| Inflation<br>adjustment | (4,019) | (3,975) |
| End<br>of the period/ year | 3,640 | 4,739 |
(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
26
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 nine-month periods ended March 31, 2024 and 2023:
| Note | 03.31.2024 | 03.31.2023 | |
|---|---|---|---|
| (Loss) / Profit for the period | (25,646) | 140,918 | |
| Adjustments for: | |||
| Income<br>tax | 21 | (84,327) | (145,093) |
| Amortization<br>and depreciation | 24 | 6,635 | 6,202 |
| Gain<br>from disposal of trading properties | (3,418) | (7,641) | |
| Loss<br>from disposal of property, plant and equipment | 1,601 | 2,113 | |
| Realization<br>of currency translation adjustment | - | (1,343) | |
| Net<br>loss from fair value adjustment of investment<br>properties | 377,718 | 134,939 | |
| Loss<br>from disposal of subsidiary and associates | 1,210 | - | |
| Financial<br>results, net | (123,122) | (37,914) | |
| Provisions<br>and allowances | (98) | 30,037 | |
| Share<br>of profit of associates and joint ventures | 7 | (29,680) | (2,178) |
| Management<br>fees | 884 | 9,048 | |
| Changes<br>in net realizable value of agricultural products after<br>harvest | (3,047) | 1,598 | |
| Unrealized<br>initial recognition and changes in fair value of biological assets<br>and agricultural products at the point of harvest | (23,466) | (7,998) | |
| Gain<br>from disposal of farmlands | (6,254) | (2,670) | |
| Changes in operating assets and liabilities: | |||
| Decrease<br>in inventories | 2,829 | 10,969 | |
| (Increase)/<br>decrease in trading properties | (217) | 400 | |
| Decrease/<br>(increase) in biological assets | 8,153 | (167) | |
| Decrease<br>in trade and other receivables | 12,963 | 39,834 | |
| Decrease<br>in trade and other payables | (33,595) | (119,146) | |
| Decrease<br>in salaries and social security liabilities | (10,569) | (10,903) | |
| Decrease<br>in provisions | (331) | (140) | |
| Decrease<br>in lease liabilities | (5,238) | (7,377) | |
| Net<br>variation in derivative financial instruments | 3,572 | (593) | |
| Decrease/<br>(increase) in right of use assets | 2 | (8) | |
| Net cash generated from operating activities before income tax<br>paid | 66,559 | 32,887 |
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
The following table presents a detail of significant non-cash transactions occurred in the nine-month periods ended March 31, 2024 and 2023:
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Increase<br>in investment properties through an increase in trade and other<br>payables | - | 109 |
| Decrease<br>in investment properties through an increase in property, plant and<br>equipment | 10,486 | 58 |
| Currency<br>translation adjustment and other comprehensive results from<br>associates and joint ventures | 4,445 | 1,174 |
| Other<br>changes in shareholders' equity | 15,671 | 22,935 |
| Increase<br>of non-convertible notes through a decrease in non-convertible<br>notes | - | 196,743 |
| Decrease<br>in lease liabilities through a decrease in trade and other<br>receivables | 43 | - |
| Decrease<br>in property, plant and equipment through an increase in investment<br>properties | 7,232 | 13,812 |
| Increase<br>in shareholders' equity through an increase in investment<br>properties | 2,275 | 3,103 |
| Increase<br>in deferred income tax liabilities through a decrease in<br>shareholders' equity | 475 | 1,078 |
| Decrease<br>in trading properties through an increase in intangible<br>assets | - | 1,575 |
| Decrease<br>in property, plant and equipment through an increase in<br>shareholders' equity | - | 826 |
| Decrease<br>in investment properties through an increase in investment in<br>financial assets | - | 244 |
| Decrease<br>in investment in financial assets through a decrease in trade and<br>other payables | - | 1,152 |
| Increase<br>in investment in financial assets through a decrease in trade and<br>other receivables | 284 | 31 |
| Increase<br>in property, plant and equipment through an increase in trade and<br>other payables | 8,249 | 23,629 |
| Decrease<br>in property, plant and equipment through an increase in trade and<br>other receivables | 1,870 | 31 |
| Increase<br>in investment in financial assets through an increase in<br>borrowings | 1,382 | - |
| Decrease<br>in shareholders' equity through a decrease in investment in<br>financial assets | - | 9,698 |
| Increase<br>in right of use assets through an increase in lease<br>liabilities | 11,900 | 12,524 |
| Increase<br>in investment in associates and joint ventures through a decrease<br>in trade and other receivables | - | 93 |
| Increase<br>in intangible assets through a decrease in investment<br>properties | 23,120 | - |
| Increase<br>in intangible assets through an increase in trade and other<br>payables | 6,658 | - |
| Decrease<br>in investment in associates and joint ventures through an increase<br>in trade and other receivables | 1,136 | - |
| Decrease<br>in investment properties through an increase in trade and other<br>receivables | 2,509 | - |
| Barter<br>transaction investment properties | 594 | - |
| Decrease<br>in shareholders' equity through an increase in trade and other<br>payables | 4,144 | - |
| Increase<br>in group of assets held for sale through a decrease in property,<br>plant and equipment | 6,075 | - |
| Decrease<br>in shareholders' equity through a decrease in trade and other<br>receivables | 3,512 | 5,310 |
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
18.
Trade and other payables
Group’s trade and other payables as of March 31, 2024 and June 30, 2023 were as follows:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Trade<br>payables | 129,175 | 115,254 |
| Advances from<br>sales, leases and services (*) | 50,090 | 51,454 |
| Accrued<br>invoices | 9,433 | 12,298 |
| Deferred<br>income | 413 | 456 |
| Admission fees<br>(*) | 23,821 | 25,602 |
| Deposits in<br>guarantee | 517 | 442 |
| Total<br>trade payables | 213,449 | 205,506 |
| Dividends payable<br>to non-controlling interests | 795 | 8,558 |
| Tax<br>payables | 14,012 | 19,340 |
| Director´s<br>Fees | 4,768 | 37,117 |
| Management<br>fees | 884 | 9,797 |
| Others | 14,786 | 9,964 |
| Total<br>other payables | 35,245 | 84,776 |
| Total<br>trade and other payables | 248,694 | 290,282 |
| Non-current | 34,345 | 38,402 |
| Current | 214,349 | 251,880 |
| Total | 248,694 | 290,282 |
(*) Corresponds mainly to admission rights and rents collected in advance, which will accrue in an average term of 3 to 5 years.
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) | 03.31.2024 | 06.30.2023 | |
|---|---|---|---|---|
| Beginning<br>of period/ year | 22,969 | 3 | 22,972 | 4,857 |
| Additions<br>(i) | 5,233 | - | 5,233 | 25,414 |
| Decreases<br>(i) | (266) | - | (266) | (1,182) |
| Participation in<br>the results | - | 8 | 8 | (48) |
| Inflation<br>adjustment | (3,951) | - | (3,951) | (5,856) |
| Currency<br>translation adjustment | 7 | - | 7 | 35 |
| Used during the<br>period / year | (331) | - | (331) | (248) |
| End<br>of period/ year | 23,661 | 11 | 23,672 | 22,972 |
| Non-current | 20,139 | 20,259 | ||
| Current | 3,533 | 2,713 | ||
| Total | 23,672 | 22,972 |
(i)
Additions and recovery are included in "Other operating results, net".
(ii)
Corresponds to investments in Puerto Retiro as of March 31, 2024 and as of June 30, 2023. The increase and recovery is included in "Share of profit of associates and joint ventures "
(iii)
Contains 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
29
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 embargo 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.
The company is currently discussing the validity of the claim regarding its liability and, subsidiarily, rebutting the substantive arguments raised by IDBD. However, based on the analysis conducted by the Company's lawyers to date, a provision related to this claim has been recorded in accordance with applicable accounting standards. As of the issuance date of these condensed interim financial statements, the legal process is still ongoing.
20.
Borrowings
The breakdown and fair value of the Group’s borrowings as of March 31, 2024 and June 30, 2023 was as follows:
| Book<br>value | Fair<br>value | |||
|---|---|---|---|---|
| 03.31.2024 | 06.30.2023 | 03.31.2024 | 06.30.2023 | |
| Non-convertible<br>notes | 695,466 | 657,567 | 688,180 | 670,494 |
| Bank<br>loans | 63,452 | 86,161 | 63,452 | 86,161 |
| Bank<br>overdrafts | 6,207 | 61,967 | 6,207 | 61,967 |
| Others | 10,845 | 15,449 | 10,845 | 15,449 |
| Total<br>borrowings | 775,970 | 821,144 | 768,684 | 834,071 |
| Non-current | 450,930 | 499,328 | ||
| Current | 325,040 | 321,816 | ||
| Total | 775,970 | 821,144 |
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
Series XII Notes Redemption - IRSA
On December 28, 2023, IRSA notified the holders of Series XII Notes of the early redemption of all of them for a principal amount of UVA 53,784,674, which were outstanding and in circulation with maturity on March 31, 2024, in accordance with the terms and conditions detailed in the Offering Memorandum dated March 26, 2021. The redemption and payment were carried out on January 5, 2024. The redemption price was 100% of the face value of the Series XII Notes, plus accrued and unpaid interest, as of the date set for redemption.
Series XVIII and XIX Notes - IRSA
On February 28, 2024, IRSA issued Series XVIII and XIX Notes in the local market for a total amount of USD 52.6 million. Below are the main characteristics of the issuance:
●
Series XVIII: Denominated in dollars for USD 21.4 million at a fixed rate of 7.0%, with semi-annual payments. The principal will be paid at maturity on February 28, 2027. The price of issuance was 100.0% of the nominal value.
●
Series XIX: Denominated and payable in Argentina pesos for ARS 26,204 million at a variable interest rate BADLAR plus 0.99% spread, with quarterly payments. The principal will be paid at maturity on February 28, 2025. The price of issuance was 100.0% of the nominal value.
The funds will be used as defined in the issuance documents.
Series XLIII and XLIV Notes - CRESUD
On January 17, 2023, Cresud issued Notes XLIII and XLIV on the local market for a total amount of USD 64 million through the following instruments:
●
Series XLIII: Denominated and payable in Argentine pesos for ARS 19,886 million at a variable interest rate BADLAR plus 0% spread, with quarterly interests’ payments. The Capital amortization will be 100% at maturity, on January 17, 2025. The issuance price was 100.0% of the nominal value.
●
Series XLIV: Denominated in dollars for USD 39.8 million, with 6% interest rate and semiannual interests’ payments. The Capital amortization will be 100% at maturity, on January 17, 2027. The issuance price was 100.0% of the nominal value.
The funds were mainly used to refinance short-term liabilities and/or working capital, as defined in the issuance documents.
21.
Taxation
The details of the Group’s income tax, is as follows:
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Current<br>income tax | (66,007) | 52,008 |
| Deferred<br>income tax | 150,334 | 93,085 |
| Income tax from continuing operations | 84,327 | 145,093 |
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 nine-month periods ended March 31, 2024 and 2023:
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
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Tax<br>calculated at the tax rates applicable to profits in the respective<br>countries | 61,121 | 1,489 |
| Permanent<br>differences: | ||
| Share<br>of profit of joint ventures and associates | (6,229) | (322) |
| Tax<br>rate differential | (13,403) | (178) |
| Provision<br>for unrecoverability of tax loss carry-forwards | (1,736) | (9,491) |
| Difference<br>between affidavit and provision | (400) | 15,507 |
| Non-taxable<br>profit, non-deductible expenses and others | 16,684 | 59,565 |
| Tax<br>inflation adjustment | (48,237) | (37,301) |
| Fiscal<br>transparency | (3,836) | (5,007) |
| Inflation<br>adjustment permanent difference | 74,089 | 118,195 |
| Others | 6,274 | 2,636 |
| Income tax | 84,327 | 145,093 |
The gross movement in the deferred income tax account is as follows:
| 03.31.2024 | 06.30.2023 | |
|---|---|---|
| Beginning of period / year | (601,738) | (784,844) |
| Currency<br>translation adjustment | (1,332) | (2,924) |
| Revaluation<br>surplus | (787) | (1,307) |
| Charged<br>to the Statement of Income | 150,334 | 187,337 |
| End of the period / year | (453,523) | (601,738) |
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
22.
Revenues
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Crops | 115,872 | 116,075 |
| Sugarcane | 28,822 | 28,338 |
| Cattle | 15,840 | 13,160 |
| Supplies | 34,097 | 26,781 |
| Consignment | 24,461 | 18,743 |
| Advertising<br>and brokerage fees | 10,219 | 12,336 |
| Agricultural<br>rental and other services | 8,010 | 4,367 |
| Income from sales and services from agricultural<br>business | 237,321 | 219,800 |
| Trading<br>properties and developments | 5,830 | 9,490 |
| Rental<br>and services | 164,072 | 163,375 |
| Hotel<br>operations, tourism services and others | 43,590 | 35,867 |
| Income from sales and services from urban properties and investment<br>business | 213,492 | 208,732 |
| Total revenues | 450,813 | 428,532 |
23.
Costs
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Other<br>operative costs | 149 | 205 |
| Cost of property operations | 149 | 205 |
| Crops | 96,923 | 99,123 |
| Sugarcane | 24,820 | 27,275 |
| Cattle | 12,387 | 11,299 |
| Supplies | 29,770 | 25,221 |
| Consignment | 5,642 | 9,334 |
| Advertising<br>and brokerage fees | 10,309 | 7,952 |
| Agricultural<br>rental and other services | 4,425 | 2,397 |
| Cost of sales and services from agricultural business | 184,276 | 182,601 |
| Trading<br>properties and developments | 3,740 | 2,237 |
| Rental<br>and services | 47,275 | 52,242 |
| Hotel<br>operations, tourism services and others | 18,200 | 17,197 |
| Cost of sales and services from sales and services from urban<br>properties and investment business | 69,215 | 71,676 |
| Total costs | 253,640 | 254,482 |
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 | 03.31.2024 | 03.31.2023 | |
|---|---|---|---|---|---|
| Change<br>in agricultural products and biological assets | 114,090 | - | - | 114,090 | 119,557 |
| Salaries,<br>social security costs and other personnel expenses | 34,685 | 27,969 | 3,855 | 66,509 | 59,255 |
| Fees<br>and payments for services | 26,148 | 7,066 | 1,776 | 34,990 | 32,181 |
| Cost<br>of sale of goods and services | 37,126 | - | - | 37,126 | 34,132 |
| Maintenance,<br>security, cleaning, repairs and others | 19,807 | 3,190 | 50 | 23,047 | 22,605 |
| Taxes,<br>rates and contributions | 3,904 | 2,888 | 14,511 | 21,303 | 19,696 |
| Advertising<br>and other selling expenses | 8,656 | 56 | 1,917 | 10,629 | 12,873 |
| Freights | 18 | 312 | 8,362 | 8,692 | 7,304 |
| Director's<br>fees (i) | - | (5,548) | - | (5,548) | 8,805 |
| Depreciation<br>and amortization | 4,253 | 1,910 | 472 | 6,635 | 6,202 |
| Leases<br>and service charges | 1,346 | 574 | 61 | 1,981 | 2,273 |
| Travelling,<br>library expenses and stationery | 1,199 | 785 | 430 | 2,414 | 1,920 |
| Supplies<br>and labors | 858 | - | 2,669 | 3,527 | 877 |
| Other<br>expenses | 695 | 340 | 265 | 1,300 | 2,417 |
| Bank<br>expenses | 117 | 1,291 | - | 1,408 | 1,094 |
| Conditioning<br>and clearance | - | - | 1,434 | 1,434 | 811 |
| Interaction<br>and roaming expenses | 738 | 32 | 12 | 782 | 582 |
| Allowance<br>for doubtful accounts, net | - | - | 483 | 483 | 489 |
| Total expenses by nature as of 03.31.2024 | 253,640 | 40,865 | 36,297 | 330,802 | - |
| Total expenses by nature as of 03.31.2023 | 254,482 | 47,321 | 31,270 | - | 333,073 |
(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. The Board of Directors of the Company had proposed Director´s fees for ARS 13,500 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 current period, 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. The amounts are expressed in currency defined as approved by the Ordinary and Extraordinary Shareholders' Meeting.
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
25.
Other operating results, net
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Gain<br>from commodity derivative financial instruments | 8,184 | 892 |
| Loss<br>from sale of property, plant and equipment | (1,601) | (2,113) |
| Realization<br>of currency translation adjustment (i) | - | 1,343 |
| Loss<br>from sale of joint ventures | (1,210) | - |
| Donations | (350) | (454) |
| Lawsuits<br>and other contingencies | (4,967) | (20,743) |
| Interest<br>and allowances generated by operating assets | 8,504 | (1,479) |
| Administration<br>fees | 275 | 323 |
| Others | 1,445 | 2,160 |
| Total other operating results, net | 10,280 | (20,071) |
(i)
Corresponds to Condor, Real Estate Investment Group VII LP and Jiwin S.A’s liquidation.
26.
Financial results, net
| 03.31.2024 | 03.31.2023 | |
|---|---|---|
| Financial income | ||
| Interest<br>income | 45,512 | 6,311 |
| Total financial income | 45,512 | 6,311 |
| Financial costs | ||
| Interest<br>expense | (39,993) | (80,908) |
| Other<br>financial costs | (7,300) | (5,948) |
| Total finance costs | (47,293) | (86,856) |
| Other financial results: | ||
| Foreign<br>exchange, net | (12,379) | 54,655 |
| Fair<br>value gain from financial assets and liabilities at fair value<br>through profit or loss | 152,203 | 19,548 |
| (Loss)/<br>gain from repurchase of non-convertible notes | (59) | 3,324 |
| (Loss)/<br>gain from derivative financial instruments (except<br>commodities) | (26,086) | 4,991 |
| Others | (2,692) | (1,635) |
| Total other financial results | 110,987 | 80,883 |
| Inflation<br>adjustment | (15,635) | 63,434 |
| Total financial results, net | 93,571 | 63,772 |
27.
Related party transactions
The following is a summary of the balances with related parties as of March 31, 2024 and June 30, 2023:
| Item | 03.31.2024 | 06.30.2023 |
|---|---|---|
| Trade<br>and other receivables | 22,579 | 25,961 |
| Investments<br>in financial assets | 3,781 | 4,058 |
| Trade<br>and other payables | (14,564) | (48,435) |
| Borrowings | (934) | (689) |
| Total | 10,862 | (19,105) |
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
| Related<br>party | 03.31.2024 | 06.30.2023 | Description<br>of transaction | Item |
|---|---|---|---|---|
| New<br>Lipstick | 208 | 194 | Reimbursement<br>of expenses | Trade and other<br>receivables |
| Other<br>associates and joint ventures (i) | 37 | 38 | Leases<br>and/or right of use assets receivable | Trade<br>and other receivables |
| - | 141 | Contributions<br>pending subscription | Trade<br>and other receivables | |
| 1,866 | 1,752 | Other<br>investments | Investments<br>in financial assets | |
| (441) | (420) | Non-convertible<br>notes | Borrowings | |
| 1 | 3 | Equity<br>incentive plan receivable | Trade<br>and other receivables | |
| 1,494 | 2,494 | Loans<br>granted | Trade<br>and other receivables | |
| (493) | (269) | Borrowings | Borrowings | |
| - | 3 | Reimbursement<br>of expenses | Trade and other<br>receivables | |
| 4 | 85 | Management<br>fees receivable | Trade and other<br>receivables | |
| (63) | (649) | Other<br>payables | Trade and other<br>payables | |
| 3,066 | 4,982 | Other<br>receivables | Trade and other<br>receivables | |
| Total associates and joint ventures | 5,679 | 8,354 | ||
| CAMSA<br>and its subsidiaries | (884) | (9,797) | Management<br>fee payables | Trade and other<br>payables |
| Yad<br>Levim LTD | 16,373 | 14,850 | Loans<br>granted | Trade and other<br>receivables |
| Sociedad<br>Rural Argentina | (8,674) | (296) | Other<br>payables | Trade and other<br>payables |
| - | 1,593 | Other<br>receivables | Trade<br>and other receivables | |
| Other<br>related parties (ii) | 1,099 | 24 | Other<br>receivables | Trade and other<br>receivables |
| (126) | (93) | Other<br>payables | Trade and other<br>payables | |
| 1,915 | 2,306 | Other<br>investments | Investments in<br>financial assets | |
| 26 | 78 | Reimbursement<br>of expenses receivable | Trade and other<br>receivables | |
| (31) | (28) | Legal<br>services | Trade and other<br>payables | |
| Total other related parties | 9,698 | 8,637 | ||
| IFISA | 271 | 1,476 | Financial<br>operations receivables | Trade and other<br>receivables |
| Total direct parent company | 271 | 1,476 | ||
| Directors<br>and Senior Management | (4,786) | (37,572) | Fees<br>for services received | Trade and other<br>payables |
| Total Directors and Senior Management | (4,786) | (37,572) | ||
| Total | 10,862 | (19,105) |
(i)
Includes Quality Invest S.A., Banco Hipotecario S.A., Cyrsa S.A., Nuevo Puerto Santa Fe S.A., Banco Hipotecario, GCDI S.A., Avenida Inc., Avenida Compras S.A., Agrofy S.A., BHN Seguros Generales S.A., BHN Vida S.A. and OFC S.R.L.
(ii)
Includes Estudio Zang, Bergel y Viñes, Fundación Puerta 18, Sociedad Rural Argentina, CAM Communication LP, Sutton, Fundación Museo de los Niños, Viflor S.A and Agrofy S.A.
The following is a summary of the results with related parties for the nine-month periods ended March 31, 2024 and 2023:
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
| Related party | 03.31.2024 | 03.31.2023 | Description of transaction |
|---|---|---|---|
| Condor | - | 12 | Financial<br>operations |
| BHN<br>Vida S.A. | (37) | (4) | Financial<br>operations |
| BHN<br>Seguros Generales S.A. | (12) | (4) | Financial<br>operations |
| Other<br>associates and joint ventures | (3) | (144) | Leases<br>and/or right of use assets |
| 162 | 217 | Corporate<br>services | |
| 1,345 | 268 | Financial<br>operations | |
| Total associates and joint ventures | 1,455 | 345 | |
| CAMSA<br>and its subsidiaries | (884) | (9,048) | Management<br>fee |
| Sociedad<br>Rural Argentina | 432 | 117 | Financial<br>operations |
| Other<br>related parties (i) | (75) | (50) | Leases<br>and/or rights of use |
| (696) | (229) | Fees<br>and remunerations | |
| 39 | 27 | Corporate<br>services | |
| (266) | 1,024 | Legal<br>services | |
| 3,447 | (253) | Financial<br>operations | |
| (696) | (310) | Donations | |
| 1,003 | 559 | Income<br>from sales and services from agricultural business | |
| Total other related parties | 2,304 | (8,163) | |
| IFISA | 6 | 70 | Financial<br>operations |
| Total Parent Company | 6 | 70 | |
| Directors<br>(ii) | 3,734 | (6,551) | Management<br>fee |
| Senior<br>Management | (398) | (407) | Compensation<br>of Directors and senior management |
| Total Directors and Senior Management | 3,336 | (6,958) | |
| Total | 7,101 | (14,706) |
(i)
Includes Fundación Puerta 18, Galerías Pacífico, Estudio Zang, Austral Gold, Bergel y Viñes, Fundación Museo de los Niños, Sociedad Rural Argentina, Sutton, Espacio Digital S.A., Casposo Argentina Ltd, Uranga Trading, Agro Uranga, Isaac Elsztain e Hijos S.C.A. and Hamonet S.A.
(ii)
See Note 24 to these financial statements.
The following is a summary of the transactions with related parties for the nine-month periods ended March 31, 2024 and 2023:
| Related party | 03.31.2024 | 03.31.2023 | Description of transaction |
|---|---|---|---|
| Quality | - | (171) | Irrevocable<br>contributions |
| Total irrevocable contributions | - | (171) | |
| Agro-Uranga<br>S.A. | - | 628 | Dividends<br>received |
| Uranga<br>Trading S.A. | 125 | 109 | Dividends<br>received |
| Condor | - | 325 | Dividends<br>received |
| Nuevo<br>Puerto Santa Fe S.A. | 373 | 675 | Dividends<br>received |
| Total dividends received | 498 | 1,737 | |
| Quality | (21,896) | - | Sale of<br>shares |
| GCDI | (126) | - | Sale of<br>shares |
| Total<br>sale of shares | (22,022) | - |
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
36
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) | 03.31.2024 | 03.31.2023 |
|---|---|---|---|---|
| Inventories at the beginning of the period | 48,034 | 19,362 | 67,396 | 62,948 |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest | (743) | - | (743) | 3,925 |
| Changes<br>in the net realizable value of agricultural products after<br>harvest | 3,047 | - | 3,047 | (1,590) |
| Additions | 293 | - | 293 | 2,459 |
| Currency<br>translation adjustment | (12,836) | 393 | (12,443) | (950) |
| Harvest | 171,833 | - | 171,833 | 149,097 |
| Acquisitions<br>and classifications | 88,606 | 70,227 | 158,833 | 180,867 |
| Consume | (27,584) | - | (27,584) | (33,205) |
| Disposals<br>due to sales | - | (2,412) | (2,412) | (1,462) |
| Expenses<br>incurred | 32,662 | - | 32,662 | 28,373 |
| Inventories at the end of the period | (119,036) | (18,355) | (137,391) | (136,185) |
| Cost as of 03.31.2024 | 184,276 | 69,215 | 253,491 | - |
| Cost as of 03.31.2023 | 182,601 | 71,676 | - | 254,277 |
(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
37
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) | 03.31.2024 | 06.30.2023 |
|---|---|---|---|---|
| Assets | ||||
| Trade and other receivables | ||||
| US<br>Dollar | 106.74 | 855.00 | 91,264 | 66,722 |
| Euros | 0.08 | 924.17 | 74 | 72 |
| Uruguayan<br>pesos | - | - | - | 3 |
| Trade and other receivables related parties | ||||
| US<br>Dollar | 20.63 | 858.00 | 17,700 | 16,401 |
| Total Trade and other receivables | 109,038 | 83,198 | ||
| Investment in financial assets | ||||
| US<br>Dollar | 101.81 | 855.00 | 87,045 | 73,202 |
| Brazilian<br>Reais | - | - | - | 573 |
| New<br>Israel Shekel | 4.31 | 233.29 | 1,005 | 1,094 |
| Pounds | 0.62 | 1,079.18 | 665 | 743 |
| Investment in financial assets related parties | ||||
| US<br>Dollar | 4.41 | 858.00 | 3,781 | - |
| Total Investment in financial assets | 92,496 | 75,612 | ||
| Derivative financial instruments | ||||
| US<br>Dollar | 1.74 | 855.00 | 1,486 | 6,652 |
| Total Derivative financial instruments | 1,486 | 6,652 | ||
| Cash and cash equivalents | ||||
| US<br>Dollar | 50.05 | 855.00 | 42,793 | 36,386 |
| Chilenean<br>pesos | 61.71 | 0.88 | 54 | - |
| Euros | 0.01 | 924.17 | 6 | 6 |
| Guaraníes | 77.59 | 0.12 | 9 | - |
| Brazilian<br>Reais | 0.39 | 176.00 | 68 | - |
| New<br>Israel Shekel | - | - | - | 81 |
| Pounds | 0.003 | 1,079.18 | 3 | 3 |
| Uruguayan<br>pesos | 0.09 | 22.85 | 2 | 3 |
| Total Cash and cash equivalents | 42,935 | 36,479 | ||
| Total Assets | 245,955 | 201,941 | ||
| Liabilities | ||||
| Trade and other payables | ||||
| US<br>Dollar | 70.53 | 858.00 | 60,514 | 34,760 |
| Euros | - | - | - | 3 |
| Uruguayan<br>pesos | 80.13 | 22.85 | 1,831 | 38 |
| Brazilian<br>Reais | 0.11 | 186.00 | 21 | - |
| Trade and other payables related parties | ||||
| US<br>Dollar | 10.05 | 858.00 | 8,625 | 60 |
| Bolivian<br>pesos | 0.34 | 124.48 | 42 | - |
| Total Trade and other payables | 71,033 | 34,861 | ||
| Lease liabilities | ||||
| US<br>Dollar | 13.42 | 858.00 | 11,513 | 10,275 |
| Total Lease liabilities | 11,513 | 10,275 | ||
| Provisions | ||||
| New<br>Israel Shekel | 82.20 | 233.29 | 19,176 | 17,347 |
| Total Provisions | 19,176 | 17,347 | ||
| Borrowings | ||||
| US<br>Dollar | 625.51 | 858.00 | 536,686 | 581,649 |
| Borrowings with related parties | ||||
| US<br>Dollar | 1.25 | 858.00 | 1,076 | 978 |
| Total Borrowings | 537,762 | 582,627 | ||
| Derivative financial instruments | ||||
| US<br>Dollar | 0.05 | 858.00 | 42 | 332 |
| Total Derivative financial instruments | 42 | 332 | ||
| Total Liabilities | 639,526 | 645,442 |
(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 March 31, 2024 according to Banco Nación Argentina.
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
31.
Other relevant events of the period
Shares Buyback Program – New program - IRSA
On June 15, 2023, 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 5,000 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 8 per GDS and ARS 425 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.
IRSA reported that on September 5, 2023, the Company's Board of Directors resolved to modify the acquisition price of its own shares, establishing a maximum value of USD 9 per GDS and up to a maximum value in pesos of ARS 720 per share, maintaining the remaining terms and conditions duly communicated.
On November 6, 2023, the Board of Directors of IRSA resolved to extend the term of the shares repurchase program for an additional period of 180 days from the expiration of the term of the current share buyback program for the acquisition of own shares approved on June 15, 2023, which expired on December 13, 2023, with the remaining terms and conditions duly communicated.
On November 29, 2023, the Board of Directors resolved to modify the acquisition price of its own shares, establishing a maximum value of USD 11.00 per GDS and up to a maximum value in pesos of ARS 1,320 per share, maintaining the remaining terms and conditions duly communicated.
On January 4, 2024, IRSA reported that the Share Buyback Program approved by the Board of Directors on June 15, 2023, for up to the sum of ARS 5.000 million, with a validity period set at 180 days, extended for an additional period of 180 days from the initial expiration date on December 13, 2023, ended on December 20, 2023, as the amount duly approved for the acquisition of own shares had been fully utilized, with 99.95% of the program completed.
On January 4, 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 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 10 per GDS and ARS 1,200 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 March 1, 2024, the Company announced the completion of the share buyback program, having acquired the equivalent of 6,503,318 common shares, which represent approximately 99.91% of the approved program and 0.88% of the outstanding shares.
On March 20, 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 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 11 per GDS and ARS 1,250 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.
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
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Since the beginning of the program approved on June 15, 2023, including the programs approved on January 4 and March 20, 2024, and until the closing date of these condensed consolidated interim financial statements, the Company acquired 14,802,192 common shares (nominal value ARS 10 per share) for a total of ARS 11,872 million. Additionally, 7.34% of the program approved on March 20, 2024, was completed. The amounts are expressed in the currency at the time of acquisition.
On April 22, 2024, IRSA announced the completion of the share buyback program approved on March 20, 2024, having acquired the equivalent of 6,337,939 common shares, which represent approximately 99.54% of the approved program and 0.86% of the outstanding shares.
Change in the total amount of shares and its nominal value - IRSA
On September 13, 2023, IRSA announced that having obtained the authorizations from the CNV and the Buenos Aires Stock Exchange as resolved at the Shareholders' Meeting held on April 27, 2023, in relation to:
(i)
an increase in the capital stock in the amount of ARS 6,552.4 million, through the partial capitalization of the Issue Premium account, resulting in the issuance of 6,552,405,000 common shares, with a par value of ARS 1 (one peso) and with the right to one vote per share; and
(ii)
changing the nominal value of the ordinary shares from ARS 1 to ARS 10 each and entitled to one (1) vote per share.
Having obtained the authorizations from the Comisión Nacional de Valores (the Argentine National Securities Commission) and from the Buenos Aires Stock Exchange, the Company informs all shareholders who have such quality as of September 19, 2023, according to the registry maintained by Caja de Valores S.A., that from September 20, 2023, the shares distribution and the change in nominal value was made simultaneously and the entry of the change of 811,137,457 book-entry common shares, with a nominal value of ARS 1 each and one vote per share, for the amount of 736,354,245 book-entry common shares with a nominal value of ARS 10 each and one vote per share, consequently, a reverse split of the Company’s shares shall be carried out, where every 1 (one) old share with nominal value of ARS 1 shall be exchanged for 0.907804514 new shares with nominal value ARS 10. The new shares distributed due to the described capitalization have economic rights under equal conditions with those that are currently in circulation.
Regarding the shareholders who, because of the entry in the Scriptural Registry, have fractions of common shares with a nominal value of ARS 10 and one vote per share, they were settled in cash in accordance with the listing regulations of Bolsas y Mercados Argentinos. Regarding the shareholders who, due to the exchange of shares did not reach at least one share with a nominal value of ARS 10, the necessary amount was assigned to them until the nominal value of ARS 10 is completed.
The Company share capital after the indicated operations will amount to ARS 7,364 million represented by 736,354,245 book-entry common shares with a nominal value of ARS 10 each and one vote per share.
Likewise, the Buenos Aires Stock Exchange has been requested to change the modality of the negotiation of the shares representing the share capital. Specifically, the negotiation price will be registered per share instead of being negotiated by Argentine peso (ARS) of nominal value, given that the change in nominal value, and the issuance of shares resulting from the capitalization, would produce a substantial downward effect on the share price.
This capitalization and change in the nominal value of the shares do not modify the economic values of the holdings or the percentage of participation in the share capital.
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
40
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Warrants – Modification on Ratio and Price - IRSA
On September 14, 2023, IRSA reported that as a result of (i) an increase in the capital stock through the partial capitalization of the Issue Premium account; and (ii) an amendment to section seven of its bylaws, changing the nominal value of the ordinary shares from one peso (ARS 1) to ten pesos (ARS 10) each and entitled to one (1) vote per share, which was informed in September 13, 2023, where the outstanding shares will change from 811,137,457 common shares, with a nominal value of ARS 1 each and one vote per share, to the amount of 736,354,245 common shares with a nominal value of ARS 10 each and one vote per share, as it was approved by the shareholders meeting held on April 27, 2023. The terms and conditions of the outstanding warrants for common shares of the Company have been modified as follows:
Amount of shares to be issued per warrant:
● Ratio previous to the adjustment: 1.1719 (Nominal Value ARS 1);
● Ratio after the adjustment (current): 1.0639 (Nominal Value ARS 10).
Warrant exercise price per new share to be issued:
● Price previous to the adjustment: USD 0.3689 (Nominal Value ARS 1);
● Price after the adjustment (current): USD 0.4063 (Nominal Value ARS 10).
The other terms and conditions of the warrants remain the same.
General Ordinary and Extraordinary Shareholders’ Meeting
- IRSA
On October 5, 2023, the General Ordinary and Extraordinary Shareholders’ Meeting of IRSA was held where it was resolved to allocate the results of the year as follows: (I) ARS 2,867.5 million to the integration of the Legal Reserve, (ARS 3,428.9 million in homogeneous currency of the date of the Shareholders' meeting) and, (II) the remainder for the sum of ARS 54,483.3 million (ARS 65,148.9 million in homogeneous currency of the date of the Shareholders' meeting), to the distribution of a dividend to Shareholders in proportion to their shareholdings, payable in cash for the sum of ARS 64,000 million. Taking into consideration that the restated results were sufficient to cover the payment of the proposed dividends, it was approved to allocate the balance of the restated results for the year (ARS 1,148.9 million) to the integration of the Reserve for the distribution of future dividends. The amounts are expressed in currency defined as approved by the Ordinary and Extraordinary Shareholders' Meeting.
Likewise, it was approved to distribute 13,928,410 own shares in the portfolio of nominal value ARS 1 to the Shareholders in proportion to their shareholdings. Due to the aforementioned change in nominal value, each share of nominal value ARS1 corresponds to 0.90780451408 shares of nominal value ARS10, therefore, said amount updated by the aforementioned liquidation corresponds to the amount of 12,644,273 shares of nominal value ARS 10.
On October 20, 2023, IRSA reported that it had made the payment of the dividend approved at the meeting held on October 5, 2023 in Argentina.
The cash dividend and treasury shares distribution among GDS holders have been delayed due to the exchange and securities restrictions in force in Argentina. On October 20, 2023, the Company deposited the amount corresponding to the cash dividend in the mutual fund called “Super Ahorro $” managed by Santander Asset Management Gerente de Fondos Comunes de Inversión S.A., to preserve the value of the dividend in Argentine pesos. On December 12, 2023, the Company transferred the funds to the Depositary Bank of New York, fulfilling its obligation to pay dividends and leaving in the hands of the Depositary the completion of the process with the distribution to the holders.
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
41
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
On January 19, 2024, once the corresponding administrative processes had been completed, the Depositary paid the cash dividend, for a net amount per GDS of USD 0.955110, including the yield of the “Super Ahorro $” fund. Likewise, on January 29, 2024, the distribution of treasury shares was carried out among GDS holders.
The aforementioned corresponds to the payment of dividends to foreign holders, the dividends to local shareholders were canceled on October 12, 2023.
Change in Warrants terms and conditions - IRSA
Because of the payment of cash dividends and the pro-rata distribution of treasury shares among its shareholders, made by IRSA on October 12, 2023, certain terms and conditions of the outstanding warrants to subscribe common shares have changed:
●
Number of shares to be issued per warrant: Pre-dividend ratio: 1.0639. Post-dividend ratio: 1.2272 (nominal value ARS 10).
●
Exercise price per new share to be issued: Pre-dividend price: USD 0.4063. Post-dividend price: USD 0.3522 (nominal value ARS 10).
The other terms and conditions of the warrants remain the same.
Warrants exercise - IRSA
During the nine-month period ended March 31, 2024, certain warrant holders exercised their right to purchase additional shares. For this reason, USD 901,047 were received, from the conversion of 2,084,789 common share warrants.
Extension of the concession contract of La Rural S.A. – OGDEN
On December 11, 2023 in the Autonomous City of Buenos Aires (CABA), Ogden S.A., a company controlled by the Group, together with Sociedad Rural Argentina (“SRA”) and La Rural de Palermo S.A. entered into a Joint Venture and Shareholders Agreement through which the extension of the exploitation term of the Property located at 4431 Juncal Street, CABA (of which La Rural S.A. is the usufructuary) was extended until December 31, 2037 with the option of extension until December 31, 2041.
The aforementioned agreement is the extension of the Usufruct Contract for the “Predio Ferial de Palermo” (“CUP99/04”), signed in 1999 and modified in 2004, and the Joint Venture Agreement AJV/13 signed between the parties on September 25, 2013.
For the extension of the usufruct term under La Rural S.A., Ogden S.A. will pay the SRA the sum of twelve million US dollars (USD 12,000,000) for all purposes, which will be paid in five annual installments. The first of these was paid upon approval of the agreement by the Shareholders’ Meeting of the SRA.
The validity of the aforementioned agreement was subject to the approval of the Shareholders’ Meeting of the SRA, approval which took place on February 1, 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
42
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Las Londras Farmland
On December 20, 2020, BrasilAgro acquired the following companies established in Bolivia from Cresud: (i) Agropecuaria Acres del Sud S.A.; (ii) Ombú Agropecuaria S.A.; (iii) Yatay Agropecuaria S.A.; and (iv) Yuchan Agropecuaria S.A. (“Bolivian Companies”). The Bolivian Companies maintained possession, ownership or presumed ownership of various rural properties in Bolivia, including the rural property called "Las Londras" (part of the assets of Agropecuaria Acres del Sud), with an area of 4,485 hectares. At the time of the aforementioned operation, Las Londras was subject to an administrative land regularization process ("Land Regularization Process") initiated and conducted by the National Institute of Agrarian Reform of Bolivia ("INRA"), whose objective is the perfection of rights over property.
On November 25, 2021, as part of the Land Regularization Process, INRA issued the Final Land Regularization Resolution No. RA-SS 0504/2021 (“Definitive Resolution”), through which it declared the illegality of the possession of 4,435 hectares of Las Londras. On January 5, 2022, Agropecuaria Acres del Sud S.A. filed a “Contentious Administrative Lawsuit” challenging the Final Resolution in its entirety. However, on September 15, 2023, the Agro-Environmental Court issued a ruling declaring the Administrative Litigation Claim unfounded and confirming the Final Resolution (“Judgment”). In this context, Agropecuaria Acres del Sud S.A. will file a “Constitutional Amparo Action” against the Sentence, with the objective of revoking it.
BrasilAgro's external legal advisors have evaluated that the prospects of revoking the Judgment through the “Constitutional Amparo Action” are possible.
Banco Hipotecario S.A. – Cash dividend payment
On March 27, 2024, the Ordinary and Extraordinary General Shareholders’ Meeting of Banco Hipotecario S.A. approved the payment of a dividend of ARS 26,500 million, which will be paid in proportion of each shareholder’s stake and will be calculated in constant currency as of the date of the Shareholders’ Meeting and payment.
On May 3, 2024, the BCRA (Central Bank of the Argentine Republic, as per its Spanish acronym) approved the distribution of said dividend, with the first installment expected to be paid in May 2024.
General Ordinary and Extraordinary Shareholders’ Meeting - CRESUD
On October 5, 2023, General Ordinary and Extraordinary Shareholders’ Meeting was held, where it was approved to allocate the results of the year as follows: (I) to the integration of the Legal Reserve for the sum of ARS 2,141.8 million , which updated as of the date of this meeting, amounts to the sum of ARS 2,561 million; and (II) the balance for the sum of ARS 40,693.3 million, which updated as of the date of this meeting amounts to the sum of ARS 48,659.4 million, to be used for the distribution of a dividend to shareholders in proportion to their holdings. shares, payable (i) in cash for the sum of ARS 22,000 million; (ii) in kind, the species being shares issued by IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”), owned by the Company and for the amount of 22,090,627 VN ARS 10, an amount that was updated by the liquidation derived from the distribution of released shares and change in par value, by applying a conversion ratio that for each share of par value ARS1 corresponded to 0.90780451408 shares of par value ARS10, at the closing price on October 4, 2023 of ARS 644.75 per IRSA share; and, (iii) the balance for the sum of ARS 12,416.5 million to the constitution of a Reserve for future dividends.
Likewise, it was decided to approve the distribution of the total amount of 5,791,355 treasury shares in the portfolio to the Shareholders in proportion to their shareholdings.
On October 20, 2023, CRESUD reported that it had made the payment of the dividend approved at the meeting held on October 5, 2023 in Argentina.
With respect to our holders of Global Depositary Shares (“GDS”), and due to the exchange and stock exchange regulations in force in the Argentine Republic, which have increased their restrictions in recent weeks, the Bank of New York Mellon (“BONY” ), depositary bank of the GDS, is prevented from distributing the dividend paid by the Company.
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
43
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Given the aforementioned restrictions, the Company has deposited the corresponding funds in a common investment fund Super Ahorro ARS (pure money market fund) managed by Banco Santander, BONY's representative bank in Argentina and is collaborating with BONY in order to analyze possible alternatives for the distribution or investment of said funds until such time as that entity can channel them in favor of the GDS holders, making available to any GDS holder who so decides the pesos corresponding to their dividend.
After the end of the period, on January 29, 2024, once the corresponding administrative processes had been completed, the distribution of treasury shares was carried out among ADS holders. Likewise, on February 5, 2024, the Depositary paid the cash dividend for a net amount per ADS of USD 0.370747, including the yield of the “Super Ahorro $” fund, and on February 6, 2024, the distribution of the dividend in kind in IRSA shares was completed, corresponding 0.03759066 GDS of IRSA for each ADS of CRESUD.
The aforementioned corresponds to the payment of dividends to foreign holders, the dividends to local holders were canceled on October 12, 2023. According to this, at the end of this period, the liability "Dividends payable" included in the item “Commercial Debts and Other Debts” amounts to ARS 11,623 million and corresponds to the portion of dividends that were paid during the month of February 2024.
Change in Warrants terms and conditions - CRESUD
Because of the payment of cash dividends and the pro-rata distribution of treasury shares among its shareholders, made by the Company on October 12, 2023, certain terms and conditions of the outstanding warrants to subscribe common shares have changed:
●
Number of shares to be issued per warrant: Pre-dividend ratio: 1.1232. Post-dividend ratio: 1.2548.
●
Exercise price per new share to be issued: Pre-dividend price: USD 0.5036. Post-dividend price: USD 0.4508.
The other terms and conditions of the warrants remain the same.
Warrants exercise - CRESUD
During the nine-month period ended March 31, 2024, certain warrant holders exercised their right to purchase additional shares. For this reason, USD 415,655 were received, for a converted warrants of 734,898.
Shares Buyback Program - CRESUD
On January 18, 2024, CRESUD reported that the Share Buyback Program approved by the Board of Directors on November 11, 2022, for up to the sum of ARS 4.000 million, ended having acquired the equivalent of 13,474,104 ordinary shares, which represent approximately 99.94% of the approved program.
BrasilAgro – Payment of dividends
At the General Ordinary and Extraordinary Shareholders’ Meeting held on October 24, 2023, BrasilAgro approved the payment of dividends for BRL 320 million, corresponding to BRL 3.2387 per share.
FYO – Payment of dividends
At the General Ordinary and Extraordinary Shareholders’ Meeting held on October 29, 2023, FYO approved the payment of dividends for USD 9.7 million.
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
44
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
32.
Subsequent events
Series XLV Notes - CRESUD
On April 22, 2024, Cresud issued Notes on the local market for a total amount of USD 10.2 million through the following instrument:
●
Series XLV (blue chip swap FX): Denominated and payable in dollars for USD 10.2 million, with 6.0% interest rate and semiannual interests’ payments. The Capital amortization will be 100% at maturity, on August 22, 2026. The issuance price was 100.0%.
Cash dividend payment - IRSA
On May 2, 2024, through a Board Meeting in accordance with the delegation resolved by the Ordinary and Extraordinary General Shareholders’ Meeting of IRSA on October 28, 2022, regarding the utilization and allocation of the special reserve, it was approved to make available to its shareholders, starting from May 9, 2024, a cash dividend for the amount of ARS 55,000 million.
Cash dividend payment – CRESUD
On May 2, 2024, through a Board Meeting in accordance with the delegation resolved by the Ordinary and Extraordinary General Shareholders’ Meeting of CRESUD on October 5, 2023, regarding the utilization and allocation of the special reserve, it was approved to make available to its shareholders, starting from May 14, 2024, a cash dividend for the amount of ARS 30,000 million.
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
45
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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 unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“the Company”), which comprise the unaudited condensed interim consolidated statement of financial position at March 31, 2024, the unaudited condensed interim consolidated statements of income and other comprehensive income for the nine month period and three month period ended March 31, 2024, the interim consolidated statement of changes in shareholders’ equity and of cash flows for the nine-month period then ended, and selected explanatory notes.
Management’s responsibility
The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with IFRS accounting standards, adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and included by the National Securities Commission (CNV) in its regulations, as approved by the International Accounting Standards Board (IASB), and is therefore responsible for the preparation and presentation of the unaudited condensed interim consolidated financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 Interim Financial Information (IAS 34).
Scope of our review
Our review was limited to the application of the procedures established under International Standards on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, adopted as a review standard in Argentina by Technical Pronouncement No. 33 of the FACPCE and approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of inquiries of Company staff responsible for preparing the information included in the unaudited condensed interim consolidated financial statements and of analytical and other review procedures. This 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.
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
46
Conclusion
On the basis of our review, nothing has come to our attention that causes us to believe that the unaudited condensed interim consolidated financial statements mentioned in the first paragraph of this report have not been prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting.
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 unaudited condensed interim consolidated 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 unaudited condensed interim consolidated 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 March 2024;
c)
at March 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 $ 248,019,054, which is not due at that date.
Autonomous City of Buenos Aires, May 9, 2024
| 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 |
47
Brief comment on the Company’s activities during the period, including references to significant events occurred after the end of the period.
Economic context in which the Company operates
The Company operated in an economic context characterized by strong fluctuations in its main variables. The most relevant aspects are detailed below:
●
Economic Activity: At the end of 2023, the country experienced a 1.6% drop in its economic activity, according to INDEC data, a trend that continued during the first quarter of the 2024 calendar.
●
Inflation: Between April 1, 2023, and March 31, 2024, accumulated inflation reached 288% (measured by the CPI).
●
Exchange Rate: In that same period, according to the official exchange rate, the Argentine peso nominally depreciated against the US dollar, going from ARS 209.1 to ARS 855 per dollar at the end of the period. The MEP dollar behaved in the same way, going from ARS 397.34 to ARS 1,017.50.
●
Fiscal Surplus: During the first quarter of 2024, Argentina achieved a fiscal surplus, because of the strong adjustment applied by the government to order the accounts of the public sector and lower inflation.
●
Exchange Restrictions: The monetary authority maintained the exchange restrictions established in previous years throughout 2023 and the first quarter of 2024. Despite these restrictions, the company managed to meet all financial and contractual maturities.
On December 10, 2023, a new government took office in Argentina with the intention of carrying out a broad legal and regulatory reform.
Among the first measures adopted by this government is a Decree of Necessity and Urgency (DNU) that modifies various laws. These reforms affect areas such as the labor market, the customs code, and the status of public companies. Although the DNU was rejected by the Senate of the Nation’s Congress, its provisions have been partially in force since December 29, 2023, due to judicial actions that suspended certain modifications.
The reforms proposed by the new government are in the process of legislative discussion, and it is not possible to predict at this time their evolution or the new measures that could be announced.
The normative and regulatory situation as of March 31, 2024, does not differ substantially from the one mentioned above, and the financial statements of the Company should be read considering these circumstances.
48
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Consolidated Results
| (In ARS million) | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 450,813 | 428,532 | 5.2% |
| Costs | (253,640) | (254,482) | (0.3)% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 5,786 | (2,598) | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | 3,047 | (1,598) | - |
| Gross profit | 206,006 | 169,854 | 21.3% |
| Net<br>gain from fair value adjustment on investment<br>properties | (377,718) | (134,939) | 179.9% |
| Gain<br>from disposal of farmlands | 6,254 | 2,670 | 134.2% |
| General<br>and administrative expenses | (40,865) | (47,321) | (13.6)% |
| Selling<br>expenses | (36,297) | (31,270) | 16.1% |
| Other<br>operating results, net | 10,280 | (20,071) | - |
| Management<br>Fee | (884) | (9,048) | (90.2)% |
| Result from operations | (233,224) | (70,125) | 232.6% |
| Depreciation<br>and Amortization | 24,127 | 23,703 | 1.8% |
| Rights<br>of use installments | (10,753) | (11,558) | (7.0)% |
| EBITDA (unaudited) | (219,850) | (57,980) | 279.2% |
| Adjusted EBITDA (unaudited) | 164,332 | 101,820 | 61.4% |
| Loss<br>from joint ventures and associates | 29,680 | 2,178 | 1262.7% |
| Result from operations before financing and taxation | (203,544) | (67,947) | 199.6% |
| Financial<br>results, net | 93,571 | 63,772 | 46.7% |
| Result before income tax | (109,973) | (4,175) | 2,534.1% |
| Income<br>tax expense | 84,327 | 145,093 | (41.9)% |
| Result for the period | (25,646) | 140,918 | (118.2)% |
| Attributable to | |||
| Equity<br>holder of the parent | 22,340 | 79,463 | (71.9)% |
| Non-controlling<br>interest | (47,986) | 61,455 | (178.1)% |
Consolidated revenues increased by 5.2% during the nine-month period of fiscal year 2024, compared to the same period of fiscal year 2023, while Adjusted EBITDA grew by 61.4% during the same period. Agribusiness segments adjusted EBITDA was ARS 45,504 million, compared to a negative adjusted EBITDA of ARS 6,722 million in the same period of 2023, mainly due to better productive results and farmland sales in Argentina. The urban properties and investments business (through IRSA) adjusted EBITDA was ARS 123,631 million.
The net result for the nine-month period of fiscal year 2024 registered a ARS 25,646 million loss compared to a gain of ARS 140,918 in the same period of fiscal year 2023. This is mainly explained by the loss recorded from changes in the fair value of investment properties in the urban and investments business due to the impact of an inflation much higher than the devaluation on those properties valued in USD at an MEP exchange rate. The net result attributable to the controlling shareholder recorded a gain of ARS 22,340 million in the period.
49
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Description of Operations by Segment
| 9M 2024 | Agribusiness | Urban Properties and Investments | Total | 9M 24 vs. 9M 23 |
|---|---|---|---|---|
| Revenues | 238,561 | 177,236 | 415,797 | 6.5% |
| Costs | (184,422) | (31,238) | (215,660) | 1.2% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 5,295 | - | 5,295 | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | 3,047 | - | 3,047 | - |
| Gross profit | 62,481 | 145,998 | 208,479 | 20.8% |
| Net<br>gain from fair value adjustment on investment<br>properties | (44) | (377,736) | (377,780) | 173.1% |
| Gain<br>from disposal of farmlands | 6,254 | - | 6,254 | 134.2% |
| General<br>and administrative expenses | (20,459) | (20,744) | (41,203) | (13.9)% |
| Selling<br>expenses | (25,123) | (11,961) | (37,084) | 14.3% |
| Other<br>operating results, net | 14,132 | (4,052) | 10,080 | - |
| Result from operations | 37,241 | (268,495) | (231,254) | 262.8% |
| Share<br>of profit of associates | 1,106 | 28,272 | 29,378 | 583.1% |
| Segment result | 38,347 | (240,223) | (201,876) | 239.6% |
| 9M 2023 | Agribusiness | Urban Properties and Investments | Total | |
| --- | --- | --- | --- | |
| Revenues | 221,656 | 168,834 | 390,490 | |
| Costs | (182,803) | (30,277) | (213,080) | |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | (3,270) | - | (3,270) | |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | (1,598) | - | (1,598) | |
| Gross profit | 33,985 | 138,557 | 172,542 | |
| Net<br>gain from fair value adjustment on investment<br>properties | (287) | (138,044) | (138,331) | |
| Gain<br>from disposal of farmlands | 2,670 | - | 2,670 | |
| General<br>and administrative expenses | (18,525) | (29,354) | (47,879) | |
| Selling<br>expenses | (21,080) | (11,376) | (32,456) | |
| Other<br>operating results, net | (1,621) | (18,664) | (20,285) | |
| Result from operations | (4,858) | (58,881) | (63,739) | |
| Share<br>of profit of associates | (3,165) | 7,466 | 4,301 | |
| Segment result | (8,023) | (51,415) | (59,438) |
2024 Campaign
The 2024 regional campaign is being developed with mixed climatic conditions, similar planted area and expected production levels in line with the last campaign. Prospects for Argentina are better than for the rest of the region, given the severe drought experienced during the last campaign. The country projects soybean and corn production of approximately 50 million tons, with better prospects in the south and a decrease in production in the north.
Our Portfolio
During the third quarter of fiscal year 2024, our portfolio under management consisted of 745,049 hectares, of which 307,525 hectares are productive and 437,524 hectares are land reserves distributed in the four countries of the region where we operate.
50
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Breakdown of Hectares
Own and under Concession (*) (**) (***)
| Productive Lands | ||||
|---|---|---|---|---|
| Agricultural | Cattle | Reserved | Total | |
| Argentina | 72,077 | 140,335 | 318,156 | 530,568 |
| Brazil | 60,550 | 10,519 | 74,815 | 145,884 |
| Bolivia | 7,925 | - | 1,950 | 9,875 |
| Paraguay | 11,964 | 4,155 | 42,603 | 58,722 |
| Total | 152,516 | 155,009 | 437,524 | 745,049 |
(*) 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 | 44,852 | 10,896 | - | 55,748 |
| Brazil | 54,719 | 700 | 8,734 | 64,153 |
| Bolivia | 1,065 | - | - | 1,065 |
| Total | 100,636 | 11,596 | 8,734 | 120,966 |
(*) 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 | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | - | - | - |
| Costs | (146) | (202) | (27.7)% |
| Gross loss | (146) | (202) | (27.7)% |
| Net<br>gain from fair value adjustment on investment<br>properties | (44) | (287) | (84.7)% |
| Gain<br>from disposal of farmlands | 6,254 | 2,670 | 134.2% |
| General<br>and administrative expenses | (37) | (31) | 19.4% |
| Selling<br>expenses | (82) | (19) | 331.6% |
| Other<br>operating results, net | 3,876 | (3,444) | - |
| Profit from operations | 9,821 | (1,313) | - |
| Segment profit | 9,821 | (1,313) | - |
| EBITDA | 9,845 | (1,266) | - |
| Adjusted EBITDA | 9,889 | (979) | - |
Segment profit increased by ARS 11,134 million, mainly explained by the fractions sold and the valuation of accounts receivable in the current period for the sale of agreed soybean farms (included in Other Operating Results), from Brazil.
On March 26, 2024, BrasilAgro sold a fraction of 12,335 hectares (8,796 productive hectares) of the “Chaparral” farm located in Correntina, State of Bahia, Brazil, that was acquired in 2007. After this operation, a remaining surface of 24,847 hectares of this farm is still owned by the BrasilAgro. The total amount of the operation was set at BRL 364.5 million, subject to variations in the soybean bag price, and the field was valued on the books at BRL 34.0 million. The internal rate of return in dollars reached was approximately 7.8%. The result of the sale will be recorded in the fourth quarter of the fiscal year.
51
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
II)
Agricultural Production
The result of the Farming segment went from a ARS 15,646 million loss during the nine-month period of fiscal year 2023 to a ARS 13,704 million gain during the same period of the fiscal year 2024.
| in ARS million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 163,884 | 154,512 | 6.1% |
| Costs | (138,555) | (140,094) | (1.1)% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 5,295 | (3,270) | - |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | 3,047 | (1,598) | - |
| Gross profit | 33,671 | 9,550 | 252.6% |
| General<br>and administrative expenses | (11,959) | (9,732) | 22.9% |
| Selling<br>expenses | (17,164) | (15,022) | 14.3% |
| Other<br>operating results, net | 6,373 | 361 | 1,665.4% |
| Results from operations | 10,921 | (14,843) | - |
| Results<br>from associates | 2,783 | (803) | - |
| Segment results | 13,704 | (15,646) | - |
| EBITDA | 18,522 | (8,203) | - |
| Adjusted EBITDA | 14,071 | (21,588) | - |
II.a) Crops and Sugarcane
Crops
| in ARS million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 112,506 | 109,186 | 3.0% |
| Costs | (96,923) | (99,123) | (2.2)% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | 11,920 | 11,442 | 4.2% |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | 3,031 | (1,598) | - |
| Gross profit | 30,534 | 19,907 | 53.4% |
| General<br>and administrative expenses | (8,559) | (6,660) | 28.5% |
| Selling<br>expenses | (15,022) | (12,284) | 22.3% |
| Other<br>operating results, net | 6,926 | (1,361) | - |
| Profit from operations | 13,879 | (398) | - |
| Results<br>from associates | 2,750 | (791) | - |
| Activity Profit | 16,629 | (1,189) | - |
Sugarcane
| in ARS million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 28,822 | 28,338 | 1.7% |
| Costs | (24,820) | (27,275) | (9.0)% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce at the point of harvest | (3,618) | (1,439) | 151.4% |
| Gross profit | 384 | (376) | - |
| General<br>and administrative expenses | (1,846) | (1,672) | 10.4% |
| Selling<br>expenses | (883) | (1,404) | (37.1)% |
| Other<br>operating results, net | (254) | 1,590 | - |
| Profit from operations | (2,599) | (1,862) | 39.6% |
| Activity profit | (2,599) | (1,862) | 39.6% |
52
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Operations
| Production Volume (1) | 9M 24 | 9M 23 | 9M 22 | 9M 21 | 9M 20' |
|---|---|---|---|---|---|
| Corn | 235,400 | 170,503 | 240,458 | 199,438 | 299,918 |
| Soybean | 151,007 | 153,662 | 157,916 | 104,217 | 119,574 |
| Wheat | 28,775 | 21,594 | 35,502 | 36,669 | 43,925 |
| Sorghum | 3,154 | 1,987 | 2,921 | 503 | 3,229 |
| Sunflower | 971 | 6,021 | 3,560 | 4,596 | 1,954 |
| Cotton | 14,684 | 4,396 | 3,094 | 6,818 | 3,519 |
| Other | 15,741 | 8,693 | 9,557 | 5,366 | 5,619 |
| Total Crops (tons) | 449,732 | 366,856 | 453,008 | 357,607 | 477,738 |
| Sugarcane (tons) | 1,305,064 | 1,287,194 | 1,532,906 | 1,669,521 | 1,634,521 |
(1)
Includes Brasilagro. Excludes Agro-Uranga.
Next, we present the total volume sold according to its geographical origin measured in tons:
| Volume of | 9M24 | 9M23 | 9M22 | 9M21 | 9M20 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales (1) | M.L | M.E | Total | M.L | M.E | Total | M.L | M.E | Total | M.L | M.E | Total | M.L | M.E | Total |
| Corn | 199.9 | 94.4 | 294.3 | 162.2 | 92.6 | 254.8 | 239.8 | 65.3 | 305.1 | 233.9 | 70.0 | 303.9 | 284.7 | 54.3 | 339.0 |
| Soybean | 34.4 | 81.5 | 115.9 | 66.4 | 63.6 | 130.0 | 150.3 | 50.6 | 200.9 | 117.5 | 23.3 | 140.8 | 156.1 | 72.5 | 228.6 |
| Wheat | 28.4 | - | 28.4 | 15.4 | - | 15.4 | 31.2 | 1.3 | 32.5 | 29.2 | 1.3 | 30.5 | 39.5 | - | 39.5 |
| Sorghum | 3.7 | - | 3.7 | 13.2 | - | 13.2 | 22.7 | - | 22.7 | - | - | - | - | - | - |
| Sunflower | 3.5 | - | 3.5 | 1.4 | - | 1.4 | 1.6 | - | 1.6 | 2.7 | - | 2.7 | 8.5 | - | 8.5 |
| Cotton | 12.6 | 3.6 | 16.2 | 6.4 | - | 6.4 | 4.4 | - | 4.4 | 6.4 | - | 6.4 | 2.5 | 1.9 | 4.4 |
| Others | 13.0 | - | 13.0 | 8.2 | - | 8.2 | 7.6 | 1.4 | 9.0 | 5.3 | 1.0 | 6.3 | 6.1 | - | 6.1 |
| Total Crops (thousands of tons) | 295.5 | 179.5 | 475.0 | 273.2 | 156.2 | 429.4 | 457.6 | 118.6 | 576.2 | 395.0 | 95.6 | 490.6 | 497.4 | 128.7 | 626.1 |
| Sugarcane (thousands of tons) | 1.305.1 | - | 1.305.1 | 1,161.0 | - | 1,161.0 | 1,387.7 | - | 1,387.7 | 1,560.3 | - | 1,560.3 | 1,572.8 | - | 1,572.8 |
(1)
Includes BrasilAgro. Excludes Agro-Uranga S.A
The Grains activity presented a positive variation by ARS 17,818 million, from a ARS 1,1889 million loss during the nine-month period of fiscal year 2023 to a ARS 16,629 million gain during the same period of fiscal year 2024, mainly because of:
●
A gain in the productive result in Argentina due to the diversion in 22-23 Corn & Cotton Campaigns due to a greater volume of tons obtained compared to a negative result in the 21-22 Campaign due to lower yields, higher direct costs and prices lower than projected, along with the progress of 23-24 Wheat Campaign, with higher production margins due to higher yields.
●
Offset by a lower productive result in Brazil from soybean and corn due to a lower planted area and a drop in prices.
●
A higher gain in the holding and sales result in Argentina, due to better prices performance in pesos against inflation compared with the same period of fiscal year 2023.
The result of the Sugarcane activity increased by ARS 737 million, from a ARS 1,862 million loss in the nine-month period of fiscal year 2023 to a ARS 2,599 million loss in the same period of 2024. This is mainly due to a greater loss in the productive result of the third quarter of fiscal year 2024 in Brazil because of a drop in prices, partially offset by an increase in tons produced due to an increase in yield.
53
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
| Area in<br>Operation (hectares) (1) | As of 03/31/24 | As of 03/31/23 | YoY Var |
|---|---|---|---|
| Own<br>farms | 115,083 | 113,408 | 1.5% |
| Leased<br>farms | 125,540 | 122,293 | 2.7% |
| Farms<br>under concession | 22,087 | 22,314 | (1.0)% |
| Own<br>farms leased to third parties | 21,380 | 27,975 | (23.6)% |
| Total Area Assigned to Production | 284,090 | 285,990 | (0.7)% |
(1)
Includes Agro-Uranga.
II.b) Cattle Production
| Production Volume | 9M24 | 9M23 | 9M22 | 9M21 | 9M20 |
|---|---|---|---|---|---|
| Cattle herd (tons)(1) | 7,311 | 7,118 | 6,538 | 7,546 | 9,016 |
(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 | 9M 24 | 9M 23 | 9M 22 | 9M 21 | 9M 20 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 9.5 | 9.5 | 7.8 | - | 7.8 | 8.7 | - | 8.7 | 11.9 | - | 11.9 | 12.3 | - | 12.3 |
D.M.: Domestic market
F.M.: Foreign market
Cattle
| In ARS Million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 15,840 | 13,160 | 20.4% |
| Costs | (12,387) | (11,299) | 9.6% |
| Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce | (3,007) | (13,273) | (77.3)% |
| Changes<br>in the net realizable value of agricultural produce after<br>harvest | 16 | - | - |
| Gross Profit | 462 | (11,412) | - |
| General<br>and administrative expenses | (1,140) | (927) | 23.0% |
| Selling<br>expenses | (969) | (958) | 1.1% |
| Other<br>operating results, net | (244) | 120 | (303.3)% |
| Result from operations | (1,891) | (13,177) | (85.6)% |
| Results<br>from associates | 33 | (12) | - |
| Activity Result | (1,858) | (13,189) | (85.9)% |
| Area in operation – Cattle (hectares) (1) | As of 03/31/24 | As of 03/31/23 | YoY Var |
| --- | --- | --- | --- |
| Own<br>farms | 68,013 | 68,785 | (1.1)% |
| Leased<br>farms | 10,896 | 10,896 | 0.0% |
| Farms<br>under concession | 2,696 | 2,604 | 3.5% |
| Own<br>farms leased to third parties | - | 70 | - |
| Total Area Assigned to Cattle Production | 81,605 | 82,355 | (0.9)% |
(1) Includes Agro-Uranga, Brazil and Paraguay,
| Stock of Cattle Heard | As of 03/31/24 | As of 03/31/23 | YoY Var |
|---|---|---|---|
| Breeding<br>stock | 69,677 | 72,945 | (4.5)% |
| Winter<br>grazing stock | 10,551 | 5,144 | 105.1% |
| Sheep<br>stock | 13,642 | 14,734 | (7.4)% |
| Total Stock (heads) | 93,870 | 92,823 | 1.1% |
The result of the Cattle activity increase by ARS 11,331 million, from a ARS 13,189 million loss during the nine-month period of fiscal year 2023 to a ARS 1,858 million loss in the same period of fiscal year 2024, mainly explained by a lower loss in production results due to better price performance compared to inflation, together with an increase in kilograms produced and a decrease in costs, as well as a greater gain in sales results due to an increase in the average price and a greater volume sold.
54
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
II.c) Agricultural Rental and Services
| In ARS Million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 6,716 | 3,828 | 75.4% |
| Costs | (4,425) | (2,397) | 84.6% |
| Gross profit | 2,291 | 1,431 | 60.1% |
| General<br>and Administrative expenses | (414) | (473) | (12.5)% |
| Selling<br>expenses | (290) | (376) | (22.9)% |
| Other<br>operating results, net | (55) | 12 | (558.3)% |
| Result from operations | 1,532 | 594 | 157.9% |
| Activity Result | 1,532 | 594 | 157.9% |
The result of the activity was decreased by ARS 938 million, from a ARS 594 million gain in the nine-month period of fiscal year 2023 to a ARS 1,532 million gain in the same period of 2024.
III) Other Segments
We include within "Others" the results coming from our investment in FyO.
The result of the segment increased by ARS 5,208 million, going from a gain of ARS 12,279 million for the nine-month period of fiscal year 2023 to a ARS 17,487 million gain for the same period of fiscal year 2024, mainly due to a higher profit on futures and options operations, on stockpiling and consignment operations and on the sale of inputs, a lower profit on grain brokerage commissions, partially offset by higher selling and administrative expenses.
| In ARS Million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| Revenues | 74,677 | 67,144 | 11.2% |
| Costs | (45,721) | (42,507) | 7.6% |
| Gross profit | 28,956 | 24,637 | 17.5% |
| General<br>and administrative expenses | (5,798) | (5,419) | 7.0% |
| Selling<br>expenses | (7,877) | (6,039) | 30.4% |
| Other<br>operating results, net | 3,883 | 1,462 | 165.6% |
| Profit from operations | 19,164 | 14,641 | 30.9% |
| Profit<br>from associates | (1,677) | (2,362) | (29.0)% |
| Segment Profit | 17,487 | 12,279 | 42.4% |
| EBITDA | 20,591 | 15,432 | 33.4% |
| Adjusted EBITDA | 21,542 | 15,796 | 36.4% |
IV) Corporate Segment
The negative result went from ARS 3,343 million in the nine-month period of the fiscal year 2023 to ARS 2,665 million in the same period of fiscal year 2024.
| In ARS Million | 9M 24 | 9M 23 | YoY Var |
|---|---|---|---|
| General<br>and administrative expenses | (2,665) | (3,343) | (20.3)% |
| Loss from operations | (2,665) | (3,343) | (20.3)% |
| Segment loss | (2,665) | (3,343) | (20.3)% |
| EBITDA | (2,665) | (3,331) | (20.0)% |
| Adjusted EBITDA | (2,665) | (3,331) | (20.0)% |
55
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 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 March 31, 2024, our direct and indirect equity interest in IRSA was 54.76% over stock capital.
Consolidated results of our subsidiary IRSA Inversiones y Representaciones S.A.
| In ARS Millions | 9M 24 | 9M 23 | Var a/a |
|---|---|---|---|
| Revenues | 213,481 | 208,720 | 2.3% |
| Results<br>from operations | (269,680) | (56,488) | 377.4% |
| EBITDA | (264,068) | (53,877) | 390.1% |
| Adjusted EBITDA | 123,631 | 122,050 | 1.3% |
| Segment results | (240,223) | (51,415) | 367.2% |
Consolidated revenues from sales, rentals and services increased by 2.3% during the nine-month period of fiscal year 2024 compared to the same period of 2023. Adjusted EBITDA reached ARS 123,631 million, 1.3% higher than in the same period of previous fiscal year.
Financial Indebtedness and Other
The following tables contain a breakdown of company’s indebtedness as of March 31, 2024:
Agricultural Business
| Description | Currency | Amount (USD MM)(2) | Interest Rate | Maturity |
|---|---|---|---|---|
| Loans<br>and bank overdrafts | ARS | 0.7 | Variable | <<br>360 days |
| Series<br>XXXIV | USD | 12.2 | 6.99% | Jun-24 |
| Series<br>XXXIII | USD | 6.4 | 6.99% | Jul-24 |
| Series<br>XXXV | USD | 20.4 | 3.50% | Sep-24 |
| Series<br>XLI | ARS | 4.8 | Variable | Oct-24 |
| Series<br>XLIII | ARS | 23.2 | Variable | Jan-25 |
| Series<br>XXXVI | USD | 39.1 | 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>XL | USD | 38.2 | 0.00% | Dec-26 |
| Series<br>XLIV | USD | 39.8 | 6.00% | Jan-27 |
| Other<br>debt | 8.0 | |||
| CRESUD’s Total Debt (3) | USD | 317.6 | ||
| Cash and cash equivalents (3) | USD | 17.8 | ||
| CRESUD’s Net Debt | USD | 299.8 | ||
| Brasilagro’s Total Net Debt | USD | 96.6 |
(1) Net of repurchases
(2) Principal amount stated in USD (million) at an exchange rate of 858.00 ARS/USD and 4.987 BRL/USD, without considering accrued interest or elimination of balances with subsidiaries.
(3) Does not include FyO
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Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Urban Properties and Investments Business
| Description | Currency | Amount<br>(USD MM) (1) | Interest<br>Rate | Maturity |
|---|---|---|---|---|
| Bank<br>overdrafts | ARS | 6.1 | Variable | <<br>360 days |
| Series XI <br>(3) | USD | 10.5 | 5.0% | Mar-24 |
| Series<br>XIII | USD | 14.8 | 3.9% | Aug-24 |
| Series<br>XIX | ARS | 30.5 | Variable | Feb-25 |
| Series<br>XV | USD | 61.7 | 8.0% | Mar-25 |
| Series<br>XVI | USD | 28.3 | 7.0% | Jul-25 |
| Series<br>XVII | USD | 25.0 | 5.0% | Dec-25 |
| Series<br>XVIII | USD | 21.4 | 7.0% | Feb-27 |
| Series<br>XIV | USD | 158.9 | 8.75% | Jun-28 |
| IRSA’s Total Debt | USD | 357.2 | ||
| Cash & Cash Equivalents + Investments<br><br>(2) | USD | 155.4 | ||
| IRSA’s Net Debt | USD | 201.8 |
(1)
Principal amount in USD (million) at an exchange rate of ARS 858.00/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.
(3) Cancelled on April 3, 2024.
Comparative Summary Consolidated Balance Sheet Data
| In ARS million | Mar-24 | Mar-23 | Mar-22 | Mar-21 | Mar-20 |
|---|---|---|---|---|---|
| Current<br>assets | 681,286 | 643,583 | 694,767 | 703,304 | 3,391,225 |
| Non-current<br>assets | 2,304,638 | 2,644,437 | 2,674,446 | 2,936,882 | 6,587,083 |
| Total assets | 2,985,924 | 3,288,020 | 3,369,213 | 3,640,186 | 9,978,308 |
| Current<br>liabilities | 629,442 | 549,029 | 608,303 | 926,119 | 2,573,061 |
| Non-current<br>liabilities | 1,021,999 | 1,281,876 | 1,505,832 | 1,460,304 | 5,950,978 |
| Total liabilities | 1,651,441 | 1,830,905 | 2,114,135 | 2,386,423 | 8,524,039 |
| Total<br>capital and reserves attributable to the shareholders of the<br>controlling company | 580,270 | 621,867 | 456,444 | 436,209 | 157,715 |
| Minority<br>interests | 754,213 | 835,248 | 798,634 | 817,554 | 1,296,554 |
| Shareholders’ equity | 1,334,483 | 1,457,115 | 1,255,078 | 1,253,763 | 1,454,269 |
| Total liabilities plus minority interests plus shareholders’<br>equity | 2,985,924 | 3,288,020 | 3,369,213 | 3,640,186 | 9,978,308 |
Comparative Summary Consolidated Statement of Income Data
| In ARS million | Mar-24 | Mar-23 | Mar-22 | Mar-21 | Mar-20 |
|---|---|---|---|---|---|
| Gross<br>profit | 206,006 | 169,854 | 228,719 | 194,140 | 221,943 |
| Profit from operations | (233,224) | (70,125) | 80,401 | 22,663 | 206,467 |
| Results<br>from associates and joint ventures | 29,680 | 2,178 | (4,185) | (24,986) | 10,146 |
| Profit<br>from operations before financing and taxation | (203,544) | (67,947) | 76,216 | (2,323) | 216,613 |
| Financial<br>results, net | 93,571 | 63,772 | 133,714 | 16,069 | (277,497) |
| Profit<br>before income tax | (109,973) | (4,175) | 209,930 | 13,746 | (60,884) |
| Income<br>tax expense | 84,327 | 145,093 | 40,920 | (35,478) | (54,635) |
| Result<br>of the period of continuous operations | (25,646) | 140,918 | 250,850 | (21,732) | (115,519) |
| Result<br>of discontinued operations after taxes | - | - | - | (90,277) | (12,963) |
| Result for the period | (25,646) | 140,918 | 250,850 | (112,009) | (128,482) |
| Controlling<br>company’s shareholders | 27,879 | 82,381 | 102,871 | (95,493) | (214,713) |
| Non-controlling<br>interest | (38,320) | 64,099 | 19,459 | (153,022) | 160,322 |
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Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Comparative Summary Consolidated Statement of Cash Flow Data
| In ARS million | Mar-24 | Mar-23 | Mar-22 | Mar-21 | Mar-20 |
|---|---|---|---|---|---|
| Net<br>cash generated by operating activities | 60,696 | 25,141 | 78,990 | (61,652) | 447,566 |
| Net<br>cash generated by investment activities | 95,354 | 63,731 | 86,153 | 712,291 | 278,762 |
| Net<br>cash used in financing activities | (194,349) | (208,914) | (247,670) | (471,059) | (1,162,180) |
| Total net cash generated during the fiscal period | (38,299) | (120,042) | (82,527) | 179,580 | (435,852) |
Ratios
| In ARS million | Mar-24 | Mar-23 | Mar-22 | Mar-21 | Mar-20 |
|---|---|---|---|---|---|
| Liquidity (1) | 1.082 | 1.172 | 1.142 | 0.759 | 1.318 |
| Solvency (2) | 0.808 | 0.796 | 0.594 | 0.525 | 0.171 |
| Restricted capital (3) | 0.772 | 0.804 | 0.794 | 0.807 | 0.660 |
(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
January 2024: Notes issuance
On January 17, 2024, Cresud issued Notes on the local market for a total amount of USD 64 million through the following instruments:
●
Series XLIII: Denominated and payable in Argentine pesos for ARS 19,886 million at a variable interest rate BADLAR plus 0% spread, with quarterly interests’ payments. The Capital amortization will be 100% at maturity, on January 17, 2025. The issuance price was 100.0% of the nominal value.
●
Series XLIV: Denominated in dollars for USD 39.8 million, with 6% interest rate and semiannual interests’ payments. The Capital amortization will be 100% at maturity, on January 17, 2027. The issuance price was 100.0%.
The funds were mainly used to refinance short-term liabilities and/or working capital, as defined in the issuance documents.
January 2024: Shares Buyback Program Completion
On January 18, 2024, the Company completed the shares buyback program, having acquired the equivalent of 13,474,104 ordinary shares, which represent approximately 99.94% of the approved program and 2.27% of the outstanding shares.
March 2024: Warrants Exercise
Between February 17 and 25, 2024, certain warrants holders have exercised their right to acquire additional shares and 129,449 ordinary shares of the Company were registered, with a nominal value of VN ARS 1. As a result of the exercise, USD 58,355.61 have been collected by the Company.
After the exercise of these warrants, the number of shares and the capital stock of the Company increased from 594,174,957 to 594,304,406, and the new number of outstanding warrants decreased from 87,662,070 to 87,558,873.
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Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
April 2024: Notes issuance
On April 22, 2024, Cresud issued Notes on the local market for a total amount of USD 10.2 million through the following instrument:
●
Series XLV (blue chip swap FX): Denominated and payable in dollars for USD 10.2 million, with 6.0% interest rate and semiannual interests’ payments. The Capital amortization will be 100% at maturity, on August 22, 2026. The issuance price was 100.0%.
The funds were mainly used to refinance short-term liabilities and/or working capital, as defined in the issuance documents.
May 2025: Dividend Approval
On May 2, 2024, the Company approved the distribution among its shareholders on May 14, 2024, of a cash dividend of ARS 30,000 million, equivalent to 5,054.8206% of the stock capital with collection rights. The amount per ordinary share (VN$1) will be ARS 50.5482 and the amount per ADS will be ARS 505.4821.
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:
59
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
| 2024 | 2023 | |
|---|---|---|
| Result<br>for the period | (25,646) | 140,918 |
| Income<br>tax expense | (84,327) | (145,093) |
| Net<br>financial results | (93,571) | (63,772) |
| Share<br>of profit of associates and joint ventures | (29,680) | (2,178) |
| Depreciation<br>and amortization | 24,127 | 23,703 |
| Rights<br>of use installments | (10,753) | (11,558) |
| EBITDA (unaudited) | (219,850) | (57,980) |
| Gain<br>from fair value of investment properties, not realized -<br>agribusiness | 44 | 287 |
| Gain<br>from fair value of investment properties, not realized - Urban<br>Properties Business | 377,674 | 134,652 |
| Realized<br>sale – Real Estate | 21,560 | 37,883 |
| Initial<br>recognition and changes in fair value of biological<br>assets | (4,294) | (10,271) |
| Realized<br>initial recognition and changes in fair value of biological<br>assets | 794 | (2,751) |
| Others<br>(recovery of provision) | (11,596) | - |
| Adjusted EBITDA (unaudited) | 164,332 | 101,820 |
60
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Summary as of March 31, 2024
Brief comment on prospects for the fiscal year
The 2024 regional campaign is being developed with mixed climatic conditions, similar planted area and expected production levels in line with the last campaign. Prospects for Argentina are better than for the rest of the region, given the severe drought experienced during the last campaign. The country projects soybean and corn production of approximately 50 million tons, with better prospects in the south and a decrease in production in the north.
International commodity prices have been correcting compared to last season, mainly explained by the growth in supply from South America, waiting for demand to be reactivated. Regarding input costs, they have experienced a correction, but they are still high in relation to commodity prices. We will apply the best agricultural practices to achieve high yields and increase margins per hectare.
Regarding livestock activity, a significant improvement in prices has been observed in Argentina, which, added to the good weather conditions of the campaign, predicts positive results for this activity with good levels of meat production. We will continue to concentrate our production in our own fields, mainly in the Northwest of Argentina and consolidating our activity in Brazil with a focus on improving productivity, controlling costs and working efficiently to achieve the highest possible operating margins.
On the real estate segment, we have been observing an upward trend in land prices worldwide that has not been replicated in Argentina and we are beginning to see greater interest in our assets in the country. As part of our business strategy, we will continue selling the farms that have reached their maximum level of appreciation in the region, hoping that Brazil maintains its liquidity and firm prices, and Argentina increases the number of transactions, with competitive valuations.
Our agricultural commercial services business, through FyO, plans to continue growing in the commercialization of grains, continue with the digital transformation of the company and advance in the regionalization of the input business in Brazil, Paraguay, Bolivia and Peru with the objective of increase sales and margins. For its part, Agrofy, the online agricultural platform, will focus on the profitability of the different categories and main clients. We will continue to achieve synergies with FyO in the development of commercial agreements with clients and giving visibility to our portfolio through the Marketplace.
The urban property and investment business, which we own through IRSA, has been recording good results in its rental segments and distributing high dividends, despite a third quarter with a drop in consumption in our shopping centers. The economic context is challenging for the next quarter, but we trust in the quality of the portfolio and in management's ability to adapt to changes in the context and continue offering the best proposals to its tenants and visitors.
During fiscal year 2024, we will continue working on the reduction and efficiency of the cost structure. At the same time we will continue evaluating 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 public and/or private disposal of assets that may include real estate as well as negotiable securities owned by the Company, issuance of negotiable bonds, repurchase of own shares, among other instruments that be useful to the proposed objectives.
We believe that Cresud, owner of a diversified rural and urban real estate portfolio, with a management with many years of experience in the sector and a great track record in accessing the capital markets, will have excellent possibilities to take advantage of the best opportunities that arise in the market.
Alejandro G. Elsztain
CEO
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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