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 Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Fiscal year N°: 91, beginning on July 1, 2023
 
Legal address: Carlos Della Paolera 261, 9rd floor – Autonomous City of Buenos Aires, Argentina
 
Company activity: Real estate and agricultural activities
 
Date of registration of the by-laws in the Public Registry of Commerce: February 19, 1937
 
Date of registration of last amendment of the by-laws in the Public Registry of Commerce: Ordinary and Extraordinary General Assembly of October 28, 2022 registered in the General Inspection of Justice on December 5, 2022 under Number 22602 of Book 110 T- of Stock Companies.
 
Expiration of Company charter: June 6, 2082
 
Registration number with the Supervisory Board of Companies: 26, folio 2, book 45, Stock Companies
 
Stock: 594,304,406 common shares
 
Common stock subscribed, issued and paid up nominal value (millions of ARS): 594
 
Control Group: Eduardo S. Elsztain directly and through Inversiones Financieras del Sur S.A., Agroinvestment S.A. and Consultores Venture Capital Uruguay S.A.
 
Legal addresses: Bolívar 108, 1st floor, Autonomous City of Buenos Aires, Argentina (Eduardo S. Elsztain) - Road 8, km 17,500, Zonamérica Building 1, store 106, Montevideo, Uruguay (IFISA) - Cambara 1620, 2nd floor, office 202, Carrasco, 11000 Montevideo, Uruguay (Agroinvesment S.A.) – Road 8, km 17,500, Zonamérica Building 1, store 106, Montevideo, Uruguay (Consultores Venture Capital Uruguay S.A.).
 
Parent companies' activity: Investment
 
Direct and indirect participation of the Control Group over the capital: 230,771,682 shares
 
Voting stock (direct and indirect equity interest): 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 each
594,304,406 (**)
594
 
 
(*) For computation purposes, treasury shares have been subtracted.
(**) Company not included in the Optional Statutory System of Public Offer of Compulsory Acquisition.
 
 
 
 
 
 
Index
 
Glossary of terms
1
Unaudited Condensed Interim Consolidated Statements of Financial Position
2
Unaudited Condensed Interim Consolidated Statements of Income and Other Comprehensive Income
3
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders' Equity
4
Unaudited Condensed Interim Consolidated Statements of Cash Flows
6
Notes to the Unaudited Condensed Interim Consolidated Financial Statements:
 
Note 1 - The Group's business and general information
7
Note 2 - Summary of significant accounting policies
8
Note 3 - Seasonal effects on operations
9
Note 4 - Acquisitions and disposals
9
Note 5 - Financial risk management and fair value estimates
12
Note 6 - Segment information
12
Note 7 - Investments in associates and joint ventures
17
Note 8 - Investment properties
19
Note 9 - Property, plant and equipment
21
Note 10 - Trading properties
22
Note 11 - Intangible assets
22
Note 12 - Right-of-use assets
22
Note 13 - Biological assets
23
Note 14 - Inventories
24
Note 15 - Financial instruments by category
24
Note 16 - Trade and other receivables
26
Note 17 - Cash flow and cash equivalents information
27
Note 18 - Trade and other payables
28
Note 19 - Provisions
28
Note 20 - Borrowings
29
Note 21 - Taxation
30
Note 22 - Revenues
31
Note 23 - Costs
31
Note 24 - Expenses by nature
32
Note 25 - Other operating results, net
32
Note 26 - Financial results, net
32
Note 27 - Related parties transactions
33
Note 28 - CNV General Resolution N° 622
34
Note 29 - Cost of sales and services provided
35
Note 30 - Foreign currency assets and liabilities
36
Note 31 - Result from discontinued operations
37
Note 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 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 properties
8
  1,398,162 
  1,837,232 
Property, plant and equipment
9
  484,142 
  456,093 
Trading properties
10
  17,373 
  18,911 
Intangible assets
11
  61,248 
  31,232 
Group of assets held for sale
 
  6,075 
  - 
Right-of-use assets
12
  63,065 
  58,720 
Biological assets
13
  27,757 
  29,156 
Investment in associates and joint ventures
7
  131,911 
  124,339 
Deferred income tax assets
21
  8,529 
  4,475 
Income tax credit
 
  6 
  69 
Restricted assets
15
  3,990 
  3,767 
Trade and other receivables
16
  90,703 
  105,632 
Investment in financial assets
15
  10,086 
  6,470 
Derivative financial instruments
15
  1,591 
  1,227 
Total non-current assets
 
  2,304,638 
  2,677,323 
Current assets
 
    
    
Trading properties
10
  408 
  451 
Biological assets
13
  96,769 
  58,578 
Inventories
14
  82,797 
  88,416 
Income tax credit
 
  734 
  3,584 
Trade and other receivables
16
  243,182 
  243,853 
Investment in financial assets
15
  140,988 
  137,314 
Derivative financial instruments
15
  12,755 
  19,308 
Cash 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' equity (according to corresponding statement)
 
  580,270 
  651,857 
Non-controlling interest
 
  754,213 
  852,640 
TOTAL SHAREHOLDERS' EQUITY
 
  1,334,483 
  1,504,497 
LIABILITIES
 
    
    
Non-current liabilities
 
    
    
Trade and other payables
18
  34,345 
  38,402 
Borrowings
20
  450,930 
  499,328 
Deferred income tax liabilities
21
  462,052 
  606,213 
Provisions
19
  20,139 
  20,259 
Payroll and social security liabilities
 
  1,023 
  1,062 
Lease liabilities
 
  51,692 
  55,887 
Derivative financial instruments
15
  1,818 
  145 
Total non-current liabilities
 
  1,021,999 
  1,221,296 
Current liabilities
 
    
    
Trade and other payables
18
  214,349 
  251,880 
Borrowings
20
  325,040 
  321,816 
Provisions
19
  3,533 
  2,713 
Payroll and social security liabilities
 
  14,862 
  21,290 
Income tax liabilities
 
  49,906 
  5,176 
Lease liabilities
 
  17,907 
  18,262 
Derivative 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
Síndico Titular
Por Comisión Fiscalizadora
 
 
Alejandro G. Elsztain
Vice 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 recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
  5,786 
  (2,598)
  6,358 
  9,176 
Changes in the net realizable value of agricultural products after harvest
 
  3,047 
  (1,598)
  (7,451)
  (3,756)
Gross profit
 
  206,006 
  169,854 
  61,822 
  48,280 
Net (loss) / gain from fair value adjustment of investment properties
8
  (377,718)
  (134,939)
  (589,529)
  1,438 
Gain / (loss) from disposal of farmlands
 
  6,254 
  2,670 
  (149)
  - 
General and administrative expenses
24
  (40,865)
  (47,321)
  (16,295)
  (15,979)
Selling expenses
24
  (36,297)
  (31,270)
  (11,585)
  (10,845)
Other operating results, net
25
  10,280 
  (20,071)
  1,927 
  (9,674)
Management fees
 
  (884)
  (9,048)
  7,664 
  (3,276)
(Loss) / Profit from operations
 
  (233,224)
  (70,125)
  (546,145)
  9,944 
Share of profit / (loss) of associates and joint ventures
7
  29,680 
  2,178 
  (452)
  (1,655)
(Loss) / Profit before financial results and income tax
 
  (203,544)
  (67,947)
  (546,597)
  8,289 
Finance income
26
  45,512 
  6,311 
  32,377 
  1,127 
Finance cost
26
  (47,293)
  (86,856)
  (18,972)
  (31,287)
Other financial results
26
  110,987 
  80,883 
  299,950 
  44,365 
Inflation adjustment
26
  (15,635)
  63,434 
  (119,158)
  8,032 
Financial 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 tax
21
  84,327 
  145,093 
  141,466 
  19,559 
(Loss) / Profit for the period
 
  (25,646)
  140,918 
  (210,934)
  50,085 
 
    
    
    
    
 
    
    
    
    
Other comprehensive income / (loss):
 
    
    
    
    
Items that may be reclassified subsequently to profit or loss:
    
    
    
    
Currency translation adjustment and other comprehensive results from associates and joint ventures (i)
 
  13,718 
  3,900 
  (194,357)
  17,691 
Revaluation surplus / (deficit)
 
  1,487 
  1,662 
  (114)
  185 
Total other comprehensive income / (loss) for the 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 holders of the parent
 
  22,340 
  79,463 
  (51,652)
  29,535 
Non-controlling interest
 
  (47,986)
  61,455 
  (159,282)
  20,550 
Total comprehensive income / (loss) attributable to:
 
    
    
    
    
Equity holders of the parent
 
  27,879 
  82,381 
  (121,302)
  36,649 
Non-controlling interest
 
  (38,320)
  64,099 
  (284,103)
  31,312 
Profit / (loss) for the period per share attributable to equity 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
Síndico Titular
Por Comisión Fiscalizadora
 
 
Alejandro G. Elsztain
Vice 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 shares
 
 
 Treasury shares
 
 
 Inflation adjustment of share capital and treasury shares (i)
 
 
 Warrants (ii)
 
 
 Share premium
 
 
 Additional paid-in capital from treasury shares
 
 
 Legal reserve
 
 
 Other reserves (iii)
 
 
 Retained earnings
 
 
 Subtotal
 
 
 Non-controlling interest
 
 
 Total 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/ (loss) for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  22,340 
  22,340 
  (47,986)
  (25,646)
Other 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 of results - Shareholders’ meeting
  - 
  - 
  - 
  - 
  - 
  - 
  6,711 
  49,734 
  (56,445)
  - 
  - 
  - 
Repurchase of treasury shares
  (1)
  1 
  - 
  - 
  - 
  - 
  - 
  (1,079)
  - 
  (1,079)
  (7,697)
  (8,776)
Reserve for share - based payments
  - 
  - 
  - 
  - 
  - 
  (470)
  - 
  122 
  - 
  (348)
  (640)
  (988)
Dividends distribution
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (77,779)
  (77,779)
  (96,386)
  (174,165)
Exercise of warrants (ii)
  1 
  - 
  9 
  (133)
  4,626 
  - 
  - 
  - 
  - 
  4,503 
  334 
  4,837 
Issuance of shares
  6 
  (6)
  - 
  - 
  - 
  (6,375)
  - 
  6,375 
  - 
  - 
  - 
  - 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (24,763)
  - 
  (24,763)
  41,422 
  16,659 
Other changes in shareholders' equity
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  3,773 
  (3,773)
  - 
  - 
  - 
Capitalization of irrevocable contributions
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  71 
  71 
Integration 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 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 comprehensive income for the period
  - 
  4,445 
  - 
  - 
  - 
  1,094 
  5,539 
Total comprehensive income for the period
  - 
  4,445 
  - 
  - 
  - 
  1,094 
  5,539 
Assignment of results - Shareholders’ meeting
  - 
  - 
  49,734 
  - 
  - 
  - 
  49,734 
Repurchase of treasury shares
  (1,079)
  - 
  - 
  - 
  - 
  - 
  (1,079)
Issuance of shares
  6,375 
  - 
  - 
  - 
  - 
  - 
  6,375 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  (24,763)
  (24,763)
Reserve for share-based payments
  477 
  - 
  - 
  - 
  - 
  (355)
  122 
Other 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
Síndico Titular
Por Comisión Fiscalizadora
 
 
Alejandro G. Elsztain
Vice 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 shares
 
 
 Treasury shares
 
 
 Inflation adjustment of share capital and treasury shares (i)
 
 
 Warrants
 
 
 Share premium
 
 
 Additional paid-in capital from treasury shares
 
 
 Legal reserve
 
 
 Other reserves (ii)
 
 
 Retained earnings
 
 
 Subtotal
 
 
 Non-controlling interest
 
 
 Total 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 for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  79,463 
  79,463 
  61,455 
  140,918 
Other 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 of results - Shareholders’ meeting
  - 
  - 
  - 
  - 
  - 
  - 
  8,687 
  144,109 
  (152,796)
  - 
  - 
  - 
Repurchase of treasury shares
  (18)
  18 
  - 
  - 
  - 
  - 
  - 
  (19,432)
  - 
  (19,432)
  (1,645)
  (21,077)
Reserve for share-based payments
  - 
  - 
  - 
  - 
  - 
  16 
  - 
  303 
  - 
  319 
  493 
  812 
Exercise of warrants
  1 
  - 
  13 
  (222)
  1,737 
  - 
  - 
  - 
  - 
  1,529 
  36 
  1,565 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  22,153 
  - 
  22,153 
  (29,598)
  (7,445)
Dividends distribution
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (20,941)
  (20,941)
  (39,066)
  (60,007)
Other changes in shareholders' equity
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (119)
  - 
  (119)
  (89)
  (208)
Incorporation 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 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 comprehensive income for the period
  - 
  1,174 
  - 
  - 
  1,744 
  2,918 
Total comprehensive income for the period
  - 
  1,174 
  - 
  - 
  1,744 
  2,918 
Assignment of results - Shareholders’ meeting
  - 
  - 
  - 
  144,109 
  - 
  144,109 
Repurchase of treasury shares
  (19,432)
  - 
  - 
  - 
  - 
  (19,432)
Reserve for share-based payments
  - 
  - 
  - 
  - 
  303 
  303 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  22,153 
  22,153 
Other changes in shareholders' equity
  - 
  151 
  - 
  - 
  (270)
  (119)
Balance 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
Síndico Titular
Por Comisión Fiscalizadora
 
 
Alejandro G. Elsztain
Vice 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 cash generated from operating activities before income tax paid
17
  66,559 
  32,887 
Income tax paid
 
  (5,863)
  (7,746)
Net cash generated from operating activities
 
  60,696 
  25,141 
Investing activities:
 
    
    
Proceeds from the sale of participation in joint ventures
 
  19,929 
  - 
Capital contributions to associates and joint ventures
 
  - 
  (78)
Proceeds from sales of intangible assets
 
  8 
  - 
Acquisition and improvement of investment properties
 
  (7,399)
  (8,134)
Proceeds from sales of investment properties
 
  30,150 
  70,868 
Acquisitions and improvements of property, plant and equipment
 
  (19,889)
  (39,916)
Payment of acquisitions of property, plant and equipment
 
  (33,328)
  - 
Acquisition of intangible assets
 
  (1,354)
  (768)
Proceeds from sales of property, plant and equipment
 
  45,776 
  35,688 
Dividends collected from associates and joint ventures
 
  496 
  1,738 
Proceeds from loans granted
 
  1,251 
  1,396 
Acquisitions of investments in financial assets
 
  (272,425)
  (89,163)
Proceeds from disposal of investments in financial assets
 
  322,572 
  96,490 
Interest received from financial assets
 
  10,714 
  361 
Payments of derivative financial instruments
 
  (1,147)
  1,804 
Prepayment for investment properties purchases
 
  - 
  (6,555)
Net cash generated from investing activities
 
  95,354 
  63,731 
Financing activities:
 
    
    
Borrowings, issuance and new placement of non-convertible notes
 
  214,653 
  228,738 
Payment of borrowings and non-convertible notes
 
  (181,504)
  (321,179)
Obtaining of short term loans, net
 
  4,230 
  32,320 
Interest paid
 
  (84,124)
  (83,097)
Capital contributions from non-controlling interest in subsidiaries
 
  5,851 
  - 
Lease liabilities paid
 
  (1,440)
  (1,183)
Repurchase of treasury shares
 
  (8,776)
  (21,077)
Dividends paid
 
  (143,840)
  (45,001)
Exercise of warrants
 
  4,837 
  1,565 
Repurchase 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 and cash equivalents at the beginning of the period
15
  122,008 
  235,832 
Foreign exchange gain on cash and unrealized fair value result for cash equivalents
 
  31,841 
  10,744 
Inflation 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
Síndico Titular
Por Comisión Fiscalizadora
 
 
Alejandro G. Elsztain
Vice 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 March 31, 2024 (nine months)
 
 
As of March 31, 2024 (twelve months)
 
Price 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 business (I)
 
 
 Urban Properties and Investment business (II)
 
 
 Total segment information
 
 
 Joint ventures (i)
 
 
 Adjustments (ii)
 
 
 Elimination of inter-segment transactions and non-reportable assets / liabilities (iii)
 
 
 Total Statement of Income and Other Comprehensive Income/ Financial 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 and changes in the fair value of biological assets and agricultural products at the point of harvest
  5,295 
  - 
  5,295 
  - 
  - 
  491 
  5,786 
Changes in the net realizable value of agricultural products after 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 value adjustment of investment properties
  (44)
  (377,736)
  (377,780)
  62 
  - 
  - 
  (377,718)
Gain from disposal of farmlands
  6,254 
  - 
  6,254 
  - 
  - 
  - 
  6,254 
General and administrative expenses
  (20,459)
  (20,744)
  (41,203)
  112 
  - 
  226 
  (40,865)
Selling expenses
  (25,123)
  (11,961)
  (37,084)
  95 
  - 
  692 
  (36,297)
Other operating results, net
  14,132 
  (4,052)
  10,080 
  (15)
  313 
  (98)
  10,280 
Management fees
  - 
  - 
  - 
  - 
  (884)
  - 
  (884)
Profit / (loss) from operations
  37,241 
  (268,495)
  (231,254)
  (569)
  (1,401)
  - 
  (233,224)
Share of profit / (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 assets
  726,619 
  1,559,427 
  2,286,046 
  4,311 
  - 
  695,567 
  2,985,924 
Reportable liabilities (*)
  - 
  - 
  - 
  - 
  - 
  (1,651,441)
  (1,651,441)
Net 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 assets / liabilities (iii)
 
 
 Total Statement of Income and Other Comprehensive Income/ 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 recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  (3,270)
  - 
  (3,270)
  - 
  - 
  672 
  (2,598)
Changes in the net realizable value of agricultural products after harvest
  (1,598)
  - 
  (1,598)
  - 
  - 
  - 
  (1,598)
Gross profit / (loss)
  33,985 
  138,557 
  172,542 
  (515)
  (751)
  (1,422)
  169,854 
Net loss from fair value adjustment of investment properties
  (287)
  (138,044)
  (138,331)
  3,392 
  - 
  - 
  (134,939)
Gain from disposal of farmlands
  2,670 
  - 
  2,670 
  - 
  - 
  - 
  2,670 
General and administrative expenses
  (18,525)
  (29,354)
  (47,879)
  144 
  - 
  414 
  (47,321)
Selling expenses
  (21,080)
  (11,376)
  (32,456)
  60 
  - 
  1,126 
  (31,270)
Other operating results, net
  (1,621)
  (18,664)
  (20,285)
  (74)
  382 
  (94)
  (20,071)
Management fees
  - 
  - 
  - 
  - 
  (9,048)
  - 
  (9,048)
(Loss) / profit from operations
  (4,858)
  (58,881)
  (63,739)
  3,007 
  (9,417)
  24 
  (70,125)
Share 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 assets
  693,340 
  1,995,222 
  2,688,562 
  (12,098)
  - 
  611,556 
  3,288,020 
Reportable 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 production
 
 
 Land transformation and sales
 
 
 Corporate
 
 
 Others
 
 
 Total Agricultural business
 
Revenues
  163,884 
  - 
  - 
  74,677 
  238,561 
Costs
  (138,555)
  (146)
  - 
  (45,721)
  (184,422)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  5,295 
  - 
  - 
  - 
  5,295 
Changes in the net realizable value of agricultural products after harvest
  3,047 
  - 
  - 
  - 
  3,047 
Gross profit / (loss)
  33,671 
  (146)
  - 
  28,956 
  62,481 
Net loss from fair value adjustment of investment properties
  - 
  (44)
  - 
  - 
  (44)
Gain from disposal of farmlands
  - 
  6,254 
  - 
  - 
  6,254 
General and administrative expenses
  (11,959)
  (37)
  (2,665)
  (5,798)
  (20,459)
Selling expenses
  (17,164)
  (82)
  - 
  (7,877)
  (25,123)
Other operating results, net
  6,373 
  3,876 
  - 
  3,883 
  14,132 
Profit / (loss) from operations
  10,921 
  9,821 
  (2,665)
  19,164 
  37,241 
Share of profit / (loss) of associates and joint ventures
  2,783 
  - 
  - 
  (1,677)
  1,106 
Segment profit / (loss)
  13,704 
  9,821 
  (2,665)
  17,487 
  38,347 
 
    
    
    
    
    
Investment properties
  - 
  69,468 
  - 
  - 
  69,468 
Property, plant and equipment
  430,554 
  1,067 
  - 
  3,035 
  434,656 
Investments in associates
  7,901 
  - 
  - 
  1,567 
  9,468 
Other reportable assets
  165,431 
  6,075 
  - 
  41,521 
  213,027 
Reportable assets
  603,886 
  76,610 
  - 
  46,123 
  726,619 
 
 
 
 
03.31.2023
 
 
 
 Agricultural production
 
 
 Land transformation and sales
 
 
 Corporate
 
 
 Others
 
 
 Total Agricultural business
 
Revenues
  154,512 
  - 
  - 
  67,144 
  221,656 
Costs
  (140,094)
  (202)
  - 
  (42,507)
  (182,803)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  (3,270)
  - 
  - 
  - 
  (3,270)
Changes in the net realizable value of agricultural products after harvest
  (1,598)
  - 
  - 
  - 
  (1,598)
Gross profit / (loss)
  9,550 
  (202)
  - 
  24,637 
  33,985 
Net loss from fair value adjustment of investment properties
  - 
  (287)
  - 
  - 
  (287)
Gain from disposal of farmlands
  - 
  2,670 
  - 
  - 
  2,670 
General and administrative expenses
  (9,732)
  (31)
  (3,343)
  (5,419)
  (18,525)
Selling expenses
  (15,022)
  (19)
  - 
  (6,039)
  (21,080)
Other operating results, net
  361 
  (3,444)
  - 
  1,462 
  (1,621)
(Loss) / profit from operations
  (14,843)
  (1,313)
  (3,343)
  14,641 
  (4,858)
Share of loss of associates and joint ventures
  (803)
  - 
  - 
  (2,362)
  (3,165)
Segment (loss) / profit
  (15,646)
  (1,313)
  (3,343)
  12,279 
  (8,023)
 
    
    
    
    
    
Investment properties
  - 
  96,005 
  - 
  - 
  96,005 
Property, plant and equipment
  365,505 
  1,862 
  - 
  3,184 
  370,551 
Investments in associates
  5,206 
  - 
  - 
  3,223 
  8,429 
Other 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 value adjustment of investment properties (i)
  (13,282)
  (113,238)
  (251,179)
  - 
  (37)
  (377,736)
General and administrative expenses
  (14,292)
  (1,354)
  (5,658)
  (6,056)
  6,616 
  (20,744)
Selling expenses
  (5,837)
  (288)
  (2,542)
  (2,866)
  (428)
  (11,961)
Other 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 associates and joint ventures
  - 
  - 
  - 
  - 
  28,272 
  28,272 
Segment profit / (loss)
  72,023 
  (104,797)
  (259,274)
  15,646 
  36,179 
  (240,223)
 
    
    
    
    
    
    
Investment and trading properties
  572,683 
  227,432 
  572,191 
  - 
  2,263 
  1,374,569 
Property, plant and equipment
  1,819 
  289 
  (16,012)
  28,642 
  2,583 
  17,321 
Investment in associates and joint ventures
  - 
  - 
  - 
  - 
  117,922 
  117,922 
Other 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 value adjustment of investment properties
  (40,796)
  (18,307)
  (78,611)
  - 
  (330)
  (138,044)
General and administrative expenses
  (14,297)
  (1,854)
  (5,283)
  (5,434)
  (2,486)
  (29,354)
Selling expenses
  (5,240)
  (221)
  (3,297)
  (2,370)
  (248)
  (11,376)
Other 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 associates and joint ventures
  - 
  - 
  - 
  - 
  7,466 
  7,466 
Segment profit / (loss)
  40,113 
  (10,189)
  (81,645)
  10,426 
  (10,120)
  (51,415)
 
    
    
    
    
    
    
Investment and trading properties
  580,768 
  378,052 
  861,496 
  - 
  2,541 
  1,822,857 
Property, plant and equipment
  1,482 
  11,178 
  16,089 
  29,172 
  2,769 
  60,690 
Investment in associates and joint ventures
  - 
  - 
  - 
  - 
  85,238 
  85,238 
Other 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 capital increase and contributions (Note 27)
  - 
  171 
Sale of interest in joint ventures (Note 27)
  (22,022)
  - 
Share of profit
  29,680 
  4,944 
Other comprehensive income
  404 
  158 
Dividends (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 Lipstick
  49.96%
  49.96%
  1,011 
  761 
  74 
  (23)
BHSA
  29.91%
  29.91%
  98,118 
  74,947 
  23,171 
  5,667 
GCDI (2)
  27.39%
  27.82%
  2,644 
  6,001 
  (3,230)
  (582)
Quality (1)
  - 
  50.00%
  - 
  21,896 
  - 
  (2,552)
La Rural S.A.
  50.00%
  50.00%
  10,272 
  3,804 
  6,467 
  2,432 
Other 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 Lipstick
U.S.
Real estate
  23,631,037 
  (*) 47 
  (*) (2) 
  (*) (46) 
BHSA
Argentina
Financing
  448,689,072 
  (**) 1,500 
  (**) 77,461 
  (**) 320,860 
GCDI (2)
Argentina
Real estate
  250,713,162 
  915 
  (10,557)
  9,653 
La Rural S.A.
Argentina
Organization of 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 loss from fair value adjustment
  (374,317)
  (3,401)
  (132,488)
  (29,445)
Additions of capitalized leasing costs
  6 
  58 
  42 
  160 
Amortization of capitalized leasing costs (i)
  (95)
  (105)
  (57)
  (53)
Currency 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 out farmland
  69,468 
  82,278 
Offices and other rental properties
  237,603 
  383,884 
Shopping malls (i)
  572,679 
  581,468 
Undeveloped parcels of land
  516,531 
  787,725 
Properties 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 operating expenses
  (51,700)
  (54,639)
Development expenses
  (850)
  (589)
Net unrealized loss from fair value adjustment of investment property (i)
  (399,278)
  (172,822)
Net realized gain from fair value adjustment of investment property (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 occupied farmland
 
 
 Bearer plant (iii)
 
 
 Buildings and facilities
 
 
 Machinery and equipment
 
 
 Others (i)
 
 
 03.31.2024
 
 
 06.30.2023
 
Costs
  397,045 
  31,909 
  101,366 
  34,425 
  20,447 
  585,192 
  515,203 
Accumulated depreciation
  (33,889)
  (18,102)
  (34,889)
  (31,044)
  (11,175)
  (129,099)
  (113,725)
Net 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 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 held for sale
  (6,196)
  - 
  - 
  - 
  - 
  (6,196)
  - 
Depreciation charges (ii)
  (5,435)
  (3,401)
  (3,194)
  (1,066)
  (1,213)
  (14,309)
  (15,374)
Balances 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 depreciation
  (39,324)
  (21,503)
  (38,083)
  (32,110)
  (12,388)
  (143,408)
  (129,099)
Net 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 properties
 
 
 Properties under development
 
 
 Undeveloped 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 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 systems and software
 
 
 Future 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 amortization
  - 
  (11,466)
  (7,013)
  (18,479)
  (16,780)
Net 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 translation adjustment
  15 
  20 
  - 
  35 
  62 
Amortization charges (i)
  - 
  (797)
  (154)
  (951)
  (1,699)
Balances 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 amortization
  - 
  (12,263)
  (7,167)
  (19,430)
  (18,479)
Net 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 center
  7,410 
  7,765 
Offices, shopping malls and other buildings
  4,525 
  2,586 
Machinery and equipment
  1,836 
  631 
Right-of-use 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 center
  353 
  324 
Offices, shopping malls and other buildings
  852 
  383 
Machinery and equipment
  479 
  201 
Depreciation 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 1
 
 
Level 3
 
 
Level 3
 
 
Level 2
 
 
Level 2
 
 
Level 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 recognition and changes in the fair value of biological assets
  - 
  12,412 
  (3,620)
  (2,975)
  (191)
  - 
  5,626 
  (4,220)
Decrease 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 for the period / year
  11,663 
  105,106 
  30,499 
  11,772 
  - 
  8 
  159,048 
  216,656 
Currency 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 (Production)
  - 
  - 
  - 
  27,240 
  213 
  304 
  27,757 
  29,156 
Current (Consumable)
  44,185 
  28,073 
  15,723 
  8,689 
  97 
  2 
  96,769 
  58,578 
Net 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 and labors
  121,266 
  149,450 
Salaries, social security costs and other personnel expenses
  7,988 
  6,578 
Depreciation and amortization
  17,492 
  17,501 
Fees and payments for services
  479 
  345 
Maintenance, security, cleaning, repairs and others
  1,136 
  1,043 
Taxes, rates and contributions
  129 
  221 
Leases and service charges
  79 
  54 
Freights
  868 
  1,133 
Travelling, library expenses and stationery
  854 
  842 
Other 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 supplies
  40,642 
  46,761 
Sugarcane
  1,237 
  633 
Agricultural inventories
  82,223 
  87,790 
Supplies for hotels
  574 
  626 
Total 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 assets at fair value through profit or loss
 
   
   
   
 
 
 Financial assets at amortized cost
 
 
 Level 1
 
 
 Level 2
 
 
 Level 3
 
 
 Subtotal financial assets
 
 
 Non-financial assets
 
 
 Total
 
March 31, 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 16)
  227,578 
  38,532 
  - 
  - 
  266,110 
  71,415 
  337,525 
Investment in financial assets:
    
    
    
    
    
    
    
 - Public companies’ securities
  - 
  16,150 
  - 
  - 
  16,150 
  - 
  16,150 
 - Bonds
  - 
  42,327 
  - 
  - 
  42,327 
  - 
  42,327 
 - Mutual funds
  - 
  71,837 
  86 
  - 
  71,923 
  - 
  71,923 
 - Others
  4,753 
  15,589 
  - 
  332 
  20,674 
  - 
  20,674 
Derivative financial instruments:
    
    
    
    
    
    
    
 - Commodities options contracts
  - 
  7,280 
  - 
  - 
  7,280 
  - 
  7,280 
 - Commodities futures contracts
  - 
  390 
  - 
  - 
  390 
  - 
  390 
 - Bonds futures contracts
  - 
  15 
  - 
  - 
  15 
  - 
  15 
 - Foreign-currency options contracts
  - 
  694 
  - 
  - 
  694 
  - 
  694 
 - Foreign-currency future contracts
  - 
  3,289 
  - 
  - 
  3,289 
  - 
  3,289 
 - Swaps
  - 
  - 
  133 
  - 
  133 
  - 
  133 
 - Others
  - 
  2,545 
  - 
  - 
  2,545 
  - 
  2,545 
Restricted assets (i)
  3,990 
  - 
  - 
  - 
  3,990 
  - 
  3,990 
Cash and cash equivalents (excluding bank overdrafts):
    
    
    
    
    
    
    
 - Cash on hand and at bank
  45,325 
  - 
  - 
  - 
  45,325 
  - 
  45,325 
 - Short-term investments
  - 
  58,328 
  - 
  - 
  58,328 
  - 
  58,328 
Total 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 liabilities at fair value through profit or loss
 
   
 
Non-financial liabilities
 
 
Total
 
 
 
Financial liabilities at amortized cost
 
 
 Level 1
 
 
Subtotal financial liabilities
 
 
 
 
 
 
 
March 31, 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 18)
  160,355 
  - 
  160,355 
  88,339 
  248,694 
Borrowings (Note 20)
  775,970 
  - 
  775,970 
  - 
  775,970 
Derivative financial instruments:
    
    
    
    
    
 - Commodities options contracts
  - 
  2,925 
  2,925 
  - 
  2,925 
 - Commodities futures contracts
  - 
  1,842 
  1,842 
  - 
  1,842 
 - Foreign-currency options contracts
  - 
  767 
  767 
  - 
  767 
 - Foreign-currency future contracts
  - 
  106 
  106 
  - 
  106 
 - Swaps
  - 
  23 
  23 
  - 
  23 
Total 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 assets at fair value through profit or loss
 
   
   
   
 
 
 Financial assets at amortized cost
 
 
 Level 1
 
 
 Level 2
 
 
 Subtotal financial assets
 
 
 Non-financial assets
 
 
 Total
 
June 30, 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 16)
  231,456 
  46,533 
  - 
  277,989 
  76,235 
  354,224 
Investment in financial assets:
    
    
    
    
    
    
 - Public companies’ securities
  - 
  15,811 
  - 
  15,811 
  - 
  15,811 
 - Bonds
  - 
  40,843 
  2,405 
  43,248 
  - 
  43,248 
 - Mutual funds
  - 
  78,446 
  - 
  78,446 
  - 
  78,446 
 - Others
  4,482 
  1,797 
  - 
  6,279 
  - 
  6,279 
Derivative financial instruments:
    
    
    
    
    
    
 - Commodities options contracts
  - 
  655 
  - 
  655 
  - 
  655 
 - Commodities futures contracts
  - 
  6,461 
  - 
  6,461 
  - 
  6,461 
 - Foreign-currency options contracts
  - 
  864 
  - 
  864 
  - 
  864 
 - Foreign-currency future contracts
  - 
  5,555 
  - 
  5,555 
  - 
  5,555 
 - Swaps
  - 
  - 
  874 
  874 
  - 
  874 
 - Others
  - 
  6,126 
  - 
  6,126 
  - 
  6,126 
Restricted assets (i)
  3,767 
  - 
  - 
  3,767 
  - 
  3,767 
Cash and cash equivalents (excluding bank overdrafts):
    
    
    
    
    
    
 - Cash on hand and at bank
  29,033 
  - 
  - 
  29,033 
  - 
  29,033 
 - Short-term investments
  - 
  92,975 
  - 
  92,975 
  - 
  92,975 
Total assets
  268,738 
  296,066 
  3,279 
  568,083 
  76,235 
  644,318 
 
 
 
   
 
Financial liabilities at fair value through profit or loss
 
   
 
Non-financial liabilities
 
 
Total
 
 
 
Financial liabilities at amortized cost
 
 
 Level 1
 
 
Subtotal financial liabilities
 
 
 
 
 
 
 
June 30, 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 18)
  193,428 
  - 
  193,428 
  96,854 
  290,282 
Borrowings (Note 20)
  821,144 
  - 
  821,144 
  - 
  821,144 
Derivative financial instruments:
    
    
    
    
    
 - Commodities options contracts
  - 
  2,539 
  2,539 
  - 
  2,539 
 - Commodities futures contracts
  46 
  1,051 
  1,097 
  - 
  1,097 
 - Foreign-currency future contracts
  - 
  396 
  396 
  - 
  396 
 - Swaps
  - 
  18 
  18 
  - 
  18 
Total 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 financial instruments – Swaps
Theoretical price
Underlying asset price and volatility
Level 2
  - 
Purchase option – Warrant (Others)
Black & Scholes with dilution
Underlying asset price and volatility
Level 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 services receivable (*)
  219,721 
  232,464 
Less: allowance for doubtful accounts
  (3,640)
  (4,739)
Total trade receivables
  216,081 
  227,725 
Prepayments
  40,348 
  41,715 
Borrowings, deposits and others
  31,128 
  29,873 
Contributions pending integration
  - 
  142 
Guarantee deposits
  67 
  35 
Tax receivables
  25,989 
  26,132 
Others
  20,272 
  23,863 
Total other receivables
  117,804 
  121,760 
Total 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 of the period/ year
  4,739 
  6,931 
Additions (i)
  654 
  1,024 
Recovery (i)
  (171)
  (414)
Currency translation adjustment
  2,437 
  1,184 
Used during the year
  - 
  (11)
Inflation adjustment
  (4,019)
  (3,975)
End 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 tax
21
  (84,327)
  (145,093)
Amortization and depreciation
24
  6,635 
  6,202 
Gain from disposal of trading properties
 
  (3,418)
  (7,641)
Loss from disposal of property, plant and equipment
 
  1,601 
  2,113 
Realization of currency translation adjustment
 
  - 
  (1,343)
Net loss from fair value adjustment of investment properties
 
  377,718 
  134,939 
Loss from disposal of subsidiary and associates
 
  1,210 
  - 
Financial results, net
 
  (123,122)
  (37,914)
Provisions and allowances
 
  (98)
  30,037 
Share of profit of associates and joint ventures
7
  (29,680)
  (2,178)
Management fees
 
  884 
  9,048 
Changes in net realizable value of agricultural products after harvest
 
  (3,047)
  1,598 
Unrealized initial recognition and changes in fair value of biological assets and agricultural products at the point of harvest
 
  (23,466)
  (7,998)
Gain from disposal of farmlands
 
  (6,254)
  (2,670)
Changes in operating assets and liabilities:
 
    
    
Decrease in inventories
 
  2,829 
  10,969 
(Increase)/ decrease in trading properties
 
  (217)
  400 
Decrease/ (increase) in biological assets
 
  8,153 
  (167)
Decrease in trade and other receivables
 
  12,963 
  39,834 
Decrease in trade and other payables
 
  (33,595)
  (119,146)
Decrease in salaries and social security liabilities
 
  (10,569)
  (10,903)
Decrease in provisions
 
  (331)
  (140)
Decrease in lease liabilities
 
  (5,238)
  (7,377)
Net variation in derivative financial instruments
 
  3,572 
  (593)
Decrease/ (increase) in right of use assets
 
  2 
  (8)
Net cash generated from operating activities before income tax 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 in investment properties through an increase in trade and other payables
  - 
  109 
Decrease in investment properties through an increase in property, plant and equipment
  10,486 
  58 
Currency translation adjustment and other comprehensive results from associates and joint ventures
  4,445 
  1,174 
Other changes in shareholders' equity
  15,671 
  22,935 
Increase of non-convertible notes through a decrease in non-convertible notes
  - 
  196,743 
Decrease in lease liabilities through a decrease in trade and other receivables
  43 
  - 
Decrease in property, plant and equipment through an increase in investment properties
  7,232 
  13,812 
Increase in shareholders' equity through an increase in investment properties
  2,275 
  3,103 
Increase in deferred income tax liabilities through a decrease in shareholders' equity
  475 
  1,078 
Decrease in trading properties through an increase in intangible assets
  - 
  1,575 
Decrease in property, plant and equipment through an increase in shareholders' equity
  - 
  826 
Decrease in investment properties through an increase in investment in financial assets
  - 
  244 
Decrease in investment in financial assets through a decrease in trade and other payables
  - 
  1,152 
Increase in investment in financial assets through a decrease in trade and other receivables
  284 
  31 
Increase in property, plant and equipment through an increase in trade and other payables
  8,249 
  23,629 
Decrease in property, plant and equipment through an increase in trade and other receivables
  1,870 
  31 
Increase in investment in financial assets through an increase in borrowings
  1,382 
  - 
Decrease in shareholders' equity through a decrease in investment in financial assets
  - 
  9,698 
Increase in right of use assets through an increase in lease liabilities
  11,900 
  12,524 
Increase in investment in associates and joint ventures through a decrease in trade and other receivables
  - 
  93 
Increase in intangible assets through a decrease in investment properties
  23,120 
  - 
Increase in intangible assets through an increase in trade and other payables
  6,658 
  - 
Decrease in investment in associates and joint ventures through an increase in trade and other receivables
  1,136 
  - 
Decrease in investment properties through an increase in trade and other receivables
  2,509 
  - 
Barter transaction investment properties
  594 
  - 
Decrease in shareholders' equity through an increase in trade and other payables
  4,144 
  - 
Increase in group of assets held for sale through a decrease in property, plant and equipment
  6,075 
  - 
Decrease in shareholders' equity through a decrease in trade and other 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 payables
  129,175 
  115,254 
Advances from sales, leases and services (*)
  50,090 
  51,454 
Accrued invoices
  9,433 
  12,298 
Deferred income
  413 
  456 
Admission fees (*)
  23,821 
  25,602 
Deposits in guarantee
  517 
  442 
Total trade payables
  213,449 
  205,506 
Dividends payable to non-controlling interests
  795 
  8,558 
Tax payables
  14,012 
  19,340 
Director´s Fees
  4,768 
  37,117 
Management fees
  884 
  9,797 
Others
  14,786 
  9,964 
Total other payables
  35,245 
  84,776 
Total 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 claims (iii)
 
 
 Investments in associates and joint ventures (ii)
 
 
 03.31.2024
 
 
 06.30.2023
 
Beginning of period/ year
  22,969 
  3 
  22,972 
  4,857 
Additions (i)
  5,233 
  - 
  5,233 
  25,414 
Decreases (i)
  (266)
  - 
  (266)
  (1,182)
Participation in the results
  - 
  8 
  8 
  (48)
Inflation adjustment
  (3,951)
  - 
  (3,951)
  (5,856)
Currency translation adjustment
  7 
  - 
  7 
  35 
Used during the period / year
  (331)
  - 
  (331)
  (248)
End 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 value
 
 
Fair value
 
 
 
 03.31.2024
 
 
 06.30.2023
 
 
 03.31.2024
 
 
 06.30.2023
 
Non-convertible notes
  695,466 
  657,567 
  688,180 
  670,494 
Bank loans
  63,452 
  86,161 
  63,452 
  86,161 
Bank overdrafts
  6,207 
  61,967 
  6,207 
  61,967 
Others
  10,845 
  15,449 
  10,845 
  15,449 
Total 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 income tax
  (66,007)
  52,008 
Deferred 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 calculated at the tax rates applicable to profits in the respective countries
  61,121 
  1,489 
Permanent differences:
    
    
Share of profit of joint ventures and associates
  (6,229)
  (322)
Tax rate differential
  (13,403)
  (178)
Provision for unrecoverability of tax loss carry-forwards
  (1,736)
  (9,491)
Difference between affidavit and provision
  (400)
  15,507 
Non-taxable profit, non-deductible expenses and others
  16,684 
  59,565 
Tax inflation adjustment
  (48,237)
  (37,301)
Fiscal transparency
  (3,836)
  (5,007)
Inflation 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 translation adjustment
  (1,332)
  (2,924)
Revaluation surplus
  (787)
  (1,307)
Charged 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 and brokerage fees
  10,219 
  12,336 
Agricultural rental and other services
  8,010 
  4,367 
Income from sales and services from agricultural business
  237,321 
  219,800 
Trading properties and developments
  5,830 
  9,490 
Rental and services
  164,072 
  163,375 
Hotel operations, tourism services and others
  43,590 
  35,867 
Income from sales and services from urban properties and investment business
  213,492 
  208,732 
Total revenues
  450,813 
  428,532 
 
23.
Costs
 
 
 
 03.31.2024
 
 
 03.31.2023
 
Other 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 and brokerage fees
  10,309 
  7,952 
Agricultural rental and other services
  4,425 
  2,397 
Cost of sales and services from agricultural business
  184,276 
  182,601 
Trading properties and developments
  3,740 
  2,237 
Rental and services
  47,275 
  52,242 
Hotel operations, tourism services and others
  18,200 
  17,197 
Cost of sales and services from sales and services from urban 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 and administrative expenses
 
 
 Selling expenses
 
 
 03.31.2024
 
 
 03.31.2023
 
Change in agricultural products and biological assets
  114,090 
  - 
  - 
  114,090 
  119,557 
Salaries, social security costs and other personnel expenses
  34,685 
  27,969 
  3,855 
  66,509 
  59,255 
Fees and payments for services
  26,148 
  7,066 
  1,776 
  34,990 
  32,181 
Cost of sale of goods and services
  37,126 
  - 
  - 
  37,126 
  34,132 
Maintenance, security, cleaning, repairs and others
  19,807 
  3,190 
  50 
  23,047 
  22,605 
Taxes, rates and contributions
  3,904 
  2,888 
  14,511 
  21,303 
  19,696 
Advertising and other selling expenses
  8,656 
  56 
  1,917 
  10,629 
  12,873 
Freights
  18 
  312 
  8,362 
  8,692 
  7,304 
Director's fees (i)
  - 
  (5,548)
  - 
  (5,548)
  8,805 
Depreciation and amortization
  4,253 
  1,910 
  472 
  6,635 
  6,202 
Leases and service charges
  1,346 
  574 
  61 
  1,981 
  2,273 
Travelling, library expenses and stationery
  1,199 
  785 
  430 
  2,414 
  1,920 
Supplies and labors
  858 
  - 
  2,669 
  3,527 
  877 
Other expenses
  695 
  340 
  265 
  1,300 
  2,417 
Bank expenses
  117 
  1,291 
  - 
  1,408 
  1,094 
Conditioning and clearance
  - 
  - 
  1,434 
  1,434 
  811 
Interaction and roaming expenses
  738 
  32 
  12 
  782 
  582 
Allowance 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 from commodity derivative financial instruments
  8,184 
  892 
Loss from sale of property, plant and equipment
  (1,601)
  (2,113)
Realization of currency translation adjustment (i)
  - 
  1,343 
Loss from sale of joint ventures
  (1,210)
  - 
Donations
  (350)
  (454)
Lawsuits and other contingencies
  (4,967)
  (20,743)
Interest and allowances generated by operating assets
  8,504 
  (1,479)
Administration 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 income
  45,512 
  6,311 
Total financial income
  45,512 
  6,311 
Financial costs
    
    
Interest expense
  (39,993)
  (80,908)
Other financial costs
  (7,300)
  (5,948)
Total finance costs
  (47,293)
  (86,856)
Other financial results:
    
    
Foreign exchange, net
  (12,379)
  54,655 
Fair value gain from financial assets and liabilities at fair value through profit or loss
  152,203 
  19,548 
(Loss)/ gain from repurchase of non-convertible notes
  (59)
  3,324 
(Loss)/ gain from derivative financial instruments (except commodities)
  (26,086)
  4,991 
Others
  (2,692)
  (1,635)
Total other financial results
  110,987 
  80,883 
Inflation 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 and other receivables
  22,579 
  25,961 
Investments in financial assets
  3,781 
  4,058 
Trade 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 party
 
 03.31.2024
 
 
 06.30.2023
 
Description of transaction
Item
New Lipstick
  208 
  194 
Reimbursement of expenses
Trade and other receivables
Other associates and joint ventures (i)
  37 
  38 
Leases and/or right of use assets receivable
Trade and other receivables
 
  - 
  141 
Contributions pending subscription
Trade and other receivables
 
  1,866 
  1,752 
Other investments
Investments in financial assets
 
  (441)
  (420)
Non-convertible notes
Borrowings
 
  1 
  3 
Equity incentive plan receivable
Trade and other receivables
 
  1,494 
  2,494 
Loans granted
Trade and other receivables
 
  (493)
  (269)
Borrowings
Borrowings
 
  - 
  3 
Reimbursement of expenses
Trade and other receivables
 
  4 
  85 
Management fees receivable
Trade and other receivables
 
  (63)
  (649)
Other payables
Trade and other payables
 
  3,066 
  4,982 
Other receivables
Trade and other receivables
Total associates and joint ventures
  5,679 
  8,354 
 
 
CAMSA and its subsidiaries
  (884)
  (9,797)
Management fee payables
Trade and other payables
Yad Levim LTD
  16,373 
  14,850 
Loans granted
Trade and other receivables
Sociedad Rural Argentina
  (8,674)
  (296)
Other payables
Trade and other payables
 
  - 
  1,593 
Other receivables
Trade and other receivables
Other related parties (ii)
  1,099 
  24 
Other receivables
Trade and other receivables
 
  (126)
  (93)
Other payables
Trade and other payables
 
  1,915 
  2,306 
Other investments
Investments in financial assets
 
  26 
  78 
Reimbursement of expenses receivable
Trade and other receivables
 
  (31)
  (28)
Legal services
Trade and other payables
Total other related parties
  9,698 
  8,637 
 
 
IFISA
  271 
  1,476 
Financial operations receivables
Trade and other receivables
Total direct parent company
  271 
  1,476 
 
 
Directors and Senior Management
  (4,786)
  (37,572)
Fees for services received
Trade and other 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 operations
BHN Vida S.A.
  (37)
  (4)
Financial operations
BHN Seguros Generales S.A.
  (12)
  (4)
Financial operations
Other associates and joint ventures
  (3)
  (144)
Leases and/or right of use assets
 
  162 
  217 
Corporate services
 
  1,345 
  268 
Financial operations
Total associates and joint ventures
  1,455 
  345 
 
CAMSA and its subsidiaries
  (884)
  (9,048)
Management fee
Sociedad Rural Argentina
  432 
  117 
Financial operations
Other related parties (i)
  (75)
  (50)
Leases and/or rights of use
 
  (696)
  (229)
Fees and remunerations
 
  39 
  27 
Corporate services
 
  (266)
  1,024 
Legal services
 
  3,447 
  (253)
Financial operations
 
  (696)
  (310)
Donations
 
  1,003 
  559 
Income from sales and services from agricultural business
Total other related parties
  2,304 
  (8,163)
 
IFISA
  6 
  70 
Financial operations
Total Parent Company
  6 
  70 
 
Directors (ii)
  3,734 
  (6,551)
Management fee
Senior Management
  (398)
  (407)
Compensation 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 contributions
Total irrevocable contributions
  - 
  (171)
 
Agro-Uranga S.A.
  - 
  628 
Dividends received
Uranga Trading S.A.
  125 
  109 
Dividends received
Condor
  - 
  325 
Dividends received
Nuevo Puerto Santa Fe S.A.
  373 
  675 
Dividends received
Total dividends received
  498 
  1,737 
 
Quality
  (21,896)
  - 
Sale of shares
GCDI
  (126)
  - 
Sale of shares
Total 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 - 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 (i)
 
 
Cost of sales and services from sales and services from urban 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 recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  (743)
  - 
  (743)
  3,925 
Changes in the net realizable value of agricultural products after harvest
  3,047 
  - 
  3,047 
  (1,590)
Additions
  293 
  - 
  293 
  2,459 
Currency translation adjustment
  (12,836)
  393 
  (12,443)
  (950)
Harvest
  171,833 
  - 
  171,833 
  149,097 
Acquisitions and classifications
  88,606 
  70,227 
  158,833 
  180,867 
Consume
  (27,584)
  - 
  (27,584)
  (33,205)
Disposals due to sales
  - 
  (2,412)
  (2,412)
  (1,462)
Expenses 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 Dollar
  106.74 
  855.00 
  91,264 
  66,722 
Euros
  0.08 
  924.17 
  74 
  72 
Uruguayan pesos
  - 
  - 
  - 
  3 
Trade and other receivables related parties
    
    
    
    
US Dollar
  20.63 
  858.00 
  17,700 
  16,401 
Total Trade and other receivables
    
    
  109,038 
  83,198 
Investment in financial assets
    
    
    
    
US Dollar
  101.81 
  855.00 
  87,045 
  73,202 
Brazilian Reais
  - 
  - 
  - 
  573 
New 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 Dollar
  4.41 
  858.00 
  3,781 
  - 
Total Investment in financial assets
    
    
  92,496 
  75,612 
Derivative financial instruments
    
    
    
    
US Dollar
  1.74 
  855.00 
  1,486 
  6,652 
Total Derivative financial instruments
    
    
  1,486 
  6,652 
Cash and cash equivalents
    
    
    
    
US Dollar
  50.05 
  855.00 
  42,793 
  36,386 
Chilenean pesos
  61.71 
  0.88 
  54 
  - 
Euros
  0.01 
  924.17 
  6 
  6 
Guaraníes
  77.59 
  0.12 
  9 
  - 
Brazilian Reais
  0.39 
  176.00 
  68 
  - 
New Israel Shekel
  - 
  - 
  - 
  81 
Pounds
  0.003 
  1,079.18 
  3 
  3 
Uruguayan 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 Dollar
  70.53 
  858.00 
  60,514 
  34,760 
Euros
  - 
  - 
  - 
  3 
Uruguayan pesos
  80.13 
  22.85 
  1,831 
  38 
Brazilian Reais
  0.11 
  186.00 
  21 
  - 
Trade and other payables related parties
    
    
    
    
US Dollar
  10.05 
  858.00 
  8,625 
  60 
Bolivian pesos
  0.34 
  124.48 
  42 
  - 
Total Trade and other payables
    
    
  71,033 
  34,861 
Lease liabilities
    
    
    
    
US Dollar
  13.42 
  858.00 
  11,513 
  10,275 
Total Lease liabilities
    
    
  11,513 
  10,275 
Provisions
    
    
    
    
New Israel Shekel
  82.20 
  233.29 
  19,176 
  17,347 
Total Provisions
    
    
  19,176 
  17,347 
Borrowings
    
    
    
    
US Dollar
  625.51 
  858.00 
  536,686 
  581,649 
Borrowings with related parties
    
    
    
    
US Dollar
  1.25 
  858.00 
  1,076 
  978 
Total Borrowings
    
    
  537,762 
  582,627 
Derivative financial instruments
    
    
    
    
US 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.
(Partner)
 
C.P.C.E.C.A.B.A. V° 1 F° 17
 
Carlos Brondo
Public Accountant (UNCUYO)
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 recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  5,786 
  (2,598)
  - 
Changes in the net realizable value of agricultural produce after harvest
  3,047 
  (1,598)
  - 
Gross profit
  206,006 
  169,854 
  21.3%
Net gain from fair value adjustment on investment properties
  (377,718)
  (134,939)
  179.9%
Gain from disposal of farmlands
  6,254 
  2,670 
  134.2%
General and administrative expenses
  (40,865)
  (47,321)
  (13.6)%
Selling expenses
  (36,297)
  (31,270)
  16.1%
Other operating results, net
  10,280 
  (20,071)
  - 
Management Fee
  (884)
  (9,048)
  (90.2)%
Result from operations
  (233,224)
  (70,125)
  232.6%
Depreciation and Amortization
  24,127 
  23,703 
  1.8%
Rights 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 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 results, net
  93,571 
  63,772 
  46.7%
Result before income tax
  (109,973)
  (4,175)
  2,534.1%
Income tax expense
  84,327 
  145,093 
  (41.9)%
Result for the period
  (25,646)
  140,918 
  (118.2)%
 
    
    
    
Attributable to
    
    
    
Equity holder of the parent
  22,340 
  79,463 
  (71.9)%
Non-controlling 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 recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  5,295 
  - 
  5,295 
  - 
Changes in the net realizable value of agricultural produce after harvest
  3,047 
  - 
  3,047 
  - 
Gross profit
  62,481 
  145,998 
  208,479 
  20.8%
Net gain from fair value adjustment on investment properties
  (44)
  (377,736)
  (377,780)
  173.1%
Gain from disposal of farmlands
  6,254 
  - 
  6,254 
  134.2%
General and administrative expenses
  (20,459)
  (20,744)
  (41,203)
  (13.9)%
Selling expenses
  (25,123)
  (11,961)
  (37,084)
  14.3%
Other operating results, net
  14,132 
  (4,052)
  10,080 
  - 
Result from operations
  37,241 
  (268,495)
  (231,254)
  262.8%
Share 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 recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  (3,270)
  - 
  (3,270)
Changes in the net realizable value of agricultural produce after harvest
  (1,598)
  - 
  (1,598)
Gross profit
  33,985 
  138,557 
  172,542 
Net gain from fair value adjustment on investment properties
  (287)
  (138,044)
  (138,331)
Gain from disposal of farmlands
  2,670 
  - 
  2,670 
General and administrative expenses
  (18,525)
  (29,354)
  (47,879)
Selling expenses
  (21,080)
  (11,376)
  (32,456)
Other operating results, net
  (1,621)
  (18,664)
  (20,285)
Result from operations
  (4,858)
  (58,881)
  (63,739)
Share 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 gain from fair value adjustment on investment properties
  (44)
  (287)
  (84.7)%
Gain from disposal of farmlands
  6,254 
  2,670 
  134.2%
General and administrative expenses
  (37)
  (31)
  19.4%
Selling expenses
  (82)
  (19)
  331.6%
Other 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 recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  5,295 
  (3,270)
  - 
Changes in the net realizable value of agricultural produce after harvest
  3,047 
  (1,598)
  - 
Gross profit
  33,671 
  9,550 
  252.6%
General and administrative expenses
  (11,959)
  (9,732)
  22.9%
Selling expenses
  (17,164)
  (15,022)
  14.3%
Other operating results, net
  6,373 
  361 
  1,665.4%
Results from operations
  10,921 
  (14,843)
  - 
Results 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 recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  11,920 
  11,442 
  4.2%
Changes in the net realizable value of agricultural produce after harvest
  3,031 
  (1,598)
  - 
Gross profit
  30,534 
  19,907 
  53.4%
General and administrative expenses
  (8,559)
  (6,660)
  28.5%
Selling expenses
  (15,022)
  (12,284)
  22.3%
Other operating results, net
  6,926 
  (1,361)
  - 
Profit from operations
  13,879 
  (398)
  - 
Results 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 recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  (3,618)
  (1,439)
  151.4%
Gross profit
  384 
  (376)
  - 
General and administrative expenses
  (1,846)
  (1,672)
  10.4%
Selling expenses
  (883)
  (1,404)
  (37.1)%
Other 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 Operation (hectares) (1)
 
As of 03/31/24
 
 
As of 03/31/23
 
 
YoY Var
 
Own farms
  115,083 
  113,408 
  1.5%
Leased farms
  125,540 
  122,293 
  2.7%
Farms under concession
  22,087 
  22,314 
  (1.0)%
Own 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 recognition and changes in the fair value of biological assets and agricultural produce
  (3,007)
  (13,273)
  (77.3)%
Changes in the net realizable value of agricultural produce after harvest
  16 
  - 
  - 
Gross Profit
  462 
  (11,412)
  - 
General and administrative expenses
  (1,140)
  (927)
  23.0%
Selling expenses
  (969)
  (958)
  1.1%
Other operating results, net
  (244)
  120 
  (303.3)%
Result from operations
  (1,891)
  (13,177)
  (85.6)%
Results 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 farms
  68,013 
  68,785 
  (1.1)%
Leased farms
  10,896 
  10,896 
  0.0%
Farms under concession
  2,696 
  2,604 
  3.5%
Own 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 stock
  69,677 
  72,945 
  (4.5)%
Winter grazing stock
  10,551 
  5,144 
  105.1%
Sheep 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 and Administrative expenses
  (414)
  (473)
  (12.5)%
Selling expenses
  (290)
  (376)
  (22.9)%
Other 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 and administrative expenses
  (5,798)
  (5,419)
  7.0%
Selling expenses
  (7,877)
  (6,039)
  30.4%
Other operating results, net
  3,883 
  1,462 
  165.6%
Profit from operations
  19,164 
  14,641 
  30.9%
Profit 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 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 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 and bank overdrafts
ARS
  0.7 
 
Variable
 
< 360 days
Series XXXIV
USD
  12.2 
  6.99%
Jun-24
Series XXXIII
USD
  6.4 
  6.99%
Jul-24
Series XXXV
USD
  20.4 
  3.50%
Sep-24
Series XLI
ARS
  4.8 
 
Variable
 
Oct-24
Series XLIII
ARS
  23.2 
 
Variable
 
Jan-25
Series XXXVI
USD
  39.1 
  2.00%
Feb-25
Series XXXVII
USD
  24.4 
  5.50%
Mar-25
Series XXXVIII
USD
  70.4 
  8.00%
Mar-26
Series XLII
USD
  30.0 
  0.00%
May-26
Series XL
USD
  38.2 
  0.00%
Dec-26
Series XLIV
USD
  39.8 
  6.00%
Jan-27
Other 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 (USD MM) (1)
 
 
Interest Rate
 
Maturity
Bank overdrafts
ARS
  6.1 
 
Variable
 
< 360 days
Series XI (3)
USD
  10.5 
  5.0%
Mar-24
Series XIII
USD
  14.8 
  3.9%
Aug-24
Series XIX
ARS
  30.5 
 
Variable
 
Feb-25
Series XV
USD
  61.7 
  8.0%
Mar-25
Series XVI
USD
  28.3 
  7.0%
Jul-25
Series XVII
USD
  25.0 
  5.0%
Dec-25
Series XVIII
USD
  21.4 
  7.0%
Feb-27
Series XIV
USD
  158.9 
  8.75%
Jun-28
IRSA’s Total Debt
USD
  357.2 
    
 
Cash & Cash Equivalents + Investments (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 assets
  681,286 
  643,583 
  694,767 
  703,304 
  3,391,225 
Non-current 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 liabilities
  629,442 
  549,029 
  608,303 
  926,119 
  2,573,061 
Non-current 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 capital and reserves attributable to the shareholders of the controlling company
  580,270 
  621,867 
  456,444 
  436,209 
  157,715 
Minority 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’ 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 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 from associates and joint ventures
  29,680 
  2,178 
  (4,185)
  (24,986)
  10,146 
Profit from operations before financing and taxation
  (203,544)
  (67,947)
  76,216 
  (2,323)
  216,613 
Financial results, net
  93,571 
  63,772 
  133,714 
  16,069 
  (277,497)
Profit before income tax
  (109,973)
  (4,175)
  209,930 
  13,746 
  (60,884)
Income tax expense
  84,327 
  145,093 
  40,920 
  (35,478)
  (54,635)
Result of the period of continuous operations
  (25,646)
  140,918 
  250,850 
  (21,732)
  (115,519)
Result of discontinued operations after taxes
  - 
  - 
  - 
  (90,277)
  (12,963)
Result for the period
  (25,646)
  140,918 
  250,850 
  (112,009)
  (128,482)
Controlling company’s shareholders
  27,879 
  82,381 
  102,871 
  (95,493)
  (214,713)
Non-controlling 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 cash generated by operating activities
  60,696 
  25,141 
  78,990 
  (61,652)
  447,566 
Net cash generated by investment activities
  95,354 
  63,731 
  86,153 
  712,291 
  278,762 
Net 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 for the period
  (25,646)
  140,918 
Income tax expense 
  (84,327)
  (145,093)
Net financial results 
  (93,571)
  (63,772)
Share of profit of associates and joint ventures 
  (29,680)
  (2,178)
Depreciation and amortization 
  24,127 
  23,703 
Rights of use installments
  (10,753)
  (11,558)
EBITDA (unaudited) 
  (219,850)
  (57,980)
Gain from fair value of investment properties, not realized - agribusiness
  44 
  287 
Gain from fair value of investment properties, not realized - Urban Properties Business
  377,674 
  134,652 
Realized sale – Real Estate
  21,560 
  37,883 
Initial recognition and changes in fair value of biological assets
  (4,294)
  (10,271)
Realized initial recognition and changes in fair value of biological assets
  794 
  (2,751)
Others (recovery of provision)
  (11,596)
  - 
Adjusted EBITDA (unaudited) 
  164,332 
  101,820 
 
 
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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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