Cresud S.A.C.I.F. y A. Announces Results for the FY 2017 ended June 30, 2017
BUENOS AIRES, Argentina, Sept. 9, 2017 /PRNewswire/ -- Cresud S.A.C.I.F. y A. (NASDAQ: CRESY, BASE: CRES), today announces results for FY 2017 ended June 30, 2017.
During this year, the Company decided to change the valuation method of investment properties from acquisition cost to fair market value, in accordance with the International Financial Reporting Standards (IFRS). Investment properties includes farms leased to third parties, shopping malls, offices, land reserves and real estate properties from Israel coming from our subsidiary IRSA.
The reason for this change is the need to adjust the valuation of investment property to its fair market value, for its amortized acquisition cost is not reflective of its economic substance.
The Company has recognized the effects of this change in its financial statements for the fourth quarter of 2017 ended June 30, 2017.
HIGHLIGHTS
- We decided to change the valuation method for the investment properties from historical cost to reasonable value, which was reflected in the company's financial statements as of the IVQ of FY17.
- Net result for FY17 registered a gain of ARS 5,028 million compared to a gain of ARS 8,537 million in 2016 mainly explained by lower results from changes in the fair value of investments properties compensated by the results coming from Adama sale and the increase in Clal share price added to the fact that we are consolidating 12 months of 2017 in the Israel Business Center of our subsidiary IRSA compared to 6 months of 2016.
- The 2017 campaign presented good climate conditions in the region, except in Bolivia where climate was adverse. We have planted 203,000 ha and developed 13,326 ha in the region.
- We have sold farms during the year for ARS 479 millones, registering a net gain of ARS 280 million.
- During the year, our subsidiary Brasilagro acquired a farm of 17,566 ha of crop activity in the state of Maranhão for R$ 100 million.
- Our urban properties and investments business observed good operating results in Argentina and Israel Business Center. EBITDA of the rental segments in Argentina increased by 27.8% in the compared year.
- During 2017, IDBD has issued notes in the Israeli market for NIS 1,060 million at a fixed rate of 5.40% due 2019 and in July 2017 has issued again notes for NIS 642.1 million at a fixed rate of 5.3% due 2022. Funds were destinated to refinance its short term debt.
| Financial Highlights |
||
| Income Statement |
06/30/2017 |
06/30/2016 (adjusted) |
| Agricultural Business Revenue |
3,919 |
2,912 |
| Agricultural Business Gross Profit |
553 |
1,002 |
| Urban Properties Revenues |
72,733 |
30,361 |
| Urban Properties Gross Profit |
22,777 |
10,450 |
| Consolidated Gross Profit |
23,330 |
11,452 |
| Consolidated Profit from Operations |
10,208 |
20,561 |
| Profit / (Loss) For the Period |
5,028 |
8,537 |
| Attributable to: |
||
| Cresud's Shareholders |
718 |
4,670 |
| Non-Controlling interest |
1,292 |
3,423 |
| EPS (Basic) |
1.44 |
9.43 |
| EPS (Diluted) |
1.43 |
9.31 |
| Balance Sheet |
06/30/2017 |
06/30/2016 (adjusted) |
| Current Assets |
68,360 |
45,218 |
| Non Current Assets |
173,086 |
154,433 |
| Total Assets |
241,446 |
199,651 |
| Current Liabilities |
51,191 |
45,599 |
| Non Current Liabilities |
141,082 |
116,852 |
| Total Liabilities |
192,273 |
162,451 |
| Non-Controlling Interest |
32,768 |
23,539 |
| Shareholders' Equity |
49,173 |
37,200 |
About Cresud:
Cresud is a leading Argentinean agricultural company with a growing presence in Latin American countries. Cresud is currently involved in a range of activities including crop production, cattle rising and milk production. Cresud's business model, which is being rolled out regionally in Latin America, taking into account the specific conditions of each country, focuses on the acquisition, development and exploitation of properties having attractive prospects for agricultural production and/or value appreciation and the selective disposition of such properties where appreciation has been realized.
Additionally, Cresud owns a 63.77% stake in IRSA Inversiones y Representaciones S.A., Argentina's largest, most well-diversified real estate company. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. Also owns 3 premium hotels in Argentina, a huge landbank for future developments, 29,91% of Banco Hipotecario and some international opportunistic investments, including a 68.3% stake in the largest holding in Israel, IDB Development Corporation.
A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar.
Cresud cordially invites you to participate in its FY 2017 Results Conference Call on Monday, September 11, 2017, at 10:00 AM Eastern Time
If you would like to participate, please call:
United States: (844) 308-3411
International: +1-(412) 717-9604
ID# CRESUD
To access the webcast, click on the link below:
http://webcast.engage-x.com/Cover.aspx?PlatformId=zLxjXkW4UXiPyiv2J0I4kQ%3D%3D
Investor Relations Department
Cresud S.A.C.I.F. y A.
+5411 4323-7449
[email protected]
www.cresud.com.ar
Follow us on Twitter: @cresudir
SOURCE Cresud S.A.C.I.F. y A.
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