Cresud S.A.C.I.F. y A. Announces Results for Fiscal Year 2016 Ended June 30, 2016

BUENOS AIRES, Argentina, Sept. 9, 2016 /PRNewswire/ -- Cresud S.A.C.I.F. y A. (NASDAQ: CRESY, MERVAL: CRES), today announces results for the Fiscal Year 2016 ended June 30, 2016.

Consolidation of IDB Development Corporation

On October 11, 2015, the Group obtained control of the Israeli company IDB Development Corporation Ltd. ("IDBD"). During the past quarter, this investment was consolidated in the balance sheet, and as from this third quarter of fiscal year 2016, it is also disclosed at income statement level. IDBD's fiscal year-end is on December 31 of each year, whereas the Company's is on June 30. Moreover, in compliance with Israeli regulations, IDBD reports its quarterly and annual results after the expiration of the Argentine statutory terms. For such reasons, the Company will be unable to have available IDBD's quarterly results as and when due in order to report them to the CNV in its financial statements for the period ended March 31, 2016. Therefore, the Company will consolidate results from IDBD's operations with a three-month mismatch, adjusted by the effects of material transactions occurred during the reported period. In this way, the results of IDBD's operations for the period running from October 11, 2015 (date of acquisition) until March 31, 2016 are included in the interim comprehensive results of the Group for the fiscal year ended on June 30, 2016, except for material transactions considered. The Company estimates a similar mismatch in obtaining IDBD's results in the succeeding periods.

IDBD is one of the largest and most diversified holding companies in Israel. Through its subsidiaries, associates, joint ventures and other investments, IDBD is engaged in numerous markets and industry sectors in Israel and other countries, including real estate (Property & Building Corporation), supermarkets (Shufersal), agroindustry (Adama), insurance (Clal Holdings Insurance Enterprises, hereinafter Clal), and telecommunications (Cellcom). In April 2016, IDBD's shares were delisted from the Tel Aviv Stock Exchange ("TASE"). However, the company will continue to be registered with the TASE as a "Debentures Company" pursuant to Israeli law, as it has bonds listed on such exchange.

In the disclosure of income, we have decided to report our operations based on our main business lines: "Agricultural Business" and "Urban and Investments Business" derived from our subsidiary IRSA, which will be in turn subdivided into two operating centers: "Argentina" (including the businesses in Argentina and the international investments in the Lipstick Building in New York and the Condor Hospitality Trust hotel REIT) and "Israel" (including IDBD).

HIGHLIGHTS

• During FY 2016, we began consolidating the results of our investment in IDB Development Corporation.
• Operating Income for fiscal year 2016 reached ARS 3,746 million while the net result registered a loss of ARS 2,472 million (ARS 1,402 million to Cresud' shareholders) mainly explained by concepts that do not involve cash expenditures as exchange rate differences and the value at market price of Clal, owned by IBDB .
• Operating income for the farming segment increased by ARS 562 million in fiscal year 2016 compared to 2015 mainly due to the positive effect of the cut and reduction of export taxes and the depreciation of the exchange rate in Argentina and good operating results.
• We have planted approximately 180,000 ha and developed 8,850 ha in the region during this campaign.
• We have not concrete farmland sales during FY 2016. As a subsequent event, we sold a farm in Argentina for $ 6 million.
• Our urban properties and investments business increased its operating profit from Argentina Business Center by 7.2% in the fiscal year reaching ARS 2,222 million.

Financial Highlights
(In millions of Argentine Pesos)
Fiscal Year 2016
Ended June 30, 2016

About Cresud:

Cresud is a leading South American 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 63.4% 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. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels.

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 Fiscal Year 2016 Results Conference Call on Friday, September 09, 2016, at 2:00 PM Eastern Time

If you would like to participate, please call:
United States:  (877) 317-6776
International:  +1-(877) 317-6776
ID#CRESUD

To access the webcast, click on the link below:
 http://webcast.neo1.net/Cover.aspx?PlatformId=MYe1HmCUYjan9InAtvGEjg%3D%3D

Investor Relations Department
Cresud S.A.C.I.F. y A.
[email protected] 
www.cresud.com.ar 
+5411-4323-7449
Follow us on Twitter @cresudir

SOURCE Cresud S.A.C.I.F. y A.

Related Links

http://www.cresud.com.ar