Cresud S.A.C.I.F. y A. Announces Results for the Nine-month period of FY 2017 ended March 31, 2017
BUENOS AIRES, Argentina, May 15, 2017 /PRNewswire/ -- Cresud S.A.C.I.F. y A. (NASDAQ: CRESY, BASE: CRES), today announces results for the nine-month period of FY 2017 ended March 31, 2017.
During this quarter, the Company decided to change the valuation method of investment properties (mainly, shopping malls, offices and land reserves) from acquisition cost to fair market value, in accordance with the International Financial Reporting Standards (IFRS).
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 intends to recognize the effects of this change in its financial statements for the fourth quarter of the current fiscal year (June 30, 2017).
HIGHLIGHTS
- Net income for the nine-month period of FY17 registered a gain of ARS 3,515 million compared to a loss of ARS 1,505 million in the same period of 2016 mainly explained by results of Israel Business Center from our subsidiary IRSA due to ADAMA sale and the increase in Clal share price, valued at market value.
- The current campaign presents with good climate conditions in the region. We expect to plant approximately 205,000 ha and develop 13,326 ha in the region.
- There were no farmland sales during IIIQ17. As a subsequent event, our subsidiary Brasilagro has sold a fraction of 274 hectares of Araucaria farm for R$ 13.2 million which will be recognized by the end of the fiscal year.
- During the quarter, 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. EBITDA of the rental segments in Argentina increased by 31.8% in the nine-month period compared to the same period of 2016.
- We decided to change the valuation method for the investment properties from historical cost to reasonable value, which was already reflected in our subsidiary IRSA Commercial Properties S.A. this quarter and will be reflected in the company's financial statements and its subsidiary IRSA by the end of our fiscal year as of June 30, 2017.
Financial Highlights | ||
(In millions of Argentine Pesos) | ||
Nine-month period of FY 2017 | ||
Ended March 31, 2017 | ||
Income Statement | 03/31/2017 | 03/31/2016 |
Agricultural Business Revenue | 2,666 | 1,934 |
Agricultural Business Gross Profit | 376 | 699 |
Urban Properties Revenues | 54,141 | 18,299 |
Urban Properties Gross Profit | 16,315 | 5,493 |
Consolidated Gross Profit | 16,691 | 6,192 |
Consolidated Profit from Operations | 3,013 | 3,578 |
Profit / (Loss) For the Period | 3,515 | (1,505) |
Attributable to: | ||
Cresud's Shareholders | 1,034 | (936) |
Non-Controlling interest | 2,481 | (569) |
EPS (Basic) | 2.08 | (1.89) |
EPS (Diluted) | 2.07 | (1.89) |
Balance Sheet | 03/31/2017 | 06/30/2016 |
Current Assets | 58,123 | 45,218 |
Non Current Assets | 117,498 | 120,789 |
Total Assets | 175,621 | 166,007 |
Current Liabilities | 43,844 | 45,599 |
Non Current Liabilities | 110,504 | 105,170 |
Total Liabilities | 154,348 | 150,769 |
Non-Controlling Interest | 18,436 | 14,214 |
Shareholders' Equity | 21,273 | 15,238 |
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 63.38% 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 nine-month period of FY 2017 Results Conference Call on Monday, May 15, 2017, at 11:00 AM Eastern Time
If you would like to participate, please call:
United States: (877) 317-6776
International: +1-(412) 317-6776
ID# CRESUD
To access the webcast, click on the link below:
http://webcast.engage-x.com/Cover.aspx?PlatformId=F8%2F3DIgMdFq75c3qboEipQ%3D%3D
Investor Relations Department
Cresud S.A.C.I.F. y A.
+5411 4323-7449
ir@cresud.com.ar
www.cresud.com.ar
Follow us on Twitter: @cresudir
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SOURCE Cresud S.A.C.I.F. y A.
