Cresud S.A.C.I.F. y A. Announces Results for the Fiscal Year Ended June 30, 2009
BUENOS AIRES, Argentina, Sept. 8 /PRNewswire-FirstCall/ -- Cresud S.A.C.I.F. y A. (Nasdaq: CRESY; BASE: CRES), today announced results for Fiscal Year Ended June 30, 2009
HIGHLIGHTS
As from October 1, 2008, Cresud presents its results in consolidated form with those of IRSA Inversiones y Representaciones S.A., in which we held a 55.64% interest as of June 30, 2009. IRSA's revenue and cost line items correspond to the nine-month period between October 1, 2008 and June 30, 2009. IRSA's prior results are recorded under the item Gain from related companies
Net income increased from Ps.22.9 million in fiscal year 2008 to Ps.124.6 million in fiscal 2009. This performance is attributable to the impact of IRSA's results on Cresud's balance sheet and to the consolidated gain from the acquisition and holding in the portfolio of Cresud and its subsidiaries of US$ 102.7 million in nominal value of Notes issued by IRSA and Alto Palermo in 2007. These factors have more than compensated the adverse effects of the global crisis and extreme weather conditions for agriculture prevailing in Argentina on Cresud's agriculture and livestock business.
The operating income of Ps.215.4 million comprises a Ps.277.4 million gain from the consolidation of IRSA's segments, and a Ps.62.0 million loss from Cresud's agriculture and livestock segments in fiscal year 2009 compared to a Ps.43.6 million gain in the previous year. This is due to adverse weather conditions that lead to lower yields and margins in agricultural products together with the drop in prices resulting from the slowdown in world economy during this year. In addition, there was a decrease in the sales of farms compared to the previous year, reflecting a reduction of Ps.21.1 million in revenues in our income statement
We continued with the development of our Los Pozos farm in Salta, where we have increased our land for livestock production from 33,000 hectares in fiscal year 2008 to 43,000 hectares in fiscal 2009. Hosting 55,000 heads of cattle, Los Pozos represents a unique livestock production farm in terms of size and efficiency. During this year, the surface area devoted to crops at Los Pozos increased from 1,500 hectares to 4,400 hectares.
BrasilAgro: during this year, our interest in BrasilAgro rose to 19.14%; this company in expansion increased its sown surface area by 52%, to 33,504 hectares of its total portfolio of 165,373 hectares distributed among 8 farms. BrasilAgro's substantial liquidity of R$ 264.4 million enables it to take any new opportunities that may arise in terms of development of own hectares or acquisitions in the Brazilian agricultural sector. For this purpose, it has surveyed over 2.5 million hectares.
Regional expansion: We have purchased 12,166 hectares in Bolivia for agricultural production. These hectares are in production and allow double harvesting during the year. In the case of Paraguay, we have launched an agricultural, livestock and forestry project through a company that owns 41,931 hectares and a purchase option for another 100,000 hectares. This project will be developed in several stages, and we believe that it has a high potential for land development and appreciation.
During fiscal year 2009, we implemented a repurchase plan for 30 million shares as a result of the evident distortion in the price of Cresud's share compared to the quality of its assets. The result of this decision has been successful, as we have repurchased 5.98% of outstanding capital stock at an average price of US$ 7.18 per ADR.
Regarding the operations of our controlled company IRSA, operating losses were reduced in the consumer finance segment compared to those recorded for the first quarters of the fiscal year. The other segments still present good cash flow generation and results. During this year, IRSA has incorporated to its portfolio, through its subsidiary Alto Palermo, its 11th shopping center, the largest in the city of Buenos Aires. It has also completed construction and made available for rental a new office building, and has sold non-strategic office properties for lease at prices that reflect the value appreciation potential of its commercial real estate portfolio.
Financial Highlights
(In Thousands of Argentine Pesos)
Fiscal Year ended
June 30, 2009
Income Statement As of June 30, 2009 As of June 30, 2008
Production Revenues 172,512 159,821
Gross Profit from Agribusiness (3,374) 85,670
Real Estate Segments Sales 1,015,280 -
Gross Profit from Real Estate 579,357 -
Gross Profit 575,983 85,670
Operating Profit 215,403 43,612
Net Income 124,616 22,948
Balance Sheet As of June 30, 2009 As of June 30, 2008
Current Assets 1,157,655 736,865
Non Current Assets 4,818,401 1,332,895
Total Assets 5,976,056 2,069,760
Current Liabilities 1,313,912 262,348
Non Current Liabilities 1,413,278 43,914
Total Liabilities 2,727,190 306,262
Minority Interest 1,435,982 1,160
Shareholders' Equity 1,812,884 1,762,338
About Cresud:
Cresud is a leading Argentine agricultural company with a growing presence in the Brazilian agricultural sector through its investment in BrasilAgro-Companhia Brasileira de Propriedades Agricola. Cresud is currently involved in a range of activities including crop production, cattle raising and milk production. Cresud's business model, which it seeks to roll out abroad, 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.
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 2009 Results Conference Call on Monday, September 14, 2009, at 11:00 am Eastern Time
