BUENOS AIRES, Argentina, Feb. 10 /PRNewswire-FirstCall/ -- Cresud S.A.C.I.F. y A. (Nasdaq: CRESY, BASE: CRES), today announced results for the First Six Months Fiscal Year 2009 Ended December 31, 2008.
HIGHLIGHTS
- Effective 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 an equity interest of 54.01% as of December 31, 2008. IRSA's revenue and cost lines in the consolidated income statement account only for the activity recorded during the three-month period from October 1 to December 31, 2008. IRSA's results originated before that period are reflected in Results from Interests in Related Companies.
- The difference between Operating Income and Net Income is explained by the changes in the exchange rates applied for valuing IRSA's stock of debt and the differences in the valuation of consolidated financial assets and those financial assets held by Banco Hipotecario, largely attributable to the impact of the higher volatility experienced in the financial markets.
- Operating income of Ps.32.3 million is composed of Ps.50.4 million income derived from IRSA's consolidated segments and Ps.18.1 million loss from Cresud's agribusiness segments, compared to Ps.22.4 million income in Cresud's operating activities in the first six months of fiscal year 2008. This is mainly due to factors such as lower margins recorded in wheat and beef cattle production caused by adverse weather conditions and the absence of results derived from the fact that no land sales transactions were recorded this period (as compared to Ps.20.7 million posted in the same period of the previous fiscal year).
- Production: We increased the number of hectares allocated to agriculture by 66%, to over 104,000 hectares. As of December 31, 2008, 99% of the surface area planted with wheat had been harvested, and 62% of the soybean, 65% of the corn, 31% of the sorghum and 100% of the sunflower had been sown. Although a lower output has been projected for this year as a result of the severe drought prevailing in Argentina, thanks to Cresud's diversification of lands and crops and its portfolio management strategy, this drop is expected to be lower than the country's average.
- International expansion plan: We have concluded the due diligence process and closed the acquisition of 12,166 hectares in Bolivia and 20,965 hectares in Paraguay. Corn and soybean have started to be sown in over 10,000 hectares in Bolivia. These lands are suitable for double harvesting in the same crop season.
- Cresud's share repurchase plan: As of the date of this earnings release the Company's investment in own shares is 4.8% of its capital.
- As concerns IRSA's operations, operating losses were recorded in its subsidiary Tarshop S.A. due to the conditions prevailing in the financial markets, offsetting the better operating results recorded in the real estate segments, which present good cash generation levels.
Financial Highlights
(In thousands of Argentine Pesos)
First Six Months Fiscal Year 2009
Ended December 31, 2008
Cresud's consolidated income statement for the period from July 1, 2008 to December 31, 2008 (six months) includes the results of IRSA Inversiones y Representaciones Sociedad Anonima from October 1 to December 31, 2008 (three months). Cresud's consolidated financial statements as of December 31, 2007, disclosed in the comparative tables, do not include IRSA's consolidated data, thus affecting the comparability of the income statement.
Income Statement 12/31/2008 12/31/2007
Total Production 31,039 35,708
Production Results (10,202) 9,255
Total Sales 109,539 74,041
Sales Results 20,944 11,534
Total Real Estate Sales 325,013 --
Real Estate Results 179,287 --
Gross Profit 190,029 20,789
Operating Profit 32,250 22,412
Net Income (loss) 12,296 14,472
Balance Sheet 12/31/2008 12/31/2007
Current Assets 1,110,114 177,617
Non Current Assets 4,349,390 1,013,752
Total Assets 5,459,504 1,191,369
Current Liabilities 1,043,581 280,414
Non Current Liabilities 1,456,623 59,038
Total Liabilities 2,500,204 339,452
Minority Interest 1,283,078 934
Shareholders' Equity 1,676,222 850,983
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.
Additionally, Cresud owns a 54.0% 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 First Six Months Fiscal Year 2009 Results Conference Call on Friday, February 13, 2009, at 11:00 AM Eastern Time.
If you would like to participate, please call:
United States: 877-860-4996
International: +1-404-665-9583
To access the webcast, click on the link below:
http://www.videonewswire.com/event.asp?id=56011
SOURCE Cresud S.A.C.I.F. y A.
For further information: Gabriel Blasi, CFO, Cresud, +011-5411-4323-7449, gblasi@cresud.com.ar
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