Company Overview - CRESUD has been investing in real assets for over 30 years[2] - The company manages 865,600 hectares through CRESUD, BrasilAgro & Subsidiaries, with 71% owned, 14% leased, and 15% under long-term concessions[11] - CRESUD's agribusiness strategy focuses on farming activity, farmland real estate, and agricultural commercial services[15] Farmland Portfolio and Production - The company's farmland portfolio has evolved since 1994, expanding from Argentina to the region[8] - The planted surface has increased at a CAGR of +10.3%[19] - Grain production in the region has increased at a CAGR of +14.8%[21] Farmland Real Estate - Farmland prices in Argentina have seen significant appreciation[28] - Farmland prices in Brazil have also seen significant appreciation[31] - CRESUD's stake in farmland real estate is 51.2%[34] Agricultural Commercial Services - The company complements traditional farming with services, trading, and AgTech[36] - Traded tons evolution & market share has increased over the years[39] - EBT Evolution reached USD 28.2 million in 2021-2022[41] Financial Performance and Capital Management - Agribusiness Adjusted EBITDA has evolved across farming, farmland sales, and services segments[50] - Stand-alone debt has decreased by -23.4% to USD 323 million in IIQ 25[53] - The company approved a dividend on October 28th, 2024, with a dividend yield of ~7%[58] - Shares repurchase programs were conducted from November to December 2024, with 4,522,623 ordinary shares repurchased for ARS 6,498 million (~USD 6.4 million), representing ~0.75% of Social Capital[60]

[Legal Information](index=2&type=section&id=Legal%20Information) [Company Overview](index=2&type=section&id=Company%20Overview) Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, founded in 1936, is an Argentine company focused on real estate and agriculture, with its 92nd fiscal year ending December 31, 2024, controlled by Eduardo S. Elsztain and affiliates - Company Name: **Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria**[3](index=3&type=chunk) - Company Activities: **Real estate and agricultural activities**[3](index=3&type=chunk) - Control Group: Eduardo S. Elsztain controls the company directly or through Inversiones Financieras del Sur S.A., Consultores Venture Capital Uruguay S.A., and Consultores Asset Management S.A[4](index=4&type=chunk) Company Ownership Structure | Metric | Value | | :--- | :--- | | Fiscal Year Number | 92 (commencing July 1, 2024) | | Company Bylaws Expiration Date | June 6, 2082 | | Ordinary Shares Issued | 603,140,435 shares | | Subscribed, Issued, and Paid-in Capital Par Value | 603 million Argentine Pesos | | Control Group's Direct and Indirect Participation in Capital | 230,771,688 shares | | Voting Shares (Direct and Indirect Equity) | 38.67% | [Glossary](index=4&type=section&id=Glossary) [Terms and Definitions](index=4&type=section&id=Terms%20and%20Definitions) This section provides non-technical definitions for specific terms used in the financial statements to aid reader comprehension, including company names, regulatory bodies, accounting standards, and abbreviations for key affiliates and entities - The glossary aims to help readers understand specific terms used in the notes to the financial statements, not to provide technical definitions[11](index=11&type=chunk) Key Term Examples | Term | Definition | | :--- | :--- | | Cresud, "the Company", "us" | Cresud S.A.C.I.F. y A. | | CNV | Securities Exchange Commission (Argentina) | | IFRS | International Financial Reporting Standards | | IRSA | IRSA Inversiones y Representaciones S.A. | [Unaudited Condensed Interim Consolidated Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Unaudited Condensed Interim Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2024, total assets decreased to **ARS 3,955,326 million** from ARS 4,207,077 million on June 30, 2024, with total equity at **ARS 1,659,876 million** and total liabilities at **ARS 2,295,450 million** Key Consolidated Statement of Financial Position Data (ARS million) | Metric | December 31, 2024 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 3,095,323 | 3,351,393 | -7.64% | | Current assets | 860,003 | 855,684 | 0.50% | | **Total assets** | **3,955,326** | **4,207,077** | **-5.98%** | | Equity attributable to owners of the parent | 739,254 | 843,378 | -12.35% | | Non-controlling interests | 920,622 | 1,051,029 | -12.41% | | **Total equity** | **1,659,876** | **1,894,407** | **-12.38%** | | Non-current liabilities | 1,477,235 | 1,516,093 | -2.56% | | Current liabilities | 818,215 | 796,577 | 2.72% | | **Total liabilities** | **2,295,450** | **2,312,670** | **-0.74%** | - Investment properties decreased from **ARS 2,120,192 million** on June 30, 2024, to **ARS 1,918,764 million** on December 31, 2024[14](index=14&type=chunk) - Biological assets (current) increased from **ARS 70,602 million** on June 30, 2024, to **ARS 109,624 million** on December 31, 2024[14](index=14&type=chunk) [Unaudited Condensed Interim Consolidated Statement of Income and Other Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Income%20and%20Other%20Comprehensive%20Income) For the six months ended December 31, 2024, the company reported a net loss of **ARS 64,391 million**, a significant decline from the prior year's net profit of ARS 266,118 million, primarily due to a **net loss of ARS 227,858 million** from fair value adjustments to investment properties, despite a slight **0.7% increase in operating revenue** and a **25.9% decrease in gross profit** Key Consolidated Statement of Income and Other Comprehensive Income Data (ARS million) | Metric | December 31, 2024 (Six Months) | December 31, 2023 (Six Months) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 449,163 | 445,859 | 0.7% | | Costs | (298,248) | (253,034) | 17.9% | | Gross profit | 153,481 | 207,081 | -25.9% | | Net (loss)/gain from fair value adjustments to investment properties | (227,858) | 304,210 | -174.9% | | Operating (loss)/profit | (135,606) | 449,429 | -130.2% | | (Loss)/profit for the period | (64,391) | 266,118 | -124.2% | | (Loss)/profit attributable to owners of the parent | (61,541) | 106,267 | -157.9% | | Basic (loss)/earnings per share | (103.27) | 179.48 | -157.5% | - Fair value adjustments to investment properties shifted from a **gain of ARS 304,210 million** in the prior year to a **loss of ARS 227,858 million** for the six months ended December 31, 2024, significantly impacting net profit[18](index=18&type=chunk) - Gain on disposal of agricultural land significantly increased by **158.0%**, from **ARS 9,196 million** in the prior year to **ARS 23,726 million**[18](index=18&type=chunk) [Unaudited Condensed Interim Consolidated Statement of Changes in Shareholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Changes%20in%20Shareholders'%20Equity) For the six months ended December 31, 2024, equity attributable to owners of the parent decreased from **ARS 843,378 million** on June 30, 2024, to **ARS 739,254 million**, primarily due to the loss for the period, other comprehensive losses, and dividend distribution, partially offset by the exercise of warrants Key Consolidated Statement of Changes in Shareholders' Equity Data (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Balance at beginning of period | 843,378 | 936,215 | | Loss for the period | (61,541) | 106,267 | | Other comprehensive loss | (30,620) | 107,984 | | Dividend distribution | (47,338) | (111,708) | | Exercise of warrants | 45,079 | 5,685 | | Balance at end of period | 739,254 | 843,378 | - The company repurchased treasury shares on December 31, 2024, resulting in a **decrease of ARS 6,517 million** in equity attributable to owners of the parent[24](index=24&type=chunk) - Non-controlling interests decreased from **ARS 1,051,029 million** on June 30, 2024, to **ARS 920,622 million** on December 31, 2024, primarily due to the loss for the period and dividend distribution[24](index=24&type=chunk) [Unaudited Condensed Interim Consolidated Statement of Cash Flows](index=13&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended December 31, 2024, the company reported a net cash outflow of **ARS 20,371 million** from operating activities and **ARS 62,277 million** from investing activities, offset by a net cash inflow of **ARS 40,338 million** from financing activities, resulting in cash and cash equivalents of **ARS 97,928 million** at period-end Key Consolidated Statement of Cash Flows Data (ARS million) | Metric | December 31, 2024 (Six Months) | December 31, 2023 (Six Months) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | (20,371) | 106,197 | -119.2% | | Net cash from investing activities | (62,277) | 118,217 | -152.7% | | Net cash from financing activities | 40,338 | (244,973) | -116.5% | | Net decrease in cash and cash equivalents | (42,310) | (20,559) | 105.8% | | Cash and cash equivalents at end of period | 97,928 | 221,670 | -55.8% | - Net cash from operating activities shifted from an **inflow of ARS 106,197 million** in the prior year to an **outflow of ARS 20,371 million** for the six months ended December 31, 2024, primarily due to income tax payments and reduced cash flow before taxes from operating activities[38](index=38&type=chunk) - Net cash from financing activities shifted from an **outflow of ARS 244,973 million** in the prior year to an **inflow of ARS 40,338 million** for the six months ended December 31, 2024, driven by the issuance of borrowings, new notes, and the exercise of warrants[38](index=38&type=chunk) [Notes to the Unaudited Condensed Interim Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1 - The Group's Business and General Information](index=14&type=section&id=Note%201%20-%20The%20Group's%20business%20and%20general%20information) The Cresud Group, founded in 1936, initially focused on rural and urban loans before transitioning to agricultural activities, later investing in real estate company IRSA in 2002 and making it a primary subsidiary by 2009, now operating two main business lines: agriculture and urban properties and investments - Cresud was founded in 1936 as a subsidiary of the Belgian company Credit Foncier, initially focusing on rural and urban loans and real estate management[40](index=40&type=chunk) - In 2002, Cresud acquired a **19.85% stake in IRSA**, increasing it to **55.64% by 2009**, making IRSA its primary subsidiary[41](index=41&type=chunk) - As of December 31, 2024, the Group primarily operates two business lines: **agricultural business** and **urban properties and investments**[43](index=43&type=chunk) [Note 2 - Summary of Significant Accounting Policies](index=14&type=section&id=Note%202%20-%20Summary%20of%20significant%20accounting%20policies) These financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the Group's annual consolidated financial statements as of June 30, 2024, and have been restated under IAS 29 using the National Consumer Price Index due to Argentina's classification as a highly inflationary economy since July 1, 2018 - The financial statements are prepared in accordance with **IAS 34 "Interim Financial Reporting"** and should be read in conjunction with the Group's annual consolidated financial statements as of June 30, 2024[44](index=44&type=chunk) - Argentina has been classified as a highly inflationary economy since **July 1, 2018**, requiring the financial statements to be restated in accordance with **IAS 29**[47](index=47&type=chunk)[50](index=50&type=chunk) - The index used for inflation adjustments is the **National Consumer Price Index (National CPI)** since January 2017[48](index=48&type=chunk) Price Variation Rates | Period | Price Variation Rate | | :--- | :--- | | December 31, 2024 (Six Months) | 21% | | December 31, 2024 (Twelve Months) | 118% | [Note 3 - Seasonal Effects on Operations](index=15&type=section&id=Note%203%20-%20Seasonal%20effects%20on%20operations) Both the Group's agricultural and urban properties and investments businesses are subject to seasonal effects, with grain harvesting and sales occurring in specific regions, cattle production peaking in the second quarter, and shopping center sales reaching their highest levels during winter and year-end holidays while being lowest in summer - Agricultural business is subject to seasonal effects, with corn and soybean harvests in Argentina occurring in June and March, respectively, while Brazilian soybeans are harvested in February, and corn has two seasons[54](index=54&type=chunk) - Cattle production typically sees higher output in the **second quarter** due to more favorable conditions[54](index=54&type=chunk) - Shopping center sales are lowest during the Argentine summer (January and February) and peak during winter holidays (July) and year-end holidays (December)[55](index=55&type=chunk) [Note 4 - Acquisitions and Disposals](index=16&type=section&id=Note%204%20-%20Acquisitions%20and%20disposals) For the six months ended December 31, 2024, the Group executed significant acquisitions and disposals across its agricultural and urban real estate segments, including farm sales and property acquisitions by its subsidiaries - On August 6, 2024, BrasilAgro acquired Agrícola Nova Horizonte S.A., an agricultural company focused on grain production with **4,767 hectares** under lease, for **BRL 6.2 million**[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - On September 26, 2024, BrasilAgro completed the sale of the remaining **1,157 hectares** of Alto Taquari farm for the equivalent of **BRL 189.4 million**[61](index=61&type=chunk)[62](index=62&type=chunk) - On September 30, 2024, Cresud sold **3,630 hectares** of Los Pozos farm for a total of **USD 2.23 million**, with **USD 1.1 million** already collected[65](index=65&type=chunk) - On August 1, 2024, IRSA acquired an adjacent property to Alto Avellaneda shopping center for **USD 12.2 million**, having paid **USD 9.2 million**[69](index=69&type=chunk)[71](index=71&type=chunk) - On October 15, 2024, IRSA sold office floors at "261 Della Paolera" for approximately **USD 7.1 million**, with **USD 6.0 million** collected[77](index=77&type=chunk)[80](index=80&type=chunk) - On December 3, 2024, IRSA acquired the business assets of "Terrazas de Mayo" shopping center for **USD 27.75 million**, with **60%** already paid[81](index=81&type=chunk)[82](index=82&type=chunk) [Note 5 - Financial Risk Management and Fair Value Estimates](index=18&type=section&id=Note%205%20-%20Financial%20risk%20management%20and%20fair%20value%20estimates) These financial statements do not include all financial risk management information and should be read in conjunction with the annual financial statements, noting no significant changes in the Group's risk management or policies since the fiscal year-end, nor any material changes in business or economic conditions affecting the fair value of assets or liabilities as of this report's issuance - These financial statements do not contain all financial risk management information and should be read in conjunction with the annual financial statements[83](index=83&type=chunk) - There have been no significant changes in the Group's risk management or risk management policies since June 30, 2024[83](index=83&type=chunk) - As of the date of issuance of these financial statements, no significant changes in business or economic conditions have occurred that would affect the fair value of the Group's assets or liabilities[84](index=84&type=chunk) [Note 6 - Segment Information](index=19&type=section&id=Note%206%20-%20Segment%20information) The Group's operating segment information is reported by product and service, encompassing agricultural business and urban properties and investments, with an operating loss of **ARS 135,606 million** for the six months ended December 31, 2024, primarily due to net losses from fair value adjustments to investment properties in the urban real estate segment - The Group's operating segment information is reported by product and service, including **agricultural business** and **urban properties and investments**[85](index=85&type=chunk) Group Operating Segment Performance (ARS million) - December 31, 2024 (Six Months) | Metric | Agricultural Business | Urban Properties and Investments Business | Total Segment Information | | :--- | :--- | :--- | :--- | | Revenue | 238,715 | 170,141 | 408,856 | | Costs | (216,929) | (38,218) | (255,147) | | Gross profit/(loss) | 22,766 | 131,923 | 154,689 | | Net (loss)/gain from fair value adjustments to investment properties | (646) | (226,998) | (227,644) | | Operating profit/(loss) | 8,429 | (143,043) | (134,614) | | Segment profit/(loss) | 7,306 | (118,982) | (111,676) | Group Operating Segment Performance (ARS million) - December 31, 2023 (Six Months) | Metric | Agricultural Business | Urban Properties and Investments Business | Total Segment Information | | :--- | :--- | :--- | :--- | | Revenue | 225,523 | 183,583 | 409,106 | | Costs | (181,614) | (32,373) | (213,987) | | Gross profit | 57,588 | 151,210 | 208,798 | | Net gain from fair value adjustments to investment properties | 2,079 | 304,614 | 306,693 | | Operating profit | 41,449 | 423,929 | 465,378 | | Segment profit | 41,332 | 465,239 | 506,571 | - On December 31, 2024, the urban properties and investments business reported a net loss of **ARS 226,998 million** from fair value adjustments to investment properties, primarily due to implied exchange rate variations below inflation, resulting in a **28.35% decrease** in the real value of office buildings, undeveloped land, and other leased properties[92](index=92&type=chunk)[93](index=93&type=chunk) [I) Agricultural Business Line](index=21&type=section&id=(I)%20Agriculture%20line%20of%20business) The agricultural business line, comprising agricultural production, land transformation and sales, corporate, and other segments, reported an operating profit of **ARS 8,429 million** for the six months ended December 31, 2024, a significant decrease from ARS 41,449 million in the prior year, primarily due to losses in the agricultural production segment Agricultural Business Line Performance (ARS million) - December 31, 2024 (Six Months) | Metric | Agricultural Production | Land Transformation and Sales | Corporate | Other | Total Agricultural Business | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 148,762 | - | - | 89,953 | 238,715 | | Operating profit/(loss) | (3,667) | 31,088 | (2,617) | (16,375) | 8,429 | | Segment profit/(loss) | (3,983) | 31,088 | (2,617) | (17,182) | 7,306 | Agricultural Business Line Performance (ARS million) - December 31, 2023 (Six Months) | Metric | Agricultural Production | Land Transformation and Sales | Corporate | Other | Total Agricultural Business | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 153,519 | - | - | 72,004 | 225,523 | | Operating profit | 3,306 | 23,151 | (2,633) | 17,625 | 41,449 | | Segment profit | 5,483 | 23,151 | (2,633) | 15,331 | 41,332 | - Operating profit from the land transformation and sales segment increased from **ARS 23,151 million** in the prior year to **ARS 31,088 million** for the six months ended December 31, 2024, primarily driven by gains on disposal of agricultural land[90](index=90&type=chunk) [II) Urban Properties and Investments Business Line](index=22&type=section&id=(II)%20Urban%20properties%20and%20investments%20line%20of%20business) The urban properties and investments business line, comprising shopping centers, office buildings, sales and development, hotels, and other segments, reported an operating loss of **ARS 143,043 million** for the six months ended December 31, 2024, primarily due to net losses from fair value adjustments to investment properties Urban Properties and Investments Business Line Performance (ARS million) - December 31, 2024 (Six Months) | Metric | Shopping Centers | Office Buildings | Sales and Development | Hotels | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 120,943 | 8,690 | 6,894 | 30,545 | 3,069 | 170,141 | | Operating profit/(loss) | 212,264 | (97,938) | (260,638) | 3,260 | 9 | (143,043) | | Segment profit/(loss) | 212,264 | (97,938) | (260,638) | 3,260 | 24,070 | (118,982) | Urban Properties and Investments Business Line Performance (ARS million) - December 31, 2023 (Six Months) | Metric | Shopping Centers | Office Buildings | Sales and Development | Hotels | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 122,405 | 7,648 | 9,858 | 41,094 | 2,578 | 183,583 | | Operating profit | 426,437 | 6,325 | (37,576) | 13,719 | 15,024 | 423,929 | | Segment profit | 426,437 | 6,325 | (37,576) | 13,719 | 56,334 | 465,239 | - Net gain from fair value adjustments to investment properties in the shopping centers segment decreased from **ARS 331,033 million** in the prior year to **ARS 119,242 million** for the six months ended December 31, 2024, while the sales and development segment recorded a **loss of ARS 241,355 million**[92](index=92&type=chunk)[95](index=95&type=chunk) [Note 7 - Investments in Associates and Joint Ventures](index=24&type=section&id=Note%207%20-%20Investments%20in%20associates%20and%20joint%20ventures) As of December 31, 2024, the Group's total investments in associates and joint ventures increased to **ARS 186,740 million** from ARS 166,663 million on June 30, 2024, with a **profit share of ARS 23,654 million** for the period, partially offset by **dividend distributions of ARS 2,390 million** Changes in Investments in Associates and Joint Ventures (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Balance at beginning of period | 166,663 | 178,574 | | Share of profit | 23,654 | 39,921 | | Dividends | (2,390) | (20,896) | | Balance at end of period | 186,740 | 166,663 | - Investment in BHSA increased from **ARS 125,724 million** on June 30, 2024, to **ARS 137,603 million** on December 31, 2024, with a share of comprehensive income of **ARS 14,710 million**[100](index=100&type=chunk) - Investment in La Rural S.A. increased from **ARS 12,862 million** on June 30, 2024, to **ARS 16,835 million** on December 31, 2024, with a share of comprehensive income of **ARS 6,027 million**[100](index=100&type=chunk) [Note 8 - Investment Properties](index=25&type=section&id=Note%208%20-%20Investment%20properties) As of December 31, 2024, the fair value of the Group's investment properties decreased to **ARS 1,918,764 million** from ARS 2,120,192 million on June 30, 2024, with a **net loss of ARS 227,858 million** from fair value adjustments for the period, primarily influenced by changes in macroeconomic conditions Changes in Investment Properties (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Fair value at beginning of period | 2,120,192 | 2,638,688 | | Net (loss)/gain from fair value adjustments | (227,858) | (422,361) | | Fair value at end of period | 1,918,764 | 2,120,192 | - As of December 31, 2024, investment property values included **ARS 982,785 million** for shopping centers and **ARS 603,220 million** for undeveloped land[104](index=104&type=chunk) - The net loss of **ARS 230,596 million** from fair value adjustments to investment properties was primarily due to macroeconomic impacts from inflation and changes in reference exchange rates[105](index=105&type=chunk) - The "Ramblas del Plata" project has obtained its environmental suitability certificate for the first stage and is currently tendering for earthworks, infrastructure, and road construction[113](index=113&type=chunk) [Note 9 - Property, Plant and Equipment](index=26&type=section&id=Note%209%20-%20Property,%20plant%20and%20equipment) As of December 31, 2024, the Group's net book value of property, plant, and equipment decreased to **ARS 572,743 million** from ARS 618,361 million on June 30, 2024, with additions of **ARS 20,376 million** for the period, but a net reduction due to currency translation adjustments and depreciation expenses Changes in Property, Plant and Equipment (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Net book value at beginning of period | 618,361 | 655,054 | | Additions | 20,376 | 58,927 | | Disposals | (1,572) | (27,136) | | Currency translation adjustments | (55,648) | (61,184) | | Depreciation expense | (15,764) | (27,290) | | Net book value at end of period | 572,743 | 618,361 | - As of December 31, 2024, the net book value of owned agricultural land was **ARS 454,901 million**, and buildings and facilities were **ARS 80,529 million**[115](index=115&type=chunk) - Of the depreciation expense, **ARS 2,796 million** was recognized in "Costs," **ARS 1,047 million** in "General and administrative expenses," **ARS 242 million** in "Selling expenses," and **ARS 11,679 million** was capitalized as biological asset costs[116](index=116&type=chunk) [Note 10 - Trading Properties](index=27&type=section&id=Note%2010%20-%20Trading%20properties) As of December 31, 2024, the Group's total trading properties decreased to **ARS 22,465 million** from ARS 24,159 million on June 30, 2024, comprising **ARS 22,110 million** in non-current and **ARS 355 million** in current trading properties Changes in Trading Properties (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Balance at beginning of period | 24,159 | 27,808 | | Additions | 792 | 1,102 | | Disposals | (914) | (3,466) | | Balance at end of period | 22,465 | 24,159 | | Non-current | 22,110 | 23,660 | | Current | 355 | 499 | - The decrease in trading properties was primarily influenced by currency translation adjustments and disposals[118](index=118&type=chunk) [Note 11 - Intangible Assets](index=27&type=section&id=Note%2011%20-%20Intangible%20assets) As of December 31, 2024, the Group's net book value of intangible assets decreased to **ARS 73,580 million** from ARS 87,801 million on June 30, 2024, with additions of **ARS 2,760 million** for the period, but reduced by **impairment losses of ARS 11,849 million** and **amortization expenses of ARS 1,332 million** Changes in Intangible Assets (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Net book value at beginning of period | 87,801 | 44,856 | | Additions | 2,760 | 12,173 | | Disposals | (5,662) | (287) | | Impairment | (11,849) | - | | Amortization expense | (1,332) | (1,867) | | Net book value at end of period | 73,580 | 87,801 | - The **impairment loss of ARS 11,849 million** was primarily due to the exchange rate variation for the period being lower than accumulated inflation, causing the dollar reference value of units to be received through barter agreements to be lower than their inflation-adjusted cost when converted to Argentine Pesos[121](index=121&type=chunk) - Of the amortization expense, **ARS 1,064 million** was recognized in "Costs" and **ARS 268 million** in "General and administrative expenses"[119](index=119&type=chunk) [Note 12 - Right-of-Use Assets and Lease Liabilities](index=27&type=section&id=Note%2012%20-%20Right-of-use%20assets%20and%20lease%20liabilities) As of December 31, 2024, the Group's total right-of-use assets amounted to **ARS 101,611 million** and total lease liabilities to **ARS 96,472 million**, with right-of-use assets primarily comprising agricultural land, convention centers, and office buildings, and depreciation expense for the period totaling **ARS 10,586 million** Right-of-Use Assets (ARS million) | Asset Type | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Agricultural land | 89,274 | 78,872 | | Convention centers | 4,099 | 10,430 | | Office buildings, shopping centers and other buildings | 5,000 | 5,453 | | Machinery and equipment | 3,238 | 2,134 | | **Total right-of-use assets** | **101,611** | **96,889** | Lease Liabilities (ARS million) | Liability Type | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Agricultural land | 91,376 | 82,304 | | Convention centers | 2,153 | 10,867 | | Office buildings, shopping centers and other buildings | 2,943 | 3,466 | | **Total lease liabilities** | **96,472** | **96,637** | | Non-current | 75,723 | 74,184 | | Current | 20,749 | 22,453 | - As of December 31, 2024, depreciation expense for right-of-use assets totaled **ARS 10,586 million**, of which **ARS 9,437 million** was capitalized as biological asset costs[125](index=125&type=chunk) [Note 13 - Biological Assets](index=29&type=section&id=Note%2013%20-%20Biological%20assets) As of December 31, 2024, the Group's net book value of biological assets increased to **ARS 146,882 million** from ARS 104,550 million on June 30, 2024, comprising **ARS 37,258 million** in non-current and **ARS 109,624 million** in current biological assets, with initial recognition and fair value changes for the period totaling **ARS 4,194 million** Changes in Biological Assets (ARS million) | Metric | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Net book value at beginning of period | 104,550 | 126,007 | | Initial recognition and fair value changes | 4,194 | 7,072 | | Purchases | 7,798 | 8,998 | | Decrease due to harvest | (85,733) | (265,758) | | Sales | (14,489) | (24,716) | | Net book value at end of period | 146,882 | 104,550 | | Non-current (productive) | 37,258 | 33,948 | | Current (consumable) | 109,624 | 70,602 | - Initial recognition and fair value changes for biological assets with a production cycle exceeding one year (i.e., livestock) amounted to **ARS 3,912 million**, with **ARS 5,444 million** attributed to price changes and **(ARS 1,532) million** to physical changes[127](index=127&type=chunk) Production Capitalized Costs as of December 31, 2024 (ARS million) | Item | Amount | | :--- | :--- | | Materials and services | 112,599 | | Salaries, social security costs and other personnel expenses | 6,315 | | Depreciation and amortization | 21,116 | | **Total** | **148,671** | [Note 14 - Inventories](index=31&type=section&id=Note%2014%20-%20Inventories) As of December 31, 2024, the Group's total inventories decreased to **ARS 105,990 million** from ARS 140,854 million on June 30, 2024, comprising **ARS 105,389 million** in agricultural inventories and **ARS 601 million** in hotel supplies Inventory Details (ARS million) | Inventory Type | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Crops | 33,701 | 63,316 | | Materials and supplies | 70,442 | 75,489 | | Sugarcane | 1,246 | 1,225 | | Total agricultural inventories | 105,389 | 140,030 | | Hotel supplies | 601 | 824 | | **Total inventories** | **105,990** | **140,854** | - The decrease in inventories was primarily attributable to a reduction in crop inventories[132](index=132&type=chunk) [Note 15 - Financial Instruments by Category](index=31&type=section&id=Note%2015%20-%20Financial%20instruments%20by%20category) This note presents financial assets and liabilities by category, reconciled with corresponding items in the consolidated statement of financial position, with total financial assets of **ARS 817,300 million** and total financial liabilities of **ARS 1,413,894 million** as of December 31, 2024, classified by fair value hierarchy (Level 1, Level 2, Level 3) - Financial assets and liabilities are classified by fair value hierarchy: **Level 1, Level 2, and Level 3**[133](index=133&type=chunk) Financial Assets (ARS million) - December 31, 2024 | Category | Amortized Cost | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Trade and other receivables | 323,849 | 45,874 | - | - | 369,723 | | Investments in financial assets | 4,121 | 216,072 | - | - | 220,193 | | Derivative financial instruments | - | 8,335 | 1,542 | 1 | 9,878 | | Cash and cash equivalents | 28,320 | 41,592 | - | - | 69,912 | | **Total financial assets** | **388,464** | **311,948** | **1,542** | **1** | **701,955** | Financial Liabilities (ARS million) - December 31, 2024 | Category | Amortized Cost | Level 1 | Total | | :--- | :--- | :--- | :--- | | Trade and other payables | 254,239 | - | 254,239 | | Borrowings | 1,016,200 | - | 1,016,200 | | Derivative financial instruments | - | 26,150 | 26,150 | | **Total financial liabilities** | **1,270,439** | **26,150** | **1,296,589** | - As of December 31, 2024, there were no differences in the valuation models used for Level 2 instruments compared to those used on June 30, 2024[138](index=138&type=chunk) [Note 16 - Trade and Other Receivables](index=35&type=section&id=Note%2016%20-%20Trade%20and%20other%20receivables) As of December 31, 2024, the Group's total trade and other receivables slightly decreased to **ARS 479,959 million** from ARS 488,584 million on June 30, 2024, with trade, lease, and service receivables at **ARS 315,281 million** and prepayments at **ARS 77,233 million** Trade and Other Receivables Details (ARS million) | Item | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Trade, lease and service receivables | 315,281 | 311,550 | | Less: Allowance for doubtful accounts | (5,109) | (5,184) | | Total trade receivables | 310,172 | 306,366 | | Prepayments | 77,233 | 71,746 | | Tax receivables | 37,660 | 31,116 | | **Total trade and other receivables** | **479,959** | **488,584** | | Non-current | 158,452 | 171,624 | | Current | 321,507 | 316,960 | Changes in Allowance for Doubtful Accounts (ARS million) | Item | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Balance at beginning of period | 5,184 | 6,806 | | Additions | 857 | 1,547 | | Reversals | (191) | (275) | | Currency translation adjustments | 211 | 3,590 | | Used during the period | (149) | (19) | | Inflation adjustment | (803) | (6,465) | | Balance at end of period | 5,109 | 5,184 | - The carrying amounts of trade and other receivables approximate their fair values due to their short-term nature, making the discount effect insignificant[142](index=142&type=chunk) [Note 17 - Cash Flow and Cash Equivalents Information](index=36&type=section&id=Note%2017%20-%20Cash%20flow%20and%20cash%20equivalents%20information) For the six months ended December 31, 2024, the Group reported a net cash outflow of **ARS 13,487 million** from operating activities before tax, a significant shift from the prior year's net inflow of ARS 112,684 million, with non-cash transactions including increases in investment properties, decreases in property, plant, and equipment, and currency translation adjustments for associates and joint ventures Operating Cash Flow Details (ARS million) | Item | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | (Loss)/profit for the period | (64,391) | 266,118 | | Income tax | (22,648) | 82,064 | | Amortization and depreciation | 6,736 | 6,242 | | Net loss/(gain) from fair value adjustments to investment properties | 227,858 | (304,210) | | Net financial results | (96,829) | 147,559 | | Net cash from operating activities before tax | (13,487) | 112,684 | - The significant decrease in operating cash flow was primarily attributable to the loss for the period, net loss from fair value adjustments to investment properties, and the negative impact of net financial results[145](index=145&type=chunk) - Non-cash transactions for the period included an increase in investment properties of **ARS 12,397 million** through trade and other payables, and currency translation adjustments and other comprehensive income for associates and joint ventures of **ARS 30,920 million**[147](index=147&type=chunk) [Note 18 - Trade and Other Payables](index=38&type=section&id=Note%2018%20-%20Trade%20and%20other%20payables) As of December 31, 2024, the Group's total trade and other payables slightly increased to **ARS 371,544 million** from ARS 362,283 million on June 30, 2024, with trade payables at **ARS 209,824 million** and advances from sales, leases, and services at **ARS 54,724 million** Trade and Other Payables Details (ARS million) | Item | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Trade payables | 209,824 | 171,851 | | Advances from sales, leases and services | 54,724 | 74,713 | | Accrued invoices | 21,508 | 15,651 | | Deferred income | 532 | 572 | | Admission fees | 34,635 | 35,623 | | Deposits | 538 | 696 | | **Total trade payables** | **321,761** | **299,106** | | Dividends payable to non-controlling interests | 278 | 7,960 | | Tax payables | 27,414 | 18,931 | | Directors' fees | 4,557 | 6,762 | | Management fees | - | 9,529 | | Other | 17,534 | 19,995 | | **Total other payables** | **49,783** | **63,177** | | **Total trade and other payables** | **371,544** | **362,283** | | Non-current | 62,962 | 61,275 | | Current | 308,582 | 301,008 | - Trade payables significantly increased, while advances from sales, leases, and services decreased[149](index=149&type=chunk) [Note 19 - Provisions](index=38&type=section&id=Note%2019%20-%20Provisions) As of December 31, 2024, the Group's total provisions slightly decreased to **ARS 31,417 million** from ARS 31,706 million on June 30, 2024, comprising **ARS 31,383 million** for legal claims and **ARS 34 million** for investments in associates and joint ventures, with the IDBD lawsuit ongoing and relevant provisions made Changes in Provisions (ARS million) | Item | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Balance at beginning of period | 31,706 | 32,994 | | Additions | 2,662 | 10,216 | | Reductions | (457) | (506) | | Inflation adjustment | (2,195) | (10,194) | | Balance at end of period | 31,417 | 31,706 | | Non-current | 26,382 | 26,142 | | Current | 5,035 | 5,564 | - IDBD filed a lawsuit against Dolphin BV and IRSA on December 26, 2021, claiming **ILS 140 million**, with legal proceedings ongoing and the company having made relevant provisions[155](index=155&type=chunk)[159](index=159&type=chunk) - On April 9, 2024, the court dismissed IRSA's appeal regarding applicable jurisdiction and the form of claim notification, ordering IRSA and Dolphin to pay **ILS 25,000** in costs[157](index=157&type=chunk) [Note 20 - Borrowings](index=40&type=section&id=Note%2020%20-%20Borrowings) As of December 31, 2024, the Group's total borrowings increased to **ARS 1,016,200 million** from ARS 996,360 million on June 30, 2024, with non-convertible notes accounting for **ARS 895,806 million** and bank loans for **ARS 84,451 million**, as both Cresud and IRSA issued new notes for debt refinancing and working capital during the period Borrowings Details (ARS million) | Item | December 31, 2024 (Carrying Amount) | June 30, 2024 (Carrying Amount) | | :--- | :--- | :--- | | Non-convertible notes | 895,806 | 892,026 | | Bank loans | 84,451 | 51,791 | | Bank overdrafts | 27,704 | 40,158 | | Other | 8,239 | 12,385 | | **Total borrowings** | **1,016,200** | **996,360** | | Non-current | 628,242 | 576,097 | | Current | 387,958 | 420,263 | - On July 18, 2024, Cresud issued Series XLVI notes totaling **USD 28.6 million** at a fixed interest rate of **1.5%**[162](index=162&type=chunk) - On November 15, 2024, Cresud issued Series XLVII notes totaling **USD 64.4 million** at a fixed interest rate of **7.0%**, maturing on November 15, 2028[163](index=163&type=chunk) - On October 23, 2024, IRSA issued Series XXII and XXIII notes totaling **USD 67.3 million** with interest rates of **5.75%** and **7.25%**, respectively[164](index=164&type=chunk) [Note 21 - Taxation](index=41&type=section&id=Note%2021%20-%20Taxation) For the six months ended December 31, 2024, the Group's income tax expense was **ARS 22,648 million**, a significant shift from **(ARS 82,064) million** in the prior year, with the net balance of deferred tax assets and liabilities improving to **(ARS 666,014) million** from (ARS 761,213) million on June 30, 2024 Income Tax Details (ARS million) | Item | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current income tax | (62,320) | (25,859) | | Deferred income tax | 84,968 | (56,205) | | **Income tax** | **22,648** | **(82,064)** | Changes in Deferred Income Tax Account (ARS million) | Item | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Balance at beginning of period | (761,213) | (864,233) | | Recognized in profit or loss | 84,968 | 97,354 | | Balance at end of period | (666,014) | (761,213) | - Income tax expense shifted from a negative value in the prior year to a positive value, primarily due to a significant positive impact from deferred income tax[165](index=165&type=chunk) [Note 22 - Revenues](index=42&type=section&id=Note%2022%20-%20Revenues) For the six months ended December 31, 2024, the Group's total revenue slightly increased by **0.7%** to **ARS 449,163 million** from ARS 445,859 million in the prior year, with agricultural business revenue at **ARS 237,291 million** and urban properties and investments business revenue at **ARS 211,872 million** Revenue Details (ARS million) | Revenue Source | December 31, 2024 | December 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Agricultural business sales and services revenue | 237,291 | 225,005 | 5.5% | | Urban properties and investments business sales and services revenue | 211,872 | 220,854 | -4.1% | | **Total revenue** | **449,163** | **445,859** | **0.7%** | - Agricultural business revenue growth was primarily driven by increased sales of supplies and livestock[166](index=166&type=chunk) - Urban properties and investments business revenue decreased primarily due to reduced income from hotel operations and tourism services[166](index=166&type=chunk) [Note 23 - Costs](index=42&type=section&id=Note%2023%20-%20Costs) For the six months ended December 31, 2024, the Group's total costs increased by **17.9%** to **ARS 298,248 million** from ARS 253,034 million in the prior year, with agricultural business sales and services costs at **ARS 216,795 million** and urban properties and investments business sales and services costs at **ARS 81,320 million** Cost Details (ARS million) | Cost Source | December 31, 2024 | December 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Agricultural business sales and services costs | 216,795 | 181,470 | 19.5% | | Urban properties and investments business sales and services costs | 81,320 | 71,414 | 13.9% | | **Total costs** | **298,248** | **253,034** | **17.9%** | - Agricultural business cost growth was primarily influenced by increased costs of crops and supplies[167](index=167&type=chunk) - Urban properties and investments business cost growth was primarily influenced by increased lease and service costs[167](index=167&type=chunk) [Note 24 - Expenses by Nature](index=42&type=section&id=Note%2024%20-%20Expenses%20by%20nature) Group expenses are functionally classified under "Costs," "General and administrative expenses," and "Selling expenses," totaling **ARS 382,005 million** for the six months ended December 31, 2024, an increase from ARS 323,813 million in the prior year, with agricultural products and biological asset changes, salaries and social security costs, and cost of goods sold and services provided being the main components Expenses by Nature (ARS million) | Nature of Expense | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Agricultural products and biological assets changes | 98,947 | 108,040 | | Salaries, social security costs and other personnel expenses | 63,146 | 59,878 | | Fees for services and payments | 35,633 | 40,917 | | Cost of goods sold and services provided | 87,579 | 37,636 | | Maintenance, security, cleaning, repairs and others | 26,442 | 22,382 | | Taxes and contributions | 17,731 | 22,618 | | Advertising and other selling expenses | 11,764 | 12,282 | | Freight | 11,954 | 7,812 | | Directors' fees | 9,079 | (6,966) | | Depreciation and amortization | 6,736 | 6,242 | | **Total expenses** | **382,005** | **323,813** | - Cost of goods sold and services provided significantly increased, while agricultural products and biological asset changes costs slightly decreased[169](index=169&type=chunk) - Directors' fees shifted from a negative value (reversal) in the prior year to a positive value for the six months ended December 31, 2024, reflecting the approval of board remuneration[169](index=169&type=chunk)[170](index=170&type=chunk) [Note 25 - Other Operating Results, Net](index=44&type=section&id=Note%2025%20-%20Other%20operating%20results,%20net) For the six months ended December 31, 2024, the Group's other operating results, net, amounted to **(ARS 1,198) million**, a decrease from ARS 11,998 million in the prior year, primarily due to impairment losses on intangible assets and the negative impact of legal proceedings and other contingencies Other Operating Results, Net (ARS million) | Item | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Gain from commodity derivative financial instruments | 3,386 | 2,907 | | Gain/(loss) on disposal of property, plant and equipment | 3 | (2,361) | | Impairment of intangible assets | (11,849) | - | | Gain/(loss) on disposal of joint ventures | 2,061 | (1,883) | | Legal proceedings and other contingencies | (2,236) | (4,546) | | Interest and allowances generated by operating assets | 10,593 | 15,765 | | **Total** | **(1,198)** | **11,998** | - The **impairment loss of ARS 11,849 million** on intangible assets was the primary reason for the negative shift in other operating results, net, for the period[172](index=172&type=chunk) - Interest and allowances generated by operating assets decreased from **ARS 15,765 million** in the prior year to **ARS 10,593 million** for the six months ended December 31, 2024[172](index=172&type=chunk) [Note 26 - Financial Results, Net](index=44&type=section&id=Note%2026%20-%20Financial%20results,%20net) For the six months ended December 31, 2024, the Group's net financial results significantly improved to **ARS 24,913 million** from **(ARS 144,523) million** in the prior year, primarily driven by net exchange gains and fair value gains on financial assets and liabilities, despite negative impacts from inflation adjustments Net Financial Results (ARS million) | Item | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Financial income | 3,350 | 18,864 | | Financial costs | (37,109) | (40,676) | | Other financial results: | | | | Net exchange differences | 36,726 | (455,008) | | Fair value gains on financial assets and liabilities | 68,842 | 206,729 | | Loss from derivative financial instruments (excluding commodities) | (12,401) | (33,064) | | Inflation adjustment | (34,418) | 148,683 | | **Net financial results** | **24,913** | **(144,523)** | - Net exchange differences shifted from a **loss of (ARS 455,008) million** in the prior year to a **gain of ARS 36,726 million** for the six months ended December 31, 2024, serving as a primary driver for the improvement in net financial results[173](index=173&type=chunk) - Fair value gains on financial assets and liabilities decreased from **ARS 206,729 million** in the prior year to **ARS 68,842 million** for the six months ended December 31, 2024[173](index=173&type=chunk) [Note 27 - Related Parties Transactions](index=44&type=section&id=Note%2027%20-%20Related%20parties%20transactions) As of December 31, 2024, the Group's net balance with related parties slightly decreased to **ARS 17,683 million** from ARS 18,632 million on June 30, 2024, with related party transactions for the period resulting in a **loss of (ARS 9,095) million**, a shift from a profit of ARS 3,327 million in the prior year, primarily due to the negative impact of directors' fees Summary of Related Party Balances (ARS million) | Item | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Trade and other receivables | 29,688 | 42,544 | | Investments in financial assets | 4,282 | 4,582 | | Trade and other payables | (15,288) | (27,861) | | Borrowings | (999) | (633) | | **Total** | **17,683** | **18,632** | Summary of Related Party Transaction Results (ARS million) | Related Party | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total associates and joint ventures | 156 | 1,933 | | Total other related parties | 423 | (5,202) | | Total parent company | 15 | - | | Total directors and key management personnel | (9,689) | 6,596 | | **Total** | **(9,095)** | **3,327** | - Directors' and key management personnel expenses shifted from **ARS 6,966 million** (management fees) in the prior year to **(ARS 9,079) million** (management fees) for the six months ended December 31, 2024, primarily contributing to the negative related party transaction results[179](index=179&type=chunk) [Note 28 - CNV General Resolution N° 622](index=46&type=section&id=Note%2028%20-%20CNV%20General%20Resolution%20N%C2%B0%20622) This note details information disclosed in the financial statements in compliance with CNV General Resolution N° 622, covering property, plant and equipment, intangible assets, equity investments, other investments, provisions and allowances, cost of sales, and foreign currency assets and liabilities Information Required by CNV General Resolution N° 622 | Appendix | Note | | :--- | :--- | | Appendix A - Property, plant and equipment | Note 8 - Investment properties; Note 9 - Property, plant and equipment | | Appendix B - Intangible assets | Note 11 - Intangible assets | | Appendix C - Equity investments | Note 7 - Investments in associates and joint ventures | | Appendix E - Provisions and allowances | Note 16 - Trade and other receivables and Note 19 - Provisions | | Appendix G - Foreign currency assets and liabilities | Note 30 - Foreign currency assets and liabilities | [Note 29 - Cost of Sales and Services Provided](index=48&type=section&id=Note%2029%20-%20Cost%20of%20sales%20and%20services%20provided) For the six months ended December 31, 2024, the Group's total cost of sales and services provided increased to **ARS 298,115 million** from ARS 252,884 million in the prior year, with agricultural business costs at **ARS 216,795 million** and urban properties and investments business costs at **ARS 81,320 million** Cost of Sales and Services Provided Details (ARS million) | Item | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Inventories at beginning of period | 94,961 | 96,796 | | Initial recognition and fair value changes of biological assets | 10,647 | 862 | | Harvest | 149,477 | 176,434 | | Purchases and classification | 207,387 | 191,693 | | Consumption | (30,134) | (20,805) | | Inventories at end of period | (183,226) | (252,660) | | **Total costs** | **298,115** | **252,884** | - The increase in costs was primarily influenced by purchases and classification, as well as initial recognition and fair value changes of biological assets[185](index=185&type=chunk) [Note 30 - Foreign Currency Assets and Liabilities](index=49&type=section&id=Note%2030%20-%20Foreign%20currency%20assets%20and%20liabilities) As of December 31, 2024, the Group's total foreign currency assets amounted to **ARS 319,131 million** and total foreign currency liabilities to **ARS 920,040 million**, with the US Dollar being the primary foreign currency, significantly impacting trade and other receivables, investments in financial assets, and borrowings Foreign Currency Assets (ARS million) - December 31, 2024 | Item | US Dollars | Brazilian Reals | Euros | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Trade and other receivables | 156,001 | 775 | 11 | 212 | 157,074 | | Investments in financial assets | 103,752 | - | - | 2,446 | 106,198 | | Derivative financial instruments | 1,191 | - | - | - | 1,191 | | Cash and cash equivalents | 50,428 | 24 | 11 | 4,205 | 54,668 | | **Total assets** | **311,372** | **799** | **22** | **6,863** | **319,131** | Foreign Currency Liabilities (ARS million) - December 31, 2024 | Item | US Dollars | Brazilian Reals | New Israeli Shekels | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Trade and other payables | 80,967 | 3,439 | - | 3,009 | 87,415 | | Lease liabilities | 6,848 | - | - | - | 6,848 | | Provisions | - | - | 24,411 | - | 24,411 | | Borrowings | 801,360 | - | - | - | 801,360 | | Derivative financial instruments | 6 | - | - | - | 6 | | **Total liabilities** | **889,181** | **3,439** | **24,411** | **3,009** | **920,040** | - The US Dollar is the primary currency for the Group's foreign currency assets and liabilities, with the highest proportion of US Dollar-denominated items in borrowings[189](index=189&type=chunk) [Note 31 - Other Relevant Events of the Period](index=51&type=section&id=Note%2031%20-%20Other%20relevant%20events%20of%20the%20period) During the period, Cresud and its subsidiaries BrasilAgro and IRSA experienced several significant events, including Cresud's warrant exercises, cash dividend approvals and payments, and completion of a new share repurchase plan, alongside BrasilAgro's dividend approvals and payments, and IRSA's cash dividend and treasury share distributions, share repurchase plan completion, and warrant exercises - For the six months ended December 31, 2024, Cresud received **USD 2.8 million** from the exercise of warrants, issuing **6,785,115 ordinary shares**[192](index=192&type=chunk) - On October 28, 2024, Cresud's Shareholders' Meeting approved and paid a cash dividend of **ARS 45,000 million**[193](index=193&type=chunk) - Cresud's Board of Directors approved a new share repurchase plan for a maximum of **ARS 6,500 million**, which was completed on December 19, 2024, repurchasing **4,522,623 ordinary shares**[196](index=196&type=chunk)[197](index=197&type=chunk) - On October 22, 2024, BrasilAgro's Shareholders' Meeting approved and paid a dividend of **BRL 155 million**[198](index=198&type=chunk) - IRSA's Board of Directors approved a new share repurchase plan for a maximum of **ARS 15,000 million**, which was completed on September 12, 2024, repurchasing **11,541,885 ordinary shares**[200](index=200&type=chunk)[201](index=201&type=chunk) - On October 28, 2024, IRSA's Shareholders' Meeting approved and paid a cash dividend of **ARS 90,000 million** and distributed **25,700,000 treasury shares**[202](index=202&type=chunk)[203](index=203&type=chunk) [Note 32 - Subsequent Events](index=53&type=section&id=Note%2032%20-%20Subsequent%20Events) Subsequent to the reporting period, FYO approved a **USD 3.2 million** dividend payment on January 8, 2025, and IRSA signed two sales agreements for "Ramblas del Plata" project plots on January 27, 2025, totaling approximately **USD 23.4 million**, with **30%** paid upon signing - On January 8, 2025, FYO's Shareholders' Meeting approved a dividend payment of **USD 3.2 million**[206](index=206&type=chunk) - On January 27, 2025, IRSA signed two sales agreements for "Ramblas del Plata" project plots totaling approximately **USD 23.4 million**, with **30%** of the amount already collected[207](index=207&type=chunk)[208](index=208&type=chunk) [Report on Review of Interim Financial Information](index=54&type=section&id=Report%20on%20review%20of%20interim%20financial%20information) [Auditor's Review and Conclusion](index=54&type=section&id=Auditor's%20Review%20and%20Conclusion) Price Waterhouse & Co. S.R.L. reviewed Cresud Group's condensed interim consolidated financial information as of December 31, 2024, without issuing an audit opinion due to the limited scope, concluding that no material matters indicated non-compliance with IAS 34, though noting that company financial statements were not transcribed to inventory and balance sheets, and December 2024 accounting entries were not transcribed to the general ledger - The auditors reviewed the condensed interim consolidated financial information, not an audit, and therefore did not express an audit opinion[212](index=212&type=chunk)[213](index=213&type=chunk) - The review concluded that no material matters were identified to suggest the financial information was not prepared in all material respects in accordance with **IAS 34**[213](index=213&type=chunk) - The company's financial statements were not transcribed to the inventory and balance sheets, and December 2024 accounting entries were not transcribed to the general ledger[215](index=215&type=chunk) - As of December 31, 2024, Cresud's debt to the Argentine Integrated Social Security System amounted to **ARS 596,820,390**, which was not yet due on that date[215](index=215&type=chunk) [Brief Comment on Company Activities and Subsequent Significant Events](index=56&type=section&id=Brief%20comment%20on%20the%20Company's%20activities%20during%20the%20period,%20including%20references%20to%20significant%20events%20that%20occurred%20after%20the%20end%20of%20the%20period.) [Consolidated Results Overview](index=56&type=section&id=Consolidated%20Results%20Overview) For the first half of fiscal year 2025, consolidated revenue increased by **0.7%** year-over-year, while adjusted EBITDA decreased by **15.3%**, resulting in a net loss of **ARS 64,391 million**, a **124.2% decline** from the prior year, primarily due to fair value adjustment losses on investment properties in the urban real estate and investments business Key Consolidated Performance Data (ARS million) | Metric | H1 FY2025 | H1 FY2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 449,163 | 445,859 | 0.7% | | Costs | (298,248) | (253,034) | 17.9% | | Gross profit | 153,481 | 207,081 | (25.9)% | | Operating results | (135,606) | 449,429 | (130.2)% | | Adjusted EBITDA | 134,961 | 159,389 | (15.3)% | | Results for the period | (64,391) | 266,118 | (124.2)% | | Attributable to owners of the parent | (61,541) | 106,267 | (157.9)% | - Net profit shifted from a **profit of ARS 266,118 million** in H1 FY2024 to a **loss of ARS 64,391 million** in H1 FY2025, primarily due to fair value adjustment losses on investment properties in the urban real estate and investments business[218](index=218&type=chunk) - Adjusted EBITDA for the agricultural business was **ARS 35,262 million**, while for the urban properties and investments business (through IRSA), it was **ARS 103,136 million**[217](index=217&type=chunk) [Description of Operations by Segment](index=57&type=section&id=Description%20of%20Operations%20by%20Segment) This section details the operating performance of the Group's two core business segments: agricultural business and urban properties and investments, highlighting strong land development and sales in agriculture, but losses in agricultural production (especially grains) due to prices lagging inflation, while sugarcane and livestock production improved, and urban properties and investments (via IRSA) saw reduced revenue and adjusted EBITDA due to negative fair value adjustments to investment properties Segment Performance Summary (ARS million) - H1 FY2025 | Metric | Agricultural Business | Urban Properties and Investments Business | Total | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 238,715 | 170,141 | 408,856 | (0.1)% | | Operating results | 8,429 | (143,043) | (134,614) | (128.9)% | | Segment results | 7,306 | (118,982) | (111,676) | (122.0)% | - In H1 FY2025, the Group's land portfolio under management totaled **728,114 hectares**, with **304,189 hectares** as productive land and **423,925 hectares** as land reserves[223](index=223&type=chunk) - In H1 FY2025, the agricultural business's land development and sales segment profit grew by **34.3%**, primarily driven by gains from agricultural land sales[227](index=227&type=chunk) - The agricultural production segment shifted from a **profit of ARS 5,483 million** in H1 FY2024 to a **loss of ARS 3,983 million** in H1 FY2025, primarily due to Argentine grain prices lagging inflation[229](index=229&type=chunk)[237](index=237&type=chunk) - Sugarcane activity profit increased by **352.9%**, primarily due to increased production and improved margins in Brazil[232](index=232&type=chunk)[236](index=236&type=chunk) - Livestock activity profit increased by **617.1%**, primarily due to improved market prices in Brazil and a significant increase in Argentine meat production[241](index=241&type=chunk) [I) Land Development and Sales](index=58&type=section&id=I)%20Land%20Development%20and%20Sales) The Land Development and Sales segment achieved an operating profit of **ARS 31,088 million** in H1 FY2025, a **34.3% year-over-year increase**, primarily driven by agricultural land sales recorded in the first quarter, as the company continues to divest properties at significant valuations to reinvest in new farms with higher appreciation potential Land Development and

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - A very small fraction of companies are considered suitable for a buy recommendation at any given time, highlighting a selective investment strategy [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a generally bullish market [1]

Core Insights - Cresud S.A.C.I.F. y A. reported a significant loss of ARS 64,391 million for the first half of FY 2025, primarily due to changes in the fair value of IRSA investment properties [4] - The company experienced a decline in adjusted EBITDA by 15.3% year-over-year, totaling ARS 134,961 million [4] - The Argentine government announced a temporary reduction in crop export taxes, positively impacting crop prices by approximately 5% [4] Financial Highlights - Agricultural Business Revenue increased to ARS 238,715 million from ARS 225,523 million year-over-year [3] - Urban Properties Revenues decreased to ARS 170,141 million from ARS 183,583 million year-over-year [3] - Consolidated Gross Profit fell to ARS 153,481 million from ARS 207,081 million year-over-year [3] - The company's market capitalization was approximately USD 761.8 million as of December 31, 2024 [3] Operational Insights - The company planted 303,000 hectares in the region, representing a 9% increase compared to the previous season [4] - A cash dividend of ARS 45,000 million was distributed in November 2024, yielding approximately 7% [4] - The adjusted EBITDA for agribusiness was ARS 35,262 million, while Urban adjusted EBITDA reached ARS 103,136 million [4]

Group 1 - Argentina's economy has undergone significant changes since Javier Milei took office, impacting various sectors including agriculture and real estate [1] - Cresud (NASDAQ: CRESY) has experienced notable shifts in its operational landscape, largely attributed to Milei's aggressive policy changes [1]

Financial Data and Key Metrics Changes - The company reported a net income of ARS -72.3 billion, with a significant accounting effect due to the valuation of investment properties at fair value, resulting in a negative impact when expressed in pesos [22][23] - The net debt has decreased from $421 million in fiscal year 2021 to $310 million currently, indicating improved financial health [24] Business Line Data and Key Metrics Changes - The agricultural segment is experiencing a 9% increase in planted area, with a total of 303,000 hectares expected to be planted across Argentina, Brazil, Bolivia, and Paraguay [9] - The real estate segment saw significant transactions, including the sale of undeveloped land in Argentina for $2.2 million and a developed area in Brazil for BRL190 million, showcasing strong gains from previous investments [13][14] Market Data and Key Metrics Changes - The company received dividends totaling approximately $53 million, with Brasilagro contributing around $10 million and IRSA providing $43 million, reflecting a healthy return on investments [8] - The occupancy rates for IRSA's shopping malls and offices remain high at 97% and 98% respectively, indicating strong demand in the real estate market [18] Company Strategy and Development Direction - The company is optimistic about the agricultural sector due to favorable government policies aimed at deregulation and support for farmers, which may enhance operational efficiency and profitability [30][32] - The service company FyO has become the largest broker in Argentina for agricultural inputs and services, expanding its operations into Brazil, indicating a strategic focus on growth in commercial services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the upcoming year, citing improved weather conditions and higher production expectations in beef cattle, which are expected to drive operational performance [40] - The management highlighted the potential benefits from government measures aimed at reducing export taxes and increasing liquidity in the agricultural sector, which could lead to better financial outcomes for the company [32][33] Other Important Information - The company announced a new share buyback program for ARS6.5 billion, with a maximum purchase price of $12 per ADR, indicating a commitment to returning value to shareholders [26] - The company has maintained a dividend yield of 7%, reflecting a consistent approach to shareholder returns over the past three years [25] Q&A Session Summary Question: Opportunities from deregulation in the agricultural sector - Management discussed the potential benefits of government support for the agricultural sector, including reduced export taxes and increased liquidity in land markets, which could enhance profitability for farmers and the company [30][32] Question: Optimal allocation between buybacks and dividends - Management indicated a preference for cash payments in the form of dividends over buybacks, while also acknowledging the limitations imposed by regulatory restrictions on share repurchases [34][35] Question: Impact of drought in northern Brazil - Management noted that the drought has caused delays in planting but does not expect significant material impacts on overall results, with positive expectations for the agricultural operations in Brazil [38]

Core Insights - Cresud S.A.C.I.F. y A. reported a net loss of ARS 72,374 million for Q1 FY 2025, a 129.7% decrease compared to the same period in 2024, primarily due to losses from changes in the fair value of IRSA investment properties [2][3] - The adjusted EBITDA for the period was ARS 73,977 million, reflecting a 68.0% increase year-over-year, with agribusiness adjusted EBITDA at ARS 27,919 million and urban adjusted EBITDA at ARS 47,290 million [3] Financial Performance - Agricultural Business Revenue increased to ARS 136,955 million from ARS 113,392 million year-over-year [4] - Agricultural Business Gross Profit decreased to ARS 8,671 million from ARS 12,373 million [4] - Urban Properties Revenues decreased to ARS 72,495 million from ARS 78,185 million [4] - Urban Properties Gross Profit decreased to ARS 57,846 million from ARS 64,768 million [4] - Consolidated Gross Profit decreased to ARS 65,999 million from ARS 76,809 million [4] - The profit for the period was ARS (72,374) million compared to ARS 244,016 million in the previous year [4] - Basic and diluted EPS were both ARS (66.54) [4] Balance Sheet Highlights - Total Assets decreased to ARS 3,699,441 million from ARS 3,894,432 million [4] - Current Assets increased to ARS 804,851 million from ARS 792,094 million [4] - Non-Current Assets decreased to ARS 2,894,590 million from ARS 3,102,338 million [4] - Total Liabilities decreased to ARS 2,039,477 million from ARS 2,140,805 million [4] - Shareholders' Equity decreased to ARS 1,659,964 million from ARS 1,753,627 million [4] Market Capitalization - As of September 30, 2024, Cresud's market capitalization was approximately USD 512.7 million, based on 59,863,914 ADS priced at USD 8.64 each [5]

Financial Performance - Total revenues for the year ended June 30, 2024, amounted to ARS 655,037 million, with the agricultural business contributing ARS 384,487 million and urban properties contributing ARS 270,550 million [335]. - Gross profit for the total segments was ARS 294,983 million, with a gross profit margin of approximately 45% [336]. - The company reported a profit from operations of ARS (136,236) million, indicating a challenging operational environment [336]. - The company reported a profit of ARS 67,856 million for the period, an increase of 48,175 million or 273.5% compared to a loss of ARS 162,123 million in the previous year [346]. - The company’s net profit for FY 2024 was ARS 93,980 million, down from ARS 290,458 million in FY 2023, primarily due to losses in the Urban Properties and Investment business [378]. Revenue Recognition - Revenue from agricultural activities primarily comes from sales of agricultural produce, with revenue recognized upon transfer of ownership risks and benefits [315]. - Revenue from the sale of grains is recognized based on the price determined for each client, considering foreign exchange rates at the delivery date [315]. - Rental income from shopping malls is recognized on a straight-line basis over the lease term, with contingent rents ranging from 2% to 12% of lessees' gross sales [317]. - The company recognizes revenue from hotel operations when services are provided, including room services and gastronomy [320]. - Revenue from the sale of real estate properties is recognized only when possession is transferred to the buyer, typically upon unconditional exchange of contracts [320]. Economic Environment - Argentine GDP decreased by 1.7% year-on-year in Q2 2024, an improvement from a 4.9% decrease in Q2 2023 [322]. - Inflation rates in Argentina reached 271.5% (CPI) and 284.4% (IPIM) for the fiscal year 2024, significantly higher than 115.6% and 112.8% in 2023 [323]. - The average exchange rate for USD was ARS 910.50 as of June 30, 2024, compared to ARS 256.50 in 2023, indicating a depreciation of the Peso by 255.0% [322]. - The unemployment rate in Argentina rose to 7.6% as of June 30, 2024, up from 6.2% in the previous year [321]. Agricultural Business Performance - Total revenues for the agricultural business reached ARS 384,487 million, an increase from ARS 323,676 million in the previous year, reflecting a growth of approximately 19% [338]. - Gross profit for the agricultural business was ARS 73,324 million, compared to ARS 49,272 million in the prior year, indicating a significant increase of around 49% [339]. - The agricultural business segment showed a revenue increase compared to the previous year, with revenues of ARS 378,132 million for the year ended June 30, 2023 [335]. - Agricultural Business revenues totaled ARS 258,632 million from Argentina and ARS 257,240 million from other countries, primarily Brazil with ARS 237,601 million [341]. Urban Properties and Investments - Urban properties and investments generated total revenues of ARS 270,550 million, with shopping malls contributing ARS 179,650 million and offices ARS 16,243 million [342]. - The gross profit for urban properties and investments was ARS 221,659 million, with a net loss from fair value adjustments of investment properties amounting to ARS 341,584 million [342]. - The company reported a segment profit of ARS 120,545 million for urban properties, despite a loss of ARS 56,829 million from offices [342]. - The net loss from fair value adjustments in the previous fiscal year was ARS 190,751 million, reflecting market challenges [343]. Costs and Expenses - General and administrative expenses were ARS 85,131 million, reflecting the company's cost management efforts [336]. - Selling expenses were reported at ARS 43,768 million, which is an increase from ARS 34,723 million, indicating rising costs in this area [339]. - General and administrative expenses increased to ARS 33,678 million from ARS 31,550 million, a rise of 2,128 million or 6.75% [346]. - The overall cost of goods sold was ARS 311,163 million, which represents an increase of 10,906 million or 3.6% from ARS 300,257 million in 2023 [347]. Debt and Financing - The company expects to incur total borrowings of ARS 822,535 million as of June 30, 2024, with ARS 346,944 million due within one year [404]. - Total debt as of June 30, 2024, was ARS 822,535 million, with non-current liabilities at ARS 475,591 million and current liabilities at ARS 346,944 million [417]. - The total borrowings decreased from ARS 973,601 million in June 2023 to ARS 822,535 million in June 2024, reflecting a reduction of approximately 15.5% [417]. - The company plans to continue refinancing short-term liabilities and working capital through various note issuances [421]. Legal and Regulatory Matters - The company is involved in a legal proceeding with Exagrind S.A. regarding damages from a fire, with a potential claim amounting to ARS 52,893,850 [492]. - Cresud has initiated judicial actions against the Province of Salta regarding fees for corn, soybeans, and sorghum campaigns, with estimated contingencies amounting to ARS 284.5 million at year-end [493]. - The company is subject to Argentine law regarding dividend distribution, requiring approval from shareholders at the annual meeting [509]. Future Outlook - The company anticipates continued growth in revenues and profitability driven by market expansion and new product developments in the agricultural sector [338]. - The company plans to focus on market expansion and new product development as part of its future strategy [346]. - The company is considering strategic acquisitions to bolster its market position, with a budget of USD 100 million allocated for potential deals [456].

Core Insights - CRESUD S.A.C.I.F. y A. reported a net gain of ARS 104,129 million for fiscal year 2024, a significant decrease from ARS 279,709 million in 2023 [2][3] - The company's adjusted EBITDA reached ARS 256,396 million, with contributions of ARS 80,066 million from the agricultural business and ARS 176,330 million from urban properties and investments, marking a 23.5% increase compared to fiscal year 2023 [2] - The agricultural sector faced challenges with a 7% decrease in grain production, totaling 707,000 tons due to adverse weather conditions [2] - Livestock activity showed strong performance with high meat production levels and improved prices in Argentina [2] - CRESUD sold three farm fractions for USD 75 million, generating a profit of approximately USD 48 million [2] - The company distributed cash dividends totaling ARS 52,000 million and treasury shares amounting to approximately 1% of the stock capital [2] Financial Performance - Current assets decreased to ARS 706,400 million from ARS 798,558 million year-over-year [2] - Total assets fell to ARS 3,473,111 million from ARS 3,972,964 million [2] - Current liabilities decreased to ARS 657,605 million from ARS 741,090 million [2] - Shareholders' equity declined to ARS 1,563,910 million from ARS 1,783,828 million [2] - Agricultural business revenue increased to ARS 384,487 million from ARS 378,132 million, with gross profit rising to ARS 73,324 million from ARS 49,272 million [3] - Urban properties revenues slightly increased to ARS 270,550 million from ARS 268,627 million, with gross profit rising to ARS 221,659 million from ARS 219,262 million [3] - The consolidated result for the period was ARS 104,729 million, down from ARS 279,709 million in the previous year [3] - Basic EPS decreased to 142.77 from 260.59, and diluted EPS decreased to 120.52 from 229.01 [3]

Financial Performance - Revenues increased by 11.2% YoY, reaching ARS 74,677 million compared to ARS 67,144 million in the same period of 2023[7] - Gross profit rose by 17.5% YoY, amounting to ARS 28,956 million, up from ARS 24,637 million[7] - EBITDA increased by 33.4% YoY, reaching ARS 20,591 million compared to ARS 15,432 million in the previous year[7] - Adjusted EBITDA for the period was ARS 164,332 million, a 61.4% increase from ARS 101,820 million in 2023[21] - Revenues for the nine months ended March 31, 2024, increased to ARS 450,813 million, up from ARS 428,532 million in the same period last year, representing a growth of 5.9%[58] - Gross profit for the nine months was ARS 206,006 million, compared to ARS 169,854 million in the previous year, reflecting a 21.3% increase[58] - Financial results, net for the nine months were ARS 93,571 million, an increase from ARS 63,772 million in the previous year[58] - The company reported a profit per share of ARS 37.73 for the nine months, down from ARS 135.07 in the previous year[58] Losses and Challenges - The company reported a net loss of ARS 25,646 million for the period, compared to a profit of ARS 140,918 million in the previous year[21] - The company reported a loss from operations of ARS 233,224 million for the nine months, compared to a loss of ARS 70,125 million in the same period last year[58] - The total comprehensive loss for the period was ARS 10,441 million, compared to a comprehensive income of ARS 146,480 million in the previous year[58] - The urban properties segment recorded a segment loss of ARS 240,223 million, influenced by significant fair value adjustments[152] - The net unrealized loss from fair value adjustment of investment property was ARS 399,278 million for the period, significantly higher than ARS 172,822 million in the previous year[183] Asset and Equity Changes - As of March 31, 2024, total assets decreased to ARS 2,985,924 million from ARS 3,350,835 million as of June 30, 2023, representing a decline of approximately 10.9%[54] - Non-current assets decreased from ARS 2,677,323 million to ARS 2,304,638 million, a reduction of about 13.9%[54] - Shareholders' equity fell to ARS 580,270 million from ARS 651,857 million, indicating a decrease of approximately 10.9%[54] - The company’s total shareholders' equity as of March 31, 2024, was ARS 1,334,483 million, compared to ARS 1,504,497 million as of June 30, 2023[62] - The fair value of the Group's investment properties decreased to $842.5 million as of March 31, 2024, down from $1,282.9 million on June 30, 2023, representing a decline of 34.3%[179] Cash Flow and Operating Activities - Net cash generated by operating activities was ARS 60,696 million, significantly higher than ARS 25,141 million in the previous year[16] - The balance of cash and cash equivalents at the end of the period was ARS 103,653 million, down from ARS 118,723 million in the previous year[81] - The company generated ARS 95,354 million from investing activities, compared to ARS 63,731 million in the prior year[81] - The company repurchased treasury shares amounting to ARS 8,776 million, a decrease from ARS 21,077 million in the previous year[81] Agricultural and Urban Property Performance - For the period ended March 31, 2024, total revenues from the agricultural business were ARS 238,561 million, while urban properties and investment business generated ARS 177,236 million, totaling ARS 415,797 million[142] - The gross profit for the agricultural business was ARS 62,481 million, and for urban properties, it was ARS 145,998 million, leading to a total gross profit of ARS 208,479 million[142] - The agricultural segment reported a segment profit of ARS 38,347 million, with a notable gain from the disposal of farmlands amounting to ARS 6,254 million[150] - The urban property and investment segment is performing well, with good results in rental segments despite a drop in consumption in shopping centers[24] Economic Environment and External Factors - As of March 31, 2024, the Group experienced a 1.6% decline in economic activity in Argentina, continuing a trend from 2023[88] - Accumulated inflation from April 1, 2023, to March 31, 2024, reached 288%, significantly impacting financial results[88] - The Argentine peso depreciated from ARS 209.1 to ARS 855 per dollar during the same period, reflecting a substantial exchange rate fluctuation[88] - The new Argentine government initiated legal and regulatory reforms, impacting the economic environment in which the Group operates[90] Investments and Transactions - Cresud sold a fraction of its "Los Pozos" farm for USD 2.3 million, with USD 1.4 million remaining to be received[109] - The sale of 500 hectares from the "El Tigre" farm was completed for USD 3.8 million, with USD 0.9 million still outstanding[116] - BrasilAgro sold a portion of the "Chaparral" farm for BRL 364.5 million, with the sale's result to be recorded in the fourth quarter[117] - IRSA sold the "Maple Building" for USD 6.75 million, with various payment structures including cash and service provisions[118] - The transaction price for a project was set at USD 16.4 million, which includes the delivery of 125 single-family lots and 40% of the buildable square meters of multifamily lots[127] Shareholder and Capital Changes - The company reported a total of 736,354,245 common shares with a nominal value of ARS 10 each after the recent capital stock increase[37] - The company has modified the terms and conditions of outstanding warrants for common shares following the recent capital increase[37] - The company’s control group holds a voting stock interest of 38.96%[46] - In November and December 2023, IRSA sold 1,583,560 common shares of GCDI for a total of ARS 25.5 million, representing 0.17% of the capital share[130] - During Q1 2024, IRSA sold an additional 5,033,873 common shares of GCDI for ARS 165 million, equivalent to 0.55% of the capital share[130]