Cresud(CRESY) - 2025 Q4 - Annual Report

Financial Position - Total assets as of June 30, 2025, amounted to ARS 5,088,822 million, a decrease of 8.1% from ARS 5,539,113 million in 2023[14] - Shareholders' equity increased to ARS 2,213,792 million as of June 30, 2025, compared to ARS 2,486,830 million in 2023, reflecting a decline of 10.9%[14] - Non-current liabilities decreased to ARS 1,873,251 million in 2025 from ARS 2,018,874 million in 2023, a reduction of 7.2%[14] - Current assets rose to ARS 1,246,695 million in 2025, up from ARS 1,113,350 million in 2023, representing an increase of 12.0%[14] - Total liabilities stood at ARS 2,875,030 million in 2025, down from ARS 3,052,283 million in 2023, a decrease of 5.8%[14] Revenue and Profitability - The company reported a net income of ARS 970,586 million for the fiscal year ended June 30, 2025, compared to ARS 1,077,368 million in 2023, a decline of 9.9%[18] - Revenues for the year ended June 30, 2024, were ARS 914,157 million, a decrease of 4.7% compared to ARS 959,359 million in 2023[19] - Gross profit for the year was ARS 368,054 million, down 9.5% from ARS 406,483 million in the previous year[19] - Profit for the year attributable to equity holders of the parent was ARS 96,148 million, a decrease of 29.1% compared to ARS 135,726 million in 2023[19] - The profit for the year ended June 30, 2024, is ARS 163,826 million, compared to ARS 135,726 million for the previous year, reflecting a growth of approximately 20.7%[32] Investment Properties - Investment properties were valued at ARS 2,404,115 million as of June 30, 2025, a slight decrease from ARS 3,037,044 million in 2023, down by 20.9%[14] - The company reported a net gain from fair value adjustment of investment properties of ARS 19,075 million, a recovery from a loss of ARS 486,121 million in 2023[19] - The Group's investment properties primarily consist of shopping malls and offices, with a focus on long-term rental income and capital appreciation[123] - Investment properties are initially measured at cost, including purchase price and directly attributable expenditures, and are subsequently carried at fair value[132] - Changes in fair values of investment properties are recognized in the Consolidated Statement of Comprehensive Income under "Net gain from fair value adjustment of investment properties"[137] Cash Flow and Financing Activities - Cash and cash equivalents increased to ARS 250,855 million in 2025, compared to ARS 201,685 million in 2023, marking a growth of 24.3%[14] - The company reported a net cash used in financing activities of ARS (471,725) million, an increase from ARS (470,037) million, showing a rise of 0.4%[72] - The net cash generated from operating activities for the year ended June 30, 2023, was ARS 151,319 million, compared to ARS 115,446 million in the previous year, representing a 31% increase[46] Shareholder Activities - The company repurchased treasury shares amounting to ARS 1,784 million during the fiscal year ended June 30, 2024[34] - Dividends distributed for the year totaled ARS 375,036 million, which includes ARS 172,312 million for the previous year[34] - Dividends paid during the year were ARS 87,431 million, a decrease from ARS 172,303 million in the previous year[46] Economic Environment - The Argentine economy showed a year-on-year growth of 6.6% in the Monthly Economic Activity Estimator (EMAE) during the second half of 2024[61] - Accumulated inflation in Argentina reached 39.4% from July 1, 2024, to June 30, 2025, with a projected annual inflation of 27.3% for December 2025[61] - The Argentine peso depreciated from ARS 912 per dollar to ARS 1,205 per dollar over the fiscal year[61] Accounting and Regulatory Changes - The company has adopted new accounting standards, including amendments to IAS 1 and IFRS 16, which will be mandatory by June 30, 2025[93][94] - The cumulative inflation rate in Argentina over the last three years exceeded 1,017%, necessitating the application of IAS 29 for financial reporting[78][82] - The adjustments for inflation have been calculated based on the indexes reported by the FACPCE, reflecting the economic conditions in Argentina[81] Ownership and Subsidiaries - The Group's ownership interest in BrasilAgro decreased from 37.88% in June 2023 to 35.22% in June 2025[102] - The Group's stake in Futuros y Opciones.Com S.A. increased from 49.55% in June 2023 to 51.21% in June 2025[102] - The Group maintains a 100% ownership interest in Helmir S.A. and several agricultural subsidiaries in Brazil[102] Biological Assets - The company’s biological assets were valued at ARS 149,235 million in 2025, an increase from ARS 145,031 million in 2023, reflecting a growth of 2.0%[14] - Biological assets include unharvested crops and livestock, with the Group maintaining a diverse agricultural portfolio[179] - Biological assets are measured at fair value less costs to sell upon initial recognition and at each reporting date, unless fair value cannot be reliably measured[184]