IRSA(US:IRS)2025-10-24 15:36Economic Performance - Argentine GDP increased by 6.3% interannually during the second quarter of 2025, compared to a decrease of 1.7% in the same period of 2024[780]. - Inflation rates for the fiscal year ended June 30, 2025, were 39.4% for the Consumer Price Index (CPI) and 21.2% for the Wholesale Price Index (IPIM)[785]. - The unemployment rate as of June 30, 2025, was 7.6%, unchanged from the previous year[782]. Sales and Revenue - Shopping mall sales in June 2025 reached ARS 592,710 million, representing a 27.8% increase compared to June 2024[782]. - Accumulated sales for the first six months of 2025 showed a 205.8% increase in current terms but a 1.7% decrease in real terms compared to the same period in 2024[782]. - Total revenues for the fiscal year ended June 30, 2025, amounted to ARS 374,662 million, with a gross profit of ARS 287,297 million[809]. - Revenues from Argentina accounted for ARS 374,042 million, while revenues from other countries totaled ARS 620 million, primarily from Uruguay and the USA[814]. - Total revenues for the period ended June 30, 2024, reached ARS 377,202 million, a slight increase from ARS 374,521 million in the same period last year, representing a growth of 0.5%[815]. Segment Performance - The "Shopping Malls" segment generated revenues of ARS 270,531 million, while the "Offices" segment contributed ARS 20,065 million[813]. - The "Sales and Developments" segment reported a loss of ARS 5,168 million, indicating challenges in this area[813]. - Revenues from the Shopping Malls segment increased by 8.0% from ARS 250,468 million in FY 2024 to ARS 270,531 million in FY 2025, driven by a rise in base rental revenues by ARS 44,813 million[827]. - Revenues from the Offices segment decreased by 11.4% from ARS 22,646 million in FY 2024 to ARS 20,065 million in FY 2025, primarily due to a 12.1% drop in lease revenue[828]. - Revenues from the Hotels segment decreased by 24.7% from ARS 85,840 million in FY 2024 to ARS 64,596 million in FY 2025, mainly due to a decline in international tourism[830]. Financial Condition - The company’s financial condition is significantly affected by macroeconomic factors, particularly in Argentina, where most of its assets are located[778]. - A significant portion of the company’s financial debt is denominated in U.S. dollars, making it vulnerable to currency fluctuations and exchange rate restrictions[793]. - Total reportable assets as of June 30, 2025, were ARS 2,741,621 million, with net reportable assets of ARS 1,671,967 million[809]. - The company’s total outstanding debt as of June 30, 2025 was ARS 647,128 million, with ARS 137,336 million due within one year[959]. Profitability and Losses - The company reported a segment profit of ARS 202,214 million for the fiscal year 2025, with a significant share of profit from associates and joint ventures amounting to ARS 25,332 million[813]. - The company experienced a net loss from fair value adjustments of investment properties amounting to ARS 2,500 million for the fiscal year 2025[809]. - The profit for the year improved significantly from a loss of ARS 47,127 million in FY 2024 to a profit of ARS 196,118 million in FY 2025[880]. - The share of profit from associates and joint ventures decreased to ARS 25,332 million from ARS 47,068 million, a decline of 46.2%[822]. Expenses - General and administrative expenses for the fiscal year 2025 were ARS 69,135 million, reflecting the company's operational costs[809]. - General and administrative expenses decreased to ARS 71,355 million from ARS 100,686 million, a reduction of 29.1%[819]. - Selling expenses in the Sales and Developments segment decreased by 30.9%, from ARS 4,512 million in FY 2024 to ARS 3,116 million in FY 2025, with expenses as a percentage of revenues dropping from 35.0% to 24.4%[856]. Cash Flow and Financing - As of June 30, 2025, the company had cash and cash equivalents totaling ARS 176,820 million[943]. - For the fiscal year ended June 30, 2025, financing activities generated net cash inflows of ARS 35,515 million, primarily from borrowings and issuance of non-convertible notes totaling ARS 373,323 million[952]. - In the fiscal year ended June 30, 2024, financing activities resulted in net cash outflows of ARS 266,206 million, mainly due to dividend payments of ARS 212,502 million and loan repayments of ARS 142,298 million[954]. Capital Expenditures - Capital expenditures for the fiscal year ended June 30, 2025 amounted to ARS 82,733 million, with ARS 51,185 million allocated for improvements in rental properties[956]. - In the fiscal year ended June 30, 2024, capital expenditures totaled ARS 23,577 million, including ARS 13,929 million for rental property improvements[957].