Cresud(CRESY) - 2026 Q2 - Quarterly Report

Financial Position - Total assets increased to ARS 6,319,229 million as of December 31, 2025, up from ARS 5,816,213 million as of June 30, 2025, representing a growth of 8.6%[14] - Non-current assets rose to ARS 4,732,610 million, compared to ARS 4,391,316 million, reflecting an increase of 7.8%[14] - Shareholders' equity totaled ARS 2,606,935 million, up from ARS 2,530,228 million, indicating a rise of 3.0%[14] - Total liabilities increased to ARS 3,712,294 million from ARS 3,285,985 million, which is an increase of 12.9%[14] - The Group's net reportable assets stood at ARS 2,606,935 million, reflecting a strong financial position despite the liabilities of ARS 3,712,294 million[79] Cash and Cash Equivalents - Cash and cash equivalents significantly increased to ARS 434,767 million from ARS 286,711 million, marking a growth of 51.7%[14] - The company had cash and cash equivalents at the end of the period amounting to ARS 434,767 million, up from ARS 128,823 million at the end of the previous period[36] - Cash and cash equivalents, excluding bank overdrafts, totaled $332,643 million as of December 31, 2025, compared to $220,790 million on June 30, 2025, representing a significant increase of about 50.5%[120] Revenue and Profitability - Revenues for the six months ended December 31, 2025, reached ARS 651,055 million, a 19.1% increase from ARS 546,608 million in the same period of 2024[17] - Gross profit for the same period was ARS 242,435 million, up 20.1% from ARS 201,901 million year-over-year[17] - Profit for the period attributable to equity holders of the parent was ARS 74,448 million, compared to a loss of ARS 25,103 million in the previous year[21] - Total comprehensive income for the period was ARS 226,956 million, a significant recovery from a loss of ARS 140,844 million in the prior year[21] - The company reported a net gain from fair value adjustments of investment properties amounting to ARS 184,494 million, a recovery from a loss of ARS 299,744 million in the previous year[17] Expenses - Selling expenses increased to ARS 55,183 million from ARS 47,986 million, reflecting a 25.8% rise year-over-year[17] - Finance costs rose to ARS 77,416 million, up from ARS 48,817 million, indicating a 58.5% increase[17] - General and administrative expenses totaled ARS 63,100 million, while selling expenses were ARS 55,183 million, indicating a focus on managing operational costs[78] Investments and Assets - Investment properties increased to ARS 2,889,523 million from ARS 2,747,757 million, showing a growth of 5.2%[14] - Biological assets increased to ARS 239,416 million, up from ARS 170,567 million, representing an increase of 40.4%[14] - Trading properties increased to ARS 220,162 million from ARS 183,344 million, reflecting a growth of 20.0%[14] - The Group's investments in associates and joint ventures increased to ARS 221,408 million as of December 31, 2025, from ARS 214,160 million at the end of June 2025[90] Financial Adjustments and Corrections - The company identified an error in the inflation adjustment of share premiums, leading to a retroactive restatement of financial statements for the years ended June 30, 2024, 2023, and 2022[45] - The inflation adjustment for the period was corrected to ARS 10,580 million, reflecting a significant change from the previously reported loss of ARS 45,277 million[47] Dividends and Shareholder Returns - The company reported dividends paid of ARS 87,197 million, compared to ARS 76,377 million in the previous period[36] - CRESUD allocated ARS 5,038 million to the legal reserve and distributed a total dividend of ARS 93,782 million, with ARS 65,080 million as cash and ARS 28,702 million as in-kind dividends[181] - IRSA distributed a cash dividend of ARS 173,788 million to shareholders[187] Market and Economic Conditions - The inflation rate in Argentina was reported at 14% for the six months ending December 31, 2025, and 32% for the twelve months ending the same date[57] Other Financial Metrics - The company reported a loss for the period of ARS 28,851 million, which is an improvement from the previously reported loss of ARS 84,708 million[47] - The total comprehensive loss for the period was ARS 140,844 million, which includes a loss of ARS 25,103 million and other comprehensive loss of ARS 40,280 million[30] - The company recorded an impairment reversal of ARS 12,013 on trading properties due to improved macroeconomic conditions, with a net realizable value of ARS 204,617[104]