Notes to the Unaudited Condensed Interim Consolidated Financial
Statements
(Amounts
in millions, except otherwise indicated)
1.
The
Group’s business and general information
Cresud
was founded in 1936 as a subsidiary of Credit Foncier, a Belgian
company primarily engaged in providing rural and urban loans in
Argentina and administering real estate holdings foreclosed by
Credit Foncier. Credit Foncier was liquidated in 1959, and as part
of such liquidation, the shares of Cresud were distributed to
Credit Foncier’s shareholders. From the 1960s through the end
of the 1970s, the business of Cresud shifted exclusively to
agricultural activities.
In
2002, Cresud acquired a 19.85% interest in IRSA, a real estate
company related to certain shareholders of Cresud. In 2009, Cresud
increased its ownership percentage in IRSA to 55.64% and IRSA
became Cresud’s direct principal subsidiary.
Cresud
and its subsidiaries are collectively referred to hereinafter as
the Group.
Main
shareholders of the Company are jointly Inversiones Financieras del
Sur S.A. and Agroinvestment S.A. Both entities are companies
incorporated in Uruguay and belong to the same controlling group
and ultimate beneficiary.
The
Board of Directors has approved these Financial Statements for
issuance on November 19, 2020.
As of
December 31, 2020, the Group operates in two major business lines:
(i) agricultural business and (ii) urban property and investment
business, which, with the acquisition of IDBD, was divided into two
centers of operations: (a) Argentina Operations Center and (b)
Israel Operations Center. With the loss of control of the Israel
Operations Center and its deconsolidation, as of October 1, 2020,
the Group manages its operations through a single operations
center:
(i)
See Note 4 to the
Annual Financial Statements for more information about the
Operations Center in Israel.
Operations Center in Israel
As
stated in Note 1. to the consolidated financial statements as of
June 30, 2020, on September 25, 2020 the Court decreed the
insolvency and liquidation of IDBD and appointed a trustee for its
shares along with a custodian over DIC and Clal shares. After this
decision, the Board of Directors of IDBD was removed from its
functions, therefore, the Group lost control as of that date. For
comparability purposes and as required by IFRS 5, the results of
the Israel Operations Center have been reclassified to discontinued
operations for all periods presented.
Véase nuestro informe de fecha 09/118
PRICE WATERHOUSE & Co. S
C.P.C.E.C.A.B.A. T° 1 F
7
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
2.
Summary
of significant accounting policies
2.1.
Basis
of preparation
These
financial statements have been prepared in accordance with IAS 34
“Interim financial reporting” and should therefore be
read in conjunction with the Group's annual Consolidated Financial
Statements as of June 30, 2020 prepared in accordance with IFRS.
Also, these financial statements include additional information
required by Law No. 19,550 and / or regulations of the CNV. Such
information is included in the notes to these financial statements,
as accepted by IFRS.
These
financial statements for the interim periods of six months ended
December 31, 2020 and 2019 have not been audited. Management
considers that they include all the necessary adjustments to fairly
present the results of each period. Intermediate period results do
not necessarily reflect the proportion of the Group's results for
the entire fiscal years.
IAS 29
"Financial Reporting in Hyperinflationary Economies" requires that
the financial statements of an entity whose functional currency is
one of a hyperinflationary economy be expressed in terms of the
current unit of measurement at the closing date of the reporting
period, regardless of whether they are based on the historical cost
method or the current cost method. To do so, in general terms, the
inflation produced from the date of acquisition or from the
revaluation date, as applicable, must be calculated by non-monetary
items. This requirement also includes the comparative information
of the financial statements.
In
order to conclude on whether an economy is categorized as highly
inflationary in the terms of IAS 29, the standard details a series
of factors to be considered, including the existence of an
accumulated inflation rate in three years that approximates or
exceed 100%. Accumulated inflation in Argentina in three years is
over 100%. For that reason, in accordance with IAS 29, Argentina
must be considered a country with a highly inflationary economy
starting July 1, 2018.
In
relation to the inflation index to be used and in accordance with
FACPCE Resolution No. 539/18, it is determined based on the
Wholesale Price Index (IPIM) until 2016, considering the average
variation of the Consumer Price Index (CPI) of the Autonomous City
of Buenos Aires for the months of November and December 2015,
because during those two months there were no national IPIM
measurements. Then, from January 2017, the National Consumer Price
Index (National CPI) is considered. The table below presents the
index for the period ended December 31, 2020, according to official
statistics (INDEC) and following the guidelines described in
Resolution 539/18.
|
|
As of December 31, 2020 (accumulated three months)
|
As of December 31, 2020 (accumulated three months)
|
As of December 31, 2020 (accumulated six months)
|
|
Price
variation
|
8%
|
12%
|
20%
|
As a
consequence of the aforementioned, these financial statements as of
December 31, 2020 were restated in accordance with IAS
29.
2.2
Accounting
policies
The
accounting policies applied in the presentation of these Financial
Statements are consistent with those applied in the preparation of
the Annual Financial Statements, as described in Note 2 to those
Financial Statements.
As
described in Note 2.2 to the annual financial statements, the Group
has adopted IFRS 16: “Leases” and Amendment to IAS 28
“Investment in associates and joint ventures” in the
current year, applying the cumulative effect approach, therefore,
accumulated impact was recognized in retained earnings as of July
1, 2019. Comparative figures were not restated.
2.3
Comparability
of information
Balance
items as of June 30, 2019 and December 31, 2019 presented in these
Financial Statements for comparative purposes arise from the
financial statements as of and for such period, restated in
accordance with IAS 29 (See Note 2.1).Certain items from prior
periods have been reclassified for consistency purposes regarding
the loss of control in IDBD. See Notes 1 and 6 to these Financial
Statements.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
8
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
2.4
Use
of estimates
The
preparation of Financial Statements at a certain date requires
Management to make estimations and evaluations affecting the amount
of assets and liabilities recorded and contingent assets and
liabilities disclosed at such date, as well as income and expenses
recorded during the period. Actual results might differ from the
estimates and evaluations made at the date of preparation of these
financial statements. In the preparation of these financial
statements, the significant judgments made by Management in
applying the Group’s accounting policies and the main sources
of uncertainty were the same as the ones applied by the Group in
the preparation of the Annual Financial Statements described in
Note 3 to those Consolidated Financial Statements, except for those
mentioned in Note 34.
3.
Seasonal
effects on operations
Agricultural business
Some of
the Group’s businesses are more affected by seasonal effects
than others. The operations of the Group’s agricultural
business are subject to seasonal effects. The harvests and sale of
grains in Argentina generally take place each year since March in
the case of corn and soybean, since October in the case of wheat,
and since December in the case of sunflower. In Brazil, the harvest
and sale of soybean take place since February, and in the case of
corn weather conditions make it possible to have two seasons,
therefore the harvest take place between March and July. In
Bolivia, weather conditions also make it possible to have two
soybean, corn and sorghum seasons and, therefore, these crops are
harvested in July and May, whereas wheat is harvested in August and
September, respectively. In the case of sugarcane, harvest and sale
take place between April and November of each year. Other segments
of the agricultural business, such as beef cattle production tend
to be more stable. However, beef cattle production is generally
larger during the second quarter, when conditions are more
favorable. As a result, there may be material fluctuations in the
agricultural business results across quarters.
Urban properties and investments business
The
operations of the Group’s shopping malls are subject to
seasonal effects, which affect the level of sales recorded by
lessees. During summertime in Argentina (January and February), the
lessees of shopping malls experience the lowest sales levels in
comparison with the winter holidays (July) and Christmas and
year-end holidays celebrated in December, when they tend to record
peaks of sales. Apparel stores generally change their collections
during the spring and the fall, which impacts positively on
shopping malls sales. Sale discounts at the end of each season also
affect the business. As a consequence, for shopping mall
operations, a higher level of business activity is expected in the
period ranging between July and December, compared to the period
between January and June.
4.
Acquisitions
and disposals
Significant
acquisitions and disposals for the six-month period ended December
31, 2020 are detailed below. Significant acquisitions and disposals
for the fiscal year ended June 30, 2019, are detailed in Note 4 to
the Annual Financial Statements.
Agricultural business
Sale of Bananal Farm
BrasilAgro
concluded the sale of 2,160 hectares (1,714 useful hectares) of
Bananal Farm (Magalhães municipality - BA). The farm was
included in the Group of assets held for sale due to a disagreement
involving the tenant at the time of sale. The previous conditions
recognized in the purchase agreement were fully met on July 31,
2020 after receipt of R$ 5.5 (equivalent to Ps. 95). The face value
of the sale is R$ 28 (equivalent to Ps. 441), of which the Company
has already received R$ 7.5 (equivalent to Ps. 126). For this
operation, the company will not recognize results since the asset
was recorded at its fair value.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
9
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Urban properties and investments business
Sale of floors from Boston Tower
On July
15, 2020, IRSA CP entered into a preliminary sale agreement (with
delivery of possession) with respect to a medium-height floor from
Boston tower located at Della Paolera 265, Catalinas district, City
of Buenos Aires, covering a total area of approximately 1,063 sq.
meters and 5 parking lots located in the building. The price of the
transaction was Ps. 477.7 (US$ 6.7), which has been paid in
full.
On
August 25, 2020, IRSA CP executed a preliminary sale agreement
(with delivery of possession) with respect to 5 floors from Boston
tower located at Della Paolera 265, Catalinas district, City of
Buenos Aires, covering a total area of approximately 6,235 sq.
meters and 25 parking lots located in the building. The price of
the transaction was Ps. 2,562 (US$ 34.7), which has been paid in
full.
On
November 5, 2020, IRSA CP has signed a purchase and sale agreement
with possession of 4 floors of the Boston Tower located at 265
Della Paolera in the Catalinas District in the Autonomous City of
Buenos Aires for a gross rental area of approximately 3,892 square
meters and 15 parking lots located in the building. The price of
the transaction was Ps. 1,812 (US$ 22.9).
On
November 12, 2020, IRSA CP has signed with an unrelated third party
a purchase and sale agreement with possession of 3 floors of the
Boston Tower located at 265 Della Paolera in the Catalinas District
in the Autonomous City of Buenos Aires for a gross rental area of
approximately 3,266 square meters, a commercial space located on
the ground floor of approximately 225 square meters and 15 parking
lots located in the building. The price of the transaction was Ps.
1,521 (US$ 19.1).
Bouchard sale
On July
30, 2020, IRSA CP sold the entire “Bouchard 710”
building, located in the Plaza Roma district of the City of Buenos
Aires. The tower has a gross leasable area of 15,014 sq. meters
divided into 12 floors for office use and 116 parking lots. The
price of the transaction was approximately Ps. 6,300 (US$ 87),
which has been paid in full.
Lipstick Building, New York, United States
On
August 7, 2020, Metropolitan signed an agreement with the owner of
the Ground Lease through which it terminated the relationship,
leaving the administration of the building. For this reason,
Metropolitan stopped recognizing the liabilities associated with
the ground lease, as well as all the assets and liabilities
associated with the building and the administration of the
building; and made an agreement with the owner of the Ground Lease
that states that Metropolitan is completely released from
responsibilities, except for (i) claims for liabilities prior to
June 1, 2020 from people who have performed work or provided
services in the Building or to Metropolitan and (ii) claims from
people who have had an accident on the property dated before August
7, 2020. This situation had an impact on the consolidated Financial
Statements as of June 30, 2020.
Condor Merger Agreement
On July
19, 2019, Condor entered into a merger agreement with Nexponint
Hospitality Trust. In accordance with the contractual terms, each
Condor common share, with a par value of US$ 0.01 per share, was
canceled prior to the merger and became the right to receive a cash
amount equivalent to US$ 11.10 per ordinary share. Additionally, in
accordance with the terms and conditions of the merger agreement,
each Class E convertible share was automatically canceled and
became the right to receive a cash amount equivalent to US$ 10.00
per share.
The
closing of the transaction, which had been scheduled for March 23,
2020, did not occur.
On
October 14, 2020, Condor entered into an agreement with Nexponint
Hospitality Trust and some of its affiliates ("NHT Parties") to
resolve any and all claims between them related to the
aforementioned merger agreement.
According to this
agreement, NHT and its affiliates shall make three payments to
Condor in three installments ending on December 30, 2020 and
totaling US$ 7.0. As of the date of these financial statements, the
total compensation for breach of the contract has been
collected.
As of
the date of presentation of these financial statements, the Company
has 2,245,100 ordinary shares and 325,752 Series E shares of
Condor.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
10
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Loss of control of IDBD
As
described in Note 1. to these financial statements, at the end of
September 2020, the Group has lost control of IDBD, deconsolidating
the related assets and liabilities and reclassifying the operations
from this operations center to discontinued
operations.
The
following table details the net assets disposed:
(*)
included within discontinued operations.
Distribution of dividends in kind
On
October 26, 2020, the Ordinary and Extraordinary
Shareholders’ Meeting of IRSA, approved, a dividend
distribution in kind for the equivalent amount of Ps. 484
(representative of Ps. 0.84 per share) payable in shares of IRSA
CP. IRSA CP’s quoted price per share as of October 23, 2020,
was considered and, it amounted to 320 pesos per share. As a result
1,512,500 shares were distributed. This transaction was accounted
for as a change in equity generating a reduction of the equity
attributable to the controlling shareholders for Ps. 673 restated
for inflation as of the date of these financial statements. As of
the end of the period the groups interest in IRSA CP amounts to
79.92%.
Manibil Sale
On
December 22, 2020, the Company sold 217,332,873 ordinary Class B
shares, nominative not endorsable, with a nominal value of Ps. 1
and entitled to one vote per share owned by the Company,
representing 49% of the stock capital of MANIBIL S.A., a company
dedicated to real estate developments. The price for the sale of
the shares amounts to Ps. 576.9. The operation was completed in
February 2021, for which the Company is no longer a shareholder of
MANIBIL S.A.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
11
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
5.
Financial
risk management and fair value estimates
These
Financial Statements do not include all the information and
disclosures on financial risk management; therefore, they should be
read along with Note 5 to the Annual Financial Statements. There
have been no changes in risk management or risk management policies
applied by the Group since year-end.
Since
June 30, 2020 and up to the date of issuance of these Financial
Statements, there have been no significant changes in business or
economic circumstances affecting the fair value of the Group's
assets or liabilities, (either measured at fair value or amortized
cost), except as mentioned in Note 33. Furthermore, there have been
no transfers between the different hierarchies used to assess the
fair value of the Group’s financial instruments, except as
mentioned in Note 33.
6.
Segment
information
As
explained in Note 6 to the annual Financial Statements, the Group
reports the information by segments from the perspective of
products and services: (i) agricultural business and (ii) urban
properties and investments business. Additionally, this last
segment was geographically divided into two centers of operations
to manage its global interests: Argentina and Israel. However, as
detailed in Note 1, during September 2020 the Group lost control of
IDBD and reclassified the results related to discontinued
operations. As a consequence of the loss of control over IDBD, as
of October 1, 2020, the Group reports its financial and equity
performance under a single operations center. The information by
segment for the period ended December 31, 2019 has been modified
for the purposes of its comparability with the current
period.
Below
is a summary of the Group’s business units and a
reconciliation between the operating income according to segment
information and the operating income of the statement of income and
other comprehensive income of the Group for the periods ended
December 31, 2020 and 2019:
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
12
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Below
is a summarized analysis of the lines of business of the Group for
the year ended December 31, 2020:
|
|
12.31.20
|
||||||||
|
|
|
Urban
Properties and Investment business (II)
|
|
|
|
|
|
||
|
|
|
Operations
Center in Argentina
|
Operations
Center in Israel
|
Subtotal
|
Total
segment information
|
Joint
ventures (i)
|
Adjustments
(ii)
|
Elimination
of inter-segment transactions and non-reportable assets /
liabilities (iii)
|
Total
Statement of Income / Financial Position
|
|
Revenues
|
15,795
|
3,854
|
-
|
3,854
|
19,649
|
(17)
|
1,127
|
(591)
|
20,168
|
|
Costs
|
(13,353)
|
(1,422)
|
-
|
(1,422)
|
(14,775)
|
31
|
(1,237)
|
472
|
(15,509)
|
|
Initial recognition
and changes in the fair value of biological assets and agricultural
products at the point of harvest
|
1,647
|
-
|
-
|
-
|
1,647
|
-
|
-
|
32
|
1,679
|
|
Changes in the net
realizable value of agricultural products after
harvest
|
259
|
-
|
-
|
-
|
259
|
-
|
-
|
-
|
259
|
|
Gross profit
|
4,348
|
2,432
|
-
|
2,432
|
6,780
|
14
|
(110)
|
(87)
|
6,597
|
|
Gain from disposal
of farmlands
|
91
|
-
|
-
|
-
|
91
|
-
|
-
|
-
|
91
|
|
Net gain from fair
value adjustment of investment properties
|
50
|
9,481
|
-
|
9,481
|
9,531
|
(508)
|
-
|
-
|
9,023
|
|
General and
administrative expenses
|
(786)
|
(1,542)
|
-
|
(1,542)
|
(2,328)
|
3
|
-
|
30
|
(2,295)
|
|
Selling
expenses
|
(1,587)
|
(793)
|
-
|
(793)
|
(2,380)
|
7
|
-
|
59
|
(2,314)
|
|
Other operating results, net
|
(1,780)
|
(104)
|
-
|
(104)
|
(1,884)
|
1
|
1
|
1
|
(1,881)
|
|
Profit from operations
|
336
|
9,474
|
-
|
9,474
|
9,810
|
(483)
|
(109)
|
3
|
9,221
|
|
Share profit of
associates and joint ventures
|
(32)
|
(808)
|
-
|
(808)
|
(840)
|
354
|
-
|
(1)
|
(487)
|
|
Segment profit
|
304
|
8,666
|
-
|
8,666
|
8,970
|
(129)
|
(109)
|
2
|
8,734
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
assets
|
46,440
|
184,424
|
-
|
184,424
|
230,864
|
(933)
|
-
|
43,551
|
273,482
|
|
Reportable
liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(181,883)
|
(181,883)
|
|
Net
reportable assets
|
46,440
|
184,424
|
-
|
184,424
|
230,864
|
(933)
|
-
|
(138,332)
|
91,599
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
13
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Below
is a summarized analysis of the lines of business of the Group for
the year ended December 31, 2019:
|
|
12.31.19
|
||||||||
|
|
|
Urban Properties and Investment business (II)
|
|
|
|
|
|
||
|
|
|
Operations Center in Argentina
|
Operations Center in Israel
|
Subtotal
|
Total segment information
|
Joint
ventures (i)
|
Adjustments
(ii)
|
Elimination
of inter-segment transactions and non-reportable assets /
liabilities (iii)
|
Total
Statement of Income / Financial Position
|
|
Revenues
|
17,455
|
8,891
|
-
|
8,891
|
26,346
|
(54)
|
2,097
|
(629)
|
27,760
|
|
Costs
|
(14,759)
|
(1,878)
|
-
|
(1,878)
|
(16,637)
|
31
|
(2,189)
|
374
|
(18,421)
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
1,503
|
-
|
-
|
-
|
1,503
|
-
|
-
|
197
|
1,700
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
574
|
-
|
-
|
-
|
574
|
-
|
-
|
-
|
574
|
|
Gross profit
|
4,773
|
7,013
|
-
|
7,013
|
11,786
|
(23)
|
(92)
|
(58)
|
11,613
|
|
Net gain from fair
value adjustment of investment properties
|
16
|
5,484
|
-
|
5,484
|
5,500
|
(344)
|
-
|
-
|
5,156
|
|
Gain
from disposal of farmlands
|
407
|
-
|
-
|
-
|
407
|
-
|
-
|
-
|
407
|
|
General
and administrative expenses
|
(914)
|
(1,617)
|
-
|
(1,617)
|
(2,531)
|
7
|
-
|
33
|
(2,491)
|
|
Selling
expenses
|
(1,757)
|
(729)
|
-
|
(729)
|
(2,486)
|
5
|
(34)
|
16
|
(2,499)
|
|
Other
operating results, net
|
560
|
(39)
|
-
|
(39)
|
521
|
19
|
27
|
-
|
567
|
|
Profit from operations
|
3,085
|
10,112
|
-
|
10,112
|
13,197
|
(336)
|
(99)
|
(9)
|
12,753
|
|
Share profit / (loss) of associates and
joint ventures
|
211
|
(1,755)
|
-
|
(1,755)
|
(1,544)
|
247
|
-
|
13
|
(1,284)
|
|
Segment profit
|
3,296
|
8,357
|
-
|
8,357
|
11,653
|
(89)
|
(99)
|
4
|
11,469
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
assets
|
43,721
|
139,200
|
509,531
|
648,731
|
692,452
|
(788)
|
-
|
12,133
|
703,797
|
|
Reportable
liabilities
|
-
|
-
|
(449,324)
|
(449,324)
|
(449,324)
|
-
|
-
|
(15,603)
|
(464,927)
|
|
Net reportable assets
|
43,721
|
139,200
|
60,207
|
199,407
|
243,128
|
(788)
|
-
|
(3,470)
|
238,870
|
(i)
Represents the
equity value of joint ventures that were proportionately
consolidated for information by segment purposes.
(ii)
Includes Ps. (110)
and Ps. (95) corresponding to Expenses and FPC as of December 31,
2020 and 2019, respectively.
(iii)
Includes deferred
income tax assets, income tax and MPIT credits, trade and other
receivables, investment in financial assets, cash and cash
equivalents and intangible assets except for rights to receive
future units under barter agreements, net of investments in
associates with negative equity which are included in provisions in
the amount of Ps. 8 as of December 31, 2020.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
14
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
(I)
Agriculture line of business
The
following tables present the reportable segments of the agriculture
line of business:
|
|
12.31.20
|
||||
|
|
Agricultural
production
|
Land
transformation and sales
|
Corporate
|
Others
|
Total
Agricultural business
|
|
Revenues
|
9,866
|
-
|
-
|
5,929
|
15,795
|
|
Costs
|
(8,391)
|
(15)
|
-
|
(4,947)
|
(13,353)
|
|
Initial recognition
and changes in the fair value of biological assets and agricultural
products at the point of harvest
|
1,647
|
-
|
-
|
-
|
1,647
|
|
Changes in the net
realizable value of agricultural products after
harvest
|
259
|
-
|
-
|
-
|
259
|
|
Gross
profit / (loss)
|
3,381
|
(15)
|
-
|
982
|
4,348
|
|
Gain
from disposal of farmlands
|
-
|
91
|
-
|
-
|
91
|
|
Net gain from fair
value adjustment of investment properties
|
-
|
50
|
-
|
-
|
50
|
|
General and
administrative expenses
|
(467)
|
(2)
|
(132)
|
(185)
|
(786)
|
|
Selling
expenses
|
(987)
|
-
|
-
|
(600)
|
(1,587)
|
|
Other operating
results, net
|
(3,179)
|
1,346
|
-
|
53
|
(1,780)
|
|
(Loss)
/ profit from operations
|
(1,252)
|
1,470
|
(132)
|
250
|
336
|
|
Share of loss of
associates and joint ventures
|
(8)
|
-
|
-
|
(24)
|
(32)
|
|
Segment
(loss) / profit
|
(1,260)
|
1,470
|
(132)
|
226
|
304
|
|
|
|
|
|
|
|
|
Investment
properties
|
5,849
|
-
|
-
|
-
|
5,849
|
|
Property, plant and
equipment
|
26,033
|
214
|
-
|
65
|
26,312
|
|
Investments in
associates
|
457
|
-
|
-
|
301
|
758
|
|
Other reportable
assets
|
9,111
|
-
|
-
|
4,410
|
13,521
|
|
Reportable
assets
|
41,450
|
214
|
-
|
4,776
|
46,440
|
|
|
12.31.19
|
||||
|
|
Agricultural
production
|
Land
transformation and sales
|
Corporate
|
Others
|
Total
Agricultural business
|
|
Revenues
|
11,364
|
-
|
-
|
6,091
|
17,455
|
|
Costs
|
(9,669)
|
(16)
|
-
|
(5,074)
|
(14,759)
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
1,477
|
-
|
-
|
26
|
1,503
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
574
|
-
|
-
|
-
|
574
|
|
Gross
profit / (loss)
|
3,746
|
(16)
|
-
|
1,043
|
4,773
|
|
Net gain from fair
value adjustment of investment properties
|
-
|
16
|
-
|
-
|
16
|
|
Gain
from disposal of farmlands
|
-
|
407
|
-
|
-
|
407
|
|
General
and administrative expenses
|
(591)
|
(1)
|
(138)
|
(184)
|
(914)
|
|
Selling
expenses
|
(1,242)
|
-
|
-
|
(515)
|
(1,757)
|
|
Other
operating results, net
|
149
|
289
|
-
|
122
|
560
|
|
Profit
/ (loss) from operations
|
2,062
|
695
|
(138)
|
466
|
3,085
|
|
Share of profit of
associates and joint ventures
|
38
|
-
|
-
|
173
|
211
|
|
Segment
profit / (loss)
|
2,100
|
695
|
(138)
|
639
|
3,296
|
|
|
|
|
|
|
|
|
Investment
properties
|
3,236
|
-
|
-
|
-
|
3,236
|
|
Property,
plant and equipment
|
26,026
|
214
|
-
|
889
|
27,129
|
|
Investments
in associates
|
477
|
-
|
-
|
449
|
926
|
|
Other
reportable assets
|
9,482
|
-
|
-
|
2,948
|
12,430
|
|
Reportable assets
|
39,221
|
214
|
-
|
4,286
|
43,721
|
(II)
Urban properties and investments line of business
Below
is a summarized analysis of the lines of business of Group’s
operations center in Argentina:
|
|
12.31.20
|
|||||||
|
|
Shopping Malls
|
Offices
|
Sales and developments
|
Hotels
|
International
|
Corporate
|
Others
|
Total
|
|
Revenues
|
1,943
|
1,118
|
358
|
119
|
297
|
-
|
19
|
3,854
|
|
Costs
|
(292)
|
(93)
|
(368)
|
(335)
|
(251)
|
-
|
(83)
|
(1,422)
|
|
Gross profit / (loss)
|
1,651
|
1,025
|
(10)
|
(216)
|
46
|
-
|
(64)
|
2,432
|
|
Net (loss) / profit
from fair value adjustment of investment properties
(i)
|
(4,762)
|
7,503
|
6,167
|
-
|
3
|
-
|
570
|
9,481
|
|
General
and administrative expenses
|
(674)
|
(182)
|
(146)
|
(157)
|
(31)
|
(325)
|
(27)
|
(1,542)
|
|
Selling
expenses
|
(116)
|
(78)
|
(529)
|
(47)
|
(20)
|
-
|
(3)
|
(793)
|
|
Other
operating results, net
|
(65)
|
(8)
|
(37)
|
10
|
(1)
|
-
|
(3)
|
(104)
|
|
(Loss) / Profit from operations
|
(3,966)
|
8,260
|
5,445
|
(410)
|
(3)
|
(325)
|
473
|
9,474
|
|
Share of profit /
(loss) of associates and joint ventures
|
-
|
-
|
(15)
|
-
|
(543)
|
-
|
(250)
|
(808)
|
|
Segment (loss) / profit
|
(3,966)
|
8,260
|
5,430
|
(410)
|
(546)
|
(325)
|
223
|
8,666
|
|
|
|
|
|
|
|
|
|
|
|
Investment
and trading properties
|
54,295
|
67,273
|
44,353
|
(2)
|
111
|
-
|
2,026
|
168,056
|
|
Property,
plant and equipment
|
243
|
2,129
|
-
|
2,265
|
-
|
7
|
-
|
4,644
|
|
Investment
in associates and joint ventures
|
-
|
-
|
623
|
-
|
1,858
|
-
|
7,840
|
10,321
|
|
Other
reportable assets
|
127
|
147
|
995
|
27
|
-
|
-
|
107
|
1,403
|
|
Reportable assets
|
54,665
|
69,549
|
45,971
|
2,290
|
1,969
|
7
|
9,973
|
184,424
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
15
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
(i) For the six-month period ended December 31, 2020, the
net gain from fair value adjustment of investment properties was
Ps. 9,481. The net impact of the values in pesos of our properties
was mainly a consequence of the change in macroeconomic
conditions:
(a)
loss of Ps. 235.0
as a consequence of the variation in the projected income growth
rate increase in the projected inflation rate and the conversion to
dollars of the projected cash flow in pesos according to the
exchange rate estimates used in the cash flow from shopping
malls;
(b)
positive impact of
Ps. 8,350.9 resulting from the conversion into pesos of the value
of the shopping malls in dollars based on the exchange rate at the
end of the period;
(c)
an increase of 103
basis points in the discount rate, mainly due to an increase in the
country-risk rate component of the WACC discount rate used to
discount the cash flow, which led to a decrease in the value of the
shopping malls of Ps. 4,743.8.
(d)
Additionally, due
to the impact of the inflation adjustment, Ps. 9,323.0 were
reclassified for shopping malls from “Net gain from fair
value adjustment” to “Inflation Adjustment” in
the Statement of Income and Other Comprehensive
Income.
The
value of our office buildings and other rental properties measured
in real terms increased by 15.0% during the six-month period ended
as of December 31, 2020, due to the implicit exchange
rate.
Below
is a summarized analysis of the segments from the Group’s
Operations Center in Israel where only assets and liabilities are
presented as of December 31,2019:
|
|
12.31.19
|
||||||
|
|
Real
Estate
|
Supermarkets
|
Telecommunications
|
Insurance
|
Corporate
|
Others
|
Total
|
|
Reportable
assets
|
182,170
|
30,553
|
156,780
|
9,989
|
39,527
|
90,512
|
509,531
|
|
Reportable
liabilities
|
(167,716)
|
-
|
(122,483)
|
-
|
(131,502)
|
(27,623)
|
(449,324)
|
|
Net
reportable assets
|
14,454
|
30,553
|
34,297
|
9,989
|
(91,975)
|
62,889
|
60,207
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
16
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
7.
Investments
in associates and joint ventures
Changes
in the Group’s investments in associates and joint ventures
for the six-month period ended December 31, 2020 and for the year
ended June 30, 2019 were as follows:
|
|
12.31.20
|
06.30.20
|
|
Beginning of the period / year
|
90,020
|
43,400
|
|
Adjustments
of previous years (IFRS 9 and IAS 28)
|
-
|
(2,372)
|
|
Issuance
of capital and contributions
|
27
|
3,418
|
|
Capital
reduction
|
-
|
(127)
|
|
(Decrease)
/ Increase of interest in associates and joint ventures
(iv)
|
(34,381)
|
3,325
|
|
Share
of profit / (loss)
|
87
|
10,561
|
|
Other
comprehensive income
|
(44)
|
(1,491)
|
|
Currency
translation adjustment
|
(2,653)
|
11
|
|
Dividends
(i)
|
(37)
|
(2,212)
|
|
Deconsolidation
(iii)
|
(38,654)
|
34,967
|
|
Reclassification
to held-for-sale
|
-
|
(2,481)
|
|
Incorporation
by business combination
|
-
|
3,017
|
|
Others
|
(10)
|
4
|
|
End of the period / year (ii)
|
14,355
|
90,020
|
(i)
See Note
28.
(ii)
As of December 31,
2020, and June 30, 2019 includes Ps. (15) and (18) reflecting
interests in companies with negative equity, which were disclosed
in “Provisions” (see Note 19)
(iii)
The amount as of
September 30, 2021 corresponds to the effect of the deconsolidation
of IDBD (See note 4.E). Regarding the amount as of June 30, 2020,
it corresponds to the effect of the deconsolidation of Gav-Yam (See
Note 4 to the consolidated Financial Statements as of June 30,
2020)
(iv)
Mainly corresponds
to the sale of the remaining equity interest in Shufersal in July
2020
Below
is additional information about the Group’s investments in
associates and joint ventures:
|
|
% ownership interest
|
Value of Group's interest in equity
|
Group's interest in comprehensive income / (loss)
|
|||
|
Name of the entity
|
12.31.20
|
06.30.20
|
12.31.20
|
06.30.20
|
12.31.20
|
12.31.19
|
|
Associates
|
|
|
|
|
|
|
|
New
Lipstick
|
49.96%
|
49.96%
|
189
|
560
|
(378)
|
(501)
|
|
BHSA
|
29.91%
|
29.91%
|
5,042
|
4,881
|
161
|
(1,352)
|
|
Condor
|
18.89%
|
18.89%
|
1,601
|
1,775
|
(166)
|
(18)
|
|
PBEL
|
N/A
|
45.40%
|
-
|
-
|
-
|
-
|
|
Shufersal
|
N/A
|
26.02%
|
-
|
33,691
|
19
|
-
|
|
Mehadrin
|
N/A
|
45.41%
|
-
|
-
|
-
|
-
|
|
Gav-Yam
|
N/A
|
N/A
|
-
|
32,691
|
31
|
-
|
|
TGLT
S.A. (1)
|
30.20%
|
N/A
|
2,047
|
2,468
|
(421)
|
-
|
|
Quality
|
50.00%
|
50.00%
|
2,919
|
2,518
|
383
|
252
|
|
La
Rural S.A.
|
50.00%
|
50.00%
|
277
|
243
|
32
|
128
|
|
Cresca
S.A.
|
50.00%
|
50.00%
|
25
|
25
|
(3)
|
(1)
|
|
Other
associates and joint ventures
|
-
|
-
|
2,255
|
11,168
|
(2,224)
|
695
|
|
Total associates and joint ventures
|
|
|
14,355
|
90,020
|
(2,566)
|
(797)
|
(1)
Additionally,
21,600,000 preferred class A shares and 24,948,798 preferred class
B shares were subscribed, subject to conversion. As of the date of
issuance of these financial statements, these preferred shares have
not yet been converted.
(*)
Amounts in millions
of US Dollars under USGAAP. Condor’s year-end falls on
December 31, so the Group estimates their interest with a
three-monthlag, including material adjustments, if
any.
(**)
Amounts in millions
of NIS.
(***)
Preliminary
information as of December 31, 2020 according to NIIF.
Puerto Retiro (joint venture):
There
have been no changes to what was informed in Note 8 to the Annual
Financial Statements.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
17
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
8.
Investment
properties
Changes
in the Group’s investment properties for the six-month period
ended December 31, 2020 and for the year ended June 30, 2019 were
as follows:
|
|
Leased out farmland
|
Rental properties
|
Underdeveloped parcels of land
|
Properties under development
|
Others
|
Total as of 12.31.20
|
Total as of 06.30.20
|
|
Fair value at the beginning of the period / year
|
4,949
|
229,122
|
37,813
|
3,879
|
90
|
275,853
|
401,513
|
|
Adjustments
of previous years (IFRS 15)
|
-
|
-
|
-
|
-
|
-
|
-
|
511
|
|
Additions
|
-
|
488
|
53
|
-
|
-
|
541
|
6,543
|
|
Capitalized
leasing costs
|
-
|
10
|
1
|
-
|
-
|
11
|
24
|
|
Amortization
of capitalized leasing costs (i)
|
-
|
(6)
|
-
|
-
|
-
|
(6)
|
(18)
|
|
Transfers
|
495
|
(216)
|
-
|
-
|
-
|
279
|
(27,164)
|
|
Incorporation
by business combination
|
-
|
-
|
-
|
-
|
-
|
-
|
292
|
|
Deconsolidation
|
-
|
(91,416)
|
(951)
|
(1,427)
|
-
|
(93,794)
|
(188,810)
|
|
Disposals
|
-
|
(14,154)
|
-
|
-
|
-
|
(14,154)
|
(18,159)
|
|
Currency
translation adjustment
|
356
|
(9,607)
|
(99)
|
(158)
|
-
|
(9,508)
|
63,267
|
|
Net
gain / (loss) from fair value adjustment
|
49
|
1,390
|
6,006
|
1,522
|
34
|
9,001
|
37,854
|
|
Fair value at the end of the period / year
|
5,849
|
115,611
|
42,823
|
3,816
|
124
|
168,223
|
275,853
|
(i)
Amortization
charges of capitalized leasing costs were included in
“Costs” in the Statements of Income (Note
24).
The
following amounts have been recognized in the Statements of
Income:
|
|
12.31.20
|
12.31.19
|
|
Rental
and services income
|
4,316
|
8,655
|
|
Direct
operating expenses
|
(1,828)
|
(3,003)
|
|
Development
expenses
|
(43)
|
(63)
|
|
Net
realized gain from fair value adjustment of investment
properties
|
7,915
|
436
|
|
Net
unrealized loss from fair value adjustment of investment
properties
|
1,108
|
4,720
|
(i)
As of December 31,
2020 includes Ps. 3,950 for the sale of Torre Boston and Ps. 3,965
for the sale of Bouchard 710. As of December 31, 2019 includes Ps.
436 corresponding to the barter transaction of the Caballito Ferro
land and Ps. 236 for the deconsolidation of the La Maltería
S.A land.
(ii)
As of December 31,
2020, (ARS 1,209) corresponds to the realized result from fair
value adjustment for the period ((ARS 835) for the sale of Torre
Boston and (ARS 374) for the sale of Bouchard 710) and Ps. 9,124
for realized result from fair value adjustment made in previous
years (ARS 4,786 for the sale of Torre Boston and Ps. 4,338 for the
sale of Bouchard 710). As of December 31, 2019 Ps. 60 corresponds
to net realized fair value adjustment on investment properties for
the period (which includes the barter transaction of the Caballito
Ferro land) and Ps. 612 corresponds to the realized fair value
adjustment made in previous years (ARS 376 corresponding to the
barter transaction of the Caballito Ferro land and Ps. 236 for the
deconsolidation of the La Maltería S.A. land).
Valuation
techniques are described in Note 9 to the Annual Financial
Statements. There were no changes to such techniques. The Group has
reassessed the assumptions December 31, 2020, considering the
market conditions existing at that date due to the pandemic
described in Note 33, incorporating the effect of the variation in
the exchange rate in other assets denominated in US
Dollars.
9.
Property,
plant and equipment
Changes
in the Group’s property, plant and equipment for the
six-month period ended December 31, 2020 and for the year ended
June 30, 2019 were as follows:
|
|
Owner
occupied farmland
|
Bearer
plant
|
Buildings
and facilities
|
Machinery
and equipment
|
Communication
networks
|
Others
|
Total as of 12.31.20
|
Total as of 06.30.20
|
|
Costs
|
31,241
|
2,457
|
17,040
|
3,110
|
114,412
|
18,801
|
187,061
|
170,826
|
|
Accumulated
depreciation
|
(2,800)
|
(1,105)
|
(9,322)
|
(2,164)
|
(89,107)
|
(10,706)
|
(115,204)
|
(105,980)
|
|
Net
book amount at the beginning of the period / year
|
28,441
|
1,352
|
7,718
|
946
|
25,305
|
8,095
|
71,857
|
64,846
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
466
|
41
|
138
|
23
|
464
|
708
|
1,840
|
8,214
|
|
Disposals
|
(17)
|
-
|
(70)
|
(1)
|
(44)
|
(77)
|
(209)
|
(4,192)
|
|
Deconsolidation
|
(4,869)
|
-
|
(3,419)
|
(634)
|
(22,599)
|
(6,771)
|
(38,292)
|
(1,272)
|
|
Assets incorporated
by business combinations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
11,355
|
|
Currency
translation adjustment
|
393
|
80
|
(261)
|
(48)
|
(1,824)
|
(525)
|
(2,185)
|
5,143
|
|
Transfers
|
101
|
-
|
738
|
-
|
-
|
(1)
|
838
|
(3,013)
|
|
Depreciation
charges (i)
|
(170)
|
(241)
|
(240)
|
(49)
|
(1,302)
|
(893)
|
(2,895)
|
(9,224)
|
|
Balances
at the end of the period / year
|
24,345
|
1,232
|
4,604
|
237
|
-
|
536
|
30,954
|
71,857
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
26,327
|
2,194
|
7,897
|
2,263
|
-
|
1,245
|
39,926
|
196,990
|
|
Accumulated
depreciation
|
(1,982)
|
(962)
|
(3,293)
|
(2,026)
|
-
|
(709)
|
(8,972)
|
(125,133)
|
|
Net
book amount at the end of the period / year
|
24,345
|
1,232
|
4,604
|
237
|
-
|
536
|
30,954
|
71,857
|
(i)
As of December 31,
2020, the amortization charge has been charged to the line "Costs"
for Ps. 128, "General and administrative expenses" for Ps. 10,
respectively, in the income statement (Note 24), Ps. 483 were
capitalized as part of the cost of biological assets and Ps. 2,274
corresponds to discontinued operations.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
18
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
10.
Trading
properties
Changes
in the Group’s trading properties for the six-month period
ended December 31, 2020 and for the year ended June 30, 2019 were
as follows:
|
|
Completed
properties
|
Properties
under development
|
Undeveloped
sites
|
Total
as of 12.31.20
|
Total
as of 06.30.20
|
|
Beginning
of the period / year
|
2,427
|
992
|
5,177
|
8,596
|
10,041
|
|
Additions
|
-
|
-
|
309
|
309
|
2,669
|
|
Capitalized finance
costs
|
-
|
256
|
-
|
256
|
111
|
|
Currency
translation adjustment
|
(157)
|
(17)
|
(298)
|
(472)
|
1,053
|
|
Transfers
|
155
|
(155)
|
-
|
-
|
258
|
|
Impairment
|
-
|
-
|
-
|
-
|
(186)
|
|
Deconsolidation
|
(1,698)
|
(113)
|
(4,325)
|
(6,136)
|
-
|
|
Disposals
|
(630)
|
(224)
|
(171)
|
(1,025)
|
(5,350)
|
|
End
of the period / year
|
97
|
739
|
692
|
1,528
|
8,596
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
1,476
|
5,820
|
|
Current
|
|
|
|
52
|
2,776
|
|
Total
|
|
|
|
1,528
|
8,596
|
11.
Intangible
assets
Changes
in the Group’s intangible assets for the six-month period
ended December 31, 2020 and for the year ended June 30, 2019 were
as follows:
|
|
|
Goodwill
|
|
Trademarks
|
|
Licenses
|
|
Customer relations
|
|
Information systems and software
|
|
Contracts and others
|
|
Total as of 12.31.20
|
|
Total as of 06.30.20
|
|
|||||||||||||||
|
Costs
|
|
6,976
|
|
9,944
|
|
12,006
|
|
18,641
|
|
12,606
|
|
15,085
|
|
75,258
|
|
67,024
|
|
|||||||||||||||
|
Accumulated
amortization
|
|
-
|
|
(802)
|
|
(9,106)
|
|
(15,675)
|
|
(7,506)
|
|
(8,381)
|
|
(41,470)
|
|
(35,842)
|
|
|||||||||||||||
|
Net book amount at the beginning of the period / year
|
6,976
|
|
9,142
|
|
2,900
|
|
2,966
|
|
5,100
|
|
6,704
|
|
33,788
|
|
31,182
|
|||||||||||||||||
|
Additions
|
|
-
|
|
-
|
|
-
|
|
22
|
|
331
|
|
706
|
|
1,059
|
|
5,438
|
|
|||||||||||||||
|
Disposals
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(88)
|
|
-
|
|
(88)
|
|
(186)
|
|
|||||||||||||||
|
Deconsolidation
|
|
(6,521)
|
|
(8,469)
|
|
(2,627)
|
|
(2,506)
|
|
(3,914)
|
|
(5,124)
|
|
(29,161)
|
|
-
|
|
|||||||||||||||
|
Transfers
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
(2)
|
|
(65)
|
|
|||||||||||||||
|
Assets
incorporated by business combination
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
81
|
|
|||||||||||||||
|
Currency
translation adjustment
|
|
(114)
|
|
(651)
|
|
(207)
|
|
(217)
|
|
(350)
|
|
(433)
|
|
(1,972)
|
|
6,898
|
|
|||||||||||||||
|
Impairment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,932)
|
|
|||||||||||||||
|
Amortization
charges (i)
|
|
-
|
|
(22)
|
|
(66)
|
|
(265)
|
|
(847)
|
|
(628)
|
|
(1,828)
|
|
(5,628)
|
|
|||||||||||||||
|
Balances at the end of the period / year
|
|
341
|
|
-
|
|
-
|
|
-
|
|
230
|
|
1,225
|
|
1,796
|
|
33,788
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Costs
|
|
341
|
|
-
|
|
-
|
|
-
|
|
781
|
|
1,699
|
|
2,821
|
|
75,258
|
|
|||||||||||||||
|
Accumulated
amortization
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(551)
|
|
(474)
|
|
(1,025)
|
|
(41,470)
|
|
|||||||||||||||
|
Net book amount at the end of the period / year
|
|
341
|
|
-
|
|
-
|
|
-
|
|
230
|
|
1,225
|
|
1,796
|
|
33,788
|
|
|||||||||||||||
(i)
Amortization charge
was recognized in the amount of Ps. 14 under "Costs", in the amount
of Ps. 48 under "General and administrative expenses" as of
December 31, 2020 in the Statements of Income (Note 24) and Ps.
1,766 corresponds to discontinued operations.
12.
Right-of-use
assets
The
Group’s right-of-use assets as of December 31, 2020 and June
30, 2020 are the following:
|
|
12.31.20
|
06.30.20
|
|
Farmland
|
2,989
|
2,429
|
|
Offices, shopping
malls and other buildings
|
9
|
4,933
|
|
Communication
networks
|
-
|
13,188
|
|
Machinery and
equipment
|
79
|
41
|
|
Others
|
707
|
5,690
|
|
Right-of-use
assets
|
3,784
|
26,281
|
|
|
|
|
|
Non-current
|
3,784
|
26,281
|
|
Total
|
3,784
|
26,281
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
19
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
depreciation charge of the right-of use-assets is detailed
below:
|
|
12.31.20
|
12.31.19
|
|
Farmland
|
239
|
246
|
|
Offices, shopping
malls and other buildings
|
1,180
|
1,974
|
|
Communication
networks
|
270
|
643
|
|
Others
|
42
|
178
|
|
Depreciation
charge of right-of-use assets
|
1,731
|
3,041
|
(i)
Includes Ps. 1,457
and Ps. 2,770 charged to the result of discontinued operations as
of December 31, 2020 and 2019 respectively.
13.
Biological
assets
Changes
in the Group’s biological assets and their allocation to the
fair value hierarchy six-month period ended December 31, 2020 and
for the year ended June 30, 2019 were as follows:
|
|
|
Agricultural business
|
|||||||||||||||
|
|
|
Sown land-crops
|
|
Sugarcane fields
|
|
Breeding cattle and cattle for sale
|
|
Other cattle
|
|
Others
|
|
Total as of 12.31.20
|
|
Total as of 06.30.20
|
|
||
|
|
|
Level 1
|
|
Level 3
|
|
Level 3
|
|
Level 2
|
|
Level 2
|
|
Level 1
|
|
|
|
||
|
Net book amount at the beginning of the period / year
|
323
|
|
1,252
|
|
1,232
|
|
2,552
|
|
34
|
|
38
|
|
5,431
|
|
6,712
|
|
|
|
Purchases
|
|
-
|
|
-
|
|
-
|
|
259
|
|
-
|
|
-
|
|
259
|
|
343
|
|
|
Changes by transformation
|
|
(193)
|
|
193
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Initial recognition and changes in the fair value of biological
assets (i)
|
|
-
|
|
814
|
|
786
|
|
63
|
|
6
|
|
-
|
|
1,669
|
|
3,373
|
|
|
Decrease due to harvest
|
|
-
|
|
(4,989)
|
|
(2,631)
|
|
-
|
|
-
|
|
-
|
|
(7,620)
|
|
(15,542)
|
|
|
Sales
|
|
-
|
|
-
|
|
-
|
|
(880)
|
|
(1)
|
|
-
|
|
(881)
|
|
(1,928)
|
|
|
Consumes
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
(3)
|
|
(5)
|
|
(443)
|
|
|
Costs for the period /
year
|
|
3,738
|
|
2,848
|
|
1,801
|
|
702
|
|
-
|
|
2
|
|
9,091
|
|
13,700
|
|
|
Addition
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
74
|
|
|
Foreign exchange gain
|
|
113
|
|
8
|
|
75
|
|
-
|
|
-
|
|
-
|
|
196
|
|
(858)
|
|
|
Balances at the end of the period / year
|
|
3,981
|
|
126
|
|
1,263
|
|
2,694
|
|
39
|
|
37
|
|
8,140
|
|
5,431
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Non-current (Production)
|
|
-
|
|
-
|
|
-
|
|
2,230
|
|
32
|
|
37
|
|
2,299
|
|
2,108
|
|
|
Current (Consumable)
|
|
3,981
|
|
126
|
|
1,263
|
|
464
|
|
7
|
|
-
|
|
5,841
|
|
3,323
|
|
|
Net book amount at the end of the period / year
|
|
3,981
|
|
126
|
|
1,263
|
|
2,694
|
|
39
|
|
37
|
|
8,140
|
|
5,431
|
|
(i)
Biological assets
with a production cycle of more than one year (that is, cattle)
generated “Initial recognition and changes in fair value of
biological assets” amounting to Ps. 68 and Ps. 352 for the
six-month periods ended December 31, 2020 and for the fiscal year
ended June 30, 2019, respectively; amounts of Ps. 432 and Ps. 369,
was attributable to price changes, and amounts of Ps. (364) and Ps.
17, was attributable to physical changes,
respectively.
During
the six-month period ended December 31, 2020, there were transfers
between the fair value hierarchies 1 and 3 of grain seeding (due to
the degree of phenological growth of the crop) for Ps. 193. There
were also no reclassifications between categories
thereof.
The
fair value less estimated point of sale costs of agricultural
produce at the point of harvest (which have been harvested during
the period) amount to Ps. (7,620) and Ps. (15,542) for the
six-month period ended December 31, 2020 and the year ended June
30, 2019, respectively.
See
information on valuation processes used by the entity in Note 14 to
the Annual Financial Statements.
As of
December 31, 2020, and June 30, 2019, the better and maximum use of
biological assets shall not significantly differ from the current
use.
14.
Inventories
Breakdown of
Group’s inventories as of December 31, 2020 and June 30, 2020
are as follows:
|
|
12.31.20
|
06.30.20
|
|
Crops
|
920
|
3,232
|
|
Materials and
supplies
|
2,008
|
1,690
|
|
Seeds and
fodders
|
333
|
330
|
|
Sugarcane
|
-
|
5
|
|
Agricultural
inventories
|
3,261
|
5,257
|
|
Telephones and
other communication equipment
|
-
|
2,023
|
|
Fruit
|
-
|
3,242
|
|
Others
|
69
|
348
|
|
Total
inventories
|
3,330
|
10,870
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
20
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
15.
Financial
instruments by category
Determining fair values
The
present note shows the financial assets and financial liabilities
by category of financial instrument and a reconciliation to the
corresponding line in the Consolidated Statements of Financial
Position, as appropriate. Financial assets and liabilities measured
at fair value are assigned based on their different levels in the
fair value hierarchy. For further information related to fair value
hierarchy refer to Note 15 to the Annual Financial
Statements.
Financial assets
and financial liabilities as of December 31, 2020 are as
follows:
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
21
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Financial assets
and financial liabilities as of June 30, 2020 were as
follows:
(i)
Corresponds to
deposits in guarantee and escrows
The
fair value of financial assets and liabilities at their amortized
cost does not differ significantly from their book value, except
for borrowings (Note 20). The fair value of payables approximates
their respective carrying amounts because, due to their short-term
nature, the effect of discounting is not considered significant.
Fair values are based on discounted cash flows (Level
3).
The
valuation models used by the Group for the measurement of Level 2
and Level 3 instruments are no different from those used as of June
30, 2020.
As of
December 31, 2020, there have been no changes to the economic or
business circumstances affecting the fair value of the financial
assets and liabilities of the Group, except for what is mentioned
in Note 33.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
22
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
Group uses a range of valuation models for the measurement of Level
2 and Level 3 instruments, details of which may be obtained from
the following table. When no quoted prices are available in an
active market, fair values (particularly with derivatives) are
based on recognized valuation methods.
|
Description
|
Pricing model / method
|
Parameters
|
Fair value hierarchy
|
Range
|
|
Promissory
note
|
Theoretical
price
|
Acquisition
agreement.
|
Level
2
|
-
|
|
Investments
in financial assets - Other private companies’
securities
|
Cash
flow / NAV - Theoretical price
|
Projected revenue
discounted at the discount rate /
The value is
calculated in accordance with shares in the equity funds on the
basis of their Financial Statements, based on fair value or
investments assessments.
|
Level
3
|
1 - 3.5
|
|
Derivative
financial instruments – Forwards
|
Theoretical
price
|
Underlying
asset price and volatility
|
Level 2 and
3
|
-
|
The
following table presents the changes in Level 3 instruments as of
December 31, 2020 and June 30, 2020:
|
|
Derivative financial instruments –
Forwards
|
Investments in financial assets - Private
companies
|
Investments in financial assets - Others
|
Investments in financial assets - Public
companies
|
Derivative financial instruments
|
Total as of 12.31.20
|
Total as of 06.30.20
|
|
Balances at beginning of the period / year
|
(24)
|
3,486
|
278
|
-
|
170
|
3,910
|
4,965
|
|
Additions
and acquisitions
|
-
|
-
|
-
|
-
|
-
|
-
|
42
|
|
Transfer
to level 1
|
-
|
-
|
-
|
275
|
-
|
275
|
421
|
|
Currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
982
|
|
Disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,902)
|
|
Write
off
|
24
|
(3,486)
|
(243)
|
-
|
(170)
|
(3,875)
|
-
|
|
Gain
/ (loss) for the period / year (i)
|
-
|
-
|
1
|
(38)
|
-
|
(37)
|
(598)
|
|
Balances at the end of the period / year
|
-
|
-
|
36
|
237
|
-
|
273
|
3,910
|
(i) Included within
“Financial results, net” in the Statements of
Income.
16.
Trade
and other receivables
Group’s trade
and other receivables as of December 31, 2020 and June 30, 2020 are
as follows:
|
|
12.31.20
|
06.30.20
|
|
Trade, leases and
services receivable
|
16,575
|
55,037
|
|
Less: allowance for
doubtful accounts
|
(787)
|
(4,614)
|
|
Total
trade receivables
|
15,788
|
50,423
|
|
Prepayments
|
4,566
|
14,189
|
|
Borrowings,
deposits and others
|
3,169
|
9,159
|
|
Guarantee
deposits
|
3
|
4
|
|
Tax
receivables
|
2,083
|
1,855
|
|
Others
|
1,462
|
9,514
|
|
Total
other receivables
|
11,283
|
34,721
|
|
Total
trade and other receivables
|
27,071
|
85,144
|
|
|
|
|
|
Non-current
|
8,273
|
32,750
|
|
Current
|
18,798
|
52,394
|
|
Total
|
27,071
|
85,144
|
|
|
|
|
The
fair value of current trade and other receivables approximate their
respective carrying amounts due to their short-term nature, as the
impact of discounting is not considered significant. Fair values
are based on discounted cash flows (Level 3).
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
23
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Movements on the
Group’s allowance for doubtful accounts were as
follows:
|
|
12.31.20
|
06.30.20
|
|
Beginning
of the period / year
|
4,614
|
3,243
|
|
Incorporation by
business combination
|
-
|
(216)
|
|
Additions
(i)
|
408
|
1,296
|
|
Recovery
(i)
|
(62)
|
(135)
|
|
Currency
translation adjustment
|
(233)
|
1,321
|
|
Receivables written
off during the period / year as uncollectable
|
(22)
|
(863)
|
|
Deconsolidation
|
(3,705)
|
(24)
|
|
Inflation
adjustment
|
(155)
|
(30)
|
|
Transfers to assets
held for sale
|
(58)
|
22
|
|
End
of the period / year
|
787
|
4,614
|
|
|
|
|
(i)
The creation and
release of the allowance for doubtful accounts have been included
in “Selling expenses” in the Statement of Income (Note
25).
17.
Cash
flow and cash equivalent information
Following is a
detailed description of cash flows generated by the Group’s
operations for the six and six-month periods ended December 31,
2020 and 2019:
|
|
Note
|
12.31.20
|
12.31.19
|
|
(Loss) / Profit for the period
|
|
(3,264)
|
2,278
|
|
Profit / (Loss) from discontinued operations
|
|
7,120
|
(10,192)
|
|
Adjustments for:
|
|
|
|
|
Income
tax
|
21
|
4,089
|
3,707
|
|
Amortization
and depreciation
|
24
|
310
|
400
|
|
Net
gain from fair value adjustment of investment
properties
|
|
(9,023)
|
(5,156)
|
|
Changes
in the fair value of investments in financial assets
|
|
(629)
|
(438)
|
|
Gain
from disposal of properties, plant and equipment
|
|
(3)
|
-
|
|
Financial
results, net
|
|
(4,576)
|
17,314
|
|
Provisions
and allowances
|
|
1,302
|
403
|
|
Share
of loss of associates and joint ventures
|
7
|
487
|
1,284
|
|
(Gain)
/ Loss from repurchase of Non-convertible Notes
|
|
(3)
|
1
|
|
Changes
in net realizable value of agricultural products after
harvest
|
|
(259)
|
(575)
|
|
Unrealized
initial recognition and changes in fair value of biological assets
and agricultural products at the point of harvest
|
|
(2,082)
|
(1,913)
|
|
Unrealized
gain from derivative financial instruments
|
|
1,988
|
(289)
|
|
Other
operating results
|
|
(4)
|
31
|
|
Gain
from disposal of farmlands
|
|
(91)
|
(407)
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Decrease
in inventories
|
|
2,438
|
2,298
|
|
Decrease
/ (Increase) in trading properties
|
|
749
|
(457)
|
|
Decrease
in biological assets
|
|
655
|
1,413
|
|
(Increase)
/ Decrease in trade and other receivables
|
|
(1,317)
|
2,173
|
|
Increase
/ (Decrease) in trade and other payables
|
|
1,775
|
(1,926)
|
|
Decrease
in salaries and social security liabilities
|
|
(295)
|
(568)
|
|
Decrease
in provisions
|
|
(63)
|
(204)
|
|
Increase
/ (Decrease) in lease liabilities
|
|
748
|
(78)
|
|
Net
variation in derivative financial instruments
|
|
1,751
|
69
|
|
Decrease
in right of use
|
|
(990)
|
-
|
|
Net cash generated by continuing operating activities before income
tax paid
|
|
813
|
9,168
|
|
Net cash generated by discontinued operating activities before
income tax paid
|
|
2,672
|
17,803
|
|
Net cash generated by operating activities before income tax
paid
|
|
3,485
|
26,971
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
24
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
following table presents a detail of significant non-cash
transactions occurred in the six and six-month periods ended
December 31, 2020 and 2019:
|
|
12.31.20
|
12.31.19
|
|
Dividends
not collected
|
-
|
(38)
|
|
Decrease
in participation in subsidiaries, associates and joint ventures due
to transient conversion differences
|
(2)
|
(848)
|
|
Increase
in property, plant and equipment through an increase in trade and
other payables
|
-
|
609
|
|
Increase
in investment properties through an increase in trade and other
payables
|
-
|
658
|
|
Increase
of properties for sale through an increase in
borrowings
|
256
|
87
|
|
Distribution
of dividends at non-controlling interest pending
payment
|
-
|
1,378
|
|
Increase
in investments in associates and joint ventures through a decrease
in investments in financial assets
|
-
|
984
|
|
Increase
of investment properties through the acquisition of investments in
associates
|
-
|
1,623
|
|
Increase
in investment properties through a decrease in financial
assets
|
-
|
334
|
|
Increase
in intangible assets through an increase in trade and other
payables
|
-
|
696
|
|
Increase
in investments in financial assets through a decrease in
investments in associates and joint ventures
|
-
|
26
|
|
Decrease
in borrowings through a decrease in financial assets
|
-
|
2,942
|
|
Increase
of rights of use through a decrease of property, plant and
equipment
|
-
|
26
|
|
Distribution
of dividends in shares
|
580
|
707
|
|
Increase
in investments in associates and joint ventures from an increase in
trade and other payables
|
-
|
83
|
|
Increase
in rights of use through an increase in lease
liabilities
|
24
|
-
|
|
Increase
in property, plant and equipment through an increase in trade and
other payables
|
33
|
-
|
The following
table presents the balances disposed because of the loss of control
of IDBD:
|
|
09.30.20
|
|
Investment
properties
|
93,794
|
|
Property,
plant and equipment
|
38,292
|
|
Trading
properties
|
6,136
|
|
Intangible
assets
|
29,161
|
|
Right-of-use
assets
|
20,629
|
|
Investments
in associates and joint ventures
|
38,654
|
|
Deferred
income tax assets
|
453
|
|
Income
tax credit
|
340
|
|
Restricted
assets
|
6,703
|
|
Trade
and other receivables
|
56,408
|
|
Investments
in financial assets
|
25,249
|
|
Derivative
financial instruments
|
294
|
|
Inventories
|
3,760
|
|
Group
of assets held for sale
|
43,909
|
|
Borrowings
|
(339,376)
|
|
Lease
liabilities
|
(18,908)
|
|
Deferred
income tax liabilities
|
(12,975)
|
|
Trade
and other payables
|
(25,363)
|
|
Income
tax liabilities
|
(475)
|
|
Provisions
|
(5,661)
|
|
Employee
benefits
|
(498)
|
|
Derivative
financial instruments
|
(498)
|
|
Salaries
and social security liabilities
|
(3,532)
|
|
Group
of liabilities held for sale
|
(22,985)
|
|
Net value of incorporated assets that do not affect
cash
|
(66,489)
|
|
Cash
and cash equivalents
|
(115,963)
|
|
Non-controlling
interest
|
(49,886)
|
|
Net value of disposal assets
|
(232,338)
|
18.
Trade
and other payables
Group’s trade
and other payables as of December 31, 2020 and June 30, 2020 were
as follows:
|
|
12.31.20
|
06.30.20
|
|
Trade
payables
|
6,562
|
27,146
|
|
Advances from
sales, leases and services
|
3,075
|
2,363
|
|
Construction
obligations
|
-
|
488
|
|
Accrued
invoices
|
1,614
|
1,463
|
|
Deferred
income
|
-
|
170
|
|
Admission
fees
|
965
|
1,219
|
|
Deposits in
guarantee
|
158
|
121
|
|
Total
trade payables
|
12,374
|
32,970
|
|
Dividends payable
to non-controlling interests
|
38
|
425
|
|
Taxes
payable
|
1,419
|
893
|
|
Management
fees
|
-
|
228
|
|
Others
|
4,471
|
11,997
|
|
Total
other payables
|
5,928
|
13,543
|
|
Total
trade and other payables
|
18,302
|
46,513
|
|
|
|
|
|
Non-current
|
2,709
|
3,579
|
|
Current
|
15,593
|
42,934
|
|
Total
|
18,302
|
46,513
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
25
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
19.
Provisions
The
table below shows the movements in the Group's provisions
categorized by type:
|
|
Legal
claims (i)
|
Investments
in associates and joint ventures (ii)
|
Sited
dismantling and remediation
|
Other
provisions
|
Total
as of 12.31.20
|
Total
as of 06.30.20
|
|
Beginning
of period / year
|
3,029
|
20
|
537
|
3,047
|
6,633
|
16,725
|
|
Additions
|
69
|
-
|
22
|
(88)
|
3
|
603
|
|
Contributions
|
-
|
-
|
-
|
-
|
-
|
68
|
|
Transfers
|
(11)
|
-
|
-
|
-
|
(11)
|
-
|
|
Inflation
adjustment
|
(50)
|
-
|
-
|
-
|
(50)
|
(95)
|
|
Recovery
|
(32)
|
(10)
|
-
|
-
|
(42)
|
(22)
|
|
Share of loss in
associates and joint ventures
|
-
|
(2)
|
-
|
-
|
(2)
|
(8,942)
|
|
Incorporation
by business
combination
|
(2,468)
|
-
|
(521)
|
(2,672)
|
(5,661)
|
-
|
|
Currency
translation adjustment
|
(195)
|
-
|
(38)
|
(265)
|
(498)
|
570
|
|
Used during the
period / year
|
(63)
|
-
|
-
|
(22)
|
(85)
|
(2,274)
|
|
End
of period / year
|
279
|
8
|
-
|
-
|
287
|
6,633
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
148
|
3,705
|
|
Current
|
|
|
|
|
139
|
2,928
|
|
Total
|
|
|
|
|
287
|
6,633
|
(i)
Additions and
recovery are included in "Other operating results, net".
Corresponds to investments in New Lipstick and Puerto Retiro,
companies that have negative equity. The increase and recovery is
included in "Share of profit of associates and joint ventures
"
There
were no significant changes to the processes mentioned in Note 21
to the Annual Financial Statements.
20.
Borrowings
The
breakdown and fair value of the Group’s borrowings as of
December 31, 2020 and June 30, 2020 was as follows:
|
|
Book
value
|
Fair
value
|
||
|
|
12.31.20
|
06.30.20
|
12.31.20
|
06.30.20
|
|
NCN
|
75,379
|
411,116
|
71,641
|
331,807
|
|
Bank
loans
|
16,757
|
83,755
|
16,561
|
70,656
|
|
Bank
overdrafts
|
8,029
|
5,133
|
8,029
|
3,875
|
|
Other
borrowings
|
1,511
|
1,932
|
1,511
|
1,932
|
|
Total
borrowings
|
101,676
|
501,936
|
97,742
|
408,270
|
|
|
|
|
|
|
|
Non-current
|
57,695
|
384,018
|
|
|
|
Current
|
43,981
|
117,918
|
|
|
|
Total
|
101,676
|
501,936
|
|
|
(i)
Includes finance
leases in the amount of Ps. 347 as of June 30, 2019.
(ii)
Includes Ps.
269,504 and Ps. 373,564 as of December 31, 2020 and June 30, 2020,
respectively, corresponding to the Operations Center in
Israel.
Issuance of CRESUD Non-Convertible Notes
On
August 31, 2020, the seventeenth Series of Notes public tender was
carried out, within the framework of the Program approved by the
Shareholders Meeting, for up to US$ 500. The main characteristics
of the issuance are detailed bellow:
●
Series XXX: denominated in dollars and payable in pesos at the
applicable exchange rate, as defined in the issuance documents,
with a nominal value of US$ 25.0 at a fixed rate of 2.0%, maturing
36 months from the date of issuance with quarterly payments and
principal expiring at maturity. The issue price was 100.0% of
Nominal Value. Proceeds will be mainly used for debt
refinancing.
Issuance of IRSA Non-Convertible Notes
On July
21, 2020, subsequently to the closing of the fiscal year, the
Company issued US$ 38.4 Non-convertible Notes in the local market
through the following instruments:
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
26
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
●
Ps. 335.2 (equivalent to US$ 4.7) Series VI NCNs denominated and
payable in Argentine pesos at a variable rate (Private Badlar) +
4.0%, with interest accruing on a quarterly basis. The principal
amount is repayable in two installments: the first one -equal to
30% of the par value of the notes- payable on the date that is 9
(nine) months after the Issue and Settlement Date and the second
installment -equal to 70% of the par value of the notes- payable on
the relevant due date, i.e. July 21, 2021. Notes were issued at
100% of their par value.
●
US$ 33.7 Series VII NCNs denominated in US$ and payable in
Argentine pesos at the applicable exchange rate, at a fixed 4.0%
rate, with interest accruing on a quarterly basis. Repayment of
capital is due on January 21, 2021. Notes were issued at 100% of
their par value. The proceeds were used to refinance short-term
indebtedness. On January 21, 2021, the commitments of this note
were cancelled.
Payment of IRSA’s Non-Convertible Notes
On July
20, 2020, the Company paid the twentieth interest installment and
the principal installment of the US$ 75 Series II Non-Convertible
Notes issued on July 20, 2010.
On
August 6, 2020, the Company paid the second interest installment
and the principal installment of the US$ 47 Series II
Non-Convertible Notes issued on August 6, 2019.
Payment of IRSA CP’s Series IV Non-Convertible
Notes
On
September 14, 2020, the aggregate principal amount of the Series IV
Non-convertible Notes in the amount of Ps. 10,381 (US$ 140) and
interest accrued as of such date in the amount of Ps. 134 (US$ 1.8)
were paid.
Notes Issuance – Exchange Offer Series XXIV Notes - BCRA
“A” 7106 Communication
On
November 12, 2020, the company carried out an exchange operation of
its Series XXIV Notes, for a nominal value of US$
73.6.
Nominal
Value of Existing Notes presented and accepted for the Exchange
(for both Series): approximately US$ 65.1 which represents 88.41%
acceptance, through the participation of 1,098 orders.
●
Series XXXI: Face
Value of Existing Notes presented and accepted for the Exchange:
approximately US$ 30.8.
Nominal Value to be
Issued: approximately US$ 1.3.
Issuance Price:
100% nominal value.
Maturity Date: It
will be November 12, 2023.
Consideration of
the Exchange Offer: eligible holders whose existing notes have been
accepted for the Exchange by the Company, will receive for every
US$ 1 submitted to the Exchange, the accrued interest of the
existing notes until the settlement and issue date and the
following:
■
A sum of money of
approximately US$ 29.4 for repayment of capital of such existing
notes presented to the Exchange, in cash, in United States Dollars,
which will be equivalent to US$ 0.95741755 for each US$ 1 of
existing notes presented to the Exchange; and
■
The remaining
amount until completing 1 US$ for each 1 US$ of existing notes
presented to the Exchange, in notes Series XXXI.
Annual Nominal
Fixed Interest Rate: 9.00%.
Amortization: The
capital of the Series XXXI Notes will be amortized in 3 annual
installments (33% of the capital on November 12, 2021, 33% of the
capital on November 12, 2022, 34% of the capital on the maturity
date of Series XXXI).
Interest Payment
Dates: Interest will be paid quarterly for the expired period as of
the issue and settlement date.
Payment Address:
Payment will be made to an account at Argentine Securities
Commission in the Autonomous City of Buenos Aires
●
Series XXXII: Face
Value of Existing Notes presented and accepted for the Exchange:
approximately US$ 34.3.
Nominal Value to be
Issued: approximately US$ 34.3.
Issuance Price:
100% nominal value.
Maturity Date: It
will be November 12, 2022.
Consideration of
the Exchange Offer: the eligible holders whose existing notes have
been accepted for the Exchange by the Company, will receive Series
XXXII Notes for 100% of the capital amount presented for exchange
and accepted by the Company and the accrued interest of the
existing notes until the settlement and issue date.
Early Bird: will
consist of the payment of US$ 0.02 for each US$ 1 of existing notes
delivered and accepted in the Exchange on or before the deadline
date to Access the Early Bird. Said consideration
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
27
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
will be paid in
Pesos on the issue and settlement date according to the exchange
rate published by Communication “A” 3500 of the Central
Bank of Argentina on the business day prior to the expiration date
of the Exchange, which is Ps. 79.3433 for each US$ 1 of Existing
Notes delivered and accepted in the Exchange.
Annual Nominal
Fixed Interest Rate: 9.00%.
Amortization: The
capital of the Series XXXII Notes will be amortized in one
installment on the maturity date.
Interest Payment
Dates: Interest will be paid quarterly for the expired period from
the issuance and settlement date.
Payment Address:
Payment will be made to an account at Argentine Securities
Commission in New York, United States, for which purpose the
Company will make US dollars available to an account reported by
the Argentine Securities Commission in said
jurisdiction.
Cancellation Cresud’s Series XXIV Notes
In
relation to the Exchange Offer ended on November 10, 2020, and as a
result of the settlement of said Exchange, on November 16, 2020,
the Company made a partial cancellation for a V.N. of US$ 65 of
Negotiable Obligations Class XXIV. After the cancellation the V.N.
in circulation was US$ 8, which was paid in full on November 16,
2020.
Exchange of IRSA’s debentures
On
November 12, 2020, the company carried out an exchange operation of
its Series I Notes, for a nominal value of US$ 181.5.
Nominal
Value of Existing Notes presented and accepted for the Exchange
(for both Series): approximately US$ 178.5 which represents 98.31%
acceptance, through the participation of 6,571 orders.
●
Series VIII: Face
Value of Existing Notes presented and accepted for the Exchange:
approximately US$ 104.3.
-
Nominal Value to be
Issued: approximately US$ 31.7.
-
Issuance Price:
100% nominal value.
-
Maturity Date: It
will be November 12, 2023.
-
Consideration of
the Exchange Offer: eligible holders whose existing notes have been
accepted for the Exchange by the Company, will receive for every
US$ 1 submitted to the Exchange, the accrued interest of the
existing notes until the settlement and issue date and the
following:
■
A sum of money of
approximately US$ 72,6 for repayment of capital of such existing
notes presented to the Exchange, in cash, in United States Dollars,
which will be equivalent to US$ 0.69622593 for each US$ 1 of
existing notes presented to the Exchange; and
■
The remaining
amount until completing 1 US$ for each 1 US$ of existing notes
presented to the Exchange, in notes Series VIII.
-
Annual Nominal
Fixed Interest Rate: 10.00%.
-
Amortization: The
capital of the Series VIII Notes will be amortized in 3 annual
installments (33% of the capital on November 12, 2021, 33% of the
capital on November 12, 2022, 34% of the capital on the maturity
date of Series VIII).
-
Interest Payment
Dates: Interest will be paid quarterly for the expired period as of
the issue and settlement date.
-
Payment Address:
Payment will be made to an account at Argentine Securities
Commission in the Autonomous City of Buenos Aire
●
Series IX: Face
Value of Existing Notes presented and accepted for the Exchange:
approximately US$ 74.2.
-
Nominal Value to be
Issued (together with the Face Value to be issued as a result of
the cash subscription): approximately US$ 80.7 .
-
Issuance Price:
100% nominal value.
-
Maturity Date: It
will be March 1, 2023.
-
Consideration of
the Exchange Offer: the eligible holders whose existing notes have
been accepted for the Exchange by the Company, will receive Series
IX Notes for 100% of the capital amount presented for exchange and
accepted by the Company and the accrued interest of the existing
notes until the settlement and issue date.
-
Early Bird: will
consist of the payment of US$ 0.02 for each US$ 1 of existing notes
delivered and accepted in the Exchange on or before the deadline
date to Access the Early Bird. Said consideration will be paid in
Pesos on the issue and settlement date according to the exchange
rate published by
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
28
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
-
Communication
“A” 3500 of the Central Bank of Argentina on the
business day prior to the expiration date of the Exchange, which is
Ps. 79.3433 for each US$ 1 of Existing Notes delivered and accepted
in the Exchange.
-
Annual Nominal
Fixed Interest Rate: 10.00%.
-
Amortization: The
capital of the Series IX Notes will be amortized in one installment
on the maturity date.
-
Interest Payment
Dates: Interest will be paid quarterly for the expired period from
the issuance and settlement date.
-
Payment Address:
Payment will be made to an account at Argentine Securities
Commission in New York, United States, for which purpose the
Company will make US dollars available to an account reported by
the Argentine Securities Commission in said
jurisdiction.
●
Modifications to
the Terms of the Existing Notes: Considering that consent has been
obtained for an amount greater than 90% of the existing notes
capital, the Company has modified and replaced the following
essential and non-essential terms and conditions of the existing
notes.
-
By virtue of the
implementation of the Proposed Non-Essential Modifications, the
entire section of "Certain Commitments" and "Events of Default" is
eliminated from the terms and conditions set forth in the
prospectus supplements dated May 2, 2019 and dated July 25, 2019
corresponding to the existing notes.
-
Additionally,
pursuant to the implementation of the Proposed Essential
Modifications, the following terms and conditions of the Existing
Notes are modified and replaced:
■
Expiration Date: It
will be March 1, 2023.
■
Interest Payment
Dates: will be the same dates reported for Class IX in the Notice
of Results.
-
It is clarified
that the terms and conditions of the Series I Notes not modified by
the Proposed Essential Modifications and the Proposed Non-Essential
Modifications will maintain their full validity.
-
The implementation
of the Proposed Essential Modifications and Proposed Non-Essential
Modifications were approved by the Board of Directors, on November
11, 2020.
●
Repayment Series I:
In relation to the Exchange Offer ended on November 10, 2020, on
November 12, 2020, IRSA made a partial repayment of Series I Notes
for a Nominal Value of US$ 178,5, after the partial repayment the
Nominal Value under circulation was US$ 3,1.
Loan to related party
On
October 23, 2020, Dolphin Netherlands has granted a loan to Yad
Leviim Ltd. in a principal amount of US$ 16,250,000 at a rate
interest of 5% per year. Then, on December 17, Dolphin Netherlands
assigned the receivable to Tyrus S.A., partially canceling the
current loan agreement between both companies. Yad Leviim Ltd. is a
company controlling by Eduardo Elsztain.
21.
Taxation
The
details of the Group’s income tax, is as
follows:
|
|
12.31.20
|
12.31.19
|
|
Current
income tax
|
(379)
|
(643)
|
|
Deferred
income tax
|
(3,710)
|
(2,883)
|
|
Minimum
Presumed Income Tax
|
-
|
(181)
|
|
Income tax from continuing operations
|
(4,089)
|
(3,707)
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
29
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Below
is a reconciliation between income tax recognized and the amount
which would result from applying the prevailing tax rate on profit
before income tax for the six and six-month periods ended December
31, 2020 and 2019:
|
|
12.31.20
|
12.31.19
|
|
Tax
calculated at the tax rates applicable to profits in the respective
countries
|
(2,400)
|
1,435
|
|
Permanent
differences:
|
|
|
|
Share
of (loss) / profit of joint ventures and associates
|
166
|
(528)
|
|
Tax
rate differential
|
2,235
|
1,095
|
|
Provision
for unrecoverability of tax loss carry-forwards / Unrecognized tax
loss carry-forwards
|
(2,495)
|
(3,790)
|
|
Changes
in fair value of financial instruments
|
-
|
(1)
|
|
Non-taxable
profit, non-deductible expenses and others
|
(39)
|
(294)
|
|
Tax
inflation adjustment
|
(4,654)
|
(5,006)
|
|
Fiscal
transparency
|
(58)
|
117
|
|
Inflation
adjustment permanent difference
|
3,156
|
3,265
|
|
Income tax from continuing operations
|
(4,089)
|
(3,707)
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
30
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
gross movement in the deferred income tax account is as
follows:
|
|
12.31.20
|
06.30.20
|
|
Beginning of period / year
|
(58,177)
|
(67,619)
|
|
Deconsolidation
|
12,522
|
17,111
|
|
Currency
translation adjustment
|
1,260
|
2,287
|
|
Revaluation
surplus
|
(308)
|
244
|
|
Reserve
for changes of non-controlling interest
|
(31)
|
92
|
|
Business
combination and other assets held for sale
|
-
|
(1,427)
|
|
Charged
to the Statement of Income
|
(3,488)
|
(8,865)
|
|
End of the period / year
|
(48,222)
|
(58,177)
|
|
|
|
|
|
Deferred
income tax assets
|
1,399
|
1,111
|
|
Deferred
income tax liabilities
|
(49,621)
|
(59,288)
|
|
Deferred income tax liabilities, net
|
(48,222)
|
(58,177)
|
22.
Revenues
|
|
12.31.20
|
12.31.19
|
|
Beef
|
3,886
|
4,270
|
|
Crops
|
5,813
|
7,201
|
|
Sugarcane
|
2,818
|
2,968
|
|
Cattle
|
641
|
672
|
|
Supplies
|
857
|
821
|
|
Consignment
|
348
|
264
|
|
Advertising
and brokerage fees
|
506
|
429
|
|
Agricultural
rental and other services
|
136
|
105
|
|
Other
|
219
|
131
|
|
Income from sales and services from agricultural
business
|
15,224
|
16,861
|
|
Trading
properties and developments
|
645
|
623
|
|
Rental
and services
|
4,180
|
8,550
|
|
Hotel
operations, tourism services and others
|
119
|
1,726
|
|
Income from sales and services from urban properties and investment
business
|
4,944
|
10,899
|
|
Total revenues
|
20,168
|
27,760
|
23.
Costs
|
|
12.31.20
|
12.31.19
|
|
Other
operative costs
|
15
|
16
|
|
Cost of property operations
|
15
|
16
|
|
Beef
|
3,029
|
3,420
|
|
Crops
|
5,161
|
5,920
|
|
Sugarcane
|
2,201
|
2,776
|
|
Cattle
|
881
|
891
|
|
Supplies
|
682
|
687
|
|
Consignment
|
405
|
123
|
|
Advertising
and brokerage fees
|
360
|
253
|
|
Agricultural
rental and other services
|
147
|
303
|
|
Cost of sales and services from agricultural business
|
12,866
|
14,373
|
|
Trading
properties and developments
|
616
|
371
|
|
Rental
and services
|
1,680
|
2,700
|
|
Hotel
operations, tourism services and others
|
332
|
961
|
|
Cost of sales and services from sales and services from urban
properties and investment business
|
2,628
|
4,032
|
|
Total costs
|
15,509
|
18,421
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
31
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
24.
Expenses
by nature
The
Group discloses expenses in the statements of income by function as
part of the line items “Costs”, “General and
administrative expenses” and “Selling expenses”.
The following table provides additional disclosures regarding
expenses by nature and their relationship to the function within
the Group.
(i)
Includes Ps. 15 and
Ps. 16 of other agricultural operating costs as of December 31,
2020 and 2019, respectively.
25.
Other
operating results, net
|
|
12.31.20
|
12.31.19
|
|
(Loss)
/ Gain from commodity derivative financial instruments
|
(3,067)
|
145
|
|
Loss
from disposal of subsidiaries and associates
|
-
|
(8)
|
|
Donations
|
(63)
|
(72)
|
|
Lawsuits
and other contingencies
|
(49)
|
(91)
|
|
Interest
earned on operating assets
|
1,426
|
428
|
|
Others
|
(128)
|
165
|
|
Total other operating results, net
|
(1,881)
|
567
|
26.
Financial
results, net
|
|
12.31.20
|
12.31.19
|
|
Financial income
|
|
|
|
Interest
income
|
248
|
175
|
|
Dividends
income
|
20
|
4
|
|
Total financial income
|
268
|
179
|
|
Financial costs
|
|
|
|
Interest
expenses
|
(5,718)
|
(6,010)
|
|
Result
for debt swap
|
(2)
|
(6)
|
|
Other
financial costs
|
(596)
|
(447)
|
|
Total financial costs
|
(6,316)
|
(6,463)
|
|
Capitalized
finance costs
|
256
|
88
|
|
Total finance costs
|
(6,060)
|
(6,375)
|
|
Other financial results:
|
|
|
|
Foreign
exchange, net
|
(167)
|
(10,018)
|
|
Fair
value gains of financial assets and liabilities at fair value
through profit or loss
|
4,284
|
217
|
|
(Loss)
/ Gain from repurchase of Non-Convertible Notes
|
(260)
|
84
|
|
(Loss)
/ Gain from derivative financial instruments (except
commodities)
|
(545)
|
15
|
|
Others
|
(40)
|
-
|
|
Total other financial results
|
3,272
|
(9,702)
|
|
Inflation
adjustment
|
1,731
|
222
|
|
Total financial results, net
|
(789)
|
(15,676)
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
32
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
27.
Related
party transactions
The
following is a summary of the balances with related parties as of
December 31, 2020 and June 30, 2020:
|
Item
|
12.31.20
|
06.30.20
|
|
Trade
and other receivables
|
2,126
|
1,258
|
|
Investments
in financial assets
|
237
|
322
|
|
Trade
and other payables
|
(907)
|
(391)
|
|
Borrowings
|
(266)
|
(250)
|
|
Total
|
1,190
|
939
|
|
Related
party
|
12.31.20
|
06.30.20
|
Description
of transaction
|
|
Condor
|
237
|
322
|
Public companies'
securities
|
|
|
237
|
-
|
Loans
granted
|
|
|
26
|
-
|
Dividends
receivable
|
|
New Lipstick
LLC
|
-
|
19
|
Reimbursement of
expenses receivable
|
|
|
-
|
(92)
|
Loans
payable
|
|
Other associates
and joint ventures
|
11
|
101
|
Leases and/or
rights of use receivable
|
|
|
204
|
243
|
Dividends
receivables
|
|
|
-
|
10
|
Management fees
receivable
|
|
|
(23)
|
-
|
Other
liabilities
|
|
|
(204)
|
(32)
|
Loans
payable
|
|
|
9
|
146
|
Reimbursement of
expenses receivable
|
|
|
(79)
|
(1)
|
Reimbursement of
expenses payable
|
|
Total
associates and joint ventures
|
418
|
716
|
|
|
CAMSA and its
subsidiaries
|
-
|
1
|
Reimbursement of
expenses receivable
|
|
|
-
|
(228)
|
Management fees
payable
|
|
Yad Levim
LTD
|
1,381
|
-
|
Loans
granted
|
|
IRSA Real Estate
Strategies LP
|
141
|
139
|
Reimbursement of
expenses
|
|
PBS Real Estate
Holdings S.R.L
|
-
|
566
|
Reimbursement of
expenses
|
|
BHN
Vida
|
(62)
|
(62)
|
Non-convertible
notes
|
|
Otras partes
relacionadas (i)
|
31
|
-
|
Leases and/or
rights of use payable
|
|
|
(241)
|
-
|
Leases and/or
rights of use receivable
|
|
|
-
|
(64)
|
Loans
payable
|
|
|
73
|
-
|
Loans
granted
|
|
|
-
|
21
|
Reimbursement of
expenses receivable
|
|
|
(88)
|
-
|
Legal services
payable
|
|
Total
other related parties
|
1,235
|
373
|
|
|
IFISA
|
2
|
7
|
Financial
operations receivable
|
|
Total
Parent Company
|
2
|
7
|
|
|
Directors and
Senior Management
|
(476)
|
(162)
|
Fees for services
received
|
|
|
11
|
5
|
Advances
receivable
|
|
Total
Directors and Senior Management
|
(465)
|
(157)
|
|
|
Total
|
1,190
|
939
|
|
The
following is a summary of the results with related parties for the
six and six-month periods ended December 31, 2020 and
2019:
|
Related party
|
12.31.20
|
12.31.19
|
Description of transaction
|
|
BACS
|
32
|
35
|
Leases
and/or rights of use
|
|
|
(77)
|
-
|
Financial
operations
|
|
Other
associates and joint ventures
|
(3)
|
18
|
Leases
and/or rights of use
|
|
|
(17)
|
18
|
Corporate
services
|
|
|
-
|
(1)
|
Financial
operations
|
|
Total associates and joint ventures
|
(65)
|
70
|
|
|
Other
related parties (i)
|
(6)
|
3
|
Leases
and/or rights of use
|
|
|
12
|
(23)
|
Fees
and remunerations
|
|
|
(17)
|
-
|
Corporate
services
|
|
|
470
|
3
|
Legal
services
|
|
|
(28)
|
(159)
|
Financial
operations
|
|
|
22
|
-
|
Income
from agricultural sales and services
|
|
|
-
|
(18)
|
Donations
|
|
Total other related parties
|
453
|
(194)
|
|
|
IFISA
|
4
|
3
|
Financial
operations
|
|
Total Parent Company
|
4
|
3
|
|
|
Directors
|
(504)
|
-
|
Compensation
of Directors and senior management
|
|
|
(22)
|
(309)
|
Fees
and remunerations
|
|
Senior
Management
|
(12)
|
16
|
Compensation
of Directors and senior management
|
|
Total Directors and Senior Management
|
(538)
|
(293)
|
|
|
Total
|
(146)
|
(414)
|
|
(i)
Includes
Estudio Zang, Bergel & Viñes, Fundación IRSA, Ramat
Hanassi, Austral Gold Argentina S.A., Isaac Elsztain e Hijos,
Hamonet S.A., LRSA, New Lipstick, BHN Vida S.A, TGLT S.A. and
BHSA.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
33
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
following is a summary of the transactions with related parties for
the six and six-month periods ended December 31, 2020 and
2019:
|
Related party
|
12.31.20
|
12.31.19
|
Description of transaction
|
|
Agrofy
Global
|
-
|
264
|
Irrevocable
contributions
|
|
Quality
|
19
|
35
|
Irrevocable
contributions
|
|
Manibil
|
-
|
105
|
Irrevocable
contributions
|
|
Others
|
-
|
105
|
Irrevocable
contributions
|
|
Total contributions
|
19
|
509
|
|
|
Agro-Uranga
S.A.
|
26
|
31
|
Dividends
received
|
|
Uranga
trading
|
11
|
-
|
Dividends
received
|
|
Condor
|
-
|
35
|
Dividends
received
|
|
Emco
|
-
|
20
|
Dividends
received
|
|
Nuevo
Puerto Santa Fe S.A.
|
-
|
34
|
Dividends
received
|
|
Total dividends received
|
37
|
120
|
|
|
Puerto
Retiro
|
8
|
-
|
Capitalized
loan
|
|
TGLT
S.A.
|
-
|
4,230
|
Buy
and change of shares
|
|
Total other transactions
|
8
|
4,230
|
|
28.
CNV
General Resolution N° 622
As
required by Section 1°, Chapter III, Title IV of CNV General
Resolution N° 622, below there is a detail of the notes to
this Financial Statements that disclose the information required by
the Resolution in Exhibits.
|
Exhibit A - Property, plant and equipment
|
|
Note 8 - Investment properties
|
|
|
|
Note 9 - Property, plant and equipment
|
|
Exhibit B - Intangible assets
|
|
Note 11 - Intangible assets
|
|
Exhibit C - Equity investments
|
|
Note 7 - Investments in associates and joint ventures
|
|
Exhibit D - Other investments
|
|
Note 15 - Financial instruments by category
|
|
Exhibit E - Provisions
|
|
Note 19 - Provisions
|
|
Exhibit F - Cost of sales and services provided
|
|
Note 29 - Cost of sales and services provided
|
|
Exhibit G - Foreign currency assets and liabilities
|
|
Note 30 - Foreign currency assets and liabilities
|
29.
Cost
of goods sold and services provided
|
Description
|
Cost of sales and services from agricultural business
(i)
|
Cost of sales and services from sales and services from urban
properties and investment business (ii)
|
Total as of 12.31.20
|
Total as of 12.31.19
|
|
Inventories at the beginning of the period / year
|
7,844
|
14,209
|
22,053
|
20,591
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
1,350
|
-
|
1,350
|
899
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
258
|
-
|
258
|
575
|
|
Additions
|
4
|
-
|
4
|
-
|
|
Capitalized
finance costs
|
-
|
-
|
-
|
87
|
|
Currency
translation adjustment
|
(325)
|
(4,271)
|
(4,596)
|
5,230
|
|
Transfers
|
90
|
-
|
90
|
-
|
|
Harvest
|
3,633
|
-
|
3,633
|
5,015
|
|
Acquisitions
and classifications
|
5,476
|
23,487
|
28,963
|
38,268
|
|
Consume
|
(1,588)
|
-
|
(1,588)
|
(1,680)
|
|
Disposals
due to sales
|
-
|
(938)
|
(938)
|
(3,348)
|
|
Deconsolidation
|
-
|
(3,760)
|
(3,760)
|
11,969
|
|
Expenses
incurred
|
2,118
|
-
|
2,118
|
1,905
|
|
Inventories at the end of the period / year
|
(5,994)
|
(1,597)
|
(7,591)
|
(17,253)
|
|
Cost as of 12.31.20
|
12,866
|
27,130
|
39,996
|
-
|
|
Cost as of 12.31.19
|
14,373
|
47,885
|
-
|
62,258
|
(i)
Includes biological
assets (see Note 13).
(ii)
Includes trading
properties (see Note 10).
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
34
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
30.
Foreign
currency assets and liabilities
Book
amounts of foreign currency assets and liabilities are as
follows:
(1)
Exchange
rates as of December 31, 2020 and June 30, 2020, respectively
according to Banco Nación Argentina.
(2)
Considering
foreign currencies those that differ from each Group’s
subsidiaries functional currency at each
period/year-end.
(3)
The
Company uses derivative instruments as a complement in order to
reduce its exposure to exchange rate movements (Note
15).
31.
Groups
of assets and liabilities held for sale
The
Group has certain assets and liabilities classified as held for
sale. The following table presents the main ones:
|
|
12.31.20
|
06.30.20
|
|
Property,
plant and equipment
|
797
|
44,006
|
|
Intangible
assets
|
12
|
1,642
|
|
Investments
in associates
|
-
|
268
|
|
Deferred
income tax assets
|
-
|
976
|
|
Income
tax credit
|
-
|
4
|
|
Inventories
|
336
|
425
|
|
Trade
and other receivables
|
915
|
3,141
|
|
Cash
and cash equivalents
|
7
|
2,051
|
|
Total group of assets held for sale
|
2,067
|
52,513
|
|
Trade
and other payables
|
524
|
12,455
|
|
Payroll
and social security liabilities
|
110
|
597
|
|
Employee
benefits
|
-
|
463
|
|
Deferred
and current income tax liabilities
|
-
|
2,374
|
|
Provisions
|
9
|
14
|
|
Borrowings
|
914
|
12,440
|
|
Total group of liabilities held for sale
|
1,557
|
28,343
|
|
Total net financial assets held for sale
|
510
|
24,170
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
35
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
32.
Results
from discontinued operations
The
results of the discontinued operations include the IDBD / DIC
operations which were deconsolidated in the current period (see
Note 4) and the results of the comparative periods have been
reclassified.
|
|
12.31.20
|
12.31.19
|
|
Revenues
|
30,197
|
63,420
|
|
Costs
|
(24,502)
|
(43,853)
|
|
Gross profit
|
5,695
|
19,567
|
|
Net
gain from fair value adjustment of investment
properties
|
(22)
|
(223)
|
|
General
and administrative expenses
|
(3,476)
|
(5,443)
|
|
Selling
expenses
|
(3,311)
|
(7,658)
|
|
Impairment
of associate
|
-
|
(2,207)
|
|
Other
operating results, net
|
(2,078)
|
19,660
|
|
(Loss) / Profit from operations
|
(3,192)
|
23,696
|
|
Share
of profit / (loss) of joint ventures and associates
|
574
|
(608)
|
|
(Loss) / Profit from operations before financing and
taxation
|
(2,618)
|
23,088
|
|
Financial
income
|
419
|
680
|
|
Finance
costs
|
(5,506)
|
(12,016)
|
|
Other
financial results
|
364
|
(1,015)
|
|
Financial results, net
|
(4,723)
|
(12,351)
|
|
(Loss) / Profit before income tax
|
(7,341)
|
10,737
|
|
Income
tax
|
221
|
(545)
|
|
(Loss) / Profit for the period from discontinued
operations
|
(7,120)
|
10,192
|
|
|
|
|
|
(Loss) / Profit for the period from discontinued operations
attributable to:
|
|
|
|
Equity
holders of the parent
|
(3,512)
|
655
|
|
Non-controlling
interest
|
(3,608)
|
9,537
|
|
|
|
|
|
(Loss) / Profit per share from discontinued operations attributable
to equity holders of the parent:
|
|
|
|
Basic
|
(7.032)
|
2.373
|
|
Diluted
|
(7.032)
|
2.272
|
33.
Other
relevant events of the period
Economic context in which the Group operates
The
Group operates in a complex context both due to macroeconomic
conditions, whose main variables have recently experienced strong
volatility, as well as regulatory, social, and political
conditions, both nationally and internationally.
The
results from operations may be affected by fluctuations in the
inflation index and the argentine peso exchange rate against other
currencies, mainly the dollar, variations in interest rates which
have an impact on the cost of capital, changes in government
policies, capital control and other political or economic
developments both locally and internationally.
In
December 2019, a new strain of coronavirus (SARS-COV-2), which
caused severe acute respiratory syndrome (COVID-19) appeared in
Wuhan, China. On March 11, 2020, the World Health Organization
declared COVID-19 a pandemic. In response, countries have taken
extraordinary measures to contain the spread of the virus,
including imposing travel restrictions and closing borders, closing
businesses deemed non-essential, instructing residents to practice
social distancing, implementing quarantines, among other measures.
The ongoing pandemic and these extraordinary government actions are
affecting global economic activity, resulting in significant
volatility in global financial markets.
On
March 3, 2020, the first case of COVID-19 was registered in the
country and until February 28, 2021, more than 2,100,000 cases of
infections had been confirmed in Argentina, by virtue of which the
National Government implemented a series of health measures of
social, preventive and mandatory isolation at the national level
that began on March 19, 2020 and extended several times, most
recently until November 8, 2020 inclusive in the Metropolitan Area
of Buenos Aires although it has been extended in some cities in the
interior of the country. Among these measures, that affected the
local economy, the following stand out: the extension of the public
emergency in health matters, the total closure of borders, the
suspension of international and cabotage flights, the suspension of
medium and long-distance land transport, the suspension of artistic
and sports shows, closure of businesses not considered essential,
including shopping malls and hotels.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
36
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
This
series of measures affected a large part of Argentine companies,
which experienced a drop in their income and inconveniences in the
payment chain. In this context, the Argentine government announced
different measures aimed at alleviating the financial crisis of the
companies affected by the COVID-19 pandemic. Likewise, it should be
noted that, to the stagnation of the Argentine economy, a context
of international crisis is added because of the COVID-19 pandemic.
In this scenario, a strong contraction of the Argentine economy was
evidenced.
Additionally, the
government is challenged to achieve a successful debt renegotiation
with the IMF. In the event that Argentina achieves a favourable
result and agrees to restructure its debt with the IMF, this could
have a positive impact on the Argentine economy in the medium and
long term.
At the
local environment, the following circumstances are
displayed:
●
In December 2020,
the monthly economic activity estimator (EMAE) reported by the
National Institute of Statistics and Censuses (“INDEC”)
registered a contraction of 2.2% in the year-on-year comparison,
and an increase of 0,9% in relation to November. In 2020, the EMAE
accumulated a fall of 10.0%.
●
The annual
inflation reached 36.1% in 2020. The survey on market expectations
prepared by the Central Bank in December 2020, called the Market
Expectations Survey (“REM” in Spanish), estimates a
retail inflation of 49.8% for 2021. The analysts who participate in
the REM foresee that in 2021 economic activity will rebound in
activity, reaching an economic growth of 5.5%.
●
In the period from
December 2019 to December 2020, the argentine peso depreciated
40.5% against the US dollar according to the wholesale average
exchange rate of Argentine Nation Bank. Given the exchange
restrictions in force since August 2019, as of December 31, 2020
there is an exchange gap of approximately 70% between the official
price of the dollar and its price in parallel markets, which
impacts the level of activity in the economy and affects the level
of reserves of the Central Bank of the Argentine Republic.
Additionally, these exchange restrictions, or those that may be
dictated in the future, could affect the Group's ability to access
the Single Free Exchange Market (MULC in Spanish) to acquire the
foreign exchange necessary to meet its financial
obligations.
On
February 25, 2021, the Central Bank of the Argentine Republic
published Communication “A” 7230 which establishes that
the provisions of point 7 of communication “A” 7106,
published on September 25, 2020, will be applicable to those who
register financial debts with capital maturities in foreign
currency scheduled between 04.01.2021 and 12.31.2021, for which
they must submit a refinancing plan to the BCRA based on the
following criteria: (a) that the amount net by which the exchange
market will be accessed in the original terms will not exceed 40%
of the amount of capital maturing in the period indicated above,
and (b) that the rest of the capital is, at least, refinanced with
a new external debt with an average life of 2 years, provided that
the new debt is settled in the exchange market. It is worth
mentioning that for scheduled maturities between 04.01.2021 and
04.15.2021, the refinancing plan must be submitted prior to
03.15.2021; and the submission deadline for the remaining
maturities -between 04/16/2021 and 12/31/2021- must be presented
with a term of at least 30 calendar days before the maturity of the
capital to be refinanced. It should be noted that the financial
debt already refinanced under the conditions of Communication
“A” 7106, may access the exchange market to be paid in
its entirety.
COVID-19 PANDEMIC
As
described in the note on the economic context in which the Group
operates, the COVID-19 pandemic is adversely impacting both the
global economy and the Argentine economy and the Group's
business.
The
current estimated impacts of the COVID-19 pandemic on the Company
as of the date of these financial statements are set out
below:
●
The agricultural
business of Cresud and its subsidiaries in Brazil, Paraguay and
Bolivia continued to operate relatively normally; since the
agricultural activity has been considered an essential activity in
the countries where the Company operates. In any case, the effect
of Covid-19 could cause changes in demand on a global scale and
affect the prices of commodities in the international and local
markets in the short term.
●
Because of the
social, preventive and obligatory isolation, shopping malls
throughout the country were closed since March 20, 2020, leaving
exclusively those premises dedicated to items considered essential
such as pharmacies, supermarkets and banks. The reopening of
shopping malls in the interior of the country began during the
months of May, June, and July. In August 2020, the Arcos District,
an open-air premium outlet in the city of Buenos Aires, was opened
and in October 2020, the Group’s shopping malls opened in the
City and Greater Buenos Aires. From October to the date of these
Financial Statements, all the Group's shopping malls are open
operating with strict protocols that include reduced time to 8
hours and public restrictions, social distancing, among other
safety and hygiene measures. The Entertainment category protocol is
even more rigorous with closed cinemas in most cases. Although we
hope to fully resume the
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
37
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
●
activity in our
shopping malls, the uncertainty of the situation could cause
setbacks in the openings already made.
●
Given the closure
of the shopping malls, the Group has decided to condone the billing
and collection of the Insured Monthly Value until September 30,
2020, with some exceptions and to subsidize the collective
promotion fund during the same period, prioritizing the long-term
relationship with its tenants. Additionally, an increase in the
delinquency rates of some tenants has been detected. As a result of
the above, the impact on shopping malls is a 82.4% decrease in
rental and service income during the first quarter of fiscal year
2021 compared to the same period of last fiscal year, and a 12.6%
increase compared to the immediately preceding
quarter.
●
In relation to the
offices business, although most of the tenants are working in the
home office mode, they are operational with strict safety and
hygiene protocols. To date, we have not evidenced a deterioration
in collections.
●
The Libertador
hotels in the City of Buenos Aires and Llao Llao in the province of
Río Negro have temporarily closed since the mandatory lockdown
was decreed in March 2020, while the Intercontinental Hotel in the
City of Buenos Aires has only worked under a plan of contingency
and emergency. The reopening took place in November and December
under strict protocols and, after closing, a recovery in occupancy
was evidenced, mainly at the Llao Llao hotel. As a result of the
foregoing, the impact on these financial statements is a 93%
decrease in income in the first half of the 2021 fiscal year
compared to the same period of the previous fiscal
year.
Regarding debt
maturities during the second quarter of fiscal year 2021, the Group
had notes maturities within the period contemplated by provision
“A” 7106 of the BCRA: Cresud Class XXIV for a nominal
value of US$ 73.6 due on November 14, 2020 and IRSA Class I for a
nominal value of US$ 181.5 due on November 15, 2020, as well as
other bank debts. Cresud and IRSA presented a proposal to the
Central Bank within the corresponding deadlines and carried out
exchange offers for said Notes. Cresud through the cash
cancellation of US$ 29.2 and the issuance of two new series of
Class XXXI and Class XXXII Negotiable Obligations for a nominal
value of US$ 1.3 and US$ 34.3, respectively. For its part, IRSA did
it through the cash cancellation of US$ 72.6 and the issuance of
two new series of Class VIII and Class IX Negotiable Obligations
for a nominal value of US$ 31.7 and US$ 80.7 (including US$ 6.5 of
new subscription). As of the date of these financial statements,
the Group had financial debt framed in the period contemplated by
Communication “A” 7230 of the BCRA mentioned above for
a nominal value of US$ 59.6 corresponding to the Notes Series XXV
of CRESUD maturing on July 11, 2021, as well as other bank
debts.
Regarding the
financial debt of the Group in the next 12 months:
●
Cresud faces the
maturity of its Class XXVI Negotiable Obligations in January 2021
for a nominal value of Ps. 995 (approximately US$ 11.8) totally
canceled as of the date of release of these financial statements,
Class XXVIII in April 2021 for a nominal value of US$ 27.5, Classes
XXV and XXVII in July 2021 for a nominal value of US$ 59.6 and US$
5.7 respectively and Class XXIX in December 2021 for a nominal
value of US$ 83.0. Likewise, Cresud has bank overdrafts for US$
49.9 and other bank debt for US$ 57.5. As of December 31, it had a
liquidity position of approximately US$ 39.2.
●
The subsidiary IRSA
faces the maturity of its Class III Negotiable Obligations for a
nominal value of Ps. 247.8 (equivalent to US$ 2.9) maturing on
February 21, 2021 totally canceled as of the date of release of
these financial statements, Class IV Negotiable Obligations for a
nominal value of US$ 51.4 maturing on May 21, 2021, Class VI
Negotiable Obligations for a nominal value of Ps. 335 (equivalent
to US$ 4.0) maturing on July 21, 2021, Class VIII Negotiable
Obligations for a nominal value of US$ 10.5 (33% of the capital)
due on November 12, 2021, bank overdrafts for the equivalent of US$
27.6 and other bank debt for US$ 13.7. For its part, IRSA PC has
bank debt maturities for the approximate sum of US$
24.6.
●
It is important to
mention that IRSA has approved with IRSA PC a line of credit for up
to the sum of US$ 180 for 3 years, of which as of December 31, 2020
IRSA used approximately US$ 62.6, leaving the balance available.
Likewise, IRSA PC has a cash position and equivalents (including
current financial investments) as of December 31, 2020 of
approximately US$ 84.9.
The
final extent of the Coronavirus outbreak and its impact on the
country's economy is unknown and difficult to fully predict.
However, although it has produced significant short-term effects,
they are not expected to affect business continuity and the
Company’s ability to meet financial commitments for the next
twelve months.
The
Company is closely monitoring the situation and taking all
necessary measures to preserve human life and the Group's
businesses.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
38
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
34.
Subsequent
events
Acquisition of Bolivian Companies
On
December 20, 2020, our subsidiary BrasilAgro and its subsidiaries
Agrifirma Agro and Imobiliária Engenho de Maracajú signed
a Share Purchase Agreement to acquire 100% of the shares issued by
the following companies based in Bolivia: (i) Agropecuaria Acres
del Sud SA; (ii) Ombú Agropecuaria S.A .; (iii) Yatay
Agropecuaria S.A .; and (iv) Yuchán Agropecuaria S.A., all
indirectly controlled by The Company, for an amount of US$ 30. This
acquisition was approved at a meeting of the BrasilAgro Board of
Directors held on December 22, 2020.
The
acquisition was subject to compliance with certain precedent
conditions, which were fully met on February 4, 2021. Consequently,
on February 8, 2021, BrasilAgro made the full payment of the
acquisition price for a total of R $160 (equivalent to
approximately Ps. 2,624 at the date of the
transaction).
Said
transaction has no impact on the Group's consolidated assets and
liabilities. The Difference in stake will be treated as a change in
non-controlling interest within the equity.
Public offering of shares issued by BrasilAgro
On
January 25, 2021, our subsidiary BrasilAgro announced that the
Board of Directors approved the public offering of primary and
secondary distribution of shares with restricted placement efforts.
In accordance with CVM Instruction 476 (“Restricted
Offer”), with the primary public distribution of 20,000,000
new shares (“Primary Offer”). In addition, the number
of shares initially offered could, at the discretion of the
Company, Autonomy Luxembourg One, as selling shareholder ("Selling
Shareholder") and the coordinators of the offering, by mutual
agreement, approved an increase of up to 27.35 % of the total
shares initially offered, that is, up to 5,470,710 shares held by
the Selling Shareholder, under the same conditions and for the same
price of the shares initially offered, which will be used to meet
any excess demand that may be found when the Price per Share is set
("Secondary Offer" and "Additional Shares", respectively).
BrasilAgro will not receive funds as a result of the Secondary
Offer, as these funds belong entirely to the Selling
Shareholder.
The
Restricted Offer was carried out in Brazil, in an unorganized OTC
market, under the coordination of the BTG Pactual Bank of XP
Investimentos, in the area of the Restricted Offer, and
simultaneously efforts were made to place shares abroad by BTG
Pactual. Capital of the United States.
With
the completion of the Restricted Offer procedures, the 20,000,000
shares offered in the Primary Offer and 2,735,355 shares in the
Secondary Offer were traded, with a price per share set at R$
22.00. The resources received in the Primary Offer represent an
increase of R$ 440 thousand in the Company's capital stock, which
will go from R $699,811 to R$ 1,139,811, divided into 82,104,301
ordinary shares, all registered, registered and without value
nominal.
The
funds will be used to: (i) acquire assets in Bolivia, (ii) acquire
land for exploration and development of agricultural properties,
and (iii) businesses to optimize and leverage the operating
activities of the Company.
Capital Increse - Subscription of shares
On
February 17, 2021, the Company announced the launch of its public
offering of shares for up to 90 million shares (or its equivalent 9
million ADS) and 90,000,000 warrants to subscribe for new common
shares, to registered holders as of February 19, 2021. Each right
corresponding to one share (or ADS) allowed its holder to subscribe
0.1794105273 new ordinary shares and receive free of charge an
option with the right to subscribe 1 additional ordinary share in
the future. The final subscription price for the new shares was Ps.
70.31 or US$ 0.472 and for the new ADS it was US$ 4.72. The new
shares, registered, of Ps. 1 (one peso) of par value each and with
the right to one vote per share gives the right to receive
dividends under the same conditions as the current shares in
circulation.
On
March 5, 2021, having finished the pre emptive rights subscription
period, the Company's shareholders have subscribed the amount of
87,264,898 new additional shares, that is 97% of the shares
offered, and have requested through the accretion right 26,017,220
additional new shares, for which 2,735,102 new shares will be
issued, completing the total issuance of 90,000,000 new shares (or
their equivalent in ADSs) offered. Likewise, 90,000,000 options
will be issued that will entitle the holders through their exercise
to acquire up to 90,000,000 additional new shares.
The
exercise price of the warrants will be US$ 0.566. The warrants may
be exercised quarterly from the 90th day of their issuance on the
17th to the 25th (inclusive) of the months of February, May,
September, and November of each year (provided that dates are
business days in the city of New York and in the Autonomous City of
Buenos Aires) until their expiration 5 years from the date of
issue.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
39
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
As of
the date of issuance of these financial statements, the Company
received all the funds in the amount of US$ 42.5 and issued the new
shares, increasing the capital stock to 591,642,804
million.
Sale of Carnes Pampeanas
On
February 24, 2021, the Company sold 100% of its shares of Sociedad
Anónima Carnes Pampeanas S.A., owner of the meat processing
plant Carnes Pampeanas in the province of La Pampa,
Argentina.
The
price of the operation was agreed at US$ 10, which has already been
paid in full.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
40
REVIEW
REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
To the
Shareholders, President and Directors of
Cresud
Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Legal
address: Carlos Della Paolera 261, 9° floor
Autonomous City of
Buenos Aires
Tax
Registration Number: 30-50930070-0
Introduction
We have
reviewed the accompanying unaudited condensed interim consolidated
financial statements of Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria and its subsidiaries
(“the Company”), which comprise the unaudited condensed
interim consolidated statement of financial position at December
31, 2020, the unaudited condensed interim consolidated statements
of income and other comprehensive income, of changes in
shareholders’ equity and of cash flows for the six and
three-month period then ended, and selected explanatory
notes.
The
balances and other information for the fiscal year ended on June
30, 2020 and its interim periods are an integral part of the
financial statements mentioned above; therefore, they must be
considered in connection with these financial
statements.
Management’s
responsibility
The
Board of Directors of the Company is responsible for the
preparation and presentation of these unaudited condensed interim
consolidated financial statements in accordance with International
Financial Reporting Standards, adopted by the Argentine Federation
of Professional Councils in Economic Sciences (FACPCE) as
professional accounting standards and included by the National
Securities Commission (CNV) in its regulations, as approved by the
International Accounting Standards Board (IASB), and is therefore
responsible for the preparation and presentation of the unaudited
condensed interim consolidated financial statements mentioned in
the first paragraph, in accordance with International Accounting
Standard 34 Interim Financial
Information (IAS 34).
Scope
of our review
Our
review was limited to the application of the procedures established
under International Standards on Review Engagements ISRE 2410
Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity, adopted as a review standard in Argentina by
Technical Pronouncement No. 33 of the FACPCE and approved by the
International Auditing and Assurance Standards Board (IAASB). A
review of interim financial information consists of inquiries of
Company staff responsible for preparing the information included in
the unaudited condensed interim consolidated financial statements
and of analytical and other review procedures. This review is
substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion on the consolidated
statements of financial position and the consolidated statements of
income and other comprehensive income and of cash flows of the
Company.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
41
Conclusion
On the
basis of our review, nothing has come to our attention that causes
us to believe that the unaudited condensed interim consolidated
financial statements mentioned in the first paragraph of this
report have not been prepared, in all material respects, in
accordance with International Accounting Standard 34 Interim financial
reporting.
Report
on compliance with current regulations
In
accordance with current regulations, we report, in connection with
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria, that:
a) the unaudited
condensed interim consolidated financial statements of Cresud
Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria are not transcribed into the Inventory and Balance
Sheet book and, except for the above mentioned situation, as
regards those matters that are within our competence, they are in
compliance with the provisions of the General Companies Law and
pertinent resolutions of the National Securities
Commission;
b) the unaudited
condensed interim separate financial statements of Cresud Sociedad
Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
arise from accounting records carried in all formal aspects in
accordance with legal requirements;
c) we have read the
Business Summary (“Reseña Informativa”), on
which we have no observations to make regarding matters that are
within our competence;
d) at December 31,
2020 the debt of Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria accrued in favor of the
Argentine Integrated Social Security System, as shown by the
Company’s accounting records, amounted to $ 26,780,414,
which is not due at that date.
Autonomous City of
Buenos Aires, March 11, 2021
|
PRICE WATERHOUSE & CO. S.R.L.
(Partner)
|
|
|
C.P.C.E.C.A.B.A. V° 1 F° 17
|
|
|
Walter ZablockyPublic Accountant (UNLP)C.P.C.E.C.A.B.A. V. 340 F.
156
|
|
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Unaudited Condensed Interim Separate Financial Statements as of
December 31, 2020 and for the period of six months ending on that
date, presented in comparative form.
Unaudited Condensed Interim Separate Statements of Financial
Position
as of December 31, 2020, and June 30, 2020
(All
amounts in millions of Argentine Pesos, except as otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
|
Note
|
12.31.20
|
06.30.20
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Investment
properties
|
7
|
129
|
129
|
|
Property,
plant and equipment
|
8
|
7,183
|
7,205
|
|
Intangible
assets
|
9
|
240
|
249
|
|
Right
of use assets
|
10
|
1,615
|
904
|
|
Biological
assets
|
11
|
1,931
|
1,717
|
|
Investments
in subsidiaries, associates and joint ventures
|
6
|
60,795
|
57,587
|
|
Income
tax and minimum presumed income tax credit
|
|
38
|
46
|
|
Trade
and other receivables
|
14
|
860
|
979
|
|
Total Non-current assets
|
|
72,791
|
68,816
|
|
Current assets
|
|
|
|
|
Biological
assets
|
11
|
1,941
|
1,318
|
|
Inventories
|
12
|
1,585
|
2,451
|
|
Trade
and other receivables
|
14
|
4,053
|
2,973
|
|
Investment
in financial assets
|
13
|
1,288
|
60
|
|
Derivative
financial instruments
|
13
|
4
|
-
|
|
Cash
and cash equivalents
|
13
|
247
|
6,812
|
|
Total Current assets
|
|
9,118
|
13,614
|
|
TOTAL ASSETS
|
|
81,909
|
82,430
|
|
SHAREHOLDERS’ EQUITY
|
|
|
|
|
Shareholders´
equity (according to corresponding statements)
|
|
28,771
|
27,837
|
|
TOTAL SHAREHOLDERS' EQUITY
|
|
28,771
|
27,837
|
|
LIABILITIES
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Borrowings
|
18
|
16,316
|
24,520
|
|
Deferred
tax liabilities
|
19
|
4,759
|
4,485
|
|
Provisions
|
17
|
8
|
11
|
|
Lease
Liabilities
|
|
447
|
235
|
|
Total Non-current liabilities
|
|
21,530
|
29,251
|
|
Current liabilities
|
|
|
|
|
Trade
and other payables
|
16
|
2,977
|
2,387
|
|
Payroll
and social security liabilities
|
|
212
|
232
|
|
Borrowings
|
18
|
26,019
|
22,155
|
|
Derivative
financial instruments
|
13
|
1,412
|
37
|
|
Provisions
|
17
|
5
|
4
|
|
Lease
Liabilities
|
|
983
|
527
|
|
Total Current liabilities
|
|
31,608
|
25,342
|
|
TOTAL LIABILITIES
|
|
53,138
|
54,593
|
|
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
|
|
81,909
|
82,430
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
|
|
|
|
|
)
|
|
|
|
|
|
Alejandro
G. Elsztain
Vice
President II
acting
as President
|
43
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim
Separate Statements of Income and Other Comprehensive
Income for
six-month and three-month periods ended December 31, 2020 and
2019
(All
amounts in millions of Argentine Pesos, except as otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
|
|
Six Months
|
|
Three Months
|
|
|
|
Note
|
12.31.20
|
12.31.19
|
12.31.20
|
12.31.19
|
|
Revenues
|
20
|
3,869
|
6,039
|
1,229
|
2,634
|
|
Costs
|
21
|
(3,182)
|
(4,750)
|
(1,077)
|
(2,023)
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
|
111
|
(225)
|
231
|
34
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
|
291
|
633
|
(37)
|
15
|
|
Gross profit
|
|
1,089
|
1,697
|
346
|
660
|
|
Net
gain from fair value adjustment of investment
properties
|
|
-
|
16
|
(1)
|
(11)
|
|
General
and administrative expenses
|
22
|
(318)
|
(324)
|
(154)
|
(185)
|
|
Selling
expenses
|
22
|
(616)
|
(1,017)
|
(239)
|
(490)
|
|
Other
operating results, net
|
23
|
(1,300)
|
103
|
(846)
|
(5)
|
|
Management
fees
|
|
-
|
-
|
523
|
-
|
|
(Loss) / Profit from operations
|
|
(1,145)
|
475
|
(371)
|
(31)
|
|
Share
of loss of subsidiaries, associates and joint ventures
|
6
|
1,256
|
84
|
(5,420)
|
(4,226)
|
|
Profit / (Loss) before financing and taxation
|
|
111
|
559
|
(5,791)
|
(4,257)
|
|
Finance
income
|
24
|
203
|
10
|
19
|
5
|
|
Finance
costs
|
24
|
(2,258)
|
(1,921)
|
(1,178)
|
(862)
|
|
Other
financial results
|
24
|
76
|
(4,658)
|
583
|
2,683
|
|
Inflation
Adjustment
|
24
|
630
|
(50)
|
399
|
(53)
|
|
Financial
results, net
|
24
|
(1,349)
|
(6,619)
|
(177)
|
1,773
|
|
Loss before income tax
|
|
(1,238)
|
(6,060)
|
(5,968)
|
(2,484)
|
|
Income
tax
|
19
|
(274)
|
(439)
|
(252)
|
(457)
|
|
Loss for the period
|
|
(1,512)
|
(6,499)
|
(6,220)
|
(2,941)
|
|
|
|
|
|
|
|
|
Other
comprehensive (loss) / income:
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
|
|
|
Currency
translation adjustment from subsidiaries and
associates
|
|
(1,518)
|
(850)
|
911
|
(1,826)
|
|
Participation
in other comprehensive results of subsidiaries and
associates
|
|
232
|
(121)
|
(397)
|
(68)
|
|
Other comprehensive income for the period
|
|
(1,286)
|
(971)
|
514
|
(1,894)
|
|
(Loss) / Income and Other Comprehensive (Loss) / Income for the
period
|
|
(2,798)
|
(7,470)
|
(5,706)
|
(4,835)
|
|
|
|
|
|
|
|
|
Loss per share attributable to equity holders of the parent during
the period:
|
|
|
|
|
|
|
Basic
|
|
(3.027)
|
(13.271)
|
(12.454)
|
(6.006)
|
|
Diluted
|
|
(3.027) (i)
|
(13.271) (i)
|
(12.454) (i)
|
(6.006)(i)
|
(i)
Since
the result of the period showed loss, there is no dilutive effect
of said result.
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
|
|
|
|
|
)
|
|
|
|
|
|
Alejandro
G. Elsztain
Vice
President II
acting
as President
|
44
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Changes in
Shareholders’ Equity
for the six-month period ended December 31, 2020
(All
amounts in millions, except as otherwise indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
|
Share capital
|
Treasury shares
|
Inflation adjustment of share capital and treasury shares
(i)
|
Share premium
|
Additional paid-in capital from treasury shares
|
Legal reserve
|
Special reserve RG 609/12 (ii)
|
Other reserves (iii)
|
Retained earnings
|
Total Shareholders' equity
|
|
Balance as of June 30, 2020
|
499
|
3
|
11,827
|
12,694
|
108
|
447
|
1,782
|
1,062
|
(585)
|
27,837
|
|
Loss
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,512)
|
(1,512)
|
|
Other
comprehensive income for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,286)
|
-
|
(1,286)
|
|
Total comprehensive loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,286)
|
(1,512)
|
(2,798)
|
|
As provided by Ordinary and Extraordinary Shareholders´
Meeting held on October 26, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
-
Constitution of Legal Reserve
|
-
|
-
|
-
|
-
|
-
|
114
|
-
|
-
|
(114)
|
-
|
|
Others
changes in subsidiaries’ equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,767
|
76
|
3,843
|
|
Changes
in non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(111)
|
-
|
(111)
|
|
Balance as of December 31, 2020
|
499
|
3
|
11,827
|
12,694
|
108
|
561
|
1,782
|
3,432
|
(2,135)
|
28,771
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
(i)
Includes Ps. 1 and
Ps. 1 of inflation adjustment of Treasury shares as of December 31,
2020 and June 30, 2020, respectively.
(ii)
Corresponding to General Resolution 609/12 of the National
Securities Commission.
(iii)
Group’s Other reserves at December 31, 2020 are comprised
as
|
|
Cost of treasury shares
|
Changes in non-controlling interest
|
Reserve for currency translation adjustment
|
Other comprehensive income / (loss)
|
Reserve for share-based payments
|
Special reserves
|
Other subsidiary reserves
|
Reserve for the acquisition of securities issued by the
Company
|
Total Other reserves
|
|
Balance as of June 30, 2020
|
(180)
|
(4,131)
|
3,604
|
978
|
592
|
-
|
80
|
119
|
1,062
|
|
Other
comprehensive loss for the period
|
-
|
-
|
(1,518)
|
232
|
-
|
-
|
-
|
-
|
(1,286)
|
|
Total comprehensive income for the period
|
-
|
-
|
(1,518)
|
232
|
-
|
-
|
-
|
-
|
(1,286)
|
|
Acquisition
of treasury stock
|
-
|
(32)
|
3,136
|
735
|
-
|
-
|
(72)
|
-
|
3,767
|
|
Changes
in non-controlling interest
|
-
|
(111)
|
-
|
-
|
-
|
-
|
-
|
-
|
(111)
|
|
Balance as of December 31, 2020
|
(180)
|
(4,274)
|
5,222
|
1,945
|
592
|
-
|
8
|
119
|
3,432
|
|
|
|
|
|
)
|
|
|
|
|
|
Alejandro
G. Elsztain
Vice
President II
acting
as President
|
45
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Changes in
Shareholders’ Equity
for the six-month period ended December 31, 2019
(All
amounts in millions, except as otherwise indicated)
|
|
Share capital
|
Treasury shares
|
Inflation adjustment of share capital and treasury shares
(i)
|
Share premium
|
Additional paid-in capital from treasury shares
|
Legal reserve
|
Special reserve RG 609/12 (ii)
|
Other reserves (iii)
|
Retained earnings
|
Total Shareholders' equity
|
|
Balance as of June 30, 2019
|
486
|
16
|
11,828
|
12,694
|
110
|
445
|
7,067
|
43,001
|
(47,229)
|
28,418
|
|
Adjustments
previous periods (NIIF 16)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(867)
|
(867)
|
|
Adjusted balance as of June 30, 2019
|
486
|
16
|
11,828
|
12,694
|
110
|
445
|
7,067
|
43,001
|
(48,096)
|
27,551
|
|
Loss
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,499)
|
(6,499)
|
|
Other
comprehensive loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(971)
|
-
|
(971)
|
|
Total comprehensive (loss) income for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(971)
|
(6,499)
|
(7,470)
|
|
As provided by Ordinary Shareholders’ Meeting held and
Extraordinary Shareholders’ Meeting held on October 30,
2019:
|
|
|
|
|
|
|
|
|
|
|
|
-
Absorption of losses
|
-
|
-
|
-
|
-
|
-
|
-
|
(5,285)
|
(41,942)
|
47,227
|
-
|
|
-
Treasury shares distribution
|
13
|
(13)
|
-
|
-
|
-
|
-
|
-
|
1,812
|
(1,812)
|
-
|
|
Reserve
for share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3)
|
-
|
(3)
|
|
Changes
in non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(506)
|
-
|
(506)
|
|
Changes
in interest in subsidiaries
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
16
|
16
|
|
Balance as of December 31, 2019
|
499
|
3
|
11,828
|
12,694
|
110
|
445
|
1,782
|
1,391
|
(9,164)
|
19,588
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
(i) Includes Ps. 1
and Ps. 1 of inflation adjustment of Treasury shares as of December
31, 2019 and June 30, 2019, respectively.
(ii)
Corresponding to General Resolution 609/12 of the National
Securities Commission.
(iii) Group’s
Other reserves at December 31, 2019 are comprised as:
|
|
Cost of treasury shares
|
Changes in non-controlling interest
|
Reserve for currency translation adjustment
|
Other comprehensive income / (loss)
|
Reserve for share-based payments
|
Special reserves
|
Other subsidiary reserves
|
Reserve for the acquisition of securities issued by the
Company
|
Total Other reserves
|
|
Balance as of June 30, 2019
|
(1,994)
|
(4,020)
|
5,480
|
888
|
576
|
41,942
|
11
|
118
|
43,001
|
|
Other
comprehensive loss for the period
|
-
|
-
|
(850)
|
(121)
|
-
|
-
|
-
|
-
|
(971)
|
|
Total comprehensive loss for the period
|
-
|
-
|
(850)
|
(121)
|
-
|
-
|
-
|
-
|
(971)
|
|
As provided by Ordinary Shareholders’ Meeting held and
Extraordinary Shareholders’ Meeting held on October 30,
2019:
|
|
|
|
|
|
|
|
|
|
|
-
Absorption of losses
|
-
|
-
|
-
|
-
|
-
|
(41,942)
|
-
|
-
|
(41,942)
|
|
-
Treasury shares distribution
|
1,812
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,812
|
|
Reserve
for share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
(3)
|
-
|
(3)
|
|
Changes
in non-controlling interest
|
-
|
(506)
|
-
|
-
|
-
|
-
|
-
|
-
|
(506)
|
|
Balance as of December 31, 2019
|
(182)
|
(4,526)
|
4,630
|
767
|
576
|
-
|
8
|
118
|
1,391
|
|
|
|
|
|
)
|
|
|
|
|
|
Alejandro
G. Elsztain
Vice
President II
acting
as President
|
46
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Cash
Flows
for the six-month period ended December 31, 2020 and
2019
(All
amounts in millions of Argentine Pesos, except as otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
cnwjkvnwjv
|
Note
|
12.31.20
|
12.31.19
|
|
Operating activities:
|
|
|
|
|
Cash
(used in) / generated from operations
|
15
|
(1,628)
|
1,935
|
|
Net cash (used in) / generated from operating
activities
|
|
(1,628)
|
1,935
|
|
Investing activities:
|
|
|
|
|
Capital
contribution to subsidiaries, associates and joint
ventures
|
6
|
(85)
|
(227)
|
|
Acquisition
of property, plant and equipment
|
8
|
(63)
|
(181)
|
|
Proceeds
from sale of property, plant and equipment
|
|
6
|
5
|
|
Acquisition
of Intangible assets
|
9
|
(1)
|
(5)
|
|
Acquisition
of investment in financial instruments
|
|
(6,596)
|
(414)
|
|
Proceeds
from disposals of investment in financial assets
|
|
6,056
|
455
|
|
Advance
payments
|
|
(21)
|
(27)
|
|
Dividends
received
|
|
520
|
280
|
|
Loans
granted to subsidiaries, associates and joint ventures
|
|
(90)
|
(560)
|
|
Net cash used in investing activities
|
|
(274)
|
(674)
|
|
Financing activities:
|
|
|
|
|
Repurchase
of non-convertible notes
|
|
-
|
(688)
|
|
Borrowings
and issue ON
|
|
2,997
|
2,564
|
|
Payment
of borrowings and ON
|
|
(5,520)
|
(490)
|
|
Payment
of short-term loans, net
|
|
(928)
|
(1,774)
|
|
(Payments)
/ Proceeds from derivative financial instruments
|
|
(309)
|
64
|
|
Interest
paid
|
|
(1,451)
|
(814)
|
|
Net cash used in financing activities
|
|
(5,211)
|
(1,138)
|
|
Net (decrease) / increase in cash and cash equivalents
|
|
(7,113)
|
123
|
|
Cash
and cash equivalents at beginning of the period
|
|
6,812
|
174
|
|
Result
from exposure to inflation on cash and cash
equivalents
|
|
10
|
4
|
|
Currency
translation adjustment on cash and cash equivalents
|
|
538
|
118
|
|
Cash and cash equivalents at the end of the period
|
|
247
|
419
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
|
|
|
|
|
)
|
|
|
|
|
|
Alejandro
G. Elsztain
Vice
President II
acting
as President
|
47
Cresud
Sociedad Anónima,
Comercial,
Inmobiliaria, Financiera y Agropecuaria
1.
General
information
Cresud
Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria (“Cresud” or the “Company”)
was founded in 1936 as a subsidiary of Credit Foncier, a Belgian
company primarily engaged in providing rural and urban loans in
Argentina and administering real estate holdings foreclosed by
Credit Foncier. Credit Foncier was liquidated in 1959, and as part
of such liquidation, the shares of Cresud were distributed to
Credit Foncier’s shareholders. From the 1960s through the end
of the 1970s, the business of Cresud shifted exclusively to
agricultural activities.
Cresud
is a company organized and domiciled in the Republic of Argentina.
The address of its registered office is Moreno 877, 23rd Floor,
Buenos Aires, Argentina.
These
Unaudited Condensed Interim Separate Financial Statements have been
approved for issue by the Board of Directors on March 11,
2021.
2.
Basis
of preparation of the Unaudited Condensed Interim Separate
Financial Statements
2.1.
Basis
of preparation
The
National Securities Commission (CNV), in Title IV "Periodic
Information Regime" - Chapter III "Rules relating to the
presentation and valuation of financial statements" - Article 1, of
its standards, has established the application of the Technical
Resolution No. 26 (RT 26) of the FACPCE and its amendments, which
adopt FRS, issued by the IASB, for certain companies included in
the public offering regime of Law No. 26,831, either because of its
stock or its non-convertible notes, or that have requested
authorization to be included in the aforementioned
regime.
For the
preparation of these solo financial statements, the Company has
used the option provided in IAS 34, and has prepared them in
condensed form. Therefore, these financial statements do not
include all the information required in a complete set of annual
financial statements and, consequently, their reading is
recommended together with the annual financial statements as of
June 30, 2020.
In view
of what has been mentioned in the preceding paragraphs, the
management of the Company has prepared these financial statements
in accordance with the accounting principles established by the
CNV, which is based on the application of IFRS, in particular of
IAS 34.
Additionally, the
information required by the CNV indicated in article 1, Chapter
III, Title IV of RG N ° 622/13 has been included. This
information is included in a note to these solo financial
statements.
IAS 29
"Financial Reporting in Hyperinflationary Economies" requires that
the financial statements of an entity whose functional currency is
one of a hyperinflationary economy be expressed in terms of the
current unit of measurement at the closing date of the reporting
period, regardless of whether they are based on the historical cost
method or the current cost method. To do so, in general terms, the
inflation produced from the date of acquisition or from the
revaluation date, as applicable, must be calculated in the
non-monetary items. This requirement also includes the comparative
information of the financial statements.
In
order to conclude on whether an economy is categorized as high
inflation in the terms of IAS 29, the standard details a series of
factors to be considered, including the existence of an accumulated
inflation rate in three years that is Approximate or exceed 100%.
Accumulated inflation in three years is over 100%. It is for this
reason that, in accordance with IAS 29, the Argentine economy must
be considered as high inflation starting July 1, 2018.
In
addition, Law No. 27,468 (published in the Official Gazette on
December 4, 2018), amended Section 10 of Law No. 23,928, as
amended, and established that the derogation of all the laws or
regulations imposing or authorizing price indexation, monetary
restatement, cost variation or any other method for strengthening
debts, taxes, prices or rates of goods, works or services, does not
extend to financial statements, as to which the provisions of
Section 62 in fine of the General Companies Law No. 19,550 (1984
revision), as amended, shall continue to apply. Moreover, the
referred law repealed Decree No. 1269/2002 dated July 16, 2002, as
amended, and delegated to the Argentine Executive Branch the power
to establish, through its controlling agencies, the effective date
of the referred provisions in connection with the financial
statements filed with it. Therefore, under General Resolution
777/2018 (published in the Official Gazette on December 28, 2018)
the Argentine Securities Commission (CNV) ordered that issuers
subject to its supervision shall apply the inflation adjustment to
reflect the financial statements in terms of the current measuring
unit set forth in IAS 29 in their annual, interim and special
financial statements closed on or after December 31,
2018.
Pursuant to IAS 29,
the financial statements of an entity whose functional currency is
that of a high inflationary economy should be reported in terms of
the measuring unit current as of the date of the financial
statements. All the amounts included in the statement of financial
position which are not stated in terms of the measuring unit
current as of the date of the financial statements should be
restated applying the general price index. All items in the
statement of income should be stated in terms of the measuring unit
current as of the date of the financial statements, applying the
changes in the general price index occurred from the date on which
the revenues and expenses were originally recognized in the
financial statements.
Adjustment for
inflation in the initial balances has been calculated considering
the indexes reported by the Argentine Federation of Professional
Councils in Economic Sciences (FACPCE) based on the price indexes
published by the Argentine Institute of Statistics and Census
(INDEC).
The
principal inflation adjustment procedures are the
following:
Monetary
assets and liabilities that are recorded in the current currency as
of the balance sheet’s closing date are not restated because
they are already stated in terms of the currency unit current as of
the date of the financial statements.
Non-monetary
assets and liabilities are recorded at cost as of the balance sheet
date, and equity components are restated applying the relevant
adjustment ratios.
All
items in the statement of income are restated applying the relevant
conversion factors.
The
effect of inflation in the Company’s net monetary position is
included in the statement of income under Financial results, net,
in the item “Income / (loss) from exposure to changes in the
currency’s purchasing power”.
Comparative
figures have been adjusted for inflation following the procedure
explained in the previous paragraphs.
Upon
initially applying inflation adjustment, the equity accounts were
restated as follows:
Capital
was restated as from the date of subscription or the date of the
most recent inflation adjustment for accounting purposes, whichever
is later.
The
resulting amount was included in the “Capital
adjustment” account.
The
conversion difference was restated in real terms (as
applicable).
Other
comprehensive income / (loss) was restated as from each accounting
allocation.
The
other reserves in the statement of income were not restated as of
the initial application date, i.e., June 30, 2016.
2.2.
Accounting
policies
The
accounting policies applied in the preparation of these Unaudited
Condensed Interim Financial Statements are consistent with those
applied in the Annual Financial Statements as of June 30,
2020.
2.3.
Comparative
information
The
balances as of June 30, 2020 and December 31, 2019, which are
disclosed for comparative purposes, arise from the financial
statements at such dates restated in accordance with IAS
29.
2.4.
Use
of estimates
The
preparation of financial statements at a certain date requires the
Management to make estimations and evaluations affecting the amount
of assets and liabilities recorded and contingent assets and
liabilities disclosed at such date, as well as income and expenses
recorded during the period. Future results might differ from the
estimates and evaluations made at the date of preparation of these
Unaudited Condensed Interim Separate Financial
Statements.
In the
preparation of these Unaudited Condensed Interim Separate Financial
Statements, the significant judgments made by Management in
applying the Company’s accounting policies and the main
sources of uncertainty were the same applied by the Company in the
preparation of the Separate Financial Statements for the fiscal
year ended June 30, 2020, described in Note 3 to them.
3.
Seasonal
effects on operations
The
operations of the Company are also subject to seasonal effects. The
harvests and sale of grains (corn, soybean and sunflower) generally
take place between January and September every year. Wheat is
generally harvested between November and February every year.
However, milk production is generally larger during the second
quarter, when conditions are more favorable. As a result, there may
be material fluctuations in the agricultural business results each
quarter.
4.
Acquisitions
and disposals
See
summary of acquisitions and additional disposals of the Company for
the six-month period ended December 31, 2020 in Note 4 to Unaudited
Condensed Interim Consolidated Financial Statements.
5.
Financial
risk management and fair value estimates
5.1.
Financial risk
The
Company’s activities are exposed to several financial risks,
market risk (including exchange rate risk, interest rate risk and
price risk), credit risk, liquidity risk and capital
risk.
The
Unaudited Condensed Interim Separate Financial Statements do not
include all the information and disclosures of the risk management,
so they should be read together with the Annual Separate Financial
Statements as of June 30, 2020. There have been no significant
changes in the risk management or risk management policies applied
by the Company since the fiscal year.
5.2.
Fair
value estimates
Since
June 30, 2020, to the balance sheet date, there have been no
significant changes in business or economic circumstances affecting
the fair value of the Company's financial assets, liabilities or
biological assets (either measured at fair value or amortized
cost). Nor there have been transfers between the several
hierarchies used in estimating the fair value of the
Company’s financial instruments, or reclassifications among
their respective categories.
6.
Information
about principal subsidiaries and associates
The
Company conducts its business through several subsidiaries and
associates.
The
Company indirectly participated, until September 30, 2020, through
Tyrus, in IDB Development Ltd. (“IDBD”) and Discount
Investment Company Ltd (“DIC”). These companies have
certain financial restrictions and agreements in relation to their
financial debt, including their debentures and loans with banks and
financial institutions. These commitments and other restrictions
resulting from the indebtedness of IDBD and DIC (such as the
pledges granted by IDBD over part of its shareholding in DIC) do
not have recursive effects against Cresud, nor has Cresud
guaranteed them with its assets, so the economic risk of Cresud is
limited to the value of said investments.
IDBD's financial condition as of June 25,
2020 had a deficit in shareholders’ equity, ongoing negative cash flows from
continuing operating activities and a low credit rating. IDBD´s cash flow required to meet
its liabilities, including short-term liabilities is based
on the financial support of its
controlling shareholder (Dolphin Netherlands BV) and on the
realization of assets which the realization date is not under
IDBD´s control. As a result of
the above, IDBD had into negotiations with its creditors in order
to restructure its financial debt on more favorable terms. As a
result, the Company recognized an impairment loss of Ps. 2,405 in
its separate financial statements as of June 30, 2020, equivalent
to the net value of its investment in IDBD and DIC as of that
date.
As
of June 30, 2020, the aggregate principal amount of the (i) IDBD
Series 9 Bonds was NIS 901 million (“Series 9”), (ii)
IDBD Series 14 Bonds was NIS 889 million collateralized by DIC
shares owned directly or indirectly by IDBD representing 70% of the
share capital of DIC (“Series 14”), (iii) IDBD Series
15 Bonds was NIS 238 million collateralized by shares of Clal
representing 5% of the share capital of Clal (“Series
15”).
As
no agreement has been reached, on September 17, 2020, the Series 9
trustee submitted to the District Court in Tel-Aviv-Jaffa (the
"Court") a petition to grant an order for the opening of
proceedings for IDBD pursuant to the Insolvency and Economic
Rehabilitation Law, 5778 – 2018 and to instruct the
appointment of a trustee for IDBD pursuant to Section 43 and to
grant the trustee any and all authority over the decision making of
IDBD.
On
September 21, 2020, the Series 14 bond holders approved the
immediate fully payment of the remaining balances of such
series.
On
September 22, 2020, IDBD and Dolphin Netherlands B.V. submitted an
initial response to the Petition, arguing that it was in the best
interest of IDBD and its creditors to exhaust the negotiations
among the controlling shareholder and its creditors during a short
period with the aim to maximize the value of its assets, avoid
costs and additional negative effects.
In
addition, responses by the Series 14 trustee and the Series 15
trustee were filed requesting the enforcement of liens and the
appointment of a receiver as well as an urgent hearing, which was
scheduled for September 24, 2020.
On
September 25, 2020, the Court resolved that IDBD is insolvent and
therefore it resolved to grant all three orders requested and
accordingly, issued an order for the initiation of proceedings and
liquidation of IDBD, and appointed a liquidator to IDBD and interim
receivers over the Pledged DIC and Clal Shares.
Under
IFRS 10 “Consolidated Financial Statements”
(“IFRS 10”), an investor controls an investee if and
only if the investor has all the following: a) power over the
investee; b) exposure, or rights, to variable returns from its
involvement with the investee; and c) the ability to use its power
over the investee to affect the amount of the investor’s
returns. Based on the facts and circumstances outlined above, our
management believes that, as from September 25, 2020, Cresud
through its subsidiary IRSA lost control over IDBD and DIC and
consequently it has derecognized the reserves disclosed in other
comprehensive income associated with said investments, recognizing
a loss of Ps. 2,002 in the six-month period ended December 31,
2020.
Set out
below are the changes in Company’s investment in subsidiaries
and associates for the six-month period ended December 31, 2020 and
for the fiscal year ended June 30, 2020:
|
|
12.31.20
|
06.30.20
|
|
Beginning of the period / year
|
57,587
|
49,101
|
|
Dividends
in shares received from subsidiaries
|
-
|
362
|
|
Capital
contribution
|
85
|
7,546
|
|
Sale
of interest in subsidiaries
|
-
|
(7,225)
|
|
Increase
of interest in subsidiaries, associates and joint
ventures
|
300
|
10
|
|
Share
of profit of subsidiaries and associates
|
1,256
|
11,440
|
|
Foreign
exchange gains
|
(1,518)
|
(1,876)
|
|
Others
changes in subsidiaries’ and associates´
equity
|
3,843
|
(53)
|
|
Adjustments
previous periods (IFRS 16 y IAS 28)
|
-
|
(976)
|
|
Other
comprehensive loss
|
232
|
68
|
|
Share
of changes in subsidiaries’ and associates´
equity
|
(111)
|
4
|
|
Reserve
for share-based payments
|
-
|
(4)
|
|
Dividends
distributed
|
(879)
|
(810)
|
|
End of the period / year
|
60,795
|
57,587
|
(i)
Includes the
effect of changes in subsidiaries as consequence of repurchase of
equity interest.
See
changes in Company’s investment in associates and joint
ventures for the six-month period ended December 31, 2020 in Note 7
to the Unaudited Condensed Interim Consolidated Financial
Statements and for the year ended June 30, 2020 in Note 8 to the
Annual Consolidated Financial Statements.
7.
Investment
properties
Changes
in Company’s investment properties for the six-month period
ended December 31, 2020 and for the fiscal year ended June 30, 2020
were as follows:
|
|
12.31.20
|
06.30.20
|
|
Beginning of the period / year
|
129
|
128
|
|
Changes
in fair value
|
-
|
1
|
|
End of the period / year
|
129
|
129
|
During
the period ended December 31, 2020 and for the year ended June 30,
2020, there were no financial costs activated as there have been no
assets that qualify for capitalization. No investment property of
the Company has been mortgaged to guarantee some of the
Company´s loans.
The
amounts recognized in the statement of income and other
comprehensive income are not material for any of the exercises
analyzed.
As
described in Note 2.6 to the consolidated financial statements, the
Group uses the valuation made by qualified external appraisers to
determine the fair value of its investment properties. Fair values
are based on comparable values (Level 2 of the fair value
hierarchy). The sales prices of comparable land are adjusted taking
into account the specific aspects of each land, the most important
used premise being the price per hectare.
8.
Property,
plant and equipment
Changes
in Company’s property, plant and equipment for the six-month
period ended December 31, 2020 and for the fiscal year ended June
30, 2020 were as follows:
|
|
Owner occupied farmland (ii)
|
Others
|
Total as of 12.31.20
|
Total as of 06.30.20
|
|
|
|
|
|
|
|
Costs
|
8,109
|
442
|
8,551
|
8,365
|
|
Accumulated
depreciation
|
(1,062)
|
(284)
|
(1,346)
|
(1,187)
|
|
Net book amount at the beginning of the period / year
|
7,047
|
158
|
7,205
|
7,178
|
|
Additions
|
53
|
10
|
63
|
209
|
|
Disposals
|
(5)
|
-
|
(5)
|
(12)
|
|
Reclassifications
|
-
|
-
|
-
|
(11)
|
|
Depreciation
charge (i)
|
(57)
|
(23)
|
(80)
|
(159)
|
|
Balances at the end of the period / year
|
7,038
|
145
|
7,183
|
7,205
|
|
|
|
|
|
|
|
Costs
|
8,157
|
452
|
8,609
|
8,551
|
|
Accumulated
depreciation
|
(1,119)
|
(307)
|
(1,426)
|
(1,346)
|
|
Net book amount at the end of the period / year
|
7,038
|
145
|
7,183
|
7,205
|
(i)
For the fiscal
years ended December 31, 2020 and June 30, 2020, the depreciation
expense of property, plant and equipment has been charged as
follows: Ps. 8 and Ps. 16 in "Costs";Ps. 3 and Ps. 10 in
“General and administrative expenses” and Ps. 0 and Ps.
1 in “Selling expenses” in “the Statement of
Income and Other Comprehensive Income";Ps. 69 and Ps. 132 were
capitalized as part of the biological assets costs.
(ii)
Includes farms,
buildings and facilities of farmlands properties.
9.
Intangible
assets
Changes
in Company’s intangible assets for the six-month period ended
as of December 31, 2020 and for the fiscal year ended as of June
30, 2020 were as follows:
|
|
Computer software
|
Concession rights
|
Total as of 12.31.20
|
Total as of 06.30.20
|
|
Costs
|
28
|
395
|
423
|
413
|
|
Accumulated
amortization
|
(17)
|
(157)
|
(174)
|
(163)
|
|
Net book amount at the beginning of the period / year
|
11
|
238
|
249
|
250
|
|
Additions
|
1
|
-
|
1
|
8
|
|
Reclassifications
|
-
|
-
|
-
|
2
|
|
Amortization
charges (i)
|
(3)
|
(7)
|
(10)
|
(11)
|
|
Balances at the end of the period / year
|
9
|
231
|
240
|
249
|
|
Costs
|
29
|
395
|
424
|
423
|
|
Accumulated
amortization
|
(20)
|
(164)
|
(184)
|
(174)
|
|
Net book amount at the end of the period / year
|
9
|
231
|
240
|
249
|
(i)
Amortization
charges are included in “General and administrative
expenses” in the Statement of Income and Other Comprehensive
Income. There are no impairment charges for any of the years
presented.
10.
Right
of use assets
The
composition in the Company's rights of use assets for the six-month
period ended as of December 31, 2020 and for the fiscal year ended
as of June 30, 2020 is as follows:
|
|
12.31.20
|
06.30.20
|
|
Non Current
|
|
|
|
Owner
occupied farmland
|
1,612
|
900
|
|
Machines
and equipment
|
3
|
4
|
|
Total Right-of-use assets
|
1,615
|
904
|
The
amortization charge of the right-of-use assets is detailed
below:
|
|
12.31.20
|
12.31.19
|
|
Owner
occupied farmland
|
239
|
45
|
|
Machines
and equipment
|
-
|
1
|
|
Total amortization of Right-of-use assets
|
239
|
46
|
11.
Biological
assets
Changes
in the Company’s biological assets for the six-month period
ended as of December 31, 2020 and for the fiscal year ended as of
June 30, 2020 were as follows:
During
the six-month period ended December 31, 2020 and the year ended
June 30, 2020 there have been transfers by $88 between the fair
value hierarchies 1 and 3 of sown land-crops (due to the degree of
phenological growth of the crop). Likewise, there were no
reclassifications among their respective categories.
See
information on valuation processes used by the entity in Note 14 to
the Consolidated Financial Statements as of June 30,
2020.
As of
December 31, 2020, and June 30, 2020, the better and maximum use of
biological assets shall not significantly differ from the current
use.
12.
Inventories
Breakdown of
Company’s inventories as of December 31, 2020 and June 30,
2020 are as follows:
|
|
12.31.20
|
06.30.20
|
|
Current
|
|
|
|
Crops
|
477
|
1,294
|
|
Materials
and supplies
|
6
|
5
|
|
Seeds
and fodders
|
1,102
|
1,152
|
|
Total inventories
|
1,585
|
2,451
|
As of
December 31, 2020, and June 30, 2020 the cost of inventories
recognized as expense amounted to Ps. 2,483 and Ps. 6,720,
respectively and they have been included in “Costs” in
the Unaudited Condensed Interim Separate Statement of Income and
Other Comprehensive Income.
13.
Financial
instruments by category
Determining fair values
See
determination of the fair value of the Company's financial
instruments in Note 16 to the Annual Consolidated Financial
Statements as of June 30, 2020.
The
following tables present the Company’s financial assets and
financial liabilities that are measured at fair value as of
December 31, 2020 and June 30, 2020 and their allocation to the
fair value hierarchy:
|
|
Financial assets at amortized cost
|
Financial assets at fair value through profit or
loss
|
Subtotal financial assets
|
Non-financial assets
|
Total
|
|
|
December
31, 2020
|
|
Level 1
|
Level 2
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
as per statement of financial position
|
|
|
|
|
|
|
|
Trade and other
receivables (excluding the allowance for doubtful accounts and
other receivables) (Note 14)
|
3,110
|
-
|
-
|
3,110
|
1,811
|
4,921
|
|
Investment in
financial assets
|
|
|
|
|
|
|
|
- Mutual
funds
|
-
|
26
|
-
|
26
|
-
|
26
|
|
-
Bonds
|
-
|
1,262
|
-
|
1,262
|
-
|
1,262
|
|
Derivative
financial instruments
|
|
|
|
|
|
|
|
-
Foreign-currency futures contracts
|
-
|
4
|
-
|
4
|
-
|
4
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
- Cash on
hand and at bank
|
17
|
-
|
-
|
17
|
-
|
17
|
|
- Short-term
investments
|
-
|
230
|
-
|
230
|
-
|
230
|
|
Total
assets
|
3,127
|
1,522
|
-
|
4,649
|
1,811
|
6,460
|
|
|
Financial liabilities at amortized cost
|
Financial liabilities at fair value
|
Subtotal financial liabilities
|
Non-financial liabilities
|
Total
|
|
|
December 31, 2020
|
|
Level 1
|
Level 2
|
|
|
|
|
Liabilities
as per statement of financial position
|
|
|
|
|
|
|
|
Trade
and others payables (Note 16)
|
2,464
|
-
|
-
|
2,464
|
513
|
2,977
|
|
Borrowings
(Note 18)
|
42,335
|
-
|
-
|
42,335
|
-
|
42,335
|
|
Derivative
financial instruments:
|
|
|
|
|
|
|
|
-
Foreign-currency contracts
|
-
|
-
|
91
|
91
|
-
|
91
|
|
- Crops
futures contracts
|
-
|
1,321
|
-
|
1,321
|
-
|
1,321
|
|
Total Liabilities
|
44,799
|
1,321
|
91
|
46,211
|
513
|
46,724
|
|
|
Financial liabilities at amortized cost
|
Financial liabilities at fair value
|
Subtotal financial liabilities
|
Non-financial liabilities
|
Total
|
|
|
June 30, 2020
|
|
Level 1
|
Level 2
|
|
|
|
|
Liabilities
as per statement of financial position
|
|
|
|
|
|
|
|
Trade
and other payables (Note 16)
|
2,150
|
-
|
-
|
2,150
|
237
|
2,387
|
|
Borrowings
(excluding finance lease liabilities) (Note 18)
|
46,675
|
-
|
-
|
46,675
|
-
|
46,675
|
|
Derivative
financial instruments:
|
|
|
|
|
|
|
|
-
Foreign-currency contracts
|
-
|
2
|
8
|
10
|
-
|
10
|
|
- Crops
futures contracts
|
-
|
27
|
-
|
27
|
-
|
27
|
|
Total Liabilities
|
48,825
|
29
|
8
|
48,862
|
237
|
49,099
|
14.
Trade
and other receivables
Breakdown of the
Company’s trade and other receivables as of December 31, 2020
and June 30, 2020 are as follows:
|
|
12.31.20
|
06.30.20
|
|
Receivables
from sale of properties (i)
|
1,004
|
1,034
|
|
Receivables
from sale of agricultural products and services
|
517
|
1,131
|
|
Debtors
under legal proceedings
|
8
|
10
|
|
Less:
allowance for doubtful accounts
|
(8)
|
(9)
|
|
Total trade receivables
|
1,521
|
2,166
|
|
Prepayments
|
29
|
246
|
|
Tax
credits
|
531
|
348
|
|
Loans
|
7
|
14
|
|
Advance
payments
|
1,205
|
61
|
|
Expenses
to recover
|
20
|
13
|
|
Others
|
46
|
28
|
|
Total other receivables
|
1,838
|
710
|
|
Related
parties (Note 25)
|
1,554
|
1,076
|
|
Total trade and other receivables
|
4,913
|
3,952
|
|
Non-current
|
860
|
979
|
|
Current
|
4,053
|
2,973
|
|
Total trade and other receivables
|
4,913
|
3,952
|
(i) Net of implicit
interests
The
fair value of current trade and other receivables approximate their
respective carrying amounts because, due to their short-term
nature, as the impact of discounting is not considered significant.
Fair values are based on discounted cash flows (Level 2 of fair
value hierarchy).
The
carrying amounts of the Company’s trade and other receivables
denominated in foreign currencies are detailed in Note
28.
Trade
receivables are generally presented in the statement of financial
position net of allowances for doubtful receivables. Impairment
policies and procedures by type of receivables are discussed in
detail in Note 2.16 to the Consolidated Financial Statements as of
June 30, 2020.
Movements on the
Company’s allowance for doubtful accounts are as
follows:
|
|
12.31.20
|
06.30.20
|
|
Beginning of the period / year
|
9
|
13
|
|
Recovered
|
2
|
1
|
|
Inflation
Adjustment
|
(3)
|
(5)
|
|
End of the period / year
|
8
|
9
|
The
addition and release of allowance for doubtful accounts have been
included in “Selling expenses” in the Unaudited
Condensed Interim Separate Statement of Income and Other
Comprehensive Income (Note 22). Amounts charged to the provision
account are generally written off when there is no expectation of
recovering additional cash.
15.
Cash
flow information
Following is a
detailed description of cash flows used in the Company’s
operations for the six-month period s ended as of December 31, 2020
and 2019:
|
|
12.31.20
|
12.31.19
|
|
Loss for the period
|
(1,512)
|
(6,499)
|
|
Adjustments for:
|
|
|
|
Income
tax
|
274
|
439
|
|
Depreciation
and amortization
|
20
|
23
|
|
Unrealized
gain from derivative financial instruments of
commodities
|
734
|
(189)
|
|
Changes
in fair value of financial assets at fair value through profit or
loss
|
(763)
|
(8)
|
|
Financial
results, net
|
(731)
|
6,334
|
|
Unrealized
initial recognition and changes in the fair value of biological
assets
|
(522)
|
(297)
|
|
Changes
in net realizable value of agricultural products after
harvest
|
(291)
|
(633)
|
|
Provisions
|
1,179
|
102
|
|
(Loss)
/ Gain from repurchase of Non-convertible Notes
|
(3)
|
1
|
|
Loss
from disposal of associates, subsidiaries and joint
ventures
|
(1,256)
|
(84)
|
|
Changes
in fair value of investment properties
|
-
|
(16)
|
|
Changes in operating assets and liabilities:
|
|
|
|
(Increase)
/ Decrease in biological assets
|
(5)
|
995
|
|
Decrease
in inventories
|
1,157
|
1,474
|
|
(Increase)
/ Decrease in trade and other receivables
|
(777)
|
26
|
|
Increase
in right of use assets
|
(951)
|
-
|
|
Increase
/ (Decrease) in lease Liabilities
|
668
|
(200)
|
|
Increase
in derivative financial instruments
|
1,764
|
39
|
|
Decrease
in provisions
|
(2)
|
(4)
|
|
(Decrease)
/ Increase in trade and other payables
|
(593)
|
606
|
|
Decrease
in payroll and social security liabilities
|
(18)
|
(174)
|
|
Net cash (used in) / generated from operating activities before
income tax paid
|
(1,628)
|
1,935
|
The
following table shows a detail of non-cash transactions occurred in
the six-month period ended as of December 31, 2020 and
2019:
|
|
12.31.20
|
12.31.19
|
|
Non-cash activities
|
|
|
|
Dividends
not collected
|
-
|
(38)
|
|
Decrease
of interest in subsidiaries, associates and joint venture by
exchange differences on translating foreign operations
|
(1,520)
|
(848)
|
|
Increase
of interest in subsidiaries, associates and joint ventures by a
decrease in trade and other receivables
|
2
|
3
|
|
Decrease
of interest in subsidiaries, associates and joint ventures through
reserve for share-based compensation
|
-
|
(4)
|
|
Decrease
of interest in subsidiaries, associates and joint ventures by a
decrease in trade and other payables
|
(359)
|
-
|
16.
Trade
and other payables
The
detail of the Company’s trade and other payables as of
December 31, 2020 and June 30, 2020 are as follows:
|
|
12.31.20
|
06.30.20
|
|
Trade
payables
|
623
|
659
|
|
Provisions
|
1,038
|
880
|
|
Sales,
rent and services payments received in advance
|
463
|
163
|
|
Total trade payables
|
2,124
|
1,702
|
|
Taxes
payable
|
32
|
31
|
|
Others
|
-
|
-
|
|
Total other payables
|
32
|
31
|
|
Related
parties (Note 25)
|
821
|
654
|
|
Total trade and other payables
|
2,977
|
2,387
|
|
Current
|
2,977
|
2,387
|
|
Total trade and other payables
|
2,977
|
2,387
|
The
fair value of trade and other payables approximate their respective
carrying amounts due to their short-term nature, as the impact of
discounting is considered as not significant. Fair values are based
on discounted cash flows (Level 2 of fair value
hierarchy).
Book
value of trade and other payables denominated in foreign currencies
are detailed in Note 28.
17.
Provisions
The
table below shows the movements in Company's provisions categorized
by type of provision:
|
|
Labor and tax claims and other claims
|
Total as of 12.31.20
|
Total as of 06.30.20
|
|
Beginning
of period / year
|
15
|
15
|
20
|
|
Additions
|
-
|
-
|
1
|
|
Inflation
Adjustment
|
(2)
|
(2)
|
(6)
|
|
End
of period / year
|
13
|
13
|
15
|
|
|
|
|
|
|
Non-current
|
|
8
|
11
|
|
Current
|
|
5
|
4
|
|
Total
|
|
13
|
15
|
18.
Borrowings
The
detail of the Company’s borrowings as of December 31, 2020
and June 30, 2020 is as follows:
|
|
Book value
|
Fair Value
|
||
|
|
12.31.20
|
06.30.20
|
12.31.20
|
06.30.20
|
|
Non-convertible
notes
|
28,765
|
30,239
|
27,495
|
27,505
|
|
Bank
loans and others
|
6,456
|
10,701
|
6,457
|
10,703
|
|
Related
parties (Note 25)
|
3,216
|
3,510
|
3,122
|
3,256
|
|
Bank
overdrafts
|
3,898
|
2,225
|
3,898
|
2,225
|
|
Total borrowings
|
42,335
|
46,675
|
40,972
|
43,689
|
|
Non-current
|
16,316
|
24,520
|
|
|
|
Current
|
26,019
|
22,155
|
|
|
|
Total borrowings
|
42,335
|
46,675
|
|
|
19.
Taxation
The
detail of the provision for the Company’s income tax is as
follows:
|
|
12.31.20
|
12.31.19
|
|
Deferred
income tax
|
(274)
|
(439)
|
|
Income tax
|
(274)
|
(439)
|
The
gross movements on the deferred income tax account were as
follows:
|
|
12.31.20
|
06.30.20
|
|
Beginning of the period / year
|
(4,485)
|
(3,842)
|
|
Charged
to the Statement of Comprehensive Income
|
(274)
|
(643)
|
|
End of the period / year
|
(4,759)
|
(4,485)
|
The
Company´s income tax expense charge differs from the
theoretical amount that would arise using the weighted average tax
rate applicable to Company´s profit before income tax as
follows:
|
|
12.31.20
|
12.31.19
|
|
Tax
calculated at the tax applicable tax rate in effect
(i)
|
371
|
1,818
|
|
Permanent
differences:
|
|
-
|
|
Share
of profit of subsidiaries, associates and joint
ventures
|
377
|
26
|
|
Income
tax rate change (*)
|
55
|
(305)
|
|
Provision
for unrecoverability of tax loss carry-forwards
|
(1,297)
|
(2,191)
|
|
Tax
Transparency
|
(58)
|
(3)
|
|
Non-taxable
results, non-deductible expenses and others
|
(32)
|
(6)
|
|
Inflation
adjustment for tax purposes
|
(1,661)
|
(1,605)
|
|
Inflation
Adjustment
|
1,971
|
1,827
|
|
Income tax
|
(274)
|
(439)
|
(*)
Each period
corresponds to the effect of applying to the deferred tax items the
changes in the applicable tax rates.
(i)
The Income Tax rate
in effect in Argentina as of December 31, 2020 and 2019 was 30%.
See Note 22 to the Annual Consolidated Financial
Statements.
20.
Revenues
|
|
12.31.20
|
12.31.19
|
|
Crops
|
3,010
|
5,220
|
|
Cattle
|
847
|
761
|
|
Supplies
|
2
|
-
|
|
Leases
and agricultural services
|
10
|
58
|
|
Total revenues
|
3,869
|
6,039
|
21.
Costs
|
|
12.31.20
|
12.31.19
|
|
Crops
|
2,483
|
4,056
|
|
Cattle
|
664
|
609
|
|
Leases
and agricultural services
|
20
|
69
|
|
Other
costs
|
15
|
16
|
|
Total costs
|
3,182
|
4,750
|
22.
Expenses
by nature
|
|
Costs (i)
|
Cost of Production
|
General and administrative expenses
|
Selling expenses
|
Total as of 12.31.20
|
Total as of 12.31.19
|
|
Supplies
and labors
|
9
|
2,195
|
-
|
1
|
2,205
|
2,240
|
|
Leases
and expenses
|
-
|
5
|
12
|
1
|
18
|
20
|
|
Amortization
and depreciation
|
8
|
309
|
12
|
-
|
329
|
135
|
|
Doubtful
accounts (charge and recovery)
|
-
|
-
|
-
|
2
|
2
|
-
|
|
Cost
of sale of agricultural products and biological assets
|
3,148
|
-
|
-
|
-
|
3,148
|
4,666
|
|
Advertising,
publicity and other selling expenses
|
-
|
-
|
-
|
51
|
51
|
3
|
|
Maintenance
and repairs
|
1
|
48
|
26
|
-
|
75
|
71
|
|
Payroll
and social security liabilities
|
12
|
189
|
190
|
18
|
409
|
384
|
|
Fees
and payments for services
|
2
|
14
|
32
|
14
|
62
|
71
|
|
Freights
|
-
|
53
|
-
|
382
|
435
|
769
|
|
Bank
commissions and expenses
|
-
|
-
|
20
|
-
|
20
|
26
|
|
Travel
expenses and stationery
|
1
|
24
|
4
|
-
|
29
|
37
|
|
Conditioning
and clearance
|
-
|
-
|
-
|
90
|
90
|
154
|
|
Director’s
fees
|
-
|
-
|
22
|
-
|
22
|
42
|
|
Taxes,
rates and contributions
|
1
|
20
|
-
|
57
|
78
|
117
|
|
Total expenses by nature as of 12.31.20
|
3,182
|
2,857
|
318
|
616
|
6,973
|
|
|
Total expenses by nature as of 12.31.19
|
4,750
|
2,644
|
324
|
1,017
|
|
8,735
|
(i)
Include Ps. 15 and
Ps. 16 of other agricultural operating costs as of December 31,
2020 and 2019, respectively.
23.
Other
operating results, net
|
|
12.31.20
|
12.31.19
|
|
Administration
fees
|
2
|
-
|
|
Gain
from commodity derivative financial instruments
|
(1,412)
|
35
|
|
Operating
interest expense
|
41
|
54
|
|
Others
|
69
|
14
|
|
Total other operating results, net
|
(1,300)
|
103
|
24.
Financial
results, net
|
|
12.31.20
|
12.31.19
|
|
Financial
income:
|
|
|
|
Interest
income
|
203
|
10
|
|
Total financial income
|
203
|
10
|
|
|
|
|
|
Financial
costs:
|
|
|
|
Interest
expenses
|
(2,108)
|
(1,785)
|
|
Other
financial costs
|
(150)
|
(136)
|
|
Total financial costs
|
(2,258)
|
(1,921)
|
|
|
|
|
|
Other
financial results:
|
|
|
|
Exchange
rate difference, net
|
(191)
|
(4,903)
|
|
Fair
value gains of financial assets at fair value through profit or
loss
|
664
|
83
|
|
Loss
from derivative financial instruments (except
commodities)
|
(400)
|
163
|
|
Gain
from repurchase of NCN
|
3
|
(1)
|
|
Total other financial results
|
76
|
(4,658)
|
|
Inflation
Adjustment
|
630
|
(50)
|
|
Total financial results, net
|
(1,349)
|
(6,619)
|
25.
Related
party transactions
See
description of the main transactions conducted with related parties
in Note 32 to the Consolidated Financial Statements as of June 30,
2020.
The
following is a summary of the balances with related parties as of
December 31, 2020 and June 30, 2020:
|
Items
|
12.31.20
|
06.30.20
|
|
Trade
and other payables
|
(821)
|
(654)
|
|
Investment
in financial assets
|
655
|
-
|
|
Borrowings
|
(3,216)
|
(3,510)
|
|
Trade
and other receivables
|
1,554
|
1,076
|
|
Total
|
(1,828)
|
(3,088)
|
The
following is a summary of the results with related parties for the
six-month period ended as of December 31, 2020 and
2019:
|
Related party
|
12.31.20
|
06.30.20
|
Description of transaction
|
Item
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
|
118
|
80
|
Corporate
services receivable
|
Trade
and other receivables
|
|
|
(6)
|
(7)
|
Reimbursement
of expenses payable
|
Trade
and other payables
|
|
|
1
|
1
|
Leases
|
Trade
and other receivables
|
|
|
1
|
1
|
Share
based payments
|
Trade
and other receivables
|
|
|
655
|
-
|
Bounds
|
Investment
in financial assets
|
|
Brasilagro
Companhia Brasileira de Propriedades Agrícolas
|
(5)
|
(4)
|
Leases
|
Trade
and other payables
|
|
|
-
|
10
|
Dividends
receivables
|
Trade
and other receivables
|
|
|
14
|
13
|
Reimbursement
of expenses receivable
|
Trade
and other receivables
|
|
Sociedad
Anónima Carnes Pampeanas S.A. (formerly EAASA)
|
238
|
114
|
Sale
of goods and/or services
|
Trade
and other receivables
|
|
|
(2)
|
-
|
Reimbursement
of expenses receivable
|
Trade
and other payables
|
|
Helmir
S.A.
|
(530)
|
(803)
|
Borrowings
|
Borrowings
|
|
|
-
|
291
|
Loans
granted
|
Trade
and other receivables
|
|
Ombú
Agropecuaria S.A.
|
2
|
4
|
Reimbursement
of expenses receivable
|
Trade
and other receivables
|
|
|
(8)
|
(7)
|
Leases
|
Trade
and other payables
|
|
|
-
|
(1)
|
Reimbursement
of expenses payable
|
Trade
and other payables
|
|
Agropecuaria
Acres del Sud S.A.
|
4
|
4
|
Administration
fees
|
Trade
and other receivables
|
|
Yatay
Agropecuaria S.A.
|
3
|
4
|
Administration
fees
|
Trade
and other receivables
|
|
|
(496)
|
(490)
|
Borrowings
|
Borrowings
|
|
Yuchán
Agropecuaria S.A.
|
3
|
2
|
Administration
fees
|
Trade
and other receivables
|
|
Futuros
y Opciones.Com S.A.
|
782
|
321
|
Brokerage
operations receivable
|
Trade
and other receivables
|
|
|
(657)
|
(245)
|
Services
received
|
Trade
and other payables
|
|
|
(105)
|
-
|
Borrowings
|
Borrowings
|
|
|
(24)
|
(43)
|
Reimbursement
of expenses payable
|
Trade
and other payables
|
|
IRSA
Propiedades Comerciales S.A.
|
372
|
218
|
Reimbursement
of expenses receivable
|
Trade
and other receivables
|
|
|
3
|
4
|
Share
based payments
|
Trade
and other receivables
|
|
|
(1,978)
|
(2,111)
|
Non-convertible
notes
|
Borrowings
|
|
|
-
|
(2)
|
Reimbursement
of expenses payable
|
Trade
and other payables
|
|
Total Subsidiaries
|
(1,615)
|
(2,646)
|
|
|
|
|
|
|
|
|
|
Panamerican
Mall S.A.
|
(44)
|
(44)
|
Non-convertible
notes
|
Borrowings
|
|
Amauta
Agro S.A. (formerly FyO Trading S.A.)
|
(72)
|
(107)
|
Purchase
of goods and/or services
|
Trade
and other payables
|
|
FyO
Acopio S.A.
|
(24)
|
-
|
Purchase
of goods and/or services
|
Trade
and other payables
|
|
Total Subsidiaries of the subsidiaries
|
(140)
|
(151)
|
|
|
|
|
|
|
|
|
|
CAMSA
and its subsidiaries
|
-
|
1
|
Reimbursement
of expenses receivable
|
Trade
and other receivables
|
|
|
-
|
(228)
|
Reimbursement
of expenses receivable
|
Trade
and other payables
|
|
BNH
VIDA
|
(63)
|
(62)
|
Non-convertible
notes
|
Borrowings
|
|
Other Related parties
|
(63)
|
(289)
|
|
|
|
|
|
|
|
|
|
Inversiones
Financieras del Sur S.A. (1)
|
2
|
8
|
Loans
granted
|
Trade
and other receivables
|
|
Total Parent Company
|
2
|
8
|
|
|
|
|
|
|
|
|
|
Directors
and Senior Management
|
11
|
-
|
Reimbursement
of expenses receivable
|
Trade
and other receivables
|
|
|
(23)
|
(10)
|
Director's
fees
|
Trade
and other payables
|
|
Total Directors and Senior Management
|
(12)
|
(10)
|
|
|
|
Total
|
(1,828)
|
(3,088)
|
|
|
The
following is a summary of the transactions with related parties for
the six-month period ended as of December 31, 2020 and
2019:
|
Related party
|
12.31.20
|
12.31.19
|
Description of transaction
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
|
(4)
|
(4)
|
Leases
and/or rights of use
|
|
|
(86)
|
-
|
Changes
in fair value of financial instruments
|
|
|
72
|
80
|
Corporate
services
|
|
Futuros
y Opciones.Com S.A.
|
(8)
|
(15)
|
Purchase
of goods and/or services
|
|
|
1
|
1
|
Management
fees
|
|
Sociedad
Anónima Carnes Pampeanas S.A. (formerly EAASA)
|
472
|
425
|
Sale
of goods and/or services
|
|
Helmir
S.A.
|
79
|
-
|
Financial
operations
|
|
|
(1)
|
(118)
|
Financial
operations
|
|
Total subsidiaries
|
525
|
369
|
|
|
|
|
|
|
|
Torodur
S.A.
|
(3)
|
-
|
Financial
operations
|
|
Panamerican
Mall S.A.
|
(2)
|
(7)
|
Financial
operations
|
|
Yatay
Agropecuaria S.A.
|
(8)
|
(11)
|
Financial
operations
|
|
Amauta
Agro S.A. (formerly FyO Trading S.A.)
|
(16)
|
(97)
|
Purchase
of goods and/or services
|
|
|
5
|
-
|
Sale
of goods and/or services
|
|
IRSA
Propiedades Comerciales S.A.
|
(5)
|
(7)
|
Leases
and/or rights of use
|
|
|
223
|
257
|
Corporate
services
|
|
|
(83)
|
(328)
|
Financial
operations
|
|
FyO
Acopio S.A.
|
(2)
|
-
|
Management
fees
|
|
|
(71)
|
(60)
|
Purchase
of goods and/or services
|
|
Total Subsidiaries of the subsidiaries
|
38
|
(253)
|
|
|
|
|
|
|
|
Estudio
Zang, Bergel & Viñes
|
(2)
|
(3)
|
Legal
services
|
|
Hamonet
S.A.
|
(1)
|
(1)
|
Leases
and/or rights of use
|
|
BNH
Vida S.A.
|
(6)
|
-
|
Financial
operations
|
|
BACS
Administradora de Activos S.A.
|
(77)
|
-
|
Financial
operations
|
|
San
Bernardo de Córdoba S.A.
|
-
|
(1)
|
Leases
and/or rights of use
|
|
Isaac
Elsztain e Hijos S.C.A.
|
(2)
|
(1)
|
Leases
and/or rights of use
|
|
Other Related parties
|
(88)
|
(6)
|
|
|
|
|
|
|
|
Directores
|
(22)
|
(42)
|
Compensation
of Directors
|
|
Senior
Management
|
(12)
|
(16)
|
Compensation
of Senior Management
|
|
Total Directors and Senior Management
|
(34)
|
(58)
|
|
|
|
|
|
|
|
Inversiones
Financieras del Sur S.A.
|
4
|
3
|
Financial
operations
|
|
Total parent company
|
4
|
3
|
|
|
Total
|
445
|
55
|
|
The following is a summary of the transactions with related parties
for the six-month period ended as of December 31, 2020 and
2019:
|
Related party
|
12.31.20
|
12.31.19
|
Description of transaction
|
|
Agropecuarias
Santa Cruz de la Sierra S.A.
|
1
|
4
|
Additional
paid-in capital
|
|
Helmir
S.A.
|
-
|
223
|
Additional
paid-in capital
|
|
Futuros
y Opciones.Com S.A.
|
84
|
-
|
Additional
paid-in capital
|
|
Total subsidiary contributions
|
85
|
227
|
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
|
359
|
438
|
Dividends
received
|
|
IRSA
Propiedades Comerciales S.A.
|
350
|
12
|
Dividends
received
|
|
Brasilagro
Companhia Brasileira de Propriedades Agrícolas
(“Brasilagro”)
|
5
|
71
|
Dividends
received
|
|
Agro-Uranga
S.A.
|
26
|
31
|
Dividends
received
|
|
Uranga
Trading S.A.
|
11
|
-
|
Dividends
received
|
|
FyO
Acopio S.A.
|
4
|
-
|
Dividends
received
|
|
Futuros
y Opciones.Com S.A.
|
124
|
170
|
Dividends
received
|
|
Total dividends received
|
879
|
722
|
|
26.
CNV
General Resolution N° 622/13
As
required by Section 1°, Chapter III, Title IV of CNV General
Resolution N° 622/13, below there is a detail of the notes to
the Unaudited Condensed Interim Separate Financial Statements that
disclosure the information required by the Resolution in
Exhibits.
|
Exhibit A - Property, plant and equipment
|
|
Note 7 – Investment properties
|
|
|
|
Note 8 – Property, plant and equipment
|
|
Exhibit B - Intangible assets
|
|
Note 9 – Intangible assets
|
|
Exhibit C - Equity investments
|
|
Note 6 - Investments in subsidiaries, associates and joint
ventures
|
|
Exhibit D - Other investments
|
|
Note 13 – Financial instruments by category
|
|
Exhibit E - Provisions
|
|
Note 14 – Trade and other receivables
|
|
|
|
Note 17 – Provisions
|
|
Exhibit F - Cost of sales and services
|
|
Note 27 – Cost of sales and services provided
|
|
Exhibit G - Foreign currency assets and liabilities
|
|
Note 28 – Foreign currency assets and
liabilities
|
|
Exhibit H - Exhibit of expenses
|
|
Note 22 – Expenses by nature
|
27.
Cost
of sales and services provided
|
Description
|
Biological assets (1)
|
Agricultural stock
|
Services and other operating costs
|
Total as of 12.31.20
|
Total as of 12.31.19
|
|
Beginning of the period / year
|
2,057
|
2,451
|
-
|
4,508
|
5,303
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
82
|
-
|
-
|
82
|
(102)
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
-
|
291
|
-
|
291
|
633
|
|
Increase
due to harvest
|
-
|
1,586
|
-
|
1,586
|
2,404
|
|
Acquisitions
and classifications
|
125
|
1,160
|
-
|
1,285
|
1,712
|
|
Consume
|
(5)
|
(1,420)
|
-
|
(1,425)
|
(1,529)
|
|
Expenses
incurred
|
586
|
-
|
20
|
606
|
606
|
|
Inventories
|
(2,181)
|
(1,585)
|
-
|
(3,766)
|
(4,293)
|
|
Cost as of 12.31.20
|
664
|
2,483
|
20
|
3,167
|
-
|
|
Cost as of 12.31.19
|
609
|
4,056
|
69
|
-
|
4,734
|
(1)
Corresponds to
breeding cattle movements and other cattle.
28.
Foreign
currency assets and liabilities
Book
amounts of foreign currency assets and liabilities as of December
31, 2020 and June 30, 2020 are as follows:
(1) Exchange rate as of
December 31, 2020 according to Banco Nación Argentina
records.
29.
CNV
General Ruling N° 629/14 – Storage of
documentation
On
August 14, 2014, the CNV issued General Ruling N° 629 whereby
it introduced amendments to rules related to storage and
conservation of corporate books, accounting books and commercial
documentation. In this sense, it should be noted that the Company
has entrusted the storage of certain non-sensitive and old
information to the following providers:
|
Documentation storage provider
|
|
Location
|
|
Bank S.A.
|
|
Ruta Panamericana Km 37,5, Garín, Province of Buenos
Aires
|
|
|
|
Av. Fleming 2190, Munro, Province of Buenos Aires
|
|
|
|
Carlos Pellegrini 1401, Avellaneda, Province of Buenos
Aires
|
|
Iron Mountain Argentina S.A.
|
|
Av. Amancio Alcorta 2482, Autonomous City of Buenos
Aires
|
|
|
|
Pedro de Mendoza 2143, Autonomous City of Buenos Aires
|
|
|
|
Saraza 6135, Autonomous City of Buenos Aires
|
|
|
|
Azara 1245, Autonomous City of Buenos Aires
|
|
|
|
Polígono industrial Spegazzini, Autopista Ezeiza Km 45,
Cañuelas, Province of Buenos Aires
|
|
|
|
Cañada de Gomez 3825, Autonomous City of Buenos
Aires
|
It is
further noted that a detailed list of all documentation held in
custody by providers, as well as documentation required in section
5 a.3) of section I, Chapter V, Title II of the RULES (N.T. 2013 as
amended) are available at the registered office.
On
February 5, 2014 there was a widely known fire in Iron
Mountain’s warehouse, which is a supplier of the Company and
where Company’s documentation was being kept. Based on the
internal review carried out by the Company, duly reported to CNV on
February 12, 2014, the information kept at the Iron Mountain
premises that were on fire do not appear to be sensitive or capable
of affecting normal operations.
30.
Negative
working capital
At the end of the period, the Company carried a working capital
deficit of Ps. 22,490, whose treatment is under consideration by
the Board of Directors and the respective Management. The
Company has issued during the current fiscal year and after
December 31, 2020 NCN for a total of US$ 90.1 million.
31.
Economic
context in which society operates
See
economic context in which society operates in Note 33 to the
Unaudited Condensed Interim Consolidated Financial
Statements.
32.
Subsequent
events
See
others subsequent events in Note 34 to the Unaudited Condensed
Interim Consolidated Financial Statements.
Information required by Section 68 of the Buenos Aires Stock
Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution
622/13
Unaudited
Condensed Interim Separate Statement of Financial Position as of
December 31, 2020
Stated
in millions of Argentine pesos
Free
translation from the original prepared in Spanish for publication
in Argentina
1.
Specific and significant legal systems that imply contingent
lapsing or rebirth of benefits envisaged by such
provisions.
None.
2.
Significant changes in the Company´s activities or other
similar circumstances that occurred during the fiscal years
included in the financial statements, which affect their comparison
with financial statements filed in previous fiscal years, or that
could affect those to be filed in future fiscal years.
Are
detailed in the Business Review.
3.
Receivables and liabilities by maturity date.
|
|
|
Past due (Point 3 a.)
|
Without maturity (Point 3.b.)
|
Without maturity (Point 3.b.)
|
To be due (Point 3.c.)
|
|
|
|
|
|
|
|
|
Items
|
|
12.31.20
|
Current
|
Non-current
|
Up to 3 months
|
From 3 to 6 month
|
From 6 to 9 months
|
From 9 to 12 months
|
From 1 to 2 years
|
From 2 to 3 years
|
From 3 to 4 years
|
Total
|
|
Accounts receivables
|
Trade
and other receivables
|
-
|
-
|
-
|
3,691
|
348
|
14
|
-
|
620
|
240
|
-
|
4,913
|
|
|
Income
tax and minimum presumed income tax and deferred income
tax
|
-
|
-
|
38
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
38
|
|
|
Total
|
-
|
-
|
38
|
3,691
|
348
|
14
|
-
|
620
|
240
|
-
|
4,951
|
|
Liabilities
|
Trade
and other payables
|
-
|
97
|
-
|
2,880
|
-
|
-
|
-
|
-
|
-
|
-
|
2,977
|
|
|
Borrowings
|
-
|
-
|
-
|
6,428
|
6,325
|
5,893
|
7,373
|
6,815
|
9,501
|
-
|
42,335
|
|
|
Lease
liabilities
|
-
|
983
|
447
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,430
|
|
|
Payroll
and social security liabilities
|
-
|
-
|
-
|
80
|
55
|
-
|
77
|
-
|
-
|
-
|
212
|
|
|
Provisions
|
-
|
5
|
8
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
13
|
|
|
Deferred
income tax liabilities
|
-
|
-
|
4,759
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,759
|
|
|
Total
|
-
|
1,085
|
5,214
|
9,388
|
6,38
|
5,893
|
7,45
|
6,815
|
9,501
|
-
|
51,726
|
Information required by Section 68 of the Buenos Aires Stock
Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution
622/13
Unaudited
Condensed Interim Separate Statement of Financial Position as of
December 31, 2020
Stated
in millions of Argentine pesos
Free
translation from the original prepared in Spanish for publication
in Argentina
4.a.
Breakdown of accounts receivable and liabilities by currency and
maturity.
|
Items
|
|
Current
|
Non-current
|
Totals
|
||||||
|
|
|
Local Currency
|
Foreign Currency
|
Total
|
Local Currency
|
Foreign Currency
|
Total
|
Local Currency
|
Foreign Currency
|
Total
|
|
Accounts receivables
|
Trade
and other receivables
|
3,023
|
1,030
|
4,053
|
254
|
606
|
860
|
3,277
|
1,636
|
4,913
|
|
|
Income
tax and minimum presumed income tax and deferred income
tax
|
-
|
-
|
-
|
38
|
-
|
38
|
38
|
-
|
38
|
|
|
Total
|
3,023
|
1,030
|
4,053
|
292
|
606
|
898
|
3,315
|
1,636
|
4,951
|
|
Liabilities
|
Trade
and other payables
|
1,894
|
1,083
|
2,977
|
-
|
-
|
-
|
1,894
|
1,083
|
2,977
|
|
|
Borrowings
|
9,094
|
16,925
|
26,019
|
-
|
16,316
|
16,316
|
8,998
|
33,337
|
42,335
|
|
|
Lease
liabilities
|
982
|
1
|
983
|
447
|
-
|
447
|
1,429
|
1
|
1,43
|
|
|
Payroll
and social security liabilities
|
212
|
-
|
212
|
-
|
-
|
-
|
212
|
-
|
212
|
|
|
Provisions
|
5
|
-
|
5
|
8
|
-
|
8
|
13
|
-
|
13
|
|
|
Deferred
income tax liabilities
|
-
|
-
|
-
|
4,759
|
-
|
4,759
|
4,759
|
-
|
4,759
|
|
|
Total
|
12,187
|
18,009
|
30,196
|
5,214
|
16,316
|
21,53
|
17,305
|
34,421
|
51,726
|
4.b.
Breakdown of accounts receivable and liabilities by adjustment
clause.
On
December 31, 2020, there are no receivable and liabilities subject
to adjustment clause.
Information required by Section 68 of the Buenos Aires Stock
Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution
622/13
Unaudited
Condensed Interim Separate Statement of Financial Position as of
December 31, 2020
Stated
in millions of Argentine pesos
Free
translation from the original prepared in Spanish for publication
in Argentina
4.c.
Breakdown of accounts receivable and liabilities by interest
accrual.
Information required by Section 68 of the Buenos Aires Stock
Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution
622/13
Unaudited
Condensed Interim Separate Statement of Financial Position as of
December 31, 2020
Stated
in millions of Argentine pesos
Free
translation from the original prepared in Spanish for publication
in Argentina
5.
Companies under section 33 of law N°. 19,550 and other related
parties.
a.
Interest in
companies under section 33 of law N° 19,550. See Note
6.
b.
Companies under
section 33 of law N° 19,550 and other related parties debit /
credit balances. See Note 25.
6.
Loans to directors.
See
Note 25.
7.
Inventories.
The
Company conducts physical inventories once a fiscal year in its
most significant properties, covering all the assets they possess.
There is no relevant immobilization of inventory.
8.
Current values.
See
Note 2 to the Consolidated Financial Statements as of June 30, 2020
and 2019.
9.
Appraisal revaluation of property, plant and
equipment.
None.
10.
Obsolete unused property, plant and equipment.
None.
11.
Equity interest in other companies in excess of that permitted by
section 31 of law N°. 19,550.
None.
12.
Recovery values.
See
Note 2 to the Consolidated Financial Statements as of June 30, 2020
and 2019.
13.
Insurances.
The
types of insurance used by the company were the
following:
|
Insured
property
|
Risk
covered
|
Amount
insured
Ps.
|
Book
value
Ps.
|
|
Buildings,
machinery, silos, installation and furniture and
equipment
|
Theft, fire and
technical insurance
|
3,216
|
7,129
|
|
Vehicles
|
Third parties,
theft, fire and civil liability
|
221
|
54
|
14.
Allowances and provisions that, taken individually or as a whole,
exceed 2% of the shareholder´s equity.
None.
15.
Contingent situations at the date of the financial statements which
probabilities are not remote and the effects on the Company´s
financial position have not been recognized.
Not
applicable.
16.
Status of the proceedings leading to the capitalization of
irrevocable contributions towards future
subscriptions.
Not
applicable.
17. Unpaid accumulated
dividends on preferred shares.
None.
18. Restrictions
on distributions of profits.
According
to the Argentine laws, 5% of the profit of the year is separated to
constitute legal reserves until they reach legal capped amounts
(20% of total capital). These legal reserves are not available for
dividend distribution.
REVIEW
REPORT ON THE UNAUDITED CONDENSED INTERIM SEPARATE FINANCIAL
STATEMENTS
To the
Shareholders, President and Directors of
Cresud
Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Legal
address: Carlos Della Paolera 261, 9° floor
Autonomous City of
Buenos Aires
Tax
Registration Number: 30-50930070-0
Introduction
We have
reviewed the accompanying unaudited condensed interim separate
financial statements of Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria (“the
Company”), which comprise the unaudited condensed interim
separate statement of financial position at December 31, 2020, the
unaudited condensed interim separate statements of income and other
comprehensive income, of changes in shareholders’ equity and
of cash flows for the six and three-month period then ended, and
selected explanatory notes.
The
balances and other information for the fiscal year ended on June
30, 2020 and its interim periods are an integral part of the
financial statements mentioned above; therefore, they must be
considered in connection with these financial
statements.
Management’s responsibility
The
Board of Directors of the Company is responsible for the
preparation and presentation of these unaudited condensed interim
separate financial statements in accordance with International
Financial Reporting Standards, adopted by the Argentine Federation
of Professional Councils in Economic Sciences (FACPCE) as
professional accounting standards and included by the National
Securities Commission (CNV) in its regulations, as approved by the
International Accounting Standards Board (IASB), and is therefore
responsible for the preparation and presentation of the unaudited
condensed interim separate financial statements mentioned in the
first paragraph, in accordance with International Accounting
Standard 34 Interim Financial
Information (IAS 34).
Scope of our review
Our
review was limited to the application of the procedures established
under International Standards on Review Engagements ISRE 2410
Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity, adopted as a review standard in Argentina by
Technical Pronouncement No. 33 of the FACPCE and approved by the
International Auditing and Assurance Standards Board (IAASB). A
review of interim financial information consists of inquiries of
Company staff responsible for preparing the information included in
the unaudited condensed interim separate financial statements and
of analytical and other review procedures. This review is
substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and, consequently, does
not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion on the separate
statements of financial position, and the separate statements of
income and other comprehensive income and of cash flows of the
Company.
Conclusion
On the
basis of our review, nothing has come to our attention that causes
us to believe that the unaudited condensed interim separate
financial statements mentioned in the first paragraph of this
report have not been prepared, in all material respects, in
accordance with International Accounting Standard 34 Interim Financial
Reporting.
Report on compliance with current regulations
In
accordance with current regulations, we report, in connection with
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria, that:
a) the unaudited
condensed interim separate financial statements of Cresud Sociedad
Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
are not transcribed into the Inventory and Balance Sheet book and,
except for the above mentioned situation, as regards those matters
that are within our competence, they are in compliance with the
provisions of the General Companies Law and pertinent resolutions
of the National Securities Commission;
b) the unaudited
condensed interim separate financial statements of Cresud Sociedad
Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
arise from accounting records carried in all formal aspects in
accordance with legal requirements;
c) we have read the
additional information to the notes to the unaudited condensed
interim separate financial statements required by section 12,
Chapter III, Title IV of the rules of the National Securities
Commission, on which we have no observations to make regarding
matters that are within our competence;
d) at December 31,
2020 the debt of Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria accrued in favor of the
Argentine Integrated Social Security System, as shown by the
Company’s accounting records, amounted to $ 26,780,414,
which is not due at that date.
Autonomous
City of Buenos Aires, March 11, 2021
|
|
PRICE WATERHOUSE & CO.
S.R.L.
|
|
|
|
|
|
C.P.C.E.C.A.B.A.
V° 1 F° 17
|
|
|
|
By:
|
/s/ Walter
Zablocky
|
|
|
|
|
Public Accountant
(UNLP)
|
|
|
|
|
C.P.C.E.C.A.B.A.
V. 340 F. 156
|
|
I. Brief comment on the Company’s activities during the
period, including references to significant events occurred after
the end of the period.
Economic context in which the Group operates
The Group operates in a complex context both due to macroeconomic
conditions, whose main variables have recently experienced strong
volatility, as well as regulatory, social, and political
conditions, both nationally and internationally.
The results from operations may be affected by fluctuations in the
inflation index and the argentine peso exchange rate against other
currencies, mainly the dollar, variations in interest rates which
have an impact on the cost of capital, changes in government
policies, capital control and other political or economic
developments both locally and internationally.
In December 2019, a new strain of coronavirus (SARS-COV-2), which
caused severe acute respiratory syndrome (COVID-19) appeared in
Wuhan, China. On March 11, 2020, the World Health Organization
declared COVID-19 a pandemic. In response, countries have taken
extraordinary measures to contain the spread of the virus,
including imposing travel restrictions and closing borders, closing
businesses deemed non-essential, instructing residents to practice
social distancing, implementing quarantines, among other measures.
The ongoing pandemic and these extraordinary government actions are
affecting global economic activity, resulting in significant
volatility in global financial markets.
On March 3, 2020, the first case of COVID-19 was registered in the
country and until February 28, 2021, more than 2,100,000 cases of infections had been confirmed in
Argentina, by virtue of which the National Government implemented a
series of health measures of social, preventive and mandatory
isolation at the national level that began on March 19, 2020 and
extended several times, most recently until November 8, 2020
inclusive in the Metropolitan Area of Buenos Aires although it has
been extended in some cities in the interior of the country. Among
these measures, that affected the local economy, the following
stand out: the extension of the public emergency in health matters,
the total closure of borders, the suspension of international and
cabotage flights, the suspension of medium and long-distance land
transport, the suspension of artistic and sports shows, closure of
businesses not considered essential, including shopping malls and
hotels.
This series of measures affected a large part of Argentine
companies, which experienced a drop in their income and
inconveniences in the payment chain. In this context, the Argentine
government announced different measures aimed at alleviating the
financial crisis of the companies affected by the COVID-19
pandemic. Likewise, it should be noted that, to the stagnation of
the Argentine economy, a context of international crisis is added
because of the COVID-19 pandemic. In this scenario, a strong
contraction of the Argentine economy was evidenced.
Additionally, the government is challenged to achieve a successful
debt renegotiation with the IMF. In the event that Argentina
achieves a favourable result and agrees to restructure its debt
with the IMF, this could have a positive impact on the Argentine
economy in the medium and long term.
At the local environment, the following circumstances are
displayed:
●
In December 2020, the monthly economic activity
estimator (EMAE) reported by the National Institute of Statistics
and Censuses (“INDEC”) registered a contraction of 2.2%
in the year-on-year comparison, and an increase of 0,9% in relation
to November. In 2020, the EMAE accumulated a fall of
10.0%.
●
The
annual inflation reached 36.1% in 2020. The survey on market
expectations prepared by the Central Bank in December 2020, called
the Market Expectations Survey (“REM” in Spanish),
estimates a retail inflation of 49.8% for 2021. The analysts who
participate in the REM foresee that in 2021 economic activity will
rebound in activity, reaching an economic growth of
5.5%.
●
In
the period from December 2019 to December 2020, the argentine peso
depreciated 40.5% against the US dollar according to the wholesale
average exchange rate of Argentine Nation Bank. Given the exchange
restrictions in force since August 2019, as of December 31, 2020
there is an exchange gap of approximately 70% between the official
price of the dollar and its price in parallel markets, which
impacts the level of activity in the economy and affects the level
of reserves of the Central Bank of the Argentine Republic.
Additionally, these exchange restrictions, or those that may be
dictated in the future, could affect the Group's ability to access
the Single Free Exchange Market (MULC in Spanish) to acquire the
foreign exchange necessary to meet its financial
obligations.
75
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
On
February 25, 2021, the Central Bank of the Argentine Republic
published Communication “A” 7230 which establishes that
those companies who register financial debts with capital
maturities in foreign currency scheduled between 04.01.2021 and
12.31.2021, must submit a refinancing plan to the BCRA based on the
following criteria: (a) that the amount net by which the exchange
market will be accessed in the original terms will not exceed 40%
of the amount of capital maturing in the period indicated above,
and (b) that the rest of the capital is, at least, refinanced with
a new external debt with an average life of 2 years, provided that
the new debt is settled in the exchange market. In the case of the
Company, the maturity of the Class XXV notes due on July 11, 2021
for a nominal value of USD 59.6 million falls within the extended
period, as well as other bank debts.
COVID-19 pandemic
As
described in the note on the economic context in which the Group
operates, the COVID-19 pandemic is adversely impacting both the
global economy and the Argentine economy and the Group's
business.
The
current estimated impacts of the COVID-19 pandemic on the Company
as of the date of these financial statements are set out
below:
●
The
agricultural business of Cresud and its subsidiaries in Brazil,
Paraguay and Bolivia continued to operate relatively normally;
since the agricultural activity has been considered an essential
activity in the countries where the Company operates. In any case,
the effect of Covid-19 could cause changes in demand on a global
scale and affect the prices of commodities in the international and
local markets in the short term.
●
Because of the
social, preventive, and obligatory isolation, shopping malls
throughout the country were closed since March 20, 2020, leaving
exclusively those premises dedicated to items considered essential
such as pharmacies, supermarkets and banks. Given the closure of
the shopping malls, the Group has decided to condone the billing
and collection of the Insured Monthly Value until September 30,
2020, with some exceptions and to subsidize the collective
promotion fund during the same period, prioritizing the long-term
relationship with its tenants. From October to date, all the
Group's shopping malls are open operating with strict protocols
that include reduced hours and public restrictions, social
distancing, among other safety and hygiene measures.
●
In relation to the
offices business, although most of the tenants are working in the
home office mode, they are operational with strict safety and
hygiene protocols.
●
In the case of
hotels, the reopening took place in the months of November and
December 2020 under strict protocols. Those located in the city of
Buenos Aires are working with low occupancy levels because of
foreign tourism restrictions. However, the Llao Llao hotel in
Bariloche showed high occupancy in the summer months due to the
influx of domestic tourism.
Regarding debt maturities during the second quarter of fiscal year
2021, the Group had notes maturities within the period contemplated
by provision “A” 7106 of the BCRA: Cresud Class XXIV
for a nominal value of USD 73.6 million due on November 14, 2020
and IRSA Class I for a nominal value of USD 181.5 million due on
November 15, 2020, as well as other bank debts. Cresud and IRSA
presented a proposal to the Central Bank within the corresponding
deadlines and carried out exchange offers for said Notes. Cresud
through the cash cancellation of USD 29.2 million and the issuance
of two new series of Class XXXI and Class XXXII Negotiable
Obligations for a nominal value of USD 1.3 million and USD 34.3
million, respectively. For its part, IRSA did it through the cash
cancellation of USD 72.6 million and the issuance of two new series
of Class VIII and Class IX Negotiable Obligations for a nominal
value of USD 31.7 million and USD 80.7 million (including USD 6.5
million of new subscription).
76
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Regarding the financial debt of the Group in the next 12
months:
●
Cresud
faces the maturity of its Class XXVI Negotiable Obligations in
January 2021 for a nominal value of ARS 995 million (approximately
USD 11.8 million) totally canceled as of the date of release of
these financial statements, Class XXVIII in April 2021 for a
nominal value of USD 27.5 million, Classes XXV and XXVII in July
2021 for a nominal value of USD 59.6 million (included in
Communication 7,230 of Argentine Central Bank) and USD 5.7 million
respectively and Class XXIX in December 2021 for a nominal value of
USD 83.0 million. Likewise, Cresud has bank overdrafts for USD 49.9
million and other bank debt for USD 57.5 million. As of December
31, it had a liquidity position of approximately USD 39.2 million.
After the end of the quarter, as a result of the capital increase,
the company received approximately USD 42.5 million.
●
The
subsidiary IRSA faces the maturity of its Class III Negotiable
Obligations for a nominal value of ARS 247.8 million (equivalent to
USD 2.9 million) maturing on February 21, 2021 totally canceled as
of the date of release of these financial statements, Class IV
Negotiable Obligations for a nominal value of USD 51.4 million
maturing on May 21, 2021, Class VI Negotiable Obligations for a
nominal value of ARS 335 million (equivalent to USD 4.0 million)
maturing on July 21, 2021, Class VIII Negotiable Obligations for a
nominal value of USD 10.5 million (33% of the capital) due on
November 12, 2021, bank overdrafts for the equivalent of USD 27.6
million and other bank debt for USD 13.7 million. For its part,
IRSA PC has bank debt maturities for the approximate sum of USD
24.6 million.
●
It
is important to mention that IRSA has approved with IRSA PC a line
of credit for up to the sum of USD 180 million for 3 years, of
which as of December 31, 2020 IRSA used approximately USD 62.6
million, leaving the balance available. Likewise, IRSA PC has a
cash position and equivalents (including current financial
investments) as of December 31, 2020 of approximately USD 84.9
million.
The final extent of the Coronavirus outbreak and its impact on the
country's economy is unknown and difficult to fully predict.
However, although it has produced significant short-term effects,
they are not expected to affect business continuity and the
Company’s ability to meet financial commitments for the next
twelve months.
The Company is closely monitoring the situation and taking all
necessary measures to preserve human life and the Group's
businesses.
77
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Consolidated Results
|
(In ARS million)
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
20,168
|
27,760
|
(27.3)%
|
|
Costs
|
(15,509)
|
(18,421)
|
(15.8)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce at the point of harvest
|
1,679
|
1,700
|
(1.2)%
|
|
Changes
in the net realizable value of agricultural produce after
harvest
|
259
|
574
|
(54.9)%
|
|
Gross profit
|
6,597
|
11,613
|
(43.2)%
|
|
Net
gain from fair value adjustment on investment
properties
|
9,023
|
5,156
|
75.0%
|
|
Gain
from disposal of farmlands
|
91
|
407
|
(77.6)%
|
|
General
and administrative expenses
|
(2,295)
|
(2,491)
|
(7.9)%
|
|
Selling
expenses
|
(2,314)
|
(2,499)
|
(7.4)%
|
|
Other
operating results, net
|
(1,881)
|
567
|
(431.7)%
|
|
Result from operations
|
9,221
|
12,753
|
(27.7)%
|
|
Depreciation
and Amortization
|
1,289
|
1,140
|
13.1%
|
|
EBITDA (unaudited)
|
10,510
|
13,893
|
(24.4)%
|
|
Adjusted EBITDA (unaudited)
|
8,894
|
8,069
|
10.2%
|
|
Loss
from joint ventures and associates
|
(487)
|
(1,284)
|
(62.1)%
|
|
Result from operations before financing and taxation
|
8,734
|
11,469
|
(23.8)%
|
|
Financial
results, net
|
(789)
|
(15,676)
|
(95.0)%
|
|
Result before income tax
|
7,945
|
(4,207)
|
-
|
|
Income
tax expense
|
(4,089)
|
(3,707)
|
10.3%
|
|
Result for the period from continued operations
|
3,856
|
(7,914)
|
-
|
|
Result
from discontinued operations after income tax
|
(7,120)
|
10,192
|
(169.9)%
|
|
Result for the period
|
(3,264)
|
2,278
|
(243.3)%
|
|
|
|
|
|
|
Attributable to
|
|
|
|
|
Equity
holder of the parent
|
(3,002)
|
(6,461)
|
(53.5)%
|
|
Non-controlling
interest
|
(262)
|
8,739
|
(103.0)%
|
Consolidated revenues decreased by 27.3% in first semester of fiscal year 2021 compared
to the same period of 2020, while adjusted EBITDA reached ARS 8.894
million, 10.2% higher than in the same period of fiscal year 2020.
Agribusiness adjusted EBITDA was ARS 1,354 and urban properties and
investments business (IRSA) adjusted EBITDA was ARS 7,540
million.
The net result for the first semester of fiscal year 2021 recorded
a loss of ARS 3,264 million compared to a gain of ARS 2,278 million
in the same period of 2020.
The profit from continuing operations
shows a gain of ARS 3,856 million, compared to a loss of ARS 7,914
million in the same period of the previous fiscal year. This
significant increase is explained by higher results from changes in
the fair value of investment properties from our subsidiary IRSA
and lower losses from net financial results. On the other hand, the
result of discontinued operations reflects a loss of ARS 7,120
million because of the deconsolidation of the investment in Israel
as of September 30, 2020, explained by the operating result for the
period and the loss due to the derecognition of remaining assets
and associated reserves.
78
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Description of Operations by Segment
|
6M 2021
|
Agribusiness
|
Urban Properties and Investments
|
Total
|
6M 21 vs. 6M 20
|
|
Revenues
|
15,795
|
3,854
|
19,649
|
(25.4)%
|
|
Costs
|
(13,353)
|
(1,422)
|
(14,775)
|
(11.2)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce at the point of harvest
|
1,647
|
-
|
1,647
|
9.6%
|
|
Changes
in the net realizable value of agricultural produce after
harvest
|
259
|
-
|
259
|
(54.9)%
|
|
Gross profit
|
4,348
|
2,432
|
6,780
|
(42.5)%
|
|
Net
gain from fair value adjustment on investment
properties
|
50
|
9,481
|
9,531
|
73.3%
|
|
Gain
from disposal of farmlands
|
91
|
-
|
91
|
(77.6)%
|
|
General
and administrative expenses
|
(786)
|
(1,542)
|
(2,328)
|
(8.0)%
|
|
Selling
expenses
|
(1,587)
|
(793)
|
(2,380)
|
(4.3)%
|
|
Other
operating results, net
|
(1,780)
|
(104)
|
(1,884)
|
(461.6)%
|
|
Result from operations
|
336
|
9,474
|
9,810
|
(25.7)%
|
|
Share
of profit of associates
|
(32)
|
(808)
|
(840)
|
(45.6)%
|
|
Segment result
|
304
|
8,666
|
8,970
|
(23.0)%
|
2021 Campaign
The year 2020 was dominated by the COVID-19 pandemic, which
originated in China and subsequently spread to numerous countries,
generating uncertainty and volatility in the markets, adversely
impacting the global, Argentine and regional economy. Our
agricultural operations continued their development normally as
agricultural production was an essential activity to guarantee the
supply of food.
The 2021 campaign is presented with radical changes from what was
observed in the market at the end of the previous year. As of
August, the United States reduced its sowing intention on the main
crops and South America began to show indicators of lack of water.
China activated its demand and this, added to the weakness of the
dollar in the world, pushed the international prices of commodities
upwards. Soybeans
and corn recovered their prices in the last year approximately
between 40-50%. The challenge will be in the climatic evolution in
the region in the coming months where the harvest will take place
given that the crops went through periods of lack of water so far
this cycle. If the conditions are good and we achieve good
agricultural yields, we expect a campaign with excellent
results.
79
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Our Portfolio
Our portfolio under management, as of December 31, 2020, was
composed of 761,792 hectares, of which 296,233 are in operation and
465,559 are land reserves distributed among the four countries in
the region where we operate: Argentina, with a mixed model
combining land development and agricultural production; Bolivia,
with a productive model in Santa Cruz de la Sierra; and through our
subsidiary BrasilAgro, Brazil and Paraguay, where the strategy is
mainly focused on the development of lands.
Breakdown of Hectares
Own and under Concession (*)
(**) (***)
|
|
Productive Lands
|
|
|
|
|
|
Agricultural
|
Cattle
|
Reserved
|
Total
|
|
Argentina
|
60,305
|
144,773
|
331,511
|
536,589
|
|
Brazil
|
60,280
|
7,148
|
88,316
|
155,744
|
|
Bolivia
|
8,858
|
-
|
1,017
|
9,875
|
|
Paraguay
|
12,382
|
2,487
|
44,715
|
59,584
|
|
Total
|
141,825
|
154,408
|
465,559
|
761,792
|
(*)
Includes Brazil, Paraguay, Agro-Uranga
S.A. at 35.723% and 132,000 hectares under
Concession.
(**)
Includes 85,000 hectares intended for
sheep breeding
(***)
Excludes double
crops.
Leased (*)
|
|
Agricultural
|
Cattle
|
Other
|
Total
|
|
Argentina
|
57,595
|
12,635
|
450
|
70,680
|
|
Brazil
|
48,516
|
-
|
2,231
|
50,747
|
|
Bolivia
|
640
|
-
|
-
|
640
|
|
Total
|
106,751
|
12,635
|
2,681
|
122,067
|
(*)
Excludes double
crops.
Segment Income – Agricultural Business
I)
Land Development and Sales
We periodically sell properties that have reached a considerable
appraisal to reinvest in new farms with higher appreciation
potential. We analyze the possibility of selling based on a number
of factors, including the expected future yield of the farmland for
continued agricultural and livestock exploitation, the availability
of other investment opportunities and cyclical factors that have a
bearing on the global values of farmlands.
During the first semester of fiscal year 2021, no farmland sales
were made. In Other operating results is observed the effect of the
valuation of accounts receivables related to sales made by our
subsidiary Brasilagro during fiscal year 2020.
|
in ARS million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
-
|
-
|
-
|
|
Costs
|
(15)
|
(16)
|
(6.25)%
|
|
Gross loss
|
(15)
|
(16)
|
(6.25)%
|
|
Net
gain from fair value adjustment on investment
properties
|
50
|
16
|
212.50%
|
|
Gain
from disposal of farmlands
|
91
|
407
|
(77.64)%
|
|
General
and administrative expenses
|
(2)
|
(1)
|
100.00%
|
|
Other
operating results, net
|
1,346
|
289
|
365.74%
|
|
Profit from operations
|
1,470
|
695
|
111.51%
|
|
Segment profit
|
1,470
|
695
|
111.51%
|
|
EBITDA
|
1,472
|
698
|
110.89%
|
|
Adjusted EBITDA
|
1,422
|
680
|
109.12%
|
II)
Agricultural Production
80
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
The result of the Farming segment decreased by ARS 3,360 million,
from ARS 2,100 million gain during the first semester of fiscal
year 2020 to a ARS 1,260 million loss during the same period of
2021.
|
in ARS million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
9,866
|
11,364
|
(13.2)%
|
|
Costs
|
(8,391)
|
(9,669)
|
(13.2)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce at the point of harvest
|
1,647
|
1,477
|
11.5%
|
|
Changes
in the net realizable value of agricultural produce after
harvest
|
259
|
574
|
(54.9)%
|
|
Gross profit
|
3,381
|
3,746
|
-9.7)%
|
|
General
and administrative expenses
|
(467)
|
(591)
|
(21.0)%
|
|
Selling
expenses
|
(987)
|
(1,242)
|
(20.5)%
|
|
Other
operating results, net
|
(3,179)
|
149
|
(2,233.6)%
|
|
(Loss) / Profit from operations
|
(1,252)
|
2,062
|
(160.7)%
|
|
Profit
from associates
|
(8)
|
38
|
(121.1)%
|
|
Segment (Loss) / Profit
|
(1,260)
|
2,100
|
(160.0)%
|
|
EBITDA
|
(245)
|
2,837
|
(108.6)%
|
|
Adjusted EBITDA
|
(245)
|
2,837
|
(108.6)%
|
II.a) Crops and Sugarcane
Crops
|
in ARS million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
5,820
|
7,202
|
(19.2)%
|
|
Costs
|
(5,162)
|
(5,920)
|
(12.8)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce at the point of harvest
|
782
|
120
|
551.7%
|
|
Changes
in the net realizable value of agricultural produce after
harvest
|
259
|
574
|
(54.9)%
|
|
Gross profit
|
1,699
|
1,976
|
(14.0)%
|
|
General
and administrative expenses
|
(293)
|
(346)
|
(15.3)%
|
|
Selling
expenses
|
(827)
|
(1,067)
|
(22.5)%
|
|
Other
operating results, net
|
(3,125)
|
147
|
-
|
|
(Loss) / Profit from operations
|
(2,546)
|
710
|
-
|
|
Share
of loss of associates
|
(8)
|
38
|
-
|
|
Activity (Loss) / Profit
|
(2,554)
|
748
|
-
|
Sugarcane
|
in ARS million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
2,818
|
2,968
|
(5.1)%
|
|
Costs
|
(2,201)
|
(2,776)
|
(20.7)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce at the point of harvest
|
786
|
1,458
|
(46.1)%
|
|
Gross profit
|
1,403
|
1,650
|
(15.0)%
|
|
General
and administrative expenses
|
(88)
|
(147)
|
(40.1)%
|
|
Selling
expenses
|
(81)
|
(83)
|
(2.4)%
|
|
Other
operating results, net
|
(54)
|
(1)
|
5,300.0%
|
|
Profit from operations
|
1,180
|
1,419
|
(16.8)%
|
|
Activity profit
|
1,180
|
1,419
|
(16.8)%
|
81
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Operations
|
Production Volume1)
|
6M21
|
6M20
|
6M19
|
6M18
|
6M17
|
|
Corn
|
185,889
|
286,685
|
108,173
|
257,650
|
227,042
|
|
Soybean
|
10,079
|
14,077
|
13,178
|
11,088
|
4,649
|
|
Wheat
|
35,029
|
35,590
|
31,074
|
31,193
|
29,360
|
|
Sorghum
|
795
|
3,229
|
1,049
|
606
|
732
|
|
Sunflower
|
-
|
(1)
|
951
|
2,181
|
55
|
|
Cotton
|
6,818
|
3,237
|
-
|
-
|
-
|
|
Beans
|
-
|
-
|
-
|
-
|
-
|
|
Others
|
3,298
|
3,840
|
1,947
|
1,171
|
2,150
|
|
Total Crops (tons)
|
241,908
|
346,657
|
156,372
|
303,889
|
263,988
|
|
Sugarcane (tons)
|
1,679,465
|
1,634,521
|
1,431,109
|
911,759
|
554,260
|
|
Volume of
|
6M21
|
6M20
|
6M19
|
6M18
|
6M17
|
||||||||||
|
Sales (1)
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
|
Corn
|
218.9
|
70.0
|
288.9
|
238.4
|
54.3
|
292.7
|
113.0
|
-
|
113.0
|
206.0
|
6.0
|
212.0
|
196.1
|
-
|
196.1
|
|
Soybean
|
84.8
|
23.3
|
108.1
|
117.0
|
42.3
|
159.3
|
53.0
|
42.6
|
95.6
|
69.8
|
5.8
|
75.6
|
53.1
|
-
|
53.1
|
|
Wheat
|
15.9
|
1.3
|
17.2
|
19.7
|
-
|
19.7
|
13.4
|
-
|
13.4
|
23.4
|
-
|
23.4
|
1.2
|
1.0
|
2.2
|
|
Sorghum
|
-
|
-
|
-
|
-
|
-
|
-
|
0.2
|
-
|
0.2
|
-
|
-
|
-
|
0.7
|
-
|
0.7
|
|
Sunflower
|
-
|
-
|
-
|
5.8
|
-
|
5.8
|
2.1
|
-
|
2.1
|
0.5
|
-
|
0.5
|
0.6
|
-
|
0.6
|
|
Cotton
|
2.6
|
-
|
2.6
|
1.8
|
1.4
|
3.2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Beans
|
0.3
|
1.0
|
1.3
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Others
|
2.9
|
-
|
2.9
|
2.1
|
-
|
2.1
|
0.2
|
-
|
0.2
|
0.8
|
-
|
0.8
|
2.1
|
-
|
2.1
|
|
Total Crops (thousands of tons)
|
325.4
|
95.6
|
421.0
|
384.8
|
98.0
|
482.8
|
181.9
|
42.6
|
224.5
|
300.5
|
11.8
|
312.3
|
253.8
|
1.0
|
254.8
|
|
Sugarcane (thousands of tons)
|
1,560.3
|
-
|
1,560.3
|
1,414.6
|
-
|
1,414.6
|
1,234.8
|
-
|
1,234.8
|
554.1
|
-
|
554.1
|
827.3
|
-
|
827.3
|
D.M.:
Domestic market
F.M.:
Foreign market
(1)
Includes Brasilagro, CRESCA at 50%,
Acres del Sud, Ombú, Yatay and Yuchán. Excludes
Agro-Uranga.
Results from the Grains activity decreased by ARS 3,302 million,
from ARS 748 million gain during the first semester of fiscal year
2020 to ARS 2,554 million loss during the same period of 2021,
mainly because of:
●
Lower
results in Argentina, due to a loss from grain derivatives (mainly
soybeans and corn) for upward trend in future prices, and a lower
gain in the gross margin of sales and holding results, because of
the lower stock left by the 19-20 campaign in comparison to the
previous period.
●
Lower
results in Brazil, mainly due to the negative result generated by
commodity derivatives in IIQ 21, partially offset by higher
productive results in grains and cotton.
The result of the Sugarcane activity decreased by ARS 239 million,
from a gain of ARS 1,419 million in the first semester of fiscal
year 2020 to a gain of ARS 1,180 million in the same period of
2021. This is mainly due to a lower productive result of Brazil,
mainly due to higher production costs and less planted area, offset
by higher sales results, due to better prices and lower
administrative expenses.
|
Area in
Operation (hectares) (1)
|
As of 12/31/20
|
As of 12/31/19
|
YoY Var
|
|
Own
farms
|
111,033
|
103,548
|
7.2%
|
|
Leased
farms
|
132,056
|
136,997
|
(3.6)%
|
|
Farms
under concession
|
22,324
|
25,609
|
(12.8)%
|
|
Own
farms leased to third parties
|
25,323
|
13,837
|
83.0%
|
|
Total Area Assigned to Production
|
290,736
|
279,991
|
3.8%
|
(1) Includes
Agro-Uranga, Brazil and Paraguay,
The area in operation assigned to the crops and sugarcane activity
increased by 3.8% as compared to the same period of the previous
fiscal year.
82
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
II.b) Cattle Production
|
Production Volume (1)
|
6M21
|
6M20
|
6M19
|
6M18
|
6M17
|
|
Cattle
herd (tons)
|
4,543
|
5,354
|
5,467
|
4,731
|
4,448
|
|
Milking
cows (tons)
|
-
|
-
|
-
|
186
|
258
|
|
Cattle (tons)
|
4,543
|
5,354
|
5,467
|
4,917
|
4,706
|
(1)
Includes
Carnes Pampeanas
|
Volume of
|
6M21
|
6M20
|
6M19
|
6M18
|
6M17
|
||||||||||
|
Sales (1)
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
D.M
|
F.M
|
Total
|
|
Cattle
herd
|
8.5
|
-
|
8.5
|
9.3
|
-
|
9.3
|
4.9
|
-
|
4.9
|
5.5
|
-
|
5.5
|
4.3
|
-
|
4.3
|
|
Milking cows (2)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1.3
|
-
|
1.3
|
0.7
|
-
|
0.7
|
|
Cattle (thousands of tons)
|
8.5
|
-
|
8.5
|
9.3
|
-
|
9.3
|
4.9
|
-
|
4.9
|
6.8
|
-
|
6.8
|
5.0
|
-
|
5.0
|
D.M.:
Domestic market
F.M.:
Foreign market
(1)
Includes Carnes
Pampeanas
(2)
Milk was
discontinued on IIQ 2018
Cattle
|
In ARS Million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
1,113
|
1,043
|
6.7%
|
|
Costs
|
(881)
|
(890)
|
(1.0)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce
|
79
|
(101)
|
-
|
|
Gross Profit
|
311
|
52
|
498.1%
|
|
General
and administrative expenses
|
(63)
|
(60)
|
5.0%
|
|
Selling
expenses
|
(65)
|
(76)
|
(14.5)%
|
|
Other
operating results, net
|
13
|
3
|
333.3%
|
|
Profit / (Loss) from operations
|
196
|
(81)
|
-
|
|
Activity Profit / (Loss)
|
196
|
(81)
|
-
|
|
Area in operation – Cattle (hectares) (1)
|
As of 12/31/20
|
As of 12/31/19
|
YoY Var
|
|
Own
farms
|
64,986
|
72,061
|
(9.8)%
|
|
Leased
farms
|
12,635
|
12,635
|
-
|
|
Farms
under concession
|
3,097
|
2,993
|
3.5%
|
|
Own
farms leased to third parties
|
1,775
|
1,775
|
-
|
|
Total Area Assigned to Cattle Production
|
82,493
|
89,464
|
(7.8)%
|
(1)
Includes Agro-Uranga, Brazil and Paraguay,
|
Stock of Cattle Heard
|
As of 12/31/20
|
As of 12/31/19
|
YoY Var
|
|
Breeding
stock
|
71,721
|
85,423
|
(16.0)%
|
|
Winter
grazing stock
|
5,816
|
16,860
|
(65.5)%
|
|
Sheep
stock
|
12,811
|
11,071
|
15.7%
|
|
Total Stock (heads)
|
90,348
|
113,354
|
(20.3)%
|
The result of the Cattle activity increased by ARS 277 million:
from a ARS 81 million loss during first semester of fiscal year
2020 to a ARS 196 million gain in the same period of 2021, as a
result of a positive variation in the holding result as well as
selling results of live cattle, because prices for this fiscal year
raised at a higher pace than inflation.
83
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
II.c) Agricultural Rental and Services
|
In ARS Million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
115
|
151
|
(23.8)%
|
|
Costs
|
(147)
|
(83)
|
77.1%
|
|
Gross (loss) / profit
|
(32)
|
68
|
-
|
|
General
and Administrative expenses
|
(23)
|
(38)
|
(39.5)%
|
|
Selling
expenses
|
(14)
|
(16)
|
(12.5)%
|
|
Other
operating results, net
|
(13)
|
-
|
-
|
|
(Loss) / Profit from operations
|
(82)
|
14
|
-
|
|
Activity (Loss) / Profit
|
(82)
|
14
|
-
|
The result of the activity was reduced by ARS 96 million, from a
gain of ARS 14 million in the first semester of fiscal year 2020 to
a loss of ARS 82 million in the same period of 2021.
III) Other Segments
We include within "Others" the results coming from our
Agroindustrial activity, developed in our meatpacking facility in
La Pampa and our investment in FyO.
The result of the segment decreased by ARS 210 million, going from
a gain of ARS 507 million for the first semester of fiscal year
2020 to a gain of ARS 297 million for the same period of 2021,
mainly due to:
●
An
increase in the operating profit of FyO originated mainly by higher
results from commissions of stockpiling operations and consignment
of grains, and lower selling expenses due to the context of the
pandemic, partially offset by lower margins in grain brokerage
commissions, and a decrease in the sale of inputs.
●
A
negative variation in associates results corresponding to Agrofy
S.A.
●
A
loss from Carnes Pampeanas, mainly originated by a decrease in the
sales result, lower volume sold in the local market and lower
average sales prices, which was partially offset by an increase in
the volume of sales to the foreign market, but at lower average
prices when compared to the previous period.
|
In ARS Million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
5,929
|
6,091
|
(2.7)%
|
|
Costs
|
(4,947)
|
(5,074)
|
(2.5)%
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural produce at the point of harvest
|
-
|
26
|
(100.0)%
|
|
Gross profit
|
982
|
1,043
|
(5.8)%
|
|
General
and administrative expenses
|
(185)
|
(184)
|
0.5%
|
|
Selling
expenses
|
(600)
|
(515)
|
16.5%
|
|
Other
operating results, net
|
53
|
122
|
(56.6)%
|
|
Profit from operations
|
250
|
466
|
(46.4)%
|
|
Profit
from associates
|
(24)
|
173
|
(113.9)%
|
|
Segment Profit
|
226
|
639
|
(64.6)%
|
|
EBITDA
|
297
|
507
|
(41.4)%
|
|
Adjusted EBITDA
|
297
|
507
|
(41.4)%
|
IV) Corporate Segment
The negative result of the segment decreased by ARS 6 million, from
a loss of ARS 138 million in the first semester of fiscal year 2020
to a loss of ARS 132 million in the same period of fiscal year
2021.
|
In ARS Million
|
6M 21
|
6M 20
|
YoY Var
|
|
General
and administrative expenses
|
(132)
|
(138)
|
(4.3)%
|
|
Loss from operations
|
(132)
|
(138)
|
4.3)%
|
|
Segment loss
|
(132)
|
(138)
|
4.3)%
|
|
EBITDA
|
(130)
|
(137)
|
(5.1)%
|
|
Adjusted EBITDA
|
(130)
|
(137)
|
(5.1)%
|
84
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Urban Properties and Investments Business (through our subsidiary
IRSA Inversiones y Representaciones Sociedad
Anónima)
We develop our Urban Properties and Investments segment through our
subsidiary IRSA. As of December 31, 2020, our direct and indirect
equity interest in IRSA was 62.3% over stock capital.
Consolidated Results of our Subsidiary IRSA Inversiones y
Representaciones S,A,
|
In ARS million
|
6M 21
|
6M 20
|
YoY Var
|
|
Revenues
|
4,944
|
10,899
|
(54.6)%
|
|
Profit
from operations
|
8,875
|
9,658
|
(8.1)%
|
|
EBITDA
|
9,707
|
10,421
|
(6.9)%
|
|
Adjusted EBITDA
|
8,141
|
4,615
|
76.4%
|
|
Segment Result
|
8,666
|
8,357
|
3.7%
|
Consolidated revenues from sales, rentals and services decreased by
54.6% in the first semester of fiscal year 2021 compared to the
same period in 2020, while adjusted EBITDA, which excludes the
effect of the result from changes in the unrealized fair value of
investment properties reached ARS 8,141 million, 76.4% higher than
the same period of fiscal year 2020.
Financial Indebtedness and Other
The following tables contain a breakdown of company’s
indebtedness:
Agricultural Business
|
Description
|
Currency
|
Amount (USD MM)(2)
|
Interest Rate
|
Maturity
|
|
Bank
overdrafts
|
ARS
|
49.9
|
Variable
|
<
360 days
|
|
Series
XXVI NCN
|
ARS
|
11.8
|
Variable
|
Jan-21
|
|
Series
XVIII NCN
|
USD
|
27.5
|
9.00%
|
Apr-21
|
|
Series
XXV NCN
|
USD
|
59.6
|
9.00%
|
Jul-21
|
|
Series
XXVII NCN
|
USD
|
5.7
|
7.45%
|
Jul-21
|
|
Series
XXIX NCN
|
USD
|
83.0
|
3.50%
|
Dec-21
|
|
Series
XXXII NCN
|
USD
|
34.3
|
9.00%
|
Nov-22
|
|
Series XXIII NCN (1)
|
USD
|
113.0
|
6.50%
|
Feb-23
|
|
Series
XXX NCN
|
USD
|
25.0
|
2.00%
|
Ago-23
|
|
Series
XXXI NCN
|
USD
|
1.1
|
9.00%
|
Nov-23
|
|
Other
debt
|
|
64.4
|
-
|
-
|
|
CRESUD’s Total Debt (3)
|
USD
|
475.3
|
|
|
|
Cash and cash equivalents (3)
|
USD
|
39.2
|
|
|
|
CRESUD’s Net Debt
|
USD
|
436.1
|
|
|
|
Brasilagro’s Total Net Debt
|
USD
|
75.1
|
|
|
(1)
Net of repurchases
(2)
Principal amount stated in USD (million) at an exchange rate of
84.15 ARS/USD and 5.194 BRL/USD, without considering accrued
interest or elimination of balances with subsidiaries.
(3)
Helmir & CRESUD stand-alone.
85
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Urban Properties and Investments Business
The following table describes our total indebtedness as of December
31, 2020:
|
Description
|
Currency
|
Amount (USD MM) (1)
|
Interest Rate
|
Maturity
|
|
Bank
overdrafts
|
ARS
|
27.6
|
Floating
|
<
360 days
|
|
Series
III NCN
|
ARS
|
2.9
|
Variable
|
Feb-21
|
|
Series
IV NCN
|
USD
|
51.4
|
7.0%
|
May-21
|
|
Series
VI NCN
|
ARS
|
4.0
|
Floating
|
Jul-21
|
|
Series
VII NCN
|
USD
|
33.7
|
4.0%
|
Jan-22
|
|
Series
V NCN
|
USD
|
9.2
|
9.0%
|
May-22
|
|
Series
IX NCN
|
USD
|
80.7
|
10.0%
|
Mar-23
|
|
Series
I NCN
|
USD
|
3.1
|
10.0%
|
Mar-23
|
|
Series
VIII NCN
|
USD
|
31.7
|
10.0%
|
Nov-23
|
|
Loan with IRSA CP(3)
|
ARS
|
62.6
|
-
|
Mar-22
|
|
Other
debt
|
USD
|
16.6
|
-
|
Feb-22
|
|
IRSA’s Total Debt
|
USD
|
323.5
|
|
|
|
Cash
& Cash Equivalents + Investments
|
USD
|
0.7
|
|
|
|
IRSA’s Net Debt
|
USD
|
322.8
|
|
|
|
Bank
loans and overdrafts
|
ARS
|
24.6
|
-
|
<
360 days
|
|
PAMSA
loan
|
USD
|
25.2
|
Fixed
|
Feb-23
|
|
IRSA
CP NCN Class II
|
USD
|
360.0
|
8.75%
|
Mar-23
|
|
IRSA CP’s Total Debt
|
USD
|
409.8
|
|
|
|
Cash & Cash Equivalents + Investments
(2)
|
USD
|
84.9
|
|
|
|
Intercompany
Credit
|
ARS
|
62.6
|
|
|
|
IRSA CP’s Net Debt
|
USD
|
262.3
|
|
|
(1)
Principal
amount in USD (million) at an exchange rate of ARS 84.15/USD,
without considering accrued interest or eliminations of balances
with subsidiaries.
(2)
Includes Cash and cash equivalents, Investments in
Current Financial Assets and related
companies notes holding.
(3)
Includes
amounts taken by IRSA and subsidiaries.
Comparative Summary Consolidated Balance Sheet Data
|
In ARS million
|
Dec-20
|
Dec-19
|
|
Current
assets
|
39,962
|
276,879
|
|
Non-current
assets
|
233,520
|
546,412
|
|
Total assets
|
273,482
|
823,291
|
|
Current
liabilities
|
67,894
|
207,172
|
|
Non-current
liabilities
|
113,989
|
469,720
|
|
Total liabilities
|
181,883
|
676,892
|
|
Total
capital and reserves attributable to the shareholders of the
controlling company
|
30,015
|
30,153
|
|
Minority
interests
|
61,584
|
116,246
|
|
Shareholders’ equity
|
91,599
|
146,399
|
|
Total liabilities plus minority interests plus shareholders’
equity
|
273,482
|
823,291
|
Comparative Summary Consolidated Statement of Income
Data
|
In ARS million
|
Dec-20
|
Dec-19
|
|
Gross
profit
|
6,597
|
11,613
|
|
Profit from operations
|
9,221
|
12,753
|
|
Share
of profit of associates and joint ventures
|
(487)
|
(1,284)
|
|
Profit
from operations before financing and taxation
|
8,734
|
11,469
|
|
Financial
results, net
|
(789)
|
(15,676)
|
|
Loss
before income tax
|
7,945
|
(4,207)
|
|
Income
tax expense
|
(4,089)
|
(3,707)
|
|
Result
of the period of continuous operations
|
3,856
|
(7,914)
|
|
Result
of discontinued operations after taxes
|
(7,120)
|
10,192
|
|
Result for the period
|
(3,264
|
2,278
|
|
Controlling
company’s shareholders
|
(3,002)
|
(6,461)
|
|
Non-controlling
interest
|
(262)
|
8,739
|
86
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Comparative Summary Consolidated Statement of Cash Flow
Data
|
In ARS million
|
Dec-20
|
Dec-19
|
|
Net
cash generated by operating activities
|
3,252
|
26,500
|
|
Net
cash generated by investment activities
|
50,572
|
18,494
|
|
Net
cash used in financing activities
|
(45,657)
|
(65,465)
|
|
Total net cash (used in) / generated during the fiscal
period
|
8,167
|
(20,471)
|
Ratios
|
In ARS million
|
Dec-20
|
Dec-19
|
|
Liquidity
(1)
|
0.589
|
1.336
|
|
Solvency
(2)
|
0.504
|
0.216
|
|
Restricted capital
(3)
|
0.854
|
0.664
|
(1)
Current Assets / Current Liabilities
(2)
Total Shareholders’ Equity/Total Liabilities
(3)
Non-current Assets/Total Assets
Material events of the quarter and subsequent events
October 2020: General Ordinary and Extraordinary
Shareholders’ Meeting
On October 26, 2020, our General Ordinary and Extraordinary
Shareholders’ Meeting was held. The following matters. inter
alia, were resolved by majority of votes:
●
Allocation
of net income for the fiscal year ended June 30, 2020 to the legal
reserve and unappropriated retained earnings.
●
Not
to distribute dividends as a result of the absorption of
losses.
●
Designation
of board members.
●
Compensations
to the Board of Directors for the fiscal year ended June 30,
2019
●
Incentive
plan for employees. management and directors to be integrated
without premium for up to 1% of the Capital Stock.
On November 12, 2020, the company carried out an exchange operation
of its Series XXIV Notes, for a nominal value of USD 73.6
million
Nominal Value of Existing Notes presented and accepted for the
Exchange (for both Series): approximately USD 65.1 million which
represents 88.41% acceptance, through the participation of 1,098
orders.
●
Series XXXI: Face
Value of Existing Notes presented and accepted for the Exchange:
approximately USD 30.8 million.
-
Nominal Value to be
Issued: approximately USD 1.3 million.
-
Issuance Price:
100% nominal value.
-
Maturity Date: It
will be November 12, 2023.
-
Consideration of
the Exchange Offer: eligible holders whose existing notes have been
accepted for the Exchange by the Company, will receive for every
USD 1 submitted to the Exchange, the accrued interest of the
existing notes until the settlement and issue date and the
following:
■
A sum of money of
approximately USD 29.4 million for repayment of capital of such
existing notes presented to the Exchange, in cash, in United States
Dollars, which will be equivalent to USD 0.95741755 for each USD 1
of existing notes presented to the Exchange; and
■
The remaining
amount until completing 1 USD for each 1 USD of existing notes
presented to the Exchange, in notes Series XXXI.
-
Annual Nominal
Fixed Interest Rate: 9.00%.
87
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
-
Amortization: The
capital of the Series XXXI Notes will be amortized in 3 annual
installments (33% of the capital on November 12, 2021, 33% of the
capital on November 12, 2022, 34% of the capital on the maturity
date of Series XXXI).
-
Interest Payment
Dates: Interest will be paid quarterly for the expired period as of
the issue and settlement date.
-
Payment Address:
Payment will be made to an account at Argentine Securities
Commission in the Autonomous City of Buenos Aires
●
Series XXXII: Face
Value of Existing Notes presented and accepted for the Exchange:
approximately USD 34.3 million.
-
Nominal Value to be
Issued: approximately USD 34.3 million.
-
Issuance Price:
100% nominal value.
-
Maturity Date: It
will be November 12, 2022.
-
Consideration of
the Exchange Offer: the eligible holders whose existing notes have
been accepted for the Exchange by the Company, will receive Series
XXXII Notes for 100% of the capital amount presented for exchange
and accepted by the Company and the accrued interest of the
existing notes until the settlement and issue date.
-
Early Bird: will
consist of the payment of USD 0.02 for each USD 1 of existing notes
delivered and accepted in the Exchange on or before the deadline
date to Access the Early Bird. Said consideration will be paid in
Pesos on the issue and settlement date according to the exchange
rate published by Communication “A” 3500 of the Central
Bank of Argentina on the business day prior to the expiration date
of the Exchange, which is ARS 79.3433 for each USD 1 of Existing
Notes delivered and accepted in the Exchange.
-
Annual Nominal
Fixed Interest Rate: 9.00%.
-
Amortization: The
capital of the Series XXXII Notes will be amortized in one
installment on the maturity date.
-
Interest Payment
Dates: Interest will be paid quarterly for the expired period from
the issuance and settlement date.
-
Payment Address:
Payment will be made to an account at Argentine Securities
Commission in New York, United States, for which purpose the
Company will make US dollars available to an account reported by
the Argentine Securities Commission in said
jurisdiction.
December 2020: Headquarters Change
The Company has moved its headquarters from Moreno 877 Piso 24 CABA
to Carlos Della Paolera 261 Piso 9 CABA.
February 2021: Brasilagro - Capital Increase
On February 3, 2021, Brasilagro has concluded a public share
offering for a total amount of approximately BRL 500 million by
issuing 20 million shares in a primary offering and 2.73 million in
a secondary offering.
The company participated in the primary issuance by acquiring,
directly or through subsidiaries, 6,971,229 shares. The
consideration for the shares was materialized with the sale, which
agreement was informed to the market on December 23, 2020, of 100%
of the shares of its indirectly controlled subsidiaries,
Agropecuaria Acres del Sud SA, Ombu Agropecuaria SA, Yatay
Agropecuaria SA and Yuchan Agropecuaria S.A. owners of
approximately 9,900 agricultural hectares in the corn belt of
Bolivia.
After this transaction, CRESUD's stake in Brasilagro, net of
treasury shares, increased from 33.8% to 34.1% of its capital
stock.
88
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
February 2021: Sale of meatpacking facility Carnes
Pampeanas
On February 24, the Company sold 100% of the shares of Sociedad
Anónima Carnes Pampeanas S.A., owner of the Carnes Pampeanas
meatpacking facility in the province of La Pampa,
Argentina.
The price of the operation was agreed at USD 10 million, which has
already been fully paid.
The accounting result of the operation will be a gain of
approximately ARS 620 million, which will be recognized in the
Company's Financial Statements for the third quarter of fiscal year
2021.
Carnes Pampeanas S.A. was acquired by CRESUD in 2007 in partnership
with Tyson Foods and Cactus Feeders. Subsequently we have increased
our participation in the business, reaching all the shares of the
company since 2011.
March 2021: Capital Increase
On February 17, 2021, the Company announced the launch of its
public offering of shares for up to 90 million shares (or its
equivalent 9 million ADS) and 90,000,000 warrants to subscribe for
new common shares, to registered holders as of February 19, 2021.
Each right corresponding to one share (or ADS) allowed its holder
to subscribe 0.1794105273 new ordinary shares and receive free of
charge an option with the right to subscribe 1 additional ordinary
share in the future. The final subscription price for the new
shares was ARS 70.31 or USD 0.472 and for the new ADS it was USD
4.72. The new shares, registered, of ARS 1 (one peso) of par value
each and with the right to one vote per share gives the right to
receive dividends under the same conditions as the current shares
in circulation.
On March 5, 2021, having finished the pre emptive rights
subscription period, the Company's shareholders have subscribed the
amount of 87,264,898 new additional shares, that is 97% of the
shares offered, and have requested through the accretion right
26,017,220 additional new shares, for which 2,735,102 new shares
will be issued, completing the total issuance of 90,000,000 new
shares (or their equivalent in ADSs) offered. Likewise, 90,000,000
options will be issued that will entitle the holders through their
exercise to acquire up to 90,000,000 additional new
shares.
The exercise price of the warrants will be USD 0.566. The warrants
may be exercised quarterly from the 90th day of their issuance on
the 17th to the 25th (inclusive) of the months of February, May,
September, and November of each year (provided that dates are
business days in the city of New York and in the Autonomous City of
Buenos Aires) until their expiration 5 years from the date of
issue.
As of the date of issuance of these financial statements, the
Company received all the funds in the amount of USD 42.5 million
and issued the new shares, increasing the capital stock to
591,642,804 million.
89
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
EBITDA Reconciliation
In this summary report, we
present EBITDA and Adjusted EBITDA. We define EBITDA as profit for
the period excluding: (i) result of discontinued operations, (ii)
income tax expense, (iii) financial results, net iv) results from
participation in associates and joint ventures; and (v)
depreciation and amortization. We define Adjusted EBITDA as EBITDA
minus net profit from changes in the fair value of investment
properties, not realized,
excluding barter agreement results.
EBITDA
and Adjusted EBITDA are non-IFRS financial measures that do not
have standardized meanings prescribed by IFRS. We present EBITDA
and adjusted EBITDA because we believe they provide investors
supplemental measures of our financial performance that may
facilitate period-to-period comparisons on a consistent basis. Our
management also uses EBITDA and Adjusted EBITDA from time to time,
among other measures, for internal planning and performance
measurement purposes. EBITDA and Adjusted EBITDA should not be
construed as an alternative to profit from operations, as an
indicator of operating performance or as an alternative to cash
flow provided by operating activities, in each case, as determined
in accordance with IFRS. EBITDA and Adjusted EBITDA, as calculated
by us, may not be comparable to similarly titled measures reported
by other companies. The table below presents a reconciliation of
profit for the relevant period to EBITDA and Adjusted EBITDA for
the periods indicated:
90
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Brief comment on future prospects for the Fiscal Year
The year 2020 was dominated by the COVID-19 pandemic, which
originated in China and subsequently spread to numerous countries,
generating uncertainty and volatility in the markets, adversely
impacting the global, Argentine and regional economy. Our
agricultural operations continued their development normally as
agricultural production was an essential activity to guarantee the
supply of food.
The 2021 campaign is presented with radical changes from what was
observed in the market at the end of the previous year. As of
August, the United States reduced its sowing intention on the main
crops and South America began to show indicators of lack of water.
China activated its demand and this, added to the weakness of the
dollar in the world, pushed the international prices of commodities
upwards. Soybeans
and corn recovered their prices in the last year approximately
between 40-50%. The challenge will be in the climatic evolution in
the region in the coming months where the harvest will take place
given that the crops went through periods of lack of water so far
this cycle. If the conditions are good and we achieve good
agricultural yields, we expect a campaign with excellent
results.
We also expect good results for the livestock activity driven by
the Chinese demand for meat. Although production will also depend
on climatic evolution, local farm prices have been growing steadily
in recent months. We will continue to focus on improving
productivity and controlling costs, working efficiently to achieve
the highest possible operating margins. We will continue
concentrating our production in our own farms, mainly in the
Northwest of Argentina and consolidating our activity in
Brazil.
Furthermore, as part of our business strategy, we will continue to
sell the farms that have reached their highest level of
appreciation in the region.
The urban properties and investments business, which we own through
IRSA, presents challenges for the next quarter and fiscal year
2021. The company's shopping malls are working with strict
protocols that include social distancing, reduced hours and flow,
control of access, among other measures as well as its hotels,
whose recovery is slow due to the lack of foreign tourism. IRSA
continues to work on reducing and making the cost structure more
efficient, hoping that the activity of Shopping malls will evolve
in accordance with the economic recovery and the hotels will
normalize their activity with the total opening of air flows and
the influx of international tourism.
On the national and international framework above mentioned, the
Board of Directors of the Company will continue evaluating
financial, economic and / or corporate tools that allow the Company
to improve its position in the market in which it operates and have
the necessary liquidity to meet its obligations. Within the
framework of this analysis, the indicated tools may be linked to
corporate reorganization processes (merger, spin-off or a
combination of both), implementation of financial and / or
corporate efficiencies in international companies directly or
indirectly owned by the Company through reorganization processes,
disposal of assets in public and / or private form that may include
real estate as well as negotiable securities owned by the Company,
repurchase of shares and instruments similar to those described
that are useful to the proposed objectives. All
this as described in the Company's Annual Report for the fiscal
year ending June 30, 2020.
The Company keeps its commitment to preserve the health and
well-being of its clients, employees, tenants and the entire
population, constantly reassessing its decisions in accordance with
the evolution of events, the regulations that are issued and the
guidelines of the competent authorities.
91
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
Summary as of December 31, 2020
Alejandro Elsztain
CEO
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
92