Cresud S.A.C.I.F. y A. announces Results for the Nine-month period of 2016 ended March 31, 2016

BUENOS AIRES, Argentina, May 12, 2016 /PRNewswire/ -- Cresud S.A.C.I.F. y A. (NASDAQ: CRESY, BASE: CRES), today announces results for the nine-month period of FY 2016 ended March 31, 2016.

Consolidation of IDB Development Corporation

On October 11, 2015, the Group obtained control of the Israeli company IDB Development Corporation Ltd. ("IDBD"). During the past quarter, this investment was consolidated in the balance sheet, and as from this third quarter of fiscal year 2016, it is also disclosed at income statement level. IDBD's fiscal year-end is on December 31 of each year, whereas the Company's is on June 30. Moreover, in compliance with Israeli regulations, IDBD reports its quarterly and annual results after the expiration of the Argentine statutory terms. For such reasons, the Company will be unable to have available IDBD's quarterly results as and when due in order to report them to the CNV in its financial statements for the period ended March 31, 2016. Therefore, the Company will consolidate results from IDBD's operations with a three-month mismatch, adjusted by the effects of material transactions occurred during the reported period. In this way, the results of IDBD's operations for the period running from October 11, 2015 (date of acquisition) until December 31, 2015 are included in the interim comprehensive results of the Group for the nine-month period ended on March 31, 2016, except for material transactions considered. The Company estimates a similar mismatch in obtaining IDBD's results in the succeeding periods.

IDBD is one of the largest and most diversified holding companies in Israel. Through its subsidiaries, associates, joint ventures and other investments, IDBD is engaged in numerous markets and industry sectors in Israel and other countries, including real estate (Property & Building Corporation), supermarkets (Shufersal), agroindustry (Adama), insurance (Clal Holdings Insurance Enterprises, hereinafter Clal), and telecommunications (Cellcom). After the closing of this quarter, IDBD's shares were delisted from the Tel Aviv Stock Exchange ("TASE"). However, the company will continue to be registered with the TASE as a "Debentures Company" pursuant to Israeli law, as it has bonds listed on such exchange.

Significant assets have been added in various industries in which the Group did not have investments until to date, as well as liabilities for loans taken by IDBD and its subsidiaries.

The company is conducting the "Purchase Price Allocation" process, which is expected to be completed on June 30, 2016.

In the disclosure of income, we have decided to report our operations based on our main business lines: "Agricultural" and "Urban and Investments" derived from our subsidiary IRSA, which will be in turn subdivided into two operating centers: "Argentina" (including the businesses in Argentina and the international investments in the Lipstick Building in New York and the Condor Hospitality Trust hotel REIT) and "Israel" (including IDBD).

HIGHLIGHTS

• During this third quarter of 2016, we started to consolidate the results of the investment made by our subsidiary IRSA in IDB Development Corporation.
• Profit from operations was ARS 3,437 million for the first nine months of 2016, and a net loss of ARS 1,498 million was recorded (ARS 935 million being attributable to the controlling company's shareholders).
• Profit from operations of the agricultural segment grew by ARS 411 million in the 9-month period compared to the same period of the previous fiscal year, due to the positive effect of the reduction in tax withholdings on exports and the depreciation of the exchange rate.
• We planted 174,436 hectares, from which we expect to obtain very good yields, and we have developed 8,689 hectares in the region during this crop season.
• Our urban segment saw an increase of 168% in its profit from operations, up to ARS 1,276 million in the 9-month period, due to the incorporation of the results of its investment in IDB and higher income from the shopping center and sales and developments segments.

About Cresud:

Cresud is a leading Argentinean agricultural company with a growing presence in Latin American countries. Cresud is currently involved in a range of activities including crop production, cattle rising and milk production. Cresud's business model, which is being rolled out regionally in Latin America, taking into account the specific conditions of each country, focuses on the acquisition, development and exploitation of properties having attractive prospects for agricultural production and/or value appreciation and the selective disposition of such properties where appreciation has been realized.

Additionally, Cresud owns a 63.38% stake in IRSA Inversiones y Representaciones S.A., Argentina's largest, most well-diversified real estate company. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Additionally, IRSA owns a 29.91% of Banco Hipotecario as well as other opportunistic international investments as Lipstick Building, Condor Hospitality Trust and a 68.3% of IDBD, Israel's largest and most well diversified conglomerates.

A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar.

Cresud cordially invites you to participate in its nine-month period of FY 2016 Results Conference Call on Friday, May 13, 2016, at 3:30 PM Eastern Time

If you would like to participate, please call: 
United States:  (877) 317-6776
International:  +1-(412) 317-6776
ID# 10084690

To access the webcast, click on the link below:
http://webcast.neo1.net/Cover.aspx?PlatformId=Bs%2F9HLmeQe9%2BbeR7I6FNtw%3D%3D

Investor Relations Department
Cresud S.A.C.I.F. y A.
+5411-4323-7449
[email protected] 
www.cresud.com.ar 
Follow us on Twitter: @cresudir

SOURCE Cresud S.A.C.I.F. y A.

Related Links

http://www.cresud.com.ar