BUENOS AIRES, Argentina, Sept. 8 /PRNewswire-FirstCall/ -- Cresud S.A.C.I.F. y A. (BCBA: CRES), one of the leading agricultural companies in Argentina, today announced results for Fiscal Year 2006 ended June 31, 2006.
The results for fiscal year 2006 showed net profit of Ps. 32.9 million compared to the Ps. 76.8 million profit for the same period the previous fiscal year.
The decrease in the net result is mainly due to: (i) a reduction in results from the sale of lands, (ii) a reduction in results from the sale of IRSA's acquired Convertible Bonds, and (iii) a reduction in results from livestock holdings compared to those for the same period the previous year.
Consolidated net sales for the period were Ps. 112.3 million, 43.7% higher than consolidated net sales for the same period the previous fiscal year, mainly due to increases in the sales of crops and milk for fiscal year 2006.
HIGHLIGHTS
* During this year, we faced for the first time an expansion out of Argentina as we incorporated and participated in BrasilAgro, a company listed on the Sao Paulo Stock Exchange.
* BrasilAgro seeks to replicate the Company's business in Brazil, leveraging the expertise achieved by our Company in the agricultural business and the outstanding opportunities Brazil offers in its rural business.
* During the year, we continued to be an active party in the sales market, acquiring "San Pedro," a 6,022 hectare farm with great agricultural potential in the province of Entre Rios, for which we paid US$ 16,000,000, and selling "El Gualicho," a 5,727 hectare farm in the province of Cordoba. This operation generated a Ps. 9,900,000 profit due to the difference between its accounting and market value.
* We acquired a franchise of more than 160,000 hectares for 60 years, of which 35,000 hectares will be assigned to agricultural production, which will increase our production in the future.
* We continue with the expansion of "Los Pozos" farm, adding 8,000 hectares to the production that will be assigned to cattle farming next fiscal year.
* As a result of the incorporation of a new dairy farm at "El Tigre" farm, dairy production was increased by 99% with respect to last fiscal year. We are planning to continue expansion of this business with the development of a brand new dairy farm at "La Juanita" farm.
* During the year, our investment in IRSA contributed income of Ps. 23.4 million to our results.
Financial Highlights
(expressed in Argentine Pesos)
FY 2006 FY 2005
Total Sales 112,340,661 78,173,014
Gross Income (Loss) 20,020,150 18,514,401
Operating income 11,107,140 36,257,592
Financial results, net 12,373,958 63,751,386
Net Income (Loss) 32,883,276 76,798,918
Earnings per share 0.1927 0.4944
Earnings per share diluted 0.1320 0.2528
Current Assets 94,982,864 152,742,124
Non-current Assets 775,673,020 590,670,069
Total Assets 870,655,884 743,412,193
Current Liabilities 101,909,091 65,980,140
Non-current Liabilities 142,321,331 154,084,136
Total Liabilities 244,230,422 220,064,276
Minority Interest 559,871 276,947
Temporary Currency Exchange
Difference (6,650,419) 0
Shareholders' Equity 632,516,010 523,070,970
Cresud is one of the leading agricultural companies in Argentina. Its shares have been listed on the Buenos Aires Stock Exchange since March 1960 and on the Nasdaq since 1997. Cresud's activities include the production of soybean, wheat, sunflower and corn, beef and dairy cattle, forestry activities and rural real estate operations. Cresud is also the largest shareholder of Inversiones y Representaciones S.A., or IRSA, one of Argentina's largest real estate operators.
For further information, please contact:
Gabriel Blasi -- CFO
+011-54-11-4323-7449
Cresud cordially invites you to participate in its Fiscal Year 2006 Results Conference Call on Monday, September 18, 2006, at 11:00 EDT.
If you would like to participate, please call:
United States: +1-888-694-4728
International: +1-973-582-2745
Pin number: 7834326
You can also access the webcast by logging onto the web at:
http://www.videonewswire.com/event.asp?id=35575
