IRSA Inversiones y Representaciones Sociedad
Anónima
Unaudited Condensed Interim Consolidated Financial Statements as of
September 30, 2024 and for the three-month period ended as of that
date, presented comparatively
Legal information
Denomination: IRSA Inversiones y
Representaciones Sociedad Anónima.
Fiscal year N°: 82, beginning on July 1st,
2024.
Legal address: 261 Carlos Della Paolera St., 9th
floor, Autonomous City of Buenos Aires, Argentina.
Company activity: Real estate investment
and development.
Date of registration of the by-laws in the
Public Registry of Commerce: June 23, 1943.
Date of registration of last
amendment of the by-laws in the Public Registry of Commerce:
General Ordinary and Extraordinary
Shareholders’ Meeting held on April 27, 2023 and registered
in the Superintendence on September 12, 2023 with the number 15555,
Book 114 Volume – of Joint Stock
Companies.
Expiration of the
Company’s by-laws: April
5, 2043.
Registration number with
the
Superintendence: 213,036.
Capital: 746,893,142 shares. (*)
Common Stock subscribed, issued and paid-up
nominal value (in millions of ARS): 7,469.
Parent Company: Cresud Sociedad
Anónima, Comercial, Inmobiliaria, Financiera y
Agropecuaria
(Cresud
S.A.C.I.F. y A.).
Legal Address: 261 Carlos Della Paolera
St., 9th floor, Autonomous City of Buenos Aires,
Argentina.
Main activity of parent Company: Real
estate and agricultural activities.
Direct and indirect interest of the Parent
Company on the capital stock: 397,831,498 common
shares.
Percentage of votes of the Parent Company
(direct and indirect interest) on the shareholders’
equity: 55.88% (1).
Type of
stock
|
CAPITAL STATUS
|
Shares
authorized for Public Offering (2)
|
Subscribed,
issued and paid-up nominal value
(in
millions of Argentine
Pesos)
|
Common
stock with a face value of ARS 10 per share and entitled to 1 vote
each
|
746,893,142
|
7,469
|
(1) For
computation purposes, treasury shares have been
subtracted.
(2)
Company not included in the Optional Statutory System of Public
Offer of Compulsory Acquisition.
(*) As
of September 30, 2024, the capital increase and the issuance of
shares resolved by the board of directors on October 15, 2024, was
in process of being registered in the “Inspección
General de Justicia” (General Inspection of
Justice).
Index
Glossary
|
1
|
Unaudited Condensed Interim Consolidated Statement of Financial
Position
|
2
|
Unaudited Condensed Interim Consolidated Statement of Income and
Other Comprehensive Income
|
3
|
Unaudited Condensed Interim Consolidated Statement of Changes in
Shareholders’ Equity
|
4
|
Unaudited Condensed Interim Consolidated Statement of Cash
Flows
|
6
|
Notes to the Unaudited Condensed Interim Consolidated Financial
Statements:
|
|
Note 1 – The Group’s business and general
information
|
7
|
Note 2 – Summary of significant accounting
policies
|
7
|
Note 3 – Seasonal effects on operations
|
8
|
Note 4 – Acquisitions and disposals
|
9
|
Note 5 – Financial risk management and fair value
estimates
|
9
|
Note 6 – Segment information
|
10
|
Note 7 – Investments in associates and joint
ventures
|
11
|
Note 8 – Investment properties
|
12
|
Note 9 – Property, plant and equipment
|
15
|
Note 10 – Trading properties
|
15
|
Note 11 – Intangible assets
|
16
|
Note 12 – Right-of-use assets and lease
liabilities
|
16
|
Note 13 – Financial instruments by
category
|
17
|
Note 14 – Trade and other receivables
|
19
|
Note 15 – Cash flow and cash equivalent
information
|
19
|
Note 16 – Trade and other payables
|
20
|
Note 17 – Borrowings
|
20
|
Note 18 – Provisions
|
21
|
Note 19 – Taxes
|
22
|
Note 20 – Revenues
|
23
|
Note 21 – Expenses by nature
|
23
|
Note 22 – Costs
|
23
|
Note 23 – Other operating results, net
|
24
|
Note 24 – Financial results, net
|
24
|
Note 25 – Related party transactions
|
24
|
Note 26 – CNV General Resolution N°
622
|
27
|
Note 27 – Foreign currency assets and
liabilities
|
27
|
Note 28 – Other relevant events of the
period
|
28
|
Note 29 – Subsequent events
|
28
|
The
following are not technical definitions, but help the reader to
understand certain terms used in the wording of the notes to the
Group´s Financial Statements.
Terms
|
|
Definitions
|
Annual
Financial Statements
|
|
Consolidated
Financial Statements as of June 30, 2024
|
BACS
|
|
Banco
de Crédito y Securitización S.A.
|
BHSA
|
|
Banco
Hipotecario S.A.
|
BYMA
|
|
Buenos
Aires Stock Exchange
|
CNV
|
|
Securities
Exchange Commission (Argentina)
|
CODM
|
|
Chief
Operating Decision Maker
|
CPI
|
|
Consumer
Price Index
|
Cresud
|
|
Cresud
S.A.C.I.F. y A.
|
Financial
Statements
|
|
Unaudited
Condensed Interim Consolidated Financial Statements
|
GCDI
|
|
GCDI
S.A.
|
IAS
|
|
International
Accounting Standards
|
IASB
|
|
International
Accounting Standards Board
|
IFRS
|
|
International
Financial Reporting Standards
|
INDEC
|
|
Argentine
Institute of Statistics and Census
|
IRSA,
The Company”, “Us”, “We”
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
|
MEP
|
|
Electronic
Payment Market
|
NIS
|
|
New
Israeli Shekel
|
New
Lipstick
|
|
New
Lipstick LLC
|
Puerto
Retiro
|
|
Puerto
Retiro S.A.
|
|
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
Unaudited Condensed Interim Consolidated Statement
of Financial Position
as of September 30, 2024 and June 30, 2024
(All
amounts in millions of Argentine pesos, except otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
Note
|
|
|
ASSETS
|
|
|
|
Non-current assets
|
|
|
|
Investment
properties
|
8
|
1,697,606
|
1,909,319
|
Property,
plant and equipment
|
9
|
41,988
|
40,993
|
Trading
properties
|
10,
22
|
20,820
|
21,903
|
Intangible
assets
|
11
|
67,894
|
72,427
|
Right-of-use
assets
|
12
|
6,112
|
11,972
|
Investments
in associates and joint ventures
|
7
|
151,518
|
145,066
|
Deferred
income tax assets
|
19
|
5,201
|
6,834
|
Income
tax credit
|
|
11
|
12
|
Trade
and other receivables
|
13,
14
|
29,252
|
38,345
|
Investments
in financial assets
|
13
|
8,743
|
11,428
|
Derivative
financial instruments
|
13
|
60
|
63
|
Total non-current assets
|
|
2,029,205
|
2,258,362
|
Current assets
|
|
|
|
Trading
properties
|
10,
22
|
583
|
461
|
Inventories
|
22
|
1,187
|
1,211
|
Income
tax credit
|
|
290
|
1,205
|
Trade
and other receivables
|
13,
14
|
75,531
|
85,442
|
Investments
in financial assets
|
13
|
149,379
|
135,301
|
Derivative
financial instruments
|
13
|
77
|
-
|
Cash
and cash equivalents
|
13
|
30,243
|
31,730
|
Total current assets
|
|
257,290
|
255,350
|
TOTAL ASSETS
|
|
2,286,495
|
2,513,712
|
SHAREHOLDERS’ EQUITY
|
|
|
|
Shareholders'
equity attributable to equity holders of the parent (according to
corresponding statement)
|
|
1,089,615
|
1,209,497
|
Non-controlling
interest
|
|
75,902
|
82,744
|
TOTAL SHAREHOLDERS’ EQUITY
|
|
1,165,517
|
1,292,241
|
LIABILITIES
|
|
|
|
Non-current liabilities
|
|
|
|
Borrowings
|
13,
17
|
170,404
|
207,834
|
Lease
liabilities
|
12
|
3,280
|
10,157
|
Deferred
income tax liabilities
|
19
|
551,604
|
628,563
|
Trade
and other payables
|
13,
16
|
41,314
|
42,965
|
Income
tax liabilities
|
|
17,190
|
-
|
Provisions
|
18
|
23,287
|
23,569
|
Salaries
and social security liabilities
|
|
114
|
125
|
Total non-current liabilities
|
|
807,193
|
913,213
|
Current liabilities
|
|
|
|
Borrowings
|
13,
17
|
209,991
|
203,411
|
Lease
liabilities
|
12
|
807
|
2,120
|
Trade
and other payables
|
13,
16
|
85,885
|
81,505
|
Income
tax liabilities
|
|
6,190
|
7,508
|
Provisions
|
18
|
3,676
|
4,131
|
Derivative
financial instruments
|
13
|
-
|
4
|
Salaries
and social security liabilities
|
|
7,236
|
9,579
|
Total current liabilities
|
|
313,785
|
308,258
|
TOTAL LIABILITIES
|
|
1,120,978
|
1,221,471
|
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
|
|
2,286,495
|
2,513,712
|
|
|
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Consolidated Financial Statements.
|
.
Eduardo S. Elsztain
President
|
2
IRSA
Inversiones y Representaciones Sociedad Anónima
Unaudited Condensed Interim Consolidated Statement
of Income and Other Comprehensive Income
for the three-month periods ended September 30, 2024 and
2023
(All
amounts in millions of Argentine pesos, except otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
Note
|
|
|
Revenues
|
20
|
89,873
|
94,939
|
Costs
|
21,
22
|
(32,458)
|
(30,894)
|
Gross profit
|
|
57,415
|
64,045
|
Net
(loss) / gain from fair value adjustment of investment
properties
|
8
|
(225,499)
|
316,084
|
General
and administrative expenses
|
21
|
(11,105)
|
1,266
|
Selling
expenses
|
21
|
(4,349)
|
(4,975)
|
Other
operating results, net
|
23
|
(4,046)
|
(1,278)
|
(Loss) / profit from operations
|
|
(187,584)
|
375,142
|
Share
of profit of associates and joint ventures
|
7
|
8,162
|
6,850
|
(Loss) / profit before financial results and income
tax
|
|
(179,422)
|
381,992
|
Finance
income
|
24
|
722
|
1,169
|
Finance
costs
|
24
|
(11,644)
|
(12,736)
|
Other
financial results
|
24
|
21,691
|
(7,288)
|
Inflation
adjustment
|
24
|
4,245
|
20,116
|
Financial results, net
|
|
15,014
|
1,261
|
(Loss) / profit before income tax
|
|
(164,408)
|
383,253
|
Income
tax expense
|
19
|
55,373
|
(132,715)
|
(Loss) / profit for the period
|
|
(109,035)
|
250,538
|
Other comprehensive loss:
|
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
Currency
translation adjustment and other comprehensive loss from
subsidiaries and associates (i)
|
|
(497)
|
(1,037)
|
Total other comprehensive loss for the period
|
|
(497)
|
(1,037)
|
Total comprehensive (loss) / income for the period
|
|
(109,532)
|
249,501
|
|
|
|
(Loss) / profit for the period attributable to:
|
|
|
|
Equity
holders of the parent
|
|
(105,646)
|
238,061
|
Non-controlling
interest
|
|
(3,389)
|
12,477
|
|
|
|
Total comprehensive (loss) / income attributable to:
|
|
|
|
Equity
holders of the parent
|
|
(105,931)
|
237,055
|
Non-controlling
interest
|
|
(3,601)
|
12,446
|
|
|
|
(Loss) / profit per share attributable to equity holders of the
parent: (ii)
|
|
|
|
Basic
|
|
(145.92)
|
323.89
|
Diluted
|
|
|
319.12
|
(i)
Components
of other comprehensive income have no impact on income
tax.
(ii)
See
note 28 to the Annual Consolidated Financial Statements as of June
30, 2024.
(iii)
Given
that the result for the period showed losses, there is no diluted
effect of such result.
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Consolidated Financial Statements.
|
.
Eduardo S. Elsztain
President
|
3
IRSA
Inversiones y Representaciones Sociedad Anónima
Unaudited Condensed Interim Consolidated Statement
of Changes in Shareholders’ Equity
for the three-month period ended September 30, 2024
(All
amounts in millions of Argentine pesos, except otherwise
indicated)
Free translation from the original prepared in Spanish for
publication in Argentina
|
Attributable to equity holders of the parent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflation adjustment of share capital and treasury shares
(i)
|
|
|
Additional paid-in capital from treasury shares
|
|
Special reserve Resolution CNV 609/12
|
|
|
|
|
Total Shareholders’ equity
|
Balance as of June 30, 2024
|
7,181
|
234
|
366,751
|
24,782
|
536,420
|
(11,556)
|
53,754
|
207,970
|
8,487
|
15,474
|
1,209,497
|
82,744
|
1,292,241
|
Net
loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(105,646)
|
(105,646)
|
(3,389)
|
(109,035)
|
Other
comprehensive loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(285)
|
-
|
(285)
|
(212)
|
(497)
|
Total comprehensive loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(285)
|
(105,646)
|
(105,931)
|
(3,601)
|
(109,532)
|
Repurchase
of treasury shares (iii)
|
(115)
|
115
|
-
|
-
|
-
|
-
|
-
|
-
|
(15,686)
|
-
|
(15,686)
|
-
|
(15,686)
|
Warrants
exercise (ii)
|
54
|
-
|
-
|
(1,362)
|
3,048
|
-
|
-
|
-
|
-
|
-
|
1,740
|
-
|
1,740
|
Capitalization
of irrevocable contributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
86
|
86
|
Dividend
distribution
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,332)
|
(3,332)
|
Changes
in non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(5)
|
-
|
(5)
|
5
|
-
|
Balance as of September 30, 2024
|
7,120
|
349
|
366,751
|
23,420
|
539,468
|
(11,556)
|
53,754
|
207,970
|
(7,489)
|
(90,172)
|
1,089,615
|
75,902
|
1,165,517
|
(i)
Includes ARS 28 of Inflation adjustment of treasury shares. See
Note 17 to the Annual Consolidated Financial Statements as of June
30,2024.
(ii) As of September 30, 2024, the remaining warrants
to exercise amount to 71,510,561. See Note 28 to
these Financial
Statements.
(iii)
Related to the Shares Buyback Programs approved by the Board on
July 11, 2024. As of September 30, 2024 the Company has bought
11,541,885 shares. See Note 28 to these Financial
Statements.
(iv)
Group´s other reserves for the period ended September 30, 2024
are comprised as follows:
|
|
Reserve for future dividends
|
Currency translation adjustment reserve
|
|
|
|
Balance as of June 30, 2024
|
(30,145)
|
81,807
|
(3,269)
|
65,122
|
(105,028)
|
8,487
|
Other
comprehensive loss for the period
|
-
|
-
|
(285)
|
-
|
-
|
(285)
|
Total comprehensive loss for the period
|
-
|
-
|
(285)
|
-
|
-
|
(285)
|
Repurchase
of treasury shares
|
(15,686)
|
-
|
-
|
-
|
-
|
(15,686)
|
Changes
in non-controlling interest
|
-
|
-
|
-
|
-
|
(5)
|
(5)
|
Balance as of September 30, 2024
|
(45,831)
|
81,807
|
(3,554)
|
65,122
|
(105,033)
|
(7,489)
|
(1) Includes
revaluation surplus.
The
Company does not hold any preferred shares, therefore there are no
unpaid dividends on such shares.
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Consolidated Financial Statements.
IRSA
Inversiones y Representaciones Sociedad Anónima
Unaudited Condensed Interim Consolidated Statement of Changes in
Shareholders’ Equity
for the three-month period ended September 30, 2023
(All
amounts in millions of Argentine pesos, except otherwise
indicated)
Free translation from the original prepared in Spanish for
publication in Argentina
|
Attributable to equity holders of the parent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflation adjustment of share capital and treasury shares
(i)
|
|
|
Additional paid-in capital from treasury shares
|
|
Special reserve Resolution CNV 609/12
|
|
|
|
|
Total Shareholders’ equity
|
Balance as of June 30, 2023
|
799
|
6,553
|
12
|
366,736
|
26,105
|
533,334
|
2,091
|
41,808
|
207,970
|
49,004
|
273,886
|
1,508,298
|
93,031
|
1,601,329
|
Net
profit for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
238,061
|
238,061
|
12,477
|
250,538
|
Other
comprehensive loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,006)
|
-
|
(1,006)
|
(31)
|
(1,037)
|
Total comprehensive (loss) / income for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,006)
|
238,061
|
237,055
|
12,446
|
249,501
|
Repurchase
of treasury shares
|
(132)
|
-
|
132
|
-
|
-
|
-
|
-
|
-
|
-
|
(5,384)
|
-
|
(5,384)
|
-
|
(5,384)
|
Warrants
exercise
|
-
|
-
|
-
|
-
|
(21)
|
64
|
-
|
-
|
-
|
-
|
-
|
43
|
-
|
43
|
Issuance
of shares
|
6,553
|
(6,553)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Capitalization
of irrevocable contributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
71
|
71
|
Dividend
distribution
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,669)
|
(4,669)
|
Changes
in non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(11)
|
-
|
(11)
|
-
|
(11)
|
Balance as of September 30, 2023
|
7,220
|
-
|
144
|
366,736
|
26,084
|
533,398
|
2,091
|
41,808
|
207,970
|
42,603
|
511,947
|
1,740,001
|
100,879
|
1,840,880
|
(i) Includes ARS 13
of Inflation adjustment of treasury shares. See Note 17 to the
Annual Consolidated Financial Statements as of June
30,2024.
(ii) Group’s
other reserves for the period ended September 30, 2023 are
comprised as follows:
|
|
Reserve for future dividends
|
Currency translation adjustment reserve
|
|
|
|
Balance as of June 30, 2023
|
(13,845)
|
37,431
|
787
|
129,616
|
(104,985)
|
49,004
|
Other
comprehensive loss for the period
|
-
|
-
|
(1,006)
|
-
|
-
|
(1,006)
|
Total comprehensive loss for the period
|
-
|
-
|
(1,006)
|
-
|
-
|
(1,006)
|
Repurchase
of treasury shares
|
(5,384)
|
-
|
-
|
-
|
-
|
(5,384)
|
Changes
in non-controlling interest
|
-
|
-
|
-
|
-
|
(11)
|
(11)
|
Balance as of September 30, 2023
|
(19,229)
|
37,431
|
(219)
|
129,616
|
(104,996)
|
42,603
|
(1) Includes
revaluation surplus.
The
Company does not hold any preferred shares, therefore there are no
unpaid dividends on such shares.
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Consolidated Financial Statements.
|
.
Eduardo S. Elsztain
President
|
5
IRSA Inversiones y Representaciones Sociedad
Anónima
Unaudited Condensed Interim
Consolidated Statement of Cash Flows
for the three-month periods ended September 30, 2024 and
2023
(All
amounts in millions of Argentine pesos, except otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
Note
|
|
|
Operating activities:
|
|
|
|
Net
cash generated from operating activities before income tax
paid
|
15
|
49,800
|
36,478
|
Income
tax paid
|
|
(1,989)
|
(3,501)
|
Net cash generated from operating activities
|
|
47,811
|
32,977
|
Investing activities:
|
|
|
|
Acquisition
and improvements of investment properties
|
|
(13,872)
|
(4,172)
|
Proceeds
from sales of investment properties
|
|
105
|
14,977
|
Acquisitions
and improvements of property, plant and equipment
|
|
(1,247)
|
(760)
|
Proceeds
from sales of property, plant and equipment
|
|
-
|
3
|
Acquisitions
of intangible assets
|
|
(960)
|
(309)
|
Proceeds
from sales of interest held in associates and joint
ventures
|
|
2,433
|
26,179
|
Proceeds
from derivative financial instruments
|
|
23
|
-
|
Acquisitions
of investments in financial assets
|
|
(58,069)
|
(61,574)
|
Proceeds
from disposal of investments in financial assets
|
|
47,229
|
45,899
|
Interest
received from financial assets
|
|
3,494
|
1,267
|
Proceeds
from loans granted to related parties
|
|
222
|
-
|
Increase
of loans granted to related parties
|
|
-
|
(161)
|
Net cash (used in) / generated from investing
activities
|
|
(20,642)
|
21,349
|
Financing activities:
|
|
|
|
Borrowings,
issuance and new placement of non-convertible notes
|
|
4,464
|
3,062
|
Payment
of borrowings and non-convertible notes
|
|
(12,779)
|
(8,980)
|
Obtaining
/ (payments) of short term loans, net
|
|
13,370
|
(6,143)
|
Interests
paid
|
|
(10,216)
|
(6,418)
|
Repurchase
of non-convertible notes
|
|
(7,828)
|
-
|
Capital
contributions from non-controlling interest in
subsidiaries
|
|
86
|
71
|
Warrants
exercise
|
|
1,740
|
43
|
Payment
of lease liabilities
|
|
(763)
|
(151)
|
Repurchase
of treasury shares
|
|
(15,686)
|
(5,384)
|
Net cash used in financing activities
|
|
(27,612)
|
(23,900)
|
Net
(decrease) / increase in cash and cash equivalents
|
|
(443)
|
30,426
|
Cash and cash
equivalents at the beginning of the period
|
13
|
31,730
|
36,391
|
Inflation
adjustment of cash and cash equivalents
|
|
(68)
|
(1,900)
|
Foreign
exchange (loss) / gain on cash and cash equivalents and unrealized
fair value result for cash equivalents
|
|
(976)
|
1,830
|
Cash and cash equivalents at end of the period
|
13
|
30,243
|
66,747
|
|
|
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Consolidated Financial Statements.
|
.
Eduardo S. Elsztain
President
|
6
IRSA Inversiones y Representaciones Sociedad
Anónima
Notes to the Unaudited Condensed Interim Consolidated Financial
Statements
(Amounts
in millions of Argentine pesos, except otherwise
indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
1.
The Group’s business and
general information
These
Financial Statements have been approved for issuance by the Board
of Directors, on November 5, 2024.
IRSA
was founded in 1943, and it has engaged in diverse real estate
activities in Argentina since 1991. IRSA and its subsidiaries are
collectively referred to hereinafter as “the
Group”.
Cresud
is our direct parent company, whose main shareholders are
Inversiones Financieras del Sur S.A., Agroinvestment S.A. and
Consultores Venture Capital Uruguay S.A., and whose final
beneficiary is Eduardo Sergio Elsztain.
As of
the end of these Consolidated Financial Statements, the Group owns
15 shopping malls, 5 office buildings, three hotels and an
extensive land reserve for future mixed-use developments.
Additionally, the Group holds a 29.50% interest in Banco
Hipotecario S.A. (BHSA) (see note 7), which is a leading commercial
bank in the provision of mortgaged loans in Argentina. BHSA's
shares are listed on the BYMA.
The
Group operates and holds a majority interest (with the exception of
La Ribera Shopping Center, of which it has a 50% ownership
interest) in a portfolio of 14 shopping malls in Argentina, six of
which are located in the Autonomous City of Buenos Aires (Abasto
Shopping, Alcorta Shopping, Alto Palermo, Patio Bullrich, Dot
Baires Shopping and Distrito Arcos), two in Buenos Aires province
(Alto Avellaneda and Soleil Premium Outlet) and the rest are
situated in different provinces (Alto Noa in the City of Salta,
Alto Rosario in the City of Rosario, Mendoza Plaza in the City of
Mendoza, Córdoba Shopping Villa Cabrera in the City of
Córdoba, Alto Comahue in the City of Neuquén and La
Ribera Shopping in the City of Santa Fe). The Group also owns the
historic building where the Patio Olmos Shopping Mall is located,
operated by a third party.
Likewise, the Group
manages a 5 office buildings portfolio and has majority stakes in 3
luxury hotels including the Libertador and Intercontinental hotels
in the Autonomous City of Buenos Aires and the exclusive Llao Llao
resort, in the city of San Carlos de Bariloche, in southern
Argentina. Additionally, the Group participates in the development
of residential properties for sale, as well as in other
investments.
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, 2024 prepared in accordance with IFRS
Accounting Standards issued by the IASB. 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 Accounting Standards.
These
financial statements for the interim periods of three months ended
September 30, 2024 and 2023 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.
IRSA Inversiones y Representaciones Sociedad
Anónima
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
exceeds 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
Argentine Federation of Professional Councils in Economic Sciences
(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 between the last
fiscal year and as of September 30, 2024, and for the 12-month
period ending on the same date, according to official statistics
(INDEC) and following the guidelines described in Resolution
539/18.
|
As of
September 30, 2024 (three months)
|
As of
September 30, 2024 (twelve months)
|
Price
variation
|
12%
|
209%
|
As a
consequence of the aforementioned, these Unaudited Condensed
Interim Consolidated Financial Statements as of September 30, 2024
and their comparative information were restated in accordance with
IAS 29.
2.2.
Significant
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.
2.3.
Comparability
of information
Balance
items as of June 30, 2024 and September 30, 2023 presented in these
Unaudited Condensed Interim Consolidated Financial Statements for
comparative purposes arise from the financial statements as of and
for such periods restated according to IAS 29 (See note
2.1).
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 Financial Statements.
3.
Seasonal effects on
operations
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 from July through December, compared to the period from
January through June.
IRSA Inversiones y Representaciones Sociedad
Anónima
4.
Acquisitions and
disposals
Significant
acquisitions and disposals for the three-month period ended
September 30, 2024 are detailed below. Significant acquisitions and
disposals for the fiscal year ended June 30, 2024, are detailed in
Note 4 to the Annual Financial Statements.
1.
Zetol
- Payment of installments for share purchase
On July
12, 2024, the payment of the installments for the purchase of
shares in Zetol, corresponding to Towers 3 and 4, was completed for
a total amount of USD 8.9 million, including units, parking spaces,
and credits in favor of VAM and Zetol for Towers 1 and
2.
2.
Purchase
of property adjacent to Alto Avellaneda shopping mall
On
August 1, 2024, IRSA acquired a property adjacent to its Alto
Avellaneda shopping mall, located at Gral. Güemes 861,
Avellaneda, Province of Buenos Aires.
The
property has a total area of 86,861 square meters and a built-up
area of 32,660 square meters, with potential for future
expansion.
The
purchase price was set at USD 12.2 million, of which USD 9.2
million has already been paid, and the remaining USD 3 million will
be settled upon the transfer of the title deed, which will be
granted within 3 years from the signing of the preliminary sales
agreement. The transaction includes the assignment to IRSA of the
existing lease agreements until their original expiration and the
signing of a new lease agreement with the supermarket for 3
years.
3.
Merger
by absorption of IRSA and Centro de Entretenimiento La Plata
S.A.
On
September 11, 2024, IRSA and Centro de Entretenimiento La Plata
S.A. (CELAP) Boards of Directors approved the prior merger
agreement between both companies and the corresponding special
financial statements as of June 30, 2024, initiating the corporate
reorganization process under the terms of art. 82 et seq. of the
General Law of Companies. The merger process has particular
characteristics given that IRSA is included in the public offering
regime, reason why, not only apply the current provisions of the
General Law of Companies but also the procedures established
regarding reorganization of companies of the Regulations of the
“Comisión Nacional de Valores” (National
Securities Commission) and the markets, both national and foreign,
where its shares are listed.
The
Merger was carried out in order to streamline the technical,
administrative, operational and economic resources of both
Companies.
On
October 28, 2024, the Shareholders' Meetings of IRSA and CELAP were
held, approving the merger by absorption, whose effective date was
established on July 1, 2024. As of that date, the transfer to the
absorbent of the totality of the equity of the absorbed company,
thereby incorporating all its rights and obligations, assets and
liabilities into the equity of the absorbing company.
Likewise, and in
accordance with the prior merger agreement, there is no exchange
ratio, since IRSA, in its capacity as the controlling company of
CELAP with a 100% share, does not receive its own shares given that
its holding in CELAP already it is incorporated into its
equity.
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.
IRSA Inversiones y Representaciones Sociedad
Anónima
From
June 30, 2024 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).
Segment information was prepared and classified
according to the business in which the Group operates, they were
described in Note 6 to the Annual Financial
Statements.
Below is a summary of the Group’s operating
segments and a reconciliation between the operating income
according to segment information and the operating income of the
Statements of Income and Other Comprehensive Income of the Group
for the three-month periods
ended September 30, 2024 and 2023:
|
|
|
|
|
Expenses and collective promotion funds
|
Elimination of inter-segment transactions and non-reportable assets
/ liabilities (2)
|
Total as per statement of income / statement of financial
position
|
Revenues
|
72,495
|
(426)
|
17,804
|
-
|
89,873
|
Costs
|
(14,595)
|
42
|
(17,905)
|
-
|
(32,458)
|
Gross profit / (loss)
|
57,900
|
(384)
|
(101)
|
-
|
57,415
|
Net
loss from fair value adjustment of investment
properties
|
(225,633)
|
134
|
-
|
-
|
(225,499)
|
General
and administrative expenses
|
(11,201)
|
65
|
-
|
31
|
(11,105)
|
Selling
expenses
|
(4,377)
|
28
|
-
|
-
|
(4,349)
|
Other
operating results, net
|
(4,059)
|
(3)
|
47
|
(31)
|
(4,046)
|
(Loss) / profit from operations
|
(187,370)
|
(160)
|
(54)
|
-
|
(187,584)
|
Share
of profit of associates and joint ventures
|
7,927
|
235
|
-
|
-
|
8,162
|
Segment loss
|
(179,443)
|
75
|
(54)
|
-
|
(179,422)
|
Reportable
assets
|
1,968,707
|
519
|
-
|
317,269
|
2,286,495
|
Reportable
liabilities (i)
|
-
|
-
|
-
|
(1,120,978)
|
(1,120,978)
|
Net reportable assets
|
1,968,707
|
519
|
-
|
(803,709)
|
1,165,517
|
|
|
|
|
|
|
|
|
|
|
|
Expenses and collective promotion funds
|
Elimination of inter-segment transactions and non-reportable assets
/ liabilities (2)
|
Total as per statement of income / statement of financial
position
|
Revenues
|
78,185
|
(448)
|
17,202
|
-
|
94,939
|
Costs
|
(13,370)
|
43
|
(17,567)
|
-
|
(30,894)
|
Gross profit / (loss)
|
64,815
|
(405)
|
(365)
|
-
|
64,045
|
Net
gain / (loss) from fair value adjustment of investment
properties
|
316,055
|
29
|
-
|
-
|
316,084
|
General
and administrative expenses
|
1,060
|
58
|
-
|
148
|
1,266
|
Selling
expenses
|
(5,018)
|
43
|
-
|
-
|
(4,975)
|
Other
operating results, net
|
(1,300)
|
(3)
|
173
|
(148)
|
(1,278)
|
Profit / (loss) from operations
|
375,612
|
(278)
|
(192)
|
-
|
375,142
|
Share
of profit of associates and joint ventures
|
6,427
|
423
|
-
|
-
|
6,850
|
Segment profit / (loss)
|
382,039
|
145
|
(192)
|
-
|
381,992
|
Reportable
assets
|
2,909,481
|
225
|
-
|
369,918
|
3,279,624
|
Reportable
liabilities (i)
|
-
|
-
|
-
|
(1,438,728)
|
(1,438,728)
|
Net reportable assets
|
2,909,481
|
225
|
-
|
(1,068,810)
|
1,840,896
|
|
|
|
|
|
|
(1) Represents the
equity value of joint ventures that were proportionately
consolidated for segment information.
(2) Includes
amounts pertaining to building administration expenses and
collective promotion funds (“FPC”, as per its Spanish
acronym) as well as total recovered costs, whether by way of
expenses or other concepts included under financial results (for
example default interest and other concepts). Includes deferred
income tax assets, income tax 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.
(i) The CODM
focuses its review on reportable assets.
IRSA Inversiones y Representaciones Sociedad
Anónima
Below
is a summarized analysis of the segments from the Group for the
three-month periods ended
September 30, 2024 and 2023:
|
|
|
|
|
|
|
|
|
Revenues
|
51,841
|
4,101
|
1,462
|
13,822
|
1,269
|
72,495
|
Costs
|
(3,665)
|
(287)
|
(1,382)
|
(8,445)
|
(816)
|
(14,595)
|
Gross profit
|
48,176
|
3,814
|
80
|
5,377
|
453
|
57,900
|
Net
loss from fair value adjustment of investment
properties
|
(5,574)
|
(67,743)
|
(152,130)
|
-
|
(186)
|
(225,633)
|
General
and administrative expenses
|
(5,074)
|
(418)
|
(1,980)
|
(2,452)
|
(1,277)
|
(11,201)
|
Selling
expenses
|
(2,471)
|
(96)
|
(421)
|
(1,055)
|
(334)
|
(4,377)
|
Other
operating results, net
|
(73)
|
(65)
|
(6,860)
|
(54)
|
2,993
|
(4,059)
|
Profit / (loss) from operations
|
34,984
|
(64,508)
|
(161,311)
|
1,816
|
1,649
|
(187,370)
|
Share
of profit of associates and joint ventures
|
-
|
-
|
-
|
-
|
7,927
|
7,927
|
Segment profit / (loss)
|
34,984
|
(64,508)
|
(161,311)
|
1,816
|
9,576
|
(179,443)
|
|
|
|
|
|
|
|
Investment
properties and trading properties
|
776,243
|
268,025
|
677,282
|
-
|
2,212
|
1,723,762
|
Investment
in associates and joint ventures
|
-
|
-
|
-
|
-
|
145,977
|
145,977
|
Other
operating assets
|
3,715
|
388
|
53,620
|
35,629
|
5,616
|
98,968
|
Reportable assets
|
779,958
|
268,413
|
730,902
|
35,629
|
153,805
|
1,968,707
|
|
|
|
|
|
|
|
|
|
Revenues
|
52,994
|
4,895
|
810
|
18,500
|
986
|
78,185
|
Costs
|
(3,087)
|
(303)
|
(664)
|
(8,488)
|
(828)
|
(13,370)
|
Gross profit
|
49,907
|
4,592
|
146
|
10,012
|
158
|
64,815
|
Net
(loss) / gain from fair value adjustment of investment
properties
|
(7,697)
|
99,430
|
224,659
|
-
|
(337)
|
316,055
|
General
and administrative expenses
|
(5,958)
|
(491)
|
(2,370)
|
(2,858)
|
12,737
|
1,060
|
Selling
expenses
|
(2,648)
|
(114)
|
(720)
|
(1,335)
|
(201)
|
(5,018)
|
Other
operating results, net
|
(612)
|
(83)
|
(1,897)
|
(142)
|
1,434
|
(1,300)
|
Profit from operations
|
32,992
|
103,334
|
219,818
|
5,677
|
13,791
|
375,612
|
Share
of profit of associates and joint ventures
|
-
|
-
|
-
|
-
|
6,427
|
6,427
|
Segment profit
|
32,992
|
103,334
|
219,818
|
5,677
|
20,218
|
382,039
|
|
|
|
|
|
|
|
Investment
properties and trading properties
|
771,869
|
574,036
|
1,359,042
|
-
|
3,027
|
2,707,974
|
Investment
in associates and joint ventures
|
-
|
-
|
-
|
-
|
126,264
|
126,264
|
Other
operating assets
|
2,759
|
426
|
29,973
|
36,039
|
6,046
|
75,243
|
Reportable assets
|
774,628
|
574,462
|
1,389,015
|
36,039
|
135,337
|
2,909,481
|
|
|
|
|
|
|
|
7.
Investments in associates and
joint ventures
Changes
in the Group’s investments in associates and joint ventures
for the three-month period ended September 30, 2024 and for the
year ended June 30, 2024 were as follows:
|
|
|
Beginning of the period / year
|
145,049
|
154,441
|
Sale
of interest in associates and joint ventures (i)
|
(1,487)
|
(29,373)
|
Capital
contributions
|
28
|
-
|
Share
of profit
|
8,162
|
38,166
|
Currency
translation adjustment
|
77
|
(93)
|
Dividends
(Note 25)
|
(311)
|
(18,092)
|
End of the period / year (ii)
|
151,518
|
145,049
|
(i)
As of June 30,
2024, mainly corresponds to the sale of interest in Quality Invest
S.A. and GCDI S.A.
(ii)
As of June 30, 2024
includes ARS (17) reflecting interests in companies with negative
equity, which were disclosed in “Provisions” (Note
18).
IRSA Inversiones y Representaciones Sociedad
Anónima
|
|
Value of Group's interest in equity
|
Group's interest in comprehensive income / (loss)
|
Name of the entity
|
|
|
|
|
|
|
Associates and joint ventures
|
|
|
|
|
|
|
New
Lipstick
|
49.96%
|
49.96%
|
1,147
|
1,211
|
(64)
|
9
|
BHSA
|
29.50%
|
29.89 |