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
 
 
 
Glossary
 
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.
 
 
 
 
 
1
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
 
09.30.2024
 
 
06.30.2024
 
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
 
09.30.2024
 
 
09.30.2023
 
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
 
 
(145.92) (iii)
 
  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
 
 
 
 
 
 
 
 
 
Share capital
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares
 
 
Treasury shares
 
 
Inflation adjustment of share capital and treasury shares (i)
 
 
 Warrants (ii)
 
 
Share premium
 
 
Additional paid-in capital from treasury shares
 
 
Legal reserve
 
 
Special reserve Resolution CNV 609/12
 
 
Other reserves (iv)
 
 
Accumulated deficit
 
 
Subtotal
 
 
Non-controlling interest
 
 
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:
 
 
 
Cost of treasury shares
 
 
Reserve for future dividends
 
 
Currency translation adjustment reserve
 
 
Special reserve
 
 
Other reserves (1)
 
 
Total Other reserves
 
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.
 
 
4
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
 
 
 
 
 
 
 
 
 
Share capital
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares
 
 
Shares to issue
 
 
Treasury shares
 
 
Inflation adjustment of share capital and treasury shares (i)
 
 
 Warrants
 
 
Share premium
 
 
Additional paid-in capital from treasury shares
 
 
Legal reserve
 
 
Special reserve Resolution CNV 609/12
 
 
Other reserves (ii)
 
 
Retained earnings
 
 
Subtotal
 
 
Non-controlling interest
 
 
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:
 
 
 
Cost of treasury shares
 
 
Reserve for future dividends
 
 
Currency translation adjustment reserve
 
 
Special reserve
 
 
Other reserves (1)
 
 
Total Other reserves
 
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
 
09.30.2024
 
 
09.30.2023
 
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.
 
 
7
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).
 
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 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.
 
 
8
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.
 
 
9
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).
 
6.
Segment information
 
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:
 
 
 
09.30.2024
 
 
 
Total
 
 
Joint ventures (1)
 
 
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 
 
    
    
    
    
    
 
 
 
09.30.2023
 
 
 
Total
 
 
Joint ventures (1)
 
 
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.
 
 
 
10
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:
 
 
 
09.30.2024
 
 
 
Shopping Malls
 
 
Offices
 
 
Sales and developments
 
 
Hotels
 
 
Others (i)
 
 
Total
 
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 
 
 
 
09.30.2023
 
 
 
Shopping Malls
 
 
Offices
 
 
Sales and developments
 
 
Hotels
 
 
Others (i)
 
 
Total
 
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:
 
 
 
09.30.2024
 
 
06.30.2024
 
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).
 
 
 
11
IRSA Inversiones y Representaciones Sociedad Anónima
 
 
 

 
% ownership interest
 
 
Value of Group's interest in equity
 
 
Group's interest in comprehensive income / (loss)
 
Name of the entity
 
09.30.2024
 
 
06.30.2024
 
 
09.30.2024
 
 
06.30.2024
 
 
09.30.2024
 
 
09.30.2023
 
Associates and joint ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Lipstick
  49.96%
  49.96%
  1,147 
  1,211 
  (64)
  9 
BHSA
  29.50%
  29.89