The results for the first six-month period of fiscal year 2007 showed a net profit of Ps. 17.0 million compared to the Ps. 23.9 million profit for the same period of the previous fiscal year.
Consolidated net sales for the period were Ps. 41.1 million, 24.3% lower than consolidated net sales for the same period of the previous year.
The decrease in net results and net sales is basically attributable to a decrease in the tons of crops sold, mainly due to the fact that a significant part of the production was sold during the last weeks of June 2006, leaving a lesser available stock for the current period.
For this same reason, gross profit for the six-month period of fiscal year 2007 was Ps. 5.9 million as compared to Ps. 10.0 million gross profit for the same period of the previous year.
Operating results for the six-month period ended December 31, 2006 showed a Ps. 0.4 million loss, as compared to the Ps. 14.7 million profit for the same period of the previous fiscal year. This difference is mainly attributable to a Ps. 9.9 million profit recorded in the prior fiscal year as a result of the sale of "El Gualicho" farm.
Results from related companies showed a Ps. 23.0 million profit, recording a 200% increase as compared to the same period of fiscal year 2006, mainly due to our interest in IRSA Inversiones y Representaciones S.A. as of December 31, 2006.
HIGHLIGHTS
- Net profit for the six-month period of fiscal year 2007 amounted to Ps. 17.0 million.
- On November 29, 2006, the Company distributed cash dividends of Ps. 5.5 million (Ps. 0.0248 per share or Ps. 0.248 per ADR) as dividends for fiscal year 2006.
- Cresud, through its subsidiary Cactus Argentina S.A., together with Tyson Foods, Inc. and Cactus Fedeers Inc, has commenced an entrepreneurship in Argentina that will be the first Argentine livestock vertically integrated project.
- At December 31, 2006, 100% of our total surface area sown with wheat had been harvested. The other crops are showing outstanding performance.
- During the fiscal year, our interest in IRSA contributed a Ps. 20.1 million profit to our results, and has excellent perspectives for its activity.
Financial Highlights
(Expressed in Argentine Pesos)
IIQ FY 2007 IIQ FY 2006
Six-month period Six-month period
ended ended
December 31, 2006 December 31, 2005
Total sales 41,419,353 54,700,868
Gross income 5,943,465 10,051,193
Financial results, net -4,343,286 16,876,782
Net Income - (Loss) 17,038,555 23,885,942
Earnings per ADR 0.769 1.445
Earnings per ADR diluted 0.573 0.933
Current Assets 135,970,112 80,446,179
Non-Current Assets 779,643,108 672,427,556
Total Assets 915,613,220 752,873,735
Current Liabilities 187,681,350 52,277,762
Non- Current Liabilities 66,504,994 157,085,143
Total Liabilities 254,186,344 209,362,905
Minority interest 576,428 200,444
Shareholders' Equity 660,850,448 543,310,386
Cresud is a leading Argentine producer of basic agricultural products and the only such company with shares listed on the Buenos Aires Stock Exchange and Nasdaq. The Company is currently involved in various operations and activities, including crop production, cattle raising and fattening, milk production and certain forestry activities. Most of its farms are located in Argentina's pampas, one of the largest temperate prairie zones in the world and one of the richest areas of the world for agricultural production.
A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar .
For further information, please contact:
Gabriel Blasi -- CFO
+011-54-11-4323-7449
finanzas@cresud.com.ar
Cresud cordially invites you to participate in its Second Quarter Fiscal Year 2007 Results Conference Call on Thursday, March 1, 2007, at 10:30 EST.
If you would like to participate, please call:
United States: +1-888-562-3356
International: +1-973-582-2700
You can also access the webcast by logging onto the web http://www.videonewswire.com/event.asp?id=37963
