Company Quick10K Filing
Cresud
20-F 2019-06-30 Filed 2019-10-31
20-F 2018-10-31 Filed 2018-10-31
20-F 2018-06-30 Filed 2018-11-30
20-F 2017-10-31 Filed 2017-10-31
20-F 2016-06-30 Filed 2016-11-01
20-F 2015-11-17 Filed 2015-11-17
20-F 2014-06-30 Filed 2014-10-31
20-F 2013-10-17 Filed 2013-10-31
20-F 2012-10-28 Filed 2012-10-31
20-F 2011-06-30 Filed 2011-12-28
20-F 2010-06-30 Filed 2010-12-30

CRESY 20F Annual Report

Part I
Item 1. Identity of Directors, Senior Management and Advisers
Item 2. Offer Statistics and Expected Timetable
Item 3. Key Information
Item 4. Information on The Company
Item 4A. Unresolved Staff Comments
Item 5. Operating and Financial Review and Prospects
Item 6. Directors, Senior Management and Employees
Item 7. Major Shareholders and Related Party Transactions
Item 8. Financial Information
Item 9. The Offer and Listing
Item 10. Additional Information
Item 11. Quantitative and Qualitative Disclosures About Market Risk
Item 12. Description of Securities Other Than Equity Securities
Part II
Item 13. Defaults, Dividend Arrearages and Delinquencies
Item 14. Material Modifications To The Rights of Security Holders and Use of Proceeds
Item 15. Controls and Procedures
Item 16. Reserved
Item 16A. Audit Committee Financial Expert
Item 16B. Code of Ethics
Item 16C. Principal Accountant Fees and Service
Item 16D. Exemption From The Listing Standards for Audit Committees
Item 16.E. Purchases of Equity Securities By The Issuer and Affiliated Purchasers
Item 16F. Change in Registrant’S Certifying Accountant
Item 16G. Corporate Governance
Item 16H. Mine Safety Disclosures
Part III
Item 17. Financial Statements
Item 18. Financial Statements
Item 19. Exhibits
Note 8 Includes Summary Financial Information and Other Information of The Group's Associates.
EX-15 cresudexhibit15.htm
EX-4.14 cresudexhibit414.htm
EX-8.1 cresudexhibit81.htm
EX-12.1 cresudexhibit121.htm
EX-12.2 cresudexhibit122.htm
EX-13.1 cresudexhibit131.htm
EX-13.2 cresudexhibit132.htm
EX-99.1 cresudexhibit993.htm
EX-99.2 cresudexhibit992.htm

Cresud Earnings 2019-06-30

Balance SheetIncome StatementCash Flow

20-F 1 a20fcresud.htm PRIMARY DOCUMENT Blueprint
 

 
                United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 20-F
 
 
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 
OR
 
 
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended: June 30, 2019
 
OR
 
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
OR
 
 
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of event requiring this shell company report ___
 
For the transition period from ___ to___
 
Commission file number: 001-29190
 
CRESUD SOCIEDAD ANONIMA COMERCIAL INMOBILIARIA FINANCIERA Y AGROPECUARIA
(Exact name of Registrant as specified in its charter)
 
Cresud Inc.
(Translation of Registrant’s name into English)
 
Republic of Argentina
(Jurisdiction of incorporation or organization)
 
Moreno 877, 23rd Floor,
(C1091AAQ) City of Buenos Aires, Argentina
(Address of principal executive offices)
 
Matías Iván Gaivironsky
Chief Financial and Administrative Officer
Tel +(5411) 4323-7449 – ir@cresud.com.ar
Moreno 877, 24th Floor,
(C1091AAQ) City of Buenos Aires, Argentina
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
 
Securities registered or to be registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
 
 
Name of each exchange on which registered
 
 
 
 
 
 
 
American Depositary Shares (ADSs), each representing
ten shares of Common Stock
 
 
 
Nasdaq National Market of the
Nasdaq Stock Market
Common Stock, par value Ps.1.00 per share
 
 
 
Nasdaq National Market of the
Nasdaq Stock Market*
 
 
*
Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.
 
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
 
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
 
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the period covered by the annual report: 501,642,804.
 
Indicate by check mark if the registrant is a well known seasoned issuer, as defined in Rule 405 of the Securities Act:
 
☐ Yes ☒ No
 
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934.
 
☒ Yes ☐ No
 
Note: Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(a) of the Securities Exchange Act of 1934 from their obligations under those Sections
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
☒ Yes ☐ No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 
☒ Yes ☐ No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
 
Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Emerging growth company ☐
 
 If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 
 
 
†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
 
 
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
 
U.S. GAAP
International Financial Reporting Standards as issued by the International Accounting Standards Board
Other ☐
 
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
 
☐ Item 17 ☐ Item 18
 
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
☐ Yes ☒ No
 
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 23 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court.
Yes ☐ No ☐
 
Please send copies of notices and communications from the Securities and Exchange Commission to:
Carolina Zang
 
David Williams
 
 
Jaime Mercado
Zang Bergel & Viñes Abogados
 
Simpson Thacher & Bartlett LLP
Florida 537 piso 18º
C1005AAK Ciudad Autónoma de Buenos Aires, Argentina.
 
425 Lexington Avenue
New York, NY 10019
 
 
 
 
TABLE OF CONTENTS
 
 
Page No.
Disclosure Regarding Forward-Looking Information
i
Presentation of Financial and Certain Other Information
ii
Part I
1
Item 1. Identity of Directors, Senior Management and Advisers
1
Item 2. Offer Statistics and Expected Timetable
1
Item 3. Key Information
1
A. Selected Consolidated Financial Data
1
B. Capitalization and Indebtedness
6
C. Reasons for the Offer and Use of Proceeds
6
D. Risk Factors
6
Item 4. Information on the Company
90
A. History and Development of the Company
90
B. Business Overview
102
C. Organizational Structure
206
D. Property, Plants and Equipment
207
Item 4A. Unresolved Staff Comments
212
Item 5. Operating and Financial Review and Prospects
212
A. Consolidated Operating Results
212
B. Liquidity and Capital Resources
278
C. Research and Developments, Patents and Licenses
286
D. Trend Information
286
E. Off-Balance Sheet Arrangements
290
F. Tabular Disclosure of Contractual Obligations
290
G. Safe Harbor
290
Item 6. Directors, Senior Management and Employees
290
A. Directors and Senior Management
290
B. Compensation
295
C. Board Practices
299
D. Employees
300
E. Share Ownership
301
Item 7. Major shareholders and related party transactions
302
A. Major Shareholders
302
B. Related Party Transactions
303
C. Interests of Experts and Counsel
309
Item 8. Financial Information
309
A. Audited Consolidated Statements and Other Financial Information
309
B. Significant Changes
319
Item 9. The Offer and Listing
319
A. Offer and Listing Details
319
B. Plan of Distribution
319
C. Markets
319
D. Selling Shareholders
322
E. Dilution
322
F. Expenses of the Issue
322
Item 10. Additional Information
322
A. Share Capital
322
B. Memorandum and Articles of Association
322
C. Material Contracts
330
D. Exchange Controls
330
E. Money Laundering
333
F. Taxation
336
G. Dividends and Paying Agents
343
H. Statement by Experts
343
I. Documents on Display
343
J. Subsidiary Information
344
Item 11. Quantitative and Qualitative Disclosures about Market Risk
344
Item 12. Description of Securities Other than Equity Securities
344
Part II
345
Item 13. Defaults, Dividend Arrearages and Delinquencies
345
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
345
Item 15. Controls and Procedures
345
A. Disclosure Controls and Procedures
345
B. Management´s Annual Report on Internal Control Over Financial Reporting
345
C. Attestation Report of the Registered Public Accounting Firm
346
D. Changes in Internal Control Over Financial Reporting
346
Item 16. Reserved
346
Item 16A. Audit Committee Financial Expert
346
Item 16B. Code of Ethics
346
Item 16C. Principal Accountant Fees and Services
346
Item 16D. Exemption from the Listing Standards for Audit Committees
348
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
348
Item 16F. Change in Registrant’s Certifying Accountant
350
Item 16G. Corporate Governance
350
Item 16H. Mine Safety Disclosures
351
Part III
352
Item 17. Financial Statements
352
Item 18. Financial Statements
352
Item 19. Exhibits
352
 
 
 
 
 
 
 
DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION
 
This annual report includes forward-looking statements, principally under the captions “Summary,” “Item 3.D. Risk Factors,” “Item 4. Information on the Company” and “Item 5. Operating and Financial Review and Prospects.” We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors, in addition to those discussed elsewhere in this annual report, could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things:
 
Factors that could cause actual results to differ materially and adversely include but are not limited to:
 
● 
changes in general economic, financial, business, political, legal, social or other conditions in Argentina, Brazil, Latin America or Israel or changes in developed, emerging markets or either;
 
● 
changes in capital markets in general that may affect policies or attitudes toward lending to or investing in Argentina or Argentine companies, including volatility in domestic and international financial markets;
 
● 
inflation and deflation;
 
● 
fluctuations in the exchanges rates of the Peso and in the prevailing interest rates;
 
● 
increases in financing costs or our inability to obtain additional financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities;
 
● 
current and future government regulation and changes in law or in the interpretation by Argentine courts;
 
● 
price fluctuations in the agricultural and real estate market;
 
● 
political, civil and armed conflicts;
 
● 
adverse legal or regulatory disputes or proceedings;
 
● 
fluctuations and declines in the aggregate principal amount of Argentine public debt outstanding, default of sovereign debt;
 
● 
government intervention in the private sector and in the economy, including through nationalization, expropriation, labor regulation or other actions;
 
● 
restrictions on transfer of foreign currencies and other exchange controls;
 
● 
increased competition in the shopping mall sector, office or other commercial properties and related industries;
 
● 
potential loss of significant tenants at our shopping malls, offices or other commercial properties;
 
● 
our ability to take advantage of opportunities in the real estate market of Argentina or Israel on a timely basis;
 
● 
restrictions on energy supply or fluctuations in prices of utilities in the Argentine market;
 
● 
our ability to meet our debt obligations;
 
● 
shifts in consumer purchasing habits and trends;
 
● 
technological changes and our potential inability to implement new technologies;
 
● 
deterioration in regional, national or global businesses and economic conditions;
 
● 
changes on the applicable regulations to currency exchange or transfers;
 
● 
incidents of government corruption that adversely impact the development of our real estate projects.
 
● 
fluctuations and declines in the exchange rate of the Peso, U.S. dollar and the NIS against other currencies;
 
● 
risks related to our investment in Israel; and
 
● 
the risk factors discussed under “Item 3.D. Risk Factors.”
 
  i
 
    
You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” “anticipates,” “could,” “target,” “projects,” “contemplates,” “believes,” “potential,” “continue” or similar expressions.Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this annual report because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this annual report might not occur and are not guarantees of future performance.
 
As of June 30, 2019, the Company has established two operations centers to manage its global business, which we refer to in this annual report as the “Operation Center in Argentina” and the “Operation Center in Israel.”
 
You should not place undue reliance on such statements which speak only as of the date that they were made. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we might issue in the future.
 
Available information
 
We file annual and current reports and other information with the United States Securities and Exchange Commission, or “SEC.” You may read and copy any document we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The SEC also maintains a website at http://www.sec.gov that contains reports and other information regarding issuers that file electronically with the SEC. Our Internet address is http://www.cresud.com.ar. The information contained on this website does not form part of this annual report form 20-F.
 
You may obtain a copy of these filings at no cost by writing to us at: Moreno 877, 24th Floor, City of Buenos Aires (C1091AAQ), Argentina or telephoning us at +54 (11) 4814-7800.
 
PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION
 
In this annual report, references to “Cresud,” “Group,” “we,” “us,” “our”, or the “Company” means Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria, and its consolidated subsidiaries, unless the context otherwise requires, or where we make clear that such term refers only to Cresud and not its subsidiaries.
 
The terms “Argentine government” and “government” refer to the federal government of Argentina, the term “Central Bank” refers to the Banco Central de la República Argentina (the Argentine Central Bank), the terms “CNV” and “CNV Rules” refers to the Comisión Nacional de Valores (the Argentine National Securities Commission) and the rules issued by the CNV, respectively. In this annual report, when we refer to “Peso,” “Pesos” or “Ps.” we mean Argentine Pesos, the legal currency of Argentina; when we refer to “U.S. dollar,” “U.S. dollars” or “US$” we mean United States dollars, the legal currency of the United States ; when we refer to “NIS” we mean Israeli New Shekel.
 
Financial Statements
 
We prepare and maintain our financial books and records in Pesos and in conformity with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and the CNV Rules. Our fiscal year begins on July 1 and ends on June 30 of each year. This annual report contains our Audited Consolidated Financial Statements as of June 30, 2019 and 2018 and for our fiscal years ended June 30, 2019, 2018 and 2017 (our “Audited Consolidated Financial Statements”). Our Audited Consolidated Financial Statements have been audited by Price Waterhouse & Co S.R.L. City of Buenos Aires, Argentina, member of PriceWaterhouseCoopers International Limited, an independent registered public accounting firm whose report is included herein.
 
  ii
 
 
Functional and Presentation Currency
 
The information included in the Audited Consolidated Financial Statements has been recorded in the functional currency of the Company. Our functional and presentation currency is the Argentine Peso, and accordingly our Audited Consolidated Financial Statements included in this annual report are presented in Argentine Pesos.
 
IAS 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”) requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be measured 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. This requirement also includes the comparative information of the financial statements.
 
In order to conclude that an economy is categorized as hyperinflationary, IAS 29 outlines a series of factors to be considered, including the existence of an accumulated inflation rate in three years that is approximate or exceeds 100%. As of July 1, 2018, Argentina reported a cumulative three-year inflation rate greater than 100% and therefore financial information published as from that date should be adjusted for inflation in accordance with IAS 29. Therefore, the Audited Consolidated Financial Statements and the financial information included in this Annual Report have been stated in terms of the measuring unit current at the end of the reporting year. For more information, see Note 2.1 to our Consolidated Financial Statements.
 
Effective July 1, 2018, we adopted IFRS 15 “Revenues from contracts with customers” and IFRS 9 “Financial instruments” using the modified retrospective approach, so that the cumulative impact of the adoption was recognized in the retained earnings at the beginning of the fiscal year starting on July 1, 2018, and the comparative figures were consequently not modified. Accordingly, certain comparisons between periods may be affected. See Note 2.2 to our Audited Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—New Accounting Pronouncements” for a more comprehensive discussion of the effects of the adoption of these new standards.
 
The Company has established two Operations Centers to manage its global business, mainly through the following companies:
 
 
 
  iii
 
 
(i) 
Corresponds to Company’s associates, which are hence excluded from consolidation.
(ii) 
The results for the fiscal year 2018 and 2017 are included in discontinued operations, due to the loss of control in June 2018.
(iii) 
Disclosed as financial assets held for sale.
(iv) 
Assets and liabilities are disclosed as held for sale and the results as discontinued operations.
(v) 
See Note 4 for more information about the change within the Operations Center in Israel.
 
Financial Information of our Subsidiaries in Israel
 
IDB Development Corporation Ltd. (“IDBD”) and Discount Investment Corporation (“DIC”), IRSA´s principal subsidiaries in the Operations Center in Israel, report their quarterly and annual results following Israeli regulations, whose filing deadlines fall after the filing deadlines in Argentina. In addition, IDBD and DIC fiscal year ends differ from our fiscal year end, consequently, we consolidate the results of operations from IDBD and DIC on a three-month lag basis adjusted for the effects of any significant transactions taking place within such period. As such, our consolidated statement of income for the year ended June 30, 2019 includes the results of IDBD and DIC for the 12-month period from April 1, 2018 to March 31, 2019, adjusted for the significant transactions that occurred between April 1, 2019 and June 30, 2019.
 
On June 21, 2018, IRSA´s subsidiary, DIC completed the sale of a 16.56% stake in Shufersal Ltd. (“Shufersal”) to institutional investors, thereby ceasing to have control of Shufersal. We deconsolidated Shufersal as from the date we ceased having control. Additionally, on November 27, 2018, DIC sold 7.5% of the total shares of Shufersal to institutional investors. As a result, DIC’s stake in Shufersal’s decreased to 26.02%.
 
Currency translations
 
In this annual report where we refer to “Peso,” “Pesos,” or “Ps.” we mean Argentine Pesos, the lawful currency in Argentina; when we refer to “U.S. Dollars,” or “US$” we mean United States Dollars, the lawful currency of the United States of America; when we refer to “Real,” “Reals,” “Rs.” or “R$” we mean Brazilian Real, the lawful currency in the Federative Republic of Brazil; when we refer to “NIS,” we mean New Israeli Shekels, the lawful currency of Israel; and when we refer to “Central Bank” we mean the Banco Central de la República Argentina (Argentine Central Bank).
 
Our functional and presentation currency is the Peso, and accordingly our Financial Statements included in this annual report are presented in Pesos. We have translated some of the Peso amounts contained in this annual report into U.S. dollars for convenience purposes only. Unless otherwise specified or the context otherwise requires, the rate used to convert Peso amounts to U.S. dollars is the seller exchange rate quoted by Banco de la Nación Argentina of Ps.42.463 per US$1.00 for information provided as of June 30, 2019. The average seller exchange rate for the fiscal year 2019, quoted by Banco de la Nación Argentina was Ps.37.9287. The U.S. dollar-equivalent information presented in this annual report is provided solely for the convenience of investors and should not be construed as implying that the Peso amounts represent, or could have been or could be converted into, U.S. dollars at such rates or at any other rate. The seller exchange rate quoted by Banco de la Nación Argentina was Ps.59.7200 per US$1.00 as of October 30, 2019. See “Item 3. Key Information—Local Exchange Market and Exchange Rates.” and “Item 3. Risk Factors— Continuing inflation may have an adverse effect on the economy and our business, financial condition and the results of our operations”.
 
We have also translated certain NIS amounts into U.S. dollars at the offer exchange rate for June 30, 2019 which was NIS 3.5679=U.S.$1.00. We make no representation that the Peso, NIS or U.S. dollar amounts actually represent or could have been or could be converted into U.S. dollars at the rates indicated, at any particular rate or at all. See “Item 3 – Key information - Local Exchange Market and Exchange Rates.”
 
Market share data
 
Information regarding market share in a specified region or area is based on data compiled by us from internal sources and from publications such as Bloomberg, the International Council of Shopping Centers, the Argentine Chamber of Shopping Centers (Cámara Argentina de Shopping Centers), and the INDEC.
 
 
  iv
 
  
Certain measurements
 
In Argentina the standard measure of area in the real estate market is the square meter (m2), while in the United States and certain other jurisdictions the standard measure of area is the square foot (sq. ft.). All units of area shown in this annual report (e.g., gross leasable area of buildings (“GLA” or “gross leasable area”), and size of undeveloped land) are expressed in terms of square meters. One square meter is equal to approximately 10.8 square feet. One hectare is equal to approximately 10,000 square meters and to approximately 2.47 acres.
 
As used herein, GLA in the case of shopping malls refers to the total leasable area of the property, regardless of our ownership interest in such property (excluding common areas and parking and space occupied by supermarkets, hypermarkets, gas stations and co-owners, except where specifically stated).
 
Rounding adjustments
 
Certain numbers and percentages included in this annual report have been subject to rounding adjustments. Accordingly, figures shown for the same category presented in various tables or other sections of this annual report may vary slightly, and figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them.
 
 
  v
 
 
PART I
 
Item 1. Identity of Directors, Senior Management and Advisers
 
This item is not applicable.
 
Item 2. Offer Statistics and Expected Timetable
 
This item is not applicable.
 
Item 3. Key Information
 
A. SELECTED CONSOLIDATED FINANCIAL DATA
 
The following table presents our selected financial data as of June 30, 2019 and 2018 and for the years ended June 30, 2019, 2018 and 2017. The selected consolidated statement of income and other comprehensive income and the selected consolidated statement of cash flow data for the years ended June 30, 2019, 2018 and 2017 and the selected consolidated statement of financial position as of June 30, 2019 and 2018, have been prepared in accordance with IFRS as issued by the IASB and have been derived from our Audited Consolidated Financial Statements included elsewhere in this annual report. The summary financial data as of June 2017, 2016 and 2015 and for the years ended June 30, 2016 and 2015 have not been presented as these cannot be provided on a restated basis without unreasonable effort or expense. Financial information as of and for the year ended June 30, 2018 reflect the effect of desconsolidation of Shufersal as from June 21, 2018, date in which the Company ceased having control. Consequently, Shufersal’s results of operations after such date were not consolidated.
 
Our Audited Consolidated Financial Statements and the financial information included elsewhere in this Annual Report have been prepared in accordance with IFRS as of June, 30, 2019 in accordance with IAS 29 "Financial reporting in hyperinflationary economies". See “Presentation of Information – Financial Information” “Presentation of Information – Functional and Presentation Currency” “Risk factors—Risk Related to Argentina—. If the high levels of inflation continue, the Argentine economy and our results of operations could be adversely affected”, see “Item 5—Operating and Financial Review and Prospects—Results of Operations— Effects of Changes in Inflation” and Note 2 and to the Consolidated Financial Statements.
 
You should read the information below in conjunction with our Audited Consolidated Financial Statements, including the notes thereto, as well as the sections “Presentation of Financial Information” and “Item 5. Operating and Financial Review and Prospects.”
 
 We have translated Peso amounts into U.S. dollars at the seller exchange rate as of June 30, 2019, quoted by the Banco de la Nación Argentina, which was Ps.42.463 per US$1.00. The average of the seller exchange rate for the fiscal year 2019, quoted by Banco de la Nación Argentina was Ps.37.9287. We make no representation that these Peso or U.S. dollar amounts actually represent, could have been or could be converted into U.S. dollars at the rates indicated, at any particular rate or at all. See “—A.1. Local Exchange Market and Exchange Rates” and “Item 3. Risk Factors— Continuing inflation may have an adverse effect on the economy and our business, financial condition and the results of our operations”.
 
 
 
1
 
 
 
 
For the fiscal year ended June 30,
 
 
 
2019 (1)
 
 
2019
 
 
2018
 
 
2017
 
Consolidated Statements of Income and Other Comprehensive Income
 
in millions ofUS$
 
 
in millions of Ps.(except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
  1,947 
  82,665 
  69,286 
  67,907 
Costs
  (1,253)
  (53,190)
  (43,718)
  (42,629)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  38 
  1,613 
  1,171 
  177 
Changes in the net realizable value of agricultural products after harvest
  (1)
  (30)
  372 
  (252)
Gross profit
  731 
  31,058 
  27,111 
  25,203 
Net gain (loss) from fair value adjustment of investment properties
  (556)
  (23,618)
  16,849 
  (2,868)
Gain from disposal of farmlands
  11 
  465 
  1,159 
  441 
General and administrative expenses
  (207)
  (8,770)
  (7,849)
  (7,980)
Selling expenses
  (231)
  (9,823)
  (9,412)
  (9,918)
Other operating results, net
  21 
  881 
  2,612 
  (298)
Management fees
  - 
  - 
  (1,019)
  (433)
(Loss) / Profit from operations
  (231)
  (9,807)
  29,451 
  4,147 
Share of loss of associates and joint ventures
  (117)
  (4,979)
  (2,292)
  (798)
(Loss) / Profit from operations before financing and taxation
  (348)
  (14,786)
  27,159 
  3,349 
Finance income