CRESUD S.A.C.I.F. y A. announces its results for the second quarter of Fiscal Year 2024 ended December 31, 2023

Rhea-AI Summary

Cresud S.A.C.I.F. y A. announces strong financial results for the second quarter of fiscal year 2024, with a net result of ARS 122,205 million, a 45.1% increase in adjusted EBITDA, and a 39.3% increase in agricultural segment EBITDA. The company also reported better weather conditions in the region, higher farmland sales, and a positive outlook for the 2024 campaign.

Positive

• Net result for FY 2024: ARS 122,205 million, a significant increase from 2023
• Adjusted EBITDA: ARS 79,677 million, 45.1% higher than the same period in 2023
• Agricultural segment EBITDA: ARS 23,857 million, 39.3% higher than 2023
• 282,000 hectares planned for the 2024 campaign
• Successful sale of agricultural reserve and activity fractions in Argentina
• Conclusion of dividend distribution process in cash and IRSA shares
• Market capitalization: USD 563.3 million

Negative

• None.

Insights

Financial Analyst

The reported increase in net result for Cresud S.A.C.I.F. y A. reflects a significant year-over-year growth, indicating a strong performance, particularly in the context of the agricultural sector. The gain from changes in the fair value of investment properties suggests a strategic asset revaluation that could attract the attention of investors looking for companies with appreciating asset bases. Additionally, the reported growth in adjusted EBITDA by 45.1% is a critical indicator of the company's operational efficiency and profitability. It is essential to note that EBITDA adjustments can vary by company and understanding the specifics behind these adjustments would be crucial for a comprehensive financial analysis.

The sale of portions of farmland indicates active portfolio management, which can be a double-edged sword. On one hand, it provides liquidity and can be a sign of capitalizing on high asset values; on the other, it might also indicate a need for cash or a strategic shift away from certain assets. The international commodity prices correction and better weather conditions are positive external factors that could support Cresud's operational outlook.

Regarding the dividend distribution, this move could be perceived positively by shareholders as it reflects a return on investment. However, the impact of such distributions on the company's capital structure and future investment capacity should be monitored.

Agricultural Market Analyst

The reported increase in agricultural segment EBITDA by 39.3% is particularly noteworthy, as it suggests Cresud's ability to leverage favorable market conditions. The reference to higher farmland sales may indicate strong demand in the agricultural real estate market, which could be due to a variety of factors including commodity price trends and investor interest in agribusiness. The company's intention to plant approximately 282,000 hectares aligns with the previous year's campaign, suggesting stability in Cresud's operational strategy.

Weather conditions play a pivotal role in agricultural output and the mention of better weather conditions in Argentina could be a harbinger of improved yields and productivity for Cresud. This, coupled with the correction of international commodity prices, might hint at a favorable environment for Cresud's products in the global market, potentially leading to higher revenue streams from crop sales.

Economist

The significant appreciation in the Argentine peso (ARS) figures reported by Cresud must be contextualized within the broader economic environment, including inflation and currency fluctuation. Argentina has historically experienced high inflation rates, which could distort financial results when not adjusted for purchasing power parity. Therefore, it is crucial to consider the real terms of these figures to gauge the company's performance accurately.

The company's market capitalization as of December 31, 2023, provides a snapshot of investor sentiment and market valuation. The market capitalization, when compared with the company's total assets and liabilities, can offer insights into the market's perception of the company's net asset value and growth prospects. It is noteworthy that Cresud's market capitalization is a function of both its operational performance and investor confidence, which can be influenced by macroeconomic factors and industry trends.

BUENOS AIRES, Argentina, Feb. 8, 2024 /PRNewswire/ -- Cresud S.A.C.I.F. y A. (NASDAQ: CRESY, BYMA: CRES), leading Argentine agricultural company, announces today its results for the second quarter of FY 2024 ended December 31, 2023.

HIGHLIGHTS

• The net result for the first semester of fiscal year 2024 recorded a gain of ARS 122,205 million compared to ARS 59,907 million in the same period of 2023, mainly due to the gain from changes in the fair value of IRSA's investment properties. The gain attributable to the controlling shareholder was ARS 48,800 million, compared to ARS 32,929 million in the same period of 2023.
• The adjusted EBITDA for the period reached ARS 79,677 million, 45.1% higher than the same period in 2023. The adjusted EBITDA of the agricultural segments was ARS 23,857 million, 39.3% higher than 2023, mainly due to higher farmland sales.
• The 2024 campaign is being developed with better weather conditions in the region, mainly in Argentina, and correction of international commodity prices. We hope to plant approximately 282,000 hectares, in line with the 2023 campaign.
• During the semester, in October 2023, we sold a fraction of 4,262 hectares of reserve with productive potential of "Los Pozos" farm, in the province of Salta, Argentina, for USD 2.3 million and in December 2023, we sold a fraction of 500 hectares of agricultural activity of "El Tigre" farm, in the province of La Pampa, Argentina, for USD 3.75 million.
• In February 2024, the process of distributing the dividend in cash and in kind, in IRSA shares, and the treasury shares in the portfolio, approved by the Shareholders' Meeting on October 5, 2023, to ADS holders, which was pending, was concluded.

Financial Highlights
(In millions of Argentine Pesos)
6M FY 2024 ended December 31, 2023

Income Statement	12/31/2023	12/31/2022
Agricultural Business Revenue	103,563	114,924
Agricultural Business Gross Profit	26,445	17,384
Urban Properties Revenues	84,304	77,591
Urban Properties Gross Profit	69,438	64,112
Consolidated Gross Profit	95,095	80,181
Consolidated results from Operations	206,385	(52,810)
Profit for the Period	122,205	59,907
Attributable to:
Cresud's Shareholders	48,800	32,929
Non-Controlling interest	73,405	26,978
EPS (Basic)	82.42	55.73
EPS (Diluted)	69.91	47.67
Balance Sheet	12/31/2023	06/30/2023
Current Assets	609,727	444,204
Non-Current Assets	2,084,006	1,765,788
Total Assets	2,693,733	2,209,992
Current Liabilities	516,221	412,236
Non-Current Liabilities	1,035,028	805,488
Total Liabilities	1,551,249	1,217,724
Non-Controlling Interest	667,581	562,346
Shareholders' Equity	1,142,484	992,268

The Company's market capitalization as of December 31, 2023, was approximately USD 563.3 million. (59,417,495 ADS with a price per ADS of USD 9.48)

Cresud, leading Argentinean agricultural company with a growing presence in Latin American countries, cordially invites you to participate in its second quarter of the FY 2024 Results Conference Call on Friday, February 9, 2024, at 8:00 AM Eastern Time / 10:00 AM BA Time.

To access the Webinar:
https://zoom.us/webinar/register/WN_86jhmMlRTIeoGIYmuSTGTw

Webinar ID: 999 2694 2779
Password: 202347

In addition, you can participate communicating to this numbers:
Argentina: +54 115 983 6950 or +54 341 512 2188 or +54 343 414 5986 or +54 112 040 0447
Israel: +972 3 978 6688 or +972 2 376 4509 or +972 2 376 4510
Brazil: +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668
US: +1 719 359 4580 or +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782 or +1 301 715 8592
Chile: +56 41 256 0288 or +56 22 573 9304 or +56 22 573 9305 or +56 23 210 9066 or +56 232 938 848
UK: +44 330 088 5830 or +44 131 460 1196 or +44 203 481 5237 or +44 203 481 5240 or +44 208 080 6591

Investor Relations Department.
https://www.cresud.com.ar/home-inversores.php?lng=en
Cresud S.A.C.I.F. y A.
+5411 4323-7449
ir@cresud.com.ar
Follow us on Twitter: @cresudir

View original content:https://www.prnewswire.com/news-releases/cresud-sacif-y-a-announces-its-results-for-the-second-quarter-of-fiscal-year-2024-ended-december-31-2023-302058168.html

SOURCE Cresud S.A.C.I.F. y A.

FAQ

What was the net result for the first semester of fiscal year 2024?

The net result for the first semester of fiscal year 2024 was a gain of ARS 122,205 million, compared to ARS 59,907 million in the same period of 2023.

What was the adjusted EBITDA for the period?

The adjusted EBITDA for the period reached ARS 79,677 million, which is 45.1% higher than the same period in 2023.

What was the adjusted EBITDA of the agricultural segments?

The adjusted EBITDA of the agricultural segments was ARS 23,857 million, 39.3% higher than in 2023, mainly due to higher farmland sales.

What is the outlook for the 2024 campaign?

The 2024 campaign is being developed with better weather conditions in the region, mainly in Argentina, and correction of international commodity prices. The company hopes to plant approximately 282,000 hectares, in line with the 2023 campaign.

What agricultural activities did Cresud engage in during the semester?

Cresud engaged in successful sales of fractions of agricultural reserves and activities in Argentina, including a fraction of 4,262 hectares of reserve with productive potential of 'Los Pozos' farm and a fraction of 500 hectares of agricultural activity of 'El Tigre' farm.

What was the conclusion of the dividend distribution process?

In February 2024, the process of distributing the dividend in cash and in kind, in IRSA shares, and the treasury shares in the portfolio, approved by the Shareholders' Meeting on October 5, 2023, to ADS holders, which was pending, was concluded.

What was Cresud's market capitalization as of December 31, 2023?

The Company's market capitalization as of December 31, 2023, was approximately USD 563.3 million.