Cresud S.A.C.I.F. y A. announces its results for the second quarter of Fiscal Year 2025 ended December 31, 2024

Rhea-AI Summary

Cresud (NASDAQ: CRESY) reported a net loss of ARS 64,391 million for the first half of FY 2025, primarily due to changes in IRSA investment properties' fair value. The adjusted EBITDA decreased by 15.3% to ARS 134,961 million compared to the same period in 2024.

The company expanded its planted area to 303,000 hectares, a 9% increase from the previous season, despite historically low commodity prices. The Argentine government's announcement of temporary crop export tax reductions until June 2025 resulted in approximately 5% improvement in crop prices.

Notable transactions include the sale of Los Pozos farm fraction for USD 2.2 million and BrasilAgro's sale of Alto Taquari farm fraction for BRL 189.4 million. The company distributed a cash dividend of ARS 45,000 million (yield ~7%) in November 2024. As of December 31, 2024, Cresud's market capitalization stood at USD 761.8 million.

Positive

• 9% increase in planted area to 303,000 hectares
• Government reduction in export taxes improving crop prices by 5%
• Strategic asset sales completed in Argentina and Brazil
• Distributed significant dividend with ~7% yield

Negative

• Net loss of ARS 64,391 million in H1 FY2025
• 15.3% decrease in adjusted EBITDA to ARS 134,961 million
• Agricultural Business Gross Profit declined from ARS 57,588M to ARS 22,726M
• Historically low commodity prices affecting operations

Insights

Financial Analyst

Cresud's Q2 FY2025 financial results reveal significant headwinds, with a concerning shift from a profit of ARS 266,118 million in the previous year to a loss of ARS 64,391 million. The primary driver was the negative fair value adjustment in IRSA's investment properties, highlighting the challenges in the urban segment.

Several key developments warrant attention:

• Agricultural operations showed resilience with a 9% expansion in planted area to 303,000 hectares, despite adverse commodity price conditions
• The strategic asset monetization through the sale of Los Pozos farm for USD 2.2 million and BrasilAgro's Alto Taquari farm portion for BRL 189.4 million demonstrates active portfolio management
• The reduction in export taxes (soybean from 33% to 26%, wheat and corn from 12% to 9.5%) could potentially improve margins by approximately 5%

The company's decision to distribute a substantial dividend of ARS 45,000 million (7% yield) despite operational challenges signals confidence in its liquidity position. However, the 15.3% decline in adjusted EBITDA to ARS 134,961 million and compressed agricultural gross margins (from ARS 57,588 million to ARS 22,726 million) indicate ongoing operational pressures that require careful monitoring.

BUENOS AIRES, Argentina, Feb. 10, 2025 /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 2025 ended December 31, 2024.

HIGHLIGHTS

• The net result for the first half of fiscal year 2025 registered a loss of ARS 64,391 million. This result is mainly explained by the loss due to changes in the fair value of IRSA investment properties.
• The adjusted EBITDA for the period reached ARS 134,961 million, 15.3% lower than the same period in 2024. The agribusiness adjusted EBITDA was ARS 35,262 million and the Urban adjusted EBITDA (through IRSA), ARS 103,136 million.
• The 2025 campaign is developing with historically low commodity prices, although a slight recovery was observed in the last quarter, reduced input costs, and favorable weather conditions in the region. We planted 303,000 hectares in the region, 9% more than the previous season.
• In January 2025, the Argentine government announced a temporary reduction in crops tax exports until June 30, 2025, lowering soybean from 33% to 26% and wheat and corn from 12% to 9.5%. This had a positive impact on spot and future crop prices of approximately 5%.
• During the first half of fiscal year 2025, we sold a fraction of Los Pozos farm in Argentina for USD 2.2 million and our subsidiary BrasilAgro sold a fraction of its Alto Taquari farm for BRL 189.4 million.
• On November 2024, we distributed a cash dividend of ARS 45,000 million (dividend yield ~7%).

 

Financial Highlights (In millions of Argentine Pesos) 6M FY 2025 ended December 31, 2024
Income Statement	12/31/2024	12/31/2023
Agricultural Business Revenue	238,715	225,523
Agricultural Business Gross Profit	22,726	57,588
Urban Properties Revenues	170,141	183,583
Urban Properties Gross Profit	131,923	151,210
Consolidated Gross Profit	153,481	207,081
Consolidated results from Operations	(135,606)	449,429
Profit for the Period	(64,391)	266,118
Attributable to:
Cresud's Shareholders	(61,541)	106,267
Non-Controlling interest	(2,850)	159,851
EPS (Basic)	(103.27)	179.48
EPS (Diluted)	(103.27)	181.95
Balance Sheet	12/31/2024	06/30/2024
Current Assets	860,003	855,684
Non-Current Assets	3,095,323	3,351,393
Total Assets	3,955,326	4,207,077
Current Liabilities	818,215	796,577
Non-Current Liabilities	1,477,235	1,516,093
Total Liabilities	2,295,450	2,312,670
Non-Controlling Interest	920,622	1,051,029
Shareholders' Equity	1,659,876	1,894,407

The Company's market capitalization as of December 31, 2024, was approximately USD 761.8 million. (60,314,043 ADS with a price per ADS of USD 12.63)

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 2025 Results Conference Call on Tuesday, February 11, 2025, at 8:00 AM Eastern Time / 10:00 AM BA Time.

To access the Webinar:

https://zoom.us/webinar/register/WN_348neF8QTg2pCDSzie8_FA

Webinar ID: 951 4144 0099

Password: 620076

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 X: @cresudir

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

FAQ

What was Cresud's (CRESY) net loss for H1 FY2025?

Cresud reported a net loss of ARS 64,391 million for the first half of fiscal year 2025, mainly due to changes in IRSA investment properties' fair value.

How much did Cresud's (CRESY) adjusted EBITDA decrease in H1 FY2025?

Cresud's adjusted EBITDA decreased by 15.3% to ARS 134,961 million compared to the same period in 2024.

What was the dividend yield for Cresud (CRESY) in November 2024?

Cresud distributed a cash dividend of ARS 45,000 million in November 2024, representing approximately 7% dividend yield.

How did the Argentine export tax reduction affect Cresud's (CRESY) crop prices?

The temporary reduction in export taxes announced in January 2025 resulted in approximately 5% improvement in spot and future crop prices.

What was Cresud's (CRESY) market capitalization as of December 31, 2024?

Cresud's market capitalization was approximately USD 761.8 million as of December 31, 2024, with 60,314,043 ADS at USD 12.63 per ADS.