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

Rhea-AI Summary

CRESUD S.A.C.I.F. y A. reported a net loss of ARS 25,646 million for the 9-month period ending March 31, 2024, due to inflation impact on investment properties. However, the adjusted EBITDA increased by 61.4% compared to 2023. The company approved a cash dividend of ARS 30,000 million. Brasilagro sold a fraction of its establishment, generating BRL 365.4 million in gains. The business outlook for 2024 includes better prospects in Argentina's agribusiness.

Positive

• Adjusted EBITDA increased by 61.4% in FY 2024 compared to 2023.

• Approval of a cash dividend of ARS 30,000 million for shareholders.

• Brasilagro's sale of a fraction of its establishment for BRL 365.4 million.

• Positive outlook for Argentina's agribusiness in 2024.

Negative

• Net loss of ARS 25,646 million for the 9-month period ending March 31, 2024.

• Inflation impact on investment properties affecting financial results.

Insights

Financial Analyst

The detailed financial performance of CRESUD's third quarter indicates a significant shift from a profitable position to a loss, due to the impact of inflation on fair value adjustments. The net loss of 25,646 million contrasts sharply with the prior year's profit of 140,918 million. However, the adjusted EBITDA presents a contrasting picture, with a 61.4% increase compared to the same period last year, reflecting operational strength and efficiency. From a stakeholder's perspective, the disparity between EBITDA performance and net results may signal underlying challenges in asset valuation that could affect future profitability.

The strategic disposal of farmland in Brazil is a notable one-off event, with the recognition of a BRL 365.4 million gain in the next quarter suggesting potential for a positive impact on future earnings. Investors may view the new cash dividend approval of ARS 30,000 million as a sign of confidence by the board in the company's liquidity and ability to generate cash flows despite the current loss.

Market Analyst

Considering the broader agricultural sector, CRESUD's performance must be analyzed in the context of external factors such as international commodity prices and regional climatic conditions. The company's report of mixed climatic conditions and lower commodity prices suggests an industry-wide impact that could affect other players in the market. A decline in global commodity prices often leads to reduced revenue for agricultural firms, yet CRESUD's increase in adjusted EBITDA could reflect a well-managed cost structure and diversified income streams, potentially setting it apart from peers.

Moreover, the reduction in planted area and aligned production levels points to a strategic adjustment to market conditions, which may bode well for operational efficiency. The declared dividend indicates a commitment to shareholder returns, a positive sign to retail investors especially in light of the overall market capitalization of approximately USD 530.7 million.

BUENOS AIRES, Argentina, May 10, 2024 /PRNewswire/ -- CRESUD S.A.C.I.F. y A. (NASDAQ: CRESY, BYMA: CRES), leading Latin American agricultural company, announces today its results for the third quarter of FY 2024 ended March 31, 2024.

HIGHLIGHTS

• The net result for the nine-month period of fiscal year 2024 recorded a loss of ARS 25,646 million compared to a profit of ARS 140,918 million in the same period of 2023 due to the impact of exposure to inflation on the fair value of investment properties of IRSA. The result attributable to the controlling shareholder was a profit of ARS 22,340 million.
• The adjusted EBITDA for the period reached ARS 164,332 million, 61.4% higher than the same period in 2023. Agribusiness adjusted EBITDA reached ARS 45,504 million because of better productive results and farmland sales in Argentina.
• The 2024 regional campaign is being developed with a slightly lower planted area than the last campaign, mixed climatic conditions, lower international commodity prices and expected production levels in line, with better prospects in Argentina than in the rest of the region.
• During the third quarter, Brasilagro sold a fraction of 12,335 hectares (8,796 productive) of its Chaparral establishment for the sum of BRL 365.4 million. The gain will be recognized in the financial statements of the fourth quarter of FY 2024.
• In May 2024, we approved a new cash dividend for ARS 30,000 million (ARS/share 50.5482 and ARS/GDS 505.4820), which will be distributed since May 14th.

Financial Highlights
(In millions of Argentine Pesos)
9M FY 2024 ended March 31, 2024

Income Statement	03/31/2024	03/31/2023
Agricultural Business Revenue	238,561	221,656
Agricultural Business Gross Profit	62,481	33,985
Urban Properties Revenues	177,236	168,834
Urban Properties Gross Profit	145,998	138,557
Consolidated Gross Profit	206,006	169,854
Consolidated results from Operations	(233,224)	(70,125)
Profit for the Period	(25,646)	140,918
Attributable to:
Cresud's Shareholders	22,340	79,463
Non-Controlling interest	(47,986)	61,455
EPS (Basic)	37.73	135.07
EPS (Diluted)	31.91	114.16
Balance Sheet	03/31/2024	06/30/2023
Current Assets	681,286	673,512
Non-Current Assets	2,304,638	2,677,323
Total Assets	2,985,924	3,350,835
Current Liabilities	629,442	625,042
Non-Current Liabilities	1,021,999	1,221,296
Total Liabilities	1,651,441	1,846,338
Non-Controlling Interest	754,213	852,640
Shareholders' Equity	1,334,483	1,504,497

The Company's market capitalization as of March 31, 2024, was approximately USD 530.7 million. (59,430,440 ADS with a price per ADS of USD 8.93)

Cresud, leading Argentinean agricultural company with a growing presence in Latin American countries, cordially invites you to participate in its third quarter of the FY 2024 Results Conference Call on Monday, May 13, 2024, at 2:00 PM Eastern Time / 3:00 PM BA Time.

To access the Webinar:
https://zoom.us/webinar/register/WN_lzE9fnStSnGQ4A6zwe9uyg 

Webinar ID: 925 0329 2206
Password: 263201

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-third-quarter-of-fiscal-year-2024-ended-march-31-2024-302142331.html

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

FAQ

What was CRESUD S.A.C.I.F. y A.'s net loss for the 9-month period ending March 31, 2024?

CRESUD S.A.C.I.F. y A. reported a net loss of ARS 25,646 million for the 9-month period ending March 31, 2024.

By how much did CRESUD S.A.C.I.F. y A.'s adjusted EBITDA increase in FY 2024 compared to 2023?

CRESUD S.A.C.I.F. y A.'s adjusted EBITDA increased by 61.4% in FY 2024 compared to 2023.

What dividend did CRESUD S.A.C.I.F. y A. approve for its shareholders?

CRESUD S.A.C.I.F. y A. approved a cash dividend of ARS 30,000 million for its shareholders.

What sale did Brasilagro make during the third quarter of FY 2024?

Brasilagro sold a fraction of its Chaparral establishment, generating BRL 365.4 million in gains.

What is the business outlook for Argentina's agribusiness in 2024 according to CRESUD S.A.C.I.F. y A.?

The business outlook for 2024 includes better prospects in Argentina's agribusiness.