CRESUD S.A.C.I.F. y A. announces its results for the second quarter of Fiscal Year 2024 ended December 31, 2023
- 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
- None.
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.
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.
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.
HIGHLIGHTS
- The net result for the first semester of fiscal year 2024 recorded a gain of
ARS 122,205 million compared toARS 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 wasARS 48,800 million , compared toARS 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 wasARS 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 , forUSD 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 , forUSD 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
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:
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
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
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SOURCE Cresud S.A.C.I.F. y A.
FAQ
What was the net result for the first semester of fiscal year 2024?
What was the adjusted EBITDA for the period?
What was the adjusted EBITDA of the agricultural segments?
What is the outlook for the 2024 campaign?
What agricultural activities did Cresud engage in during the semester?
What was the conclusion of the dividend distribution process?
What was Cresud's market capitalization as of December 31, 2023?
