CRESUD S.A.C.I.F. y A. announces its results for the third quarter of Fiscal Year 2025 ended March 31, 2025

Rhea-AI Summary

Cresud (NASDAQ: CRESY), a leading Argentine agricultural company, reported strong results for Q3 FY2025. The company posted a profit of ARS 57,895 million for the nine-month period, compared to a loss of ARS 39,987 million in 2024. The agricultural business achieved an adjusted EBITDA of ARS 31,072 million, while the urban properties segment recorded ARS 156,380 million. The company planted 300,000 hectares and expects to produce 867,000 tons of grains, a 23% increase from the previous campaign. Favorable government measures include reduced export duties on soybeans (33% to 26%) and wheat/corn (12% to 9.5%) until June 2025. Notable asset sales include a portion of "Los Pozos" farm for USD 2.2 million and BrasilAgro's sale of "Alto Taquari" farm for BRL 189.4 million. The company's market cap stood at USD 653.5 million as of March 31, 2025.

Positive

• Turned profitable with ARS 57,895 million profit vs ARS 39,987 million loss year-over-year
• Expected 23% increase in grain production to 867,000 tons
• Government reduced export duties on key crops (soybeans: 33% to 26%, wheat/corn: 12% to 9.5%)
• Strong cattle activity with good prices, margins, and production levels
• Successful asset monetization through farm sales in Argentina and Brazil

Negative

• Agricultural Business Revenue declined to ARS 353,159 million from ARS 371,988 million
• Agricultural Business Gross Profit decreased to ARS 54,117 million from ARS 97,424 million
• Urban Properties Revenues dropped to ARS 269,586 million from ARS 276,363 million
• Irregular rainfall patterns in Northern Argentina affecting agricultural operations

Insights

Agricultural Finance Specialist

Cresud swings to ARS 57.9B profit from previous year's loss, with promising agricultural production and beneficial policy changes.

Cresud's financial performance shows a remarkable turnaround with a profit of ARS 57,895 million for the nine-month period of FY 2025, compared to a loss of ARS 39,987 million in the same period of 2024. This significant improvement comes despite slightly lower agricultural business revenue, which decreased from ARS 371,988 million to ARS 353,159 million.

The agricultural segment's adjusted EBITDA reached ARS 31,072 million, while their urban properties and investments business through IRSA contributed significantly with ARS 156,380 million in adjusted EBITDA. The company is experiencing strong operational conditions with favorable rainfall patterns (despite some irregularity in Northern Argentina) and has expanded its agricultural footprint to 300,000 hectares across the region.

Expected grain production of approximately 867,000 tons represents a 23% increase over the previous campaign, suggesting improved operational efficiency and favorable growing conditions. The cattle segment is performing exceptionally well with strong prices, margins, and production levels in Argentina.

Two recent government policy changes provide significant tailwinds: first, a temporary reduction in export duties until June 30, 2025 (soybeans from 33% to 26%, wheat and corn from 12% to 9.5%) which directly improves profitability; and second, the partial elimination of capital controls, which should facilitate better currency exchange conditions. These policy shifts have immediate positive impacts on grain prices and business operations.

Asset monetization continues with the partial sale of the "Los Pozos" farm for USD 2.2 million and BrasilAgro's sale of a portion of "Alto Taquari" farm for BRL 189.4 million, demonstrating the company's strategic management of its land portfolio.

The company's market capitalization stands at approximately USD 653.5 million as of March 31, 2025, reflecting the market's current valuation of these improved business conditions.

BUENOS AIRES, Argentina, May 9, 2025 /PRNewswire/ -- Cresud S.A.C.I.F. y A. (NASDAQ: CRESY, BYMA: CRES), leading Argentine agricultural company, announces today its results for the third quarter of FY 2025 ended March 31, 2025.

HIGHLIGHTS

• The net result for the nine-month period of the 2025 fiscal year recorded a profit of ARS 57,895 million, compared to a loss of ARS 39,987 million in the same period of 2024.
• The adjusted EBITDA of the segments that make up the agricultural business was ARS 31,072 million, while the urban properties and investments business (through IRSA) recorded ARS 156,380 million.
• The 2025 campaign progressed with a good level of rainfall in the region, despite some irregularity in frequency specially in Northern Argentina, with sustained commodity prices and stable input costs. We planted 300,000 hectares in the region and expect to produce approximately 867,000 tons of grains, 23% more than in the previous campaign.
• Cattle activity in Argentina is developing with very good prices, margins, and production levels.
• During the quarter and after the closing, the Argentine government announced two favorable measures for the agricultural sector. First, a temporary reduction, until June 30, 2025, in export duties for soybeans, from 33% to 26%, and for wheat and corn, from 12% to 9.5%, with a positive impact on available and future grain prices. Second, the partial elimination of capital controls, with a direct impact on the convergence of exchange rates.
• During the nine-month period of the 2025 fiscal year, we sold a portion of the "Los Pozos" farm in Argentina for USD 2.2 million, and our subsidiary BrasilAgro sold a portion of "Alto Taquari" farm for BRL 189.4 million.

Financial Highlights
(In millions of Argentine Pesos)
9M FY 2025 ended March 31, 2025

Income Statement	03/31/2025	03/31/2024
Agricultural Business Revenue	353,159	371,988
Agricultural Business Gross Profit	54,117	97,424
Urban Properties Revenues	269,586	276,363
Urban Properties Gross Profit	206,917	227,653
Consolidated Gross Profit	259,097	321,226
Consolidated results from Operations	7,882	(363,662)
Profit for the Period	57,895	(39,987)
Attributable to:
Cresud's Shareholders	22,228	34,835
Non-Controlling interest	35,667	(74,822)
EPS (Basic)	37.27	58.83
EPS (Diluted)	31.14	49.76
Balance Sheet	03/31/2025	06/30/2024
Current Assets	1,173,788	929,008
Non-Current Assets	3,448,008	3,638,579
Total Assets	4,621,796	4,567,587
Current Liabilities	936,607	864,837
Non-Current Liabilities	1,783,058	1,646,010
Total Liabilities	2,719,665	2,510,847
Non-Controlling Interest	1,056,548	1,141,092
Shareholders' Equity	1,902,131	2,056,740

The Company's market capitalization as of March 31, 2025, was approximately USD 653.5 million. (60,504,918 ADS with a price per ADS of USD 10.8)

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 2025 Results Conference Call on Monday, May 12, 2025, at 2:00 PM Eastern Time / 3:00 PM BA Time.

To access the Webinar:
https://zoom.us/webinar/register/WN_HkWCcRhyTXSj0wojdiCShQ
Webinar ID: 979 5279 7878
Password: 326784

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) profit for the nine-month period of FY2025?

Cresud reported a profit of ARS 57,895 million for the nine-month period of FY2025, compared to a loss of ARS 39,987 million in the same period of 2024.

How many hectares did Cresud plant in FY2025 and what is the expected grain production?

Cresud planted 300,000 hectares and expects to produce approximately 867,000 tons of grains, which is 23% more than the previous campaign.

What changes in export duties were announced for Cresud's agricultural products in 2025?

The government announced temporary reductions in export duties until June 30, 2025: soybeans reduced from 33% to 26%, and wheat and corn reduced from 12% to 9.5%.

What was Cresud's (CRESY) market capitalization as of March 31, 2025?

Cresud's market capitalization was approximately USD 653.5 million, with 60,504,918 ADS at a price of USD 10.8 per ADS.

What significant asset sales did Cresud complete during the nine-month period of FY2025?

Cresud sold a portion of the 'Los Pozos' farm in Argentina for USD 2.2 million, and its subsidiary BrasilAgro sold a portion of 'Alto Taquari' farm for BRL 189.4 million.