• Planted Area Increase: 9% increase in planted area year-over-year, achieving over 300,000 hectares.
• Dividend Distribution: $45,000 million pesos distributed in November, representing close to 7% dividend yield.
• Commodity Price Recovery: Soybean prices increased by 5% and corn by 7% in the last quarter.
• Tax Reduction: Export taxes on soybeans reduced from 33% to 26%, and on corn from 12% to 9.5% until June 30, 2025.
• Wheat Harvest: 13,000 hectares harvested, a 95% increase compared to the previous campaign, with total production up 65% to 45,000 tons.
• Cattle Activity: Increased to nearly 50,000 heads in Argentina, with sustained high prices.
• Fio Service Company: Trading volume expected to surpass ARS7 million, with significant growth in Argentina and Brazil.
• Net Loss: ARS61.5 billion pesos for the semester, with ARS64.4 billion pesos attributable to controlling interest.
• Debt: Stable at ARS323 million, with a reduction compared to the previous year after dividend payments.

• Warning! GuruFocus has detected 11 Warning Signs with CRESY.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cresud SACIF y A (NASDAQ:CRESY) reported a 9% increase in planted area compared to the previous year, achieving a record size in total agriculture across four countries.
• The company benefited from favorable climate conditions in the region, contributing to a positive outlook for crop yields.
• A reduction in crop export taxes in Argentina has led to a 5% increase in prices for farmers, benefiting the agricultural sector.
• Cresud SACIF y A (NASDAQ:CRESY) distributed a significant dividend of $45,000 million pesos in November, representing a 7% dividend yield.
• The company achieved 100% occupancy in its office portfolio, indicating strong demand and effective asset management.

Negative Points

• Cresud SACIF y A (NASDAQ:CRESY) reported a loss of ARS40.9 billion pesos, primarily due to non-cash effects related to the fair value of investment properties.
• The company experienced a decrease in tenant sales in its malls, with a decline of 8.5% compared to the same quarter last year.
• The hotel segment faced challenges with decreased revenues and occupancy due to the new economic environment in Argentina.
• The farming activity saw a drop in grain activity, attributed to lower prices and yields compared to the previous year.
• Cresud SACIF y A (NASDAQ:CRESY) faced negative financial results due to the appreciation of the peso, impacting the valuation of investment properties and dollar-denominated debt.

Q & A Highlights

Q: Could you provide guidance on capital allocation for the second half, including acquisitions, CapEx, dividends, and buybacks? A: Alejandro Elsztain, CEO: We recently completed a small share repurchase of less than 1%. We are exploring land purchases while selling mature assets. Our CapEx remains around ARS5 to ARS6 million annually.

Q: Can you discuss the regulatory environment regarding converting land bank assets to productive land? A: Alejandro Elsztain, CEO: The province of Salta is revising regulations to potentially develop more land. This could impact our projects in Anta, but the final outcome is uncertain.

Q: What are your expectations for the upcoming harvest? A: Alejandro Elsztain, CEO: We anticipate a better operational year compared to last year, with normal prices and yields. Most of the planned hectares have been planted, indicating a positive outlook.

Q: How will the new free trade deal with Europe affect your exports? A: Alejandro Elsztain, CEO: The deal increases beef export quotas to Europe, benefiting Argentinian farmers. It will also introduce European competition, encouraging efficiency in Argentina.

Q: Can you provide an update on Agrofy's performance? A: Alejandro Elsztain, CEO: Agrofy is reducing its workforce to approach break-even. The company is focusing on machinery and supplementary products, with expectations to reach break-even within a year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.