Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria WT EXP 030926 (CRESW) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents mixed signals: while Cresud received significant dividends and has an optimistic outlook on farmland prices and expansion, there are concerns about commodity price volatility, currency risks, and unclear management responses. The Q&A highlights potential sales and expansion but lacks specificity, which may cause investor hesitation. Overall, the sentiment is neutral as positive and negative factors balance out.
Key Financial Performance
Dividends received from subsidiaries $66 million in total, with $5 million from Brazil and $61 million from IRSA. This is a significant inflow of dividends for the quarter.
Dividends paid by Cresud $64 million, with 70% in cash and 30% in kind (IRSA shares and Cresud shares), yielding 8%.
Expected planted area 321,000 hectares, representing a 7.4% year-over-year growth driven by Argentina and Brazil, mainly through leasing more land.
Soybean prices in Argentina Increased from $300 to $360 per ton during a temporary 0% export tax period, then stabilized at $335 per ton. This was due to government tax policy changes.
Cattle stock and production Stock remains at 60,000 heads, but production increased from 7 million kilograms to over 10 million kilograms, driven by intensified feedlot operations and higher productivity.
FyO EBITDA $24 million, with the company becoming the largest broker in Argentina, holding more than 6% of the market share.
IRSA net gains ARS 163 million, driven by fair value adjustments of investment properties. Shopping mall EBITDA increased by 4%.
Debt structure Reduced from $350 million to $329 million year-over-year, attributed to dividend collections and debt amortization.
Net financial results A loss due to dollar-denominated debt and higher devaluation compared to inflation.
Net results for the quarter ARS 110 billion, with ARS 36.8 billion attributable to controlling interest, compared to a loss in the previous year.
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Operating Highlights
Biggest campaign in company history: The company is launching its largest campaign ever, with favorable weather conditions for winter and summer plantations in South America.
Cattle business expansion: High global cattle prices are driving increased activity in Salta and La Pampa regions, with intensified production in feedlots.
FyO brokerage growth: FyO, Cresud's brokerage arm, has become the largest in Argentina, achieving $24 million EBITDA and expanding services in Brazil.
Export tax changes in Argentina: Temporary 0% export tax on soybeans boosted prices, benefiting Cresud's stock sales during the period.
Regional market dynamics: Tariff discussions between China and the U.S. are influencing soybean trade flows, with South America gaining a competitive edge.
Improved margins for Argentine farmers: Reduction in export taxes and narrowing of the dollar gap have improved profitability for farmers.
Increased planted area: Planted area grew by 7.4% year-over-year, driven by land leasing in Argentina and Brazil.
Cattle productivity improvements: Productivity increased with professional feedlots, achieving over 10 million kilograms of production.
Dividend payments and strategy: Cresud paid $64 million in dividends, with 70% in cash and 30% in kind, yielding 8.4%.
Real estate strategy: No farmland sales occurred in Q1, but operational improvements are expected to enhance liquidity for real estate.
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Risk or Challenges
Export Taxes and Government Policies: The Argentine government's fluctuating export tax policies, including temporary tax reductions, create uncertainty in the grain market. This unpredictability affects pricing and farmer margins, potentially impacting Cresud's financial performance.
Commodity Price Volatility: Soybean and other commodity prices are influenced by international trade tensions, such as U.S.-China tariff discussions. This volatility can lead to reduced margins for farmers and affect Cresud's profitability.
Real Estate Liquidity: The lack of farmland sales in the first quarter compared to the previous year highlights potential challenges in real estate liquidity, which could impact Cresud's revenue from asset disposals.
Currency Exchange and Inflation: The gap between official and unofficial exchange rates in Argentina has narrowed, but currency devaluation and inflation remain risks that could affect operational costs and financial results.
Climate Conditions: While current weather conditions are favorable, any adverse changes could disrupt planting and harvesting activities, impacting agricultural yields and revenues.
Cattle Market Dynamics: High cattle prices driven by global demand are beneficial now, but any downturn in demand or price corrections could negatively impact Cresud's cattle operations.
Debt and Financial Management: Cresud's reliance on dollar-denominated debt exposes it to risks from currency devaluation, which could increase financial costs and impact net results.
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Guidance & Outlook
Biggest campaign in history: The company is beginning its largest campaign ever, with favorable weather conditions for winter and summer plantations in South America.
Expected planted area growth: The company expects a 7.4% year-over-year growth in planted area, driven by Argentina and Brazil, reaching a total of 321,000 hectares.
Commodity price trends: Slight increases in commodity prices are expected, with potential gains for Argentine farmers due to reduced export taxes and improved margins.
Export tax reductions: The Argentine government has shown signs of reducing export taxes, which could improve margins for farmers and liquidity for real estate.
Livestock productivity: The company plans to intensify cattle production, aiming to surpass 10 million kilograms next year, supported by professional feedlots in La Pampa and Los Pozos.
Cattle market trends: High global cattle prices, driven by U.S. demand, are expected to benefit the company’s livestock operations.
Weather conditions: Good regional weather conditions are anticipated to support normal campaign progress for both winter and summer crops.
FyO expansion: The company’s commercial services segment, FyO, is expanding in Brazil and Argentina, with a market share of over 6% and an EBITDA of $24 million.
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Shareholder Return Plan
Dividends received from subsidiaries: In November, Cresud received $66 million in dividends from its subsidiaries, including $61 million from IRSA and $5 million from Brazil.
Dividends paid by Cresud: Cresud paid $64 million in dividends, with 70% in cash and 30% in kind (IRSA shares and Cresud shares), yielding 8%.
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Key Q&A
Q:What is the status of the payment abroad or to the ADRs for Cresud and IRSA?
A:The payment has already been made to the Bank of New York, which is responsible for converting pesos into dollars and setting the record date. The record date is expected to be fixed next week, and the payment will occur 10 days after the record date.
Q:Are there any plans to sell farmland assets in the region in the coming quarters, and what is the outlook for farmland prices?
A:Farmland sales are part of the strategy, and there are ongoing discussions for sales in the next three quarters. In Argentina, farmland prices are appreciating due to increased liquidity, while in Brazil and Paraguay, prices are adjusting slower due to higher capital costs and reduced liquidity.
Q:Will there be any share repurchase programs given the optimistic outlook for Argentina and the farming sector?
A:Share repurchases have been done in the past, but for this quarter, the focus is on cash payments. Share buybacks are considered based on results and liquidity, and they may be revisited if the cash situation is favorable.
Q:Does the company plan further leasing or purchasing of farmland in Argentina?
A:The company plans to grow both leasing and purchasing of farmland, focusing on agriculture. Leasing is expected to grow more due to lower capital requirements. The company is also expanding irrigation efforts, particularly in Brazil, to improve productivity and margins.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the exact timing of the record date and payment process for ADRs, as well as the precise scale or timeline for farmland sales and irrigation expansion.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
America price
Argentina Brazil
Argentina soybean
Brazil service
Chicago
Cresud dividend
El Tigre
South America
activity cattle
affection
balance
basis
broker country
cattle world
corn wheat
cow
dividend subsidiary
event
export soybean
farm Los
feedlot
graph
humidity
kilogram
livestock
page Page
planting
price cattle
productivity
rebound price
signal
step
stock
summer
tariff discussion
wheat barley
winter plantation
CRESY Transcript
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Q3 2026 Earnings Call Transcript
Positive5-8
Cresud's earnings call reflects a positive sentiment, driven by record crop production, improved livestock margins, and strategic debt management. While risks like rising input costs and inflation exist, they are mitigated by favorable macroeconomic developments, such as export tax reductions and increased trade agreements. The Q&A section revealed optimism about Argentina's agricultural sector and potential real estate transactions. Despite some management vagueness on land sales, the overall outlook is growth-oriented. These factors, combined with optimistic guidance, suggest a likely 2% to 8% stock price increase.
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria WT EXP 030926 (CRESW) Q2 2026 Earnings Call Transcript
Unknown2-10
The earnings call presents a mixed outlook. Positive factors include the largest campaign in history, expected growth in planted area, and dividend payments. However, challenges such as delayed harvests, competitive pressures, and financial losses due to exchange rates weigh negatively. The Q&A reveals optimism about BrasilAgro and IRSA but highlights uncertainties in trade agreements and commodity prices. Overall, the sentiment is balanced, leading to a neutral rating.
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria WT EXP 030926 (CRESW) Q1 2026 Earnings Call Transcript
Unknown11-12
The earnings call presents mixed signals: while Cresud received significant dividends and has an optimistic outlook on farmland prices and expansion, there are concerns about commodity price volatility, currency risks, and unclear management responses. The Q&A highlights potential sales and expansion but lacks specificity, which may cause investor hesitation. Overall, the sentiment is neutral as positive and negative factors balance out.
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Q3 2025 Earnings Call Transcript
Unknown5-12
The earnings call presents mixed signals. While there is a notable profit turnaround and credit rating upgrade, significant challenges remain, including operating results decline, losses in grains and FyO, and supply chain issues. The Q&A reveals uncertainties about dividends and long-term strategies, which dampen positive sentiments. Given these mixed factors, the stock is likely to remain stable in the short term.
CRESY Report
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