Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRES) Q2 2025 earnings summary

Executive summary

• Planted area increased 9% year-over-year, reaching a record size across four countries, mainly in leased farms in Argentina, supported by favorable climate and improved commodity prices, though rainfall deficit in Argentina may impact yields.

• Dividend distribution of ARS 45,000 million (~7% yield) approved and paid in November 2024.

• Temporary reduction in Argentine crop export taxes until June 30, 2025, led to a ~5% increase in spot and future prices for key crops.

• Real estate sales were limited in Q2, but fractions of Los Pozos (Argentina) and Alto Taquari (Brazil) farms were sold.

• Agrofy reduced burn rate and staff, aiming for breakeven within a year.

Financial highlights

• Net result for the semester varied: ARS 159,851 million profit in one report, but a net loss of ARS 61.5–64.4 billion in others, mainly due to negative valuation of investment properties.

• Adjusted EBITDA reached ARS 134,961 million, down 15.3% year-over-year; operating income (excluding fair value changes) was ARS 304,210 million, up 109% year-over-year.

• Net debt decreased to USD 298 million as of December 31, 2024, down 23.4% from the previous year.

• Debt remained stable at $323 million after dividend payments.

• Cash and cash equivalents at period end were ARS 97,928 million.

Outlook and guidance

• Expectation of a much better operational year with normal prices, costs, and yields anticipated for the upcoming harvest.

• Sustained commodity prices and input cost reductions expected to support margin improvements.

• Optimism for livestock activity and real estate market, with increased activity and liquidity in Argentina and Brazil.

• Temporary export tax reductions in Argentina expected to benefit near-term results.

• Continued focus on cost reduction, asset sales, and liquidity management.