The Argentinian Government has reduced export taxes on agricultural products and plans to fully eliminate them. This decision will increase Cresud's net income. Commodity prices have experienced a significant decline in recent years. Since they are cyclicals, Cresud's revenues could increase in the upcoming years. The urban properties and investment business of Cresud is a profitable business, and could increase its operation due to a better outlook in the Argentinian economy.
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (NASDAQ:CRESY ) Q3 2025 Earnings Conference Call May 12, 2025 2:00 PM ET Company Participants Santiago Donato - IRO Alejandro Elsztain - CEO Matias Gaivironsky - Chief Administrative Officer and CFO Conference Call Participants Santiago Donato Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of CRESUD, and I welcome you to the Third Quarter of Fiscal Year 2025 Results Conference Call.
Cresud's Q2 2025 earnings reflect a struggling Argentinian agricultural sector with low prices, high costs, and an appreciated currency, leading to poor performance. The company's complex reporting, compounded by hyperinflation accounting and partial ownership consolidations, makes it difficult for investors to understand its financial health. Sum-of-the-parts analysis suggests Cresud is not attractive as its individual parts can be accessed separately; I maintain a Hold rating.
| Industrial Conglomerates Industry | Industrials Sector | Alejandro Gustavo Elsztain CEO | NASDAQ (NGS) Exchange | 226406106 CUSIP |
| AR Country | 2,760 Employees | 28 Nov 2025 Last Dividend | 28 Nov 2025 Last Split | - IPO Date |
Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria is an Argentine company with a diversified business portfolio primarily focused on agriculture. The company has established itself as a prominent producer of basic agricultural commodities not only in Brazil but also across various Latin American countries. Founded in 1936 and headquartered in Buenos Aires, Argentina, Cresud operates through two main segments: Agricultural Business, and Urban Properties and Investment Business. The company has a multifaceted operation model that encompasses the cultivation and sale of a variety of crops, cattle breeding and fattening, agricultural services, and leasing of farms. Apart from its agricultural activities, Cresud is also engaged in the leasing and selling of urban and rural properties, contributing to its diversified business model.
Under this segment, Cresud engages in the cultivation, harvesting, and sale of various crops including wheat, corn, soybeans, cotton, and sunflower. The company also produces sugarcane. Its operations encompass the production of grain derivatives such as flour and oil, providing a comprehensive suite of agricultural products to its customer base.
Cresud is in the business of breeding, purchasing, and fattening cattle for sale to meat processors and local livestock markets. This service leverages Argentina's rich pastoral lands and contributes to the country's vibrant meat industry.
The company offers a range of services designed to support the agricultural sector. These include leasing of farms to third parties, farm management services, and brokerage activities, which enable Cresud to maximize the utilization and productivity of its extensive land assets.
Outside the agricultural sphere, Cresud engages in the leasing, renting, and service provision of commercial spaces in shopping malls, office buildings, and other rental properties. The Urban Properties and Investment Business segment also handles the development, maintenance, and sale of undeveloped parcels of land and trading properties. This diversification into real estate capitalizes on the urban developments and provides a steady income stream separate from its agricultural operations.
In addition to its core businesses, Cresud operates hotels and engages in entertainment activities. This aspect of the business takes advantage of the tourism sector, further diversifying its income sources and leveraging its real estate assets for hospitality purposes.