Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Management did not provide a full revenue or EPS table in the call, but said adjusted EBITDA declined in the quarter, mainly due to sugarcane and cattle, while grains performed better. Operating income including IRSA fell 12.4%, and there was a loss of ARS 6.6 billion from investment property valuation; net financial results were ARS 6.3 billion, and the quarter’s net result was ARS 5.2 billion, with attributable net result of ARS 3.5 billion. Cresud received $40.1 million of dividends during the fiscal year and another $24.5 million from Brasilagro after quarter-end, plus $7.8 million in cash dividends from IRSA. The company said its net debt was $389.6 million, it repurchased ARS 1 billion of stock, and it started paying an ARS 3.1 billion dividend with a 3% yield. No formal next-quarter or full-year numeric guidance was given; management said margins should decline somewhat because of higher input costs, but remain attractive, and that operational results should be strong if weather does not worsen.

Alejandro Elsztain emphasized that commodity prices remain supportive, but margins per acre are being squeezed by higher input costs and, in Argentina, by drought and frost. He highlighted growth in planted area, with 260,000 hectares planned versus 255,000 last year, and said Brazil is expanding. His tone was optimistic about real estate, noting active demand, a new farm acquisition in Brazil, and successful land sales in Paraguay, which he framed as the beginning of a broader buy-and-sell model.

Matías Gaivironsky focused on IRSA’s recovery and the financial impact of macro conditions. He said IRSA’s rental EBITDA has returned to above 2019 levels, hotels are showing strong results, and the sale of one floor at 200 Della Paolera brought in $12.6 million, which was used mainly to reduce debt; IRSA debt fell from $755 million to $307 million over two years. He also explained that peso appreciation relative to inflation affected reported results, noted net interest expense improved from ARS 4.6 billion to ARS 3 billion due to deleveraging, and said Cresud’s exchange offer had a 7% acceptance rate. On capital allocation, he said the company bought back ARS 1 billion of shares and started paying the ARS 3.1 billion dividend, while keeping flexibility on future buybacks and dividends.

Analysts asked about margins, debt maturities, the impact of Argentina’s soybean export FX measure, and whether Cresud would continue buybacks and dividends. Management said fertilizer and herbicide costs rose more than 30% in some cases, margins should be somewhat lower this year but still attractive, and Brazil is likely to see the biggest margin compression. On debt, management said the Central Bank’s rules still allow payment of the November note, and the remaining holdout amount for February should be covered if conditions do not change. They also said the ARS 200 soybean FX measure had a positive but modest impact, contributing about $2 million in gains, and that future buybacks/dividends will depend on debt, capex, and cash needs rather than explicit targets.