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.

You have reached the limit. Sign up to access full content

Get started

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.

You have reached the limit. Sign up to access full content

Get started

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.

You have reached the limit. Sign up to access full content

Get started

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.

You have reached the limit. Sign up to access full content

Get started

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%.

You have reached the limit. Sign up to access full content

Get started

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.

You have reached the limit. Sign up to access full content

Get started

Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

CRESY Transcript

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria WT EXP 030926 (CRESW) Q1 2026 Earnings Call Transcript

Unknown11-12

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.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Q1 2025 Earnings Call Transcript

Positive11-11

The earnings call summary indicates strong financial performance with positive net income and reduced net debt. The company is also benefiting from favorable government policies in agriculture, which should enhance liquidity and opportunities. The Q&A section reveals management's optimism despite some uncertainties, such as the drought in Brazil, which they expect will not materially impact results. Additionally, the announced buyback program and high dividend yield are likely to positively influence stock price. However, debt management risks and supply chain challenges are concerns, but overall sentiment is positive.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Q4 2023 Earnings Call Transcript

Neutral9-11

CRESY Report

Frequently Asked Questions

Where does this earnings call transcript come from?

All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.

How soon is the transcript available after the earnings call ends?

Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.

Is the transcript edited or altered in any way?

No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.

Why do some answers appear as “Unclear” or “Inaudible”?

When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.

Who creates the AI Summary and Key Q&A highlights shown above the transcript?

They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.