CRESUD INC. - 6-K Filing Summary
Business Context and Reporting Period
Company: CRESUD INC (Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria)
Reporting Period: Three months ended September 30, 2025 (First Quarter of Fiscal Year 2026)
Filing Date: November 25, 2025
Business Segments: Agricultural Business (crops, cattle, land sales) and Urban Properties & Investments (shopping malls, offices, developments via subsidiary IRSA).
Accounting Basis: Unaudited Condensed Interim Consolidated Financial Statements prepared in accordance with IFRS and IAS 29 (Hyperinflationary Economies). All amounts are in millions of Argentine Pesos (ARS) unless otherwise noted.
Key Financial Metrics
| Metric (ARS Millions) | Q1 2026 (Sep 30, 2025) | Q1 2025 (Sep 30, 2024) |
|---|---|---|
| Revenues | 318,529 | 269,701 |
| Gross Profit | 114,175 | 86,958 |
| Profit from Operations | 264,985 | (227,447) |
| Net Profit for the Period | 110,133 | (77,887) |
| Net Profit Attributable to Parent | 36,844 | (34,655) |
| EBITDA (Unaudited) | 270,022 | (213,414) |
| Adjusted EBITDA (Unaudited) | 58,764 | 97,446 |
| Total Assets | 5,839,158 | 4,874,293 |
| Total Liabilities | 3,313,708 | 2,687,182 |
| Cash and Cash Equivalents | 224,748 | 129,270 |
| Net Debt (CRESUD + Brasilagro) | USD 348.9M | N/A |
Material Changes vs. Prior Period
- Profitability Turnaround: The Company reported a net profit of ARS 110,133 million, a significant improvement from a net loss of ARS 77,887 million in the prior year. This is primarily driven by a net gain of ARS 217,265 million from the fair value adjustment of investment properties (Urban segment), compared to a loss of ARS 292,780 million in Q1 2025.
- Revenue Growth: Consolidated revenues increased 18.1% year-over-year to ARS 318,529 million. Agricultural revenues rose 25.4% to ARS 190,163 million, while Urban properties revenues increased 8.1% to ARS 103,202 million.
- Adjusted EBITDA Decline: Despite the net profit increase, Adjusted EBITDA decreased 39.7% to ARS 58,764 million. This decline is attributed to lower margins in the agricultural segment (specifically cattle and sugarcane) and the exclusion of fair value gains in the Adjusted EBITDA calculation.
- Segment Performance:
- Urban Properties: Generated ARS 267,228 million in segment profit, driven by fair value revaluations of shopping malls and offices.
- Agricultural: Reported a segment loss of ARS 4,400 million, contrasting with a profit of ARS 13,535 million in the prior year. The loss was driven by the "Land Development and Sales" sub-segment (loss of ARS 10,292 million) due to the absence of farmland sales in the current quarter.
- Financial Results: Net financial results swung from a gain of ARS 59,979 million in Q1 2025 to a loss of ARS 69,482 million in Q1 2026, largely due to foreign exchange losses (ARS 63,869 million) and inflation adjustments.
Guidance, Outlook, and Risks
- Outlook: Management expects the 2026 agricultural campaign to progress under favorable weather conditions. In Argentina, the reduction of export taxes and exchange rate liberalization are viewed positively. The Company plans to expand planted areas and intensify livestock operations (feedlots).
- Urban Real Estate: IRSA expects positive performance in rental segments. Construction on the "Ramblas del Plata" project in Puerto Madero Sur is expected to begin soon.
- Capital Markets & Dividends:
- Dividends: On November 7, 2025, the Company distributed a cash dividend of ARS 65,080 million and an in-kind dividend of ARS 28,702 million (IRSA shares).
- Debt Issuance: Issued Series XLVIII Notes (USD 43.7M, 8.0% interest) in July 2025 and Series XLIX Notes (USD 31.3M, 7.25% interest) in September 2025.
- Warrants: Significant warrant exercises occurred in September 2025, raising USD 7.1 million and increasing share count to 631,844,155.
- Risks & Contingencies:
- Legal: Ongoing litigation with IDBD Development Corporation Ltd. regarding a claim of NIS 140 million. A provision has been recorded, and the case is in the evidentiary stage.
- Market: Input costs remain high relative to commodity prices. International commodity prices are at historically low levels.
- Restatement: The filing includes a retroactive restatement of prior periods to correct an error in the inflation adjustment of share premium related to warrant exercises.
Key Facts for Investor Verification
- Source of Profit: Verify the sustainability of the net profit, which is heavily reliant on non-cash fair value adjustments of investment properties (ARS 217,265 million) rather than core operational cash flow.
- Adjusted EBITDA Trend: Note the 39.7% decline in Adjusted EBITDA, indicating pressure on core operational margins in both agriculture and urban segments despite revenue growth.
- Debt Structure: Review the maturity profile of the new USD-denominated notes (Series XLVIII and XLIX) and the impact of high interest rates on future financial results.
- Dividend Composition: Confirm the valuation of the in-kind dividend (IRSA shares) and the impact of the recent warrant exercises on share dilution.
- Legal Exposure: Monitor the status of the IDBD lawsuit, as the outcome could impact future provisions or cash outflows.