CRESUD INC current report, Q4 FY2024

CRESUD INC. Form 6-K Summary

Business Context and Reporting Period

CRESUD S.A.C.I.F. and A. (Cresud) is an Argentine company engaged in agribusiness and urban real estate (through IRSA). This Form 6-K, filed on November 7, 2024, reports financial results for the nine-month period ended September 30, 2024. The filing includes an English translation of a letter submitted to the Buenos Aires Stock Exchange.

Key Financial Metrics

Metric (Nine Months Ended Sept 30)2024 (ARS Millions)2023 (ARS Millions)
Net Result (Profit/Loss)(72,374)244,016
Attributable to Controlling Shareholders(39,562)126,011
Adjusted EBITDA73,97743,998 (Implied)
Agribusiness Adjusted EBITDA27,919N/A
Urban Adjusted EBITDA (IRSA)47,290N/A
Total Shareholder's Equity1,659,9642,228,360
Market Capitalization (as of Sept 30, 2024)USD 512.7 millionN/A

Note: The filing does not provide explicit values for revenue, cash flow, debt, or liquidity ratios. The 2023 Adjusted EBITDA is derived from the reported 68.0% increase in 2024.

Material Changes vs. Prior Period

  • Net Result: The company reported a net loss of ARS 72,374 million, a 129.7% decrease compared to the net profit of ARS 244,016 million in the same period of 2023.
  • Primary Driver: The decline in net result is primarily attributed to losses arising from changes in the fair value of IRSA investment properties.
  • Adjusted EBITDA: Despite the net loss, Adjusted EBITDA increased by 68.0% to ARS 73,977 million, driven by performance in both agribusiness and urban segments.
  • Equity: Total shareholder's equity decreased from ARS 2,228,360 million in 2023 to ARS 1,659,964 million in 2024.

Outlook, Management Commentary, and Corporate Actions

  • 2025 Campaign: Management reports good weather conditions and stable commodity prices. Costs are beginning to correct but remain high. The company plans to plant approximately 303,000 hectares, a 9% increase over the 2024 campaign.
  • Asset Sales: During the quarter, the company sold a fraction of the Los Pozos farm in Argentina for USD 2.2 million. Subsidiary Brasilagro sold a fraction of the Alto Taquari farm for BRL 189.4 million.
  • Dividends: On October 28, 2024, the Shareholders' Meeting approved a cash dividend distribution of ARS 45,000 million, representing a yield of approximately 7%.
  • Capital Structure: As of September 30, 2024, Eduardo Sergio Elsztain holds a 38.67% stake. There are 84,261,280 warrants outstanding expiring March 10, 2026. Full conversion would increase total shares to 704,409,020.

Investor Verification Checklist

  • Verify the specific impact of fair value adjustments on IRSA investment properties on the net loss.
  • Confirm the exact 2023 Adjusted EBITDA figure to validate the 68.0% growth calculation.
  • Review the detailed breakdown of "costs that are beginning to correct" to assess margin sustainability for the 2025 campaign.
  • Check the status of the ARS 45,000 million dividend payment and its impact on cash reserves.
  • Monitor the exercise rate of the 84.2 million outstanding warrants and potential dilution effects.