CRESUD INC current report, Q2 FY2026

CRESUD INC. - 6-K Filing Summary

Business Context and Reporting Period

Company: CRESUD INC (Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria)
Reporting Period: Nine months ended March 31, 2026 (Fiscal Year 93)
Business Segments: Agricultural Business (crops, cattle, land sales) and Urban Properties & Investments (shopping malls, offices, hotels via IRSA).
Accounting Basis: Unaudited Condensed Interim Consolidated Financial Statements prepared in accordance with IFRS and IAS 29 (Hyperinflationary Economies). All amounts in millions of Argentine Pesos (ARS) unless otherwise noted.

Key Financial Metrics

Metric (ARS Millions) 9 Months Ended Mar 31, 2026 9 Months Ended Mar 31, 2025 (Restated)
Revenues 965,514 838,799
Gross Profit 383,309 343,581
Profit from Operations 211,588 10,388
Net Income (Profit for the period) 231,308 77,358
Attributable to Parent 121,665 30,061
EBITDA (Unaudited) 234,789 44,627
Adjusted EBITDA (Unaudited) 202,839 230,379
Cash & Cash Equivalents 139,923 313,784
Total Borrowings 1,775,706 1,680,042
Net Debt (USD Millions) 635.2 (Combined) N/A

Note: Net Debt calculated as CRESUD Net Debt (USD 350.9M) + IRSA Net Debt (USD 284.3M).

Material Changes vs. Prior Period

  • Revenue Growth: Consolidated revenues increased 15.1% year-over-year, driven by higher agricultural sales volumes and improved pricing in Argentina, partially offset by lower sugarcane volumes in Brazil.
  • Operating Profit Surge: Profit from operations jumped 1,936.9% to ARS 211.6 billion. This is primarily due to a reversal in the "Net gain/(loss) from fair value adjustment of investment properties," which swung from a loss of ARS 182.3 billion in 2025 to a gain of ARS 31.2 billion in 2026, driven by favorable exchange rate movements and discount rate adjustments.
  • Segment Performance:
    • Urban Properties (IRSA): Recorded a segment profit of ARS 259.2 billion (vs. ARS 14.3 billion in 2025), heavily influenced by fair value gains on shopping malls.
    • Agricultural Production: Reported a loss of ARS 21.2 billion (vs. profit of ARS 14.0 billion in 2025) due to lower fair value gains on biological assets and higher input costs, despite strong production volumes.
    • Land Sales: Gains from disposal of farmlands dropped 97.7% to ARS 782 million (vs. ARS 34.2 billion in 2025) as fewer high-value land sales were executed.
  • Financial Results: Net financial results decreased 21.5% to ARS 90.5 billion, though still positive due to significant gains on net monetary position (IAS 29) and foreign exchange.

Guidance, Outlook, and Risks

  • Outlook: Management expects a strong finish to the 2026 agricultural campaign in Argentina with solid yields for soybeans and corn. Livestock prices are expected to remain firm. The urban real estate segment anticipates a strong year-end for shopping malls and offices.
  • Strategic Actions: The company continues to rotate its agricultural portfolio, selling appreciated land to reinvest. IRSA is advancing strategic projects including Distrito Diagonal and Ramblas del Plata.
  • Capital Markets Activity:
    • Issued Series LII and LIII Notes (USD 64.2M) in April 2026 (subsequent event).
    • Issued Series L Additional and Series LI Notes (USD 87.6M) in January 2026.
    • Warrants were exercised in Q1 2026, increasing share capital.
  • Risks & Contingencies:
    • Hyperinflation: Operations are subject to IAS 29 restatement, creating volatility in reported figures.
    • Legal: Ongoing litigation with IDBD (claiming NIS 140 million) remains in the evidentiary stage; a provision has been recorded.
    • Weather: Adverse weather in Brazil (fires, frosts) impacted sugarcane production and margins.

Investor Verification Checklist

  • Restatement Impact: Verify the impact of the retroactive restatement regarding the inflation adjustment of share premium from warrant exercises (Note 1), which corrected prior period errors.
  • Fair Value Volatility: Scrutinize the "Net gain from fair value adjustment of investment properties" (ARS 31.2B), as this non-cash item significantly drives current profitability and is sensitive to exchange rates and discount rates.
  • Cash Flow vs. Net Income: Note the divergence between Net Income (ARS 231.3B) and Net Cash from Operating Activities (ARS 45.6B), largely due to non-cash fair value adjustments and changes in working capital.
  • Debt Maturity Profile: Review the maturity schedule of the significant USD-denominated debt (Series XLVIII, XLIX, L, LI, etc.) to assess refinancing risks in the current interest rate environment.
  • Segment Mix: Confirm the sustainability of the Urban Properties segment's performance, which currently dominates consolidated profits due to valuation changes rather than operational cash flow.