Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRES) Q1 2026 earnings summary

Executive summary

• Launched the largest agricultural campaign in company history, with favorable weather and a 7.4% increase in planted area, especially in Argentina and Brazil, and strong livestock margins with intensified feedlot operations.

• Commodity prices saw slight increases, supported by reduced export taxes and temporary 0% rates in Argentina, with wheat planting at 100% in Argentina and soybean planting at 35.5% in Brazil.

• Net income for Q1 FY2026 was ARS 110,133 million, reversing a loss in Q1 FY2025, mainly due to gains from fair value changes in IRSA investment properties.

• No farmland sales occurred in the first quarter, but sales are expected in upcoming quarters.

• Significant dividends received from subsidiaries and distributed to shareholders, with an 8.4% yield.

Financial highlights

• Net gain of ARS 110,133 million attributable to controlling interest, compared to a loss last year, with gross profit up 31.3% year-over-year to ARS 114,175 million.

• IRSA contributed net gains of ARS 163,438 million, mainly from fair value increases in investment properties.

• Adjusted EBITDA fell 39.7% year-over-year to ARS 58,764 million; operating income (excluding fair value changes) decreased 27% to ARS 47,720 million.

• Debt reduced from $349 million to $329 million year-over-year, and net debt decreased by 21.9%.

• Dividend payments totaled ARS 93,782 million (~USD 64 million), split 70% cash and 30% in-kind (IRSA shares), yielding 8.4%.

Outlook and guidance

• Expecting farmland sales in the next three quarters, with improved liquidity and rising land prices in Argentina.

• Favorable weather and expanded planted area expected to support strong crop yields, with weak La Niña conditions anticipated.

• Ongoing government measures, including reduced export taxes and FX unification, are expected to benefit agribusiness.

• Continued expansion in both leasing and purchasing of agricultural land, with a focus on irrigation projects and operational efficiency.

• Optimistic on business outlook due to improved margins in Argentina and resilience in Brazil.