Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRES) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 was challenging due to a 25–40% drop in commodity prices and adverse weather, with droughts impacting yields in Argentina, Brazil, and Paraguay, though southern Argentina saw some improvement.

• Net income for FY24 was ARS 104,729 million, with ARS 84,576 million attributable to controlling shareholders, down from ARS 279,709 million in 2023 due to lower fair value gains.

• Farmland sales totaled USD 75 million in Argentina and Brazil, generating a profit of approximately USD 48 million and high internal rates of return.

• Dividend distributions were significant, with yields of 8.3% and 4.5%, and 1% of capital stock distributed as treasury shares.

• Adjusted EBITDA rose 23.5% year-over-year to ARS 256,396 million, with strong contributions from agriculture and urban properties.

Financial highlights

• Net income for the year was ARS 104 billion, down from ARS 279 billion the previous year.

• Operating income (excluding fair value changes) improved by 126–127% year-over-year to ARS 226,187 million.

• Farmland sales profit reached USD 75 million, with IRRs between 7.8% and 16%.

• Gross margin in the cattle segment in Argentina reached a record $8.3 million, up 159% year-over-year.

• Adjusted EBITDA from IRSA’s rental segment grew 8.8% year-over-year.

Outlook and guidance

• The 2025 campaign outlook is positive, with expected average yields, increased planted area, and continued asset rotation.

• Management remains optimistic about acquisition opportunities, especially in Argentina and potentially Brazil.

• Anticipates continued dividend payments, with a new proposal to be announced.

• Company strategy focuses on operational excellence, cost optimization, and opportunistic land transactions.

• Improved competitiveness in Argentine farming due to FX devaluation and reduced FX gap.