(Photo: Eduardo Elsztain (center) is the chairman of Cresud)
Buenos Aires, May 14th. Despite a good performance in the agribusiness unit, Cresud, one of the biggest farm and real-estate company in Argentina, announced AR$9.8 billion loss in the 9-months period of the fiscal year 2019.
The press release of the company remarks the following highlights.
- Net result for the 9-month period of fiscal year 2019 recorded a loss of ARS 9,794 million compared to a gain of ARS 10,468 million in the same period of FY 2018, mainly explained by higher financial losses due to Argentine peso depreciation and lower results from changes in the fair value of IRSA investment properties in Argentina Business Center.
- Adjusted EBITDA for the 9-month period of fiscal year 2019 grew 25.9% compared to the same period of 2018, reaching ARS 15,775 million, of which ARS 2,468 million came from the agricultural business that recorded higher crop production results and farmland sales and ARS 13,307 million came from the urban property and investment segment (IRSA), whose rental segment in Argentina increased by 7.1% in the period.
- Very good weather conditions in the region are expected for 2019 campaign. We planted 247,900 ha and expect to develop approximately 8,500 ha in the region.
- In March 2019, we launched a new share repurchase plan for up to ARS 300 million. As of today, the company has repurchased 14.5% of the program.
- Cresud is a leading Argentinean agricultural company with a growing presence in Latin American countries. Cresud’s business model focuses on the acquisition, development and exploitation of properties having attractive prospects for agricultural production and/or value appreciation and the selective disposition of such properties where appreciation has been realized. The company is also involved in farming activity, through crops and cattle production in the region. Additionally, Cresud owns a 62.00% stake in IRSA Inversiones y Representaciones S.A., Argentina’s largest, most well-diversified real estate company. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. Also owns 3 premium hotels in Argentina, a huge landbank for future developments, 29,91% of Banco Hipotecario and some international investments, including 100.0% indirect stake in IDB Development Corporation and 82.31% indirect stake in Discount Investment Corporation Ltd., leading conglomerates in Israel.
A good agricultural performance
In this fiscal year, Cresud is reaching a record planted area, 248,000 hectares, 51% of which planted with soybean and 28% with corn. This acreage represents a 19% increase year to year. In Argentina, Cresud passes to plant 112K to 131K hectares, or 17% increase, while in Brazil they passed from 66K to 94K hectares or 42% more.
It is expected that grain production reaches 820K tons this campaign, marking a 52% recuperation from last year, when drought cut the Argentine harvest.
To the IIIQ 2019 fiscal year, agribusiness unit revenues reached AR$7,5 billion (13% up), with AR$1.2 billion operating income (16% down).