(Photo: Alejandro Elsztain, CEO of Cresud)
Buenos Aires, March 6th. Cresud is one of the largest farm companies in Argentina and Mercosur. Its numbers show that they own 734K hectares, of which 289K are in operation and 445K are land reserves distributed among the four countries. The 42% of the operation lands are destinated to agricultural production, while the remaining 58% is allocated to beef and dairy cattle. Argentina has the largest lands, accounting 73% of the total. Furthermore, the company leases 138K hectares, mainly to crop production.
Led by agronomist Alejandro Elsztain, this March 6th, Cresud presented its financial results from the first half of the 2019 period, which shows that farming revenues increased 11%, passing from AR$2,7 billion in 2018 to AR$3,0 billion this year, while the Adjusted EBITDA grew 60% from AR$342 million to AR$643 million.
Segment by segment, crop production was the main supporter of positive results. While revenues increased 16% to AR$1.6 billion, Segment Profit jumped 2,500% to AR$317 million. The sugarcane segment also increased by 16% to AR$1,1 billion but positive profit dropped 13% to AR$315 million. But livestock business took the worse part because revenues dropped 36% to AR$256 million, and negative results increased 9% to AR$-174 million.
A relevant datum is that leased farms increase from 66K hectares in the precedent FY to 138K hectares in the current FY. According to the historical data shared by the company is the largest leased area since 2015.
The financial statement by Cresud sustains an optimistic vision for the remaining of the fiscal year. “Given the new agricultural scenario, with more competitive exchange rates in Argentina and Brazil, Cresud plans to plant more than 258,000 hectares in the region and to produce more than 800,000 tons, a historical record. Likewise, the Company is strongly complementing its activity in its own farms with farms leased to third parties in Argentina, Brazil, and Bolivia”, the company says.
Until now, the crop production record was achieved in FY 2018, with 652K tons, when Cresud surpassed the 627K tons achieved in FY 2015.