Cresud S.A.C.I.F. y A. First Quarter Results Overview
Cresud S.A.C.I.F. y A. (NASDAQ: CRESY), a prominent Argentine agricultural firm, has announced its impressive financial results for the first quarter of Fiscal Year 2026, concluding on September 30, 2025. The company's performance reflected robust growth and resilience in a challenging economic landscape.
Financial Highlights
Net Income Growth
In the first quarter of fiscal 2026, Cresud reported a net income of ARS 110,133 million, a significant turnaround from a loss of ARS 77,887 million during the same period last year. The drastic improvement stems largely from gains in the fair value of IRSA investment properties, signaling strong investment management and strategic positioning in the market.
Adjusted EBITDA Performance
The company also reported an adjusted EBITDA of ARS 58,764 million for the quarter, which is 39.7% lower in comparison to the previous year's quarter. The agribusiness segment contributed ARS 5,648 million in adjusted EBITDA, while the urban properties sector, through IRSA, yielded ARS 57,589 million, reinforcing their vital role in the company's financial structure.
Agricultural Campaign Insights
Looking ahead, the 2026 regional agricultural campaign is off to a promising start. With favorable weather conditions and a slight uptrend in international commodity prices, Cresud anticipates planting around 321,000 hectares in the upcoming season, marking a 7.4% increase over last year's campaign.
Market Influences
An essential factor contributing to the company's positive outlook has been the Argentine government’s temporary cessation of export taxes on significant crops and beef, enhancing pricing power and margins for their products.
Livestock Business Growth
The livestock division is experiencing favorable conditions, with strong cattle prices driven by robust global demand combined with a solid local market. This has led to enhanced profitability within the livestock segment.
Dividend Distribution Approved
Cresud's recent shareholder meeting resulted in the approval of a dividend distribution totaling ARS 93,782 million. This package consists of ARS 65,080 million in cash and ARS 28,702 million in shares from IRSA, providing an approximate dividend yield of 8%, showcasing the company’s commitment to returning value to shareholders.
Financial Statements Summary
Highlights from Income Statement
The income statement for the fiscal quarter shows a revenue of ARS 190,163 million from the agricultural business, alongside a gross profit of ARS 35,029 million. Urban property revenues reached ARS 103,202 million with a corresponding gross profit of ARS 79,966 million.
Balance Sheet Analysis
As of September 30, 2025, Cresud reported total assets amounting to ARS 5,839,158 million, marking a steady increase from the previous period. Current assets stood at ARS 1,420,170 million, while total liabilities were reported at ARS 3,313,708 million, indicating a healthy balance sheet poised for growth.
Market Capitalization
At the end of the first quarter, Cresud's market capitalization reached approximately USD 581.3 million, with 63,184,415 ADS trading at USD 9.20 each, asserting the company’s stable position in the market.
Upcoming Conference Call
The management team invites stakeholders to join the upcoming conference call scheduled for November 12, 2025, to discuss these results in greater detail. This forum is an opportunity for shareholders and analysts to engage directly with the team and ask questions regarding the company's strategies moving forward.
Frequently Asked Questions
What were Cresud's net income figures for Q1 FY 2026?
Cresud reported a net income of ARS 110,133 million, compared to a loss of ARS 77,887 million in the prior year.
How did the agricultural business perform?
The agricultural business generated revenues of ARS 190,163 million with a gross profit of ARS 35,029 million.
What impact did tax changes have on Cresud's operations?
The temporary elimination of export taxes on key crops and beef significantly boosted prices and margins for Cresud's products.
How much was approved for distribution in dividends?
The shareholder meeting approved a total dividend of ARS 93,782 million, including cash and shares.
When is the next conference call scheduled?
The conference call regarding the first quarter results will take place on November 12, 2025.
