Argentine Agribusiness Leader Cresud (NASDAQ: CRESY) Delivers Mixed Financial Performance in Q3 FY2021

Argentina-based agricultural conglomerate Cresud S.A.C.I.F. y A. released its operational and financial update for the nine-month period ending March 31, 2021, showcasing significant operational gains despite reporting consolidated losses. The company’s portfolio spans agribusiness operations and urban real estate investments through its IRSA subsidiary.

Financial Performance Overview

The period delivered contrasting results across business segments. Net losses reached ARS 9.23 billion for the nine-month timeframe, compared to a prior-year gain of ARS 10.59 billion. The variance was primarily attributable to fair value adjustments in IRSA’s investment properties. However, operational profitability metrics painted a stronger picture: Adjusted EBITDA surged to ARS 20.7 billion, representing 40.5% growth year-over-year. The agribusiness division contributed ARS 9.22 billion in adjusted EBITDA (up 15.4%), while the urban properties and investments segment delivered ARS 11.48 billion (up 70.1%).

Agricultural Operations Momentum

Cresud’s 2021 crop campaign demonstrates the company’s production capabilities. Operating across favorable commodity pricing environments, the organization cultivated 259,000 hectares, projecting a record grain output of 850,000 tons. Agricultural segment revenues totaled ARS 17.1 billion against ARS 19.6 billion in the prior period, though gross margin improved to ARS 11.4 billion from ARS 7.69 billion—reflecting better operational efficiency and cost management.

Strategic Capital Deployments

The quarter witnessed multiple transactions strengthening the company’s portfolio. Cresud divested its Bolivian land holdings to subsidiary Brasilagro for USD 31 million, simultaneously subscribing to 6.9 million additional shares for BRL 440 million, elevating its stake to 34.1% (net of treasury shares). In February 2021, the company completed the sale of its meatpacking operation, Carnes Pampeanas S.A., for USD 10 million.

Financing activities included a 90 million share issuance generating USD 42.5 million in capital. Subsequently, IRSA executed its own equity raise of 80 million shares, raising USD 28.8 million for balance sheet optimization.

Urban Properties Segment

Real estate revenues declined to ARS 7.21 billion from ARS 13.9 billion year-over-year, with gross profit at ARS 4.88 billion versus ARS 10.85 billion previously. This contraction reflected valuation challenges in the investment properties portfolio, though management’s adjusted EBITDA improvements suggest underlying operational resilience.

Balance Sheet Evolution

Total assets compressed to ARS 300 billion from ARS 929.9 billion as of June 30, 2020, reflecting portfolio restructuring and fair value reductions. Total liabilities decreased proportionally to ARS 196.7 billion, while shareholders’ equity stood at ARS 103.3 billion. The company maintained disciplined capital structure management throughout the period.

Cresud’s NASDAQ: CRESY listing continues to provide international market access for this diversified Argentina-based enterprise navigating commodity cycles and real estate market dynamics across Latin America.