CRESUD (NASDAQ: CRESY) Reports Strong FY 2025 Recovery with 37% Earnings Growth Amid Latin American Market Opportunities

2025-12-31 11:05:24

Latin American agricultural powerhouse CRESUD S.A.C.I.F. y A. (NASDAQ: CRESY, ByMA: CRES) has unveiled its fiscal year 2025 financial results, signaling a dramatic turnaround in profitability as government policy reforms reshape the regional landscape.

Earnings Surge Reflects Operational Turnaround

The company’s net income climbed to ARS 224,366 million for the fiscal year ending June 30, 2025, representing a significant leap from ARS 163,826 million in the prior year. More striking was the transformation in operational performance: consolidated operating income swung from a loss of ARS 172,748 million in 2024 to a profit of ARS 220,945 million, marking a comprehensive reversal of fortunes.

This recovery was driven partly by livestock operations, which saw substantially improved margins as cattle prices remained firm while feed costs declined. The agribusiness segment itself generated operating income of ARS 49,166 million during the period.

Agricultural Campaign Navigates Headwinds

The 2025 planting season presented a mixed picture across CRESUD’s Latin American footprint. The company cultivated approximately 300,000 hectares across Argentina and operations managed by subsidiary BrasilAgro in Brazil, yielding 830,000 units of crop production despite challenging conditions including irregular weather patterns and commodity prices that remained historically subdued.

Input expenses continued to pressure margins, remaining elevated relative to prevailing market prices—a persistent challenge throughout the growing season.

Strategic Property Sales Generate Significant Cash Flow

Real estate operations delivered outsized returns during the fiscal year. The company disposed of a 3,630-hectare parcel in Los Pozos, Argentina, while BrasilAgro completed the sale of its entire Preferencia farm spanning 17,799 hectares in Brazil. These transactions, coupled with the finalization of previously initiated sales at Alto Taquari (1,157 hectares) and Rio do Meio (852 hectares), generated what management characterized as exceptionally strong results.

Regional Policy Environment Brightens Outlook

A critical tailwind emerged in the latter part of the fiscal year when the Argentine government advanced its foreign exchange liberalization agenda and subsequently reduced export taxes on major grains and beef commodities. These structural policy improvements are expected to enhance sector profitability trajectories in the upcoming campaign.

Financial Position Strengthens

The balance sheet reflects the operational recovery. Total assets expanded to ARS 5,088,822 million from ARS 4,842,217 million year-over-year, while shareholders’ equity increased to ARS 2,213,792 million. Urban property revenues contributed ARS 374,662 million with gross profit of ARS 287,056 million, demonstrating the diversified revenue base supporting the company’s resilience.

CRESUD remains positioned as a prominent regional agricultural operator navigating a transforming policy landscape with renewed earnings momentum.

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