CRESUD INC

CRESUD INC Annual Review - Cleaned for Investors

Hey there! Let’s break down CRESUD’s year in plain terms—no fluff, just what matters for your investment decisions.

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1. What does CRESUD do, and how was their year?

CRESUD operates farms and develops real estate in Argentina and Brazil. They grow soybeans, corn, and raise cattle, while also building urban properties. This year was challenging but stable:

• Argentina’s economic chaos (100%+ inflation, peso crashes) hurt profits.
• They leaned on farm sales and safer currencies (USD, euros) to stay afloat.
• Real estate slowed, but core farming stayed steady.

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2. Financial Performance: Growth or Decline?

• Revenue ↑ 8%: Sold farmland and benefited from higher crop prices.
• Profits ↓ 15%: Inflation spiked costs (fertilizer, fuel) + peso devaluation.
• Verdict: Surviving, not thriving. Farming is their anchor; real estate dragged.

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3. Wins vs. Challenges

Wins ✅

• Sold urban properties for quick cash.
• Expanded farmland in Brazil (safer economy).
• Reduced debt by 20% and held cash in stable currencies (USD, euros, shekels).

Challenges ❌

• Argentina’s inflation tripled operating costs.
• Real estate projects stalled (few buyers in shaky economy).
• Currency swings risked 15% of foreign-held assets.

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4. Financial Health Check

• Debt: Down 20%—cleaner balance sheet.
• Cash Flow: Barely positive (enough to operate, not expand).
• Safety Net: 40% of cash in USD/euros to hedge peso risk.
• Overall: Stable but cautious. No crisis, but no big bets either.

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5. Key Risks to Watch

• Argentina’s economy: Another peso crash = smaller profits.
• Commodity prices: Soy/beef drops = trouble. Droughts are a wildcard.
• Currency swings: Their multi-currency strategy could backfire.
• Politics: New taxes or land laws could hurt margins.

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6. How They Compare to Competitors

• Better at: Farming efficiency (more soy per acre than rivals).
• Worse at: Real estate sales (slower than Brazilian competitors).
• Unique Edge: Massive land ownership + currency flexibility.

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7. Leadership & Strategy Shifts

• New Finance Head: Hired to tackle debt and inflation.
• Pivot to Brazil: Focusing on farming there vs. Argentine real estate.
• Cost-Cutting Partners: Working with Uranga Trading to reduce agri-expenses.

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8. What’s Next?

• Short Term: More land sales to boost cash reserves.
• Long Term: Betting on Brazil’s farming growth + hoping Argentina stabilizes.

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9. Market Trends Impacting CRESUD

• Opportunity: Global demand for soy/beef is rising.
• Threats: South American droughts, Argentina’s export taxes.

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Investor Takeaways

Consider CRESUD if:

• You’re patient and believe in long-term farmland value.
• You can handle currency risks and political uncertainty.
• You want exposure to South America’s agribusiness without relying solely on Argentina.

Avoid if:

• You need steady short-term returns or dislike volatility.
• You’re skeptical about Argentina’s economic recovery.

Bottom Line: CRESUD juggles risks well, but it’s a bumpy ride. Their Brazil expansion and debt reduction are bright spots, but inflation and peso swings remain threats. High risk, moderate reward—best for resilient portfolios.**

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Questions? Drop me a note! ☕️