Workflow
Cresud(CRESY) - 2022 Q2 - Earnings Call Transcript
CresudCresud(US:CRESY)2022-02-14 19:35

Financial Data and Key Metrics Changes - The company reported a significant gain of ARS 38 billion for the semester, compared to a loss of ARS 4.9 billion in the previous year [40] - Adjusted EBITDA for the agribusiness segment reached ARS 12.1 billion, up from ARS 2.4 billion last year, indicating a strong improvement across all lines [43] - The net financial results generated a gain of ARS 8.3 billion, compared to a loss of ARS 1.4 billion in the previous year [49] Business Line Data and Key Metrics Changes - The agribusiness segment achieved record numbers in EBITDA, driven by improved margins from grains, sugarcane, and farm sales [6][43] - The company sold two farms in Brazil, generating significant gains, reflecting the evolution of farm prices in the region [43][21] - FyO, the agricultural service company, became the largest broker in Argentina, closing the last campaign at 6.4 million tons and forecasting 7 million tons for the next campaign [22][24] Market Data and Key Metrics Changes - Real sales in shopping malls increased by 7.6% compared to pre-pandemic levels, marking the first real sales increase in three years [35] - The office segment experienced mixed results, with a decrease in occupancy due to the pandemic and a shift to higher-quality buildings [37] - The hotel segment continued to be affected by pandemic-related restrictions, particularly in Buenos Aires [39] Company Strategy and Development Direction - The company is focused on expanding its agribusiness operations across four countries, with plans to increase sugarcane plantations in Bolivia [13] - The approval of the Costa Urbana project is expected to drive growth for the next decade, allowing for the development of 900,000 square meters of various uses [32] - The merger between IRSA and IRSA Commercial Properties is anticipated to enhance operational efficiency and market presence [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the agricultural environment, expecting good margins and increased activity in both Argentina and Brazil [55] - The company is preparing for a positive campaign, with expectations of good yields and margins from upcoming harvests [54] - Management highlighted the importance of the Costa Urbana project and the gradual development process expected over the next ten years [61] Other Important Information - The company reduced its debt to $400 million and is working on extending the tenure of part of its debt [50] - The company issued its first bond for FyO, raising $12.3 million at a 0% interest rate, indicating strong market confidence [26] Q&A Session Summary Question: Will the company continue selling farms in Argentina, Brazil, or the rest of the region? - Management indicated that there is increasing interest in farm purchases in Argentina and confirmed strong liquidity in Brazil, expecting active real estate movement in the second semester [52][53] Question: How is the company affected by Central Bank capital restrictions on issued bonds? - Management clarified that there are no complications for bond payments due in 2023, as they do not need to refinance any debt this year [56][57] Question: What is the timing for the Costa Urbana development project? - Management noted that the project is significant and will take more than 10 years to fully develop, with no major capital expenditures expected in the next two years [60][61]