Cresud(CRESY) - 2019 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a loss of ARS 9.8 billion for the nine-month period, with ARS 6.8 billion attributable to shareholders, primarily due to losses from investment properties and their fair value [4] - Adjusted EBITDA for the period was ARS 15.8 billion, representing a 25.9% increase compared to the previous year [4][20] - Gross profit increased from ARS 18.6 billion to ARS 21.6 billion, indicating a positive trend in operating income [20] Business Line Data and Key Metrics Changes - In agriculture, the planted area increased by 19% year-over-year, reaching a record 248,000 hectares [5] - The adjusted EBITDA from farming was ARS 1.33 billion, a 60% increase compared to last year [23] - The urban segment saw a 14% decrease in shopping mall revenues due to lower consumer purchasing power, while office revenues increased by 88% [27] Market Data and Key Metrics Changes - Commodity prices, particularly soybean, saw a 12% drop due to the US-China trade war and swine fever in China, which decreased demand by approximately 10 million tons [9][10] - The regional harvest progress was reported at 64.7% for soybean and 12.3% for corn, with an expected production increase of 52.6% year-over-year [11] Company Strategy and Development Direction - The company initiated a share buyback plan of up to ARS 300 million, having already purchased 14.5% of the program [5] - The company is focusing on increasing agricultural production and improving yields, with expectations of a record campaign in the upcoming quarter [33] Management's Comments on Operating Environment and Future Outlook - Management noted that weather conditions in Argentina have improved, recovering from previous droughts, which bodes well for agricultural output [8] - The company anticipates closing the fiscal year with strong agricultural production and good deals in the region [33] Other Important Information - The company is facing challenges related to the Concentration Law in Israel, which requires a review of public companies controlled by it [18] - The market reacted positively to the sale of shares in Clal, with a 20% increase in share price following the transaction [17] Q&A Session Summary - No questions were raised during the Q&A session, leading to the conclusion of the conference call [32]