Financial Data and Key Metrics Changes - The company reported a net income of ARS -72.3 billion, with a significant accounting effect due to the valuation of investment properties at fair value, resulting in a negative impact when expressed in pesos [22][23] - The net debt has decreased from $421 million in fiscal year 2021 to $310 million currently, indicating improved financial health [24] Business Line Data and Key Metrics Changes - The agricultural segment is experiencing a 9% increase in planted area, with a total of 303,000 hectares expected to be planted across Argentina, Brazil, Bolivia, and Paraguay [9] - The real estate segment saw significant transactions, including the sale of undeveloped land in Argentina for $2.2 million and a developed area in Brazil for BRL190 million, showcasing strong gains from previous investments [13][14] Market Data and Key Metrics Changes - The company received dividends totaling approximately $53 million, with Brasilagro contributing around $10 million and IRSA providing $43 million, reflecting a healthy return on investments [8] - The occupancy rates for IRSA's shopping malls and offices remain high at 97% and 98% respectively, indicating strong demand in the real estate market [18] Company Strategy and Development Direction - The company is optimistic about the agricultural sector due to favorable government policies aimed at deregulation and support for farmers, which may enhance operational efficiency and profitability [30][32] - The service company FyO has become the largest broker in Argentina for agricultural inputs and services, expanding its operations into Brazil, indicating a strategic focus on growth in commercial services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the upcoming year, citing improved weather conditions and higher production expectations in beef cattle, which are expected to drive operational performance [40] - The management highlighted the potential benefits from government measures aimed at reducing export taxes and increasing liquidity in the agricultural sector, which could lead to better financial outcomes for the company [32][33] Other Important Information - The company announced a new share buyback program for ARS6.5 billion, with a maximum purchase price of $12 per ADR, indicating a commitment to returning value to shareholders [26] - The company has maintained a dividend yield of 7%, reflecting a consistent approach to shareholder returns over the past three years [25] Q&A Session Summary Question: Opportunities from deregulation in the agricultural sector - Management discussed the potential benefits of government support for the agricultural sector, including reduced export taxes and increased liquidity in land markets, which could enhance profitability for farmers and the company [30][32] Question: Optimal allocation between buybacks and dividends - Management indicated a preference for cash payments in the form of dividends over buybacks, while also acknowledging the limitations imposed by regulatory restrictions on share repurchases [34][35] Question: Impact of drought in northern Brazil - Management noted that the drought has caused delays in planting but does not expect significant material impacts on overall results, with positive expectations for the agricultural operations in Brazil [38]
Cresud(CRESY) - 2025 Q1 - Earnings Call Transcript