This article first appeared on GuruFocus .
Release Date: February 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cresud SACIF y A ( NASDAQ:CRESY ) reported improved weather conditions and increased hectares in four countries, leading to better yields, particularly in wheat.
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The company achieved a 10% higher yield in wheat than expected, thanks to good use of fertilizers in Argentina.
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Cattle activity showed strong performance with sustained prices and increased investments in feedlots, resulting in very good results.
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Cresud SACIF y A ( NASDAQ:CRESY ) successfully issued local capital market bonds totaling $117 million to manage debt maturity.
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The company paid a significant dividend of approximately $64 million, with 70% in cash and 30% in shares, demonstrating strong shareholder returns.
Negative Points
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Lower margins were reported due to a drop in prices and higher input costs compared to previous years.
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Brazilagro experienced lower production results, particularly in sugarcane, affecting the first half of the year.
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The planted area decreased by 6,000 hectares due to strict planting windows and lower margins in some farms.
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Commodity prices, particularly soybean and corn, remain low in real terms, impacting profitability.
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The company has not closed any real estate transactions in the first half of the year, affecting potential revenue streams.
Q & A Highlights
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Warning! GuruFocus has detected 14 Warning Signs with CRESY.
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Q: What is your view on the depressed share price of Brazilagro, and would you consider increasing your shareholding? A: (Unidentified_2) Brazil is in a special moment politically, with upcoming presidential elections. The capital market seems optimistic, as reflected in the currency exchange rate. Brazilagro's share price is seen as undervalued, considering the company's land holdings and lease arrangements. Cresud currently owns 35% and is optimistic about Brazil's situation, considering increasing its stake.
Q: Are you going to exercise your IRSA warrants or exchange them in the newly introduced cashless option? Are sufficient funds available to fully exercise the warrants? A: (Unidentified_3) Cresud will exercise the warrants on a cashless basis. IRSA has significant liquidity, with over $300 million in cash after a bond issuance. This will allow Cresud to increase its stake in IRSA back to 55%.
Q: Are there any provisions or conditions in the trade agreement with the US or the PTA with the European Union that have direct implications for your products? A: (Unidentified_2) The main impact is on beef, with both the US and European agreements benefiting Argentine farmers. The US agreement is less strict on health conditions, while the European agreement involves the Hilton quota. Both are expected to improve trade volumes significantly.
Q: What is the chance of the Mercosur agreement with Europe being ratified, and when could that happen? A: (Unidentified_2) The ratification of the Mercosur agreement with Europe is a political issue, mainly involving French and other European farmers. While some parts have been approved, the final process is pending. The US agreement is closer to being finalized.
Q: If commodity prices stay low, what steps will you take to lower operating costs to remain profitable? A: (Unidentified_2) In Argentina, farmers have learned to survive with limited resources due to export taxes and currency issues. Strategies include rotating crops less, improving water efficiency, and using lower inputs. New technologies, such as variable input usage, are being adopted to reduce costs and maintain profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
