Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY): history, ownership, mission, how it works & makes money

A Brief History of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY)

Foundation and Early Years

Cresud was founded in 1936 in Buenos Aires, Argentina, primarily as an agricultural company. The firm has evolved considerably over the decades, diversifying its portfolio to include real estate and financial services.

Financial Performance

As of the fiscal year 2022, Cresud reported revenue of approximately ARS 69.8 billion. The net income for the same year was noted to be around ARS 20.7 billion.

Market Capitalization

The company’s market capitalization as of October 2023 was approximately USD 220 million. This reflects its performance within the Argentine stock market, where it is listed on the Bolsa de Comercio de Buenos Aires.

Asset Portfolio

Cresud has a diverse asset portfolio, which includes:

• 1. Agricultural Lands: Approximately 1.3 million hectares.
• 2. Real Estate Investments: Valued at around USD 70 million.
• 3. Financial Services: Engaged in agricultural financing with loans approximating ARS 15 billion.

International Presence

The company has also expanded its footprint beyond Argentina, with interests in Brazil and the United States, enhancing its global reach. The contribution of international operations to revenue is about 15%.

Recent Developments

In recent years, Cresud has invested heavily in sustainable agriculture, committing approximately USD 10 million to projects aimed at improving environmental practices in farming.

Table of Financial Highlights

Corporate Social Responsibility

Cresud is actively engaged in various corporate social responsibility (CSR) initiatives, which include education and community support programs valued at approximately USD 2 million annually.

Outlook and Future Prospects

The company aims to continue its growth trajectory, leveraging advancements in agricultural technology and sustainable practices to enhance productivity and profitability.

A Who Owns Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY)

Ownership Structure

The ownership structure of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) comprises both individual and institutional shareholders. The most significant shareholders include the following:

Market Performance

CRESY is listed on the Buenos Aires Stock Exchange, with a robust market presence. As of October 2023, the stock performance details are:

Recent Acquisitions and Investments

CRESY has been actively involved in expanding its agricultural and real estate holdings. Recent acquisitions include:

• Acquisition of 10,000 hectares in Santa Fe for ARS 650 million, completed in August 2023
• Investment of ARS 250 million in technology upgrades for agricultural production
• Partnership with local agribusiness firms for joint ventures in crop production

Financial Overview

CRESY has shown stable financial growth over recent years. The following table summarizes key financial metrics:

Future Outlook and Strategic Goals

Looking ahead, CRESY aims to increase its market share in the agricultural sector and enhance its real estate portfolio. Strategic goals include:

• Expanding agricultural land holdings by 15% by the end of 2024
• Investing ARS 500 million in sustainable farming practices
• Enhancing operational efficiency through digital transformation initiatives

Conclusion on Ownership and Strategic Developments

Current ownership dynamics and financial performance indicate a robust position in the agricultural and real estate sectors. CRESY continues to pursue growth through strategic investments and expansions.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Mission Statement

Corporate Overview

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, listed under the symbol CRESY on the NASDAQ, is an agribusiness company located in Argentina. Its operations span different sectors, including agricultural activities, real estate, and financial services. The company primarily focuses on developing agribusiness projects in Argentina, Brazil, and Bolivia.

Mission Statement

The mission of Cresud is to enhance value through sustainable agricultural practices while maximizing profitability for shareholders. The company emphasizes innovation, growth, and social responsibility in all its endeavors.

Core Values

• Integrity: Maintaining transparency and ethical practices.
• Sustainability: Commitment to environmental stewardship.
• Excellence: Pursuing highest operational and service standards.
• Innovation: Continuously improving and adopting new technologies.

Financial Overview

As of September 30, 2023, Cresud reported the following financial metrics:

Market Position

Cresud operates in key agricultural commodities such as soybeans, wheat, and corn. As of 2023, the company holds approximately 100,000 hectares of farmland. The company's operations contribute to a significant portion of Argentina's agricultural output.

Strategic Objectives

• Expand land portfolio with a target of increasing acreage by 10% annually.
• Enhance production efficiency by investing in technology and modern farming techniques.
• Strengthen financial position through sustainable practices and cost management.

Sustainability Initiatives

Cresud is committed to sustainable agricultural practices, implementing strategies that include:

• Use of precision agriculture technology.
• Reducing water consumption by 20% by 2025.
• Minimizing chemical inputs through organic farming methods.

Recent Developments

In 2023, the company announced plans to invest 50 million USD in renewable energy projects to decrease its carbon footprint and switch to biomass energy sources for operations.

Conclusion

The mission statement of Cresud reflects its commitment to enhancing value through sustainable practices in the agribusiness sector while ensuring profitability for its stakeholders.

How Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Works

Business Segments

Cresud operates through various segments, primarily focusing on agricultural production, real estate, and financial services. The key segments include:

• Agricultural Production
• Real Estate Development
• Financial Services

Agricultural Production

Cresud’s agricultural production segment is dedicated to the cultivation and commercialization of various crops. As of 2022, the company managed approximately 313,000 hectares across Argentina, Brazil, and Bolivia.

The significant crops include:

• Soybean
• Corn
• Wheat
• Sugarcane

Financial Performance

For the fiscal year 2022, Cresud reported total revenues of ARS 35.4 billion, with a net income of ARS 5.2 billion. The breakdown of revenue sources is as follows:

Real Estate Operations

Cresud’s real estate segment focuses on the acquisition, development, and management of properties. The company has a portfolio that includes:

• Residential properties
• Commercial spaces
• Agricultural land

As of the end of 2022, the real estate segment accounted for approximately 19% of Cresud's total assets, valued at ARS 11.3 billion.

Market Position

Cresud is a significant player in the agricultural sector in Latin America, positioning itself as one of the largest landholders and producers in the region. According to reports, as of 2023, Cresud held approximately 1.6 million hectares of agricultural land across South America.

Recent Developments

In 2023, Cresud announced plans to increase its agricultural production by 15% over the next five years, focusing on sustainable practices and technology integration into their farming operations. The investment allocated for this growth is estimated at ARS 2.5 billion.

Financial Metrics

Cresud’s financial metrics as of the end of 2022 are as follows:

• EBITDA: ARS 8.7 billion
• Total Assets: ARS 58.4 billion
• Total Liabilities: ARS 35.1 billion
• Equity: ARS 23.3 billion

The company’s debt-to-equity ratio stands at 1.5 indicating a balanced approach to leveraging and investment.

Conclusion on Growth Strategy

Cresud’s growth strategy emphasizes diversification across its segments, with a commitment to sustainable agriculture and real estate development. The company is strategically positioned to benefit from the increasing demand in both the agricultural and real estate markets in Latin America.

How Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Makes Money

Agricultural Production

Cresud operates mainly in the agricultural sector, focusing on the cultivation of soybeans, corn, and wheat. In the fiscal year 2022, Cresud reported an agricultural production revenue of approximately USD 114 million.

Property Development and Real Estate

The company also earns revenue from its real estate developments. As of the end of 2022, Cresud owned approximately 12,000 hectares of real estate in prime urban locations in Argentina and Brazil. The value of its real estate portfolio was estimated to be around USD 150 million.

Livestock Farming

Cresud engages in livestock farming, with revenues derived from cattle farming operations. In 2022, livestock farming contributed about USD 30 million to the overall revenue, driven by increased beef prices in the market.

Financial Services

The company's financial services segment, which includes leasing and financing options, generated revenue of approximately USD 25 million in 2022. Cresud’s financial services are primarily aimed at supporting its agricultural activities.

Table of Revenue Sources (2022)

Export Activities

Cresud engages in the export of grains and livestock products. In 2022, exports constituted around USD 60 million of its revenue, benefiting from Argentina’s strong export market for agricultural products.

Technological Investments

The company invests in technology to optimize its agricultural yield, which enhances profitability. In 2022, Cresud allocated approximately USD 5 million towards agricultural technology and innovation.

Debt Management and Financing Costs

Cresud manages its debt carefully, with total outstanding debt reported at approximately USD 400 million as of 2022. Interest expenses for the year were around USD 30 million.

Market Position and Competitiveness

Cresud's competitive advantage lies in its diversified portfolio. The company is among the top ten agricultural producers in Argentina, which helps stabilize its revenue streams across different agricultural cycles.