Cresud SACIF y A (CRESW) Bundle
A Brief History of Cresud SACIF y A
Cresud SACIF y A, established in 1936, is a leading agricultural company in Argentina that specializes in the production of crops, cattle ranching, and land development. The company operates a diverse portfolio of agricultural fields across Argentina, Brazil, and Bolivia. In 2022, Cresud reported a total revenue of approximately $160 million, showcasing a robust growth trajectory.
In 2021, Cresud's net income reached $10.3 million, which was a significant increase compared to the $7.5 million reported in 2020. The company has focused on expanding its operations while improving its yields through advanced agricultural practices.
| Year | Total Revenue | Net Income | Gross Margin | EBITDA |
|---|---|---|---|---|
| 2019 | $125 million | $5.1 million | 27% | $25.8 million |
| 2020 | $138 million | $7.5 million | 30% | $29.5 million |
| 2021 | $150 million | $10.3 million | 32% | $35.2 million |
| 2022 | $160 million | N/A | N/A | N/A |
The company's land holdings have expanded significantly over the years. As of 2022, Cresud owned approximately 300,000 hectares of land primarily used for crop cultivation and livestock. Additionally, Cresud's operations have been supported by agricultural technology advancements, contributing to a strong emphasis on sustainable practices.
In recent years, Cresud has invested in various projects to enhance its production capabilities. In 2021, the company allocated about $15 million to modernizing equipment and facilities, aiming to increase operational efficiency and yield productivity.
Despite fluctuations in commodity prices, Cresud has maintained a competitive edge in the agricultural sector. The company has been proactive in managing agricultural risks, with crop insurance solutions and hedging strategies in place to mitigate potential losses.
In terms of stock performance, Cresud is listed on the Buenos Aires Stock Exchange, with a market capitalization of approximately $700 million as of October 2023. The stock has shown resilience, with a year-to-date return of around 25% compared to industry peers.
Moreover, Cresud holds a position in other sectors through its stake in IRSA Propiedades Comerciales, which operates shopping malls and office buildings in Argentina. This strategic diversification has allowed Cresud to capitalize on various market segments, reducing its overall risk exposure.
Overall, Cresud SACIF y A continues to play a pivotal role in Argentina's agricultural landscape, blending traditional farming with innovative practices and technology to ensure sustainable growth and profitability.
A Who Owns Cresud SACIF y A
Cresud SACIF y A is a prominent agricultural company based in Argentina, primarily focused on the agricultural and industrial sectors. As of the latest data available, Cresud operates in various business segments including agricultural production, real estate, and livestock. The ownership structure is crucial for understanding the company's strategic direction and market approach.
As of October 2023, Cresud's largest shareholders include:
- Grupo Los Grobo – This agricultural conglomerate holds a significant stake in Cresud, reflecting its commitment to the agricultural sector.
- IRSA Inversiones y Representaciones Sociedad Anónima – A key player in the Argentine real estate market, IRSA holds shares in Cresud, aligning its interests in agriculture and real estate.
- Institutional Investors – A range of global institutional investors have invested in Cresud, attracted by its diversified portfolio and growth potential.
The following table illustrates the ownership distribution of Cresud SACIF y A as of the most recent report:
| Shareholder | Percentage Ownership | Type of Ownership |
|---|---|---|
| Grupo Los Grobo | 20% | Corporate |
| IRSA Inversiones y Representaciones S.A. | 15% | Corporate |
| Institutional Investors | 30% | Institutional |
| Public Float | 35% | Public |
The company reported a total market capitalization of approximately $600 million, with recent earnings reflecting a net income of $50 million for the fiscal year ending June 2023. Revenue was reported at around $200 million, indicating strong performance despite market fluctuations.
Market trends indicate that Cresud is positioning itself to capitalize on global agricultural demands, leveraging its extensive land holdings in Argentina, which exceed 400,000 hectares. This agricultural base provides a stable foundation for its operations across various commodities.
In the past fiscal quarter, Cresud's stock performance showed resilience, with shares trading at an average price of $10.50, marking an increase of 8% from the previous quarter. This performance underscores investor confidence, stemming from the company's strategic diversification and robust management practices.
Cresud also emphasizes sustainability and innovation in its operations, which are key factors in attracting both domestic and international investors. The management's focus on sustainable farming practices has positioned Cresud favorably within the ESG (Environmental, Social, and Governance) investment frameworks.
Cresud SACIF y A Mission Statement
Cresud SACIF y A, a leading agricultural company headquartered in Argentina, operates with a mission centered around sustainable agribusiness practices. The company aims to leverage technology in agriculture and improve productivity to deliver high-quality products while preserving natural resources.
The mission statement emphasizes the commitment to enhancing food security through responsible practices, focusing on innovation, productivity, and sustainability. Cresud's strategic outlook includes contributing to the agro-industrial value chain while ensuring profitability for stakeholders.
Financial Overview
As of the end of fiscal year 2023, Cresud reported net revenues of approximately $330 million, reflecting a year-over-year increase of 12%. The company’s net income stood at around $25 million, with a corresponding net margin of 7.6%.
Key Financial Metrics
| Financial Metric | FY 2023 | FY 2022 | Change (%) |
|---|---|---|---|
| Net Revenues | $330 million | $295 million | 12% |
| Net Income | $25 million | $18 million | 39% |
| Net Margin | 7.6% | 6.1% | 24.6% |
| Total Assets | $1.1 billion | $950 million | 15.8% |
| Total Liabilities | $650 million | $580 million | 12.1% |
Strategic Focus Areas
- Sustainability: Commitment to eco-friendly practices and maintaining biodiversity.
- Innovation: Investment in agricultural technology and R&D for better yields.
- Market Expansion: Targeting new markets to diversify revenue streams.
- Quality Assurance: Ensuring high standards for products through rigorous quality controls.
The company operates across various segments including farming, livestock, and real estate. With a philosophy rooted in sustainability, Cresud engages in practices to minimize environmental impact while maximizing productivity. As of 2023, Cresud manages over 400,000 hectares of land, producing a variety of crops including soybeans, corn, and wheat.
Impact on Local Economies
Cresud's operations significantly contribute to local economies in Argentina. The company's investment in agribusiness not only generates employment but also supports local suppliers and farmers. In 2023, Cresud created approximately 5,000 jobs directly and indirectly, fostering economic development in rural areas.
Additionally, the company engages in various community development initiatives aimed at improving the livelihoods of local populations. The commitment to social responsibility is a key component of Cresud's mission, aligning with their goal to create shared value for both shareholders and the communities in which they operate.
How Cresud SACIF y A Works
Cresud SACIF y A, a leading player in the agribusiness sector, primarily operates in Argentina. The company is engaged in agricultural production, property investment, and agricultural services, which position it uniquely in the market. As of the latest financial reports, Cresud's total revenue for the fiscal year 2022 amounted to $613 million, with an EBITDA of $253 million.
The company manages a considerable land bank, with approximately 360,000 hectares under cultivation across various Argentine provinces, including Buenos Aires and Santa Fe. This expansive land portfolio forms the backbone of its operational strategy, focusing on the production of essential crops such as soybeans, corn, and wheat.
Cresud’s operational model is diversified through investments in real estate, particularly in agricultural properties and farmland. The fair value of these investments was reported at approximately $638 million in the most recent quarterly update. This real estate investment approach not only provides a stable income stream but also capital appreciation potential.
As part of its agribusiness operations, Cresud has established strategic partnerships with international companies and actively engages in export markets. For instance, in 2022, Cresud exported over 155,000 tons of soybeans, contributing significantly to its revenue and enhancing its market position.
Additionally, the company is committed to sustainable agricultural practices, employing modern technologies and methodologies in crop production. This includes precision agriculture techniques, which have increased yield efficiencies by as much as 15% year-over-year.
| Financial Metric | 2021 | 2022 |
|---|---|---|
| Total Revenue | $570 million | $613 million |
| EBITDA | $245 million | $253 million |
| Net Income | $85 million | $90 million |
| Land Bank Size | 350,000 hectares | 360,000 hectares |
| Soybean Exports | 140,000 tons | 155,000 tons |
| Fair Value of Real Estate Investments | $600 million | $638 million |
In addition to its operational strengths, Cresud’s strategic vision includes expanding its agricultural services, aiming to enhance productivity and incorporate new technologies. The company allocates a significant portion of its budget—around 10%—to research and development aimed at improving crop yields and sustainability. Furthermore, Cresud's stock performance on the Buenos Aires Stock Exchange has shown a steady growth trajectory, with its share price increasing by approximately 20% over the past year, reflecting investor confidence in its growth potential and solid market position.
Cresud also emphasizes its commitment to corporate social responsibility. The company’s initiatives focus on community development and sustainable agricultural practices, aiming to positively impact local economies and foster environmentally friendly farming techniques.
Overall, Cresud SACIF y A stands out as a robust player in the agribusiness sector, leveraging its extensive resources and strategic initiatives to drive growth and create value for its shareholders.
How Cresud SACIF y A Makes Money
Cresud SACIF y A is an agricultural company based in Argentina, primarily involved in the cultivation of crops and the production of agricultural goods. Its operations generate revenue through multiple avenues, including crop production, real estate property development, and investments in agribusinesses.
Key Revenue Streams
- Crop Production: Cresud owns and operates over 400,000 hectares of farmland in Argentina, producing a variety of crops such as soybeans, corn, and wheat. In fiscal year 2023, the company reported revenues of approximately $182 million from crop sales.
- Real Estate Development: The company engages in the real estate sector through agricultural land management and leasing. In 2023, Cresud generated roughly $18 million from rental income.
- Agribusiness Investments: Cresud has significant investments in agribusinesses, including shares in companies such as Dreyfus and AgriCórdoba. In 2023, the returns on these investments contributed approximately $15 million to the bottom line.
Financial Overview
For the fiscal year ending June 30, 2023, Cresud reported a total revenue of $215 million, a slight increase from $210 million in the previous year. This growth was driven by higher crop yields and favorable market conditions.
| Revenue Source | 2023 Revenue (in millions) | 2022 Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|---|
| Crop Production | $182 | $170 | 7.06% |
| Real Estate | $18 | $17 | 5.88% |
| Agribusiness Investments | $15 | $14 | 7.14% |
| Total Revenue | $215 | $210 | 2.38% |
In addition to direct revenue, Cresud benefits from efficient cost management strategies. The cost of goods sold (COGS) for the fiscal year 2023 was reported at approximately $150 million, which reflects a COGS to revenue ratio of around 69.77%.
Market Presence and Competitive Advantage
Cresud is positioned as a leading player in Argentina's agricultural landscape, leveraging its extensive land holdings and advanced farming techniques. The company benefits from regional agricultural incentives and a growing global demand for food products, particularly from Asian markets.
The company's operational efficiency is further enhanced by its access to cutting-edge agricultural technology and sustainable farming practices, which help in maximizing yield while minimizing environmental impact.
Impact of Global Trends
With the increasing emphasis on food security and sustainability, Cresud's focus on large-scale, responsible agribusiness practices aligns well with global trends. In 2023, the price of soybeans reached an average of $600 per ton, while corn was around $250 per ton, contributing positively to the company's revenue potential.
Moreover, the demand for agricultural land remains robust, with prices for premium farmland witnessing an upward trend. Cresud's strategic property management thus positions it for sustained financial growth.
As of the latest financial updates, Cresud's market capitalization stood at approximately $1.2 billion, reflecting investor confidence and the company's strong performance in the agribusiness sector.
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