CRESY - Cresud's Standalone Operations Are Unprofitable, Not An Opportunity
2025-02-20 16:21:59 ET
Summary
- Cresud's Q2 2025 earnings reflect a struggling Argentinian agricultural sector with low prices, high costs, and an appreciated currency, leading to poor performance.
- The company's complex reporting, compounded by hyperinflation accounting and partial ownership consolidations, makes it difficult for investors to understand its financial health.
- Sum-of-the-parts analysis suggests Cresud is not attractive as its individual parts can be accessed separately; I maintain a Hold rating.
- Removing Brasilagro's results from Cresud's agribusiness segment reveals significant losses, highlighting the challenging year for Argentinian agriculture.
Cresud ( CRESY ) released Q2 2025 earnings. The conglomerate consolidates the earnings of IRSA ( IRS ) and Brasilagro ( LND ), which I have already analyzed for Q2 2025 in other articles ( Irsa , Brasilagro )....
Cresud's Standalone Operations Are Unprofitable, Not An Opportunity