Profile: Cresud SACIF y A (CRESY.O)
23 May 2019
Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria, incorporated on February 19, 1937, is an agricultural company engaged in the production of basic agricultural commodities with presence in the agricultural sector of Brazil, through its investment in Brasilagro, as well as in other Latin American countries. The Company is involved in various farming activities, including grains and sugarcane production, beef cattle raising and milk production. In addition, it leases lands to third parties and perform agency and agro-industrial services, including a meat packing plant. It is also directly engaged in the Argentine real estate business through its subsidiary Inversiones y Representaciones Sociedad Anonima (IRSA), a real estate company. IRSA is engaged in the development, acquisition and operation of shopping centers, offices and hotels in Argentina, as well as the development of residential properties. It operates in two businesses areas, namely, Agricultural and Investment and Development Properties. Its crop production is mainly based on grains and oilseeds, and sugarcane.
The Company's main crops include soybean, wheat, corn and sunflower. Other crops, such as sorghum and peanut, are sown occasionally and represent only a small percentage of total sown land. The Company, through its subsidiary, Sociedad Anonima Carnes Pampeanas S.A. (Carnes Pampeanas), owns a meat packing plant in Santa Rosa, Province of La Pampa, with capacity to slaughter and process approximately 9,600 cattle heads per month. Its farms include El Recreo, Los Pozos, San Nicolas, La Gramilla and Santa Barbara, La Suiza, El Tigre, San Rafael, Nova Buriti and Silos.
The Company's Agricultural business comprises eight segments: Crops, Cattle, Dairy, Sugarcane, Agricultural Rentals and Services, Land Transformation and Sales, Agro-industrial and Others. The Crops segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers. The Cattle segment consists of breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets. Its Dairy segment consists of breeding and/or purchasing dairy cows for the production of raw milk for sale to local milk and milk-related products producers. Its Sugarcane segment consists of planting, harvesting and sale of sugarcane. The Agricultural Rentals and Services segment consists of services (irrigation) and leasing of the Company's farms to third parties. Its Land Transformation and Sales segment comprises gains from the disposal and development of farmlands activities. The Agro-industrial segment consists of feedlot farming and the slaughtering and processing in the meat refrigerating plant. The Others segment consists of the aggregation of the remaining operating segments, which do not meet the quantitative thresholds for disclosure.
As of June 30, 2015, the Company owned 31 farms with approximately 622,220 hectares distributed in Argentina, Brazil, Bolivia and Paraguay. As of June 30, 2015, approximately 95,150 hectares of the land it owned were used for crop production, approximately 74,273 hectares were for beef cattle production, 85,000 hectares were for sheep production, 2,864 hectares were for milk production and approximately 8,026 hectares were leased to third parties for crop and cattle production.
Investment and Development Properties
The Company's Investment and Development Properties comprises six segments: Shopping Center Properties, Offices, Sales and Developments, Hotels, International, and Financial Operations and Others. Shopping Center Properties segment includes results from the commercial exploitation and development of shopping centers. Such results originate mainly from the lease and the delivery of services related to the lease of commercial facilities and other spaces in the Company's shopping centers. Its Offices segment includes the operating results of the Company's lease of office space and other rental properties and service revenues related to this activity. Sales and Developments segment includes the operating results of the sales of undeveloped parcels of land and/or trading properties, as the results related with its development and maintenance. Also included in Sales and Developments segment are the results of the sales of real property intended for rent, sales of hotels and other properties included in the International segment. Hotels segment includes the operating results of the Company's hotels consisting of room, catering and restaurant revenues. International segment includes the return on investments in subsidiaries and/or associates that mainly operate in the United States in relation to the lease of office buildings and hotels in that country and the return on investment in IDB Development Corporation Ltd. (IDBD) at fair value. The Financial Operations and Others segment primarily includes the financial activities carried out by the Company's associates.
The Company competes with Cencosud S.A.
Cresud SACIF y A
Moreno 877, piso 23
BUENOS AIRES C1091AAQ