Breaking Down Cresud SACIF y A Financial Health: Key Insights for Investors

At the heart of Argentina's agricultural renaissance stands Cresud (CRESW), a diversified agribusiness operating across crop production, livestock and real estate-driving innovation and sustainability as it partners with over 2,000 small-scale producers and channels investments toward productivity and community development; guided by a mission to be a sustainable leader that balances economic growth with environmental stewardship, Cresud has cut its carbon footprint by 25% in the last three years while pursuing a vision to advance global food security through efficiency, R&D and responsible practices that embed integrity, responsibility, excellence, innovation, collaboration and measurable sustainability across its operations

Cresud SACIF y A (CRESW) - Intro

• Primary segments: crop production (soybeans, corn, wheat, sunflower), beef cattle (breeding and fattening), and real estate (urban and rural developments).
• Geographic footprint: operations concentrated in Argentina with commercial reach into Brazil, Paraguay and export markets in Asia and Europe.
• Strategic focus: land productivity, water management, digital agronomy, and carbon/sequestration opportunities.

• Mission: Sustainably produce and commercialize high-quality agricultural commodities and develop land assets to create long-term value for shareholders, rural communities, and customers.
• Vision: Be a leading Latin American agribusiness that sets standards in productivity, sustainability and integrated land management, leveraging innovation to respond to global food demand.
• Core values:
  • Sustainability - soil health, water stewardship, and responsible input use.
  • Innovation - precision agriculture, digital agronomy and data-driven decision making.
  • Operational excellence - scalable processes across cropping cycles and livestock systems.
  • Transparency & governance - strong financial discipline and stakeholder reporting.
  • Community engagement - rural employment, local supply chains and social investment.

• Increase yield per hectare through genetics and precision inputs - target uplift of 5-10% over rolling three-year cycles.
• Improve herd productivity (calving rate and weight gain) to raise beef output while reducing methane intensity per kg of meat.
• Monetize underutilized real estate parcels through phased urbanization and rural land sales to improve asset turnover.
• Reduce GHG intensity and increase carbon sequestration via no-till adoption, cover crops and afforestation where appropriate.

• Soil conservation: hectares under conservation tillage and cover crops tracked annually.
• Water: irrigation efficiency improvements and monitoring of water use intensity per ton produced.
• Emissions: baseline GHG footprint for Scope 1 & 2 and pilot reporting for Scope 3 (supply chain and land-use changes).
• Biodiversity: set-aside hectares and habitat corridors within operational estates.

• Commodity price volatility - use of hedge programs and diversified crop mix.
• Currency exposure - natural hedge via export receipts; selective FX hedging for liabilities.
• Climate risk - crop insurance, diversified geography and resilient crop mixes.
• Regulatory & land-use risk - active engagement with local stakeholders and compliance teams.

Cresud SACIF y A (CRESW) - Overview

• Integrate sustainability across farming, livestock and land-management operations to secure long-term productivity and ecosystem health.
• Support rural communities through employment, infrastructure, education and health initiatives tied to agribusiness activities.
• Reduce environmental footprint via emissions control, soil and water conservation, and biodiversity-friendly practices.
• Pursue profitable growth to maintain capital access for reinvestment in sustainable technologies and community programs.

• Environmental programs: progressive adoption of no-till farming on large acreage, targeted reforestation and riparian buffer restoration to protect watershed function.
• Social initiatives: rural schools support, technical training for local producers, and micro-supply chain projects that increase smallholder inclusion.
• Corporate governance: board-level sustainability oversight, periodic external audits of ESG targets, and alignment with international reporting norms.

Cresud SACIF y A (CRESW) - Mission Statement

• Produce food and agricultural inputs at scale while reducing environmental footprint.
• Invest in technology and agronomic research to increase yields and resource efficiency.
• Maintain financial resilience through diversified revenue streams: farming, land development, and livestock.
• Support rural communities via employment, infrastructure, and sustainable land management.

• Innovation: Scale precision agriculture, digital agronomy, and mechanization to raise productivity per hectare.
• Efficiency: Optimize input use (water, fertilizers, energy) to lower per-unit production costs and emissions.
• Global food security: Align production and commercialization strategies to supply domestic and export markets reliably.
• R&D investment: Allocate capital toward crop genetics, soil health, and climate-resilient practices.

• Productivity & Agronomy: Raise average yields through precision seeding, improved varietals, and optimized inputs - measurable as tons/ha and input-use efficiency.
• Operational Efficiency: Reduce unit costs and logistics frictions; targets focused on % reduction in cost/ton and days-to-market for crops.
• Sustainability & Climate Resilience: Lower greenhouse gas intensity per ton produced, expand conservation agriculture, and improve soil carbon - tracked by emissions intensity and soil health indices.
• Commercial & Market Access: Grow export volumes and access higher-margin channels; measured by export tons, realized FOB prices, and margin per crop.
• Financial Discipline: Preserve liquidity, manage leverage, and prioritize projects with positive NPV; tracked via net debt/EBITDA and ROIC targets.

• R&D partnerships with universities and agtech firms for seed and soil research.
• Field trials and pilot programs deploying satellite imagery, IoT sensors, and variable-rate application to scale best practices across holdings.
• Market diversification: balancing domestic supply with export-oriented sales to capture price differentials and stabilize revenues.
• Capital allocation toward assets and projects that increase resilience to climate variability and commodity cycles.

Cresud SACIF y A (CRESW) Vision Statement

• Integrity - Transparent governance, compliance and ethical conduct across 100% of consolidated operations;
• Responsibility - Accountable stewardship of natural resources across ~1.3 million hectares under management;
• Excellence - Targeting top-quartile operational KPIs: crop yields, livestock productivity and logistics efficiency;
• Innovation - Investment in precision agriculture, digital agronomy and water-saving technologies (R&D / tech CAPEX ~US$18M in the last fiscal year);
• Collaboration - Cooperative model benefiting over 2,000 small-scale agricultural producers through supply agreements, technical assistance and market access;
• Sustainability - Environmental programs delivering a 25% reduction in carbon emissions over the past three years and progressive soil- and water-conservation initiatives.

• Resource efficiency programs - irrigation modernizations and low-till adoption across priority acres;
• Market access initiatives - forward contracts and pooled logistics reducing price volatility for smallholders;
• Governance & transparency - regular sustainability disclosures and third-party audits;
• Talent & capability building - agronomy training reaching thousands of producer technicians annually.