Cresud Reports Substantial Loss in 2024 Due to Inflation's Impact

Cresud SACIF reports a loss of $61.9 million for the first nine months of 2024, citing inflation's impact on its IRSA investment properties. This marks a significant decline from the company's profit of $140,918 million during the same period in 2023.

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Nitish Verma
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Cresud Reports Substantial Loss in 2024 Due to Inflation's Impact

Cresud Reports Substantial Loss in 2024 Due to Inflation's Impact

Cresud SACIF (NASDAQ: CRESY), an Argentine agricultural company, has announced a significant loss of ARS 25,646 million (approximately $61.9 million) for the first nine months of 2024. The company attributes this substantial decline to the impact of inflation on its IRSA investment properties. In stark contrast, Cresud had reported a profit of ARS 140,918 million for the same period in 2023.

Why this matters: The significant loss suffered by Cresud highlights the far-reaching consequences of Argentina's economic instability onstock, earnings of businesses operating in the country. As the country struggles to control inflation, companies like Cresud will need to adapt their strategies to mitigate risks and maintain their market position, which could have a ripple effect on the entire economy.

The company's fiscal third-quarter results, released on May 10, 2024, revealed a loss of $61.9 million, translating to $1.05 per share. Cresud's revenue for the quarter stood at $168.3 million. This report marks a significant departure from the company's previous financial performance.

Cresud's operations span various sectors, including crop production, cattle raising, and land transformation. The company also holds a significant stake in IRSA, a leading real estate company in Argentina. The impact of inflation on IRSA's investment properties has been cited as a primary factor contributing to Cresud's substantial loss in 2024.

Argentina has been grappling with high inflation rates in recent years, which have had far-reaching effects on the country's economy. In 2023, the inflation rate in Argentina reached 94.8%, one of the highest in the world. This economic instability has posed significant challenges for businesses operating in the country, including Cresud and its subsidiaries.

The company's financial results for the first nine months of 2024 underscore the profound impact of Argentina's economic challenges on Cresud's performance. As the country continues to navigate the complexities of high inflation and economic uncertainty, companies like Cresud will need to adapt their strategies to mitigate risks and maintain their market position.