In the first quarter of fiscal year 2027, Cresud went from a profit of 743 million pesos to a loss of 3,840 million in its Argentine cattle business, after the holding effect ran out, while agricultural activity posted a negative 763 million.
Cresud, the company controlled by the Elsztain family, went from a profit of 743 million pesos in the first quarter of fiscal year 2026 to a loss of 3,840 million pesos, in constant currency, in the same period of fiscal year 2027 in its cattle business in Argentina.
The revaluation of cattle prices had been a considerable help in generating profits in recent years, but that "holding effect" vanished and left cattle companies facing rising costs in dollars.
"This decline is mainly explained by larger losses in Argentina from the initial recognition and changes in the fair value of biological assets, due to the inflation restatement of the initial stock, in a context in which cattle prices evolved below inflation," the balance sheet explains.
"These effects were partially offset by an improvement in the result in Brazil, driven by a 77% increase in metric tons produced," the document adds.
As of September 30, the company reported 76,221 hectares devoted to cattle ranching, 0.6% more than a year earlier, with most of them located in Argentina, although it also operates in Brazil and Paraguay. In a process of retaining breeding females, the breeding herd reached 57,196 animals versus 55,585 on the same date in 2025, while finishing stock was cut by almost 4% year-on-year.
Agricultural activity also posted a loss of 763 million pesos in the first quarter of fiscal year 2027, compared with a negative result of 119 million pesos a year earlier.
The company attributed that result to "a decline in the result in Argentina, due to losses from the mark-to-market valuation of futures contracts for the 2026/27 season amid rising grain prices, mainly soybeans, and the effect of inflation on the production result of the 2025/26 season." That loss was "partially offset by an improvement in the result in Brazil, driven by higher sales and holding results, mainly from better soybean prices, and by the recovery of the cotton production result. This improvement was partially counteracted by production losses in corn and by the valuation of derivative operations."
