Cresud Shs Sponsored American Deposit Receipts Repr 10 Shs (NASDAQ:CRESY) Q1 2021 Earnings Conference Call - Final Transcript

Nov 20, 2020 • 02:00 pm ET

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Cresud Shs Sponsored American Deposit Receipts Repr 10 Shs (NASDAQ:CRESY) Q1 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Santiago Donato

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the First Quarter of Fiscal Year 2021 Results Conference Call. First of all, I would like to remind you that both audio and a slide show maybe accessed through the company's Investor Relations Web site at www.cresud.com.ar by clicking on the banner webcast link. The following presentation and the earnings release are also available for download on the company Web site. After management remarks, there will be a question-and-answer session for analysts and investors [Operator Instructions].

Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks and uncertainties and actual results may differ materially. Please refer to the detailed note in the company's earnings release regarding forward-looking statements.

I will now turn the call over to Mr. Alejandro Elsztain. CEO. Please go ahead, sir.

Executive
Alejandro Elsztain

Hello. Good afternoon, everybody. We are beginning our first quarter 2021 results in the Page number 2. And we can see and begin with the adjusted EBITDA for the quarter that we are achieving ARS5.8 billion that is 63% higher than last year numbers. When we see about the comparison of the two quarters, it's almost the same at the early business level and Matias explain deeper later. In the urban business, there is an increase of 155% in the urban business comparing year to year and is these when we compare the rental segment its much lower this year, it's 96% comparing to last year. It's big drop, majority of the last six months, our malls were closed. But we had a big increase in the sales of some office buildings that made ARS5 billion in the first quarter in the urban business.

About the net results, we are finishing the first quarter with ARS7.5 billion gain, a little smaller than last year number, and resulting to the attributed to the controlling company, it's a much higher. We are in the positive ARS2.9 billion comparing to a loss of last year. This first quarter, it's beginning with the strong recovery in commodity prices, we are going to explain deeper with Carlos about what is happening on the market. From other side, the conditions at the beginning of the company are the best, and we -- the last weeks, began to rain and the planting, it's becoming to recover to almost normal. But the market changed a lot the last 90 days and we are going to speak much more deeper now.

From the other side, there were no farm sales in the first quarter. I think this is a market that will move a lot. In this new environment of prices, a lot of interest for farmers mainly in Brazil because of the situation of the devaluation on their currency plus the increasing on the prices is making a very positive market with