CRESY Latest Report

Financial Performance

Cresud's total operating revenue was RMB204.472 billion as of December 31, 2024, a YoY decrease of 7.26% from RMB2204.63 billion in 2023. This change reflects the challenges in revenue generation, which may negatively impact its overall profitability.

Key Financial Data

1. Total operating revenue decreased by 7.26% to RMB204.472 billion, indicating a weakening revenue generation capacity.

2. Sales costs significantly increased to RMB1222.89 billion, up RMB259.33 billion from RMB963.56 billion in 2023, leading to a decrease in gross profit.

3. Intensified market competition put pressure on pricing strategies, failing to effectively boost sales revenue.

4. Marketing, sales, and management expenses slightly decreased to RMB42.425 billion, but if cost control cannot be sustained, it may further compress profit margins.

Peer Comparison

1. Industry-wide analysis: The industry faced significant challenges in 2024, with a decline in overall operating revenue, mainly affected by weakened market demand and rising costs. The overall economic environment for agriculture and real estate sectors became more pressured.

2. Peer evaluation analysis: Cresud's operating revenue decline was relatively smaller, but still not strong enough. Many peers took more effective cost control measures to maintain a relatively stable revenue level, indicating that Cresud needs to adjust its operating strategy to adapt to market changes.

Summary

Cresud's operating revenue decline in 2024 was mainly due to the increase in sales costs and intensified market competition. Although the company took cost control and market expansion measures, it still needs to further optimize its operating strategy to enhance profitability and market competitiveness in the current economic environment.

Opportunities

1. By optimizing raw material procurement and cost control, production costs can be reduced, potentially boosting gross margin.

2. Accelerating new product R&D and market expansion steps can form business scale and promote revenue growth.

3. Strengthening internal management and operational efficiency helps resist market volatility risks.

Risks

1. Further compression of profit margins due to rising raw material prices and unstable market demand.

2. Intensified industry competition may lead to price wars, putting pressure on the company's profitability.

3. Macroeconomic fluctuations may affect overall market demand, in turn affecting the company's sales and revenue performance.