Cresud Inc. (NASDAQ: CRESY, BYMA:CRES), an Argentine real estate company, announced the outcomes of its Ordinary and Extraordinary General Shareholders' Meeting held on Monday. The meeting included the approval of financial statements, dividend distributions, and appointments to the company's board and supervisory committee.
Shareholders approved the financial documents for the fiscal year ending June 30, 2024, and agreed on a net income allocation of approximately 70.8 billion Argentine pesos. The allocation includes over 3.5 billion pesos to the legal reserve and up to 45 billion pesos for dividends, with the balance going to a voluntary reserve for future dividends, share buybacks, or company business plan projects.
The board of directors received approval for their performance in the past fiscal year, as did the supervisory committee. Compensation for the board was set at around 373.2 million pesos, and approximately 16.9 million pesos for the supervisory committee, reflecting their roles and contributions.
The shareholder meeting also ratified a previous cash dividend distribution of 30 billion pesos, made on May 2, 2024, and approved the appointment of PricewaterhouseCoopers as the certifying accountant for the upcoming fiscal year.
A significant decision at the meeting was the approval of the issuance and supplementary public offering of common shares to adjust the number of shares related to options issued under a previous capital increase. The board was granted broad powers to implement this, including setting terms and conditions for the offering and managing the American Depositary Receipts program.
Finally, the meeting authorized attorneys to carry out registration proceedings related to the shareholder meeting's resolutions with the Argentine Securities Commission and other relevant entities.
In other recent news, Cresud Inc. has announced a series of significant financial developments. The company has initiated a share repurchase program, aiming to acquire up to 10% of its own shares, driven by current market conditions and the perceived undervaluation of the shares. The repurchase period is set for 180 days, with funds coming from Cresud's available reserves and earnings.
In addition to this, Cresud has declared a substantial cash dividend distribution of ARS 45 billion for its shareholders. This dividend represents 7.527% of the share capital eligible for collection. The provision for this dividend will be made available to shareholders on a date determined by applicable regulations.
On another note, Cresud has successfully sold a portion of its "Los Pozos" property, a 3,630-hectare section of their farm in Salta Province, Argentina, for a total of $2.23 million. This sale will be reflected in Cresud's financial statements for the first quarter of fiscal year 2025.
Furthermore, the company issued additional shares following the exercise of warrants, leading to the registration of 2,283,822 ordinary shares and an increase in total shares from 596,355,320 to 598,639,142. This resulted in a collection of USD 982,729 from the warrant exercises.
Finally, Cresud issued Series XLVI notes, raising an equivalent of USD 28.6 million, a move in line with the company's efforts to strengthen its capital structure and diversify its financing sources.
InvestingPro Insights
Cresud's recent shareholder meeting decisions align well with its financial performance and market position. According to InvestingPro data, the company boasts a market capitalization of $677.97 million USD and has been profitable over the last twelve months. This profitability is reflected in its attractive P/E ratio of 9.88, suggesting the stock may be undervalued relative to its earnings.
The approval of dividend distributions at the shareholder meeting is consistent with Cresud's investor-friendly approach. InvestingPro Tips highlight that the company "pays a significant dividend to shareholders," with a current dividend yield of 7.87%. This high yield, combined with the company's strong financial performance, makes Cresud an interesting option for income-focused investors.
Moreover, Cresud's position as a "prominent player in the Food Products industry" (another InvestingPro Tip) is supported by its solid revenue of $780.44 million USD in the last twelve months. The company's gross profit margin of 40.13% for the same period indicates efficient operations and pricing power within its market.
For investors seeking more comprehensive insights, InvestingPro offers 7 additional tips on Cresud, providing a deeper understanding of the company's financial health and market position.
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