Company: CRESW
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001654954-25-012195
Chunk: 105

Company: CRESUD INC
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 105
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 several different locations, and it is unlikely that a natural disaster affects all of them simultaneously, a fire or other natural disaster which damages the stored grain, particularly if such event occurs shortly after harvesting, could have an adverse effect on our operating results and financial condition.

If we are unable to maintain relationships with our customers, our business and results of operations could be adversely affected.

While our livestock sales are diversified, we depend, and will continue to depend, to a significant extent on a number of relationships with third parties, primarily our customers for crop sales. During the fiscal year ended June 30, 2025, our agribusiness segment sales (excluding farmland sales) were made to approximately 30 customers. Sales to our ten largest customers accounted for approximately 55% to 60% of our net sales. Our principal customers during this period included Cargill, FASA, Bunge Alimentos S/A, ACA, Glencore, Quilmes, COFCO, Grobocopatel, Molinos Río de la Plata, Boomalt and Viterra. We have entered into non-binding letters of intent with certain of our main customers, which enable us to estimate demand volumes for certain products and plan production accordingly. We generally enter into short-term agreements with a duration of less than one year.

We sell our crop production primarily to exporters and manufacturers that process raw materials into flour and oil, which are subsequently shipped to export markets. The Argentine crop market is characterized by a limited number of buyers and a large number of sellers. Although most of the buyers are international companies with solid financial conditions, there can be no assurance that this will continue in the future or that the market will not become further concentrated.

We may not be able to maintain our existing customer relationships or establish new ones, including with other suppliers of products and services that are important to our business. As a result, there can be no assurance that our current or future relationships will result in sustained business or the generation of significant revenues.

Our business is seasonal, and our results of operations may fluctuate significantly depending on the crop cycle.

Our agricultural business is highly seasonal due to its nature and cycle. Harvesting and sales of crops (corn, soybean and sunflower) generally occur between February and June, while wheat is harvested between December and January. Our operations and sales are affected by the crop growth cycle of the products we process, as well as by the decline in cattle prices during the summer months. As a result, our operating results have fluctuated significantly from