Elders reports $38.4 million underlying earnings before interest and tax (EBIT) and announces an interim dividend of 18.0 cents per share (50% franked). Elders reaffirms full year underlying EBIT guidance of between $120 million and $140 million.
Australian agribusiness Elders (ASX:ELD) today released its half year results for the six months to 31 March 2024.
Elders' HY24 performance was influenced by challenging seasonal conditions, cautious client sentiment, softening crop input prices and lower livestock prices.
Trading in the second quarter improved, compared to the first quarter, following an uplift in client sentiment, supported by un-forecast, widespread rainfall across many regions in eastern and southern Australia. Livestock prices recovered strongly throughout the half in line with improved seasonal conditions, which have also assisted the outlook for the 2024 winter crop and Elders’ second half.
Elders' Managing Director and CEO, Mr Allison, said, "As outlined in our trading update on 8 April 2024, Elders was impacted in the first half by below average seasonal conditions which resulted in subdued client sentiment and lower crop protection and livestock prices against the prior period. Earnings improved in the second quarter, in line with a more favourable operating environment, and we are confident in a stronger second half with a return to average seasonal conditions and improved outlook for winter crop and livestock production.”
“As a leading agribusiness we expect fluctuations in our operating environment; our response remains to focus on the controllable. This includes a commitment to a tightly managed cost base and a geographically diverse multi-product portfolio, to deliver strong earnings and value for shareholders through the cycles.”