Elders lifts first-half earnings despite dry weather, holds dividend at 18 cents
Published: 09:55 26 May 2025 AEST
Agribusiness major Elders Ltd has maintained its interim dividend at 18 cents per share, as improved livestock market conditions and disciplined cost control helped offset the impacts of dry weather in parts of South Australia and Victoria.
The company reported a strong underlying earnings recovery for the six months to March 31, 2025, with earnings before interest and tax (EBIT) rising 67% to A$64.3 million, up from A$38.4 million in the prior corresponding period. Underlying profit before tax surged 130% to A$49.7 million, while statutory profit after tax increased 190% to A$33.6 million.
Improved performance
Elders attributed the turnaround to improved performance across most product and service categories, with livestock operations benefiting from higher prices and stronger demand. Acquisitions in real estate and a focus on cost management also contributed to the improved earnings base.
“This is despite gross margin decline from retail products due to ongoing dry conditions across parts of the country, which has potential to push demand for some winter crop inputs to the second half,” the company noted.
Chief executive officer Mark Allison said dry conditions in key cropping regions weighed on rural products sales, but this was offset by the resilience of livestock markets.
“Livestock prices and demand are expected to remain strong, and a return to average seasonal conditions for the 2025 winter crop is forecast. These are all positive indicators for our business going into the second half,” Allison said.
The 18-cent dividend will be paid on June 27. Shares in Elders last traded at A$6.60.
