Elders (ELD) H1 2025 earnings summary

Executive summary

• Underlying EBIT rose 67% year-over-year to $64.3 million, driven by livestock market recovery, real estate growth, and key acquisitions, with cost base (excluding acquisitions/growth) down 3.6%.

• Net profit after tax surged 190% to $33.6 million, with underlying profit to shareholders up 166% to $38.2 million.

• Five acquisitions completed in HY25, supporting diversification, expansion, and new points of presence.

• Major transformational projects are largely complete, with benefits beginning to flow through financials.

• Safety and sustainability targets on track, including a 21% reduction in injury frequency and 23% emissions reduction since baseline.

Financial highlights

• Sales revenue increased 5% year-over-year to $1,413.1 million, with gross margin up 14% to $324.5 million (margin to sales at 23.0%, up from 21.3%).

• Underlying EPS increased to 21.4 cents, up 135% year-over-year, and a dividend of 18 cents per share was declared, 50% franked.

• Return on capital improved to 12.7% from 11.4%, with further uplift expected as transformation benefits are realized.

• Operating cash inflow was $31.2 million, with cash conversion at 82%, impacted by livestock settlement timing.

• Net debt reduced by $56.5 million year-over-year to $423.4 million at half-year, with leverage ratio at 2.4x.

Outlook and guidance

• The outlook is positive, with wetter-than-average conditions forecast for the second half, supporting optimism for winter crop and livestock turnover.

• Company targets 5-10% growth in EBIT and EPS, and a minimum 15% return on capital through FY2026.

• Dividend payout ratio forecast to return to target range (40-60%) in FY26.

• No material impact expected from recent US tariff announcements or other external events.

• ACCC decision on Delta Agribusiness acquisition expected 29 May 2025.