Elders (ELD) H1 2025 earnings summary

Executive summary

• Underlying EBIT rose 67% year-over-year to AUD 64.3 million, driven by livestock market recovery, agency services, and real estate growth.

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

• Major transformational projects (SysMod, Project Slimline, Project Streamline, Elders Wool, feed mill upgrades, Agritoll) are largely complete, with benefits beginning to flow through financials.

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

• Maintained #1 most trusted agribusiness brand among farmers for the fifth consecutive year.

Financial highlights

• Sales revenue increased 5% year-over-year to AUD 1,413.1 million; gross margin up 14% to AUD 324.5 million.

• Underlying net profit after tax rose 166% to AUD 38.2 million; underlying EPS up 135% to 21.4 cents.

• Dividend per share maintained at 18 cents, franked at 50%.

• Operating cash inflow was AUD 31.2 million, with cash conversion at 82%.

• Net debt reduced by 10% to AUD 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.

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

• Post-emergent crop protection and cereal fungicide markets are expected to benefit from current weather patterns.

• 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.