Elders posts profit, awaits ACCC ruling on Delta Agribusiness takeover

The agribusiness major has posted an improved half-year profit on the back of a rise in livestock prices, as it awaits an imminent ruling on a key acquisition.

Elders has posted an improved half-year profit on the back of a rise in livestock prices and key acquisitions.

The agribusiness major reported on Wednesday its sales revenue was up 5 per cent year on year to $1.41bn, with an underlying EBIT of $64.3m, up 67 per cent.

Chief executive Mark Allison said aside from waiting for an autumn break in some parts of the country, “the outlook generally and nationally is positive”.

“In my mind, producers are more prepared and equipped to handle the fluctuations of farming than they have ever been,” he said.

Higher livestock prices were a ‘key driver’ in the increasing profit, improvement sentiment and production margins in the livestock industry.

Elders chief executive Mark Allison.

However, not all areas saw growth. Ongoing dry conditions in parts of the country, notably South Australia and western Victoria, led to a decline in gross margin for retail products, impacting crop protection sales.

Elders has forecast an average winter crop, despite late sowing in parts of the country, while it anticipates little impact from proposed tariffs on livestock.

“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,” Mr Allison said.

On the property front, Elders acquisition of IPST Holdings (previously operated as Knight Frank Tasmania) was a key driver in its real estate services margin increasing 52 per cent year-on-year to $53.9m.

Elders also noted it is awaiting the Australian Competition and Consumer Commission’s (ACCC) decision regarding its proposed acquisition of Delta Agribusiness Pty Ltd, expected on 29 May 2025.

Elders announced in November last year it had struck a $475m deal to acquire the agribusiness adviser and rural products provider.

The company announced its half-year dividend would be 18¢ per share, to be paid on June 27.

Elders share price had dropped almost 6 per cent as of 2.30pm on Monday.