Seasonal rain boosts Elders’ performance for 1HY21, profit up 31 per cent
Agribusiness Elders’ first half results for 2021 show a marked improvement on the previous year. See its performance here.
Elders has posted a 31 per cent rise in profits for the six months to March 31.
The company announced to the Australian Securities Exchange a half-year net profit after tax of $68.2 million, well above the $52 million recorded for the same period last year.
Revenue for the six months was $1.1 billion, 22 per cent higher than the $900 million for the previous corresponding period.
Elders managing director Mark Allison said many of the company’s financial metrics were higher than the previous corresponding period.
Mr Allison said underlying earnings before interest and taxation was $73.8 million, 40-per-cent higher than last year.
He said underlying return on capital was 20.1 per cent, well above the 15 per cent target set at the beginning of the third eight point plan.
Elders said seasonal conditions and market growth contributed to a strong result for its retail products division.
Mr Allison said continued rainfall had lifted farmer confidence, with strong demand expected for crop inputs in the second half of the year, particularly fertiliser and crop protection products.
“The strong environmental conditions and rainfall six weeks ago has also brought a lot of the irrigation country up to a reasonable position and we would expect to have a very strong summer crop through late September, October and November on the east coast of Australia, particularly in the north and the Murrumbidgee Irrigation Area,” he said.
“That outlook remains positive.”
Mr Allison said Elders expected cattle prices to soften in the medium term, but remaining a significant safety net for the company’s business.
He also expected real estate demand to remain strong.
Elders will pay a 20 cents a share dividend, 20 per cent fully franked, on June 18.
The interim dividend was 11 cents higher than the previous corresponding period and only two cents lower than the whole of the past year.
Mr Allison said it would not pay a fully franked dividend until 2025.
Elders shares fell 38 cents to $11.85, or down 3 per cent, in early trading on the Australian Securities Exchange today, despite the All Ordinaries index rising 0.72 per cent.
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