Elders shares tumble despite profit jump
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More news: Elders was the worst performer across the ASX 200 in early trading despite posting a jump in profit.
Elders shares were down 7.58% to $6.10 by 10:28am AEST and over the last 12 months have lost 27.07%.
Over the six months to March, Elders' statutory profit after tax jumped 190% due to higher livestock prices, improving sentiment and production margins in the livestock industry.
Elders half-year profit jumps on livestock prices
The news: Elders’ statutory profit after tax has jumped 190%, due to higher livestock prices, improving sentiment and production margins in the livestock industry, during the six months to 31 March.
The numbers: Statutory profit after tax for the half-year was at $33.6 million, up from $11.6 million during the prior corresponding period. Sales revenue lifted 5% to $1.41 billion and underlying EBIT jumped 67% to $64.3 million.
The board also declared an interim dividend of 18 cents per share, 50% franked.
The context: Elders said during the half, key acquisitions in real estate services and strict cost management also supported the improved earnings.
However, there was a decline in gross margins within its retail products segment due to ongoing dry conditions, particularly in South Australia and western Victoria, and increased localised competition.
The overall profit increase was a recovery from HY24 which was impacted by low livestock prices, lower crop protection margin and subdued client sentiment.
Elders said the outlook and fundamentals for Australian livestock remained “sound” with little impact expected from currently proposed tariffs. The regional residential property market outlook remained positive and an average winter crop is forecast.
The source: ASX
