Elders shares climb on full-year profit growth results
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More news: Elders shares rallied after the agriculture and real estate group posted a 12% rise in full-year statutory profit and issued an "optimistic" outlook for FY26.
Shares were up 4.5% to $7.29 at 1:20pm AEDT, having lost around 14% over the last 12 months.
Citi analyst William Park said he expects shares to trend higher on the positive outlook commentary.
What they said: "With FY25 earnings guidance handed down earlier last month, all eyes are on FY26 momentum," said Park.
"Elders' constructive outlook statement for FY26 should be well received. We continue to think there is upside risk to Delta and crop protection momentum," he said.
"While leverage has tracked higher in FY25 to complete the Delta deal, improving operating conditions and the Delta contribution going forward should drive this down progressively. We expect shares to be up."
Elders posts 12% rise in full-year profit, sets 'optimistic' outlook for FY26
The news: Agriculture and real estate group Elders has reported a 12% rise in full-year statutory profit after tax to $50.3 million, and posted an "optimistic" outlook for FY26, bolstered by the recent acquisition of Delta Agribusiness.
The numbers: Elders recorded full-year sales revenue of $3.2 billion, up 2% year on year. The company declared total dividends of 36 cents per share, level with last year's payout.
The context: The group said gross margin at its retail products business declined compared to the prior year, impacted by localised competition and dry conditions in South Australia and western Victoria.
Elders' wholesale products margin was stable year on year. The group saw its gross margin increase across its agency services, real estate services, financial services and feed and processing services divisions.
Elders said it is "optimistic" about the outlook for FY26, supported by an expected recovery from dry conditions in South Australia and Victoria, as well as benefits following the implementation of its new retail system. The company's buyout of Delta Agribusiness is also due to expand its rural products segment.
What they said: "The outlook and fundamentals for Australian livestock remain sound with prices for sheep and cattle forecast to be supported by strong international demand against a backdrop of tightening supply, especially from regions recovering from drought," the company said.
"The outlook for the regional residential property market remains positive, benefitting from stabilisation of interest rates at lower levels."
