Elders shares gain despite first-half earnings slump
Make us a preferred source
Make us a preferred source on Google
More news: Elders shares lifted on the ASX, despite the agriculture and real estate group reporting a downturn in first-half profit and lowering its interim dividend.
However, the company reaffirmed full-year underlying EBIT guidance on an improving outlook for the second half of the year.
Last month, the company already flagged to investors that first-half trading was "significantly below" expectations.
Elders shares were up 2.3% to $8.40 by 1:20pm AEST and over the last 12 months it was surged 21.85%.
Elders posts profit and revenue decline, cuts dividend
The news: Elders reported a plummet in first-half profit and lowered its interim dividend, as challenging seasonal conditions, cautious client sentiment, softening crop input prices and lower livestock prices weighed on the agribusiness' earnings.
The numbers: Elders reported statutory profit after tax of $11.6 million, down 76% compared to the prior corresponding period. Underlying EBIT sank 54% year on year to $38.4 million, as sales revenue reduced 19% to $1.34 billion.
The group lowered its interim dividend 22% year on year to 18 cents per share, 50% franked. However, it reaffirmed its full-year underlying EBIT guidance of between $120 million and $140 million.
The context: Elders said that trading in the second quarter improved compared to the first quarter, following an uplift in client sentiment, supported by widespread rainfall across many regions in eastern and southern Australia.
Livestock prices also recovered strongly throughout the half in line with improved seasonal conditions.
The company said it expects better trading conditions during the second half of FY24, with a positive outlook for winter crop and livestock production.
Elders shares tumbled last month after the agriculture and real estate group flagged that first-half trading was "significantly below" expectations. They later recovered as analysts were encouraged by an improving outlook for the second half of the year.
The source: ASX announcement
