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Elders lifts profit in first half

Business

Adelaide headquartered agribusiness Elders has booked a first-half net profit of $38.2 million, up 56 per cent from $24.6 million a year earlier.

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The company’s revenue for the for the six months to March 31 was up four per cent to $773.2 million, with Elders saying its retail operations benefited from normal summer conditions and geographical expansion, while record livestock and wool prices boosted its agency services business.

Elders expects its full-year underlying earnings will be “on the high side” of previous guidance of $60 million in pre-tax earnings, plus or minus 10 per cent.

In a statement to the stock exchange today, Elders said its retail arm had again outperformed the previous corresponding period, with a $6.5 million improvement in earnings.

The agency services business also increased earnings by $5.8 million, driven by record livestock and wool prices, plus an increased footprint across the country.

“These high livestock prices, coupled with low interest rates, were favourable for the real estate business, generating increased demand for large cattle farming and broadacre cropping properties,” said Elders chief executive officer Mark Allison.

Elders was the 13th biggest South Australian company in 2016, according to InDaily’s SA Business Index.

– with AAP

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