Agribusiness Elders has more than tripled its half year underlying profit thanks to higher livestock prices and improvements to its operations.
Elders made an underlying profit of $16.2 million for the six months to March 31, up from $5 million a year ago.
It attributed the improvement to a significant increase in livestock prices, improvements in its feed and processing operations and a turnaround in its Chinese operations.
Net profit, which includes one-off items, was $15.9 million, compared to a $10.2 million loss a year ago.
In a statement released this morning, Elders’ CEO Mark Allison said the positive results were due to a “considered and measured approach to operating as a profitable agribusiness”.
It’s been a big turnaround for the company, which underwent several post-GFC restructures that eventually left it as a “pure play” agribusiness.
In the 2013 financial year, its losses topped the half-billion dollar mark.
Allison said today that the company was focused on delivering value to its rural stakeholders.
He flagged a relaunch of the Elders brand, supported by a national TV campaign.
“We are making particular progress in reviewing and rebuilding our key relationships with clients, suppliers, investors and the local communities in which we operate,” he said.
“In the past six months we have conducted Australia-wide focus group research, engaged in ongoing investor briefings, rationalised key suppliers, and will soon launch a national TV campaign, relaunching the Elders brand.”
– with AAP
