Elders Limited (ASX:ELD) completed the divestment of Killara Feedlot during FY26, creating a source of cash for Debt reduction after the Acquisition of Delta Agribusiness increased the size of the group and its borrowings. The transaction simplifies Elders’ portfolio while shifting greater focus toward rural products, agency services, real estate and other agricultural services. The extent of the balance-sheet improvement will become clearer when Elders reports its full-year position.

What the Company Does

Elders is an Australian agribusiness providing products and services to primary producers and rural communities.

Its activities include farm inputs and rural merchandise, livestock and wool agency services, real estate, agricultural advisory services and financial products.

The acquisition of Delta Agribusiness expanded Elders’ geographic footprint and technical capabilities, while the sale of Killara removes a directly operated feedlot Business from the portfolio.

Killara Sale Changes the Portfolio

Elders agreed to sell 100% of Killara Feedlot to Australian Meat Group during FY26.

The transaction was initially announced at approximately A$195.8 million of consideration, comprising A$122.0 million of cash plus normalised working capital. The working-capital amount was preliminary and subject to finalisation at completion.

Killara was sold in June 2026 after the required approvals were obtained.

Elders indicated that proceeds from the transaction would support debt reduction, making the divestment particularly relevant following the increase in borrowings associated with the Delta acquisition.

Delta Acquisition Expanded the Group

Elders completed its acquisition of Delta Agribusiness on 3 November 2025.

Delta added a broad rural-products and advisory network, strengthening Elders’ presence across several agricultural regions and extending its capabilities in areas including agronomy, precision agriculture and farm advisory services.

During the first five months following completion, Delta contributed A$10.4 million of EBIT to Elders’ half-year result.

Integration continued through the first half, with synergy benefits expected to increase over time and be weighted toward the second half of FY26.

Half-Year Revenue and Profit Increase

For the six months ended 31 March 2026, Elders reported revenue of A$1,767.7 million, up 32% from the prior corresponding period.

Statutory profit after tax attributable to shareholders increased 17% to A$39.5 million.

Underlying EBIT was A$76.6 million, reflecting contributions from Delta as well as activity across the broader agribusiness portfolio.

The board declared a fully franked Interim Dividend of 18 cents per share, unchanged from the prior corresponding period.

Debt Remains an Important Measure

Net debt increased materially following the Delta acquisition and associated investment.

At 31 March 2026, net debt stood at approximately A$901 million, while Leverage was 3.8 times. These figures were reported before completion of the Killara sale.

The application of sale proceeds to borrowings should reduce absolute debt relative to that half-year position, although the final year-end balance will also reflect working capital, seasonal cash flows, Capital Expenditure and other business movements through September 2026.

This means the full-year result will provide a clearer measure of how much the divestment changed Elders’ financial position.

Business Mix Becomes More Focused

The Killara sale removes an integrated feedlot operation from Elders’ portfolio and leaves the group more concentrated on agricultural services, agency operations and rural products.

That shift may reduce direct capital requirements associated with operating the feedlot while allowing management to direct more resources toward its expanded network following the Delta transaction.

At the same time, Elders remains exposed to agricultural cycles through livestock volumes, crop conditions, fertiliser demand, input prices and farmer confidence.

Seasonal Conditions Remain Important

Elders entered the second half of FY26 expecting Earnings support from Delta, systems-modernisation initiatives and improving activity across parts of the agricultural sector.

Crop production, livestock prices and weather conditions remain major variables.

Higher fuel and fertiliser costs can affect customers and operating costs, while livestock agency earnings are sensitive to both volumes and prices.

The enlarged Delta business also requires continued integration, making delivery of targeted synergies an important operational consideration.

Leadership Transition Adds a New Strategic Phase

René Dedoncker commenced as Chief Executive Officer on 1 October 2026, succeeding Mark Allison following a planned transition.

The Leadership change comes after a period of substantial portfolio activity, including the Delta acquisition, the Killara divestment and implementation of a new divisional operating structure.

Early priorities under the new leadership will therefore be relevant to how Elders balances debt reduction, integration and future growth.

Key Areas to Watch

The FY26 full-year result will provide the first detailed view of Elders’ Balance Sheet after completion of the Killara sale.

Net debt and leverage will be particularly important given the higher borrowings reported at March 2026.

Other measures include Delta’s earnings contribution, progress on integration synergies, working-capital movements, seasonal trading conditions and the performance of the group’s rural-products and agency businesses.