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Highlights

 

  • Elders reported a 67% increase in EBIT to $64.3 million and a 166% jump in underlying profit after tax in recent half.

  • The company expects an average winter crop despite dry regions, with potential livestock price growth and positive momentum in the regional property market.

  • The ACCC is currently reviewing the proposed Delta acquisition, with a final decision expected by 21 August 2025.

 

Australian agribusiness leader Elders Ltd (ASX:ELD) has earned renewed investor interest following its half-year results, positive long-term sector outlook, and progress in its proposed acquisition of Delta Agribusiness. Analysts have responded with favourable recommendations, with Bell Potter Securities, in particular, assigning a ‘BUY’ rating and forecasting a substantial upside.

Broker Sentiment and Target Price Highlights

Elders currently holds a consensus BUY recommendation score of 2.29, with a mean target price of AUD 7.90, representing a 22.10% upside from the current price of AUD 6.465.

Bell Potter Securities’ analyst Jonathan Snape issued a ‘BUY’ recommendation with a price target of AUD 9.10, indicating a significant 44.22% upside.

Half-Year Financial Surge in FY25

Elders delivered a stellar financial performance for the half-year ending 31 March 2025:

  • Sales revenue rose 5% YoY to AUD 1.41 billion

  • Underlying EBIT surged 67% to AUD 64.3 million

  • Underlying profit after tax jumped 166% to AUD 38.2 million

  • Statutory profit after tax increased 190% to AUD 33.6 million

The company declared an interim dividend of 18.0 cents per share (50% franked), further supporting shareholder returns.

Delta Agribusiness Deal Progresses

Elders also provided an update on its pending acquisition of Delta Agribusiness Pty Ltd. The Australian Competition and Consumer Commission (ACCC) has issued a Statement of Issues (SOI) identifying areas for further investigation. While this is not a final decision, the ACCC aims to issue its final determination by 21 August 2025.

Elders remains confident in receiving approval, emphasising that the merger will enhance market competition through expanded private-label offerings, deeper technical expertise, and better service for local farmers.

FY25 Outlook

Despite a delayed sowing season in certain regions, Elders forecasts an average winter crop, thanks to its geographical diversification. The livestock sector remains robust, with potential price appreciation in cattle and sheep due to earlier de-stocking amid dry conditions.

The regional residential property market may also benefit from falling interest rates and increased product uptake via Elders Finance. Additionally, international protein demand remains historically high, supporting agricultural fundamentals.

The company reaffirmed its commitment to the Eight Point Plan, focusing on strategic investments, cost control, and capital efficiency.