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Highlights

  • Elders’ statutory profit after tax surged 190% to $33.6 million for HY25.

  • Despite increase in earnings, shares fell 7.58%, making it the ASX 200’s worst performer in early trade.

  • Pressure on retail margins and dry conditions weigh on investor sentiment.

Elders Limited (ASX:ELD) released its half-year result, reporting a 190% jump in statutory profit after tax on the back of increased livestock prices and improved margins. However, the upbeat financials failed to impress the market, with the company’s shares tumbling 7.58% to AU$6.10 in early ASX 200 trade. Over the past 12 months, Elders’ share price has now shed more than 27%.

For the six months ended 31 March 2025, Elders reported a statutory profit after tax of $33.6 million, a sharp rebound from $11.6 million in the prior corresponding period. The company also saw a 5% rise in sales revenue, reaching $1.41 billion, while underlying EBIT surged 67% to $64.3 million.

The board declared an interim dividend of 18 cents per share, 50% franked.

The livestock division was the primary growth engine, buoyed by a recovery in prices, improved producer sentiment, and enhanced production margins. Elders noted that strategic acquisitions in real estate services and tight cost controls also contributed to its earnings.

“The uplift in livestock prices and an improving operating environment have helped drive profitability,” the company said in its results announcement. “This is a significant rebound from the previous year, which was marked by depressed prices and subdued demand across key segments.”

However, not all parts of the business performed equally well. Elders flagged a decline in gross margins within its retail products segment, particularly in South Australia and western Victoria, where dry seasonal conditions and increased local competition took a toll.

Market watchers suggested the share price drop may reflect lingering concerns over margin pressure and future earnings sustainability, particularly if dry weather conditions persist into the second half.

Despite the market reaction, Elders remains optimistic. The company said the outlook for Australian livestock is “sound”, with proposed tariffs unlikely to materially impact the sector. Additionally, the regional property market is holding steady, and forecasts point to an average winter crop, supporting the company’s rural services operations.