Elders Limited Annual Financial Report for 2024
ELD (ELD) Share Update November 2024 Sunday 17th
Elders Limited Reports Significant Drop in Annual Profit
Elders Limited (ASX: ELD) has reported a significant decline in its annual profit for the financial year ending 30 September 2024, reflecting challenging market conditions and strategic investments.
Instant Summary:
- Revenue decreased by 6% to $3.13 billion.
- Profit after tax fell by 55% to $45.1 million.
- Final dividend of 18 cents per share, down from 23 cents last year.
- Net tangible assets per share decreased from $2.80 to $1.93.
Financial Performance
Elders Limited reported a consolidated profit after tax of $45.1 million, a substantial decrease from the previous year's $100.8 million. The company's revenue also saw a decline of 6%, dropping to $3.13 billion, which reflects the challenging conditions in the agricultural sector and lower livestock prices.
The company's final dividend for 2024 is set at 18 cents per share, a decrease from 23 cents per share in 2023, reflecting the company's reduced profitability. The total dividend for the year stands at 36 cents per share, compared to 46 cents per share last year.
Strategic Investments and Challenges
Elders has continued to invest in its growth and diversification strategy, acquiring several new businesses and expanding its product offerings. However, these investments have come at a cost, contributing to the increase in operating expenses by 14%.
The agricultural sector faced numerous challenges, including volatility in livestock prices and adverse weather conditions, which impacted Elders' financial performance. The company has focused on maintaining its geographic and product diversification to mitigate these challenges.
Outlook and Strategic Focus
Looking forward, Elders remains committed to its Eight Point Plan strategy, which aims to drive sustainable growth and shareholder value. The company plans to continue its focus on cost management and operational efficiency while exploring new growth opportunities.
The significant drop in profit and revenue is likely to weigh on Elders' stock price, as investors react to the company's financial performance. The reduction in dividends may also affect investor sentiment, particularly among income-focused investors.
Investor Reaction:
Analysts have expressed concern over Elders' declining profitability and the impact of challenging market conditions. However, some remain optimistic about the company's strategic investments and long-term growth prospects.
Conclusion:
Investors should closely monitor Elders' strategic initiatives and market conditions in the agricultural sector. The company's ability to navigate these challenges and execute its growth strategy will be crucial for maintaining investor confidence.