Elders Limited Announces FY24 Full-Year Results with Resilient Earnings
ELD (ELD) Share Update November 2024 Sunday 17th
Elders Reports Resilient FY24 Earnings Amid Market Challenges
Australian agribusiness Elders Limited (ASX:ELD) has released its full-year financial results for FY24, showcasing resilience amidst challenging market conditions.
Instant Summary:
- FY24 underlying EBIT of $128 million, down 25% from FY23.
- Final dividend declared at 18 cents per share, 70% franked.
- Sales revenue decreased by 6% to $3,131.3 million.
- Improved safety metrics with reduced lost time injuries.
- Positive outlook for FY25 with expected stability in livestock markets.
Financial Performance
Elders Limited reported an underlying earnings before interest and tax (EBIT) of $128 million for the fiscal year 2024, a 25% decrease from the previous year's $170.8 million. This decline was primarily due to low livestock prices and subdued client sentiment in the first quarter. However, the company managed to offset some of these challenges with improved trading in the second half of the year.
Sales revenue for the year was $3,131.3 million, a 6% decrease from FY23's $3,321.4 million. Despite this, Elders declared a final dividend of 18 cents per share, 70% franked, reflecting its commitment to returning value to shareholders.
Operational Highlights
Elders' diverse product and service offerings helped mitigate the impact of market headwinds. The Retail Products division saw growth in animal health sales, although this was partially offset by weaker fertiliser and crop protection sales. The Wholesale Products division benefited from a recovery in livestock prices, contributing to margin growth.
Agency Services experienced margin improvements driven by increased cattle and sheep prices, while the Real Estate Services division grew due to strategic acquisitions and improved market conditions. Financial Services also saw growth, with increased uptake of livestock funding offerings.
Safety and Strategic Initiatives
Safety remained a priority for Elders, with a reduction in lost time injuries and a lower Total Recordable Injuries Frequency Rate. The company continued to invest in its strategic initiatives, guided by its Fourth Eight Point Plan, which focuses on growth and financial discipline.
Looking ahead to FY25, Elders is optimistic about the summer crop season and expects stable livestock markets to provide a positive backdrop for continued growth. The company plans to leverage its acquisitions and strategic projects to enhance operational efficiency and shareholder value.
The announcement of resilient earnings despite challenging market conditions is likely to have a stabilizing effect on Elders' stock. The declared dividend and positive outlook for FY25 may boost investor confidence. However, the decline in year-on-year financial metrics could temper enthusiasm.
Investor Reaction:
Analysts are likely to view Elders' results as a testament to its strategic resilience and operational diversity. The company's ability to maintain dividends and project a positive outlook for FY25 could be seen as encouraging signs for investors.
Conclusion:
Investors should consider Elders' strategic initiatives and market positioning as key factors for future growth. Monitoring developments in livestock and crop markets will be crucial for assessing the company's performance in FY25.