ADELAIDE: Agribusiness giant Elders Ltd. (ASX:ELD) posted a robust financial performance for the first half of fiscal 2025, driven by a recovery in the livestock market and growth in its real estate segment, the company reported Monday.
Managing Director and Chief Executive Officer Mark Allison, alongside Chief Financial Officer Paul Rossiter, presented the results in a webcast and teleconference.
Elders recorded a 67% year-over-year increase in underlying earnings before interest and taxes (EBIT) to $64.3 million, boosted by higher livestock prices and increased transaction volumes.
“Despite some seasonal challenges in South Australia and Victoria, the rebound in livestock prices and strong performance in our real estate services have positively impacted our results,” Allison said.
Elders reported a return on capital of 12.7%, up from 11.4%, though below the company’s benchmark due to capital expenditures on transformational projects. Cash conversion stood at 82%, down from 339%, reflecting higher agency debtors at the balance date.
Looking ahead, Elders said it expects stable livestock volumes and continued benefits from acquisitions. The company maintains strong banking covenants with significant leverage headroom, with its leverage ratio forecast to improve toward its target range of 1.5x to 2.0x by fiscal year-end.
Investors can access the full results presentation and register for live commentary through the company’s announcement portal.