Agribusiness group Elders has announced a positive outlook for sheep and cattle prices, reporting a 12 per cent increase in net profit to $50.3 million for the year ending September 30. The company maintained its dividend, declaring a final payout of 18¢ per share. Revenue climbed 2 per cent to $3.2 billion, while underlying EBIT also rose by 12 per cent to reach $143.5 million. Elders is a major provider of farm supplies, crop chemicals and fertilisers to the rural sector, offering a range of products and services to agricultural businesses. It operates a network of branches across Australia, providing essential support to farmers and rural communities.
Chief executive Mark Allison noted that the company’s livestock and real estate divisions successfully offset the adverse effects of drought conditions in certain areas of southern Australia. He emphasised Elders’ focused growth strategy, highlighted by the $475 million acquisition of Delta Agribusiness, which was completed in early October following an extensive review by the Australian Competition and Consumer Commission. This acquisition is expected to significantly strengthen Elders’ market position and expand its service offerings to rural clients.
The competition regulator’s approval of the Delta Agribusiness acquisition was contingent upon Elders divesting six of Delta’s Western Australian outlets. Elders, holding the position of the second-largest player in the farm supplies market, acquired Delta, which was the third-largest. This strategic move is poised to enhance Elders’ capabilities and broaden its reach within the agricultural sector, further solidifying its commitment to supporting Australian farmers and rural communities.
