Agribusiness Elders has delivered a profit for the first time in six years.
The 175-year-old Australian company announced a $3 million statutory profit, up from a $505.3 million loss, and an $8.8 million underlying net profit.
Net debt has been reduced to $137.6 million, down from $255.2 million last year.
CEO Mark Allison says the company’s improved performance is the result of all product and geographic segments contributing to earnings.
The agency services business was the largest contributor to profit with a 13% improvement on the previous year due to the recovery of livestock prices.
Strong demand from Asian markets contributed to the good performance in the Live Export Services business with a $6.2 million underlying improvement.
Mr Allison said the repayment of Elders’ term debt will allow the company to focus on directing future cash flows back into reinvigorating and strengthening its client offering.
“2014 has been about establishing a foundation to create value for stakeholders and now 2015 will be about embedding the initiatives that create that value,” he says.
The company is on target to hit $60 million earnings and a 20% return on capital by 2017.