Elders Limited today posted a 35% rise to $51.6 million in its full year after tax profit as the boom in the cattle industry flows through to the agribusiness.
Revenue was up 9% to $1.64 billion.
CEO Mark Allison says high cattle prices drove higher livestock earnings and also real estate sales demand for big cattle properties.
This improved the underlying profit by $5.2 million for its agency services and another $1.7 million for real estate.
Australia’s largest beef business, S Kidman and Co, looks like it will be bought by billionaire mining magnate Gina Rinehart for $386.5 million.
The business controls 101,000 square kilometres in three states and the Northern Territory, or about 2.6% of Australia’s agricultural land.
In September Elders announced a managed exit from the live export business.
This meant an operating loss of $8.9 million for the live export business. There are also restructuring and exit costs of $6 million.
“Now, more than ever, we are focused on efficiency and growth, and ensuring Elders is positioned as Australia’s leading agribusiness,” says Allison.
“As a result, we have expanded our presence in Tasmania, successfully integrated several acquisitions across real estate, agency, retail, and financial services and we have launched a new Elders Grain platform.
“Clear opportunities exist for us to grow our digital and technical services offering, adding further value and productivity for our stakeholders.”