Elders shares are surging after a dip in profits

Lisa Maree Williams/Getty Images
  • Elders full year statutory profit $71.57 million, down 38%.
  • Underlying net profit after tax $63.7 million, up 9%.
  • Fully franked final dividend of 9 cents a share.

Shares in Elders jumped after the agribusiness posted a 38% fall in full year statutory profit to $71.57 million.

The result was dragged down by brand name impairment reversals of $38.3 million.

Underlying net profit improved by $5.3 million to $63.7 million.

A short time ago, Elders shares were up by almost 10% to $8.15.

CEO Mark Allison says the overall retail business posted a $14.5 million margin improvement, contributed by acquisition growth in horticulture and organic growth in Southern Australia.

The company’s return on capital at 24.2% for the year is above the 20% target, with a strong performance in livestock and incremental improvement year on year in retail.

“Looking ahead to 2020 and beyond, we will continue to demonstrate our strength in portfolio management, geographical segmenting, our core products, innovation, our commitment to Australian agribusiness and our clients,” says Allison.

The company announced a fully franked final divided of nine cents a share.

The 2018 numbers:

Elders

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