Elders shares are on a tear as rising livestock prices create profits

Lisa Maree Williams/Getty Images

Elders posted a 83% rise in profit to $15.86 million for the half year to March as livestock prices improve.

Sales for the agribusiness were up 2% to $645.51 million. The previous loss was $10.2 million.

CEO Mark Allison said Elders benefited from a rise in livestock prices, with the restructure of the company business in China also contributing.

“The diversification of our live export business across new markets and customers has increased flexibility and profitability, resulting in a $1.6 million margin improvement for that business,” Allison said.

Elders is actively looking at opportunities across both domestic and international markets, including Indonesia, Vietnam and China.

“Positive operating conditions for the remainder of the financial year are anticipated, with
encouraging market and seasonal conditions,” Allison said.

Cattle and sheep prices are expected to remain strong and demand for feedlot and live export continues to grow.

Elders shares are up 5.66% to $3.36.

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