ELDERS Limited says it expects to record a similar net profit after tax to last year in the vicinity of $61-$64 million for the 12 months to 30 September 2019, despite the challenges of widespread drought and flooding in northern Queensland.

In an update to the Australian Stock Exchange the agricultural services provider said its projections are based on recently released forecasts from the Australian Bureau of Meteorology and the Australian Bureau of Agricultural and Resource Economics and Science (ABARES).

Elders is forecasting underlying earnings before interest and tax (EBIT) for the 12 months to 30 September 2019 in the range of $72m to $75m (compared to FY18 underlying EBIT of $74.6m).

Underlying net profit after tax (NPAT) for the 12 months to 30 September 2019 is expected to be in the range of $61m to $64m (compared to FY18 NPAT of $63.7m).

However it does expects the 2019 first half result for the six months to 31 March 2019 to be “materially lower” than the prior corresponding period (pcp) EBIT of $45.7m.

This was due to lower wool volumes and increases in costs associated with footprint growth and continued Eight Point Plan investment.

Retail earnings for the first half were expected to be consistent with the prior corresponding period, with reduced summer cropping offset by growth initiatives. These included “backward integration” through Titan.

“The forecast results reflect the Company’s commitment to the Eight Point Plan and the resolve to achieve continuous high quality growth, despite the very difficult trading conditions being experienced by the Australian agriculture sector, including many of Elders’ clients,” Elders’ Chief Executive Officer and Managing Director, Mark Allison said.

“We believe Elders remains well placed to achieve our target of 5-10pc EBIT growth, from 2017, through the agricultural cycle to 2020”.