ELDERS has recorded a rise in underlying profits after tax of 34 percent to $86 million for the financial year ending September 30, driven by strong livestock prices and growth in the real estate division.
In results announced today, sales revenue grew 2pc to $3.2 billion, while underlying earnings before interest and tax increased 12pc to $143.5M.
Elders’ crop protection segment, the company’s second-largest division, weighed on its results amid intensified competition in drought-hit regions of South Australia and Victoria.
The crop-protection gross margins dropped 9.1pc to $129M, with fertiliser margins dropping 1pc to $46.1M.
This was partly offset by stronger margins in agency services, which rose 22pc to $150.2M, real estate services, up 27.2pc to $105.1M, and feed and processing, which climbed 23.8pc to $21.3M.
Elders chief executive officer and managing director Mark Allison said the company demonstrated strong operational and financial resilience in the face of mixed seasonal conditions.
“Our diversified portfolio, through its national geographic footprint and multi-product and service offering played a key role in mitigating the dry conditions across key agricultural regions and the increased competitive activity in our retail business,” Mr Allison said.
“Stronger activity in livestock and real estate and high financial discipline also supported the solid result.”
Elders managing director and chief executive officer Mark Allison. Photo: Elders
He said FY25 was a “problematic year from a seasonal viewpoint” with drier-than-average conditions and a later start to the winter across parts of southern Australia.
“Rural products has seen some limitation with very dry conditions across southern Australia and Western Australia.”
Possible feedlot sale
Mr Allison confirmed the news, revealed earlier this month, that Elders was considering selling its feed and processing business, which features its Killara Feedlot operation.
Located near Quirindi on the Liverpool Plains of New South Wales, the feedlot has a working capacity of around 22,500 head and an annual turnoff of 65,000 head.
Mr Allison said the feed and processing operation was “different to the others” and had been “highly successful”.
“We have reflected whether feed and processing would do much better and go through the next level under natural ownership, and that’s the reason we are considering divestment of the feed and processing division.
“If the moons align and there is an appropriate shareholder value-creating proposition put before us, we’ll consider it strongly.”
He said the company would entertain a sale only if a compelling offer was made.
“If the exercise comes up with options that are not to enhance our shareholder value, then we’re very happy, and it’s a great business and a great team to be in the Elders group.”
Mr Allison said the proposal comes after a positive year for the operation that ended with “record profits”.
“The record profitability of this division this year is based on a number of the investments we have made historically with feedmills, centre-pivot irrigation, and shading.”
Delta Ag, restructure updates
The start of FY26 has ushered in major shifts at Elders, with a new divisional structure taking effect on October 1 and the company finalising its purchase of Delta Agribusiness on November 3.
Elders chief financial officer Paul Rossiter said the Delta Ag transaction would creating long-lasting benefits for the company.
“The acquisition of Delta Ag represents a significant milestone for Elders increasing points of presence and geographic diversification while enhancing Elders technical expertise in agtech and precision agriculture,” Mr Rossiter said.
“Accelerating synergies from backward integration in crop protection and animal health are key priorities for FY26.”
He said the company would be on the lookout for more strategic acquisitions to enhance future growth prospects.
“Acquisition will remain a growth pillar alongside organic growth, provided acquisition prospects meet our financial and value criteria.”
Mr Allison said the move to a structure of six divisions was a natural step driven by “the fact that each of the areas of the business had largely been run as standalones…through a governing board or management team”.
He said all divisions stood to benefit from the appointment of “very experienced managers” and from tighter focus and accountability.
FY26 outlook
Mr Allison said the company was “very optimistic” about FY26 due to forecast improvements in seasonal conditions and continued growth in commodity prices.
He said Elders will also benefit from a full year of Delta Agribusiness contributions.
“The outlook and fundamentals for livestock remain sound, with prices for sheep and cattle forecast to be supported by strong international demand against a backdrop of tightening supply.
“The combination of the positive seasonal and commodity outlook also provides a great backdrop for continued growth in our real estate and financial services businesses.”
Elders will continue to invest in strategic initiatives, in line with its Eight Point Plan, while maintaining a focus on cost and capital efficiency.
Mr Allison said this would be facilitated by Elders’ newly implemented divisional model effective 1 October 2025, which enables the business to be well positioned for future growth and efficiency across its diversified portfolio.