ELDERS Limited says that despite current dry weather conditions and declining cattle prices, it remains on track to report a net profit after tax for the financial year to September 2018 in the $59-$63 million range.

With that forecast Elders is set to improve on the $58.4m net profit after tax result it posted for the 2017 financial year.

In a statement to the ASX issued today Elders said its retail earnings for the first three quarters of the 2018 financial year have been impacted by unseasonally dry conditions across many parts of Australia, which has reduced chemical input demand.

Easing cattle prices have also impacted Elders Agency earnings. The EYCI has shed more than 100c/kg since July 1, falling from 620.75c to 512c/kg today.

However, consistently strong sheep and wool prices and volumes, and the fact that dry conditions have pushed feedlot utilisation to high levels, have helped the company’s performance.

Elders’ chief executive officer and managing director Mark Allison said the forecast results reflected the Company’s commitment to the strategic Eight Point Plan.

He said the company had resolved to achieve continuous high quality growth, despite difficult trading conditions.

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

The Elders announcement said current expectations are for underlying earnings before interest and tax (EBIT) to be in the range of $70m to $74m (compared to FY17 underlying EBIT $71.0m), and underlying net profit after tax (NPAT) for the 12 months to 30 September 2018 to be in the range of $59m to $63m (compared to FY17 NPAT of $58.4m).

Source: Elders Limited