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Highlights
- Elders (ASX:ELD) reports 67% jump in first-half EBIT despite dry conditions.
- Interim dividend held steady at 18 cents per share, reinforcing its appeal among ASX dividend stocks.
- Livestock markets and cost discipline drive earnings recovery.
Agribusiness leader Elders Ltd (ASX:ELD) has delivered a robust first-half performance, overcoming challenging weather conditions to post a significant earnings uplift. The company maintained its interim dividend at 18 cents per share, showcasing resilience in a volatile climate.
Earnings Surge Despite Weather Challenges
For the six months ending March 31, 2025, Elders (ELD) reported a 67% rise in underlying EBIT to A$64.3 million, up from A$38.4 million in the prior corresponding period. Underlying profit before tax surged 130% to A$49.7 million, while statutory net profit after tax jumped 190% to A$33.6 million. These results highlight the company’s ability to navigate dry spells in South Australia and Victoria, which impacted rural product sales but were offset by strong livestock demand.
Livestock & Cost Control Drive Growth
The earnings rebound was fueled by higher livestock prices and disciplined cost management. Elders (ELD) noted improved performance across most segments, with acquisitions in real estate further bolstering results. CEO Mark Allison acknowledged the dry conditions but emphasized the strength of livestock markets, stating, "Livestock prices and demand are expected to remain strong, with a return to average seasonal conditions likely to support winter crop inputs in the second half."
Dividend Stability & Market Position
The steady 18-cent dividend, payable on June 27, reinforces Elders (ELD) as a reliable player among ASX dividend stocks. With shares last trading at A$6.60, the company remains a notable performer within the S&P/ASX200 index.
As Elders (ELD) heads into the second half, favorable livestock trends and potential seasonal improvements could further strengthen its position in the ASX200 agribusiness sector.
