Why Elders' (ASX:ELD) shares tumbled 20% today

November 14, 2022 03:47 PM AEDT | By Bhawna Gupta

Why Elders' (ASX:ELD) shares tumbled 20% today — Image source: © Branex | Megapixl.com Highlights

Why are Elders' shares down today?

Elders shared its full-year results on ASX today.

Following the announcement, the investors have been selling the company's shares. Till 3.05 PM AEDT, around 5.05 million shares have traded on ASX today.

A look at Elders' financial report card

Elders recorded an overall profit before tax of AU$223.5 million, an increase of 42% from FY21. According to the company’s ASX statement, the recognition of income tax expense as of 1 October 2021 affected the preceding year's comparability, resulting in a statutory profit after tax of AU$162.9 million.

Elders' return on capital (ROC) of 26.2%, which was up 3.7% from FY21 and far beyond the company's 15% goal stated in its Eight Point Plan strategy, was a noteworthy achievement.

The total dividends declared for the year amount to 56 cents partially franked (30%), up from 42 cents partially franked (20%) in FY21. The final payout is 28 cents per ordinary share.

The Rural Products division performed better than anticipated, with an AU$383.1 million gross margin, a 35% increase from FY21. In addition to leveraging the advantages of favourable seasonal conditions, this increase was driven by the continuous emphasis on the backward integration strategy.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.