The publicly traded company, which reported a 10-year high net profit of $149.8 million for its fiscal year 2021 in November, is on track to easily surpass last year’s strong performance and will pay shareholders an interim dividend of 28 cents per share. .
Elders’ stock price is up about 10 percent since announcing its results yesterday to $15.03 at 11 a.m., its highest level since 2009.
In its half-year results for the six months to March 31, 2022, Elders outperformed the first half of 2021 across all product areas and geographies.
Total half of the publicly traded company’s sales were $1,514 billion, up 38 percent from the same period last year.
This was led by Rural Products, with sales up $312.9 million and wholesale product sales up $46.7 million.
“The growth of the Rural Products business was driven by strong demand for fertilizers and crop protection products due to favorable seasonal conditions in key growing regions,” the company said in its statement of results.
Agency Services improved gross margin to $82.2 million, largely driven by high livestock prices, which more than offset volume declines due to favorable seasonal conditions.
Real Estate Services contributed a gross margin of $33.3 million, a 38 percent increase with significant transaction growth in farmland agencies, real estate brokerage and property management.
Overall growth of 80 percent in earnings before interest and tax (EBIT) for half has prompted the Adelaide-based company to raise its full-year underlying EBIT forecast to 30 percent to 40 percent above its previous fiscal year. year, that 166.5 million dollars.
Managing director and chief executive officer Mark Allison said Elders expected to benefit from a positive winter crop outlook with adequate soil moisture for better production in the second half.
“The strong first half performance continued into April and we now expect to deliver full year 2022 Underlying EBIT in the range of 30 percent to 40 percent above full year 2021 Underlying EBIT,” he said.
“Prices for cattle and sheep are expected to remain high, benefiting the Agency’s operations and compensating for the expected lower volumes due to feed availability and livestock replenishment.
“Current pending settlement volumes and buyer demand indicate that Real Estate Services will continue to outperform last year.
“The outlook for the remainder of 2022 is bright for Elders, its shareholders and its customers.”
Elsewhere, founded in 1839, has a market cap of over $2.3 billion and ranked 10th in InDaily’s 2021 South Australian Business Index of the state’s 100 best companies.
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