This article is from the Australian Property Journal archive
ELDERS reported a 70% fall in profit in the first half as below-average seasonal conditions hit client sentiment, while the agribusiness services firm is expecting conditions in its real estate division to improve over the rest of FY24.
Underlying profit before tax fell to $21.6 million compared to the prior corresponding period, and underlying profit after tax to $14.4 million.
Sales revenue was down 19% to $1.34 billion.
“Elders’ HY24 performance was influenced by challenging seasonal conditions, cautious client sentiment, softening crop input prices and lower livestock prices,” it said.
Trading in the second quarter improved, compared to the first quarter, it said, following an uplift in client sentiment, supported by un-forecast, widespread rainfall across many regions in eastern and southern Australia.
“Livestock prices recovered strongly throughout the half in line with improved seasonal conditions, which have also assisted the outlook for the 2024 winter crop and Elders’ second half.”
Real estate services margin grew predominantly due to improved residential turnover and property management earn, which benefited from acquisitions and ongoing rent roll growth.
Elders said the real estate division will see softer broadacre market conditions improve in line with the recent increase in livestock prices.
“Residential markets are forecast to remain robust assuming interest rates remain stable. Property management is expected to remain strong, supported by recent acquisitions.
“Elders expects better trading conditions during the second half of FY24, as client sentiment continues to improve following a return to average seasonal conditions. This improved sentiment is forecast to positively impact the outlook for winter crop and livestock production,” said Elders’ managing director and CEO, Mark Allison.
Elders declared a total dividend of 18.0c per share, 50% franked, down from 23.0c per share, 30% franked a year ago.
