Elders Limited reported a robust FY25 with a 12% rise in underlying EBIT to $143.5 million and declared a fully franked final dividend of 18 cents per share. The agribusiness is optimistic about FY26, buoyed by strategic acquisitions and a new divisional model.
- Underlying EBIT up 12% to $143.5 million in FY25
- Final dividend of 18.0 cents per share, 100% franked
- Safety performance improved with halved injury frequency rate
- Acquisition of Delta Agribusiness expands Rural Products portfolio
- Optimistic FY26 outlook supported by seasonal recovery and new retail system
Strong Financial Performance Amid Challenging Conditions
Elders Limited has demonstrated notable resilience in its FY25 results, posting an underlying EBIT of $143.5 million, a 12% increase from the previous year. This performance comes despite mixed seasonal conditions, particularly dry spells in South Australia and western Victoria, which impacted some product margins. The company’s diversified operations across livestock, real estate, and financial services helped offset these challenges, underpinning a solid overall result.
Sales revenue rose modestly to $3.2 billion, reflecting steady demand across Elders’ broad portfolio. The company also maintained an underlying return on capital of 11.3%, consistent with FY24, signaling disciplined capital management amid ongoing investment in growth initiatives.
Safety and Operational Improvements
Safety remains a priority for Elders, with the company halving its Total Recordable Injury Frequency Rate from 9.0 to 4.5 over the year. The reduction in lost time injuries to six incidents highlights Elders’ commitment to workplace wellbeing, an important factor for sustaining operational efficiency and employee morale.
Margin Pressures and Segment Highlights
While Retail Products experienced margin declines due to competitive pressures and dry conditions, particularly in crop protection, gains in fertiliser and animal health partially offset these impacts. Wholesale Products margins remained stable despite a slight dip in percentage terms, influenced by product mix and regional challenges.
Agency Services saw strong margin growth driven by robust livestock prices and volumes, reflecting increased destocking in drought-affected areas. Wool margins improved thanks to Elders Wool’s enhanced earnings per bale, although total bales sold declined amid subdued global demand.
Real Estate Services benefited from the full-year contribution of the IPST Holdings acquisition and organic growth supported by improving seasonal conditions and commodity prices. Financial Services margins also rose, aided by Elders Finance’s broker model expansion and the conclusion of the Rural Bank relationship agreement.
Strategic Moves and FY26 Outlook
Elders’ acquisition of Delta Agribusiness marks a significant expansion of its Rural Products business, expected to contribute positively in FY26. The company also implemented a new divisional model from October 2025, designed to enhance operational efficiency and position Elders for sustainable growth.
Looking ahead, Elders is optimistic about FY26, anticipating a recovery from dry conditions in key regions and benefits from a new retail system rollout. Livestock prices are forecast to remain strong due to international demand and tightening supply, while the regional residential property market is expected to stay buoyant amid stabilised interest rates.
CEO Mark Allison highlighted Elders’ enduring legacy and strategic focus, emphasizing the company’s readiness to deliver steady performance and growth alongside its clients and communities.
Bottom Line?
Elders’ FY25 results set a solid foundation, but the integration of Delta Agribusiness and margin recovery will be key to sustaining momentum in FY26.
Questions in the middle?
- How will Elders manage margin pressures in Retail Products amid ongoing competition?
- What synergies and challenges will arise from integrating Delta Agribusiness?
- Can Elders maintain livestock and real estate growth if seasonal conditions remain volatile?