Full Year 2024 Elders Ltd Earnings Call Transcript
Key Points
- Elders Ltd (EDESY) demonstrated resilience in a challenging market, achieving a full-year EBIT of $128 million, which is near the midpoint of their guidance.
- The company maintained a strong cash flow and declared a stable dividend of $0.18 per share.
- Elders Ltd (EDESY) successfully executed 13 acquisitions in FY24, contributing to a diversified product and service portfolio.
- The Delta Agri acquisition is expected to be EPS accretive pre-synergies, enhancing Elders' geographical diversification and technical expertise.
- The company has made significant progress in sustainability initiatives, including centralized waste control and solar upgrades, aligning with their climate targets.
- Elders Ltd (EDESY) faced a difficult first quarter in FY24, impacting their overall financial performance and return on capital.
- The company's gross margin was negatively affected by competitive pressures and lower crop protection prices, particularly in the first half of the year.
- There was an increase in debtors due to a delayed winter crop and higher demand for seasonal finance, impacting working capital.
- The company's return on capital decreased from 16% to 11.3% in FY24, falling below their target of 15%.
- The acquisition of Delta Agri is subject to ACCC approval, which could pose risks if there are concerns about market concentration.
Thank you for standing by. Welcome to the Elders Limited Full Year '24 Results Investor Briefing. (Operator Instructions)
I would now like to hand the conference over to Mr. Mark Allison, CEO and Managing Director. Please go ahead.
Thank you very much, and welcome to all for the Elders full year results presentation for the FY24 year. Thank you for joining Paul and myself for this session today.
As you will be aware from our two ASX announcements this morning and our trading halt, we'll approach today's briefing in two distinct parts. Firstly, Paul and I will provide a review of the FY24 results. We will then present our acquisition opportunity and the strategic alignment and benefits of this for our shareholders, communities and people. And then finally, we'll have an extended period for questions on both areas at the end. So we will move through relatively quickly to ensure that there is time for questions.
So starting off with our annual
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