Full Year 2025 Elders Ltd Earnings Call Transcript
Key Points
- Elders Ltd (ASX:ELD) reported a 12% increase in EBIT, demonstrating solid financial performance despite challenging seasonal conditions.
- The company's diversified portfolio, including livestock, real estate, and financial services, helped mitigate the impact of dry conditions in key agricultural regions.
- Elders Ltd (ASX:ELD) completed the acquisition of Delta Agribusiness, enhancing its geographic diversification and technical expertise in agtech and precision agriculture.
- The company is optimistic about the FY26 outlook, with a positive seasonal and commodity outlook expected to support growth in livestock, real estate, and financial services.
- Elders Ltd (ASX:ELD) has made significant progress on transformational projects, including the SISMOD project, which is expected to enhance operational efficiency and retail margins.
- The FY25 season was challenging due to drier than average conditions, impacting crop protection sales and client confidence in some regions.
- There was an increase in lost-time injuries, particularly in the livestock area, which is a setback in the company's safety performance.
- Elders Ltd (ASX:ELD) experienced margin compression in crop protection due to competitive pricing pressures and dry conditions.
- The company reported a sizable impairment of goodwill related to certain acquisitions, highlighting challenges in post-earnout staff retention.
- Net debt increased by $20.5 million, with leverage remaining above the target range, although a return to target is expected in FY26.
Thank you very much. and welcome to all for the Elders' full year results presentation for the FY25 financial year. Thank you for joining Paul and myself for the session today. As an overview, the full year results today are solid on a year-to-year basis with EBIT up 12%, transformational projects on track, positive progress on leverage and strong cash generation. Throughout the year, Elders demonstrated solid operational and financial resilience in the face of mixed seasonal conditions.
Our diversified portfolio, through its national geographic footprint and multi-product and service offering, played a key role in mitigating the dry conditions across key agricultural regions and the increased competitive activity in our retail business. Stronger activity in livestock and real estate and high financial discipline also supported the solid result. On the transformational projects front, we've also made good progress on wave two of our SISMOD project with all states rolled out and bedded down by the end of this
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