Full Year 2024 Elders Ltd Earnings Call for Retail Investors Transcript
Key Points
- Elders Ltd (EDESY) achieved a strong second half performance, marking the biggest second half in the company's history.
- The company successfully executed 13 bolt-on acquisitions, contributing an annualized EBIT of $14 million.
- Elders Ltd (EDESY) is on track with its backward integration strategy, achieving 58% of the addressable market on a revenue basis.
- The acquisition of Delta Ag aligns with Elders' growth strategy, adding geographical diversification and significant IP and expertise.
- The systems modernization project is progressing well, with technical go-live achieved for Wave 2, promising future benefits.
- Elders Ltd (EDESY) reported a decline in return on capital to 11.3%, below the company's hurdle rate of 15%.
- The company's leverage came in at 3.1 times, exceeding its target range of 1.5 to 2 times.
- Competitive pressures in Western and Southern Australia impacted margins, contributing to a lower-than-expected EBIT.
- The first quarter of FY24 was problematic, leading to a significant impact on leverage and return on capital.
- The transformation projects incurred upfront capital expenditure without delivering significant earnings in FY24.
Thank you for standing by, and welcome to the Elders Limited FY24 results retail 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, everyone, to the retail investor fireside chat that we're conducting this afternoon. So with me here today is Paul Rossiter, our CFO. And we also have Sarah Post, who will be conducting an interview with us as -- in the format of the fireside chat on a number of questions and common questions that have come up over the last two days of investor meetings and analyst meetings. So what we'll do, the process will be -- we'll run through the questions, and then we'll open up to any questions from the floor at the end of the session. So Sarah, over to you.
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