The Elders Ltd (ASX: ELD) share price is in focus today as the agribusiness outlined resilient financial results for FY25, highlighted by underlying EBIT growth to $143.5 million and continued dividend stability at 36 cents per share.
Image source: Getty Images
What did Elders report?
- Sales revenue grew to $3.2 billion, up 2.2% from FY24
- Gross margin increased to $684.6 million (21.4%)
- Underlying EBIT rose to $143.5 million (up from $128.0 million)
- Underlying net profit after tax climbed to $86.0 million, a 34% improvement
- Dividend held steady at 36.0 cents per share (100% franked)
- Leverage ratio decreased to 1.8 times (excluding AASB 16), with a strong target for FY26
What else do investors need to know?
Elders delivered growth despite challenging seasonal conditions, with dry weather affecting retail product results in South Australia and Victoria. Diversification across Agency, Real Estate, and Feed & Processing supported revenue and margin improvements.
The year saw eight acquisitions completed, including Delta Agribusiness, which enhances Elders' regional footprint. A new divisional structure was implemented to drive sharper focus and operational accountability.
Cash generation was strong, with operating cash flow at $117.9 million and cash conversion exceeding 137%. Management maintained cost growth below inflation, supporting ongoing profitability.
What's next for Elders?
Elders expects its leverage to return to below 2.0 times in FY26 as working capital initiatives and improved seasonal conditions take effect. Management's focus is on extracting synergies from recent acquisitions—particularly Delta Agribusiness—and expanding backward integration to drive margin gains.
The company's strategic 'Eight Point Plan' continues to target 5–10% EBIT and EPS growth through the cycle and a return on capital above 15%. Elders is also investing in technology, operational discipline, and sustainable growth across all business divisions to reinforce its position as Australia's most trusted rural brand.
Elders share price snapshot
Over the past 12 months, the Elders shares have risen 2%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
