The Elders Ltd (ASX: ELD) share price is in focus after the company reported underlying EBIT of $76.6 million and a fully franked interim dividend of 18 cents per share for the half year to 31 March 2026.
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What did Elders report?
- Underlying sales revenue: $1,767.7 million, up 32% year-on-year
- Underlying EBIT: $76.6 million, up 33%
- Statutory profit after tax: $39.5 million, up 17%
- Interim dividend: 18 cents per share, fully franked (unchanged)
- Operating cash flow: $67.0 million, up 115%
- Underlying return on capital: 10.7% (down from 12.6%)
What else do investors need to know?
Elders fully implemented its new divisional model during the half, introducing standalone divisions to improve accountability and efficiency. The company also completed the third wave of its Systems Modernisation program, with the final stage design finished.
A key development was the announced sale of the Killara Feedlot, which is now classified as a discontinued operation. Financial contributions from Killara have been excluded from underlying earnings for both current and prior periods to ensure comparability.
Synergy benefits from the recent Delta Agribusiness acquisition are progressing well, with the bulk of financial gains expected in the latter half of FY26 and beyond. Elders continues to navigate industry challenges, including elevated diesel prices and fertiliser supply disruptions, leveraging its diversified supplier base and procurement strategies.
What's next for Elders?
Elders expects stronger metrics in the second half as earnings from Delta Agribusiness build and proceeds from the Killara Feedlot sale help reduce net debt and interest expense. Management flagged continued focus on operational improvement through its new divisional structure, the realisation of further Systems Modernisation benefits, and ongoing investment in digital tools such as AI agents.
While diesel costs remain a watchpoint for the cost base, Elders is confident its diversified approach leaves it well-placed to navigate industry challenges and pursue further growth opportunities, particularly as integration of recent acquisitions continues.
Elders share price snapshot
Over the past 12 months, Elders shares have risen 10%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
