Incitec Pivot saw a huge boost from the rebound in weather and growing conditions in Australia in the year to September (see separate story) and so did Elders Ltd, which yesterday revealed another solid result for the 2020-21 financial year.
The agribusiness giant posted a 50% jump in underling after tax profit to $151.1 million for the 2020-21 year from $107.7 million the year before.
Statutory after-tax profit rose 22% to nearly $150 million after revenue also rose 22% to more than $2.54 billion.
The ASX-listed rural services company also declared a final dividend of 22 cents per share, partially franked which took the full year payout to 44 cents a share with the interim of 20 cents paid earlier this year.
That was sharply higher than the 22 cents a share paid last year when the company’s recovery from the big drought and poor growing conditions started in the September half of 2020.
With the exception of the Feed and Processing business which was challenged by higher feeder cattle prices, Elders did well, especially its rural products and wholesale divisions.
Elders’ Rural Products business drove the 2020-21 improvement, with a gross profit of $284.8 million up 30% from the 2020 financial year. The company saw a strong recovery of its wool business with gross margin of $15.9 million, up 44%
Elders said its agency services “outperformed despite lower volumes”, contributing gross margin of $140.0 million, up 10%. Real Estate turnover of $3.130 billion was up 39% as the housing boom was joined by improvement in rural and regional property prices.
The rural rebound saw acquisitions, such as that of the Australian Independent Rural Retailers (AIRR) drove growth: the first full year of AIRR’s inclusion contributed $61.2 million to the Wholesale Products business margin.
A bullish Elders CEO Mark Allison said in Monday’s statement that “It is an exciting time to be in agriculture as our industry continues to respond to the enormous increase in global demand for quality and safe Australian agricultural produce,” said Mr Allison.
“The outlook is extremely positive and we intend to be there to support our customers to increase their productivity sustainably and grow their enterprises.”
Elders shares eased 0.7% to $12.01.
