Elders growth strategy drives 40 percent net profit increase


Beef Central (AU)



Elders has announced a statutory profit after tax of $149.8 million in its full year results for the 2020/2021 financial year (FY21).


Key results


– Sales revenue up 22 percent to $2,548 million


– Gross margin up 21 percent to $529.5 million


– Costs up 15 percent to $362.9 million


– Underlying EBIT up 38 percent to $166.5 million Underlying EBIT


– Underlying earnings per share (EPS) up 38 percent to 96.7c


– Net profit after tax (NPAT) up 40 percent to $151.1 million


– Statutory profit after tax up 22 percent to $149.8 million


– Return on capital (ROC) up 3.6p percent to of 22.5 percent


– Final dividend of 22 cents per ordinary share


– Total dividends declared for the year to 42 cents partially franked (20 percent), compared to 22 cents (fully franked) in FY20.


Performance of key business areas


Financial performance improved across all geographic and product areas in FY21.


The exception was the Feed and Processing business (Killara Feedlot and Elders Fine Foods) which was challenged by higher feeder cattle prices.


Rural Products performed strongly, with gross margin of $284.8 million, up 30 percent on FY20.


Rural Products growth was driven by the successful integration of the FY20 AIRR acquisition and other “bolt on” acquisitions. Added to this were margin improvement initiatives and the backward integration strategy amidst favourable market conditions.


The first full year of AIRR integration delivered $61.2 million in Wholesale Products margin.


The Rural Products backward integration strategy through the Titan AG business contributed to an increase in gross margin in the Rural Products business from 13.4pc to 14.1pc.


Agency services contribution grew due to strong livestock prices, despite reduced volumes from limited domestic supply, with gross margin of $140.0 million, up 10 percent on FY20.


Real Estate Services gross margin was $50.7 million, up 33 percent on FY20. This growth reflected ongoing network expansion and very high demand for both residential and farmland assets.


Third “Eight Point Plan” underway ...


Outlook ...