Lower wool trading volumes due to drought, combined with continued business investment have cut the underlying net profit after tax of the listed agribusiness Elders by 34 per cent to $26.4 million for the first half.
Elders’ underlying earnings before interest and tax (EBIT) was down 27 per cent to $33.5 million for the half, with chief executive Mark Allison saying Australian agriculture had experienced «very difficult conditions» in the half, with many of Elders» clients experiencing these challenges.
The historic agribusiness, which is headquartered in Adelaide, said it was on track for a full year net profit after tax of $61-65 million, which is in line with last year’s NPAT of $63.7 million. And it said it was on track for full year underlying EBIT of $72-75 million, compared to last year’s result of $74.6 million.
Mr Allison said that while reduced summer crop production and farm plantings were down, Elders’ results were aided by its geographic diversification.