Elders (ELD) investor relations material

Executive summary

• Underlying EBIT for HY26 rose 33% to $76.6m, with statutory profit after tax up 17% to $39.5m, driven by strong livestock prices, real estate growth, and Delta Agribusiness earnings.

• Sales revenue increased 32% year-over-year to $1,767.7m, supported by improved seasonal conditions and acquisitions.

• New divisional model fully implemented, enhancing accountability, efficiency, and geographic presence.

• Sale of Killara Feedlot announced and classified as discontinued operation; proceeds expected to reduce net debt and leverage.

• Safety performance improved, with LTIFR at 0.7, outperforming industry benchmarks.

Financial highlights

• Gross margin up 27% to $396.6m; underlying net profit after tax rose 13% to $37.9m; reported net profit after tax up 17% to $39.5m.

• Operating cash flow more than doubled to $67.0m, with cash conversion at 177%.

• Interim dividend of 18c per share, fully franked, maintained year-over-year.

• Net tangible assets per share decreased to $1.63 from $2.81 at September 2025, reflecting acquisition impacts.

• Net debt rose to $901.0m, mainly due to Delta Agribusiness acquisition and higher working capital.

Outlook and guidance

• Second half expected to benefit from full-year Delta Agribusiness earnings, synergy realization, and reduced interest expense post-Killara sale.

• Winter crop production forecast to rise 13% to 68.4m tonnes; livestock prices to remain above long-term averages.

• Leverage forecast to return to target (<2.0x) in FY26, supported by seasonal working capital reduction and Delta Agribusiness synergies.

• Margin and cost efficiency, along with systems modernisation, expected to drive EBIT and EPS growth of 5–10% through cycles.

• Ongoing investment in strategic initiatives and digital tools, including AI agents, to support growth and efficiency.