Elders profit surges
AGRIBUSINESS Elders has paid shareholders a dividend for the first time since 2008 as the company more than doubled its reported net profit for fiscal 2017.
Elders’ net profit for the year ended September 30 jumped 125 per cent to $116 million as the company boosted its profits across its product range, made strategic acquisitions and benefited from the reversal of a non-cash impairment on the Elders brand name.
The company’s underlying profit lifted by $16.5 million or 40 per cent, to $57.7 million.
The company paid a final dividend of 7.5 cents per share plus a special dividend, also at 7.5 cents per share.
Elders’ chief executive Mark Allison said the profit results and dividends reflected good progress under the company’s improvement program, which has been running for three years.
Mr Allison said normal summer cropping conditions and geographical expansion, including the acquisition of NSW-based horticultural business Ace Ohlsson, had boosted Elders’ retail business.
Cattle and sheep prices were strong, which helped boost margins.