Investors punished Elders in morning trade, even as the agribusiness and real estate group posted a 17% lift in statutory profit to $39.5 million for the half year. The stock dropped 19.4% to $5.80 by 10:40am AEST on 18 May, extending its 12‑month share price decline to 12%.
Elders booked underlying sales revenue of $1.77 billion for the six months to 31 March, up 32% on the prior comparable period. Underlying earnings before interest and tax increased 33% to $76.6 million, supported by better seasonal conditions and contributions from newly acquired Delta Agribusiness. The company maintained its interim dividend at 18 cents per share but lifted it to 100% franked from 50% franked a year earlier.
Delta Agribusiness, purchased for $475 million in late 2025, is now a key driver in the group’s first half performance. Management reports strong progress in integrating Delta Agribusiness, saying synergy programmes are being accelerated across the enlarged network.
Initial financial benefits from the merger are expected to be weighted towards the second half of FY26, with full synergy realisation targeted over a three year period. Elders also outlines how its back to back fertiliser purchasing model and diversified supplier base help it manage potential supply disruptions.
Rising diesel costs still weigh on the operating outlook, with fuel prices singled out as an ongoing pressure point for the broader agricultural industry. Investors are focusing less on profit growth and more on the durability of margins in a volatile cost environment.
The company is positioned to leverage its expanded footprint and seasonal recovery, but elevated diesel prices and input disruptions could cap optimism. Execution of the Delta Agribusiness integration and management of supply chains will be central to whether earnings momentum carries into the next phases of FY26 and beyond.
