Home Agents & Agencies Elders share price spikes after announcing $116m net profit for FY17

Elders share price spikes after announcing $116m net profit for FY17

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Adelaide-headquartered agribusiness Elders (ASX:ELD) released its full-year results for the 12 months to 30 September 2017 on Monday.

The share price increased from $5.17 on Monday to $5.80 on Tuesday afternoon, on the news that the company’s net profit after tax was $116 million for the year.

In a press release, Elders noted that net profit more than doubled on the previous year ($51.6 million) and that the results had exceeded the company’s Eight Point Plan FY17 target.

“As we move out of the first three years of the Eight Point Plan and reset to lead into the next growth phase, it is evident that the business is committed to our strategic priorities and a resolve to realise our objective of continuous, solid, high-quality growth which underpinned the company’s achievements in FY17,” said Elders’ Chief Executive Officer (CEO) Mark Allison.

Elders also announced a fully franked dividend of 7.5 cents per share, equating to total dividends of 15 cents per share.

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“It is pleasing that we have been able to declare a final and special dividend, which are Elders’ first shareholder dividends since 2008,” commented Allison.

Elders said that its enhanced retail capability via the acquisition of Ace Oholsson, a New South Wales based horticultural operation, had boosted the results.

Strong cattle and sheep prices had also had an impact, with an $11 million margin improvement.

Margins for the Elders’ real estate business improved by $2.7 million.

Source: Elders/The ASX