Elders Limited (ASX: ELD)Share Price and News
About Elders
Elders traces its agricultural roots back to the 19th century and was formally listed on the ASX in June 1981 (ticker: ELD). Today, the company employs approximately 2,900 people and operates from its Adelaide headquarters, supported by a national network of 242 company-owned rural service outlets and around 380 independent wholesale partner stores.
Its diversified business comprises three main areas: the retail delivery of agricultural supplies and advisory services, wholesale distribution to independent farm retailers, and feed and processing operations, including the sizable Killara feedlot in NSW.
In FY24, Elders recorded total sales of around A$3.13 b, with retail sales making up the bulk, and another A$835 m generated from its newly acquired Delta Agribusiness. These figures highlight the scale and national scope of Elders' operations, which now include specialised arms such as real estate, insurance, agronomy, livestock and wool brokerage, digital platforms, and advisory services.
Elders Company History
Elders has evolved from a regional stock and station agency into a diversified agribusiness leader. In May 2014, CEO Mark Allison embarked on an eight-point restructuring plan that steered the company back to its agricultural core. Subsequent acquisitions included Titan Ag in 2018 and AIRR in 2019, both aimed at bolstering its rural retail footprint.
The rebranding in 2009 to Elders signalled a conscious return to its heritage — a move validated by the reinstatement of dividends in late 2017 after a nine-year pause. The most recent milestone, its A$475 m acquisition of Delta Agribusiness in November 2024, marks a major strategic shift.
Delta operates 68 rural supply sites and serves 40 independent wholesale clients across several states, generating A$835 m in revenue and A$53 m in EBITDA for the year to June 2024. By integrating Delta, Elders aims to deepen customer relationships, improve supply efficiency, and enhance agronomy and digital advisory services.
Future Outlook of Elders (ASX: ELD)
Elders’ FY24 financials reflect a period of adjustment, with total revenue falling six per cent to A$3.13 b and net profit after tax dropping by 56 per cent to A$45 m. Underlying EBIT also declined, but the board flagged a stronger second half as livestock prices stabilised and rural product margins began to recover.
The half-year results for 1H FY25 confirmed this momentum: revenue rose to A$1.41 b (up 5%) and EBIT surged 67% to A$64.3 m. Importantly, return on capital reached 12.7%, while liabilities fell by 4.6%, reflecting tighter cost control. Looking ahead, Elders is accelerating its systems modernisation under the SMod initiative to lift operational efficiency and margins.
The company has also announced plans to deliver annual run-rate EBITDA synergies of around A$12 m following the Delta Agribusiness acquisition, funded via a capital raising and loan facility structure. Management has set a leverage covenant of approximately 2x and is progressing with debt reduction while maintaining a franked dividend yield near 6%. Analyst commentary from Citi, AInvest, and others rates Elders as undervalued with a balanced risk–reward profile.
Nonetheless, in addition to the execution risks tied to acquisitions and integration, Elders remains exposed to unpredictable weather patterns, commodity price fluctuations, and rising input costs. The ACCC is also reviewing the Delta deal, citing competition concerns in key rural markets, which may result in required divestments.
These factors could weigh on short-term performance. However, if Elders normalises earnings growth, it is well-positioned to deliver both income and capital returns to investors.
Is Elders a Good Stock to Buy?
Elders currently trades at approximately 14–15× earnings and offers an attractive dividend yield of 5.8%, appealing to income-focused investors. Its payout policy targets a 40–60% range, and recent half-year distributions align with this approach, offering franking credits that further enhance returns.
Analysts from Citi, Macquarie, AInvest, and others remain largely optimistic. Citi described the Delta acquisition as accretive and 'highly complementary,' while AInvest flagged forestry and payout discipline as undervalued by the market. If the company successfully delivers operational improvements from the SMod initiative and integrates acquisitions smoothly, annual EPS growth of 25–30% appears achievable.
However, there are risks. Maintaining tight margins, servicing near-term debt, and resolving competition concerns with the ACCC are critical. There are also executive succession issues to consider, including shareholder protests over remuneration in December 2024.
If Elders can manage these challenges and follow through on its strategic initiatives, it offers a balanced mix of defensive income and moderate capital growth, ideal for investors comfortable with the cyclical nature of agriculture.
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Frequently Asked Questions
Elders pays two semi-annual dividends of 18 cents each, totalling 36 cents for FY24, yielding around 5.8% at the current share price. The company targets a payout ratio of 40–60%, and franking credits further boost investor returns.