Elders Limited (ASX: $ELD) has released a trading update for the financial year ending 30 September 2024 (FY24). The company reported that the first half trading for FY24 was significantly below expectations due to various factors impacting client sentiment and sales revenue. However, trading recovered in January and February 2024, exceeding the prior year comparison, largely due to improved client sentiment and significant improvement in sheep and cattle prices. The outlook for the FY24 winter crop in most regions is improved with favourable soil moisture profiles across many winter cropping areas in the Eastern and Southern states. Elders expects the underlying EBIT to be between $120 million and $140 million for full year FY24.
The first half of FY24 presented challenges for Elders, with subdued client sentiment and lower crop protection prices impacting our performance. However, we are pleased to see a recovery in trading in January and February, driven by improved client sentiment and better livestock prices. Looking ahead, we anticipate an improved winter crop outlook in most regions, which is encouraging. We are focused on achieving our forecasted underlying EBIT of $120-140 million for FY24 and remain committed to our target cash conversion and leverage goals. While we acknowledge the potential variables outside of our control, we are dedicated to navigating these challenges and delivering value to our stakeholders.
Elders Limited (ASX: $ELD) reported a challenging first half of FY24, impacted by subdued client sentiment and lower crop protection prices. However, the company experienced a recovery in trading in January and February 2024, driven by improved client sentiment and better livestock prices. The outlook for the FY24 winter crop in most regions is positive, with favourable soil moisture profiles across many winter cropping areas in the Eastern and Southern states. Elders expects the underlying EBIT to be between $120 million and $140 million for full year FY24 and aims to achieve its target cash conversion and leverage goals. The company acknowledges potential variables outside of its control but remains dedicated to navigating these challenges and delivering value to its stakeholders.