Elders (ASX:ELD) held its 2024 Annual General Meeting as a hybrid event, revealing key financial and strategic achievements. Despite challenging market conditions in the first half of FY24, Elders demonstrated resilience through its diversified business model. A standout moment was the announcement of its acquisition agreement with Delta Agribusiness, enhancing its geographic and product diversification.
Elders' 2024 AGM highlighted significant strategic initiatives and governance updates. The company reported a 25% decrease in underlying earnings before interest and tax to $128 million, attributed to lower livestock prices and crop protection margins, offset by improved trading later in the year. A major highlight is the acquisition of Delta Agribusiness, expected to enhance geographic diversification and service capabilities across several Australian states. Elders continues its Systems Modernisation project, leveraging Microsoft Dynamics 365 to boost operational efficiency. Governance updates include new non-executive director appointments and ongoing CEO succession planning, with a focus on stability and retention. The company's community and sustainability efforts are underscored by initiatives like the Elders Community Giving Project and collaboration with SmartSat CRC for sustainable agriculture. Looking ahead, Elders aims to regain its growth trajectory in FY25 through supply chain optimization and sustained community impact.
Despite facing difficult market conditions in the first half of FY24, Elders achieved resilient financial results, largely due to its diversified business approach. The acquisition of Delta Agribusiness is expected to provide meaningful value to shareholders, pending ACCC approval.