ASX-LISTED agribusiness Elders has posted a 67-percent jump in earnings to $64.3 million for the six months to March 31, with stronger livestock prices helping to counter the effects of dry conditions in parts of South Australia and western Victoria.

This result comes as the company awaits findings from the Australian Competition and Consumer Commission on its proposed acquisition of Delta Agribusiness, due to be released on Thursday.

The company reported a sharp increase in statutory profit after tax for the half, up 190pc to $33.6M, alongside a modest rise in sales revenue of 5pc to $1.41 billion.

Elders managing director and chief executive officer Mark Allison said the results demonstrated that the agribusiness had recovered from the challenging HY24 period.

“We are really feeling that Elders are on the cusp of a really solid period,” Mr Allison said.

All sectors saw an increase in gross margin, except for the retail products segment that fell 6pc to $116.9M due to a drop in crop protection, which was partially offset by strong sales performance in fertiliser and animal health categories.

Elders chief financial officer Paul Rossiter said the positive moisture outlook in the coming months should provide opportunities for the post-emergent and possibility the cereal fungicide markets.

“Notwithstanding the dry start, the outlook for retail products nationally is considered average with favourable conditions in many cropping regions,” Mr Rossiter said.

“In the winter-crop regions currently under moisture stress, widespread dry sowing brings the possibility of stronger demand for post-emergent crop protection products in the second half.”

Real estate services margin jumped 52pc to $53.9M driven by the acquisition of IPST Holdings, previously known as Knight Frank Tasmania, while financial services increased 10pc to $29.8M, feed and processing services rose 24pc to $11M, and agency services grew 37pc to $76.3M.

Mr Rossiter said the agency services business benefited from the strong livestock result, with significant uplifts in price and volume for both cattle and sheep.

“Livestock volumes have been driven by strong international demand for protein as well as some destocking in drier regions, which may impact volumes in the second half.

“Should this occur a price offset may follow, mitigating the impact on Elders agency services business.”

He said the feed and processing services sector margins were driven by increased cattle throughput, alongside “productivity and efficiency benefits from the new feed mill commissioned in August 2024”.

Capital investment gains

In addition to the mill upgrade at Elders’ Killara feedlot at Quirindi in northern New South Wales, Elders saw benefits from other capital works, such as Elders Wool’s transformational project and the commissioning of a toll formulation facility at Western Australia.

Mr Allison said the half-year marked the first full period of operation for the automated wool facility, which delivered positive results, though these were slightly tempered by fewer bales sold as producers held back in anticipation of a market rebound.

He noted that operations at the WA toll formulation facility commenced in April.

Located at Rockingham, the facility will blend a range of herbicides and insecticides.

“We have done our first batches of trifluralin, so this provides significant supply chain benefits of us with large volume of patent products in Western Australia, which is 30pc of the herbicide market.”

Delta Ag acquisition update

Mr Allison was upbeat on the proposed acquisition of Delta Agribusiness, with the ACCC due to release its findings on Thursday.

The ACCC had delayed reporting its decision on the merger, initially due to be released in March.

He said the sector had “always been a highly competitive market”.

“Most players would have a similar view to us that it is highly competitive and there’s over 1500 branches…around Australia all trying to win business.”

Mr Allison said the company has “continued to actively work with the ACCC team on the Delta-Elders combination”.

He said the findings would “clarity and certainty for the next steps of this transaction”.

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