Elders: Can the controllables outweigh the uncontrollables?

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

14 November 2023, 7:30 AM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

• Elders (ASX:ELD) reported a better than feared FY23 result which was at the mid-point of its guidance range. Strong operating cashflow was the highlight.
• FY24 EBIT will likely fall again on the pcp with ELD needing to cycling a full period of weaker ag chem, fertiliser and livestock prices as well as potentially weaker cropping conditions given El Nino. This will partly be offset by bolt-on acquisitions backward integration and some benefits from its supply chain optimisation.
• Given the outlook for FY24 remains uncertain, we maintain a Hold rating with a revised price target of (login to view).

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