Elders Ltd.

Presentation Highlights:

• Elders Limited (ASX:ELD) continues to execute its Fourth Eight Point Plan strategy across a diversified agribusiness platform spanning Rural Services, Crop Protection, AIRR wholesale distribution, Delta Agribusiness, Real Estate, and Feed & Processing, while strengthening operational resilience through agricultural cycles via divisional alignment, systems modernization, and vertically integrated expansion. During the half, the company completed the first five months of Delta Agribusiness ownership, finalized the rollout of its new divisional operating model, progressed Wave 3 of its Systems Modernization program across livestock operations, and delivered strong safety and operational initiatives alongside geographic expansion through acquisitions that added 58 additional points of presence across Australia.
• In HY26, Elders delivered strong financial growth supported by favorable livestock pricing, expanding real estate activity, and the early contribution from Delta Agribusiness, generating sales revenue of USD 1.17B (AUD 1.77B), gross margin of USD 262.4M (AUD 396.6M), and underlying EBIT of USD 50.7M (AUD 76.6M), representing 33% year-over-year EBIT growth, while operating cash flow increased 115% to USD 44.4M (AUD 67M) and cash conversion expanded to 177%. The company maintained its fully franked interim dividend at 18 cents per share despite temporarily elevated leverage following the Delta acquisition, with management emphasizing that working capital levels reflected seasonal winter crop preparation and that proceeds from the planned Killara divestment alongside a full second-half Delta earnings contribution are expected to support leverage moving back toward the company’s long-term 1.5x to 2.0x target range.
• Looking through the remainder of FY26 and beyond, Elders outlined a strategy centered on scaling margin expansion, operating efficiency, and earnings growth through procurement synergies, technology modernization, disciplined capital allocation, and continued acquisition activity, with the company remaining on track to deliver USD 7.9M (AUD 12M) of Delta Agribusiness EBIT synergies over three years. Management expects second-half earnings momentum to strengthen through seasonally weighted Delta sales, livestock and agency-service growth, retail margin optimization, expanding financial-services penetration, and benefits from the completion of its multi-wave Systems Modernisation initiative, while broader Australian agricultural conditions remain supportive with ABARES forecasting stronger cattle, sheep, wool, and winter crop markets through 2026 and Elders continuing to target 5–10% EBIT and EPS growth through agricultural cycles with a long-term return on capital objective of 15%.

Presentation Highlights:

• Elders Limited (ASX:ELD) is a diversified Australian agribusiness operating a fully integrated national platform across Rural Products, Agency Services, Wholesale Distribution, Real Estate, Financial Services, and Feed and Processing, delivering FY25 sales revenue of USD 2.11B (AUD 3.20B) and EBIT of USD 94.7M (AUD 143.5M), reflecting the first full year of its divisional operating structure and a clear focus on consistent earnings delivery across the agricultural cycle.
• In FY25, Elders expanded group gross margin to USD 452.7M (AUD 684.6M) representing a 21.4% margin, completed eight bolt-on acquisitions alongside the strategic acquisition of Delta Agribusiness effective November 2025 which contributed approximately USD 538.6M (AUD 816M) of annual revenue, generated operating cash flow of USD 77.8M (AUD 117.9M) with cash conversion of 137%, and strengthened its balance sheet with core leverage at 1.8x following the Delta equity raise.
• Entering FY26, Elders is advancing the integration of Delta Agribusiness across eastern and southern Australia, translating systems modernization across retail and livestock into margin and return expansion, scaling vertically integrated Crop Protection and wholesale operations, maintaining disciplined working capital management to support leverage moving below 2.0x, and pursuing 5–10% EBIT and EPS growth through the cycle with a return on capital trajectory aligned toward 15%.