Key Takeaways:

1. Sales up 38% on PCP ($1.5B)
2. EBIT: $132.8 M, up 80% on PCP.
3. Return on capital: 27.8% (up from 20.1%)
4. Costs/gross margin: 59% (down from 69%)
5. Inventories up 61%, impacting cashflow (-$55 M)
6. Strength/growth across all business units.

OUTLOOK

Full year guidance of 30-40% above FY21 underlying EBIT @ 90% cash conversion. Segment details:

• RURAL PRODUCTS: Positive Winter crop outlook, with forecast rise (3%) to 23.4 million hectares of planted crop, and elevated prices due to ongoing supply chain issues.
• AGENCY SERVICES: Beef prices expected to weaken into 2023, lamb/mutton prices expected to remain high, and recovery in wool market as demand returns.
• REAL ESTATE SERVICES: High demand for rural property expected to continue, strong resi and rental property growth expected, and additional rent roll portfolio wins to drive earnings increase.
• FINANCIAL SERVICES: Strong demand for financial products forecast to continue.
• FEED & PROCESSING SERVICES: Strong demand expected to continue.

DISC: HELD

On March 14, 2022, Elders have upgraded underling EBIT guidance to be 20-30% above FY2021 underlying EBIT.

All segments are performing strongly, on the back of increased sales, and favourable seasonal conditions. The agency business is performing strongly on the back of high cattle and sheep prices. Real estate is also exceeding expectations with increased demand for rural real estate.

DISC - HELD.......