SYDNEY, May 19, 2026, 08:06 (AEST)
Elders Limited shares are facing another test at Tuesday’s open after sliding 22.92% to A$5.55 on Monday. Investors shrugged off a stronger first-half profit, focusing on higher technology and corporate costs for the Australian agribusiness group. Shares finished down A$1.65, according to market data from Intelligent Investor. Intelligent Investor
ASX cash market sat in pre-open at the dateline, with normal trading scheduled for 9:59 a.m. to 4:00 p.m. AEST. That leaves Monday’s close as the last price, following a sharp shift in the market. TradingHours
S&P/ASX 200 drops 1.45% to seven-week low as profit concerns hit shares The S&P/ASX 200 lost 125.5 points, or 1.45%, to end at 8,505.3 on Monday, its lowest in seven weeks. Profit worries weighed on Australian stocks. UBS equity strategist Richard Schellbach said he was “getting incrementally more downbeat,” and pointed to an earnings downgrade cycle already moving through the market. CommBank
Elders posted underlying EBIT of A$76.6 million for the half-year to March 31, up 33%. Statutory profit after tax was A$39.5 million, a 17% gain. Underlying sales revenue came in at A$1.77 billion, up 32%. The board held the interim dividend steady at 18 cents a share, fully franked with Australian tax credits. ASX Announcements
The market pointed to softer spots. Underlying earnings per share dropped 4% to 18.1 cents. Underlying return on capital, which tracks how well the business uses its money, declined to 10.7% from 12.6%. ASX Announcements
Cost worries dominated. Elders pointed to higher Corporate Services and Other Costs, blaming much of that on increased IT outlays as its Systems Modernisation moved from project work into ongoing expenses. The company kept two platforms running until it can retire its AS400 system in 2027. Delta Agribusiness, which Elders acquired in November, brought in A$10.4 million EBIT in its first five months. Rural Services and Crop Protection saw gains too. ASX Announcements
Elders CEO Mark Allison said the half had been “eventful for Elders” and that seasonal gains were giving some optimism around the winter crop. He said the company’s new divisional structure put Elders in a position for a “solid second half.” ASX Announcements
Results gave investors a reason to sell. Bell Potter’s Jonathan Snape took management to task over corporate overheads, telling them the line “look[s] like they’re out of control.” He wanted to know how much of the recent jump was permanent. CFO Paul Rossiter pointed to A$13.5 million in transformation project costs, and said this year should see “some relief,” with “more relief in 2027.” Investing.com Nigeria
Competition kept coming up. Macquarie analyst Ben Wedd pressed the company on retail rivals, and Allison pointed to “hotspots of competition” in crop protection. She said this was showing up mostly in Victoria, where more active ingredients had lost patent and there was more price heat in generics. Investing.com Nigeria
But the downside risk is still there. Elders said high diesel prices are a threat to second-half costs, and swings in international markets have hit both fuel and fertiliser. If diesel sticks at these levels, if seasonal weather hurts growers in main regions, or if Delta synergies and IT cuts lag, Monday’s drop might not stay a one-off. ASX Announcements
Elders took the biggest hit among ag stocks. Nufarm ended Monday 0.84% lower at A$2.37. GrainCorp lost 3.16% to finish at A$5.21. Intelligent Investor
Investors are watching to see if cost growth slows, if Delta’s earnings pickup lands in the second half, and if Elders gets the planned debt cut from the Killara Feedlot sale. Elders said the money from Killara should lower net debt, leverage, and interest expense. The company also said it refinanced A$465 million of bank debt on Monday, with the main facility now maturing in November 2029. ASX Announcements
