Investor Presentaiton
FY18 Outlook
Easing cattle prices expected, offset by footprint expansion and acquisition growth
Retail Products
Winter cropping conditions are expected to be average with limited rainfall during April and May across most of Australia. This
is anticipated to inhibit grower demand for cropping inputs in the second half.
☐
Full year impact of acquisitions completed last year will deliver further benefits during FY18
■During April 2018, Elders announced the acquisition of Titan Ag, an agricultural chemical supplier, which is expected to increase
Retail earnings in the second half
Agency Services
Cattle prices to continue easing in the second half with limited rainfall across many cattle regions during April and May
inhibiting herd rebuild
■ Sheep prices are expected to remain steady supported by international demand
Wool is anticipated to maintain growth with a solid pipeline of wool in store, continued strong wool prices and slow supply
growth
Real Estate Services
Supply of farmland property will continue to be subdued in line with the decline in livestock prices
Financial Services
■
Continued momentum and growth is likely from the banking and livestock funding products
Feed and Processing
■ Continued dry conditions will allow feedlot utilisation to remain at high levels, but will also increase feed costs at the Killara
feedlot
Costs and Capital
Costs are expected to continue to increase in the second half in line with footprint growth and continued Eight Point Plan
investment
■ The contracted divestment of the Indonesian feedlot and abbatoir assets will allow $13 million of capital to be deployed
elsewhere in the business
Elders
11View entire presentation