Good summer crop conditions and record livestock and wool prices have helped agribusiness Elders lift its first-half profit by 56 per cent and flag the resumption of dividend payments this year.
Elders on Monday reported a net profit for the six months to March 31 of $38.3 million compared to $24.6 million a year earlier.
"Our scorecard assessment of ourselves is that it's a solid performance for the half year," Elders chief executive Mark Allison said
"We're on track to our commitment to paying dividends at the completion of this (fiscal) year."
Mr Allison said improved summer cropping conditions helped boost earnings from Elders retail operations by $6.5 million, and record livestock and wool prices added $5.8 million to the earnings from the agency services business.
The high livestock prices and low interest rates generated increased demand of large cattle farms and broadacre cropping properties, which benefited Elders' real estate business.
High cattle costs weighed on Elders' overseas feed and processing business but that was offset by better earnings from higher occupancy and efficiencies at the Killara feedlot.
The company also said its exit from the short-haul live export business is well-advanced.
Elders said high prices for sheep and cattle are likely to continue in the short term but ease as volumes rise later in the year.
The decline in livestock prices is expected to be accompanied by an easing in demand for livestock properties.
With rainfall to June expected to be lower and temperatures higher than average for most of Australia, crop yields could be affected.
"However our sense is that we're looking for an average season," Mr Allison said.
"We're taking a conservative view on the second half."
Elders expects its full-year underlying earnings will be "on the high side" of previous guidance of $60 million in pre-tax earnings, plus or minus 10 per cent.
Shares in Elders were were seven cents, or 1.6 per cent, higher at $4.47 at 1211 AEST.
NORMAL SUMMER HELPS BOOST ELDERS HY PROFIT
* First-half net profit up 56pct to $38.3m
* Revenue up 4pct to $773.2m
* No interim dividend
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