Agribusiness Elders has returned to profitability thanks to cost cutting and higher earnings from its live export business.
Elders made a full-year profit of $2.98 million for the year to September 30, which compares to a $505 million loss the previous year.
Underlying profit was $8.8 million, which is up from a $68.5 million loss a year ago.
Chief executive Mark Allison said Elders was working to more than double underlying earnings to $60 million by 2017. Elders lifted underlying earnings to $27.3 million for 2013/14, up from a loss of $48.9 million a year ago.
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Allison said the company had cut costs 10 per cent during the year, and lifted earnings from its agency services and export services businesses.
Elders also reduced its net debt 46 per cent during the year.
Allison said the company would look to build on the improvements made to its business.
“Whilst our business will always be subject to the influence of seasonal and market conditions inherent in the agricultural sector, we need to manage the areas of the business that we can control,” he said.
“Now that we have the right foundation, we can focus on the structured implementation of our Eight Point Plan and work towards achieving our target of $60 million EBIT and 20 per cent return on capital in 2017.”
