How Elders’ Delta Deal and Sustainability Push Spark 12% Profit Rise
Elders Limited reported a solid FY25 with a 12% rise in profit after tax to $50.3 million, completing the strategic acquisition of Delta Agribusiness and advancing key operational and sustainability initiatives.
- FY25 revenue reached $3.2 billion, up 2%
- Profit after tax increased 12% to $50.3 million
- Acquisition of Delta Agribusiness expanded retail footprint
- Operational efficiency gains via Systems Modernisation and AgriToll facility
- 100% renewable electricity achieved across Australian sites
Steady Financial Growth
Elders Limited (ASX, ELD) has delivered a steady financial performance for the year ended 30 September 2025, reporting revenue of $3.2 billion, a 2% increase over the prior year. Profit after tax attributable to members rose 12% to $50.3 million, reflecting resilience amid mixed seasonal conditions affecting key agricultural regions.
Strategic Expansion with Delta Agribusiness
A highlight of FY25 was the completion of Elders’ acquisition of Delta Agribusiness on 3 November 2025. This move significantly expanded Elders’ geographic footprint and retail presence, adding 58 new locations and enhancing its agronomic service offering. The acquisition aligns with Elders’ strategy to diversify and strengthen its portfolio, with Delta expected to materially boost Rural Products gross margin in FY26.
Operational Efficiency and Innovation
Elders continued to progress its Systems Modernisation (SysMod) program, rolling out Microsoft Dynamics 365 across retail operations and supply chain functions. This initiative aims to unlock efficiency gains and future-proof the business. Additionally, the launch of the AgriToll formulation facility in Western Australia marked a key milestone in Elders’ backward integration strategy, enhancing supply chain resilience and product quality for crop protection chemicals.
Sustainability Leadership
The company achieved its target of 100% renewable electricity across all Australian sites ahead of schedule, primarily through solar installations and the procurement of Large-Scale Generation Certificates. Elders also advanced its emissions reduction targets and climate risk management, embedding sustainability into governance and operations. Initiatives such as the BioSolutions Hub partnership with Charles Sturt University and regenerative wool production underscore Elders’ commitment to sustainable agriculture.
Governance and Leadership Transition
FY25 saw significant board renewal, with new appointments including Bethwyn Todd and Stephanie Nixon, enhancing expertise in agriculture and corporate governance. Ian Wilton retired as Chair in November 2025, succeeded by Glenn Davis. The Board is actively conducting a global search for a new CEO to succeed Mark Allison, whose retention arrangements have been a focal point of shareholder scrutiny. Elders’ executive remuneration framework remains aligned with performance, with no short-term incentives awarded in FY25 due to not meeting EBIT thresholds, and no long-term incentive vesting for the FY23 grant.
Outlook
Looking ahead to FY26, Elders anticipates EBIT growth driven by improved agricultural conditions, the full-year contribution from Delta Agribusiness, and ongoing operational efficiencies. The company’s new divisional structure aims to enhance accountability and agility. While challenges remain, including climate variability and supply chain risks, Elders’ diversified portfolio and strategic initiatives position it well to capitalize on emerging opportunities in Australian agribusiness.
Bottom Line?
Elders’ FY25 results set the stage for growth, but integration of Delta and CEO succession will be critical to sustaining momentum.
Questions in the middle?
- How will Elders integrate Delta Agribusiness operationally and culturally in FY26?
- Who will be appointed as the new CEO, and what strategic direction will they set?
- How will Elders manage climate-related risks while pursuing growth and sustainability targets?
