There was no stopping the popularity of Elders Ltd with a mighty 3.5 million shares traded in the company yesterday.
With share prices staying high above $13, the value of trading in the company on the Australian Stock Exchange saw about $46 million changing hands.
Elders Ltd caught fire on Monday after a stunning lift in expected profits for the year was announced to the ASX.
By the time investors had caught on, the share price drove up more than a dollar as 2.1m shares were traded.
Cashed-up farmers have been racing into their Elders stores ahead of time to buy up critical farm inputs "seeking to mitigate the risk of instability in supply chains".
That's just one of the reasons for the surprise profit lift, according to Elders' managing director and chief executive Mark Allison.
"We have seen improvement in our retail and wholesale segments compared with the same time last financial year due to increased sales and favourable seasonal conditions in most parts of Australia," he told the ASX.
Elders now expects its profit this financial year will be up to a third higher than last year.
The agribusiness reported a $149.8 million profit last financial year, a 22pc rise on the year before in a big turnaround for the once struggling company.
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Mr Allison said it was now forecast the company's result would be 20 to 30 per cent above the earnings (before interest and tax) of the previous year.
The 2021 financial year result (EBIT) was $166.6m so the new forecast places the expected result at about $200-$216m for 2022.
"Our agency business continues to perform strongly as a result of high prices in both sheep and cattle, offset to some extent by lower volumes due to restocking and the good availability of feed on farm.
"Real estate is also exceeding expectations due to increased turnover and high demand," he said.
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Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
