FINAL UPDATE (Wednesday 7am): Some business commentators are saying it could have been worse, with a further 5.3 million shares traded in Elders yesterday.
That's a grand tally of 12.1 million shares bought and sold since the company's six-monthly financial update was made public on Monday.
The share price was pushed down yesterday to $6.90 after it began trading at $8.30 on Monday and finished that day at $7.20.
Elders' shares haven't been valued so low since January 2020.
Company shares have lost 45pc in value over the past six months - more than $940 million in share price.
As the company's eighth top listed shareholder, Elders' boss Mark Allison has personally suffered a $1.33 million hit as shares in the company tumbled again on the stock exchange.
It's worth remembering, the share price was languishing at around $1 when Mr Allison took the reins as CEO and managing director back in 2014 so investors have done well over his tenure.
Shareholders responded on Monday after they were offered a dividend of 23 cents per share compared with 28 cents last year.
The market responded strongly to Elders' subdued six-monthly company update on Monday which saw net profit expectations fall 42 per cent.
Elders cut its interim dividend to 23 cents as half-yearly net profit fell to $48.8 million in the six months ended March 31.
Elders' bosses told the market briefing they expected 2023 earnings to be weighted towards the second half of the year.
This share slide was triggered when the champion of Elders' ASX supporters, Elders managing director and chief executive officer Mark Allison, announced he would be stepping down by November this year.
Yesterday's briefing was told by Elders chair Ian Wilton the search for a successor was continuing and the board expected to make a further announcement in July.
After a decade at the helm, Mr Allison is listed in the last company annual report in the top 10 shareholders with 955,293 shares.
Share prices fell from $8.30 to $6.90 before this morning's ASX opening - the fall of Mr Allison's personal stake was $1,337,409 on paper.
But this is just the CEO's public holding detailed in last year's annual report, he is known to hold more shares more than that today.
The company is tipping its full-year earnings before interest and taxes to range between $180 million-$200 million.
It would still be a 18 per cent fall on the previous strong financial year but a 13pc lift on the year before that (2021 financial year).
Despite the optimism, investors again responded by selling off shares again.
Analysts said this latest sell off of almost eight million shares lost about 13pc in company value.
The market briefing was told weakening crop input and livestock prices were factors that caused a decline of 38 per cent in earnings before interest and tax to $82.8 million, and the company's gross margin declining $20.7m.
Total sales revenue rose 9pc from the first half of 2022, from $1.514 billion to $1.657 billion.
During an investor presentation on Monday, Elders leaders described the company's half-yearly performance as "resilient", considering the backdrop of a volatile agricultural industry impacted by softened livestock trading conditions, weaker crop input prices and unseasonably wet weather.
READ MORE: Farmland remains in hot demand, Elders
The company said it was in contrast to the first half of 2022, with strong livestock prices, a buoyant real estate market and ahead-of-season client purchases of crop products in response to global supply chain uncertainty.
Mr Allison said the half year financial results had been "satisfactory, given the market and seasonal conditions".
"Elders continues to execute its plan to deliver growth through the cycles," he said.
"The 2022 financial year was unusual with EBIT greater in the first half than the second, primarily because clients brought forward their winter crop procurement due to supply concerns and rising input prices."
The company expects its 2023 earnings to be weighted towards the second half of the year, a return to normality.
Mr Allison said the freeing up of supply chains, lower freight costs and more sustainable fertiliser prices were a great benefit to the agricultural industry, but made comparison between the half yearly results of 2022 and 2023 challenging.
"Elders has taken the decision to provide full year guidance to reinforce our expectation that second half earnings are likely to exceed the first half, a more typical earnings profile for Elders," he said.
"We look forward to the second half given the strong winter crop outlook."
Mr Allison has been credited with turning the company's fortunes around after the global financial crisis.
Former CEO Malcolm Jackman resigned in 2013 with Mr Allison his board chairman at the time.
He had initially been an Elders board director from 2009, then took the chairman's seat in 2013
After a long search Mr Allison was appointed chief executive officer and managing director of Elders in 2014.
Elders had been weighed down by huge debts, big losses and sold off many businesses to focus on its agricultural core.
Since then, Elders has steadily climbed back into the black.
Mr Allison has himself said the share market reaction to his eventual retirement was a "gross overreaction".
According to investors, Elders needs to find someone as good for shareholders as Mr Allison has been.
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.
