Why Are ELD And BLD Shares Leaping Today?

Australian agribusiness giant Elders (ASX:ELD) has revealed its financial results for the fiscal year ending September 30, 2023. Despite facing headwinds such as declining livestock prices and inflationary pressures, Elders showcased resilience, recording the second-highest earnings before interest and tax (EBIT) in the last decade.

Financial Highlights and Dividend

• EBIT Decline: Elders reported a 26% decrease in EBIT, reaching $170.8 million.
• Final Dividend: The company declared a final dividend of 23.0 cents per share (30% franked).

Performance and Safety

Elders emphasized safety, noting a decrease in lost time injuries and a reduction in the total recordable

injuries frequency rate compared to the prior year.

Segment Performance

• Retail Products: Showed growth despite margin impact due to softening input prices.
• Wholesale Products: Witnessed sales growth but faced margin pressure in certain segments.
• Agency Services: Experienced a margin decrease primarily due to declining livestock prices.
• Real Estate Services: Declined due to rising interest rates.
• Financial Services: Improved earnings, notably in Elders Insurance.

CEO's Perspective and Future Outlook

Managing Director Mark Allison acknowledged the challenging conditions but highlighted Elders' diversified portfolio as the strength behind their robust performance. Looking ahead to FY24, Elders foresees margin recovery in certain sectors and anticipates growth in Agency Services.

BLD Shares Surge as Boral Upgrades FY24 Guidance

Boral Limited (ASX: BLD) has upgraded its FY24 guidance, with anticipated underlying EBIT now in the range of $300-$330 million. This upgrade reflects improved financial results and a confident outlook for the remainder of the fiscal year, attributed to better price traction and cost management across their businesses.

CEO Vik Bansal expressed satisfaction with their performance to date, emphasizing the significance of price realization in the current inflationary environment. Boral is set to report its 1H24 results on February 9, 2024.

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