Elders’ lift earns bonus

Press, 30 September 1986, Page 20

Elders’ lift earns bonus

NZPA-AAP Melbourne Shareholders in Mr John Elliott’s Elders IXL will celebrate yesterday’s announced 91 per cent increase in net profit to a record sAust2o4.6s million (5NZ266.05 million) by receiving a one-for-three bonus issue. The bonus issue, for shares held on November 7, will rank for the final dividend of Bc, which makes the annual pay out 18c compared with 20c last year. Net profit attributable to ordinary shareholders was sAustlBl.4 million after payment of preference dividends of sAust23.2 million compared with the previous year’s SAust 106.90 million, and represented earnings a share of 54c compared with 34c last year. The previous net attributable profit was sAustl 06.90 million.

This year’s profit included sAust6o million (SAustlO million) related to rationalisation and reorganisation of businesses, and the sale of major investments, businesses and surplus assets. Directors said the Carlton and United Breweries group was the biggest pretax contributor at sAustBo.s million, compared with sAust6s

million previously, mainly due to significant market share gains.

“Carlton’s share of the Australian beer market increased during the year in the face of unprecedented media promotion and discounting activities throughout the industry,” directors said. The finance group continued its strong performance by lifting profit to sAust3s.7 million from sAust2S million.

But the pastoral group had a disappointing year with pretax profit dipping to sAustl6.s million from SAust3o million due to falling farm incomes, high interest rates, new taxes and lower commodity prices. “The (pastoral) group, however, maintained its position in Australia as the leading national organisation servicing the requirements of the rural industries and has consolidated its position in New Zealand." directors said.

The international group’s results improved, but were below expectations partly due to continued depressed commodity trading. Markets improved in the second half for wool, meat, malt, dairy products and the industrial agency businesses. "This was largely a result of the development of its international marketing network, systems improvements and cost reductions which were all fully effective in the second half.

"Difficult trading conditions still exist in many commodities,” the directors said.