ELD -22.92%: sold off heavily after a solid 1H result that was overshadowed by management’s comments around the risk higher diesel prices pose to second-half margins as the Middle East conflict continues to drive volatility in oil markets.
- Revenue: $1.77bn, +32% y/y
- Net income: $39.5m, +18% y/y
- Interim dividend per share $0.18
Operationally, the result was strong, supported by improving rural conditions, stronger cash generation and contributions from recent acquisitions including Delta Agribusiness. However, management explicitly flagged elevated diesel prices as a key risk into 2H, with fuel costs remaining highly sensitive to ongoing geopolitical tensions.
That warning overshadowed the otherwise solid result, highlighting how exposed agricultural service businesses remain to sharp moves in energy markets and freight costs. We don’t own ELD.
MM has no interest in ELD
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