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Elders (ASX:ELD) claims bushfire rebuild may restore sales

ASX 200
ASX:ELD      MCAP $1.295B
10 January 2020 06:00 (AEST)

Agricultural company, Elders (ELD) has updated the market on the impact of the bushfires to its business.

The company says that none of its properties have been damaged and its employees and contractors are safe. However, many of its people have been personally impacted through evacuation and property loss.

Elders said it is supporting its employees with a range of support services.

Due to the fires, the company expects sales from the livestock agency commissions and farm supplies will be negatively impacted.

“It is too early to assess the full impact of the fires, which are still burning in many parts of Australia, but in the immediate term, we expect that livestock agency commissions and farm supplies sales will be negatively impacted in bushfire impacted regions,” it told the market.

Unfortunately, some of Elders’ clients have experienced devastating property and livestock losses.

Elders believes there will be an increased demand for farm supplies, which include fencing and the need for restocking once the fires ease.

“Having served rural communities for over 180 years, our people are on the ground helping where they can, volunteering to fight fires and protect property, feed and relocate surviving livestock and bring relief and aid to those in need,” it said.

Elders will offer hardship relief options for its impacted clients, including interest-free periods and extended repayment terms.

In addition, the company has also pledged to donate $100,000 to the Foundation for Rural and Regional Renewal and will make financial and in-kind contributions to a range of charitable organisations.

The company also reported that trading in the first quarter of the financial year 2020 was in line with its expectations.

Elders are up 1.15 per cent on the Australian Securities Exchange and is trading at $6.16 per share.

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