Incitec, which is a manufacturer and supplier of fertiliser and explosives (for the resources sector), gained as much as 11% in early trade after announcing a substantial boost in its profit.
Its statutory profit was $149 million, up 31% from FY20. When individually material items are excluded – specifically impairments of manufacturing facilities – this rises to $359 million which is up 91% on the $188 million it made in FY20.
Incitec Pivot credited the upswing to the gain in commodity prices and its ability to withstand the challenges of COVID-19.
CEO Jeanne Johns said shareholders had a lot to look forward to in the months ahead.
“As we enter FY22 we are well positioned to benefit from the continued execution of our strategy, as we invest in and grow our two strong base businesses in explosives and fertilisers and capture the strength in commodity pricing,” she said.
Shares have gained over 50% in the past 12 months.
Incitec Pivot (ASX:IPL) share price chart
Elders reports $151.1m profit
Meanwhile, agribusiness and realtor Elders (ASX:ELD) also reported solid results with an underlying post-tax profit of $151.1 million, up 40% from FY20.
Again this company benefited from positive agricultural commodity prices driven by limited supply and strong demand.
It also credited the property boom, driven by record low interest rates, which while most prominent in Australia’s major cities hasn’t left farmland properties untouched.
“I am very proud of what we have achieved in FY21,” said CEO Mark Allison.
“We have made tremendous progress on our current Eight Point Plan and are well positioned to continue our growth into FY22. We have built our business to perform well in challenging years and to outperform in better years.”
Elders (ASX:ELD) share price chart
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