Elders (ASX:ELD), an Australian based agribusiness company, today declared a positive start to the financial year as it nearly halved its annual net loss.

The company reported a loss of $217.6 million for the year to September 30, compared with a $432.7m loss in the previous corresponding period.

Elders also returned into positive territory as it reported an underlying profit to shareholders of $3.0 million after tax, which compares to the corresponding loss of $24.4 million in the 12 months to September 2009.

The company said the financial results are within the guidance range on underlying earnings issued by Elders in June, once year end tax adjustments and the recognition of plantation replant costs as nonrecurring are taken into account.

However, the results have fallen well short of original prospectus forecasts of an underlying profit after tax of $55.7 million.

The improvement in underlying earnings before tax compared with 2009 was achieved through a reduction in net underlying interest, which was cut by 61 per cent from $76.9 million to $30.0 million, the company said.

"Our results have effectively come in in-line with the guidance range we outlined in June" said Elders Managing Director Malcolm Jackman.

"On a like-for-like basis Elders has turned around its operating performance compared with the previous year and the results we are now seeing show that we are on track for the lift in performance we have targeted for 2011" he said.

Mr Jackman said, "The past 3 months have been a period of intense effort within Elders as we set about reducing our cost to serve to a level that can generate acceptable returns in the current low price-low margin market and to lay foundations for a sustainable and value-accretive lift in sales revenue."

"This is a long term process, but we are now starting to see the benefits emerge."