Nufarm has delivered a strong half year profit with underlying net profit after tax up 7% to $142 million on revenue of $2 billion versus the prior comparative period.
The statutory net profit after tax of $149 million, was up 51% – representing continued progress on all key strategic growth milestones, with innovation and technology delivering an improved product mix.
Nufarm’s global footprint and portfolio diversity provided added resilience, affirming the earnings outlook for FY23 with a highlight being strong double-digit growth from its Seed Technologies division.
Nufarm managing director and CEO Greg Hunt said, “This is an excellent result, that has been driven by Nufarm’s transformed structure and increasing shift to innovative and differentiated solutions.
“Global conditions remain positive, with agricultural commodity prices at or above five-year averages.
“We have made excellent progress on our key growth initiatives; we are hitting our key milestones and remain on track to meet or exceed our growth aspirations.”
APAC’s underlying EBITDA of $71 million was down 28% from a record high in 1H22, on revenue of $546 million, down 6%. Continued favourable seasonal conditions and relatively higher grain prices resulted in strong demand for seed and crop protection products.
Seed Technologies delivered an excellent result, with revenue up 25% to $231 million and uEBITDA up 34% to $62 million. Key milestones have been met in each of Nufarm’s core seeds, omega-3 and bioenergy growth platforms.
The core seeds portfolio experienced strong demand for hybrid canola, sorghum and sunflower seeds delivering an increase in volume and expansion into several markets.
Mr Hunt said the omega-3 platform is on track to deliver targeted growth of omega-3 canola oil from crops planted in CY23.
