Nufarm (NUF) Earnings Update
Date: 15/11/2023
*** GENERAL AVICE ONLY***
Current holding 5% – Balanced Portfolio
While results were weaker, the outlook was positive. The undervalued seed technology business performed well and 2-year projections remain on target.
The Balanced portfolio will continue to HOLD the position until further notice
Financial Statement Performance
Nufarm has recorded slip in underlying net profit and earnings in its full-year report. Underlying net profit after tax dropped 8 per cent to $122 million, and underlying EBITDA fell 2 per cent to $438 million. However, statutory net profit after tax rose 3 per cent to $111 million.
The board declared an unfranked final dividend of 5¢ per share, taking the total for the year to 10¢ per share, inline with FY22.
CEO Comments
Nufarm managing director and CEO, Greg Hunt, said the result were strong on the back of a record prior period.
“We expect trading to remain challenging in the first half as the industry adjusts to a lower level of input cost and prices and for Nufarm to return to growth in the second half of fiscal 24. We remain on track to meet our FY26 revenue aspirations,”
Likely Market Reaction
- Market reaction is likely to be initially poor on the EPS miss.
- will be interesting to see if the progress in the seed tech business will encourage buying at these low levels in the coming days
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.