25 March 2020
Good progress against key priorities in difficult market conditions
Nufarm today announced a loss for the first half of 2020 of $122 million (1H19: $14m).
Overview of half year result
- Revenue down six per cent to $1,477 million
- Underlying EBITDA of $66 million, down 45 per cent
- Free cash flow improved by $170 million
- Interim dividend remains suspended
- Balance sheet to strengthen following sale of South American businesses on 1 April 2020
Nufarm Managing Director and Chief Executive Officer, Greg Hunt, said, “The first half of 2020 saw a continuation of the challenging conditions we experienced in 2019. Nonetheless, we have made good progress against the priorities we set for the current year.
“We improved safety performance, maintained gross margins in our continuing operations in difficult market conditions and improved cash flow management.
“Our balance sheet will be much stronger following completion of the sale of our South American businesses on 1 April 2020. While the outlook for the second half is obscured by the uncertainties created by COVID-19, we are seeing stronger demand following the recent improvement in weather conditions.
“We have made significant investments in our European, Nuseed and North American businesses in recent years. We expect increased earnings from these investments, along with continued improvement in our Australian business, to contribute to lifting returns for shareholders in the coming years”.
The Board continued suspension of the interim dividend.
You can access the 2020 financial reports and presentation here