Nufarm Half Year Results 2022
19 May 2022
Nufarm delivers 41% growth in underlying earnings for 1H22
- Underlying EBITDA up 41% on the previous corresponding period (pcp) to $330 million on revenue of $2.2 billion, up 31% on pcp
- Statutory net profit after tax of $99 million, up 61% on pcp
- Underlying net profit after tax of $133 million, an increase of 112% on pcp
- Unfranked interim dividend of 4 cents per share
- Result validates strategy and reflects good management through volatile global conditions
- Positive outlook with favourable industry fundamentals
Nufarm Limited (ASX: NUF) (Nufarm) today announced a strong increase in its financial performance for the six months ended 31 March 2022.
The company reported underlying earnings before interest, tax, depreciation and amortisation (uEBITDA) of $330 million, an increase of 41% on pcp, on revenue of $2.2 billion, up 31% on pcp. Underlying net profit after tax (uNPAT) was $133 million, an increase of 112% on pcp. The Board declared an unfranked interim dividend of 4 cents per share, the first interim dividend the company has paid since 2018.
Nufarm Managing Director and CEO, Greg Hunt, said “This is a very strong result for Nufarm, validating our strategy and reflecting good management through volatile global conditions.
“While we have benefited from healthy seasonal demand in our markets and higher grain prices, we are also reaping the outcomes of the hard work undertaken in recent years to transform the company. Our focus on core crops and key geographies is delivering strong results. Our seed technologies platforms continue to hit strategic milestones and provide significant growth opportunities for the company.
“Our transformation and continued focus have allowed us to navigate the uncertainty and volatility of the current global climate to deliver pleasing earnings growth for shareholders.
“Despite some concerns around global supply chains and inflation, the growth outlook and prospects for our industry remain clear. The fundamental need to grow more food to meet the needs of growing populations is ever present.
“We have a strong balance sheet, with leverage at 1.1 times (net debt to uEBITDA).
“The outlook for the full year remains positive. Current industry conditions are highly favourable with grain prices likely to remain elevated driving increased planting and demand for crop protection products. Full year results are anticipated to be proportionately more weighted to the first half compared to FY21, given the elevated forward sales due to global uncertainty and volatility in relation to active ingredient pricing, global supply chain and logistics challenges.
“Our five-year growth aspirations remain unchanged as per the detailed strategy presentation in February. We see a credible path to over $4 billion revenue by 2026, with our seed technologies business aspiring to revenues of between $600-$700 million in 2026.”