Nufarm (ASX:NUF) announced full-year financial results for FY24, reporting underlying EBITDA of $313 million, which was at the mid-level of forecasts despite a 29% decline from the prior year. This performance came as Nufarm faced competitive pricing pressures and lower revenues in some segments. The company’s net debt fell 25% to $635 million, and working capital was reduced 30%, reflecting disciplined inventory management and debt improvement.
Headquartered in Melbourne, Australia, Nufarm specializes in the development and manufacturing of crop protection solutions, including herbicides, insecticides and fungicides, to support sustainable agriculture. It also operates a seed technologies segment, focused on innovations in canola, sorghum and other hybrid seeds, along with advanced biofuels and omega-3 oil production.
In the Crop Protection segment, Nufarm faced margin pressures in North America and Europe, although it reported solid product demand in Australia and Asia. The Seed Technologies division earned $50 million in revenue from omega-3 oil, and the company expanded canola production in Australia and South America. CEO Greg Hunt commented: “Our capital position is strong… we achieved net leverage of 2.0 times underlying EBITDA, demonstrating our ability to navigate a challenging environment.”
Looking ahead, Nufarm aims to further strengthen its growth platforms, particularly in biofuel and omega-3 production, and expects a doubling of omega-3 revenue in FY25. The company has outlined plans to an annualized savings of $50 million by FY25 by focusing on reducing days of inventory and supporting strategic investments in product innovation.
The shares are trading up 7.1% at $3.92.