The Nufarm (ASX: NUF) share price is lifting after the company announced solid results for the last two months at its AGM today.
The post 3 AGM highlights lifting the Nufarm (ASX:NUF) share price today appeared first on The Motley Fool Australia. –
Agrochemicals company Nufarm Limited (ASX: NUF) has reported its revenues for October and November were up 47% on the comparative period last year. This follows a 23% revenue growth in September, the company said in a bullish trading update at its annual general meeting (AGM) this morning.
The Nufarm share price has reacted positively to the news, trading up more than 2% to $4.23 at the time of writing.
3 AGM highlights driving the Nufarm share price today
Firtly, the revenue growth numbers just mentioned. Nufarm says that this growth was driven primarily by stronger demand in Australia and Europe. In particular, its European Nuseed business. With continuing better pricing from suppliers, the company expects to deliver even better earnings from the region as the year progresses.
The second major highlight was the “significant milestone” the company achieved in selling its South American crop protection business to Sumitomo Chemical Company earlier this year. That sale has allowed the company to refocus its resources into regions and businesses through which it can generate better long-term growth, such as Europe.
Thirdly, Nufarm is working to reduce its cost base to improve margins and provide a buffer against unforeseen headwinds. The company is targeting $20 million to $25 million of cost savings by the end of financial year 2022. Around $10 million to $15 million of the savings are to come from the European business.
What does Nufarm do?
With origins dating back more than 100 years, Nufarm is a global manufacturer of crop protection solutions and seeds.
Nufarm’s products are designed to protect commercial crops from a variety of pests, weeds, and diseases, thereby maximising crop yields. It first listed on the ASX in 1988.
Nufarm share price performance this year
The Nufarm share price has lost almost 30% in 2020. The company recorded a statutory net loss after tax of $456 million for the full year FY20. This was attributed to weak seasonal conditions faced in the first 6 months and the effects of COVID-19.
The company has continued to suspend all dividends until further notice, with the board saying it would revisit this decision in future based on the prevailing market conditions.
Nufarm commands a market cap of $1.5 billion.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.