Insights

Nufarm (ASX:NUF) share price up 5% after doubling half year earnings

The Nufarm Ltd (ASX:NUF) share price is on the move on Thursday after doubling its earnings during the first half…
The post Nufarm (ASX:NUF) share price up 5% after doubling half year earnings appeared first on The Motley Fool Australia. –

In morning trade, the Nufarm Ltd (ASX: NUF) share price is storming higher following the release of its half year results.

At the time of writing, the agricultural chemicals company’s shares are up 5% to $5.15.

How did Nufarm perform in the first half?

For the six months ended 31 March, Nufarm reported revenue of $1.65 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $233.6 million. This represents an increase of 20% and 118%, respectively, over the prior corresponding period.

Things were even better on the bottom line, with the company swinging from a $122 million half year loss in FY 2020 to a $59 million half year profit in FY 2021.

Management advised that the significantly improved result reflects revenue and EBITDA growth in all regions and Seed Technologies, with particularly strong growth in APAC and Europe. In addition to this, the successful execution of its ongoing Performance Improvement Program initiatives is also contributing to its earnings growth.

However, despite the rebound in its performance, the Nufarm board has decided not to declare an interim dividend. Though, a review of capital management principles will be finalised by the end of 2021.

Nufarm’s Managing Director and CEO, Greg Hunt, said “Strong early demand and channel restocking in key markets has delivered a very strong first half result. We are realising benefits from the leverage of our APAC business to improved seasonal conditions and the earnings recovery in our European business is on track.”

“Our North American and Seed Technologies businesses are delivering good growth, with currency translation impacts somewhat masking the true underlying performance of our North American business. Earnings growth and improved working capital management is driving cash generation and our balance sheet is strong,” he added.

Outlook

One thing that could be holding back the Nufarm share price slightly today is management’s outlook for the remainder of FY 2021.

It has warned that its FY 2021 earnings will be significantly weighted to the first half. Therefore, investors shouldn’t expect its strong growth to be repeated over the next six months.

Mr Hunt explained: “We have delivered a strong first half result and momentum has continued into the second half, however this has not altered our expectations for the full year. We remain very focused on our key objectives of growing volumes and revenue; improving margins; generating more cash; and delivering stronger returns for shareholders.”

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

5 things to watch on the ASX 200 on Thursday

Nufarm (ASX:NUF) share price rises ahead of next month’s profit results
Looming grocery price shock to impact on these ASX shares

The post Nufarm (ASX:NUF) share price up 5% after doubling half year earnings appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!