After gaining 5% yesterday following its FY20 results, the Nufarm share price has given back those gains and is still slipping.
The post Nufarm’s (ASX:NUF) share price retreats giving back yesterday’s gains appeared first on Motley Fool Australia. –
The Nufarm Limited (ASX: NUF) share price is down 6.9% in afternoon trading, erasing yesterday’s 5% share price gain.
Following the release of its 2020 full year financial results yesterday, shares were more than 8% higher in intraday trading before closing up 5%.
Year-to-date Nufarm’s share price remains down 33%, as it’s been unable to hold onto any gains made following the 33% COVID-19 induced selloff.
Nufarm is part of the S&P/ASX 200 Index (ASX: XJO). For comparison, the ASX 200 is down 1% today and 12% since 2 January.
What does Nufarm do?
Nufarm Limited was founded in Melbourne in the 1960s. Today Nufarm is a global developer and manufacturer of crop protection solutions and seeds.
Throughout the 1990s and 2000s, Nufarm embarked on a significant growth period, expanding operations across the globe. The company now has manufacturing and marketing operations spanning Australia, New Zealand, the Unites States, Europe, and Asia.
Nufarm’s products are designed to protect commercial crops from a variety of pests, weeds, and diseases to maximise crop yields. The company’s seeds business includes canola, sorghum and sunflower seeds. In addition to product supplies, Nufarm delivers support and services designed to ensure its customers are able to source the right products for their requirements.
Nufarm shares first began trading on the ASX in 1988.
Why is the Nufarm share price falling today?
There are no new announcements from Nufarm today, aside from the finance appendix the company released to the ASX, which appears in line with yesterday’s 2020 full year financial results.
Although Nufarm incurred a statutory net loss after tax of $362 million and suspended dividends until further notice, investors appeared pleased with the company’s balance sheet and outlook.
Net operating cash flow from continued operations increased by $137 million, and the company reported $687 million of cash on hand with $648 million available in undrawn facilities if required.
Looking ahead, Nufarm reported that the company is emerging from a “period of sustained headwinds”. It pointed to solid revenue growth from its continuing businesses in August.
With Nufarm’s share price still well down from the February highs, and a strong agricultural forecast for most of Australia’s core crops, this is a share to keep an eye on.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.