Nufarm [ASX:NUF] said today that revenues and profits surged in the six months ending 31 March 2022.
Nufarm is a global protection and seed technology company helping customers around the world with agricultural solutions.
What were some of Nufarm’s financial results?
Nufarm reported underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) of $330 million, a 41% increase from the same period last year.
Revenue was also up 31% to $2.2 billion and underlying net profit after tax increased by 112% from the prior corresponding period reaching $133 million.
Statutory net profit after tax came in at $99 million, up 61% from the same period last year.
Nufarm Managing Director and CEO Greg Hunt said during the announcement:
‘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.’
Nufarm confirmed they ‘see a credible path to over $4 billion’ in revenue by 2026. The company is also targeting revenues of between $600 and $700 million by 2026 for its seed technology business.
Nufarm has declared an unfranked interim dividend of 4 cents a share, the first interim dividend the company will pay since 2018.
Despite the good news, shares were down after the announcement
At time of writing, shares for Nufarm are down 5.9% and trading at $6.25.
Shares were likely brought down by the overall market sentiment.
But also because Nufarm said they expect full-year results to be ‘be proportionately more weighted to the first half compared to FY21.’ Mainly because a high number of sales had been brought forward due to global uncertainty, supply chain and logistic problems, and volatility in prices.
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