Nufarm reports strong lift in revenues and earnings for first half of FY21

On May 20, Nufarm Limited (ASX: NUF) reported financial results for the 6 months ending 31 March 2021. Group revenues were $1.65 billion, an increase of 20% on the same period in the prior year. Group underlying earnings before interest, tax, depreciation and amortisation was $233.6 million, up 118% on the prior period. Net profit after tax was $59 million.

The significantly improved result reflected revenue and EBITDA growth in all regions and Seed Technologies, with particularly strong growth in APAC and Europe. Successful execution of ongoing Performance Improvement Program initiatives also contributed to earnings growth.

Nufarm 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.”

Mr Hunt noted that full year earnings are now forecast to be significantly weighted to the first half period. “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.”

You can access the 2021 financial reports and presentation here.