Nufarm (ASX:NUF) has announced its full-year financial results for FY24, reporting underlying EBITDA of $313m, which was at the midpoint of guidance despite a 29% decline from the previous year. This performance came as Nufarm navigated competitive pricing pressures and lower revenue in some segments. The company’s net debt dropped by 25% to $635m, and working capital was reduced by 30%, reflecting disciplined inventory management and improved payables.
Based in Melbourne, Australia, Nufarm specialises in developing and manufacturing crop protection solutions, including herbicides, insecticides and fungicides, aimed at supporting sustainable agriculture. It also operates a Seed Technologies segment, focused on innovations in canola, sorghum and other hybrid seeds, along with advanced biofuels and omega-3 oil production.
In its Crop Protection segment, Nufarm faced margin pressures in North America and Europe, though it reported solid demand for products across Australia and Asia. The Seed Technologies division achieved $50 million in revenue from omega-3 oil, and the company expanded canola production in Australia and South America. CEO Greg Hunt commented, “Our balance sheet position is strong… we delivered net leverage of 2.0 times underlying EBITDA, demonstrating our ability to navigate a difficult environment”.
Looking forward, Nufarm aims to further strengthen its growth platforms, particularly in biofuels and omega-3 production, and anticipates a doubling of omega-3 revenue in FY25. The company has outlined plans for $50m in annualised savings by FY25, focusing on reducing inventory days and supporting strategic investments in product innovation.
Shares are trading 7.1% higher at $3.92.