- Nufarm’s statutory net profit after tax increased by 3% to $111 million.
- The company is on track to meet its FY26 revenue goals.
- Underlying net profit after tax decreased by 8% to $122 million.
- Nufarm experienced a 6% increase in underlying EBIT and a 2% decrease in underlying EBITDA.
- The company maintains a strong balance sheet with net debt to EBITDA at 1.9x.
- Nufarm declared an unfranked final dividend of 5 cents per share.
Nufarm’s Financial Overview for FY23
Nufarm, a global leader in crop protection and seed technologies, reported a statutory net profit after tax of $111 million for the fiscal year 2023, marking a 3% increase from the previous year. Despite global market challenges, the company has shown resilience and steady growth.
Underlying Financial Performance
The company’s underlying net profit after tax decreased 8% to $122 million. However, Nufarm reported a 6% increase in its underlying earnings before interest and tax (EBIT) to $250 million. In contrast, underlying earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 2% to $438 million.
Dividend and Debt Position
Nufarm’s Board declared an unfranked final dividend of 5 cents per share, maintaining the total annual dividend at 10 cents per share, consistent with FY22. The company’s net debt to EBITDA ratio stood at 1.9x, within the targeted range of 1.5 – 2.0 times, indicating a healthy debt position.
Crop Protection and Seed Technologies
The crop protection sector faced global market challenges, including channel destocking and reduced sales across all regions. Despite these challenges, Nufarm recorded a solid performance in crop protection, with new product introductions mitigating some impacts. The Seed Technologies sector delivered an exceptional performance, with a 33% increase in revenue and a 67% increase in underlying EBITDA.
Greg Hunt, Nufarm Managing Director and CEO, expressed a positive outlook for the company. Nufarm expects continued momentum in new crop protection product launches and strong growth in Seed Technologies. The company anticipates trading challenges in the first half of FY24 but remains confident in returning to growth in the second half and meeting its FY26 revenue aspirations.