Nufarm announces review into seed technologies
Global crop protection business Nufarm has announced a review of its seed technologies portfolio, as it handed down its first half results.
Global crop protection business Nufarm has announced a review of its seed technologies portfolio, amid a slide in 1H25 profits.
In a release to the Australian Securities Exchange on Wednesday, Nufarm announced a $29.8m statutory net profit after tax for 1H25, down 39 per cent from $49.1m in the corresponding period.
Nufarm reported a 3 per cent rise in revenue to $1.81bn, while the underlying NPAT was $38.5m, down 24 per cent on the prior corresponding period.
The company’s share price had fallen by 27 per cent as of 11:30am on Wednesday morning to $2.92.
Seed Technologies reported an underlying EBIT of $15.9m, a 71 per cent decline on the prior corresponding period, due to lower licensing revenues, lower margins in omega-3 and lower canola revenues in Australia.
Drier conditions in Australia negatively impacted its sales of canola, however, sorghum sales were up following poor conditions in South America in FY24, while sunflower delivered steady returns across US, Europe and South America.
A significant fall in fish oil prices negatively impacted Nufarm’s margins for omega-3, but with prices at a five-year-low, the company still sees a pathway to long term profitability in the sector, through a growing demand driven by rising incomes, urbanisation and dietary trends.
In a presentation to investors, chief executive Greg Hunt said it was the “right time to explore ownership structures to support and accelerate the next state of commercialisation” of the seed technologies portfolio.
Nufarm has engaged UBS to assist with the review, with an update expected at the end of CY25.
Mr Hunt said the company’s crop protection portfolio had improved on the back of favourable seasonal conditions in Europe, but that several uncertainties, including the US tariff situation and whether current dry conditions in Australia would continue, make it difficult to make projections for the second half of FY25.
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