Nufarm has announced a strong increase in full year earnings driven by growth across all its business segments in the 12 months ended 30 September 2022.
The company reported earnings before interest, tax, depreciation, amortisation and material items (underlying EBITDA) of $447 million, an increase of 24% on the prior corresponding period (pcp), on revenue of $3.8 billion, up 17%.
Statutory net profit after tax was $107.4 million, up 65%, and underlying net profit after tax was $133.2 million, more than double the previous financial reporting period.
The Board declared an unfranked final dividend of six cents per share, taking the total for the year to ten cents per share.
Nufarm managing director and CEO Greg Hunt said, “This result reflects the hard work we have done over recent years to reset the business, our focus on core products and key geographies together with our increased investment in innovation and sustainability.
“Favourable seasonal conditions and attractive soft commodity prices generated strong demand for our seeds and crop protection products. Our seeds business continued to increase earnings as a result of strategic investments in innovative technologies.
“Conditions remain favourable as we enter into the FY23 financial year, and we are on track to meet or exceed our FY26 revenue aspirations.”
The APAC segment performed strongly with underlying EBITDA of $135 million, an increase of 21% on pcp. Despite industry supply chain challenges, Nufarm performed strongly, leveraging the capabilities of local manufacturing infrastructure.
Seed Technologies’ underlying EBITDA increased 26% to $59 million. The company announcement said increased revenue from seed sales reflected the stronger demand for Nuseed’s hybrid canola varieties, sorghum and sunflower across various markets.
Internationally, new strategic initiatives, including a ten-year offtake and market development agreement with BP to sell Nuseed Carinata oil, and the US$25 million acquisition of energy cane assets from the Brazilian industrial biotechnology group GranBio, are expected to accelerate growth.
“We made significant progress on all our strategic growth initiatives across omega-3, bioenergy, seeds and crop protection; and we have a promising pipeline of opportunities,” Mr Hunt said.
“Our strong balance sheet positions us well to benefit from opportunities as they arise, and we are pleased to report the increased dividend for our shareholders.
“Our revenue growth aspirations are supported by macro trends, including the increasing demand for food from a rising global population, and the demand for sustainable agricultural practices to increase land productivity.
“Nufarm is focused on providing solutions to help farmers improve their productivity in a sustainable way and developing new plant-based technologies and products that address environmental concerns.
“Assuming normal seasonal conditions and on a constant currency basis, we are planning for modest underlying EBITDA growth in FY23,” Mr Hunt said.
