Here’s why Nufarm’s (ASX:NUF) shares closed on a higher note today?

More on:

Image Source: © Lovelyday12 | Megapixl.com

Highlights

  • Nufarm has declared a dividend of AU$0.06 per security for the second half of FY22 ended 30 September.
  • The company delivered 118% growth in terms of unaudited Net Profit after Tax (NPAT) to AU$133 million in FY22.
  • Nufarm has inked a five-year Canadian distribution agreement with Sumitomo.

Shares of Nufarm Limited (ASX: NUF) closed on Wednesday, 16 November, with an upsurge of nearly 9% at AU$5.90. The gain in share price was driven by the dividend announcement made by the company, which published its full-year results for FY22.

Nufarm is focused on seed technology and crop protection solutions. It has developed and commercialised the first plant-based Omega-3.

Dividend announced for the second half

Nufarm has declared an ordinary fully paid dividend of AU$0.06 per security for the second half of FY22 ended 30 September.

In its annual report, it has mentioned total dividend of 10cps.

FY22 snapshots

Nufarm claims to have delivered record revenue and earnings with growth in all geographies. It reported a 17% surge in revenue to AU$3.8 billion and a 118% surge in unaudited Net Profit after Tax (uNPAT) to AU$133 million.

The company states that its outstanding working capital outcome contributed to the positive free cash flow irrespective of the challenges in the global supply chain.

The seed technologies revenue grew 23% compared to the prior corresponding period (pcp), and unaudited EBITDA jumped by 26%.

In the month of January, Nufarm secured high-yield bond refinancing. In November, the company entered an AU$800 million Asset Based Lending credit facility (ABL facility) along with an AU$150 million stand-by facility in order to de-risk its capital structure.

Below are the highlights from the crop protection segment of the company for the reported period:

  1. Registered above-market growth
  2. Upped investment in Enko and Crop.Zone
  3. Launched new products across different geographies: Saracen®, Terrad’or® and Trunemco®
  4. Inked a five-year distribution agreement for Canada with Sumitomo
  5. It is undertaking an evaluation of many new, early-stage research leads from external research & development partners

Outlook

Nufarm says that it is on its way to meet or even exceed its revenue aspirations for FY26, and that it is now positioned as an agricultural innovator.

Crop protection – According to data from Agbioinvestor, the global market of crop protection is expected to grow at 2.3%. However, the company’s aspiration is to achieve above-market growth by means of existing pipeline, new product introductions and winning shares. The company says it is on track for launching new products in FY23. The company remains hopeful that increasing prices will drive strong demand for sunflower, canola, and sorghum seeds.

Omega-3 - The company is aiming to increase market adoption and production in CY23.

Bioenergy - For Energy cane, the company wishes to upscale its research, development and commercial teams in order to expedite and expand product adoption.

 

 

 

 



 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and