Nufarm Limited (ASX:NUF) announced that while reconciling accounts with German customers for CY19, the company has identified additional sales rebate claims from its customers.
- This matter was immediately investigated with the external auditors, and the company is undertaking an immediate review of internal control processes and procedures.
- Nufarm also identified that trading conditions have been tough for FY20 to date, resulting in lower earnings in all regions for the first quarter compared to the prior year.
- The company’s first-quarter EBITDA of ~$20 million is below the corresponding period for the North America region due to high channel inventory and low demand.
- However, the proposed sale of the South American business is expected to occur in the second half of FY20, subject to shareholder approval.