Nufarm (ASX: NUF) expects new product launches to drive revenue growth

4 min read | January 29, 2024 01:04 PM AEDT | By Team Kalkine Media

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Nufarm (ASX: NUF) expects new product launches to drive revenue growth — Image source: © Lovelyday12 | Megapixl.com

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Highlights

Australia based company Nufarm markets and manufactures chemicals

In FY26, the company expects to report revenue of AUD 4.6 billion, supported by innovative crop protection products.

Allan Gray Australia Pty Ltd has the highest stake in the company with a shareholding of 15.01%

Nufarm Limited (ASX:NUF) is an international seed technology and crop protection firm that aids growers to fight pests, weeds and diseases for over 10 decades. The company offers assistance by manufacturing and developing Beyond Yield^TM seed technologies and crop protection solutions. it is the first company to come up with plant-based Omega-3 and commercialize it.

In the financial year 2023 (FY23), the company’s Seed Technologies had executed multiple milestones in biofuels and Omega-3. On the other hand, the Crop Protection segment witnessed a fall in active ingredient prices for foundational products over the prior corresponding period.

During the reported period, the company posted 3% YoY fall in group revenue to AUD 3,481 million, 2% YoY decreased in uEBITDA to AUD 438 million and 67% YoY growth in uEBITDA of Seed Technologies to AUD 98 million.

Top 10 shareholders of NUF

The top 10 shareholders of NUF have around 59.69% of the shareholding in the company, while the top four have 41.41% shareholding. Allan Gray Australia Pty Ltd and L1 Capital Pty Ltd. have the maximum stake in the company, with a shareholding of ~15.01% and ~14.70%, respectively.

Recent business update

Through an ASX update dated 23 January 2024, the company informed that Gregory Allan Hunt had changed its interest in the company by acquiring 61 shares by CPU Plans Pty Ltd.

On 16 January 2024, the company notified that State Street Corporation and its subsidiaries had increased their voting rights in the company from 5.03% to 6.39%, as of 12 January 2024.

Outlook

In FY24, the company expects to report further growth in Seed Technologies’ EBITDA, backed by continuous investment in scaling Omega-3 and biofuels platforms. Moreover, the company expects to continue momentum in new product launches under the crop protection segment.

NUF seeks growth through existing pipelines and new product introductions. Focus is on geographical expansion and partner relationships.

In FY26, the company expects to deliver revenue of AUD 4.6 billion, driven by increased customer relevance products and market share.

Share performance of NUF

NUF shares closed 0.93% down at AUD5.43 apiece on 29 January 2024 with a market cap of AUD 2.05 billion. Including today’s gain, NUF’s share price has dropped by almost 8.43% in the last 12 months and in the last three months, it has increased by 26.28%.

The 52-week high of NUF is AUD 6.14, recorded on 18 May 2023, while the 52-week low is AUD 4.29, recorded on 31 October 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 29 January 2024. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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