Nufarm Ltd's Share Price Skyrockets Post FY 2023 Results Release Amidst ASX 200's Rally - Kalkine Media

November 15, 2023 09:12 PM AEDT | By Team Kalkine Media
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Amidst a robust rally in the S&P/ASX 200 Index today, investors are fervently pushing up Nufarm Ltd (ASX: NUF) stock following the release of its FY 2023 results. While the broader market enjoys a notable surge of 1.42% after subdued US inflation readings, Nufarm stands out with a remarkable leap.

Nufarm's stock, a player in agricultural chemical and seed technology, ended yesterday's trading session at AU$4.45. Today, the shares closed at AU$4.81, witnessing a significant surge of 8.09%.

The spike comes in the wake of Nufarm's disclosure of its FY 2023 results covering the 12 months ending on September 30. Here are the key takeaways from the announcement:

Performance Overview:

Nufarm's statutory net profit after tax (NPAT) exhibited a noteworthy 3% year-on-year increase, reaching AU$111 million.

However, the underlying NPAT faced an 8% decline from FY 2022, standing at AU$122 million. Additionally, the company reported a 3% revenue dip for the fiscal year, totaling AU$3.5 billion.

On a positive note, the underlying earnings before interest and taxes (EBIT) showcased a 6% upsurge from the previous year, amounting to AU$250 million. Nufarm's net leverage stood at 1.9 times as of September 30, aligning within the company's targeted range of 1.5 to 2 times.

Moreover, the management declared a final unfranked dividend of 5 cents per share, contributing to a total full-year payout of 10 cents per share, equating to a yield of 2% based on the current Nufarm share price.

CEO's Perspective:

Nufarm's CEO Greg Hunt acknowledged the robust performance, particularly highlighting the company's transformation and its increasing focus on innovative solutions. He emphasized the record year in comparison to FY 2022.

Hunt attributed the positive results to Nufarm's transformed structure and the emphasis on innovative solutions, particularly noting the double-digit growth in the Seed Technologies segment.

Future Outlook:

While Hunt acknowledged the anticipated challenges in the industry's initial half of FY 2024, he expressed confidence in Nufarm's return to growth in the latter half. He emphasized the industry's adaptation to lower input costs and prices.

Looking ahead, Hunt indicated a positive trajectory, expecting growth in the second half and reaffirming the company's commitment to meeting its revenue aspirations for FY 2026.


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