AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Nufarm (NUF) shares tumbled over 25% following weak first-half earnings.
- Lower fish oil prices and cost pressures weighed on profitability.
- Guidance for omega-3 segment downgraded; no interim dividend announced.
Shares of crop protection and seed technology company Nufarm (ASX:NUF) saw a significant decline of over 25% during Wednesday’s trading session, following a disappointing half-year financial update. The company reported a sharp drop in profit, revised its earnings guidance for the full year, and flagged ongoing market uncertainty, sparking concerns among investors across the broader S&P/ASX200 index.
In its half-year results, Nufarm posted a statutory profit of $29.8 million—down significantly from $79 million in the previous comparable period. Underlying net profit also declined by 24%, highlighting operational pressures in the company’s key markets. The primary culprits behind the downturn included softening prices in the omega-3 (fish oil) segment and an increase in operating costs.
Nufarm’s Seed Technologies segment, which includes its omega-3 product line, has been particularly affected by these market conditions. The company noted that if the weak fish oil pricing environment persists, second-half EBITDA from this segment could fall approximately $20 million short compared to the same period last year. Moreover, management no longer expects to meet its earlier goal of $100 million in omega-3 revenue for the fiscal year.
Adding to the concerns, Nufarm highlighted uncertainties around global tariff policies, especially in the U.S., which could further impact its crop protection operations. The company pointed to risks related to supply chain dynamics, demand fluctuations, and price volatility.
In response to the earnings downgrade and market challenges, Nufarm decided not to distribute an interim dividend for the half-year period—a move that could influence its standing among those tracking leading ASX dividend stocks.
The sell-down in Nufarm’s shares had ripple effects across the agriculture and chemicals sector, weighing on broader market sentiment, particularly within the benchmark S&P/ASX200 index. Investors are now closely watching how Nufarm plans to manage its omega-3 inventory and whether any operational restructuring will be undertaken to regain performance momentum.
With global market headwinds and product-specific challenges in play, the company’s second-half performance will remain a key area of focus for market observers tracking trends in the agricultural and chemical industries.
