Nufarm rallies after forecasting a 17% earnings growth in the first half

The news: Shares in global crop protection and seed technologies company Nufarm rallied in early trade after the company forecasted a 17% year-on-year increase in underlying earnings before interest and tax (EBIT) for the first half.

The numbers: Shares were up 10.36% to $2.45 at 10:49am AEST.

The company expects its first-half underlying EBIT to be between $239 million and $244 million, with net debt of approximately $1.23 billion as of 31 March, a $130 million decrease from the prior corresponding period.

The context: Nufarm said the stronger EBIT in the first half was due to higher margins in crop protection, growth in hybrid seeds and a stronger performance in its omega-3 and bioenergy platforms.

The agriculture tech company also unveiled an additional $50 million cost saving strategy, with the cash implementation costs expected to be roughly $15 million and weighted towards FY27.