Nufarm shares jump after it posts a solid full-year profit

The news: Shares in Nufarm have lifted after the agricultural chemicals supplier posted better than expected full-year numbers.

The numbers: The company reported a statutory profit of $111 million for the year to 30 September, a 3% increase on the previous year. Underlying profit was down 8% to $22 million, while revenue slipped 7.7% to $3.48 billion, but both were better than expected amidst challenging industry conditions. It helped Nufarm shares lift more than 7% to $4.77 in early trading on the ASX.

The context: Nufarm managing director Greg Hunt called the result ‘strong’ given the challenging global conditions in FY23, but he expects trading to remain challenging in the first half as the industry adjusts to a lower level of input cost and prices. Nufarm is likely to return to growth in the second half of the 2024 fiscal year, he said. Nufarm shares are still down 20% in the last year, in line with other agriculture exposed stocks, amid widespread destocking in the sector due to higher interest costs and expectations of lower ingredients prices.