Nufarm slump continues after fall in half-year profit

The news: Shares in agricultural chemicals supplier Nufarm fell further on Thursday after it reported a major fall in statutory profit on Wednesday and said its seed technologies business is being reviewed due to weak performance.

The numbers: Nufarm’s share price was down 8.54% to $2.57 at 12:46pm AEST, the lowest since 2001. Over the last 12 months, Nufarm’s share price is down 49.71%.

The context: Nufarm reported a 39.5% fall in its statutory profit over the six months to 31 March and underlying earnings were down 15%. The company did not declare an interim dividend, unlike the 4 cents a share it paid the preceding year.

Underlying earnings in Nufarm’s seed technologies business fell 71% as licensing revenue fell, drier Australian conditions led to lower canola sales, and a large fall in fish oil prices cut margins on omega-3.