Australia
March 22, 2017

Nufarm today released its financial results for the six months to 31 January, posting solid gains in revenues and profit.

Group revenues increased by 15% to $1.36 billion. Underlying earnings before interest, tax and amortisation (EBITDA) increased by 15% to $128.7 million and underlying earnings before interest and tax (EBIT) increased by 19% to $85.0 million.

Reported net profit after tax was $20.0 million, with no significant material items in the first half. This compares to a statutory loss after tax of $91.0 million in the first half of the previous year, which included one-off restructuring costs of $102.9 million.

Underlying net profit after tax was $19.8 million, up 67% on the $11.9 million reported in the prior period.

Nufarm Managing Director and CEO, Greg Hunt, said the results demonstrate that changes made to the business over the past 18 months are delivering positive outcomes and helping to build a platform for continued profitable growth. He said it was particularly pleasing to see the company generate that growth in a period where global market conditions were very competitive.

Revenue growth was achieved across all of Nufarm's regional crop protection businesses, except Europe, and by the company's seed technologies business.

Directors approved a 25%% increase in the half year dividend, which will be 5 cents per share, payable on 5 May.

Looking ahead to the balance of the year, Mr Hunt said the company remains on track to deliver improved earnings growth for the full year if normal seasonal conditions are experienced in the major cropping regions.

"We expect the global crop protection market to remain very competitive, with low soft commodity pricing prevailing due to the strong crop harvests in most key cropping regions."

"But with the benefit of our cost savings and performance improvement program, together with new product launches and improved customer relationships, I'm confident the business will continue to generate profitable growth."

Nufarm today also released an update on progress with its omega-3 canola program which has reached key regulatory milestones, with commercial production expected to commence in 2018 or 2019 (see separate Nuseed announcement released via ASX today).

Website: http://www.nufarm.com

Published: March 22, 2017