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Highlights

  • Nufarm is an ASX-listed seed technology and crop protection company
  • In 1HFY23, the company recorded a 6.77% surge in underlying NPAT and a 2.70% growth in underlying EBIT
  • Allan Gray Australia Pty Ltd has the highest stake in NUF with the shareholding of nearly 14.05%

Nufarm Limited (ASX: NUF) is an international seed technology and crop protection company primarily operating in the off-patent market. The company’s primary activities are seed technologies business and manufacturing and selling crop protection products.

The ASX-listed agri-chemical company registered a 6.77% increase in underlying NPAT to AUD 142 million in the first half of the financial year 2023 (1HFY23). The NPAT was driven by the rise in demand for the NUF’s core seed portfolio, including sunflower, canola and sorghum seeds.

During the same period, underlying EBIT grew by 2.70% to AUD 228 million; however, revenue fell by 1.36% to AUD 1,955 million. Its revenues were affected by crop protection revenue from APAC, which recorded a fall of 6% YoY.

Here’s the historical financial trend of Nufarm.

Top 10 shareholders of NUF

The top 10 shareholders of NUF hold approximately 56.35% of the shareholding in the company, while the top four shareholders together have a 36.87% stake in the company. Allan Gray Australia Pty Ltd and L1 Capital Pty Ltd have the highest stake in the firm, with a shareholding of ~14.05% and ~12.11%, respectively.

Recent business update

Through the recent update dated 25 August 2023, the company shared that State Street Corporation and its subsidiaries have become a substantial shareholder in the company with a voting power of 5.01%.

Through another ASX filing, the company informed that L1 Capital Pty Ltd and its entities increased their stake in the firm to 12.11% on 18 July 2023, which was 10.93% on 19 June 2023. 

Outlook

NUF informed that it is witnessing increased demand for its crop and seed protection products in 2HFY23. If seasonal conditions remain the same, then moderate EBITDA growth is anticipated in FY23 on a constant currency basis.

The company expects a reduction in inventory as growers need to meet seasonal deadlines and stocks are consumed closer to the use period.

NUF said that it expects its leverage to return below or within the targeted range of 1.5-2.0x net debt to underlying EBITDA by the end of September 2023.

Share performance of NUF

NUF shares closed 1.62% up at AUD 5.02 apiece on 28 August 2023. Including this gain, NUF's share price dropped by 16.75% in the last nine months and 12.69% in the past six months. Year-to-date fall is 18.10%.

The 52-week high of NUF is AUD 6.410 apiece, recorded on 9 December 2023, and the 52-week low is AUD 4.850 apiece, recorded on 27 June 2023. NUF's existing share price is 21.68% lower than its 52-week high.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 28 August 2023. The reference data in this report has been partly sourced from REFINITIV.