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Highlights

  • Nufarm says its earnings miss did not materially differ from market expectations despite a 33% share price plunge.

  • ASX raised concerns about a potential continuous disclosure breach following the 1H25 results.

  • Company cites other factors including fish oil price pressure and a strategic business review as possible contributors to the selloff.

Agricultural chemicals company Nufarm Ltd (ASX:NUF) has pushed back against suggestions it breached continuous disclosure obligations after its half-year earnings report triggered a sharp 33% fall in its share price.

The ASX issued an Aware Letter to Nufarm on 23 May, requesting clarification as to whether the company failed to disclose material information in a timely manner. This follows Nufarm’s 21 May announcement of a 39.5% year-on-year drop in earnings for the six months ended 31 March 2025. Its shares plummeted from AU$4.02 to AU$2.81 on the day of the earnings release.

In its formal response, Nufarm insisted that the earnings decline was not materially different from market expectations. The company said the drop in 1H25 EBITDA, adjusted for omega-3 inventory valuation changes, was expected to be around 10% below consensus forecasts — short of the 15% threshold that ASX guidance generally uses as a benchmark for mandatory disclosure.

“The board received a recommendation on 16 May regarding adjustments to the omega-3 inventory, which was reflected in our final earnings,” Nufarm said in the ASX filing. It also noted that its revenue result was within 3% of consensus, further supporting its stance that the results were largely anticipated by the market.

The company went on to argue that while EBIT and NPAT saw larger percentage drops, they are not considered primary performance indicators for Nufarm, due to the inherent sensitivity of these smaller numbers to changes in EBITDA.

Nufarm also sought to highlight external market factors that may have contributed to the steep share price fall, including:

  • Ongoing pressure on fish oil prices, which impacts its omega-3 business segment;

  • A rise in net debt and leverage, which may have spooked investors;

  • And the announcement of a strategic review of its seed technologies business, signaling potential structural changes.

Despite the company’s response, some market participants remain cautious. The fact that the stock has now lost a third of its value in just a few trading days raised eyebrows, even as shares rose 1.82% to AU$2.52 on Monday morning.