Nufarm (NUF) H1 2025 earnings summary

Executive summary

• Revenue increased 3% year-over-year to $1,811m for 1H25, driven by Crop Protection recovery, but offset by lower Seed Technologies licensing and omega-3 margins.

• Underlying EBIT declined 15% year-over-year to $103m, impacted by lower omega-3 earnings and a $28m inventory write-down.

• Statutory net profit after tax fell 39% to $29.8m, mainly due to omega-3 inventory write-downs and higher expenses.

• No interim dividend declared, reflecting leverage, capital management, and free cash flow priorities.

• Actions underway to improve free cash flow, reduce costs, and de-leverage the balance sheet.

Financial highlights

• Underlying EBITDA was $206m, down 6% year-over-year; underlying EBIT $103m, down 15% year-over-year.

• Gross profit increased 9% to $524.6m; gross margin expanded by 0.5ppt to 29.4%.

• Net debt at March 25 was $1.36bn, up 12% year-over-year; net leverage at 4.5x underlying EBITDA.

• Average net working capital to sales improved to 39.2% from 47.1% in the prior year, driven by inventory reduction.

• Inventory days reduced by 22 days year-over-year, on track for a 25-day reduction by year-end.

Outlook and guidance

• Seed Technologies' H2 underlying EBITDA expected to be ~$20m below prior year if weak fish oil prices persist.

• Omega-3 revenue target of $100m for FY25 is no longer expected due to fish oil price declines; inventory management options under review.

• Crop Protection outlook positive but subject to US tariff, weather, and trade policy uncertainties.

• On track for $50m annualised cost savings and a 25-day year-on-year inventory reduction by end FY25.

• FY26 capital expenditure targeted at $200m, with FY25 CapEx expected at $240m due to strategic investments.