Nufarm (NUF) investor relations material

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 write-downs and higher expenses.

• Basic EPS fell to 7.2cps (down 33% y/y); net leverage rose to 4.5x, primarily due to omega-3 funding and FX translation.

• Formal review of Seed Technologies launched to explore capital structure options and unlock value.

Financial highlights

• Revenue: $1,811m (+3% y/y); Underlying gross profit: $532m (+5% y/y); Gross margin: 29.4% (+0.5ppt y/y).

• Underlying EBITDA: $206m (-6% y/y); Underlying EBIT: $103m (-15% y/y); Underlying NPAT: $38m (-24% y/y).

• Net debt increased 12% y/y to $1,362m; net leverage at 4.5x, or ~3.8x excluding omega-3 and FX impacts.

• Net working capital to sales improved to 39% (down from 47.1% y/y); inventory days reduced by 22 days y/y.

• Free cash flow remained negative due to seasonal working capital build and omega-3 expansion.

Outlook and guidance

• Seed Technologies EBITDA for 2H25 expected to be ~$20m below prior year if weak fish oil prices persist.

• Omega-3 revenue target of $100m for FY25 will not be achieved; inventory management options under review.

• Crop Protection outlook positive but subject to US tariff, weather, and trade policy uncertainties; management focused on cost reduction and capital efficiency.

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

• FY26 target capital expenditure is ~$200m, with deleveraging actions expected to bring leverage to 1.5–2x EBITDA.