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 $102.7m, mainly due to omega-3 weakness, inventory write-downs, and higher overheads.

• Statutory net profit after tax fell 39% to $29.8m, with underlying NPAT down 24% to $38.5m, impacted by omega-3 and portfolio expenditure.

• 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 $205.9m, down 6% year-over-year; underlying gross profit margin expanded by 0.5ppt to 29.4%.

• Net debt increased 12% year-over-year to $1.36bn, with 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.

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

Outlook and guidance

• Seed Technologies' H2 EBITDA 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 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 in annualized cost savings by end FY25 and a 25-day year-on-year inventory reduction (excluding omega-3).

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