Skip to Content

Australian Investment Blog

ASX:NUF 23/07/2018

Nufarm’s margin dries up in the drought

Stock

Nufarm (NUF) $7.80 as at 23/07/2018

Event

Crop protection company Nufarm heavily discounted earnings expectations pre-market this morning. Pointing to a serious deterioration in business conditions for the ANZ arm. This downgrade, now the second for the year after revising EBIT guidance to ~$315mil in May, lowers full year EBIT guidance by around another 17% to $255-$270mil. “One of the driest autumns” in the past 100 years has seen sales fall significantly and margins squeezed while the market remains in oversupply. Many growers have been unable to plant and “it was now considered unlikely that a viable crop season would occur in many parts of the country” the company said. The company expects these headwinds to continue into the next financial year as crop protection products remain in storage. Nufarm (NUF) Chart Nufarm chart

Market Matters Take/Outlook

Nufarm appears to have entered a ...

Back to top