Agrochemicals company Nufarm Limited (ASX:NUF) today reported a significant year-on-year revenue growth of 23% in the 2 months to the end of September. This growth was driven primarily by stronger sales in Australia and Europe.
At the time of writing, the Nufarm share price is trading up 1.45% at $4.21.
What else did Nufarm announce?
The company’s gross profit increased 9% on prior comparative period, while underlying earnings before interest, tax, depreciation, and ammortisation (EBITDA) was up by 18%.
In terms of geographical results, revenues in Australia and New Zealand increased 37%, with improved weather conditions in Australia driving good demand for herbicides. Meanwhile, revenues in Europe also lifted significantly by 38%. North America was up by just 4% after storms and bushfires impacted sales.
Nufarm says the sales momentum has continued in all regions through October, providing the company with a good to start to FY21.
What does Nufarm do?
With origins dating back more than 100 years, Nufarm is a global manufacturer of crop protection solutions and seeds. Nufarm’s products are designed to protect commercial crops from a variety of pests, weeds, and diseases, thereby maximising crop yields. It first listed on the ASX in 1988.
Nufarm share price performance this year
The Nufarm share price has lost almost 30% in 2020. The company recorded a statutory net loss after tax of $362 million. This was attributed to weak seasonal conditions faced in the first 6 months and the effects of COVID-19. The company has continued to suspend all dividends until further notice. The board said it would revisit this decision in future based on the prevailing market conditions.
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