NUF -9.8%: This was not an FY24 result from the agricultural chemical business, just an old-fashioned surprise downgrade that led to the stock’s hammering on Thursday; perhaps boss Greg Hunt hoped it would go unnoticed amongst the plethora of earnings news.
- NUF now expects underlying earnings before interest, taxes, depreciation and amortisation of $300 million to $330 million for its full year ending September 30, compared to previous guidance of $350 million and $390 million
- The company’s net leverage will also be much higher at 2.5-2.7 times underlying EBITDA.
- This compounded the previous guidance delivered by NUF during its half-year results in May, which were at the time well below consensus forecasts of $438 million.
The downgrade follows intense competition in the farm chemicals sector in North America and weaker-than-expected demand in Europe. With management unable to forecast when the company’s trading backdrop will improve, we see no reason to fade this aggressive pullback.
MM has no interest in NUF
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