NUF +3.37%: Held their FY24 AGM and provided a decent trading update, mostly reiterating what was set out in the November 2024 full-year result. Things are looking better, margins are improving as the cost of inputs remains the same, an indicator they are cleaning things up on the operational side.
The Omega-3 revenue target for FY25 is around $100m, up from the $50m set out prior. Management has also reaffirmed ~$50m in cost-savings to be achieved in FY26. The big positives are that inventories are clearing, costs have stabilized, and aggressive discounting by competitors has eased.
Given the ~40% decline in share price since March 2024 to now, we think Nufarm is past the worst of it. We’d like to see specific details around the cost-savings, how these will materialise, and further price appreciation in the crop and seed markets before we turn more bullish.
