• Strong recovery in Crop Protection with actions to improve returns and free cash flow
• Seed Technologies and new/emerging technologies performing well
• Clear actions to improve profitability, deliver higher returns and de-leverage the balance sheet

Nufarm Limited (ASX: NUF) has reported its HY25 results, showcasing a strong recovery in its Crop Protection business, solid performances across Seed Technologies and new/emerging technologies, and clear actions to improve profitability, deliver higher returns and de-leverage the balance sheet. The company's Crop Protection segment benefited from normalising market conditions and an improved cost of goods position, driving a 4% increase in revenue. Seed Technologies and new/emerging technologies, including hybrid seeds, omega-3, and bioenergy, also contributed to the overall performance. Nufarm has implemented measures to improve profitability, such as actions to reduce net debt and leverage, which was impacted by lower omega-3 earnings and foreign exchange translation. The company's net working capital improved by around $100 million year-on-year, with a focus on inventory management. Nufarm's capital expenditure increased to support Seed Technologies, plant health and safety, and growth opportunities, with expectations of a moderation in requirements from the second half of FY25 and into FY26. The company remains well-positioned, but acknowledges several uncertainties that could impact the second half of the year.

Nufarm expects a 15% year-on-year decline in its omega-3 business in FY25 due to market conditions.

Nufarm is well-positioned for the second half of FY25, but acknowledges several uncertainties that could impact the company's performance, including market conditions, regulatory decisions, operational changes, and global economic and geopolitical factors.