Nufarm’s Australia and New Zealand segment is expected to post a first half loss after the agricultural and chemical company was hammered by climate extremes in Australia during the bushfire crisis.
Nufarm has updated the market on the last two months of trading since its warning in November that weak demand and unforeseen sales rebate claims would wilt its half-year result.
Nufarm said it expects its earnings before interest, tax, depreciation and amortisation to be in the range of $55 million to $65 million for the company’s first half, which ends on January 31.
That’s about half its underlying earnings before interest, tax, depreciation and amortisation of $120.9 million for the prior first half.
“In Australia we have experienced a significant reduction in sales due to a continuation of extreme climatic conditions,” Nufarm says in its update to the market.
The impact has been partially offset by savings from the performance improvement program and there is some potential for increased sales in the remainder of the first half of the financial year due to recent and forecast rainfall.
But it is expected the Australia and New Zealand segment will record a loss before interest, tax, depreciation and amortisation for the first half, the company said.