Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Nufarm (ASX:NUF) reveals FY20 guidance and impairments

Nufarm Limited (ASX: NUF) has announced an earnings estimate for its FY20 and also revealed impairments. The Nufarm share price is on watch.

Nufarm is an agricultural chemical company with global operations.

Source: Rask Media NUF 1-year share price chart.

Nufarm’s FY20 guidance

Nufarm announced that it expects to recognise a major impairment in the FY20 result. It expects that the value of its European assets will be impaired by approximately $215 million, comprising a $190 million impairment of intangible assets and a dercognition of tax assets of around $25 million.

This is due to the recent operating performance and lower outlook for future earnings based on margin pressure because of higher manufacturing costs and increased competition.

Nufarm CEO Greg Hunt said: “We believe the European business has reached an earnings trough in FY20, however it is appropriate to take this step to revise the carrying value of the assets.

We have a comprehensive improvement program underway in Europe to grow revenues, reduce our cost to serve and lift margins. We expect this program, combined with an anticipated easing in raw material costs and improved weather conditions would be the major drivers of improved profitability in the European business in FY21.”

In terms of financial guidance, Nufarm expects underlying EBITDA to be between $290 million to $300 million (click here to learn what EBITDA means). After the sale of its South American businesses, underlying EBITDA from continuing operations is expected to be between $230 million to $240 million.

The drought breaking in Australia has helped, with second half underlying EBITDA doubling in ANZ with a good outlook for summer. EBITDA is also up in North America, particularly Canada. Asia is also benefiting from improved weather. However, Europe has declined heavily due to hot, dry weather.

Summary

I’m not sure if the Nufarm share price is a buy, I don’t know enough about the company. But it seems like a variable business, which can be tough. I prefer consistently growing ASX growth shares like Pushpay Holdings Ltd (ASX: PPH).

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.