Nufarm Ltd (NUFMF) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you Ashley. Good morning everyone. Welcome to New Farm's 2024 interim results presentation and thank you for joining us today. Before we get into the presentation I'll just pause for a moment and draw your attention to the disclaimer on slide two and in particular the statement relating to forward-looking statements. Experiencing challenging conditions during the half, we continue to be pleased with the progress that we're making on our strategies, which aim to deliver long-term value for our shareholders. In the context of the industry conditions that we faced, New Farm delivered a solid result for the first half of financial year 24. For the period, we reported underlying EBITDA of $217 million and statutory NPAT of $49 million. we declared an interim dividend of $0.04 per share. We remain focused on our strategy, achieving important milestones in crop protection and in our seeds, Omega-3 and Carinata platforms. Now to the piece that I'm sure you're all looking for. For the financial year 24, we expect EBITDA of between $350 and $390 million. The midpoint implies a reduction of 16% from financial year 23 and 17% from record EBITDA reported in financial year 22. As we continue to move to more normal supply-demand dynamics, we expect a stronger second half than in financial year 23. The midpoint implies growth of 25% year-on-year in EBITDA in second half 24. Whilst we're never satisfied with the decline in earnings, that would be a very solid result in the context of the conditions that have been faced by the industry. Our balance sheet position remains strong. Despite an increase in average working capital during the period, we remain very focused and committed to driving efficient use of capital through our business and we expect average net working capital t...