What Happened to the Nufarm Limited Share Price?
Nufarm Limited [ASX:NUF] is a global crop protection company. They also develop, manufacture and sell a range of crop protection products. They’re also in the seed technologies business, focussing on canola, sorghum and sunflower crops.
The share price closed 4.65% higher on Wednesday.
Why Did This Happen to the Nufarm Limited Share Price?
In spite of full year profit falling 53%, shareholders liked the other numbers out of the company’s 2014 financial report.
Overall sales revenue grew 15% to $2.6 billion. And net profit after tax (NPAT) was up 4% to $86.4 million. NPAT is the better looking number as the restructuring costs associated with the Australia and New Zealand side of the business were left out.
The final year dividend was five cents per share. Bringing the total dividend to eight cents — the same as last year.
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What Now For NUF?
Sales revenue this year was fairly evenly split between North and South America, Europe and Australia. However, for two years in a row, Asia only accounted for 6% of total sales revenue.
There is incredible room for expansion here if Nufarm Limited tackle this effectively.
The CEO of Nufarm, David Rathbone, commented that two years of Australian drought did affect its Australian side of the business.
However, seasonality will always affect this company. It’s can’t use any statements like this as an excuse for poor financial performance.
Until yesterday, the stock was in a down trend. But the financial results have seen the share price rise 10.21%. There will be a selloff in the next couple of days as some investors take profits. Expect the share price to hover a few cents either side of $4.25 while the market decides if it believes the company will have a better 2015.
Shae Smith+
Editor, Money Weekend
The post Why did the Nurfarm Limited Price Rise Today? appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
