Nufarm lifts full-year profit

Nufarm (NUF) expects to generate an improved earnings before tax in the current financial year on average seasonal conditions but said fiscal 2013 was characterised by "very challenging seasonal conditions" and a poor performance in Australia, despite lifting full-year profit.

The group's net profit attributable to members including material items increased by 12% to $81 million in fiscal 2013, compared with $72.6 million in the prior year. 

But its underlying net profit after tax fell by 27.9% to $83.2 million, compared with $115.4 million in the previous year.

The underlying figure removes material items, namely an after-tax loss of $2.2 million ($3.2 million pre-tax) for settlement of a class action.

The settlement agreement was amended to cover an expanded number of claims, with the company agreeing to pay a total of $46.7 million, compared to a previous figure of $43.5 million, with the additional settlement amount and related costs being reported as a material item. 

Revenue lifted by 4.4% to $2.28 billion, compared with $2.18 billion in the previous corresponding period. 

Nufarm will pay a final dividend of five cents per share, fully franked. 

The group forecasts a strong improvement in its Australian results, given a return to more normal seasonal conditions and demand patterns, but anticipates that excess inventory from last year's poor season may place pressure on margins in some segments.