Nufarm lowers sights

Nufarm reported a 53% fall in first-half profit, with profit dropping to $8.4 million.

Nufarm slashed its full-year outlook after booking the 53% fall in first-half profit; the company said weaker demand and foreign exchange losses were the main reasons.

Hot, dry conditions in Australia reduced demand for Nufarm's crop protection products, which directly hurt sales and profitability.

Foreign exchange losses were cited by Nufarm as an additional factor that hurt the company’s first-half profit and contributed to the lowered outlook.

Crop protection products are the agricultural chemicals Nufarm supplies; demand for these products drives the company’s revenue, so changes in demand—like those caused by weather—can materially affect Nufarm's financial performance.

A 53% decline to $8.4 million is a substantial drop that prompted Nufarm to lower its full-year outlook, signalling weaker near-term performance that investors should take into account.

The article notes the drivers—reduced demand from hot, dry Australian conditions and foreign exchange losses—so investors may want to monitor Nufarm’s updates on seasonal demand and currency impacts before making decisions.

According to the company, the key reasons were reduced demand for crop protection products due to hot, dry conditions in Australia and losses from foreign exchange movements.