Global agricultural company Nufarm expects to reap the full benefits of $50 million of annualised cost savings in the 2026 financial year (FY26).
Nufarm, which provides crop protection and seed technology products, said it had made a pleasing start to FY25 following a challenging year in FY24 for the crop protection industry.
Managing Director and CEO Greg Hunt said the company had identified $50 million of annualised cost savings.
“The full impact of these savings is expected to be realised in FY26,” Hunt said in a speech to the annual general meeting.
He said demand for crop protection products had been strong and, although active ingredient prices had not moved materially, Nufarm was seeing the benefits of stability in the cost of goods on crop protection margins.
It expected to achieve $100 million in revenue from omega-3 fatty acids in FY25, subject to market pricing, and it was well advanced in plans for planting carinata, a crop grown as a source of biofuel feedstock, in South America for its 2025 crop.
Hunt said Nufarm expected expect net working capital at the half year to be marginally higher than the prior year, mainly due to additional working capital for its omega-3 platform and movements in currency.
Founded more than 100 years ago in New Zealand, the company operates in more than 100 countries.
Nufarm (ASX: NUF) shares closed down nine cents, or 2.47%, at A$3.56 on Monday, capitalising the company at $1.36 billion.