Azzet reports on three stocks with price moving updates today.
Nufarm jumps on mixed FY25 update ~
Shares in Nufarm (ASX: NUF) were up 9.8% by 1:50 pm AEDT (2:50 am GMT), with the market responding positively to revelations of an 18% lift for all regions of its core crop protection business, despite the agribusiness posting a significant statutory loss for the year.
While underlying earnings fell 3% to $302.5 million, what also captured the market’s imagination this morning was both the encouraging sentiment within management’s underlying commentary, and the group’s efforts to slash net debt by $538 million from the first half.
Management also alluded to good momentum in crop protection following record results in North American turf & ornamental and Asia, and a sharp turnaround in Europe.
Nufarm’s statutory net loss of $165.3 million for FY25 - underpinned by $142.4 million in mostly non-cash charges linked to a review of its Seed Technologies unit and a performance improvement plan - compares to a loss of $5.6 million in FY24.
Offsetting crop protection growth, the Seed Technologies business, which posted underlying earnings of $13.9 million - down from $62.6 million a year earlier – due to losses in Omega-3, which was negatively affected by a decline in fish oil prices.
In light of today’s result, the company's dividend remains suspended, and no final dividend was declared for FY25.
Commenting on today’s result, Nufarm CEO Greg Hunt told the market that the 18% lift in the core crop protection business reflects reduced deflationary pressure on selling prices as the year progressed, as well as benefits from an improved mix.
“We have a reprioritised strategy in Seed Technologies, with lower costs and capital requirements, a clear focus on growing hybrid seeds, expanding Bioenergy and reducing cash requirements for Omega-3,” said Hunt.
Looking ahead, Nufarm flagged underlying earnings growth and positive cash generation in FY26 and also expects its leverage to reduce to 2.0 by the end of the financial year, supported by growth in earnings and positive free cash flow.
Net debt - below the level anticipated in the company’s August update – is seen as a strong demonstration of its ability to deleverage through internal discipline and efficiency.
“We made good progress on cost and working capital and delivered a significant reduction in net debt from the first half,’ said Hunt.
“In FY26, we have good momentum in Crop Protection, clear direction and opportunity in Seed Technologies and are well placed to grow earnings, generate cash and reduce leverage.”
In a separate announcement today, the board told the market that Rico Christensen, Nufarm’s group executive, portfolio solutions, will succeed Greg Hunt as CEO and managing director.
Christensen will join the board as executive director on 1 December 2025 and will become CEO and managing director on 1 January 2026.
Since 20 May – when the company posted a first half 24% drop in underlying profit – the stock slumped from $4.02 to a low of $2.10 early June and since then has only managed to bounce moderately higher.
Nufarm has a market cap of $861 million; the share price is down 46% in one year and up 3% in the last week.
The stock’s shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Consensus is Hold.
Kathmandu rallies on strong quarterly update
Shares in dual-listed KMD Brands (ASX: KMD), formerly known as Kathmandu, were up 4.3% after the clothing retailer posted a strong 1Q FY26 update along with equally encouraging commentary.
Management described 1Q total group sales – up 8% - as encouraging ahead of the all-important Christmas retail trading period, which typically accounts for up to up to two-thirds of the sector’s annual profit.
Over the quarter, Kathmandu, the group’s largest brand and Rip Curl sales were up 13.9% and 6.6% respectively, while Oboz sales slid 1.3%.
Direct-to-consumer sales were also strong, with Kathmandu up 14% on a same-store basis and Rip Curl up 3%.
However, efforts to offload aged inventory and enhance the balance sheet position saw Group gross margin fall 120 basis points to 55.8%, with the group inventory at the end of October $8 million lower than a year earlier.
While the group’s wholesale order books are slightly ahead of last year, the company told the market today it’s on track to deliver $25 million in annualised savings in FY26 as part of its “Next Level” cost-reset and strategic growth program.
The group’s CEO, Brent Scrimshaw, also reminded the market that while first-quarter performance showed “early-stage momentum”, the half-year result will depend on a strong Black Friday and Christmas trading.
“Our focus remains on optimising the balance between sales and gross margin to make way for fresh new season product as we move into the traditionally more significant second quarter trading period,” said Scrimshaw.
“I’m pleased with the progress we have made to date against our ‘Next Level’ transformation plan. We remain disciplined in our approach to strategic growth investments and reducing our net debt in FY26.”
Meanwhile, KMD is on track to deliver NZ$25 million of annualised savings in FY26.
At FY25, KMD Brands announced a full-year statutory loss of NZ$93.6 million ($83.1 million).
Underlying earnings plummeted by 64.7% to $17.7 million, while the gross margin also experienced a decline, falling to 56.5% from 58.4%.
KMD Brands has a market cap of $174 million; the share piece is down 34% in one year and up 2% in the last week.
The stock’s shares appear to be in a near-term rally within a longer-term bearish trend.
Consensus is Hold.
OMG Group rallies after updating on exclusive SANDAI matcha deal
Shares in OMG Group (ASX: OMG) were trading flat this afternoon, after early gains of 10% as the health & wellness food company announced an exclusive five-year supply and distribution agreement with SANDAI, a premium matcha producer from Nagasaki, Japan.
The raw matcha manufactured by SANDAI is a premium-grade product sourced from established tea farms in Nagasaki.
The deal establishes OMG Group as Australia’s exclusive seller and distributor of SANDAI matcha products, providing the company with multiple channels to generate high-margin sales growth and capitalise on strong demand amid ongoing supply constraints for matcha products.
The agreement sets out a framework for the supply of 350,000kg of premium ceremonial-grade matcha annually.
OMG plans to integrate the matcha into its product lines, including Blue Dinosaur snacks and OMG beverage products, while also wholesaling raw matcha.
With strong global matcha demand and multi-channel sales opportunities across grocery, cafés, and ecommerce, OMG expects high-margin growth and near-term revenue from inbound wholesale enquiries.
Commenting on today’s update, management told the market that today’s agreement unlocks access to the global matcha market, which was valued at US$4.3 billion in 2023 and is expected to grow to US$7.43 billion by 2030.
“As part of our due diligence process in connection with the agreement, management has identified numerous high-margin sale opportunities through our multi-channel distribution platform which are expected to contribute materially to group profits,” said OMG group CEO, Alex Aleksic.
“We are pleased to be the exclusive distributor of SANDAI’s premium grade matcha in the Australian market and look forward to updating investors on the delivery of our multi-channel commercialisation strategy for this unique product.”
Underpinned by multichannel sales growth, product suite expansion and retail distribution gains, OMG delivered a 63.3% increase in FY25 group revenue to $4.13 million and a gross margin 40%, the highest since inception, following execution of streamlined inventory and logistics management.
Cash receipts for the last quarter of $1.17 million, represented the company’s fourth consecutive quarter above $1 million and a 56% increase on the previous period.
OMG Group has a market cap of $11 million; the share price is up 50% year to date and up 33% in the last week.
The stock appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
