Good times on the farm helps Nufarm post a good profit result

For instance, high commodity prices are driving strong demand for canola, sunflower and sorghum seed.

The company reported an underlying net profit for the 12 months through September of $61.1 million compared with the $73.1 million loss the previous year.

Underlying net profit after tax was $65.1 million.

Nufarm managing director and chief executive Greg Hunt said 2021 had been a successful year for Nufarm.

He said seasonal conditions across the Asia-Pacific were "exceptionally positive" particularly in Australia.

"We delivered solid financial results and continued to take actions that will positively shape the future of our company," Mr Hunt said.

Funds from the recent $1.2 billion sale of its South American operations have helped reduce net debt and support its commercialisation of Nuseed's Omega 3 canola and new-age Carinata biofuel and livestock feed oilseed crops.

"Our much-improved financial performance was driven by revenue and underlying earnings before interest, taxes, depreciation, and amortization growth in all regions as well as our seed technologies business.

"Earnings growth and a focus on working capital management is driving strong cash generation," Mr Hunt said.

In reference to the global climate change debate, Nufarm has set a target of a 30 per cent reduction in greenhouse gas emissions from its manufacturing sites by 2030.

The company said improved seasonal conditions in key grain producing regions resulted in strong demand for crop protection products

But the company also highlighted the problems caused by the rising cost of raw materials as well as global logistics and supply chain challenges.

Nufarm said price increases and volume growth of its products could lessen the financial hit.

Mr Hunt said the company's core objective for this financial year was to drive its long-term growth plans whilst at the same time focusing on optimising trading, improving margins and lifting cash generation.

"This underpins the strength of the business and enables us to pursue additional growth opportunities."

"Our balance sheet has been reshaped over the past two years and now provides us with flexibility when faced with seasonal and market challenges and optionality to pursue future growth potential and capital management initiatives, including a return of dividend payments to shareholders.

"Nufarm experienced very strong growth in Europe as we continued to drive operational performance improvements through our Performance Improvement Program," he said.

"Our North American and seed technologies businesses are also delivering good growth with positive momentum continuing in the first six weeks of this year.

MORE READING: Elders expects the good times to continue.

"This year's results have benefited from both management initiatives that drove earnings growth, as well as favourable agricultural conditions.

"Early indications from the first six weeks of the 2022 financial year are that this positive momentum should continue.

"The outlook for soft commodity prices remains positive and improved seasonal conditions in key grain producing regions is resulting in continued demand for seeds and crop protection products.

"That said, we continue to monitor ongoing industry-wide supply chain and logistical issues," Mr Hunt said.

Nufarm said its geographic and product diversification would help mitigate any potential impacts from these disruptions, or changes in seasonal conditions.

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