Agribusiness Nufarm lifted first half profit by 23.1% to $23.152 million with more to come in the second half of the financial year.
Nufarm, which sells herbicides, insecticides and seed, posted the result on a 4% rise in revenue to $1.183 billion for the six months to the end of January.
The Australian business was hit by hot and dry seasonal conditions in the major summer cropping regions of Queensland and northern New South Wales.
However, rainfall in December and January generated strong demand over the last six weeks of the reporting period.
Sales and earnings are usually heavily weighted to the second six months of the financial year, with major cropping seasons in Australia, North America and Europe
Greg Hunt, acting CEO, says Australia’s weather in February-March has been generally more favourable than at the same time last year.
However, Western Australia is still relatively dry and good rains will be needed ahead of the crop planting period to drive sales demand.
“With some improvement in demand, the business is expected to generate a stronger second half
result than in 2014,” Hunt says.
Directors declared an unfranked interim dividend of 4 cents