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Investing.com-- Australia-listed agricultural chemicals supplier Nufarm Ltd (ASX:NUF) slid over 20% on Wednesday after it logged a sharp decline in its earnings for the six months to March, hurt chiefly by weakness in its seed technologies unit, which it said it was now reviewing.
Nufarm slid 24.1% to A$3.05 in Sydney trade, compared to a 0.7% rise in the ASX 200 index.
Nufarm’s underlying net profit after tax fell 24% to A$38.5 million ($24.79 million), as underlying earnings from its seed technologies business slumped 71% year-on-year.
The company said the lower print was due to weak licensing revenues, smaller margins on fish oils, and lower canola revenues in Australia due to dry conditions in the country.
Nufarm said it was now reviewing its seed business for potential options to unlock value, and had engaged UBS to assist with the review.
Nufarm also posited a weak outlook for the next six months, stating that core earnings from seed technologies were set to be weaker than last year. Expectations of dry weather in Australia and Europe are expected to keep earnings subdued, despite some resilience in its crop protection unit.