Sharechat Logo

Nufarm provides potent recipe for Australian growth

Friday 17th October 2003

Text too small?
Chemical manufacturer Nufarm might not be listed on the local bourse anymore but the company still has a bevy of Kiwi shareholders now reaping rewards from across the Tasman.

The New Zealand-born company, now based in Melbourne, is enjoying a purple patch, having recorded another year of double-digit growth with net profit rising 13% to $A64.3 million for the July year.

The shares have leapt 130% from a low of $A2.31 in October 2001 and brokers have upgraded recommendations to reflect a $A6 price target.

Nufarm, formerly called Fernz Corporation, shifted to Australia in 2001 but its share price suffered as the stock dropped off New Zealand investor radar screens. It also took some time for the Australian market to warm to the company.

In a classic turnaround the company has since gone from being an Australasian-focused business dealing in agricultural and industrial chemicals to an international business with 2000 employees.

The company expects to lift earnings 10% in 2004 and says it can maintain this growth rate until at least 2006.

Significantly for investors the result also revealed a reduction in the company's gearing, with net debt to equity dropping to 98% from 152% the previous year.

The company maintains a strong Kiwi connection through directors Sir Dryden Spring and Bruce Goodfellow and major shareholder Amalgamated Dairies .

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Plexure signs contract with Super Indo
20th February 2020 Morning Report
Stocks Reach Record Highs After China’s Moves, Fed
Gold breaks through $1,600
U.S. Sanctions Rosneft Unit for Ties to Venezuelan Oil Trade
Stocks Mixed With Apple Forecast Spurring Caution
19th February 2020 Morning Report
NZ dollar weakens after Apple slashes sales forecast
Europe Stocks Rise With U.S. Futures on China Lift
18th February 2020 Morning Report

IRG See IRG research reports