Nufarm profits dragged down by weak Aquaterra sales

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A drop in demand for salmon earlier this year had dented sales of Australian agricultural chemical producer Nufarm’s omega-3 canola oil product, Aquaterra.

Australian agricultural chemical company, Nufarm’s revenue and profit surged for the year to September 30 but the company says that a drop in salmon demand dented sales of its omega-3 canola oil product, Aquaterra.

Aquaterra is a non-marine source of long-chain omega-3 fatty acids produced by Nuseed, a subsidiary of Australian agrichemical giant Nufarm.

Nufarm’s revenue and profit surged for the year to September 30, but the farm chemicals group’s share price slid 7.6 per cent to AU$4.64 after management conceded the global supply chain crunch and raw material costs could pressure margins.

The company delivered net profit for the 12 months to September of AU$61.1 million, a AU$134 million turnaround from a $73.1 million loss last year.

Chief executive Greg Hunt said there were signs of recovery in the segment, “while COVID-19 disrupted salmon demand and slowed sales of our omega-3 Aquaterra product in the first half, we saw good adoption of this new technology in the second half.”

“As such, we intend to re-commence commercial plantings of omega-3 canola in calendar year 2022.”

Nufarm changed its reporting period in 2021 to better align with key sales periods and industry peers. Its fiscal year previously ended in July.