Nufarm Limited (ASX: NUF)
FY24 was a challenging year for the crop protection industry, but Nufarm Ltd (ASX: NUF) made strong strides despite the tough market conditions. The company focused on strengthening its business and funding arrangements, which allowed it to remain competitive while investing in innovation and growth. In biofuels, Nufarm expanded its carinata planting efforts in South America and conducted pre-commercial trials in Europe and Australia. Additionally, it successfully grew its canola business in Australia, with Nufarm genetics now present in every second hectare of canola. With plans to replicate this success in South America, the company’s partnerships with companies like KD Pharma, Unilever, and BP were key to further developing its platforms in omega-3, biomass oil, and carinata. A notable investment during FY24 was the expansion of its 2,4-D production facility at Laverton, improving asset integrity and ensuring long-term reliability. These efforts, along with Nufarm’s focus on sovereign manufacturing, played a crucial role in navigating global challenges such as conflict and the risk of tariffs.
Nufarm made strategic decisions to improve cash flow and debt management, including the decision not to pay a final dividend for FY24. This move, in line with their capital management principles, provided the flexibility to invest in growth opportunities. For FY25, demand for crop protection products has remained strong, and Nufarm expects to achieve $100 million in omega-3 revenue. The company is also focused on cost-saving initiatives, with plans to reduce inventory by 25 days by the end of FY25 and identify $50 million in annualized savings. These efforts are expected to further strengthen the company’s financial performance and position Nufarm for continued success.
Steadfast Group Ltd (ASX: SDF)
Steadfast Group Limited (ASX: SDF) has shown strong growth in its financial performance, with a 21.8% increase in underlying NPAT to $252.2 million for FY24, compared to the previous year. The company also achieved a 16.2% rise in underlying earnings per share to 23.4 cents. This growth was reflected in its statutory NPAT of $228.0 million, a notable increase from $189.2 million in FY23. The Group maintained a solid capital position, with a gearing ratio of 20.2% as of June 2024, well within the Board's target. It declared a fully franked final dividend of 10.35 cents per share, contributing to total dividends of 17.1 cents per share, a 14% increase from FY23.
Steadfast, is among growth stocks having focused on growing its presence outside of Australasia. Its acquisition strategy continues to gain momentum, with significant acquisitions, including the purchase of ISU Group in the U.S. and the expansion into the London market. The Group’s international network, UnisonSteadfast, now has 294 brokerages in 110 countries. Additionally, the recent acquisition of H.W. Wood in London, along with HWI France, will bolster its wholesale and reinsurance offerings, especially for the growing demands from its global network. These acquisitions are expected to enhance revenue and reduce costs by bringing in-house certain functions previously outsourced.
For FY25, Steadfast is off to a strong start, with unaudited figures for Q1 showing a 14.0% increase in underlying revenue and a 23.3% rise in underlying NPAT compared to Q1 FY24. The company remains on track to meet its $300 million acquisition target for the year and has reaffirmed its guidance range, forecasting underlying EBITA of $590 million to $600 million and underlying NPAT between $290 million and $300 million. This demonstrates Steadfast's continued growth and commitment to expanding its international reach.
Source: Company’s Report
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