Firming agriculture sector brings sector stocks to the fore
While excellent rainfall and soil moisture in QLD and Northern NSW is giving chances for a big 2025-2026 harvest ahead, rising grain prices and strong global demand is supporting agriculture stocks alike.
Best 4 ASX Agriculture Stocks to Watch
GrainCorp Limited (ASX: GNC)
Nufarm Limited (ASX: NUF)
Select Harvests Limited (ASX: SHV)
Cobram Estate Olives Limited (ASX: CBO)
GrainCorp Limited (ASX: GNC)
reported strong 1H FY2025 results, with group EBITDA rising to A$187 million from A$164 million of 1H FY2024 and NPAT increasing to A$58.1 million from A$57 million of 1H FY2024. Total grain handled of 29.5mmt which was up from 25.4mmt and oilseed crush volumes of 283kmt. Core cash stood at A$296 million, supporting an upgraded FY2025 guidance range of A$285–325 million EBITDA and A$65–95 million NPAT. The XFA acquisition which contributed A$14 million EBITDA above its initial expectation. The company has been actively buying back shares in recent months. Looking ahead the company expects favourable rainfall and soil moisture in Queensland and northern NSW to support a large 2025–26 harvest while diversification into renewable fuels and agri energy creates additional growth avenues.
Nufarm Limited (ASX: NUF)
reported stable results for the first half of FY2025. Group revenue went up 3% to about A$1.81 billion compared to A$1.76 billion in 1H FY2024. Crop Protection sales increased 4% to A$1.56 billion mainly because of strong growth in Europe where revenue jumped 17% to A$475 million. Seed Technologies revenue was down 3% to A$249 million and EBITDA came at A$205.9 million compared with A$218.6 million last year and EBIT was A$102.7 million compared with A$120.6 million. Net profit for the half fell to A$29.8 million from A$49.2 million last year due to lower omega 3 earnings and higher finance costs. Operating cash flow showed a seasonal outflow of A$459 million and net debt increased to A$1.362 billion. Looking forward there are expectations for better grain prices, positive planting conditions and strong demand for seed and crop protection products. Carinata plantings are also forecast to rise three times in FY25 which will support sales of bioenergy oil in FY26.
Select Harvests Limited (ASX: SHV)
had a very strong comeback in the first half of FY2025. Group revenue went up 54.1% to A$104.5 million mainly because almond prices increased 37.6% to A$10.35/kg compared to A$7.52/kg in 1H FY2024. EBITDA rose sharply to A$60.7 million from A$18.6 million last year and EBIT improved to A$45.4 million compared with just A$3.8 million in the same period before. NPAT was A$28.7 million which is a big turnaround from a loss of A$2.4 million in 1H FY2024. EPS also jumped to 20.2 cents from only 2.0 cps. Operating cash flow was A$7.5 million helped by more sales and net debt reduced to A$168.2 million which lowered the net debt to equity ratio to 32.7%. The company also secured a $240 million refinancing facility with 3 and 5 year terms, and invested in drainage, processing efficiency and faster sales to take advantage of higher almond prices. For the future SHV is positive on almond markets as global demand is strong especially from India and China.
Cobram Estate Olives Limited (ASX: CBO)
reported record results in FY2025. Group sales revenue went up to A$241.7 million from A$227.8 million in FY2024. EBITDA jumped 74.8% to A$116.6 million compared with A$66.7 million last year and NPAT also increased 167.8% to A$49.6 million against A$18.5 million in FY2024. Operating cash flow was strong at A$83.0 million compared with A$64.1 million. U.S operations also showed big momentum as branded sales more than doubled to A$42.3 million from A$21.0 million. Olive oil production in Australian groves was 14.2 million litres up from 10.1 million litres while Californian groves produced 3.0 million litres. Total assets rose to A$811.8 million, net assets to A$365.5 million and net debt ratio was 32.7%. With supply growth as 30% of Australian groves are still maturing over the next 7 years. Good conditions in California and secured water allocations are also expected to support higher yields ahead.
(Source: Company Announcements)
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