NUFARM has launched a strategic review of its seed technologies arm, Nuseed, with the crop-protection company saying all options are on the table, including the possible sale of some or all the business platforms.

The news comes as Nufarm announces its half-year to March 31 results, which saw a drop in statutory net profit after tax of 39.5 percent to $29.8 million and a 15pc fall in underlying earnings before interest and tax to $102.7M.

The Nuseed business includes Nufarm’s portfolio of seed products and technologies, spanning its hybrid seed range, omega-3 offerings, and bioenergy crops such as carinata.

It also covers emerging technologies including camelina, energy cane and biomass oil trait innovations.

During a presentation to shareholders today, Nufarm chief executive officer Greg Hunt said now was the right time to consider options for further scaling up the Nuseed business.

He said with Nuseed expanding “to the next stage of growth”, the platform “really require[d] more funding than can be provided by Nufarm alone”.

“Over many years, we’ve invested a significant amount of capital to grow seed technologies, growing our hybrid seeds platform and taking omega-3, carinata and energy cane through the first stages of commercialisation,” Mr Hunt said.

“We think the best solution is to bring in outside capital and support that next stage of growth.

“We have, over recent times, received some inbound interest and, given the need for capital to continue to grow and support that growth, we think now is the right time to explore those opportunities.”

He said the company had engaged UBS to assist in the process, with an update expected “towards the end of calendar year ’25”.

Nufarm CEO Greg Hunt

“We will be exploring whole-business and platform-by-platform approaches to maximise value.

“At this stage, no options are being ruled in or out.

“There is no certainty that the process will lead to a transaction and we will provide and report back to you on the progress as appropriate.”

Seed earnings down 71pc

The seed technologies business reported revenue of $249M for HY25, down $7M on HY24, and a significant drop in EBIT of 71pc to $15.9M.

“The decline in EBIT on the prior year was due to lower licensing revenues, lower margins in omega-3, and drier conditions in Australia.

“In hybrid seeds, we had solid performances from canola, sorghum and sunflower, although Australian canola was impacted by recent dry conditions.

“Sorghum volume increased year on year and sunflower was broadly in line with the prior year.”

Nufarm reported a major fall in fish-oil prices which negatively impacted margins for omega-3 and led to a $28M write-down of inventories for HY25.

Mr Hunt said the company had “reduced the production program” of omega-3 crops for 2025 by approximately 50pc.

Crop protection growth

Nufarm reported growth in underlying EBIT for the Asia-Pacific region of 34pc to $56.2M for HY25, alongside a modest revenue increase of 1pc to $462M.

Mr Hunt said the earnings uplift reflected a “more stable pricing environment for active ingredients” which drove “margin normalisation and a strong profit recovery in Australian crop protection”.

“APAC revenues increased slightly on the prior year with good seasonal conditions across Asia and strong uptake of new products in Indonesia, offsetting dry conditions in Australia.”

In Europe, EBIT jumped 96pc to $43M, while the North American business saw a 10pc drop in EBIT to $27.3M.

Product innovations, partnerships

Mr Hunt said HY25 also brought several agreements into the new-product pipeline, which provided opportunities for growth.

He said a key milestone was the agreement with KingAgroot for the development of a new proprietary  non-selective herbicide for the Australian market

“We secured rights to develop a new broad-spectrum non-selective herbicide that we are targeting for launch in the Australian market before 2030.

“This is a significant and exciting opportunity to address a very significant need for farmers who are dealing with the growing challenge of herbicide resistance.”

Mr Hunt also made note of recent research and development agreements with bp and Unilever for the development of biomass oil for use in bioenergy and FMCG as well as a relatively new collaboration with Hort Innovation to develop and launch a precision application robotic sprayer manufactured by Kilter.

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