Bulletin: Nufarm's Earnings Stability Faces Operational Tests - S&P Global Ratings’ Credit Research

Bulletin: Nufarm's Earnings Stability Faces Operational Tests

Bulletin: Nufarm's Earnings Stability Faces Operational Tests - S&P Global Ratings’ Credit Research
Bulletin: Nufarm's Earnings Stability Faces Operational Tests
Published May 22, 2024
3 pages (1229 words) — Published May 22, 2024
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Abstract:

This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) May 23, 2024--Operational factors are testing the earnings stability of Australia-based crop protection company Nufarm Ltd. Among them are industry-wide reductions in on-farm and distributor inventory and price declines. A material unwinding of net working capital, mainly improved receivables collections, over the next six months, will be critical to the stability of the ratings on the company (BB/Stable/--). Nufarm's intra-year ratio of debt to EBITDA as of March 31, 2024 is elevated. It stands at 3.6x (company measure), up from 2.4x the same time the prior year. EBITDA fell 31% while margins have contracted to about 12.4% from 16.2%. The company has tried to manage its inventory balance

  
Brief Excerpt:

...3179469 | 300128896 AUSTRALIA S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings"credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act)....

  
Report Type:

Bulletin

Ticker
NUF@AU
Issuer
Nufarm Ltd.
GICS
Fertilizers & Agricultural Chemicals (15101030)
Sector
Global Issuers
Country
Australia
Region
Pacific
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Nufarm's Earnings Stability Faces Operational Tests" May 22, 2024. Alacra Store. Nov 08, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Nufarm-s-Earnings-Stability-Faces-Operational-Tests-3179469>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Nufarm's Earnings Stability Faces Operational Tests May 22, 2024. New York, NY: Alacra Store. Retrieved Nov 08, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Nufarm-s-Earnings-Stability-Faces-Operational-Tests-3179469>
  
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