Its accounts for the six months to the end of January recorded an after-tax profit rising from $A35.36 ($NZ43.67 million) to $A65.7 million ($NZ81.1 million), and revenue up from $A989.8 million for the same period last year to $A1.24 billion for the half.
Nufarm, whose products protect crops against pests, weeds and diseases, remains on track to deliver full-year after-tax profit of $A220 million, albeit at the lower end of guidance announced in December, compared to last year's $A163.9 million profit, which was itself a 36% increase.
ASX shares in Nufarm were up 45c, or 4.5% at $A10.75 yesterday in early trading.
ABN Amro Craigs broker Peter McIntyre said it was a "strong" result on good revenues, and a positive outlook for the remaining half of the year, slightly beating ABN's $A32 million after-tax forecast.
"On the sales mix, Nufarm has focused on making up any lost Brazilian volumes with sales in the US and Europe, which are second-half skewed," Mr McIntyre said, noting North America first-half revenue was forecast at $A245.7 million, then $A677 million for the second half.
In March 2008, Nufarm paid $US69 million for the privately-owned crop protection producer Etigra. In June it acquired the cotton portfolio of Du Pont, and in February this year it spent 74.6 million buying UK-based company AH Marks.
Mr McIntyre said the first-half result was up largely because of the acquisitions, but noted that in South America the forecast was for a 17% fall in contribution to the group.
He said the main negative risk was a softening in global commodity prices, more dry weather in Australia and slower roll-out of new products registered in Europe and North America.
Forsyth Barr broker Suzanne Kinnaird said the first half of Nufarm's financial year reflected strong trading performances from businesses in Europe and North America, but poor earnings in South America.
Brazil's earnings before interest and tax during the half were down from $A47 million last year to $A25 million.
"Measures were taken [in South America] to contain risks associated with the impact of the global financial crisis in that region," she said.
While sales of glyphosate during the first six months were lower than expected, reflecting a carry-over of farmer stocks from the previous season and delayed purchasing by distribution customers, Ms Kinnaird said demand for Nufarm's extensive product range was "expected to be strong" during the second half.
Similarly, the first-half result benefited from increased sales of higher margin products, mainly in Australia, North America and Europe. However, a forecast larger proportion of glyphosate products expected to be sold in the second half of trading had a down side.
"This will result in some contraction of second-half margins, as the product mix is dominated by generally lower margin herbicide sales," Ms Kinnaird said.
Forsyth Barr have a "accumulate" recommendation on the stock, with an $A12 12-month price target, which may be revised shortly, while ABN Amro have a "buy" recommendation and $A12 target.
• Both brokers financial disclosure documents are available on request.
