News: NUF Australia's Nufarm posts annual loss on European assets writedown, weak demand

Sept 23 (Reuters) - Australian agricultural chemicals maker Nufarm Ltd (NUF) reported an annual loss on Wednesday compared to a profit last year as a writedown of its European assets, weak demand and higher manufacturing costs cut into its bottom line.

The Melbourne-based firm had highlighted the pressure on its European business earlier this year, where it was facing more competition, high raw material costs and sluggish demand due to the coronavirus outbreak.

For the year ended July 31, it reported a statutory net loss attributable of A$456.1 million ($326.9 million), compared with a profit of A$38.3 million a year earlier, largely due to an A$188.3 million impairment charge on its European assets.

Nufarm added that it had a program underway to grow revenue, reduce costs and lift margins in Europe.

"We expect this program, combined with an anticipated easing in raw material costs and improved weather conditions, would be the major drivers of improved profitability in the European business in FY21 and beyond," the company said in a statement.

On an underlying basis, full-year net loss attributable was A$67.0 million, down from a profit of A$89.1 million last year.

The group's full-year underlying core earnings from continuing operations came in at A$235.8 million, down about 21% from last year but well within its guidance provided earlier this month.

The company did not declare a final dividend.

($1 = 1.3953 Australian dollars)