Indian agro-chem firm UPL posts quarterly loss on weak demand, destocking woes

UPL

02/02/2024 12:53

BENGALURU, Feb 2 (Reuters) - 
    UPL  UPLL.NS , India's top agrochemicals firm, reported a
quarterly loss on Friday as it continued to grapple with
inventory destocking and weak demand for its crop protection
products.
    The herbicides and insecticides maker reported a net loss of
12.17 billion rupees ($146.84 million) in the quarter ended on
Dec. 31, compared to a profit of 10.87 billion rupees a year
ago. This is the company's second consecutive quarterly loss.
    Revenue from operations fell 27.7% to 98.87 billion rupees,
with its biggest business - crop protection - plunging nearly
31%.  
    Its Latin American business, which accounts for more than
40% of total sales, declined by 28%. Other major regions,
including Europe, North America and India also saw a
double-digit decline in sales.
    "Destocking - the process of emptying out excess inventory
levels following low demand - continued to weigh down the global
agrochemical market," CEO Mike Frank said in a statement.
    UPL's crop protection business suffered from destocking and
pricing pressures in the North American and European markets, it
said. In India, a below-average harvest season, especially in
the states of Telangana and Karnataka, also hampered sales.
    The company expects to see improved performance in the next
two quarters and anticipates normalized business performance
from the second quarter of fiscal 2025, Frank said.
    Rival Bayer CropScience  BAYE.NS  reported a 31% fall in
quarterly profit on Thursday, hurt by sluggish demand for its
crop protection products.
    UPL's shares ended 0.7% higher ahead of its results. 

($1 = 82.8790 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by
Subhranshu Sahu and Sonia Cheema)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))