Syngenta Group reports $32.2 billion sales and $4.6 billion EBITDA in 2023

waiting on 1869035,news,refinitiv2
waiting on 1869035,news,bjoern_kuper2

   Syngenta Group / Key word(s): 9 Month figures
   Syngenta Group reports $32.2 billion sales and $4.6 billion
   EBITDA in 2023
   29.03.2024 / 12:00 CET/CEST
     ____________________________________________________________

   
   Q4 saw continued demand for new, innovative crop protection
   products; double-digit growth in China
     * FY 2023 Group sales at $32.2 billion, 21-4% versus prior year
          + Q4 Group sales grew to $7.9 billion, 21+5% versus prior
            year
     * FY 2023 EBITDA at $4.6 billion, -18% versus prior year
          + Q4 EBITDA at $1.0 billion, +15% versus prior year
     * Syngenta Group China achieved strong 11% year-over-year sales
       growth, reaching $9.6 billion in FY 2023
          + FY 2023 MAP and digital sales in China grew 26% versus
            prior year
     * Continued demand in an overall challenging Crop Protection
       market environment for new innovative technologies
          + Insect-control products containing PLINAZOLIN^®
            technology achieving particularly strong sales across
            Brazil and Asia Pacific

29 March 2024 / Basel, Switzerland / Shanghai, China

   Syngenta Group today announced financial results for the fourth
   quarter and full year 2023.

   Syngenta Group sales for full year 2023 were $32.2 billion, down
   $1.2 billion or 4 percent year-on-year (-1% CER). Full year
   EBITDA decreased 18 percent from the Group's all-time high in
   2022 (-14% CER). Sales in 2023 were impacted by continued
   industry-wide channel destocking in Crop Protection, with
   distributors and retailers actively reducing inventories
   previously accumulated in reaction to the supply chain
   disturbances of the prior years, while under pressure to lower
   working capital due to prolonged higher interest rates.

   Fourth quarter sales were $7.9 billion, up 5 percent (+6% CER),
   driven by Syngenta Crop Protection and by strong growth of
   Syngenta Group China. This compares with a fourth quarter of
   2022, when industry-wide destocking began. EBITDA for the fourth
   quarter grew 15% (+10% CER), exceeding the record-setting fourth
   quarter EBITDA of $0.9 billion in Q4 2022.

Full Year 2023


FY 2023

FY 2022

Change

Change (CER)


$bn

$bn

%

%

Sales

32.2

33.4

-4

-1

EBITDA

4.6

5.6

-18

-14


Q4 2023


Q4 2023

Q4 2022

Change

Change (CER)


$bn

$bn

%

%

Sales

7.9

7.5

5

6

EBITDA

1.0

0.9

15

10

   Global crop protection markets in 2023 were characterized by a
   strong destocking pressure, triggered by an inventory build-up in
   previous years and a substantial increase in interest rates. The
   resulting contraction in demand led to global volume and price
   reductions, particularly in Latin America and commoditised parts
   of the portfolio. These factors weighed on the comparison with
   2022, when Syngenta Group achieved record sales and profits.

   Syngenta Crop Protection sales in FY 2023 experienced a modest 5
   percent decrease in comparison to the previous year, totalling
   $15.5 billion. Syngenta Group's biological solutions grew 11
   percent in sales to $0.4 billion compared to last year.

   The seeds market continued to be strong and resilient in 2023
   despite softer commodity prices towards the  end of the year. The
   Seeds business grew 2 percent to $4.8 billion in 2023.

   Syngenta Group China maintained its momentum. In 2023, sales of
   Syngenta Group China increased by 11 percent (+18% CER) to $9.6
   billion, with fourth quarter sales growing as much as 19 percent
   (+28% CER) to $1.9 billion.

   Full year sales of Syngenta Group China's Modern Agriculture
   Platform (MAP) grew 26 percent to $3.9 billion as the number of
   MAP centers increased by 113 to a total of 741 centers.

   In 2023, Syngenta Group remained focused on measures to improve
   operational efficiency and productivity to offset lower volumes
   and prices.

   Sales from synergy effects amounted to $1.2 billion for the full
   year, with a profit contribution of almost $0.5 billion.

   EBITDA margin for 2023 was 14.2 percent, 2.5 percentage points
   lower than in 2022.

Highlights

Sales by Business Units

Full Year 2023


FY 2023

FY 2022

Change

Change (CER)


$bn

$bn

%

%

Syngenta Group

32.2

33.4

-4

-1

Syngenta Crop Protection

15.5

16.3

-5

-3

ADAMA

5.6

6.7

-17

-15

Syngenta Seeds

4.8

4.7

2

1

Syngenta Group China

9.6

8.6

11

18

Eliminations

-3.3

-2.9

n/a

n/a


Q4 2023


Q4 2023

Q4 2022

Change

Change (CER)


$bn

$bn

%

%

Syngenta Group

7.9

7.5

5

6

Syngenta Crop Protection

4.0

3.7

9

8

ADAMA

1.4

1.5

-11

-12

Syngenta Seeds

1.5

1.5

-2

-6

Syngenta Group China

1.9

1.6

19

28

Eliminations

-0.9

-0.8

n/a

n/a


Syngenta Crop Protection

   Full-year sales of Syngenta Crop Protection were 5 percent lower
   at $15.5 billion after exceptional growth in the previous year.

   Sales in Europe, Africa and the Middle East decreased 1 percent
   and in Asia Pacific (excluding China) 5 percent. Sales in Latin
   America decreased 11 percent; North America grew 2 percent. Sales
   in China were 18 percent higher. At CER, the sales grew in all
   regions except for Latin America.

   In 2023, Syngenta Crop Protection successfully launched
   innovative technologies. PLINAZOLIN^® technology achieved
   accelerated registrations across Asia and LATAM, including India,
   Vietnam, Indonesia, the Philippines and Brazil. ADEPIDYN^®
   technology was introduced to now 52 countries and generating
   nearly $1 billion in sales, while SOLATENOL^® technology is also
   close to reaching the same milestone.

   The business also experienced continued momentum in Biologicals
   with sales up by 11 percent and the Seedcare business growing by
   1 percent for the full year 2023. Syngenta Professional Solutions
   sales were up by 11 percent.

ADAMA

   ADAMA sales decreased 17 percent to $5.6 billion for the full
   year 2023, with significant channel destocking, particularly in
   the Americas, affecting the comparison.

   Sales in Europe, Africa and the Middle East were 8 percent lower;
   sales in North America were 20 percent lower and Latin America
   sales decreased 19 percent, impacted by the contraction of the
   overall North and South American crop protection markets as a
   result of channel destocking and lower prices. Asia Pacific
   (excluding China) sales were 12 percent lower and China decreased
   25 percent due to pricing pressure and high channel inventories
   in commodities.

   ADAMA launched five new cereal fungicide products in Europe,
   comprising one of the most robust portfolios in the industry for
   cereal disease control in the region.

   ADAMA has initiated a transformation plan, focusing on the
   quality of the business and at the same time bringing a strong
   focus on advancing proprietary formulation technologies to
   provide its customers additional value in the off-patent market.

Syngenta Seeds

   Syngenta Seeds sales grew 2 percent to $4.8 billion in the full
   year 2023 in an overall growing seeds market.

   Field crop sales in Europe, Africa and the Middle East grew 9
   percent; North America remained flat; Asia Pacific (excluding
   China) grew 12 percent; and China 18 percent. Latin America sales
   were 20 percent lower, impacted by a one-time inventory
   adjustment in Brazil. Sales of Vegetable Seeds grew 6 percent.
   Flowers were 7 percent lower.

   In 2023, Syngenta opened two new seed-focused research
   facilities: the Syngenta Seeds R&D Innovation Center in Malta,
   Illinois, United States, and the Spring Corn Center in
   Gongzhuling City, Jilin Province, China. In Europe, in 2023,
   Syngenta launched the most advanced sunflower herbicide-tolerant
   crop (HTC) system, A.I.R., helping farmers meet their weed
   control challenges.

   In 2023, Syngenta Vegetable Seeds completed the strategic
   acquisition of Feltrin Sementes, a leading Brazilian vegetable
   seed company, which provides Syngenta an expanded vegetable seed
   portfolio to support the company's ambition to bring innovation
   and value to all types of growers around the world.

Syngenta Group China

   Sales of Syngenta Group China, consisting of the Group's Seeds,
   Crop Protection, Crop Nutrition, MAP and digital activities in
   China, grew 11 percent to $9.6 billion in the full year 2023.

   Syngenta Group China's Crop Protection sales grew 2 percent.
   Excluding non-agriculture elements, Crop Protection in China grew
   11 percent. Syngenta continued to gain market share on the back
   of strong growth in the branded formulated business. Sales of
   Seeds grew 17 percent, reinforcing its leading position in China
   with a record 130 new varieties certified last year. Crop
   Nutrition sales were 1 percent lower, but sales of biofertilizers
   showed a robust increase following the launch of new products
   such as NUTRIMATE(TM) and CODEFULT(TM) and more than 60 soil health
   service centers. At CER, sales grew in all businesses.

   MAP and digital sales grew 26 percent to $3.9 billion, while the
   number of MAP centers further increased by 113 to a total of 741
   and the number of demo farms to more than 1,000. MAP digital
   applications achieved over 2.5 million registered users,
   supporting ongoing farm modernization on 163 million acres (66
   million hectares) of land across China.

   In 2023, TYMIRIUM^® technology was approved in China.
   Construction of the Huludao production site in northeast China's
   Liaoning Province is underway, with the first phase expected to
   be operational in the second half of 2024 as a new addition and
   key part of the Group's global supply chain networks for active
   ingredients.

IPO update

   Earlier today, Syngenta Group announced it has decided to
   withdraw its application for IPO on the main board of the
   Shanghai Stock Exchange. The Company will continue to consolidate
   its market share and enhance its leading position in the global
   agricultural technology field. It will look to restart the
   listing process, either in China or a different global exchange,
   when conditions are right. It will also explore alternate sources
   of funding.

Syngenta Group Summary Financials

Full Year 2023


FY 2023

FY 2022

FY 2023

FY 2022


$bn

$bn

¥bn

¥bn

Sales

32.2

33.4

226.9

224.8

Syngenta Crop Protection

15.5

16.3

109.4

109.7

ADAMA

5.6

6.7

39.5

45.2

Syngenta Seeds

4.8

4.7

33.6

31.5

Syngenta Group China

9.6

8.6

67.6

57.4

Of which MAP

3.9

3.1

27.4

20.6

Eliminations-3.3

-2.9

-23.2

-19.0

EBITDA

4.6

5.6

32.2

37.5

Q4 2023


Q4 2023

Q4 2022

Q4 2023

Q4 2022


$bn

$bn

¥bn

¥bn

Sales

7.9

7.5

56.0

54.3

Syngenta Crop Protection

4.0

3.7

28.4

26.7

ADAMA

1.4

1.5

9.7

11.1

Syngenta Seeds

1.5

1.5

10.4

10.9

Syngenta Group China

1.9

1.6

13.3

11.1

Of which MAP

0.8

0.5

4.4

3.3

Eliminations

-0.8

-0.8

-5.8

-5.5

EBITDA

1.0

0.9

7.3

6.2


Endnotes

   For further information, see the reporting of financial results
   for ADAMA Ltd. (SHE: 000553), Sinofert Holdings (SEHK: 0297),
   Winall Hi-tech Seed (SHE: 300087), Yangnong Chemical (SHA:
   600486) and Syngenta AG.

   Unless otherwise mentioned, comparisons are to the same period in
   2022. Certain amounts, including components of change (%), may
   not add up due to rounding. The results presented in this release
   are unaudited and a consolidation of the business units in the
   Syngenta Group which includes Syngenta AG, Syngenta Group China,
   ADAMA Ltd., Sinofert Holdings, Winall Hi-tech Seed and Yangnong
   Chemical. Yangnong Chemical sales have been appended in the
   Group's Crop Protection units and domestically in Syngenta Group
   China.

   Results in this report from one period to another period are,
   where appropriate, compared using constant exchange rates (CER).
   To present that information, current period results for entities
   reporting in currencies other than US dollars are converted into
   US dollars at the prior period's exchange rates, rather than at
   the exchange rates for the current year. The CER presentation
   indicates the business performance before taking into account
   currency exchange fluctuations.

   EBITDA is a non-GAAP measure and EBITDA as defined by Syngenta
   Group may not be comparable to similarly described measures at
   other companies. Syngenta Group has defined EBITDA as earnings
   before interest, tax, non-controlling interests, depreciation,
   amortization, restructuring and impairment. Information
   concerning EBITDA has been included as it is used by management
   and by investors as a supplementary measure of operating
   performance. Syngenta Group excludes restructuring and impairment
   from EBITDA to focus on results excluding items affecting
   comparability from one period to the next.

   EBITDA as used in this press release excludes one-time events;
   other documents may treat this as an underlying or adjusted
   EBITDA. EBITDA excludes other one-off or non-cash/non-operational
   items that do not impact the ongoing performance of the business,
   as well as the impact of a time-bound, Group launch long-term
   incentive scheme for leadership.

When referred to as such, "the Group" implies Syngenta Group.


About Syngenta Group

   Syngenta Group is one of the world's biggest agricultural
   technology companies, with roots going back more than 250 years.
   With around 60,000 employees, operating in more than 100
   countries, the company strives to transform agriculture with
   science-driven, technological innovations to deliver high
   productivity and high-quality food while fighting climate change
   and restore nature. Syngenta Group is working with farmers to
   enable Regenerative Agriculture - an outcome-based food
   production system that nurtures and restores soil health,
   protects the climate and water resources and biodiversity, and
   enhances farms' productivity and profitability. Syngenta Group,
   which is registered in Shanghai, China, and has its management
   headquarters in Switzerland, draws strength from its four
   business units: Syngenta Crop Protection, headquartered in
   Switzerland; Syngenta Seeds, headquartered in the United States;
   ADAMA®, headquartered in Israel; and Syngenta Group China.
   Together, these businesses provide industry-leading ways to serve
   customers around the world.

   For Syngenta Group photos and videos, please visit the Syngenta
   Group Media Library.

Contact Information

   Media Relations
   media@syngentagroup.com

   Data protection is important to us. You are receiving this
   publication on the legal basis of Article 6 para 1 lit. f GDPR
   ("legitimate interest"). However, if you do not wish to receive
   further information about Syngenta Group, just send us a brief
   informal message and we will no longer process your details for
   this purpose. You can also find further details in our privacy
   statement.

Cautionary Statement Regarding Forward-Looking Statements

   This document may contain forward-looking statements, which can
   be identified by terminology such as "expect," "would," "will,"
   "potential," "plans," "prospects," "estimated," "aiming," "on
   track" and similar expressions. Such statements may be subject to
   risks and uncertainties that could cause the actual results to
   differ materially from these statements. For Syngenta Group, such
   risks and uncertainties include risks relating to legal
   proceedings, regulatory approvals, new product development,
   increasing competition, customer credit risk, general economic
   and market conditions, compliance and remediation, intellectual
   property rights, implementation of organizational changes,
   impairment of intangible assets, consumer perceptions of
   genetically modified crops and organisms or crop protection
   chemicals, climatic variations, fluctuations in exchange rates
   and/or grain prices, single source supply arrangements, political
   uncertainty, natural disasters, and breaches of data security or
   other disruptions of information technology. Syngenta Group
   assumes no obligation to update forward-looking statements to
   reflect actual results, changed assumptions or other factors.

____________________________________________________________

   End of Media Release
     ____________________________________________________________

   Language:    English
   Company:     Syngenta Group
                Rosentalstrasse 67
                4002 Basel
                Switzerland
   Phone:       061 323 11 11
   E-mail:      media@syngentagroup.com
   Internet:    https://www.syngentagroup.com/
   EQS News ID: 1869035

   End of News EQS News Service
     ____________________________________________________________

1869035 29.03.2024 CET/CEST