Syngenta Group Reports Q1 2024 Results

   Syngenta Group / Key word(s): Quarter Results
   Syngenta Group Reports Q1 2024 Results
   29.04.2024 / 08:00 CET/CEST
     ____________________________________________________________

   
     * Q1 2024 Group sales at $7.4 billion, -20% (-18% at CER)
       versus prior year
     * Q1 2024 EBITDA at $1.2 billion, -34% (-26% at CER) versus
       prior year
     * Results in line with expectations for first quarter 2024 amid
       continued destocking by distributors and retailers
     * Group announces new sustainability priorities, fully
       embedding sustainability in its business strategy, while
       adding a new level of transparency

29 April 2024, Basel / Switzerland

   Syngenta Group today announced financial results for the first
   quarter of 2024. Sales for the first quarter 2024 were $7.4
   billion, down $1.8 billion or 20 percent (-18% at CER), compared
   to a strong first quarter 2023. First quarter 2024 EBITDA
   decreased 34 percent (-26% at CER) from prior year to $1.2
   billion.

   Sales in the first quarter of 2024 continued to be impacted by
   industry-wide channel destocking in Crop Protection as
   distributors and retailers further reduced inventories in
   response to the pressure to lower working capital in the higher
   interest rate environment.

   Given the current market environment, the Group remained focused
   on measures to improve operational efficiency and productivity to
   offset lower volumes and prices. EBITDA margin for the Group was
   16.7 percent versus 20.2 percent in the first quarter 2023.

Q1 2024


Q1 2024

Q1 2023

Change

Change (CER)


$bn

$bn

%

%

Sales

7.4

9.2

-20%

-18%

EBITDA

1.2

1.9

-34%

-26%

   Syngenta's Crop Protection, driver of approximately 40 percent of
   Syngenta Group's sales, declined amidst a still challenging crop
   protection market.

   ADAMA also recorded a weaker first quarter compared to Q1 2023 in
   a challenging environment for suppliers of post patent active
   ingredients, with the business downturn in Asia Pacific
   (excluding China) and Europe greatly affecting the comparison.

   Syngenta Seeds overall was 8 percent lower than in the first
   quarter last year but showed strong growth in Vegetables Seeds,
   Flowers and in China.

   Syngenta Group China saw a sales decline of 18 percent versus
   last year's record first quarter. Its Seeds business maintained
   its growth and the branded formulation crop protection business
   showed further growth on the back of recently launched products.
   The sales decline was partially offset by a better business mix
   and cost reductions.

Highlights

Sales by Business Units

Q1 2024


Q1 2024

Q1 2023*

Change

Change (CER)


$bn

$bn

%

%

Syngenta Group

7.4

9.2

-20%

-18%

Syngenta Crop Protection

3.2

4.2

-24%

-23%

ADAMA

1.1

1.3

-16%

-14%

Syngenta Seeds

1.4

1.5

-8%

-7%

Syngenta Group China

2.7

3.3

-18%

-15%

Eliminations

-1.0

-1.1

n/a

                                                                 n/a
   _____________________

   *The business units split of sales and regional / other
   organization within certain business units has been revised. See
   Endnotes for further information.

Syngenta Crop Protection

   Syngenta Crop Protection sales in the first quarter 2024 fell by
   24 percent to $3.2 billion compared with a very strong first
   quarter 2023.

   All regions saw a decline in sales, except China, where sales
   grew 14 percent, mainly driven by strong momentum in Biologicals,
   continued outstanding performance of the ADEPIDYN® technology and
   the launch of TYMIRIUM® technology. North America sales were 44%
   lower as customers delayed purchasing towards the start of the
   planting season. Sales in Asia, the Middle East & Africa were 24
   percent lower; Europe sales were 28 percent lower. In Latin
   America, sales were 1 percent lower.

   In Q1 2024, Syngenta received the re-registration for 15 years in
   EU for trinexapac, offering farmers long-lasting growth
   regulation as well as best storage protection for cereal crops.
   Generally, in Europe, issues in farmer profitability drove
   cautious purchasing behavior.

ADAMA

   ADAMA sales declined 16 percent to $1.1 billion in the first
   quarter 2024.

   Sales in Europe, Africa and the Middle East were 15 percent
   lower; Latin America declined 18 percent. North America decreased
   by 9 percent; Asia Pacific (excluding China) decreased 24
   percent; sales in China were 16 percent lower.

   In the first quarter of 2024, ADAMA launched an innovative
   herbicide solution to control glyphosate-tolerant Palmer amaranth
   in the US states Nebraska and Colorado. The product received an
   emergency exemption from the US Environmental Protection Agency
   following the pressing need for a sugar beet herbicide solution.

Syngenta Seeds

   First quarter sales of Syngenta Seeds were $1.4 billion, 8
   percent lower, with sales and earnings growth in China and
   Vegetables and Flowers offsetting particularly lower sales in
   Asia, the Middle East and Africa.

   Field crop sales in Europe declined 5 percent; North America fell
   7 percent; Brazil Region grew 2 percent, while sales in Latin
   America North & South were 18 percent lower; Asia, Middle East &
   Africa decreased 51 percent, while sales in China grew 25
   percent. Sales of Vegetable Seeds increased by 10 percent and
   sales of Flowers were 5 percent higher.

   In the first quarter of 2024, Syngenta completed the acquisition
   of Dafeng Seed in China, greatly enhancing its corn portfolio. In
   Brazil, Syngenta Seeds Field Crops announced the acceleration of
   its franchise model, thereby creating a more direct,
   demand-generating presence in the field with farmers. In Europe,
   the company launched the first Barley Yellow Dwarf Virus
   resistant barley hybrid, helping farmers to control the disease
   without the need for neonic seed treatments.

   Syngenta Vegetable Seeds inaugurated an expanded R&D facility in
   El Ejido, Spain, and a new state-of-the-art Seed Health Lab in
   Hyderabad, India. These strategic facilities enhance Syngenta's
   ability to respond faster to the needs of farmers with
   innovative, high-quality vegetable seeds. Syngenta Vegetable
   Seeds also signed an exclusive global licensing partnership with
   Emerald Seed Company, strengthening Syngenta's portfolio in onion
   seeds, one of the most important crops globally.

Syngenta Group China

   Syngenta Group China sales were $2.7 billion, 18 percent lower.
   The robust growth in branded formulations, seeds, and
   bio-fertilizers was offset by a significant year-on-year price
   decline and a strategic scaling back of grain trading operations.

   Sales of Seeds grew 25 percent. Sales of Branded Formulation were
   3 percent higher. Sinofert sales were 4 percent lower. Yangnong
   Chemical was 32 percent lower. MAP sales declined 8 percent,
   while the farm service business continued its upward trajectory.
   Grain trading business sales were 55% lower.

   Based on the 2023 TYMIRIUM® technology approval in China, the
   company continued the roll-out of innovative and highly effective
   nematicides and fungicides containing this ingredient. It offers
   a soil-applied solution that will provide early protection in a
   wide range of crops and is compatible with multiple application
   methods. Sinofert also launched three new bio-fertilizer products
   with bio-fertilizer sales increasing 19% year-on-year.

Syngenta Group Summary Financials

Q1 2024


Q1 2024

Q1 2023

Q1 2024

Q1 2023


$bn

$bn

¥bn

¥bn

Sales

7.4

9.2

52.2

63.1

Syngenta Crop Protection

3.2

4.2

22.7

28.8

ADAMA

1.1

1.3

7.5

8.7

Syngenta Seeds

1.4

1.5

10.0

10.5

Syngenta Group China

2.7

3.3

19.7

23.0

Of which MAP

0.3

0.3

2.2

2.3

Eliminations

-1.0

-1.1

-7.7

-7.9

EBITDA

1.2

1.9

8.7

12.7


New sustainability priorities

   Today Syngenta Group announced its new sustainability priorities
   for the entire Group, also including ADAMA and Syngenta Group
   China, that replace the previous sustainability targets. In 2013,
   Syngenta was one of the first companies in the industry to launch
   a comprehensive sustainability plan. The "Good Growth Plan"
   successfully served as the organization's sustainability compass.

   The new priorities place sustainability at the core of the
   company's strategy and demonstrate continued commitment to
   sustainable innovation. This approach and clear targets help
   integrate sustainability on a strategic and operational level
   whilst creating long-term value:

     * Priority 1: "Higher yields, lower impact" through the
       acceleration of crop productivity in the agricultural sector,
       while reducing the impact on the planet through more
       sustainable technologies.
     * Priority 2: "Regenerate soil and nature" by enabling the
       adoption of regenerative agriculture practices to help
       farmers improve productivity, soil health, biodiversity and
       climate.
     * Priority 3: "Improve rural prosperity" by focusing on the
       prosperity of low-income and under-served farmers and their
       access to inputs, knowledge, finance and markets.
     * Priority 4: "Sustainable operations" by the means of reducing
       the environmental impact of Syngenta Group's own operations
       and the supply chain; strengthening a diverse and inclusive
       culture and ensuring the health and safety of its employees.

   The new priorities leverage the power of innovation, guide
   investments and collaboration as well as add a new level of
   transparency through a Portfolio Sustainability Framework (PSF).
   To find out more about Syngenta Group's new sustainability
   priorities, the specific targets and the PSF, please visit the
   website Sustainability Priorities.

   Today Syngenta Group also published the Syngenta Group and
   Syngenta AG ESG reports for the year ended 31 December 2023.

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
   2023. 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.

   As a change to previous reporting, Yangnong Chemical sales have
   been fully included within the Syngenta Group China results,
   including exports, rather than partially appended in the Group's
   Crop Protection units as previously presented. In addition, the
   regional split of Syngenta Crop Protection, Syngenta Seeds, and
   the sub business unit split of Syngenta Group China have been
   amended to reflect a revised management structure and operating
   model within these units. Comparative figures for 2023 have been
   amended to reflect these changes on a consistent basis; total
   sales are unchanged.

   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 works with farmers and
   partners to deliver four Sustainability Priorities: Higher
   Yields, Lower Impact; Regenerate Soil and Nature; Improve Rural
   Prosperity; and Sustainable Operations. The priorities are
   underpinned by regenerative agriculture practices to nurture and
   restore soil health, protect the climate and biodiversity, and
   enhance farm 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: 1890805

   End of News EQS News Service
     ____________________________________________________________

1890805 29.04.2024 CET/CEST