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
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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
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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
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1890805 29.04.2024 CET/CEST