- 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
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%
(Note: See endnotes for
definition of sales, EBITDA and CER as used in this document.)
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.
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