Q4 saw continued demand for new, innovative crop protection
products; double-digit growth in China
- FY 2023 Group sales at $32.2 billion, -4% versus prior year
- Q4 Group sales grew to $7.9 billion, +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
Syngenta Group today announced financial results for the fourth
quarter and full year 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240329621285/en/
(Photo: Business Wire)
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™ and CODEFULT™ 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.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240329621285/en/
Media Relations media@syngentagroup.com