Syngenta’s crop protection sales were up by 8.4% to $2,308 million in the third quarter ended Sep. 30, 2013. For the first nine months of 2013, the sales of crop protection increased by 6.7% to $8,325 million compared to the same period of last year. 

Syngenta’s sales result ($million)
Q3 ended Sep. 30
Q3 2013
Q3 2012
change%
Nine-month 2013
Nine-month 2012
change%
Crop Protection        
2,308
2,130
+8.4
8,325      
7,804      
+6.7
Seeds
478
442
+8.1
2,532
2,637
-4.0
Total
2,761
2,551
+8.2
10,785
10,380
+3.9
Lawn and Garden(1)        
155         
147         
+5.4
521          
583          
-10.6
Group Sales
2,916
2,698
+8.1
11,306
10,963
+3.1
 (1)Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds.


Regional sales

For the third quarter of 2013, in Latin America a strong start to the season drove sales growth of 17 percent at constant exchange rates(CER). The main driver was Brazil, where the soybean seed portfolio outperformed in a strong market: a robust commodity price and the depreciation of the Real are boosting grower profitability and are expected to result in record soybean plantings. Non-selective herbicides also grew strongly; fungicides sales are weighted to the fourth quarter as invoicing is aligned to consumption. 

Syngenta’s crop protection sales result by region ($million)
Q3 ended Sep. 30
Q3 2013
Q3 2012
change%
Nine-month 2013
Nine-month 2012
change%
Europe, Africa and Middle East
 
 
478
 
 
453
 
 
5.5
 
 
2,682
 
 
2,585
 
 
3.8
North America
457
416
9.9
2,341
2,155
8.6
Latin America
1,024
924
10.8
2,053
1,850
11.0
Asia Pacific
349
337
3.6
1,249
1,214
2.9
Total
2,308
2,130
8.4
8,325
7,804
 6.7

In Asia Pacific, emerging markets registered double digit growth reflecting the ongoing adoption of fungicides and modern insecticide chemistry. Performance was particularly strong in South Asia, where good monsoon conditions further increased demand. 

Syngenta’s seed sales result by region ($million)
Q3 ended Sep. 30
Q3 2013
Q3 2012
change%
Nine-month 2013
Nine-month 2012
change%
Europe, Africa and Middle East
 
 
141
 
 
129
 
 
+9.3
 
 
1,121
 
 
1,018
 
 
+10.1
North America
60
53
+13.2
814
1,106
-26.4
Latin America
220
199
+10.6
380
331
+14.8
Asia Pacific
57
61
-6.6
217
182
+19.2
Total
478
442
+8.1
2,532
2,637
-4.0

Sales in Europe, Africa and the Middle East continued to grow. Sales in Italy rose sharply with share gain in an improving market. The emerging markets of South East Europe, notably Turkey, continued to expand rapidly with broad-based growth across the portfolio. Growth in North America was driven by pre-season demand for selective herbicides, augmented by increasing concern over glyphosate-resistant weeds. Wet conditions in parts of the USA contributed to reduced insect pressure but created new opportunities for fungicides.

Product line sales

Crop protection

Sales of Selective herbicides were driven by the Americas. CALLISTO® for corn and FLEX® for soybean both grew strongly in response to demand for effective weed resistance management. In Non-selective herbicides sales of TOUCHDOWN® continued to expand rapidly in Brazil, with strong demand and a shortage of supply from competitors resulting in significant volume and price gains. Insecticides sales were slightly higher, with good growth in Asia Pacific and Europe offset by a decline in the USA due to low insect pressure. Sales of DURIVO® were up by almost 50 percent with growth in all regions. Fungicides sales were driven by AMISTAR®, with sales more than doubling in the USA and continuing their rapid expansion in Asia Pacific. Seed care was driven by the new product VIBRANCE®, based on the SDHI fungicide sedaxane. During the quarter VIBRANCE was registered on over 30 additional crops in the USA, including corn, and received Annex 1 approval in the EU. 

Syngenta’s sales result by category ($million)
Q3 ended Sep. 30
Q3 2013
Q3 2012
change%
Nine-month 2013
Nine-month 2012
change%
Herbicides
914
779
+17.3
3,645
3,298
+10.5
-Selective Herbicides
 
485
 
428
 
+13.3
 
2,470
 
2,350
+5.1
-Non-selective Herbicides
 
429
 
351
 
+22.2
 
1,175
 
948
 
+23.9
Fungicides
566
554
+2.2
2,349
2,286
+2.8
Insecticides
446
456
-2.2
1,318
1,328
-0.8
Seed Care
315
303
+4.0
896
787
+13.9
Other Crop Protection
 
67
 
38
 
+76.3
 
117
 
105
 
+11.4
Total Crop Protection
 
2,308
 
2,130
 
+8.4
 
8,325
 
7,804
 
+6.7
Corn and Soybean
211
182
+15.9
1,229
1,450
-15.2
Diverse Field Crops
 
109
 
104
 
+4.8
 
755
 
653
 
+15.6
Vegetables
158
156
+1.3
548
534
+2.6
Total Seeds
478
442
+8.1
2,532
2,637
-4.0
Lawn and Garden(1)
 
155
 
147
 
+5.4
 
521
 
583
 
-10.6
Group Sales
2,916
2,698
+8.1
11,306
10,963
+3.1
 (1)Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds.

In seeds, Corn and soybean grew strongly with a significant contribution from soybean in Brazil. Growth in Diverse field crops was modest after a strong first half and came mainly from oilseed rape in Europe. Vegetables growth was concentrated in the USA and Brazil.

Lawn and Garden sales increased by 9 percent at constant exchange rates; excluding acquisitions and divestments growth was 12 percent. The divestment of lower margin activities and the attractive prospects for high value chemistry and genetics put this business well on track to achieve the target of a 20 percent EBITDA margin in 2015.

Outlook

Mike Mack, Chief Executive Officer said: “The third quarter performance demonstrates our ability to sustain growth across our business in a context of crop price and currency volatility. Following a good start to the Latin American season, we remain on track to deliver full year sales growth in line with our longer term target.”

"Looking further ahead, we remain on track to deliver our target of $25 billion in sales of our eight key crops in 2020. We expect improved profitability in 2014 and maintain our target of an EBITDA margin in the range of 22 to 24 percent in 2015.”