Strong start to Northern hemisphere season boosts Syngenta’s Q1 sales

Syngenta’s crop protection sales grew by 7% in the first quarter of 2012 to $2,861 million. Sales were up 9% at constant exchange rates (CER). Seeds business grew by 11% (13% at CER) to $1,225 million. Total sales, including crop protection, seed, lawn and garden business, were up by 7% (9% at CER) to $4,304 million. Volumes were up 5%, with a further 4% contribution from price. Mike Mack, Chief Executive Officer, said: “After a strong year in 2011 sales momentum continued in the first quarter, with an excellent start to the season in both Europe and North America.”

Syngenta’s sales result ($million)
Q1 ended March 31st	2012	2011	change%
Crop Protection	2861	2669	+7
Seeds	1225	1108	+11
Inter-segment elimination(1)	-31	-17	-
Total	4055	3760	+8
Lawn and Garden(2)	249	257	-3
Group Sales	4304	4017	+7
(1) Crop Protection inter-segment sales to Seeds. (2) Includes Professional Products, Flowers and Lawn and Garden inter-segment elimination. Professional Products were formerly reported under Crop Protection and Flowers under Seeds.

In Europe, Africa and the Middle East, sales were up by 14% at constant exchange rates compared with a strong quarter in 2011. In France, a strong underlying performance by CALLISTO® on corn and in fungicides was augmented by a shift in sales from the fourth to the first quarter following a change in the law on credit terms. Eastern Europe continued its growth trajectory, with sales up by more than 25% helped by a broadening of the crop protection range and strong demand for spring crop seeds: in Ukraine, seeds sales doubled to exceed $100 million.

In North America sales were up 13%. Crop protection sales reflected an early start to the season and recognition of Syngenta’s capabilities in resistance management and crop enhancement. There was strong demand for Syngenta’s enhanced corn seed portfolio, in particular the AGRISURE® VIPTERA™ trait; sales of soybean and vegetable seeds were lower.

In Latin America, at the end of the season, an increase in second season corn in Brazil partly offset the effect of drought in Argentina and southern Brazil. Seeds sales continued their rapid expansion, with growth of over 40% and market share gains in both corn and soybean. Growth in Asia Pacific was also led by seeds, notably corn; crop protection sales were slightly lower owing to cold and wet conditions in Australasia and to range rationalization in India and Japan. China and the emerging ASEAN markets showed strong growth across the business.

Syngenta’s crop protection sales result by region ($million)
Q1 ended March 31st	2012	2011	change%
Europe, Africa and Middle East	1166	1084	+8
North America	784	634	+24
Latin America	429	464	-8
Asia Pacific	482	487	-1
Total	2861	2669	+7

Syngenta’s seed sales result by region ($million)
Q1 ended March 31st	2012	2011	change%
Europe, Africa and Middle East	605	522	+16
North America	496	497	-
Latin America	76	53	+43
Asia Pacific	48	36	+35
Total	1225	1108	+11

Double digit growth in Selective Herbicides was driven by AXIAL® and by the corn portfolio, notably in Europe and North America. In the USA, solutions for resistant weeds are increasingly valued. A decline in sales of Non-selective Herbicides reflected lower sales of GRAMOXONE® in Asia-Pacific, notably Korea. Global sales of TOUCHDOWN® increased. Fungicides sales were again higher: strong early demand in Europe and the expansion of AMISTAR®, notably in the USA, more than offset lower sales in Latin America due to drought. Growth in Insecticides reflected the further success of ACTARA® and the further expansion of DURIVO® on rice and vegetables. Sales of FORCE®, used to combat corn rootworm, were up by more than 50%. Seed care sales increased by 24% driven by the global expansion of CRUISER®. Total sales of new crop protection products reached $242 million in the first quarter, an increase of 35%.

The Lawn and Garden business comprises Professional Products and Flower seeds, and provides integrated solutions to professional growers of ornamental plants and to golf course superintendents. Sales in the first quarter were slightly lower because of the depressed consumer environment in Europe.

Sales of Corn & Soybean seeds rose by 13% driven by the success of the Corn portfolio in all regions. North American revenues reflected lower licensing income for the quarter: underlying US Corn sales were up 16%. US sales of Soybean were lower due to an expected acreage shift and to the ongoing transition to second generation herbicide tolerance technology. Sales of Diverse Field Crops increased by 24%, driven by high-performing sunflower hybrids and sugar beet. Vegetables sales were lower as consumers in Europe and North America reined back expenditure.

Syngenta’s sales result by category ($million)
Q1 ended March 31st	2012	2011	change%
Selective Herbicides	912	827	+10
Non-selective Herbicides	234	250	-6
Fungicides	901	881	+2
Insecticides	462	430	+8
Seed Care	314	257	+22
Other Crop Protection	38	24	+59
Total Crop Protection	2861	2669	+7
Corn and Soybean	707	634	+11
Diverse Field Crops	356	297	+20
Vegetables	162	177	-8
Total Seeds	1225	1108	+11
Inter-segment elimination(1)	-31	-17	-
Lawn and Garden(2)	249	257	-3
Group Sales	4304	4017	+7
(1) Crop Protection inter-segment sales to Seeds. (2) Includes Professional Products, Flowers and Lawn and Garden inter-segment elimination. Professional Products were formerly reported under Crop Protection and Flowers under Seeds.

"The implementation of our integrated strategy is proceeding rapidly and we are already seeing benefits in the leverage of our portfolio and the commercial organization. This underpins our confidence that we will continue to outperform an expanding market. In 2012, although we face the anticipated headwind from currencies and raw materials, we expect to achieve a further increase in EBITDA margin at constant exchange rates and to sustain strong cash generation.” said Mike Mack.