Syngenta’s agchem sales up 3% in Q3 2014

Syngenta’s group sales, including Lawn and Garden, increased by 2% in the third quarter of 2014.The crop protection sales were up by 2.8% to $2,372 million, while seed business dropped by 1% to $473 million.

For the first nine months of 2014, sales rose by 1.6% to $11.5 billion. The sales of crop protection grew by 3.1% to $8,583 million, while seeds business dropped by 3.7% to $2,439 million.

Regional sales

In Latin America sales were up 3%, or up 8% excluding glyphosate. Drought affected sales in LATAM North and in the Brazilian sugar cane market. There was strong demand for the new fungicide ELATUS™ in Brazil, as growers recognized its unrivaled performance against soybean rust.

In Asia Pacific sales grew by 3% after a strong first half. Emerging markets continued to perform well despite the delayed monsoon in South Asia. Sales were lower in Australasia owing to limited weed and disease pressure.

Product line sales

In Selective herbicides, strong growth in CALLISTO® in North America more than offset lower herbicide use on sugar cane in Latin America. Non-selective herbicides sales were down 10% as a result of the planned reduction in glyphosate volumes; GRAMOXONE® showed double digit growth. Insecticides expanded in North America and in Brazil, where the DURIVO® family was effective against caterpillar pressure in soybean, corn and cotton. Growth in Fungicides was mainly driven by demand for ELATUS™ in Brazil, with orders of over $200 million: recorded sales for the first nine months were $75 million. Reduced Seedcare sales reflected lower sales to other seed producers and the EU-wide suspension of the use of neonicotinoids, including CRUISER®.

Seeds sales were 5% higher excluding the impact of the Dulcinea divestment. Corn and soybean sales were down 3% in the quarter but were slightly higher for the first nine months. Sales of AGRISURE VIPTERA® corn in North America represented around 30% of the portfolio. Robust growth in Diverse field crops was driven mainly by hybrid barley and oilseed rape. Excluding Dulcinea, growth in Vegetables was 9% with good performances in EAME and Asia Pacific. Lawn and Garden sales were down 5% reflecting weak demand in Flowers in EAME and delays in vector control tenders in Africa.

Outlook

Mike Mack, Chief Executive Officer, said: “Performance in the second half of the  year is primarily driven by Brazil, where the season is just now under way and is  still dependent on rainfall. We are seeing strong demand for our newly launched  fungicide ELATUS™ for which we are on track to achieve targeted sales. 

For the first nine months of this year profitability has been affected by adverse  currency movements and sales mix. As a result the full year EBITDA margin will be  below last year’s level. In the fourth quarter we expect a higher rate of sales growth  and for the full year continue to target integrated sales growth of around 6%  at constant exchange rates. In a challenging market environment, our focus is on  improving profitability and we are on track to realize the first benefits from the  implementation of our operational leverage program in 2015.”