Syngenta’s agchem sales down 23% in Q4 2015

Selective herbicides: major brands ACURON™, AXIAL® , CALLISTO® family, DUAL MAGNUM® , BICEP® II MAGNUM, FUSILADE® Max, FLEX® , TOPIK® Sales performance in North America was driven by the success of ACURON™, which achieved its target of $100m sales in its launch year. This more than offset the impact of dry weather conditions in Canada. In Europe, strong price gains were recorded in the CIS to compensate for currency depreciation. Sales in Latin America were higher as a result of the change in sales terms in Brazil. 

 

Non-selective herbicides: major brands GRAMOXONE® , TOUCHDOWN® The sales decline is largely a result of the decision to reduce volumes of solo glyphosate in order to improve the profitability of the business. TOUCHDOWN® prices were also lower reflecting a decline in the active ingredient purchasing costs. GRAMOXONE® sales in China have been phased out following a regulatory change affecting paraquat liquid formulations. 

 

Fungicides: major brands ALTO® , AMISTAR® , BONTIMA® , BRAVO® , ELATUS™, MODDUS® , REVUS® , RIDOMIL® Gold, SCORE® , SEGURIS® , TILT® , UNIX® Broad-based growth was achieved across the portfolio despite dry conditions in parts of Europe and Asia Pacific. ELATUS™ performed well in its second year in Brazil, with sales exceeding $400 million. Volume growth was solid across Europe with a strong performance by the cereals fungicides ALTO® , MODDUS® and SEGURIS® . In January 2016 Syngenta announced that SOLATENOL™, the active ingredient used in ELATUS™, has been approved by the EU authorities, with first sales in France expected for the 2016/2017 season. 

 

Insecticides: major brands ACTARA® , DURIVO® , FORCE® , KARATE® , PROCLAIM® , VERTIMEC® Growth came from price increases in Europe and volume growth in Asia Pacific, as well as new product introductions in China and India. This did not compensate for the impact of reduced sales in Latin America, due to dry weather and low insect pressure in Argentina and to high channel inventories in Brazil. However, ACTARA® performed strongly in Brazil in the fourth quarter with an improvement in the sugar cane market. 

 

Seedcare: major brands AVICTA® , CRUISER® , DIVIDEND® , CELEST® /MAXIM® , VIBRANCE® Growth in Europe reflected a solid performance of Seedcare solutions for the cereals market in the CIS and Central Europe. In Asia Pacific, sales were boosted by increased focus on key accounts in China and by broad-based growth in Australasia. In North America, sales were affected by high channel inventories in the Canadian cereals market and lower cotton acres in southern US states.

Corn and soybean: major brands AGRISURE® , GOLDEN HARVEST® , NK® Corn sales were up in all regions, with a significant progression in the Americas owing to the licensing agreement with KWS and Limagrain, for which revenue was recorded in the fourth quarter. This was partially offset by lower US branded sales due to the acreage shift from corn to soybean. Corn volumes were down in Europe as a consequence of reduced acreage, but the impact was offset by significant price increases in the CIS. Strong price gains were recorded in Asia Pacific, driven by increased adoption of GM technology. Soybean sales in Latin America were lower, as sales were shifted to distributors as part of the implementation of the Integrated Business Partner model in Brazil. 

 

Diverse field crops: major brands NK® oilseeds, HILLESHÖG® sugar beet Sunflower sales increased significantly in Europe, the most important region, reflecting substantial price increases in the CIS which fully offset the impact of currency depreciation. These price increases had some impact on volume, as high value hybrids faced competition from local seeds. Sugar beet sales were lower, as oversupply on the sugar market led to significant acreage shifts in Europe. 

 

Vegetables: major brands ROGERS®, S&G® Growth was broad-based across the four regions. Price increases were robust, owing to a focus on capturing value for high quality hybrids across the portfolio and in particular to the strong return on investments being achieved by growers in South Asia. Sweetcorn sales in the USA were affected by high processor inventories.

 

Lawn and Garden: Sales were up 3 percent at constant exchange rates, with volume growth driven by the introduction of the new SDHI fungicide VELISTA™ in North America and higher vector control sales in Africa and the Middle East. Volumes in Flowers were lower as a consequence of a new strategy focusing on larger customers in order to improve profitability. The business has again exceeded its target of a 20 percent EBITDA margin, set for 2015.

 

 

John Ramsay, Chief Executive Officer, said: “In 2016 our focus will be on further improving profitability in challenging market conditions. Progress will be underpinned by additional cost savings under the AOL program and by a reduction in raw material costs. The AOL program also targets a release of working capital, which will contribute to an increase in free cash flow for the year to over $1 billion. Growth in sales of new products and further enhancements in sales force effectiveness should enable us to maintain and grow market share. In addition, our experience of risk management in emerging markets means that we are best placed to weather the current period of volatility. Our strong customer relationships, together with our broad portfolio and integrated offers, will ensure that we maintain and expand our leadership in these markets, which continue to represent the major driver of long term industry growth.”