Monsanto agchems sales up 15% in H1 FY2014

Date:04-09-2014

Monsanto’s sales posted a 6.9% increase to $ 5,832 million in the second quarter of FY 2014 ended Feb 28, 2014. The growth mainly came from its core seeds and traits business, including expansion of its global corn and soybean businesses. Agrochemical sales rose by 5.2% to $1,184 million. Net income for the quarter grew by 12.7% to $1,672 million. Earnings before interest & taxes (EBIT) for this quarter increased by 12.7% to $2,363 million

For the first six months of FY 2014, the total sales rose by 6.7% to $ 8,975 million. Agrochemical sales achieved a 14.8% increase to $2,651 million.The net income increased by 11.6% to $ 2,045 million. Earnings before interest & taxes (EBIT) boosted by 12.8% to $2,917 million.

Monsanto’s sales result ($ million)
Q2 ended Feb 28	Q2 2014	Q2 2013	% change	Six-month 2014	Six-month 2013	% change
Sales	5,832	5,472	6.6	8,975	8,411	6.7
-Seeds & traits	4,648	4,346	6.9	6,324	6,101	3.7
-Agrochemicals	1,184	1,126	5.2	2,651	2,310	14.8
EBIT1	2,363	2,096	12.7	2,917	2,586	12.8
-Seeds & traits	2,055	1,840	11.7	2,159	2,060	4.8
-Agrochemicals	308	256	20.3	758	526	44.1
Net income	1,672	1,483	12.7	2,045	1,832	11.6
1 earnings before interest & taxes

Sales in the Seeds and Genomics segment for the second quarter recorded a 6.9% increase to $4,648 million, representing almost 80 % of total sales. For the first six months, sales for the segment were up by 3.7% to $6,324 million. The growth was led by Monsanto's global corn and soy businesses.

Monsanto achieved a record quarter for soybean sales and gross profit on the strength of its growing global soybean platform. That record quarter drove overall margin expansion in the soybean segment, with margins in the quarter improving by more than seven points. Within soybeans, Monsanto confirmed it reached three million acres of Intacta RR2 PRO™ soybeans, providing a revolutionary new platform for Latin America soybean growers and making it the largest launch of a soybean trait in the company's history. The company has focused on making sure farmers have a good experience with the product in its initial launch year and with new harvest results in hand confirmed Intacta RR2 PRO™ soybeans are matching the better than four bushel per acre yield advantage against first-generation Roundup Ready® soybeans that were achieved in Ground Breakers® trials.

The current and emerging opportunities in the company’s global corn portfolio complement the quarterly performance of the soybean platform. In the quarter, the corn business delivered solid growth over last year’s strong second quarter, including an increase in margins of more than two and a half points that reflect the continued upgrade of its global portfolio and benefits from the company’s improved cost position.

Outlook

Monsanto expects strong operational growth from its core business, reflected in mid-to-high teens growth in EBITDA. The company also expects a strong second half of the fiscal year, punctuated by a strong conclusion in its fourth quarter as the company expects a significantly smaller loss than in recent years driven by a number of core factors.