Monsanto sales up 7% in FY 2014

Date:10-09-2014

Monsanto reported net sales of approximately $2.6 billion for the fourth quarter of fiscal year 2014, with a year-on-year growth of 19.4%. Net sales for the full fiscal year were approximately $15.9 billion, a 6.7% increase over fiscal year 2013. Full-year net sales results were driven by the strength of the Seeds and Genomics segment, including a record year for the company’s soybean business.

Seeds and Genomics segment net sales were approximately $1.4 billion for the quarter. For the fiscal year, net sales for the Seeds and Genomics segment reached $10.7 billion. Agricultural Productivity segment net sales were $1.3 billion for the quarter. Net sales for the Agricultural Productivity segment for the fiscal year reached $5.1 billion.

Monsanto reported a net loss of $156 million in the fourth quarter of fiscal year 2014, compared with a reported net loss of $249 million in the same period last year. Net income attributable to Monsanto for fiscal year 2014 was approximately $2.7 billion, an increase over fiscal year 2013 net income attributable to Monsanto of $2.5 billion.

Monsanto’s sales result ($ million)
Year ended Aug. 31st	Q4 2014	Q4 2013	Changes (%)	FY 2014	FY 2013	Changes (%)
Sales	2,630	2,202	+19.4	15,855	14,861	+6.7
-Seeds & Genomics	1,376	1,185	+16.1	10,740	10,340	+3.9
-Agrochemicals1	1,254	1,017	+23.3	5,115	4,521	+13.1
EBIT2  (loss)	(176)	(330)	-	3,952	3,460	+14.2
-Seeds & Genomics	(450)	(568)	-	2,607	2,412	+8.1
-Agrochemicals	274	238	+15.1	1,345	1,048	+28.3
Net income (loss)	(156)	(249)	-	2,740	2,482	+10.4
1 includes crop protection products and lawn-and-garden herbicide products 2Earnings before interest and tax

For the fiscal year, the sales of Seeds and Genomics segment led by a record year for its global soybean portfolio that achieved a 27% increase over the prior year. In 2014, the company also increased its corn margins even as its corn business faced headwinds from lower acres and currency effects. Within the global corn business, the company’s cost of goods sold was lower, portfolio mix was on track, total price uplift was positive and it had good volume against declining planted acres.

Outlook

Monsanto is positioned to deliver strong double-digit to mid-teens earnings growth in fiscal year 2015 despite continued industry headwinds and an increase in investments to unlock future growth. The company’s growth outlook is anchored on the continued strength of its core business, with more than three-quarters of the growth opportunity expected to come from its core corn and soybean businesses.

Within soybeans, the company will build on the successful launch of Intacta RR2 PRO™ in Latin America, noting it is on track to reach its projected 10 million to 12 million acre target for fiscal year 2015. The record setting adoption pace of Intacta RR2 PRO™ lays the foundation for the continued acceleration of the company’s soybean opportunity. This includes the advancement of the Roundup Ready® Xtend Crop System, which is expected to move into final commercial preparation in fiscal year 2015.

The accelerated soybean opportunity will be complemented in fiscal year 2015 by the performance of the company’s global corn business. This includes new portfolio introductions of better-performing hybrids across key corn growing regions, a mix benefit driven in the range of a mid-single digit germplasm portfolio lift, overall corn footprint expansion and a continued cost-improvement benefit.