Syngenta’s agchem sales up 3% in Q3 2014

Date:10-20-2014

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.

Syngenta’s sales result ($ million)
ended Sep. 30	Q3 2014	Q3 2013	change%	nine-month 2014	nine-month 2013	change%
Crop Protection	2372	2308	+2.8	8583	8325	+3.1
Seeds	473	478	-1.0	2439	2532	-3.7
Elimination1	-16	-25	-	-49	-72	-
Total	2829	2761	+2.5	10973	10785	+1.7
Lawn and Garden2	146	155	-5.8	510	521	-2.1
Group Sales	2975	2916	+2.0	11483	11306	+1.6
1elimination of crop protection sales to seeds 2Includes business provides professional growers and consumers with flowers, turf and landscape products.

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.

Syngenta’s crop protection sales result by region ($ million)
ended Sep. 30	Q3 2014	Q3 2013	change %	Nine-month 2014	Nine-months 2013	Change %
Europe, Africa and Middle East	466	478	-2.5	2878	2682	+7.3
North America	487	457	+6.6	2232	2341	-4.7
Latin America	1055	1024	+3.0	2176	2053	+6.0
Asia Pacific	364	349	+4.3	1297	1249	+3.8
Total	2372	2308	+2.8	8583	8325	+3.1

Syngenta’s seed sales result by region ($ million)
ended Sep. 30	Q3 2014	Q3 2013	change %	Nine-month 2014	Nine-months 2013	change%
Europe, Africa and Middle East	171	141	+21.3	1105	1121	-1.4
North America	23	60	-61.7	736	814	-9.6
Latin America	221	220	+0.5	374	380	-1.6
Asia Pacific	58	57	+1.8	224	217	3.2
Total	473	478	-1.0	2439	2532	-3.7

Sales in Europe, Africa and the Middle East (EAME) rose by 3%. In Central and North Europe, growth was driven by oilseed rape and HYVIDO™ hybrid barley seeds. South East Europe continued to show good growth, while low season sales in the CIS were down.

Sales in North America were driven by strong selective herbicide sales in advance of the next US season. Insecticide sales also expanded with high pest pressure in the southern USA. Seeds sales were lower primarily due to the divestment of the Dulcinea Farms business in December 2013.

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®.

Syngenta’s sales result by category ($ million)
ended Sep. 30	Q3 2014	Q32013	change%	Nine-month 2014	Nine-month  2013	change  %
Selective Herbicides	493	485	+1.6	2470	2470	0.0
Non-selective Herbicides	383	429	-10.7	1173	1175	-0.2
Fungicides	679	566	+20.0	2596	2349	+10.5
Insecticides	518	446	+16.1	1452	1318	+10.2
Seed Care	249	315	-21.0	769	896	-14.2
Other Crop Protection	50	67	-25.4	123	117	+5.1
Total Crop Protection	2372	2308	+2.8	8583	8325	+3.1
Corn and Soybean	203	211	-3.8	1215	1229	-1.1
Diverse Field Crops	131	109	+20.2	709	755	-6.1
Vegetables	139	158	-12.0	515	548	-6.0
Total Seeds	473	478	-1.0	2439	2532	-3.7
Lawn and Garden1	146	155	-5.8	510	521	-2.1
Group Sales	2975	2916	+2.0	11483	11306	+1.6
1Includes business provides professional growers and consumers with flowers, turf and landscape products.

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.”