UPL sales up 7% in Q1 FY 2016-17

UPL’s regional sales -Q1 FY 2017 & FY 2016
Region	Q1 FY ’17		Q1 FY ‘16		Growth
	Sales (Rs. million)	Proportion	Sales (Rs. million)	proportion	Sales (Rs. million)	Change%
India	10,600	30%	10,550	32%	60	1%
Latin America	6,970	20%	6,180	19%	790	13%
North America	6,380	18%	6,080	19%	300	5%
Europe	5,620	16%	5,030	15%	580	12%
Rest of World	5,530	16%	4,910	15%	620	13%
Total	35,100	100%	32,750	100%	2,350	7%

UPL’s domestic market posted only 1% growth mainly due to delayed rain across India and high opening inventories from last year. The company’s brand insecticide Ulala controlling sucking insects was launched in more regions, such as Punjab, Haryana and Rajasthan. Performance of the company’s subsidiary Advanta Seeds’ hybrid corn, rice and forage was better than last year.

 

Sales in Latin America rose by 13% to Rs. 6,970 million. UPL’s fungicide portfolio (Unizeb, Glory) performed well in managing Aisan rust disease. UPL registered some new products on multiple crops in Mexico. The company commented that the market is sensitive due to existing and future peso devaluation in Mexico. Advanta Seeds achieved higher GM corn sales in Argentina.

 

Planting area of cotton, corn and wheat grew in North America, but insect & disease pressure on field crops reduced. UPL’s sales in North America rose by 5% in the first quarter of fiscal year 2016-17.  Non-selective herbicides were facing price competition, though higher volumes due to resistance issue. The company sucessful launched miticide Banter in USA recently. Sales of sorghum and forage sorghum were lower than last year due to reduction in area.

 

Sales in Europe rose by 12% to Rs. 5,620 million. The company’s sugar beet herbicides were supported by extended sugar beet season and increase of acreage compared to last year. Europe benefitted from good rains, vine and potatoes fungicide are increasing by 30% due to mildew and late blight.

 

Highlights in the rest of world include: over all season is recovering in Asia & Australia after a prolonged drought; performance of fungicides have been good & traction in liquidating inventory stuck in Channel; geographic expansion of non-selective herbicides portfolio in Asia; good Growth in Turkey due to Institutional Business despite slow season; pulses area increased significantly in Australia leading to growth in fungicides; business recovery in selected counties in Africa with new products.