Syngenta sales up 7% in 2018

Date:02-21-2019

Syngenta sales of $13.5 billion were up 7 percent, 9 percent adjusted for 2017 sugar beet and mandated crop protection antitrust divestments. Crop protection sales of $10.4 billion increased 7 percent against 2017, 10 percent at CER and in dollars were 8 percent higher adjusted for antitrust divestments. Seeds sales of $3.0 billion were 6 percent higher than in 2017, 8 percent at CER and in dollars were 10 percent higher adjusted for the sugar beet divestment.

Erik Fyrwald, Chief Executive Officer, said: “The company delivered solid underlying sales growth of 9 percent compared to 2017, in a tough year where difficult weather conditions, currency and supply chain headwinds presented substantial operational challenges. It is a pleasing result maintaining profitability and record free cash flow of $1.76 billion. Our strong focus on customers, delivering greater innovation, and ongoing commitment to productivity improvement enabled solid top- and bottom-line growth. Our Seeds business continues to improve its performance, while the integration of the Nidera? and Abbott & Cobb? businesses has progressed well. The acquisition of FarmShots? and Strider? has improved digital capability and capacity. Farmer profitability continues to decline in most countries and ongoing regulatory pressure in the European Union is affecting growers’ access to technologies. We expect that market conditions will remain challenging in 2019 and difficult farm economics will continue to weigh on sector growth, which is likely to remain at low single digit levels. We will continue to improve productivity and focus on serving our customers through technology and services that meet their growing needs. Within this environment, we are confident that the trajectory of solid growth can be maintained.”

Regional sales performance

Regional sales performance Sales in Europe, Africa and the Middle East were flat against 2017 but 7 percent higher adjusted for divestments and despite a challenging market environment. The start of the season was delayed across most of Europe affecting fungicide sales and then severe drought in the summer slowed momentum. Good sales growth in Seedcare, strong new product sales of SDHI chemistry including ELATUS? and sunflower seed sales in Eastern Europe helped to offset the early season impacts.

In North America, Crop Protection sales were up 2 percent against 2017, driven by new product sales including TRIVAPRO? . Grower and channel partner adoption of digital solutions including AGRIEDGE EXCELSIOR? has continued to strengthen. Seeds sales were 3 percent lower as a result of softer demand across the sector with fewer corn and soy acres planted.

In Latin America, sales volumes in crop protection rebounded to more normal levels after a difficult year in 2017. Crop Protection sales in 2018 were 20 percent higher than in 2017, while seeds sales rose by 55 percent following the acquisition of Nidera?. Improved channel inventory management and new product introductions including PROCLAIM? in Brazil and ORONDIS? in Mexico provided an excellent growth foundation. Increased acres of soy and cotton helped drive greater demand.

In Asia Pacific, recovery in South Asia helped lead an overall sales improvement for the region of 2 percent within which, Crop Protection sales increased by 1 percent and seeds sales increased by 6 percent.

Sales in China continued to grow as farmers shift to higher value products with Crop Protection sales increasing by 6 percent and from a small base, seeds sales increasing by 2 percent compared to 2017.