Syngenta AG reports 2020 half year results

Date:07-23-2020

Strong sales growth in first half

• Syngenta AG continues to deliver despite challenging global conditions due to Covid-19 pandemic

• Sales $7.1 billion (2019: $6.8 billion), 5 percent higher, 10 percent at constant exchange rates (CER)¹

  - Crop Protection sales up 6 percent, 12 percent at CER

  - Seeds sales up 2 percent, 9 percent at CER²

• EBITDA $1,675 million; $1,503 million excluding capitalized development, 9 percent higher than 2019 adjusted for change of control royalties 

Financial highlights Half Year 2020

Sales $7.1 billion

Sales of $7.1 billion were 5 percent above 2019, 10 percent higher at constant exchange rates driven by increased volumes. Crop Protection sales of $5.5 billion were 6 percent higher, 12 percent at constant exchange rates, with a strong performance across all markets and segments, particularly in Brazil. Seeds sales of $1.6 billion were 2 percent up on 2019, 4 percent at constant exchange rates, and 9 percent higher at constant exchange rates adjusted for change of control royalties.

Net income $855 million

Net income of $855 million (2019: $798 million) included $145 million related to the capitalized development costs. Excluding this, net income was 11 percent lower than 2019, which included a one-off deferred tax revaluation gain from Swiss tax reform of $195 million; adjusted for this one-off tax, net income was 18 percent higher than 2019.

Crop Protection regional sales performance

Sales in Europe, Africa and the Middle East were 5 percent higher at constant exchange rates compared with 2019. Performance was solid, particularly in South Europe, despite COVID19 and dry weather in North-West Europe. Reported sales also reflected significant unfavorable foreign

exchange impacts.

In North America, sales for the half year were up 4 percent at constant exchange rates. However, sales were impacted by cold weather and excessive rain in Q2.

In Latin America, positive momentum from 2019 continued in the first half of 2020, with strong pest pressure in Brazil and higher volumes in Argentina despite difficult economic conditions. Growth was partially offset by the impact of volatile foreign exchange rates, particularly the Brazilian real.

In Asia Pacific, sales were up by 12 percent (CER), with strong growth in Australia due to improved weather conditions, and continued momentum from 2019 in India. Significant foreign exchange movements reduced reported sales.

China showed continued positive momentum, with Crop Protection sales increasing by 18 percent (CER).

Seeds regional sales performance

Seeds sales in Europe, Africa and the Middle East were 2 percent higher at constant exchange rates (CER) against 2019. Reported sales reflect weaker exchange rates relative to the US dollar. 

In North America seeds sales were 12 percent higher with corn and soybean recovering from 2019 flooding.

In Latin America, sales rose by 25 percent (CER) with volume gains, and sunflower area recovery. A weaker Brazilian real reduced reported sales.

Sales in Asia Pacific, including China increased by 22 percent (CER) compared to 2019, driven by continued strong momentum in Indonesia and other key markets. Reported sales were impacted by adverse currency movements.

¹ Constant Exchange Rates

² Excluding change of control royalties