Syngenta Group reports strong full year 2020 results

Date:04-07-2021

Syngenta Group Co., Ltd. (“Syngenta Group” or the “Group”) today announced its first full year results since its official launch in June 2020. Syngenta Group sales for full year 2020 (all figures in USD) were $23.1 billion, achieving an increase of +5 percent (+12 percent at constant exchange rates (CER)) compared to pro forma 2019 results for Syngenta Group and despite a $1.5 billion currency headwind. EBITDA for 2020 was $4.0 billion, +3 percent higher year on year.

Following the public reporting of financial results for its subsidiaries Syngenta AG (to bondholders), ADAMA Ltd. (SHE: 000553), Sinofert Holdings (SEHK: 0297), and Yangnong Chemical (SHA: 600486) Syngenta Group summarizes its consolidated financial performance (unaudited) for 2020 as follows:

• The Group sales for 2020 of $23.1 billion, +5 percent year on year, +12 percent at CER, offsetting a $1.5 billion currency headwind, with all businesses delivering strong sales growth

• The Group EBITDA for 2020 of $4.0 billion, +3 percent year on year, despite the impact of non-repeated change of control royalties and one-off gains on disposal of assets in 2019 as well as the impact of mandatory production relocation which reduced growth by 6 percent

• Successful management of COVID-19 impact helped ensure safety of our people and continuity of supply for our customers and growers around the world

• Currency weakness against USD linked to COVID-19 more than offset by strong business growth and price increases, alongside successful function cost control

• Completed acquisition of biologicals company Valagro.

Syngenta Group revenue synergy targets exceeded $450 million, together with operational synergies resulting in more than a $200 million profit contribution.

Syngenta Group successfully managed the impact of the COVID-19 pandemic and related macro-economic headwinds, particularly the need for incremental inventory and logistics to facilitate higher sales and overcome the effect of weaker currencies. Moderate price increases and cost containment measures also helped positively impact EBITDA.

The Group’s Modern Agriculture Platform (MAP), which allows farmers access to latest, innovative tools, continued to rapidly expand in China and has disrupted the farmer-centric ecosystem with over 200 partners and tripled revenues to more than $700 million.

In 2020, Syngenta Group continued to make progress with its acquisition strategy. In early October Syngenta Crop Protection acquired Valagro, a leading biologicals company, to strengthen its position in the rapidly growing biologicals market.

Erik Fyrwald, Syngenta Group CEO: “The official launch of Syngenta Group in June 2020 made us the world's most local agricultural innovation and technology partner. Our results showcase our positive momentum across all business units and highlight the top-line growth in all regions, especially in China and Asia-Pacific. Our global team continues to transform the sustainability of agriculture, improve soil health, enhance biodiversity and address the pressing issue of climate change.”

Chen Lichtenstein, Syngenta Group CFO: “Syngenta Group delivered strong full-year results. During the unprecedented COVID-19 crisis, we met our customers’ needs by ensuring supply chain continuity and prioritized the safety of our employees and farmers. Our strong performance and robust sales were driven by business growth, effective cost control and focusing on delivering synergies across the group, which more than offset the currency pressure on sales and margins. Our recent acquisition and significant momentum in China with our fully integrated farmer-centric ecosystems have further propelled our success. We remain focused on delivering value across the growth opportunities we see.”

For further information, see the public announcements made by Syngenta AG (to bondholders), ADAMA Ltd. (SHE: 000553), Sinofert Holdings (SEHK: 0297), and Yangnong Chemical (SHA: 600486).