Syngenta sales up 13%, exceed $4 bn in Q1 2011

Date:04-18-2011

Sales in the first quarter of 2011 increased by 13 percent at constant exchange rates. Volume expanded by 14 percent, representing the fourth consecutive quarter of double digit growth. Reported sales were 14 percent higher at $4.02 billion.

Integrated Crop Protection and Seeds performance

In Europe, Africa and the Middle East, sales increased by 20 percent, with strong growth in both Crop Protection and Seeds. A favorable environment encouraged early investment by wheat growers across the region. Eastern Europe rebounded from difficult conditions in the second half of 2010 with increased demand for premium crop protection products and widespread adoption of high value sunflower seeds, where Syngenta is the market leader. In North America, sales increased by 6 percent reflecting a strong Seeds performance. Crop Protection sales were unchanged: robust volume growth in the USA compensated for lower prices, due to the timing of higher rebate recognition in 2010, as well as for lower sales of cereal herbicides in Canada. Latin America continued its outstanding record with growth of 16 percent, driven in particular by fungicides, insecticides and corn seed. Sales in Asia Pacific increased by 6 percent, with a decline in Japan more than offset by continuing expansion of crop protection usage in the emerging markets.

Product line sales

Growth in Selective Herbicides was driven by cereal herbicides in Europe and by strong volume growth in the USA, reflecting the success of solutions for weed resistance in corn and soybean. Non-selective Herbicide sales also increased, with volume growth notably in Latin America. Fungicides expanded in all regions, with the main Northern hemisphere applications still to come. Insecticides growth was broad-based across the portfolio, with sales of the new product DURIVO more than doubling. Sales of Professional Products increased by 4 percent, with some improvement in consumer markets in Europe.

Combined sales of new Crop Protection products reached $185 million in the first quarter, an increase of 31 percent.

Growth in Corn & Soybean seeds was driven by North America, where our enhanced corn portfolio has been well received, with rapid expansion also in Latin America. Sales of Diverse Field Crops increased by one third on an underlying basis, driven by sunflower expansion in Russia and the Ukraine; acquisitions contributed a further 20 percent to growth. Vegetables continued their track record of strong growth with expansion in all key crops.

Mike Mack, Chief Executive Officer, said: “Our first quarter sales performance demonstrates our ability to achieve significant growth across a business that is unrivalled in its breadth and reach. At the same time, we have made rapid progress in the implementation of our new commercial strategy, which is building on the combined strength of our Crop Protection and Seeds businesses to develop a fully integrated offer on a global crop basis. By bringing together our commercial teams, we will be able to leverage the potential of our entire portfolio and to create additional value for our customers.”

Unaudited First Quarter Product Line and Regional Sales

Syngenta	Q1 2011(1) $m	Q1 2010(1) $m	Actual %	CER(2) %
Crop Protection	2790	2510	+11	+10
Seeds	1244	1036	+20	+20
Business Development	0	2	n/a	n/a
Inter-segment elimination(3)	-17	-20	n/a	n/a
Third Party Sales	4017	3528	+14	+13
Crop Protection
Product line
Selective Herbicides	827	743	+11	+10
Non-selective Herbicides	250	232	+8	+5
Fungicides	881	807	+9	+9
Insecticides	430	351	+22	+21
Seed Care	257	239	+8	+6
Professional Products	128	120	+7	+4
Others	17	18	-3	-6
Total	2790	2510	+11	+10
Regional
Europe, Africa and Middle East	1111	958	+16	+16
North America	695	687	+1	-
Latin America	475	414	+15	+14
Asia Pacific	509	451	+13	+7
Total	2790	2510	+11	+10
Seeds
Product line
Corn and Soybean	634	553	+15	+15
Diverse Field Crops	297	193	+54	+53
Vegetables	177	160	+10	+10
Flowers	136	130	+5	+5
Total	1244	1036	+20	+20
Regional
Europe, Africa and Middle East	593	465	+28	+28
North America	560	488	+15	+14
Latin America	53	40	+33	+32
Asia Pacific	38	43	-12	-14
Total	1244	1036	+20	+20

(1) Mexico sales reported in Latin America (previously NAFTA).
(2) Growth at constant exchange rates.
(3) Crop Protection inter-segment sales to Seeds.