Sales were impacted by softer demand due to high levels of channel inventory remaining from 2022.
Syngenta AG, a wholly owned subsidiary of Syngenta Group, published its 2023 full year results. Syngenta AG’s consolidated sales for 2023 were $19,196 million, compared with $19,963 million in 2022, a decrease of 4 percent year on year. At constant exchange rates sales decreased by 3 percent. Sales in 2023 were 4 percent lower than 2022, 3 percent lower at constant exchange rates, with a 1 per cent decrease in sales volumes and a further 2 percent decrease in local currency sales prices. Currency movements decreased reported sales by 1 percent.
Sales of Crop Protection products decreased by 4 percent, 3 percent at constant exchange rates and Seeds sales were 1 percent lower than 2022, also at constant exchange rates. Farm economics and crop prices remained relatively strong in 2023, although falling from the very high levels of 2022, except for commoditized products where pricing fell sharply. Sales were impacted by softer demand due to high levels of channel inventory remaining from 2022.
Crop Protection
Sales were 6 percent lower, 4 per cent at constant exchange rates from lower volumes of GESAPRIM® in Brazil and the US. Sales were 56 per cent lower due to lower TOUCHDOWN® prices and volumes in Latin America after the particularly high demand in 2022. GRAMOXONE® sales were also lower in the US and Latin America North. Fungicide sales increased by 7 per cent, 9 percent at constant exchange rates, with strong growth in sales of the new ADEPIDYNTM technology. Insecticide sales were 2 percent lower, 1 percent at constant exchange rates, with strong growth in sales of the new PLINAZOLIN® technology in Latin America offset by lower sales of older products.
Seedcare
Seedcare sales were 2 percent higher, 5 percent higher at constant exchange rates from growth in China and Asia. Asia Pacific. Sales were 5 percent lower, but 2 percent higher at constant exchange rates: local currency price increases were achieved to offset currency weakness in Pakistan and Bangladesh, but US dollar prices were lower in Australia and India. China sales maintained strong growth and increased by 18 percent versus 2022, 26 per cent at constant exchange rates. Growth was driven by new products, particularly ADEPIDYNTM.
Seeds
Sales were 6 percent lower, also at constant exchange rates, with prices 5 percent higher to cover the increased input cost of the seeds more than offset by lower volumes. Corn sales were lower in Latin America due to a shortage of competitive germplasm. Sales increased by 12 percent, 10 percent at constant exchange rates, with local currency sales prices to cover increased product costs. Sales volumes were lower in Russia and the Ukraine.
Sales in Asia Pacific, including China, increased by 10 percent, 15 percent at constant exchange rate, with higher corn sales in South East Asia and China.
2024 Outlook
Sales prices of non-selective herbicides are currently expected to be more stable in 2024. Conversely, field crop seed sales prices were higher in 2023, offsetting increased cost of goods sold that are linked to the cost of the relevant crop; both sales prices and cost of goods are expected to have stabilized in 2024.
Given the progress of channel inventory reduction in 2023, the impact on 2024 is currently expected to be less significant. Traded prices of key crop commodities underpin farmer profitability and support the usage of crop protection products and high-quality seeds to optimize both crop yield and quality. Syngenta expects significantly lower levels of sales returns in 2024 compared to 2023 mainly driven by the significant reduction of the in-channel inventory.
