All business units delivered growth except ADAMA which was particularly impacted by lower sales of its non-agricultural businesses in the US and China.
Switzerland based Syngenta Group announced financial results for the first quarter of 2023. Sales for the first quarter 2023 were $9.2 billion, up $0.3 billion or 3 percent (+8 per cent at CER), compared to a strong first quarter 2022. First quarter 2023 EBITDA increased 1 per cent (+9% at CER) from prior year to $1.9 billion.
All business units continued benefitting from demand for innovative products and services that promote yield increases and support regenerative farming methods that combat climate change, enhance soil health, and preserve biodiversity and water quality.
The Group continued to sustain higher prices to help offset higher costs. Seeds market growth remained robust while the market for crop protection non-selective herbicides has slowed as inventories are reduced through the supply chain.
All business units delivered growth except ADAMA which was particularly impacted by lower sales of its non-agricultural businesses in the US and China. EBITDA margin for the Group was 20.2 per cent. The growth of Syngenta Group’s crop protection businesses was slower compared to the exceptionally strong quarters in the prior two years. Prices were higher versus the prior year, helping offset cost increases. Syngenta Seeds continued its strong momentum and delivered double digit sales growth driven by price increases across all regions that offset higher costs.
Syngenta Group continued its strong growth in China. Syngenta Group China’s MAP sales grew 62 percent to $1.1 billion as the number of MAP centres increased by 124 from a year earlier to a total of 638 centres. Average sales per centre were up 29 per cent year-on-year. With the MAP offering, farmers can modernize farming practices sustainably, while boosting crop quality and farm profitability. The Group’s digital solutions have been adopted on 226 million acres globally with high demand from farmers in key markets.
Syngenta Crop Protection
Syngenta Crop Protection sales grew 2 percent to $4.3 billion in the first quarter 2023. Sales in North America sales grew 22 percent; Europe, Africa and the Middle East grew 1 percent. In Asia Pacific (excluding China), sales were 4 percent lower, reduced by 12 percent adverse currency movements. Sales in Latin America decreased by 17 percent as pre-season channel stocking subsided; and China sales grew by 27 per cent, despite an adverse impact of 11 percent from a stronger US dollar. Syngenta Crop Protection received regulatory approval for its PLINAZOLIN® technology in five countries including Brazil and India, providing farmers with cutting-edge insect control and addressing urgent resistance challenges.
ADAMA
ADAMA sales were 12 percent lower at $1.6 billion in the first quarter 2023. Sales in Europe, Africa and the Middle East and Latin America remained flat. North America decreased by 26 percent primarily affected by the consumer and the professional product segments; Asia Pacific (excluding China) decreased 14 percent. Sales in China were 23 percent lower largely due to non-agricultural chemical sales. ADAMA launched Cosayr® and Lapidos®, two Chlorantraniliprole-based insecticides in India, protecting rice and sugar cane crops from pests.
Syngenta Seeds
Syngenta Seeds sales grew 12 percent to $1.5 billion in the first quarter 2023, as price increases covered higher costs. Field crop sales in Europe, Africa and the Middle East grew 21 percent; North America grew 3 percent; Asia Pacific (excluding China) increased 21 percent; and China 41 percent. Latin America was 15 percent lower, constrained by product availability. Sales of Vegetable Seeds decreased by 1 per cent.
