Syngenta AG posts 19 % sales growth in FY2022

Sales of Crop Protection products increased by 21 per cent, 24 per cent at constant exchange rates and Seeds sales were 12 per cent higher than 2021, 16 per cent at constant exchange rates.

Syngenta AG ,subsidiary of Syngenta group has published its financial report for FY 2022.The company has reported that net income in 2022 attributable to Syngenta’s shareholder was $1,909 million, compared to $1,443 million in 2021.

Sales in 2022 were 19 percent higher than 2021, 22 percent higher at constant exchange rates, with a seven percent increase in sales volumes and a further 15 percent increase in local currency sales prices. Currency movements decreased reported sales by three per cent due to the weakness of many currencies against the US dollar, particularly in Europe, Africa and Middle East and Asia Pacific. Sales of Crop Protection products increased by 21 percent, 24 percent at constant exchange rates and Seeds sales were 12 percent higher than 2021, 16 per cent at constant exchange rates. The performance of both businesses benefitted from good farm economics, underpinned by generally strong crop prices, which both drove both growth in sales volumes and supported sales price increases to recover the impact of increased raw material and other costs.

The conflict between Russia and the Ukraine affected operations in both countries; in Russia operations continued subject to significant logistical and financial constraints, while in Ukraine operations were largely suspended for a period and later resumed when it was feasible and safe. During 2022 sales in Russia and Ukraine combined represented a mid-single digit percentage of Syngenta’s total sales.

Operating income as a percentage of sales was 14 per cent in 2022. Excluding restructuring costs, operating income as a percentage of sales increased by two percent in 2022 compared with 2021; sales price rises offset the impact of higher raw material and other production costs, though with some reduction in gross margin as a percentage of sales and increased operational leverage, higher capitalization of development costs and the impact of a litigation settlement in 2021 more than offset a higher charge for doubtful receivables and increased employee incentive costs. Including costs reported in cost of goods sold, restructuring and impairment charges were $249 million in 2022 before related taxation, compared to $240 million in 2021. Currency exchange rate impacts reduced operating income by approximately $54 million.

Sales of Crop Protection products increased by