In the agricultural business (Crop Science), sales decreased by 3.6 percent (Fx & portfolio adj.) to 3.986 billion euros.
The Bayer Group has reported third-quarter sales that were level with the prior-year period on a currency- and portfolio-adjusted basis (Fx & portfolio adj.), while earnings declined. In the agricultural business (Crop Science), sales decreased by 3.6 percent (Fx & portfolio adj.) to 3.986 billion euros. Sales of glyphosate-based herbicides declined by 19.1 percent (Fx & portfolio adj.) as purchasing patterns normalised and volumes decreased as a result, while a significant acreage reduction for corn in Latin America contributed to a similar decline in global sales of the Corn Seed & Traits business (Fx & portfolio adj. 19.3 percent). These negative effects were partially offset by substantially increased fungicide and insecticide sales, with growth rates of 13.1 percent and 9.5 percent (Fx & portfolio adj.), respectively.
EBITDA before special items at Crop Science increased to 35 million euros (Q3 2023: minus 24 million euros), mainly due to lower provisions for the Group-wide short-term incentive (STI) program and a decrease in the cost of goods sold. Earnings were negatively impacted by the slight decline in sales. There was a positive currency effect of 32 million euros (Q3 2023: 121 million euros).
“The development of the agricultural market has been weaker than anticipated, especially in Latin America, and the company also continues to face pricing pressure in the crop protection business, he said. Bayer is therefore lowering its 2024 targets for Crop Science. For 2025, Bayer is cautious on the agricultural market environment. Additional regulatory challenges and generic pricing pressures are set to put pressure on the crop protection business”, said Bill Anderson, Chief Executive Officer, Bayer.
Sales for the first nine months of 2024 at Syngenta Group, were $21.4 billion, down $3.0 billion or 12 percent year-on-year, compared to a strong first nine months in 2023.
Syngenta Group announced financial results for the third quarter with sales for the third quarter 2024 being $6.8 billion, flat compared to the prior year period (up 4 percent at CER).Sales for the first nine months of 2024 at Syngenta Group, were $21.4 billion, down $3.0 billion or 12 percent year-on-year, compared to a strong first nine months in 2023. Sales were down 9 percent at constant exchange rates (CER). EBITDA for the first nine months of the year was $2.7 billion, 23 per cent lower (-12 per cent at CER) year-on-year. The Group’s EBITDA margin for the first nine months of 2024 was 12.9 percent, down 1.7 percentage points compared to 14.6 percent in the same period last year.
Adverse weather conditions across key markets affected applications of crop protection products. Sustained price pressure, particularly in the commoditized segments of the crop protection portfolio (and notably in Latin America), and reduced grower profitability had an impact on demand. Crop commodity prices have continued to decline, reducing farmer income and hampering demand for input materials. The crop protection market is showing initial signs of recovery with channel inventories now closer to normal levels. Syngenta Group expects the market to further recover after the first half of 2025 with a market also less impacted by lower crop prices and overcapacity. Syngenta Group has continued to implement further initiatives to drive profitability improvements, streamlining operations and improving cash flow, including optimizing working capital.
Q3 2024
Q3 2024
Q3 2023
Change
Change (CER)
$bn
$bn
%
%
Sales
6.8
6.8
0
4
EBITDA
0.7
0.3
112
159
Syngenta Crop Protection Q3 sales of $3.3bn were down by 3 percent, driven by adverse currency effects in Brazil offsetting underlying volume growth as the market begins to stabilize. At a constant exchange rate sales were up 3 percent in the quarter. Biologicals delivered further growth. Customer buying behavior is shifting more towards a pre-pandemic pattern, which means products are being ordered closer to the time of application than in previous years where products were ordered earlier to account for extended delivery times.
The Seeds business delivered 3 percent year-on-year sales growth in the third quarter of 2024 (4% at CER). In Q3 2024, Syngenta Group China sales increased 11 percent compared to the same period last year. Sales growth was boosted by the market introduction of new seeds varieties and a strong growth momentum for biologicals. In the first nine months of the year, sales declined 10 percent due to price headwinds in active ingredients and the proactive reduction of low-margin business.
The Group will continue to leverage its industry-leading R&D pipeline for sustainable innovation and focus on expanding its digital platforms to help growers manage weather changes and make better, data-based decisions.
Syngenta Crop Protection
Syngenta Crop Protection sales were 16 percent lower at $9.5 billion in the first nine months of 2024. Biologicals delivered further strong growth in the first nine months, growing 5 percent versus the previous period in 2023. In the first nine months, sales in North America were 28 percent lower due to ongoing channel destocking. Sales were down 15 percent in Europe and 11 percent lower in Asia, the Middle East & Africa. Sales in Latin America were 13 percent lower. Sales in China were up 10 percent driven by strong growth momentum from new products and biologicals. During the quarter, the biologicals business continued to show promising growth with sales also up 10 percent.
Syngenta Seeds
Seeds sales were $3.2 billion in the first nine months of 2024, down 2 percent year-on-year.
Field Crop sales in Brazil were up 13 percent; China continued with very strong growth delivering 31 percent increase in sales; and North America was up 4 percent. Europe sales were 1 percent lower; Asia, Middle East & Africa down 24 percent; and LATAM sales 26 percent lower. Sales of Vegetable Seeds increased by 9 percent and sales of Flowers were 2 percent higher. Asia, Middle East & Africa saw high double-digit corn volume increase Q3 24 versus Q3 23 despite a very challenging regulatory environment. LATAM is working closely with farmers on last-minute decision making due to economic uncertainty and acreage shift due to corn stunt disease. Syngenta Vegetable Seeds opened a new world-class small seed processing facility in the U.S., increasing the processing volume of this business with up to 30 percent more capacity to meet growing demand for high-quality vegetable seeds. The business also hosted thousands of growers and industry stakeholders from around the world at innovation showcase events in the Netherlands and U.S.
In the third quarter in China, Crop Protection achieved three new formulation registrations. The advancement of the “Bio+” strategy in the crop nutrition business continued, with a 28 percent increase in biofertilizer gross profit. In Seeds, in the first nine months of 2024, 134 new varieties were certified, achieving the #1 ranking in newly approved rice and corn varieties.
