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Saturday / June 22. 2024
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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.

Sales were impacted by softer demand due

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