Key Takeaways:
- Sales and EBITDA Decline: Syngenta Group reported a significant decrease in sales and EBITDA in Q1 2024, reflecting broader industry challenges.
- Impact of Economic Factors: The reduction in sales is linked to industry-wide destocking in Crop Protection, influenced by higher interest rates leading to reduced inventories.
- Focus on Efficiency: The company has intensified efforts to improve operational efficiency and productivity in response to lower volumes and prices.
- Growth in Selected Segments: Despite the overall downturn, there was noticeable growth in the Vegetable Seeds, Flowers, and China markets within the Seeds division.
- Strategic Business Moves: The quarter included notable strategic activities such as the acquisition of Dafeng Seed and the introduction of new agrichemical products.
Financial Summary
Syngenta Group announced its financial results for the first quarter of 2024, revealing a downturn with sales totaling $7.4 billion, a 20% decrease from the previous year’s first quarter. EBITDA also fell by 34% to $1.2 billion. These figures are indicative of the challenges faced across the global Crop Protection market and the financial pressures of a higher interest rate environment.
Detailed Business Unit Analysis
Crop Protection:
Sales in this sector declined by 24% to $3.2 billion. The decline was widespread across regions, with the exception of China, which saw a 14% increase in sales, driven by successful product launches and strong performance in biological products.
ADAMA:
This segment experienced a 16% decrease in sales to $1.1 billion, with significant reductions in regions such as Asia Pacific (excluding China) and Europe, underscoring the tough conditions for suppliers of post-patent active ingredients.
Seeds Division:
Overall sales were down by 8% to $1.4 billion. However, specific areas such as Vegetable Seeds and Flowers saw growth, and performance in China was particularly strong, highlighting areas of potential resilience and expansion.
Strategic Initiatives and Market Adaptations
In response to the ongoing market pressures, Syngenta Group has emphasized improving operational efficiencies. The EBITDA margin has narrowed to 16.7%, down from 20.2% in the previous year, reflecting the economic challenges and the company’s efforts to adapt strategically.
The quarter was marked by strategic moves, including the acquisition of Dafeng Seed, which enhances Syngenta’s capabilities in China’s corn market, and the launch of a new herbicide in the U.S. aimed at addressing specific weed resistance issues. These actions demonstrate Syngenta’s ongoing adaptation to market demands and its focus on strengthening its product portfolio.
Forward-Looking Statements and Sustainability Goals
Looking ahead, Syngenta Group has outlined new sustainability priorities aimed at integrating sustainable practices into core business strategies. These include enhancing crop productivity with reduced environmental impact, adopting regenerative agriculture practices, improving rural prosperity, and ensuring sustainable operations. These goals reflect the company’s commitment to sustainability and its role in addressing global agricultural challenges.
Syngenta Latest News:
Reports 2023 Financial Outcomes Amid Agricultural Sector Adjustments (2024/04/02)
Syngenta Group reported $32.2 billion in sales, a 4% decrease YoY, and an 18% reduction in EBITDA. The Q4 showed a positive shift with sales up by 5%, and EBITDA growing 15% to reach $1.0 billion. Syngenta Crop Protection showcased its resilience and adaptability, ADAMA is undergoing transformation, Syngenta Seeds displayed 2% sales growth, and Syngenta Group China achieved an 11% increase in sales. Syngenta Group has concentrated on improving operational efficiency and productivity and announced the withdrawal of its IPO application.
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Partners with Maersk for Sustainable Ocean Shipments (2024/03/05)
Syngenta Crop Protection has partnered with Maersk to reduce greenhouse gas emissions. Syngenta will use Maersk’s ECO Delivery solution to ship its products with certified biofuels, significantly reducing GHG emissions. The collaboration includes the development of an Emissions Dashboard for enhanced reporting and analytics. The partnership sets a precedent for the industry and reflects a broader commitment to sustainability that has already seen Syngenta reducing its Scope 1 and Scope 2 emissions.
Unveils Collaborative Efforts to Propel AgTech Innovation (2024/02/29)
Syngenta Group has launched Shoots by Syngenta, an accelerator platform aimed at driving innovation through collaboration. The initiative has resulted in significant collaborations with IBM Research and Maxygen, with the goal of bringing novel solutions to the forefront of agricultural challenges. The partnership with IBM Research aims to enhance the efficiency and sustainability of chemical synthesis, while the collaboration with Maxygen applies directed evolution of proteins to improve crop resilience and productivity. Shoots by Syngenta invites contributions from various sectors to solve six outlined challenges, ranging from developing new chemical building blocks to enhancing crop diagnostic tools.
Partners With Lavie Bio (2024/02/21)
Syngenta Crop Protection and Lavie Bio Ltd. have joined forces to develop new biological solutions against insect damage in agriculture. By integrating Lavie Bio’s technology platform with Syngenta’s research and development framework, the collaboration aims to quickly identify and optimize effective bio-insecticide candidates. Syngenta’s strategy of merging cutting-edge agricultural technology companies with its experimental and digital approaches highlights its commitment to advancing sustainable agriculture. Amit Noam, CEO of Lavie Bio, emphasized the unique combination of computational capabilities and Syngenta’s vast experience as pivotal for the partnership’s potential to tackle insect management challenges effectively.
Commitment To Green Power Recognized by US EPA (2024/02/08)
Syngenta Group’s manufacturing facility in St. Gabriel, Louisiana, has been recognized by the U.S. EPA as a leading green power user, marking it the only agricultural sector company on the EPA’s National Top 100 List, thanks to its commitment to sourcing 100% of its electricity from renewable sources. This acknowledgment is part of Syngenta’s broader global efforts to decarbonize operations and enhance energy efficiency, with significant investments to reduce carbon emissions across its operations by 2030. The company’s initiatives span various countries, showcasing its commitment to renewable energy, carbon neutrality, and sustainable operations, including achieving carbon neutrality at its Kunshan site in China and sourcing all electricity from renewable sources in Brazil, underlining Syngenta’s leadership in environmental sustainability within the agricultural industry.
AI-Enhanced Tomato Research (2024/01/30)
Syngenta Vegetable Seeds uses AI to advance tomato research and optimize grower operations through a partnership with Source.ag. AI-driven data collection supports efficient product placement and cultivation guidance. The collaboration ensures each new tomato variety is backed by comprehensive data, ensuring quality and suitability for various environments. The integration of AI in research opens up a plethora of possibilities for agricultural research, setting a new standard in the industry.
Syngenta and Enko’s Fungicide Discovery (2024/01/19)
Syngenta Crop Protection and Enko have announced a breakthrough in agricultural technology with the discovery of a novel fungicide to combat fungal diseases in cereal crops, utilizing advanced digital technologies including AI and machine learning. This innovation, achieved by screening billions of molecules, offers a unique mode of action against fungal pathogens, addressing a critical global challenge of crop yield reduction. This discovery is a part of their broader collaboration aimed at developing sustainable crop protection solutions. Following this achievement, Syngenta and Enko are now focusing on new herbicide solutions to tackle resistance and aggressive weeds, reaffirming their commitment to sustainable agriculture and food security. Syngenta, a leader in agricultural innovation, and Enko, a specialist in safe and sustainable solutions, are thus making significant strides in the digital transformation of agriculture.
Syngenta Launches Biological Nematicide For Sugarcane (2023/12/05)
Syngenta’s new biological nematicide, CERTANO™, marks a significant advancement in sugarcane cultivation, offering a versatile solution that acts as a nematicide, fungicide, and growth promoter. Developed using Bacillus velezensis, it effectively combats a wide range of nematodes and diseases while promoting robust root and vegetative growth in sugarcane. This innovation addresses the critical issue of nematode-related yield losses, which could result in substantial financial impacts in Brazilian agriculture. Syngenta’s integrated approach combines CERTANO™ with other chemical and digital technologies, reflecting a comprehensive strategy in pest management and sustainable crop growth.
Syngenta Alliance For Soybean Protection (14/11/2023)
InnerPlant, Syngenta, and John Deere have partnered to combat fungal diseases in soybeans. InnerPlant’s technology enables early detection of plant stress caused by fungal attacks, allowing for timely intervention. This approach optimizes the use of Syngenta’s products for specific treatments, while John Deere’s See & Spray technology ensures efficient and targeted application.
Syngenta Group & CNH Industrial Collaborate to Enhance Digital Farming Solutions (2023/11/13)
Syngenta and CNH Industrial have announced a collaboration involving Syngenta’s Cropwise platform and CNH’s agricultural brands. The integration aims to provide more robust insights and reliable data for agricultural businesses by connecting various precision agricultural systems. The Cropwise platform currently serves over 40,000 users in more than 25 countries, monitoring approximately 230 million acres.
Syngenta Group Releases Nine-Month Financial Report For 2023 (2023/11/09)
Syngenta Group reported financial results for Q3 and the first nine months of 2023, showing lower sales and EBITDA compared to an exceptional 2022. Sales for the nine months were $24.3B, a 6% decrease YoY, and EBITDA dropped by 22%. In Q3, sales decreased by 13% to $6.8B, and EBITDA fell by 68%. Despite the overall lower performance, Syngenta’s Crop Protection business in China reported a 16% increase in sales, and its biological solutions sales grew by 14%. The company is actively engaging in cost management and productivity improvements to mitigate the impact of higher costs incurred in 2022.
Syngenta Group’s Leadership Evolution: Qin and Rowe Step Up (2023/10/23)
Syngenta Group announced leadership transitions, effective Dec 1, 2023. Hengde Qin will become the new CFO, succeeding Chen Lichtenstein, who’s leaving to explore other avenues. Qin, currently the Chief Human Resources Officer, has a proven track record of accomplishments. Jeff Rowe will replace Erik Fyrwald as CEO, effective Jan 1, 2024. The Group is committed to Regenerative Agriculture and operates in over 100 countries with over 57,000 employees.
Syngenta Introduces First Biologicals Service Center for Seed Treatment in Germany (2023/10/17)
Syngenta Seedcare has opened a new biological service center in Maintal, Germany, to meet the growing demand for biological seed treatment solutions across the European Union. The center is part of The Seedcare Institute and boasts cutting-edge technologies, specialized expertise in microbiology, and value-added services. The company plans to add more biological service centers to its existing institutes in the future. Syngenta Seedcare’s portfolio of biological seed treatment solutions includes EPIVIO™, ATUVA™, and NUELLO™.
Syngenta’s Agcelerators Campaign (2023/09/06)
Syngenta’s Agcelerators campaign aims to catalyze change in the agriculture sector by showcasing sustainable farming practices and innovative technologies that can help close the food, land, and greenhouse gas mitigation gaps. The campaign focuses on community engagement, aiming to unite stakeholders for more meaningful and long-term change. With its broad portfolio of solutions, Syngenta hopes to inspire a global movement committed to more responsible farming and food production practices.
Syngenta Group Reports Mixed Financial Results for H1 2023 (2023/08/31)
Syngenta Group has released its financial results for H1 and Q2 of 2023. The company reported sales of $17.5 billion for H1, with a 3% decline compared to last year. However, sales increased by 1% when adjusted for constant exchange rates. The company attributed the decline in sales to seasonal phasing and increased working capital costs. Business unit performance varied, with Syngenta Seeds showing growth of 9% while ADAMA sales decreased by 15%. Despite mixed results, Syngenta continues to focus on productivity improvements and price adjustments to mitigate the impact of higher costs.
Syngenta welcomes Michael Cottingham (2023/07/28)
Syngenta announced the appointment of Michael Cottingham as the Senior Communications Manager for Syngenta North America US Crop Protection. This strategic hiring comes at a time when the agriculture industry faces significant challenges and demands for sustainable and healthy crop production.
Syngenta Launches Syngenta Biologicals, a New Division Focused on Sustainable Agriculture (2023/07/14)
Syngenta has formed a new division called Syngenta Biologicals by merging Valagro, which was acquired in 2020, with its in-house biologicals business. This move will help the company grow in the rapidly expanding global biologicals market. Syngenta Biologicals combines Syngenta’s innovation prowess with Valagro’s proprietary technology platform. It also aims to offer farmers more complementary product and technology choices to increase sustainability. The portfolio of the new company includes a biofungicide, a biostimulant, and a foliar-applied biofertilizer.
Syngenta Introduces EQUENTO® (2023/06/06)
Syngenta Crop Protection’s Seedcare division has launched EQUENTO®, an innovative seed treatment designed to manage a range of soil pests effectively while enhancing farming sustainability. The treatment provides a novel approach to tackling challenges such as wireworms and promotes a healthy young crop essential for high yields, all while safeguarding soil health and biodiversity.
Syngenta Group To Pursue Listing On Shanghai Stock Exchange (2023/05/19)
In a strategic move, Syngenta Group, a leading global agricultural technology company, has withdrawn its application for an Initial Public Offering (IPO) on the STAR Market and will instead pursue a public listing on the main board of the Shanghai Stock Exchange.
The decision follows China’s comprehensive rollout of its registration-based share issuance scheme in February, which aimed to enhance the country’s capital market and distinguish the roles of different boards. Under this new framework, the main board of the Shanghai Stock Exchange is primarily designated to back large-scale firms exhibiting mature business models and stable earnings performance. These so-called blue-chip companies are representative of their respective industries.
Given Syngenta Group’s global leadership status in agricultural technology, the company decided to align more closely with the main board’s remit under the latest registration-based IPO scheme. In addition, the main board listing would give the company access to a more diversified pool of investors, fostering its long-term value.
The announcement to pivot its IPO plans comes as Syngenta seeks to salvage its planned 65-billion-yuan ($9.4 billion) IPO, which faced hurdles when the Shanghai bourse canceled a hearing in late March without providing a reason. The change in course demonstrates the company’s determination to proceed with its IPO plans in the face of these challenges. The company expects that a listing on the main board of the Shanghai Stock Exchange will better facilitate its IPO and provide a more suitable platform for its long-term growth and investor relations.
Ginkgo and Syngenta Seeds Partner for Sustainable Agriculture (2023/05/18)
Ginkgo Bioworks, a leader in cell programming and biosecurity, has teamed up with Syngenta Seeds, one of the world’s top agricultural technology firms, to develop innovative plant traits that produce healthier and more resilient crops. The research partnership leverages Ginkgo’s extensive protein engineering and ultra-high-throughput screening technologies and Syngenta’s expertise in designing and developing new plant traits to accelerate the creation of sustainable solutions for the agriculture industry.
Syngenta & FMC To Launch Grass Weed Control Technology for Rice Production in Asia (2023/05/17)
Syngenta Crop Protection and FMC Corporation have announced a groundbreaking agreement to introduce a novel technology for controlling grass weeds in rice farming in Asia. The innovative active ingredient, Tetflupyrolimet, was discovered and developed by FMC, with support from Syngenta, for its application in rice farming. Representing the first significant herbicide with a unique mode of action (DHODH – HRAC Group 28) in over 30 years, this advancement promises a solution for farmers grappling with weed resistance to existing herbicides.
Appoints Sinochem Holdings President Jiao Jian (2023/05/15)
Syngenta Group announced the unanimous election of Jiao Jian to its Board of Directors following a Board of Directors and Extraordinary Shareholders’ meeting on May 12, 2023. Mr. Jiao’s tenure as a director will take effect immediately. Currently serving as the President of Sinochem Holdings, the parent company of Syngenta Group, Mr. Jiao assumed the role in March of this year. He brings extensive experience in international business management, honed through his tenure at various high-ranking positions.
Syngenta Group Reports Q1 2023 Sales of $9.2 Billion (2023/04/27)
Syngenta Group, a global agricultural leader, has reported a 3% rise in Q1 2023 sales to $9.2 billion and a 1% increase in EBITDA to $1.9 billion compared to the same period in 2022. Growth was seen across all business units and was driven by the rising demand for sustainable agricultural products and services. The Syngenta seeds business saw significant growth due to price increases across all regions, while Syngenta crop protection businesses saw slower growth. Notably, Syngenta Group China reported a remarkable 26% sales growth, reaching $3.0 billion in Q1 2023, fueled by a surge in MAP and digital sales. The company also made strides in technology and product launches, including regulatory approval for its PLINAZOLIN® technology, two new insecticides in India by subsidiary Syngenta Crop Protection ADAMA, and AgriPro commercial hybrid wheat in the US.
Syngenta Crop Protection & Alphae.Bio Join Forces (2023/04/02)
Syngenta Crop Protection and Aphea.Bio has joined forces to provide European wheat farmers with a new biological seed treatment solution. This collaborative effort aims to introduce the solution ACTIV® by Aphea.Bio to multiple countries over the next five years, pending regulatory approval. ACTIV® is a biostimulant made from beneficial microorganisms that can be applied as a seed treatment on wheat. It improves the crop’s nutrient use efficiency, enabling up to 5% higher yields even with reduced fertilizer use.
Reports Strong Double-Digit Growth For 2022 (2023/03/22)
Syngenta Group announced a 19% year-on-year increase in 2022 sales, reaching $33.4bn, with all business units experiencing double-digit growth. The company’s full-year EBITDA also rose by 20% to a record $5.6bn. In the fourth quarter, sales increased by 4% compared to the same period in 2021. Sales in China increased by 21% and in the Asia Pacific (excluding China) by 3%. A subsidiary of Syngenta Crop Protection, ADAMA recorded a 16% sales increase to $6.7bn for 2022, primarily driven by strong product demand in Brazil. Syngenta Seeds also experienced a 14% sales growth to $4.7bn, with Latin America witnessing the highest increase of 27% due to strong pricing and corn growth. Syngenta Group China’s sales increased by 17% to $8.6bn, with its MAP and digital sales seeing a remarkable 76% growth to $3.1bn.
Syngenta Group Appoints Jin-Yong Cai as Independent Director (2023/03/22)
Syngenta Group has recently appointed Jin-Yong Cai as an independent director to its Board of Directors. With over 30 years of experience in the financial services industry and a deep understanding of emerging markets, Cai’s appointment is expected to significantly benefit the company’s pursuit of providing agronomic solutions and digital services to farmers worldwide.
Launches New Agriculture Accelerator (2023/03/15)
On March 14th, 2023, Syngenta Group announced the launch of “Shoots by Syngenta,” a global platform that aims to tackle agriculture’s most complex challenges, increase innovation, and advance sustainable agriculture. The platform will begin with science-based innovation challenges, connecting scientific discovery and creativity, bringing together academics, research institutes, startups, and cross-industry sectors to collaborate with Syngenta’s global network of 5,000+ scientists. Working together will create more sustainable and efficient solutions for farmers, consumers, and the planet.
Yara & Syngenta Group Joins Forces With Varda (2023/03/03)
Yara, a crop nutrition company, and Syngenta Group, an agriculture innovation company, have joined forces with Varda, a new ag-tech start-up founded by Yara, to accelerate the adoption of Global Field ID. This new technology standard facilitates field data discovery and data sharing in the agriculture and food industry. Varda’s technology digitally maps agricultural land and assigns unique IDs to land plots, creating a ‘QR code for fields’ delivered to users via an API to create a ‘common geospatial language’ for the entire industry. In addition, the system will be used as an additional data layer within the companies’ digital farming tools, building a shared reference framework to annotate field-level data, which is expected to generate multiple benefits.
The European Patent Office Decides To Uphold Syngenta’s Patent On Bred Peppers (2023/02/21)
The European Patent Office (EPO) has upheld Syngenta Seeds’ patent on naturally whitefly-resistant peppers, despite objections raised in 2014 by organizations such as Bionext. This decision contradicts a 2017 ruling that naturally occurring properties in plants cannot be patented and has sparked concerns for the future of the seed industry. Critics, including Bionext, argue that Syngenta Seeds did not innovate but used conventional breeding techniques and fear that the decision may lead to reduced plant variety, higher prices, and increased reliance on large seed companies. There are also worries about the impact on gene banks, as the EPO’s decision questions the effectiveness of the non-patenting statement that seed companies sign when extracting genetic material from these banks. Although it’s unlikely that the ruling will be appealed as the patent expires in 2027, its implications for future patent applications remain uncertain.
India Subsidiary Partners With IoTechWorld To Expand Drone Spraying In India (2023/02/10)
Syngenta India Pvt. Ltd. has announced its partnership with IoTechWorld Avigation to bring drone spraying to the agricultural sector in India. The partnership, outlined in a three-year memorandum of understanding (MoU), aims to promote Syngenta-approved insecticides using IoTech’s drone technology.
Image provided by Syngenta
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