Global agricultural technology company Syngenta Group has reported sales of $14.5 billion in the first half of 2024 (H1 2024), which is down 17% or $3 billion compared to the same period last year.
Group EBITA (earnings before interest, tax, non-controlling interests, depreciation, amortisation, restructuring and impairment) for the first half of the year was $2.1 billion, down 36% year-on-year.
The Swiss headquartered firm said that the results were affected by continued destocking and higher “just-in-time purchasing” by distributors and retailers.
Sales were also impacted by lower farmer income from reduced agricultural commodity prices and unfavorable weather, particularly in the US, at the beginning of the planting season.
“These factors, in addition to a provision reduction in 2023 and unfavorable mix, weighed negatively with the EBITDA comparison from the same period last year,” it said.
The financial results show that sales for the second quarter (Q2) of 2024 were $7.2 billion, down $1.1 billion or 14% on year previous, while EBITDA in the period was 39% at $800 million.
Syngenta
Syngenta Crop Protection sales were 21% at $6.2 billion in the first half of 2024 amid “ongoing channel destocking in key markets”, except for China.
Sales were also impacted by adverse weather conditions across key markets, including flooding in South Brazil and heavy rains in Western Europe.
Unfavorable weather led to a delayed planting season in the US which in turn affected purchasing patterns in Q2 2024.
The decline in agricultural commodity prices further decreased the demand for crop inputs.
In the first six months, sales in North America were 37% lower, while sales in Europe, Asia, the Middle East and Africa all decreased by 17%. However, the company noted that sales in China were up 9%.
Over the first half of 2024, seeds sales were $2.4 billion, which is down 4% year-on-year.
Field crops sales in North America grew 2%; sales in China grew 29%, while sales in Europe were flat.
As the Latin America season begins, Syngenta said it is seeing a strong start in Brazil delivering 38% sales growth.
Sales in the south and north of Latin America are 34% lower, largely due to corn stunt disease causing a feeble market in Argentina.
In Asia, Middle East and Africa sales decreased 33% due to ongoing trade restrictions.
Sales of vegetable seeds increased by 8% and sales of flowers were 3% higher.
Syngenta’s ADAMA division reported a sales drop of 16% to $2.1 billion in the first half of 2024, while Syngenta Group China achieved sales of $5.4 billion in the first half of 2024, 16% lower year-on-year.
In a challenging market, Syngenta said that it introduced additional measures to enhance productivity, operational efficiency and cash flow, reducing capital expenditures and working capital.
“Despite the market challenges, cash flow in the first half improved significantly compared to the prior year.
“With signs of market stabilisation and a lower 2023 baseline, Syngenta Group expects sales and margin improvements in the second half [of 2024],” the company said.
Syngenta Group is one of the world’s biggest agricultural technology companies, employing around 60,000 people and operating in more than 100 countries.
