Syngenta Release Its Semi-annual Report: Pesticide Sales are $5.5 Billion

Sales in the first half of the year are $7.25 billion, rising 5%. Without the antimonopoly assets stripping in beetroot seeds and compulsory plant protection, sales increased 7%.

Plant protection: sales grew 6%, and the growth was 8% excluding asset stripping.
Seeds: sales were flat, and sales growth was 5% excluding asset stripping of beetroot seeds.
EBITDA was $1.7 billion, rising 1%, and the growth was 8% excluding asset stripping. Profit margin was 23.4% (the first half of 2017: 24.2%).
FCF before acquisition was $178 million (the first half of 2017:$21 million).

Table1 Key points in financial statement

  Million dollars Million dollars % %
sales 7,249 6,920 5 2
Net profit 1,229 928 32  
EBITDA 1,700 1,675 1 -1

 

Erik Fyrwald, CEO of Syngenta, said, “Compared to the first half of 2017, sales grew 5% in the first half of this year, Without the antimonopoly assets stripping in beetroot seeds, sales increased 7%. Considering the tough market, the performance was encouraging. We will continuously focus on serving customers, to improve their profitability and sustainable development. The good news is that all the areas have recovered growth (excluding asset stripping). Especially for Brazil, it has realized strong performance after years of declining sales. Global productivity growth helps offset the growth in raw materials and logistics cost, which limited the effect of EBITDA. Although we face with the continuously rise in oil price, and pressure from supply shortage of key chemical TC as well as rise in logistics cost, we will increase the productivity and lower the impact on profit margins to maximum.”

Key points in financial statement in the first half of 2018

Syngenta’s sales in the first half of the year are $7.25 billion with the growth of 5%. Compared to the first half of 2017, it realized the growth of 2% according to CER calculation. Assets stripping lower two percentage points of the growth rate in the report. Sales of plant protection are $5.5 billion, YoY growth of 6%, and irrespective of 2% sales drop caused by antimonopoly assets stripping, it realized the growth of 3% according to CER calculation. Sales of seeds are $1.75 billion, same as in the first half of 2017, and the growth was 5% excluding asset stripping of beetroot seeds.

 

Sales in APAC grew 8% compared to the first half of 2017, which attributes to the strong performance of plant protection and seeds product line.
Plant protection and vegetable seeds in China enjoyed strong sales performance in the first half of the year, and the sales growth was 16% excluding asset stripping.

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