Syngenta details robust performance with Group sales increased by 20 percent in Q3 2022

Syngenta Group on Thursday announced strong financial outcomes for the third quarter and first nine months of 2022. Third-quarter EBITDA for 2022 increased by 24 percent to $1.0 billion, led by greater sales of innovative products and services, increased productivity, and prices counteracting elevated costs. Group sales for the first nine months of 2022 were $25.9 billion, higher by $4.9 billion, 24 percent year-over-year (YoY). EBITDA for the first nine months of the year was $4.6 billion, 30 percent higher year-over-year.

Syngenta Group’s robust performance extended in the third quarter even through a progressively challenging macroeconomic environment, as well as the prolonged support of the US dollar. All business units realized great momentum, gaining from strong demand for the Group’s varied products and services which help advance regenerative agriculture, enabling farmers to cultivate crops sustainably while enhancing harvests. Sales growth was attributable to a sizable increase in sales across all business units, driven by robust grain prices, attractive farm economics and inventory builds across the value chain. Essential price increases were applied to support and mitigate greater costs.

The Group continued to further innovative seeds, crop nutrition, and crop protection technologies that aid farmers focus on challenges initiated by climate change, and restoring and safeguarding soil health, biodiversity, and water systems. Syngenta Group China’s MAP sales increased 80 percent to $2.6 billion in the first nine months and extended to 565 centres.

Average sales per centre were higher by 30 percent year-over-year, aiding farmers to take agricultural transformation by arming them with solutions that enhance their crop quality and reduce environmental impact. Syngenta Group’s digital offerings have achieved 208 million acres worldwide profiting from a strong commitment by farmers in key markets. (For comparison, 208 million acres is approximately 1.25 the land area of France.)

Amid global macroeconomic challenges, Syngenta Group continued to operate its supply chains to mitigate greater procurement, logistics, and energy costs. The Group is operating productivity initiatives, pricing to assist in offsetting cost rises, and other activities to mitigate the enduring headwinds. EBITDA margin soared 0.9 percentage points from a year earlier to 17.6 percent in the first nine months of 2022.

Syngenta crop protection

In the first nine months of 2022, Syngenta Crop Protection sales increased 27 percent to $12.6 billion.

Sales in Europe, Africa, and the Middle East grew by 7 percent, and in Asia Pacific (excluding China) 5 percent. Led by robust price increases and volume growth, sales in Latin America soared 62 percent; North America expanded 17 percent, and China by 30 percent.

ADAMA

In the first nine months of 2022, ADAMA sales increased 22 percent to $5.2 billion, led by strong demand and elevated prices, guided by the business in Brazil. Sales in Europe increased by 4 percent; India, the Middle East, and Africa by 3 percent; Asia Pacific (excluding China) by 19 percent; North America by 17 percent; Latin America by 42 percent; and China by 59 percent.

Syngenta seeds

In the first nine months of 2022, Syngenta seeds sales increased by 14 percent to $3.2 billion. Field crop sales increased by 13 percent in North America; Europe, Africa, and the Middle East by 16 percent; Latin America grew 17 percent; Asia Pacific (excluding China) by 23 percent and China by 35 percent. Sales of Vegetable Seeds were 1 percent lower due to an unfavourable currency impact, underlying growth at continual exchange rates stood at 6 percent.

Syngenta Group China

Syngenta Group China, consisting of the Group’s Seeds, Crop Nutrition, Crop Protection, MAP, and digital events in China, attained sales of $7.1 billion, up 22 percent, in the first nine months of 2022. Fundamental growth, altering for the new distribution model of the Crop Nutrition nitrogen commodity enterprise, was 36 percent. Syngenta Group China’s Crop Protection sales grew 22 percent. Sales of Seeds in China, as well as vegetables, increased by 35 percent led by robust demand for rice and corn. Crop Nutrition sales were 9 percent lower; fundamental growth was 16 percent. Prices have diminished in the third quarter. In the first nine months of the year, MAP sales increased 80 percent to $2.6 billion. The total of MAP centres grew by 127 to a total of 565. MAP digital applications attained more than 2.2 million registered users, armed with digital tools that help modernize farms throughout China.