SWITZERLAND – Syngenta Group released its financial results for the first quarter of 2024, revealing a significant decrease in sales and earnings compared to last year.
The company reported a decline in sales to US$7.4 billion, representing a 20 percent drop, or 18 percent at constant exchange rates (CER), from the first quarter of 2023.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also declined significantly, falling 34 percent to US$1.2 billion.
The downturn was primarily attributed to continued industry-wide destocking in Crop Protection, as distributors and retailers responded to high-interest rates by reducing inventories, which impacted working capital costs.
Syngenta’s Crop Protection segment, which accounts for approximately 40 percent of its total sales, experienced a significant sales decline, plummeting 24 percent.
ADAMA, a subsidiary of Syngenta Group focused on post-patent active ingredients, also faced challenges during the quarter, with a 16 percent reduction in sales, particularly in the Asia Pacific (excluding China) and Europe regions.
Despite the overall downturn, Syngenta’s Seeds business, particularly in Vegetables, Flowers, and China, demonstrated resilience and strong growth. Despite the challenging market conditions, this positive performance is a testament to the company’s strength and strategic focus.
Syngenta Group China reported an 18 percent decrease in sales from the record first quarter of the previous year. However, growth in Seeds and branded formulation crop protection businesses partially offset this decline.
Syngenta emphasized its ongoing focus on operational efficiency and productivity to manage lower volumes and prices.
The company remains committed to innovation, evident through new product launches and the integration of newly acquired businesses, such as Dafeng Seed in China, enhancing its corn portfolio.
Additionally, Syngenta introduced new sustainability priorities, emphasizing higher yields with lower environmental impact, regenerative agriculture adoption, rural prosperity improvement, and sustainable operations.
These initiatives align with Syngenta’s strategy to integrate sustainability into its business model and operations.
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