Q3 Group sales at $6.8 billion
Syngenta Group announced financial results for the third quarter and first nine months of 2023.
Sales of the Group for the third quarter were $6.8 billion, down 13 percent (-13% CER) and EBITDA was $0.3 billion, down 68 percent from prior year. The EBITDA was significantly impacted by a softer market in Brazil versus a record high in 2022 and a one-time seed inventory correction in Brazil, in addition to the timing of a royalty receipt, which was advanced to Q2 as noted in the H1 earnings release.
Group sales for the first nine months of 2023 were $24.3 billion, down 6 percent year-on-year (-3% CER) and EBITDA was 22% lower (-20% CER) when compared to an exceptionally strong 2022.
In the first nine months of 2023, the industry-wide channel destocking continued as distributors and retailers further reduced inventories they built up in response to the supply chain disruptions of 2022. Overall farmer income and use of agricultural products, solutions and services remain robust. However, high working capital costs for customers due to sustained higher interest rates prompted many channel partners and farmers to order closer to application. These factors weighed on the comparison with the same period last year, when the Group achieved record sales and profits.
Sales of Syngenta Crop Protection and ADAMA were lower compared to the exceptionally strong first three quarters of the prior year. Crop Protection in China continued to see strong growth in the first nine months of 2023, with sales up 16 percent year-on-year, benefiting from launch of new technologies. Syngenta Group’s biological solutions grew 14 percent in sales compared to the first nine months of the previous year.
The Seeds business grew 3 percent to $3.3 billion sales in the first nine of months of 2023. Year-on-year comparison of Q3 was distorted by an earlier phasing of royalty income, realized in Q2 this year, while being recorded in Q3 last year. The Seeds business in Latin America saw lower sales and profit due to a one-time inventory adjustment.
Syngenta Group China grew by 9 percent in the first nine months of 2023, with total sales of $7.7 billion. MAP, Syngenta Group’s Modern Agriculture Platform grew in the same period by 25 percent to $3.3 billion, while the number of MAP centers further increased by 162 to a total of 727.
Syngenta Group continued its productivity improvements, cost containment and, where applicable, price adjustments to help mitigate the impact of higher cost incurred in 2022. Syngenta Group's EBITDA margin for the first nine months of 2023 was 14.6 percent, which is lower than the record high EBITDA during the same period last year.
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