By: ICN Bureau
Last updated : April 29, 2024 3:48 pm
Results in line with expectations for first quarter 2024 amid continued destocking by distributors and retailers
Syngenta Group today announced financial results for the first quarter of 2024. Sales for the first quarter 2024 were US$ 7.4 billion, down US$ 1.8 billion or 20 percent (-18% at CER), compared to a strong first quarter 2023. First quarter 2024 EBITDA decreased 34 percent (-26% at CER) from prior year to US$ 1.2 billion.
Sales in the first quarter of 2024 continued to be impacted by industry-wide channel destocking in Crop Protection as distributors and retailers further reduced inventories in response to the pressure to lower working capital in the higher interest rate environment.
Given the current market environment, the Group remained focused on measures to improve operational efficiency and productivity to offset lower volumes and prices. EBITDA margin for the Group was 16.7 percent versus 20.2 percent in the first quarter 2023.
Syngenta's Crop Protection, driver of approximately 40 percent of Syngenta Group’s sales, declined amidst a still challenging crop protection market.
ADAMA also recorded a weaker first quarter compared to Q1 2023 in a challenging environment for suppliers of post patent active ingredients, with the business downturn in Asia Pacific (excluding China) and Europe greatly affecting the comparison.
Syngenta Seeds overall was 8 percent lower than in the first quarter last year but showed strong growth in Vegetables Seeds, Flowers and in China.
Syngenta Group China saw a sales decline of 18 percent versus last year’s record first quarter. Its Seeds business maintained its growth and the branded formulation crop protection business showed further growth on the back of recently launched products. The sales decline was partially offset by a better business mix and cost reductions.