Syngenta Group today announced financial results for the first half and the second quarter of 2023. Sales for the first half of 2023 were $17.5 billion, down $0.6 billion or 3 percent year-on-year, compared to an exceptionally strong 2022. Sales were up 1 percent at constant exchange rates (CER). EBITDA for the first half of the year was $3.2 billion, 7 percent lower (-2% at CER) year-on-year. Sales for the second quarter 2023 were $8.3 billion, down $0.8 billion or 9 percent (-5% at CER). In Q2 2023, EBITDA was 15 percent lower than prior year (-12% at CER) at $1.4 billion.

Sales in the first half of 2023 reverted to customary seasonal phasing in Crop Protection and Crop Nutrition as distributors and retailers reduced stocks built up to withstand prior year’s supply chain disruptions. Sales were also impacted by increasing customer working capital costs in a higher interest rate environment, causing many channel partners and farmers to set lower target inventory levels. This performance is in comparison to the same period last year, in which the Group achieved record sales and profit.

Syngenta Crop Protection and ADAMA experienced lower sales compared to exceptionally strong quarters in the prior year. The market for Crop Protection, especially in Latin America, had seen accelerated demand in H1 of 2022 due to farmer concern about supply bottlenecks, which also resulted in higher costs and selling prices.

The Seeds business grew 9 percent to $2.5 billion in the first half of 2023. Earlier phasing of royalties in 2023, which were realized in Q3 last year, positively impacted Seeds’ sales in Q2 2023 and will make Q3 year over year comparison more challenging.

Syngenta Group China continued its growth, achieving total sales of $5.9 billion in the first half of 2023. MAP, Syngenta Group’s Modern Agriculture Platform, was again a strong driver, helping farmers modernize their practices sustainably, while boosting crop quality and farm profitability. Sales for MAP grew 40 percent to $2.5 billion as the number of MAP centers increased by 151 from a year earlier to a total of 691 centers. Average sales per center were up 9 percent year-on-year.

All business units were impacted by adverse currency effects as the U.S. dollar strengthened.