Syngenta Group announced financial results for the first half and the second quarter of 2024. Sales for the first half of 2024 were $14.5 billion, down $3.0 billion or 17 percent year-on-year, compared to a strong 2023 H1. Sales were down 15 percent at constant exchange rates (CER).

EBITDA for the first half of the year was $2.1 billion, 36 percent lower (-30% at CER) year-on-year. The Group's EBITDA margin for the first half of 2024 was 14.1 percent, down 4.2 percentage points compared to 18.3 percent in H1 2023.

Sales for the second quarter 2024 were $7.2 billion, down $1.1 billion or 14 percent (-11% at CER). In Q2 2024, EBITDA was 39 percent lower than the prior year (-35% at CER) at $0.8 billion. Sales remained affected by significant industry-wide channel destocking in Crop Protection. Overall farmer income was lower, and distributors and retailers continued to cut inventories to address the pressure of reducing working capital amid the higher interest rate environment. These factors, in addition to a provision reduction in 2023 and unfavorable mix, weighed negatively with the EBITDA comparison from the same period last year.

Sales were additionally impacted by lower farmer income from reduced agricultural commodity prices and unfavorable weather, especially in the United States, at the beginning of the planting season, as well as an overcapacity in the market for some commodity crop protection products.

In a challenging market, Syngenta Group introduced additional measures to enhance productivity, operational efficiency and cash flow, reducing capital expenditures and working capital. Despite the market challenges, cash flow in the first half improved significantly compared to the prior year.

With signs of market stabilization and a lower 2023 baseline, Syngenta Group expects sales and margin improvements in the second half.

Syngenta Crop Protection sales declined in a market that remained challenging. The second quarter proved particularly difficult, with ongoing channel inventory destocking linked to the higher interest rate environment and adverse weather conditions affecting several markets. Additionally, buying patterns shifted further towards last-minute decision-making. Despite these challenges, Biologicals delivered further growth.

ADAMA experienced a weaker first half of the year, amid a challenging environment for suppliers of post-patent active ingredients. The business downturn in Asia Pacific (excluding China) and Europe continued to significantly impact the comparison. Despite lower sales, ADAMA delivered higher profitability and remains committed to accelerating its ongoing business and transformation plan, which already resulted in an improving cash flow in H1 2024.

The Seeds business delivered $2.4 billion sales in the first half of 2024, 4 percent lower year-on-year (-2% at CER). Vegetables Seeds continued to show strong growth, offset by the performance of Field Crops, although sales recovered in the second quarter.

Syngenta Group China experienced a 16 percent sales decline in the first half of the year compared to last year’s record period. This sales decline was mainly the result of the active downsizing of low-margin business and negative currency effects, which were partially mitigated by an improved business mix.

As previously announced, ADAMA’s board of directors has appointed Gaël Hili as its President and Chief Executive Officer, effective October 1, 2024. He will succeed Steve Hawkins, who has been appointed President of Syngenta Crop Protection, also effective October 1, 2024.