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The plant protection and seed manufacturer’s sales in the reporting year were $32.2 billion, down 4 percent from the previous year. Calculated at fixed exchange rates, the result was a minuscule minus 1 percent.
This is because wholesalers and retailers are actively reducing stocks of plant protection products, Syngenta said in a statement released on Friday. These were increased significantly last year due to supply chain disruptions.
At the same time, high interest rates would force the partners to reduce their working capital. The bottom line: Syngenta announced that demand for new and innovative crop protection products remained stable in the fourth quarter.
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Plant protection products contributed almost half of sales ($15.5 billion). Syngenta estimated the decline in its Crop Protection business at 5 percent. Israeli subsidiary Adama (-17 percent) also had lower sales than the previous year.
In contrast, Syngenta’s seed division (+2 percent) and independently designated national company Syngenta Group China (+11 percent) achieved higher sales. The new “home market” has contributed to sales of $9.6 billion since its acquisition by Chinese state-owned company Chemchina.
14 percent surplus
Overall, lower sales volumes also had an impact on the sales prices Syngenta was able to achieve. As a result, operating profit at the EBITDA level fell by a significant 18 percent to $4.6 billion. Excluding exchange rates, the surplus was 14 percent below last year.
Syngenta Group, headquartered in Switzerland, is owned by Chinese. It includes the business units of Switzerland-based Syngenta Crop Protection, US-based Syngenta Seeds, Israel-based Adama and China Syngenta Group.
Further strengthening market share
Syngenta AG was taken over by Chemchina in 2015. The newly formed group has repeatedly announced in recent years that it wants to return to the Chinese stock market. On Friday, the group said it was withdrawing its application for an initial public offering on the Shanghai Stock Exchange.
Among other things, they said they wanted to focus on further consolidating their market share. As soon as the necessary conditions are met, the company will strive to proceed with its IPO in China or another international stock exchange. The company will also explore alternative financing sources.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
