Syngenta boosts sales and profits

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The company announced on Wednesday that all of the group’s businesses grew by double digits. Syngenta Group made a total turnover of 33.4 billion dollars, an increase of 19 percent compared to the previous year. “Necessary” price increases were made to cover the increasing costs.

The sustained high price level for grain probably had a positive effect on sales growth. Prices of important products such as wheat have increased since the war in Ukraine. This is Syngenta and Co. to protect farmers’ crops. increases the incentive to use their products.

But recently the momentum has slowed a bit. In the last quarter of the year, the group made a turnover of 7.5 billion dollars, only 4 percent more. Because last year, farmers bought the crops they needed earlier in the year in anticipation of global supply shortages.

Syngenta recorded the strongest growth in its crop protection business, growing 21 percent. With $16.3 billion, it contributed half of sales in 2022.

Seeds provided $4.1 billion (+14%) and generic pesticide manufacturer Adama provided $6.7 billion (+16%). The company has grown dynamically in China’s “domestic market” as well. Syngenta Group China contributed $8.6 billion (+17%) of sales.

Revenues of the Modern Agriculture Platform (MAP) in China rose 76 percent to $3.1 billion. The network supports farmers with modern solutions for climate-friendly cultivation and sales of their products.

Syngenta also received the highest marks in terms of profitability. At EBITDA, operating profit rose 20 percent to $5.6 billion and grew slightly faster than sales. This is also an all-time high, Syngenta said.

However, operating profit in the fourth quarter was $0.9 billion, a quarter below the previous year’s level. Syngenta attributes this to higher costs and increased provisions due to the uncertain macroeconomic environment.

Switzerland-based Syngenta Group is owned by China. It consists of the business units of Switzerland-based Syngenta Crop Protection, USA-based Syngenta Seeds, Israel-based Adama and Syngenta Group China.

Syngenta AG was acquired by the Chinese group ChemChina six years ago. The group, which has been shaped around the Swiss company in recent years, has announced several times that it plans to return to the stock market in 2022.

When asked by the AWP news agency, a spokesperson said that, in principle, an IPO is still planned at the STAR Market in Shanghai. “We are ready, but when the IPO can take place depends on regulatory approval.” (SDA)

Source :Blick