Syngenta's Third Quarter 2014 Sales: $3.0 Billion
21 Oct 2014 --- Group sales, including Lawn and Garden, increased by 2 percent at constant exchange rates in the third quarter of 2014. The increase in reported sales was also 2 percent.
For the first nine months of 2014, sales rose by 3 percent at constant exchange rates to $11.5 billion.
Third quarter integrated sales by region
Integrated sales rose by 3 percent at constant exchange rates to $2.8 billion, with prices up 3 percent and volumes unchanged. Excluding solo glyphosate, which is being deliberately reduced in order to improve profitability, sales were up 5 percent.
In Latin America sales were up 3 percent, or up 8 percent excluding glyphosate. Drought affected sales in LATAM North and in the Brazilian sugar cane market. There was strong demand for the new fungicide ELATUS in Brazil, as growers recognized its unrivaled performance against soybean rust. In Asia Pacific sales grew by 3 percent after a strong first half. Emerging markets continued to perform well despite the delayed monsoon in South Asia. Sales were lower in Australasia owing to limited weed and disease pressure.
Sales in Europe, Africa and the Middle East (EAME) rose by 3 percent. In Central and North Europe, growth was driven by oilseed rape and HYVIDO hybrid barley seeds. South East Europe continued to show good growth, while low season sales in the CIS were down. Sales in North America were driven by strong selective herbicide sales in advance of the next US season. Insecticide sales also expanded with high pest pressure in the southern USA. Seeds sales were lower primarily due to the divestment of the Dulcinea Farms business in December 2013.
Third quarter product line sales
In Selective herbicides, strong growth in CALLISTO in North America more than offset lower herbicide use on sugar cane in Latin America. Non-selective herbicides sales were down 10 percent as a result of the planned reduction in glyphosate volumes; GRAMOXONE showed double digit growth. Insecticides expanded in North America and in Brazil, where the DURIVO family was effective against caterpillar pressure in soybean, corn and cotton. Growth in Fungicides was mainly driven by demand for ELATUS in Brazil, with orders of over $200 million: recorded sales for the first nine months were $75 million. Reduced Seedcare sales reflected lower sales to other seed producers and the EU-wide suspension of the use of neonicotinoids, including CRUISER.
Seeds sales were 5 percent higher excluding the impact of the Dulcinea divestment. Corn and soybean sales were down 3 percent in the quarter but were slightly higher for the first nine months. Sales of AGRISURE VIPTERA corn in North America represented around 30 percent of the portfolio. Robust growth in Diverse field crops was driven mainly by hybrid barley and oilseed rape. Excluding Dulcinea, growth in Vegetables was 9 percent with good performances in EAME and Asia Pacific.
Lawn and Garden sales were down 5 percent reflecting weak demand in Flowers in EAME and delays in vector control tenders in Africa.
Outlook
Mike Mack, Chief Executive Officer, said: “Performance in the second half of the year is primarily driven by Brazil, where the season is just now under way and is still dependent on rainfall. We are seeing strong demand for our newly launched fungicide ELATUS™ for which we are on track to achieve targeted sales.
For the first nine months of this year profitability has been affected by adverse currency movements and sales mix. As a result the full year EBITDA margin will be below last year’s level. In the fourth quarter we expect a higher rate of sales growth and for the full year continue to target integrated sales growth of around 6 percent at constant exchange rates. In a challenging market environment, our focus is on improving profitability and we are on track to realize the first benefits from the implementation of our operational leverage program in 2015.”
