Syngenta Delivers Confident Growth
CHEMMONITOR.COM – Syngenta reported growth in its H1 2012 results against the corresponding period of 2011. Revenue added 7.3% to reach USD 8,265 M, gross profit increased by 7.8% and amounted to USD 4,203 M, operating income comprised USD 1,839 M which is a 0.5% growth, and net income was USD 1,500 M, gaining 5.1% to its previous value.
Sales volumes increased by 6% during the first half of 2012, selling prices added 4%. Europe, Africa & Middle East regions together brought USD 3 B (up 2.9%), North America generated USD 2,781 M (up 23.5%), Latin America contributed USD 1,043 M (up 1.1%), Asia Pacific added USD 997 M (down 2.8%). In Europe, Africa & Middle East main growth areas were CIS countries and France, in North America sales were supported by strong demand and good product mix, Latin America delivered moderate growth despite good seeds sales, Asia Pacific sales were pressed by the impact of range rationalization in India and Japan and the withdrawal of GRAMOXONE® in South Korea.
Lawn and Garden segment reflected a 5% decline in revenues which amounted to USD 436 M. Segment results were negatively impacted by challenging environment in Europe and US.
Crop protection products generated USD 5,674 M of revenues during the period. Selective herbicides, Non-selective herbicides, Fungicides, Insecticides, Seed care, and Other crop protection products contributed 33.9%, 10.5%, 30.5%, 15.4%, 8.5%, and 1.2%, respectively, to the total amount. Seeds sales brought Syngenta USD 2,195 M. Corn & Soybean comprised 57.8% of the value, Diverse Field Crops contributed 25%, and Vegetables added 17.2%.
For the second part of the year, Syngenta will focus on Latin American region which promises good soybean sales. The company plans to improve its EBITDA margin despite traditional severe seasonality expressed by interim results.
Formed in 2001 and headquartered in Basel (Switzerland), Syngenta engages in pesticides and seeds sale. With over 26,000 employees in about 90 countries the company is a world leader in its fields. Company’s key crops contain Cereals, Corn, Lawn & Garden, Oilseeds and Sugar beet, Rice, Soybean, Sugar cane and Vegetables. Syngenta is traded on New York Consolidated under the ticker SYT.