Syngenta was boosted in Q4 of their full-year results from continued demand for innovative crop protection products and double-digit growth in China
Coming off a previous record season the latest full-year results for Syngenta Group sales dipped slightly by 4% but at $32.2 billion there is still plenty of profit in being a chemical supply company for farming.
The biggest takeaway was how well Q4 Group sales grew at $7.9 billion, that was 5% up, on the same time last year, and gave the company a handy Q4 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) at $1.0 billion, up 15% on the same time last year.
It was the Syngenta Group Chinese segment that shone more brightly with a strong 11% year-over-year sales growth, reaching $9.6 billion in full-year results. This was mainly due to Chinese farmers taking up new technology with MAP and digital sales growing by 26% over the previous full-year results.
Overall, the Syngenta Group is expecting continued strong demand, benefitting from the challenges farmers face in Crop Protection with the need for new innovative technologies
Singled out for special mention from Syngenta Group executives were the results they expect in the future from their Insect-control products containing PLINAZOLIN® technology, already achieving particularly strong sales across Brazil and Asia Pacific.
Fourth quarter and full year 2023 results
Syngenta Group sales for full-year 2023 were $32.2 billion, down $1.2 billion or 4% year-on-year (-1% CER). Full-year EBITDA decreased 18% from the Group’s all-time high in 2022 (-14% CER).
Sales in 2023 were impacted by continued industry-wide channel destocking in Crop Protection, with distributors and retailers actively reducing inventories previously accumulated in reaction to the supply chain disturbances of the prior years, while under pressure to lower working capital due to prolonged higher interest rates.
Fourth quarter sales were $7.9 billion, up 5% (+6% CER), driven by Syngenta Crop Protection and by the strong growth of Syngenta Group China. This compares with the fourth quarter of 2022 when industry-wide destocking began. EBITDA for the fourth quarter grew 15% (+10% CER), exceeding the record-setting fourth quarter EBITDA of $0.9 billion in Q4 2022.
Full Year 2023
| FY 2023 | FY 2022 | Change | Change (CER) | |
| $bn | $bn | % | % | |
| Sales | 32.2 | 33.4 | -4 | -1 |
| EBITDA | 4.6 | 5.6 | -18 | -14 |
Q4 2023
| Q4 2023 | Q4 2022 | Change | Change (CER) | |
| $bn | $bn | % | % | |
| Sales | 7.9 | 7.5 | 5 | 6 |
| EBITDA | 1.0 | 0.9 | 15 | 10 |
Global crop protection markets in 2023 were characterized by a strong destocking pressure, triggered by an inventory build-up in previous years and a substantial increase in interest rates. The resulting contraction in demand led to global volume and price reductions, particularly in Latin America and commoditised parts of the portfolio.
These factors weighed on the comparison with 2022 when Syngenta Group achieved record sales and profits.
Syngenta Crop Protection sales in FY 2023 experienced a modest 5% decrease in comparison to the previous year, totalling $15.5 billion. Syngenta Group’s biological solutions grew 11% in sales to $0.4 billion compared to last year.
The seeds market continued to be strong and resilient in 2023 despite softer commodity prices towards the end of the year. The Seeds business grew 2% to $4.8 billion in 2023.
Syngenta Group China maintained its momentum. In 2023, sales of Syngenta Group China increased by 11% (+18% CER) to $9.6 billion, with fourth-quarter sales growing as much as 19% (+28% CER) to $1.9 billion.
Full-year sales of Syngenta Group China’s Modern Agriculture Platform (MAP) grew 26% to $3.9 billion as the number of MAP centres increased by 113 to a total of 741 outlets.
In 2023, Syngenta Group remained focused on measures to improve operational efficiency and productivity to offset lower volumes and prices.
Sales from synergy effects amounted to $1.2 billion for the full year, with a profit contribution of almost $0.5 billion.
EBITDA margin for 2023 was 14.2%, 2.5 percentage points lower than in 2022.
Sales by Syngenta business divisions
Full Year 2023
| FY 2023 | FY 2022 | Change | Change (CER) | |
| $bn | $bn | % | % | |
| Syngenta Group | 32.2 | 33.4 | -4 | -1 |
| Syngenta Crop Protection | 15.5 | 16.3 | -5 | -3 |
| ADAMA | 5.6 | 6.7 | -17 | -15 |
| Syngenta Seeds | 4.8 | 4.7 | 2 | 1 |
| Syngenta Group China | 9.6 | 8.6 | 11 | 18 |
| Eliminations | -3.3 | -2.9 | n/a | n/a |
Q4 2023
| Q4 2023 | Q4 2022 | Change | Change (CER) | |
| $bn | $bn | % | % | |
| Syngenta Group | 7.9 | 7.5 | 5 | 6 |
| Syngenta Crop Protection | 4.0 | 3.7 | 9 | 8 |
| ADAMA | 1.4 | 1.5 | -11 | -12 |
| Syngenta Seeds | 1.5 | 1.5 | -2 | -6 |
| Syngenta Group China | 1.9 | 1.6 | 19 | 28 |
| Eliminations | -0.9 | -0.8 | n/a | n/a |
Syngenta Crop Protection
Full-year sales of Syngenta Crop Protection were 5% lower at $15.5 billion after exceptional growth in the previous year.
Sales in Europe, Africa and the Middle East decreased by 1% and in Asia Pacific (excluding China) by 5%. Sales in Latin America decreased by 11%; North America grew by 2%. Sales in China were 18% higher. At CER, the sales grew in all regions except for Latin America.
In 2023, Syngenta Crop Protection successfully launched innovative technologies. PLINAZOLIN® technology achieved accelerated registrations across Asia and LATAM, including India, Vietnam, Indonesia, the Philippines and Brazil. ADEPIDYN® technology was introduced to now 52 countries and generated nearly $1 billion in sales, while SOLATENOL® technology is also close to reaching the same milestone.
The business also experienced continued momentum in Biologicals with sales up by 11% and the Seedcare business growing by 1% for the full year 2023. Syngenta Professional Solutions sales were up by 11%.
ADAMA division
ADAMA sales decreased 17% to $5.6 billion for the full year 2023, with significant channel destocking, particularly in the Americas, affecting the comparison.
Sales in Europe, Africa and the Middle East were 8% lower; sales in North America were 20% lower and Latin America sales decreased 19%, impacted by the contraction of the overall North and South American crop protection markets as a result of channel destocking and lower prices. Asia Pacific (excluding China) sales were 12% lower and China decreased 25% due to pricing pressure and high channel inventories in commodities.
ADAMA launched five new cereal fungicide products in Europe, comprising one of the most robust portfolios in the industry for cereal disease control in the region.
ADAMA has initiated a transformation plan, focusing on the quality of the business and at the same time bringing a strong focus on advancing proprietary formulation technologies to provide its customers additional value in the off-patent market.
Syngenta Seeds division
Syngenta Seeds sales grew 2% to $4.8 billion in the full year 2023 in an overall growing seeds market.
Field crop sales in Europe, Africa and the Middle East grew 9%; North America remained flat; Asia Pacific (excluding China) grew 12%; and China 18%. Latin America sales were 20% lower, impacted by a one-time inventory adjustment in Brazil. Sales of Vegetable Seeds grew 6%. Flowers were 7% lower.
In 2023, Syngenta opened two new seed-focused research facilities: the Syngenta Seeds R&D Innovation Center in Malta, Illinois, United States, and the Spring Corn Center in Gongzhuling City, Jilin Province, China. In Europe, in 2023, Syngenta launched the most advanced sunflower herbicide-tolerant crop (HTC) system, A.I.R., helping farmers meet their weed control challenges.
In 2023, Syngenta Vegetable Seeds completed the strategic acquisition of Feltrin Sementes, a leading Brazilian vegetable seed company, which provides Syngenta with an expanded vegetable seed portfolio to support the company’s ambition to bring innovation and value to all types of growers around the world.
Syngenta Group China
Sales of Syngenta Group China, consisting of the Group’s Seeds, Crop Protection, Crop Nutrition, MAP and digital activities in China, grew 11% to $9.6 billion in the full year 2023.
Syngenta Group China’s Crop Protection sales grew 2%. Excluding non-agriculture elements, Crop Protection in China grew 11%. Syngenta continued to gain market share on the back of strong growth in the branded formulated business.
Sales of Seeds grew 17%, reinforcing its leading position in China with a record 130 new varieties certified last year. Crop Nutrition sales were 1 percent lower, but sales of biofertilizers showed a robust increase following the launch of new products such as NUTRIMATE™ and CODEFULT™ and more than 60 soil health service centres. At CER, sales grew in all businesses.
MAP and digital sales grew 26% to $3.9 billion, while the number of MAP centres further increased by 113 to a total of 741 and the number of demo farms to more than 1,000. MAP digital applications achieved over 2.5 million registered users, supporting ongoing farm modernization on 66 million hectares (163 million acres) of land across China.
In 2023, TYMIRIUM® technology was approved in China. Construction of the Huludao production site in northeast China’s Liaoning Province is underway, with the first phase expected to be operational in the second half of 2024 as a new addition and key part of the Group’s global supply chain networks for active ingredients.
Syngenta Group IPO update
At the time of the release of full-year figures, Syngenta Group announced it decided to withdraw its application for IPO on the main board of the Shanghai Stock Exchange. The Company will continue to consolidate its market share and enhance its leading position in the global agricultural technology field. It will look to restart the listing process, either in China or a different global exchange, when conditions are right. It will also explore alternate sources of funding.
Syngenta Group Summary Financials
Full Year 2023
| FY 2023 | FY 2022 | FY 2023 | FY 2022 | |
| $bn | $bn | ¥bn | ¥bn | |
| Sales | 32.2 | 33.4 | 226.9 | 224.8 |
| Syngenta Crop Protection | 15.5 | 16.3 | 109.4 | 109.7 |
| ADAMA | 5.6 | 6.7 | 39.5 | 45.2 |
| Syngenta Seeds | 4.8 | 4.7 | 33.6 | 31.5 |
| Syngenta Group China | 9.6 | 8.6 | 67.6 | 57.4 |
| Of which MAP | 3.9 | 3.1 | 27.4 | 20.6 |
| Eliminations | -3.3 | -2.9 | -23.2 | -19.0 |
| EBITDA | 4.6 | 5.6 | 32.2 | 37.5 |
Q4 2023
| Q4 2023 | Q4 2022 | Q4 2023 | Q4 2022 | |
| $bn | $bn | ¥bn | ¥bn | |
| Sales | 7.9 | 7.5 | 56.0 | 54.3 |
| Syngenta Crop Protection | 4.0 | 3.7 | 28.4 | 26.7 |
| ADAMA | 1.4 | 1.5 | 9.7 | 11.1 |
| Syngenta Seeds | 1.5 | 1.5 | 10.4 | 10.9 |
| Syngenta Group China | 1.9 | 1.6 | 13.3 | 11.1 |
| Of which MAP | 0.8 | 0.5 | 4.4 | 3.3 |
| Eliminations | -0.8 | -0.8 | -5.8 | -5.5 |
| EBITDA | 1.0 | 0.9 | 7.3 | 6.2 |
