Market Overview

Syngenta 2018 Half Year Results

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Customer focus, productivity and innovation gaining momentum

  • Sales $7.25 billion: 5 percent higher, up 7 percent adjusted for
    the sugar beet seed and mandated crop protection antitrust divestments
    • Crop protection: sales up 6 percent, 8 percent excluding
      divestments
    • Seeds: sales flat, 5 percent higher excluding the sugar beet
      divestment
  • EBITDA $1.7 billion: up 1 percent, 8 percent excluding divestments;
    margin 23.4 percent (H1 2017: 24.2 percent)
  • Free cash flow before acquisitions $178 million (H1 2017: $21
    million)

    Reported Financial Highlights
    1st Half 2018
$m
  1st Half 2017
$m
  Actual
%
 

CER1
%

Sales   7,249   6,920   5   2
Net income 1,229 928 32
                 

EBITDA

 

1,700

 

1,675

 

1

 

-1

Erik Fyrwald, Chief Executive Officer, said:

"In the first half of this year we delivered sales growth of 5
percent compared to H1 2017, 7 percent when adjusted for antitrust and
sugar beet divestments. The result is an encouraging outcome given
difficult market conditions and we continue to focus on serving
customers to help improve their profitability and sustainability
.

It is pleasing that we have returned to growth, on an adjusted basis,
in all regions, particularly in Brazil where a solid performance was
achieved after several years of declining sales. Global productivity
programs helped off-set higher raw material and logistics costs,
limiting the impact on EBITDA margin.

Looking ahead, we will continue to strive to serve customers with
quality crop protection and seeds products reliably delivered and with
new technology that enhances performance for farmers everywhere. We
continue to aggressively drive productivity, thereby minimizing the
margin impact, despite the continued pressure from higher oil prices,
short supply of many key chemical ingredients and increased logistics
costs."

Financial highlights 1st Half 2018

Sales $7.2 billion

Sales of $7.25 billion were up 5 percent, 2 percent at
constant exchange rates (CER) versus H1 2017. Divestments reduced
reported growth by 2 percent. Crop protection sales of $5.50 billion
increased 6 percent against H1 2017, 3 percent at CER despite antitrust
divestments reducing sales by 2 percent. Seeds sales of $1.75 billion
were flat against the first half of 2017 but 5 percent higher when
adjusted for the 2017 sugar beet divestment.

EBITDA $1.7 billion

EBITDA was 1 percent higher than 2017, up 8% excluding divestments. The
EBITDA margin was 23.4 percent (H1 2017: 24.2 percent) with reported
margin reduced by the divestments.

Net income $1.2 billion

Net income was $1,229 million (H1 2017: $928 million) with higher
interest costs after the recent bond issue and an increased tax rate
following the US tax reform being more than offset by lower
restructuring and impairment costs and the gain from antitrust
divestments.

Free Cash Flow $178 million

Free cash flow before acquisitions was $178 million (2017: $21 million).
Free cash flow in the first half of 2018 included divestment proceeds of
$408 million related to antitrust divestments and initial payments under
the US litigation settlement agreements of $450 million; in 2017, free
cash flow was net of $276 million one-off payments for the cash
settlement of employee share plans following the ChemChina transaction.

Business highlights 1st Half 2018

  Half Year   Growth      

Adjusted2

  Growth
    2018
$m
  2017
$m
  Actual
%
  CER
%
Actual
%
  CER
%
Europe, Africa,
Middle East
2,655   2,675 -1   -8 7   -2
North America 2,234 2,188 2 1 4 3
Latin America 1,000 897 12 16 12 17
Asia Pacific 835 774 8 6 8 6
China 201 177 14 5 16 8
Other 201 98 - - - -
Flowers   123   111   11   1 11   1
Group sales   7,249   6,920   5   2 7   4

Regional sales performance

Sales in Europe, Africa and the Middle East were down 1 percent
against last year but up 7 percent on an adjusted basis, despite adverse
spring weather.

In North America crop protection sales were up 4 percent against
adjusted 2017, with solid sales in the United States more than
off-setting a slow start in Canada due to cold weather. Seeds sales were
2 percent higher on an adjusted basis, despite reduced corn and soybean
acres.

In Latin America sales volumes in crop protection improved,
particularly in Brazil, resulting in first half sales being up 12
percent against the first half of 2017. Solid growth in crop protection
more than offset reduced seed sales which were impacted by reduced
second season corn acres. The integration of Nidera Seeds is progressing
well.

In Asia Pacific sales were up 8 percent against H1 2017 driven by
strong performances across both the crop protection and seeds portfolios.

Stronger first half sales of crop protection and vegetable seeds in China,
helped drive growth of 16 percent adjusted for the divestments.

More detailed financial information can be accessed via our website: www.financial-results.syngenta.com

Syngenta is a leading agriculture company helping to improve global food
security by enabling millions of farmers to make better use of available
resources. Through world class science and innovative crop solutions,
our 28,000 people in over 90 countries are working to transform how
crops are grown. We are committed to rescuing land from degradation,
enhancing biodiversity and revitalizing rural communities. To learn more
visit www.syngenta.com
and www.goodgrowthplan.com.
Follow us on Twitter® at www.twitter.com/Syngenta

Disclaimer

This press release is not an offer to purchase or a solicitation of
an offer to sell any securities.

Cautionary statement regarding forward-looking statements

Some of the statements contained in this press release are
forward-looking statements. These statements are based on current
expectations, assumptions, estimates and projections, and involve known
and unknown risks, uncertainties and other factors that may cause
results, levels of activity, performance or achievements to be
materially different from any forward-looking statements. These
statements are generally identified by words or phrases such as
"believe", "anticipate", "expect", "intend", "plan", "will", "may",
"should", "estimate", "predict", "potential", "continue" or the negative
of such terms or other similar expressions. If underlying assumptions
prove inaccurate or unknown risks or uncertainties materialize, actual
results and the timing of events may differ materially from the results
and/or timing discussed in the forward-looking statements, and you
should not place undue reliance on these statements. Syngenta disclaims
any intent or obligation to update any forward-looking statements as a
result of developments occurring after the period covered by this press
release or otherwise

1 Constant Exchange Rates

2 Excluding mandated Crop Protection divestments and the
disposal of the Sugar Beet Seeds business

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