Syngenta Group releases 2023 financial results

Despite a decline in annual sales and EBITDA, the group saw growth in strategic areas, according to information released to the press

29.03.2024 | 10:30 (UTC -3)
Cultivar Magazine

Syngenta Group released its financial results for the fourth quarter and the year 2023. Despite a decline in annual sales and EBITDA, the group saw growth in strategic areas, according to information released to the press.

The Syngenta Group announced total sales of US$32,2 billion for the year 2023. This is a 4% reduction compared to the previous year. This decline was influenced by the slowdown in crop protection, a direct response to overstocking in previous years. The group's EBITDA suffered an 18% reduction, falling from its historic peak in 2022.

The year 2023 was characterized by strong pressure to reduce stocks in global crop protection markets, affecting volumes and prices, especially in Latin America.

Fourth quarter performance

The last quarter brought a turnaround, with sales reaching US$7,9 billion; increase of 5% compared to the same period in the previous year. This growth was driven by improvements in the crop protection division and the strong performance of Syngenta Group China. EBITDA also grew 15%, surpassing the previous record from the fourth quarter of 2022.

Performance by business unit

• Crop protection: sales fell 5% to US$15,5 billion, despite the launch of technologies such as Plinazolin and Adepidyn.

• The Lady: there was a 17% decrease in sales, to US$5,6 billion, due - especially - to the slowdown in the markets in the Americas.

• Seeds: growth of 2%, with sales of US$4,8 billion, driven by the opening of new research and development facilities; and the strategic acquisition of Feltrin Sementes.

• Syngenta Group China: increased its sales by 11%, reaching US$ 9,6 billion. Highlight is the 26% growth in sales of the Modern Agriculture Platform (MAP).

Syngenta cancels $9 billion Shanghai IPO

Syngenta also announced the cancellation of its plans for a $9 billion initial public offering (IPO) on the Shanghai Stock Exchange, withdrawing one of the biggest potential listings in China's slowing IPO market. After three years of trying to make the offer viable, the Swiss seed and pesticide company decided to withdraw from the process, as announced today.

According to the company, the decision to withdraw the listing application follows a detailed strategic assessment by Syngenta of its development plan and the current industrial environment. The company, acquired by state-owned ChemChina in 2017 for US$43 billion, does not rule out the possibility of revisiting its listing plans, whether in China or another global market, under more favorable conditions.

Syngenta's move adds pressure to China's already struggling IPO market. In recent times, the country's securities commission has paused most listing approvals on the mainland in an attempt to strengthen the local stock market, which has been experiencing turbulence.

Syngenta's IPO application, made in July 2021, has faced several delays and obstacles in recent years. In November, the company cited market volatility as the reason for one of the postponements. More recently, in 2023, the Science and Technology Innovation Board of the Shanghai Stock Exchange, known as STAR Market, canceled the company's listing hearing the day before it was held, without providing explanations.

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