Syngenta Group Reports Third-Quarter 2024 Results

Syngenta Group reported third-quarter 2024 financial results, posting sales of $6,8 billion. It maintained the previous year's value, but with growth of 4% in constant terms (CER).

The group's EBITDA in the quarter more than doubled, reaching US$ 0,7 billion, an increase of 112% compared to the same period in 2023. In the accumulated first nine months of 2024, the group had sales of US$ 21,4 billion, a drop of 12% compared to the previous year, while the accumulated EBITDA was US$ 2,7 billion, 23% lower than in the same period in 2023.

Adverse weather conditions and reduced inventory levels in distribution channels have negatively impacted the first nine months of 2024, the company said. However, inventory levels are beginning to approach normal, with continued demand for new technologies.

Sales in Argentina were particularly affected by the market downturn, influenced by weather and disease pressure. The company also highlighted continued investments in R&D focused on sustainable innovation, aiming to drive long-term growth.

In the third quarter, Syngenta Crop Protection’s sales were US$3,3 billion, down 3%, mainly due to negative currency influences in Brazil, which offset underlying volume growth. Adama, another unit of the group, faced a 10% decline in sales, reflecting a challenging environment for post-patent active ingredient suppliers. Despite the drop in sales, the company managed to improve its margins thanks to its ongoing transformation plan.

Syngenta’s seed business reported 3% growth in the third quarter, although sales in Argentina were negatively impacted. In China, sales increased 11%, driven by the launch of new seed varieties and growth in biological solutions. The Chinese market is seen as a key growth area, with 134 new varieties certified in the first nine months of 2024.

Syngenta Group also reported that it remains focused on operational efficiency and cash flow generation, optimizing working capital. It expects EBITDA improvements for the fourth quarter of 2024, supported by strict financial discipline.

The company expects the market environment to gradually recover after the first half of 2025, with less impact from lower agricultural commodity prices and overcapacity.

In the first nine months, sales at the Syngenta Crop Protection unit fell 16% to US$9,5 billion. Adama saw a cumulative drop of 14% in sales. The Syngenta Seeds unit saw a 2% drop, while sales in China fell 10%.

The company also reported that, in Brazil, the seed unit grew by 13%. The approval of the Corn Lep 2.1 trait by CTNBio was seen as a significant regulatory milestone.