China’s Syngenta Sales Up 2% in First Half
Syngenta Group Co., Ltd., the Chinese state-owned seed and crop protection giant, said sales rose 2% to more than $12 billion in the first half of the year from a year ago.
This corresponds to growth of 5% on an underlying basis adjusted for one-off change of control royalty income in seeds and the impact of mandatory ADAMA and Sinofert production site relocations in China. All four business units, Syngenta Crop Protection, ADAMA, Syngenta Seeds and Syngenta Group China, increased their underlying sales in comparison to the previous year.
Crop Protection sales climbed to $5.48 billion from $5.17 billion a year earlier, buoyed by growth in all regions.
In the first half of 2020, ADAMA delivered total sales of $2 billion, in line with the prior year but 7% higher CER.
Syngenta Group said it maintained supply throughout the COVID-19 pandemic “despite the challenging market environment and the need for innovative solutions to overcome logistical difficulties.”
Erik Fyrwald, Syngenta Group CEO said, “The last few months have been a very challenging time for everybody on this planet. I am pleased that our team delivered strong performance across all of Syngenta Group’s business units despite the COVID-19 pandemic, low grain prices and significant currency headwind. This demonstrates that our strategy to deliver the broadest range of sustainable, innovative, and competitive products and services to farmers worldwide is robust, even in these extraordinary times. Our goal is to be a supplier that our customers can always rely on despite any challenges.”
Chen Lichtenstein, Syngenta Group CFO said, “We achieved a robust first half with strong sales performance supported by cost discipline. For the second half of the year, we will continue to build on our positive momentum.”
The sector full year outlook remains challenging, with low grain prices and currency headwinds in developing markets. Further impacts of the COVID-19 pandemic add to second-half uncertainty. The Syngenta Group said it remains committed to achieving underlying growth and leadership in sustainable agricultural innovation.