Syngenta Group Announces today released its financial results for the full year and fourth quarter of 2024, reporting a decline in sales due to challenging market conditions, but showing resilience in key growth areas. The Group recorded full-year sales of $28.8 billion, marking a 10% decrease year-on-year or 7% at constant exchange rates (CER). This decline was attributed to adverse weather conditions, ongoing channel inventory reductions in crop protection, and price pressures, particularly in commoditized product segments. Additionally, weaker emerging market currencies and lower grower profitability impacted demand. However, strong momentum continued in the global biologicals business, new product innovations, and the branded crop protection segment in China. EBITDA for the year fell by 15% to $3.9 billion, though at CER, it was only down by 1%.
In the fourth quarter, Syngenta Group reported sales of $7.5 billion, a 5% decline (1% at CER). However, EBITDA for the quarter grew by 11% (38% at CER) to $1.1 billion. The company undertook productivity and restructuring initiatives, leading to margin recovery and setting the stage for a return to profitable growth. These measures, along with raw material cost savings, contributed to the EBITDA improvement despite pricing challenges.
Syngenta Crop Protection
Syngenta Crop Protection recorded full-year sales of $13.2 billion, reflecting a 13% decline (9% at CER). The global crop protection market continued to undergo inventory corrections, following an overstocking period in prior years. This effort aimed to reduce working capital needs amid a high-interest rate environment. Additionally, increased generic capacity exerted pricing pressure on commoditized products. Nevertheless, with the channel destocking process largely complete by early 2025, Syngenta anticipates a market recovery in the second half of the year.
Sales by region were as follows:
- Europe: Down 12%
- North America: Down 24%
- Latin America: Down 10%
- Asia, Middle East & Africa (excluding China): Down 13%
- China: Up 7%, demonstrating strong resilience
New products continued to perform well, particularly those featuring PLINAZOLIN® technology, a novel insecticide, which saw its sales double. ADEPIDYN®, a broad-spectrum fungicide, maintained strong momentum in Brazil and China, while securing key registrations in Europe, the UK, and India. TYMIRIUM® technology, designed for nematode and fungal disease control, was launched in China, Australia, and Peru.
Biologicals remained a strong growth area, with significant demand in Brazil, China, and India. Syngenta Biologicals entered multiple collaborations to accelerate product development, ensuring farmers worldwide receive effective biological solutions. The company also introduced CROPWISE® AI, a generative AI system designed to enhance crop yields through data-driven insights. The CROPWISE™ platform expanded its digital reach to 70 million hectares, allowing farmers to optimize yield, sustainability, and profitability.
ADAMA
ADAMA faced a challenging 2024, with sales declining by 11% to $4.1 billion (8% at CER). However, the fourth quarter indicated signs of recovery, as sales increased by 2% at CER. The company implemented a strategic transformation plan aimed at improving earnings and cash delivery over a three-year period. This initiative has already demonstrated results, with EBITDA growth and consecutive margin improvements.
Regional performance was mixed:
- Europe, Africa, and the Middle East: Down 9%
- Latin America: Down 20%
- Asia Pacific (excluding China): Down 15%
- China: Down 12% due to increased generic capacity and pricing pressure
- North America: Up 4% to $0.9 billion, driven by volume growth
New product introductions included FORPIDO® in India, targeting resistant rice stem borer, and GILBOA™, a proprietary fungicide submitted to the Fungicide Resistance Action Committee (FRAC) for classification. Additionally, ADAMA continued expanding its prothioconazole-based fungicides, widely used for wheat, barley, and oil-seed rape.
Syngenta Seeds
Despite market challenges, Syngenta Seeds sales remained steady at $4.8 billion for the year, growing by 2% at CER. Fourth-quarter sales increased by 7% at CER. The field crops and vegetable seeds segments both achieved year-on-year EBITDA growth.
- Field Crop Seeds: North America sales increased by 3%, while China grew 18%. Brazil saw a 9% decline due to changes in the soybean business model. European sales dropped 1%, and sales in Asia, the Middle East & Africa, and Latin America (excluding Brazil) declined by 14%.
- Vegetable Seeds: The segment grew by 7%, supported by investments in Spain, India, and the U.S. New product innovations included traits resistant to Tomato Brown Rugose Fruit Virus (ToBRFV) and New Delhi Virus (ToLCNDV).
Syngenta Group China
Syngenta Group China reported full-year sales of $9.6 billion, a decline of 9% (7% at CER). Despite lower revenue, the business unit achieved record EBITDA due to strong profitability growth in crop protection and seeds.
- Crop Protection: Sales increased by 2%, driven by new innovations and biological products. The ADEPIDYN® technology saw strong demand, while biologicals experienced high double-digit growth.
- Seeds: Sales grew by 18%, reinforcing market leadership in China.
- Sinofert: Sales declined by 4%, and Yangnong Chemical sales dropped 11%.
- Grain Trading: Sales fell 32% due to strategic business reductions.
Syngenta Group China continued promoting ADEPIDYN® technology, expanding its reach with bundled product offerings. The seeds business strengthened its market position, securing approvals for new corn and soybean varieties. The Ministry of Agriculture and Rural Affairs approved three GM-breeding traits in December 2024.
