Syngenta Reports Q1 Sales Rise and Profits Boosted by Strong China Growth
Syngenta Group Q1 2024 Financial Performance Overview
Sales and Profit Growth Driven by China
ZURICH, April 30 (Reuters) - Swiss-based seeds and agrochemicals company Syngenta Group on Thursday reported slightly higher sales and profit during its first quarter due to strong growth in China and efficiency gains.
Sales Increase and Market Expansion
The Chinese-owned company, which is planning a flotation on the Hong Kong Stock Exchange, said its sales increased by 2% to $6.4 billion in the first three months of the year.
Profitability and Competitor Landscape
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 5% to $1.4 billion, said Syngenta, which competes with U.S.-based Corteva and Germany's BASF and Bayer.
Efficiency Improvements and Product Focus
Syngenta, which is owned by Chinese state-owned group Sinochem, said the improvement was due to its focus on more profitable new products as well as continued efficiency improvements.
"This good result was achieved despite a market environment shaped by geopolitical uncertainty and trade disruption," Syngenta said.
Segment Performance and Regional Highlights
Crop Protection and Seed Business Results
Crop protection sales rose by 3%, supported by the strong growth in China and Europe, while sales in Syngenta's seed business rose by 7%.
China Market Impact
Syngenta's China business increased sales grew by 1%. When the effect of its exit from the grain trading business was removed, sales grew by 11% compared with a year earlier.
(Reporting by John Revill, Editing by Linda Pasquini)
