Reuters – Syngenta Group increased its first-quarter sales by 26 per cent as farmers bought seeds and sprays early to avoid possible shortages later in the year, the Swiss agrochemicals company which is planning a US$10-billion IPO said April 28.
The results of the Chinese-owned group are seen as a bellwether for the broader agrochemicals industry, with peers including U.S. company Corteva and Germany’s BASF and Bayer due to report shortly.
BASF last month warned that it would have to stop production if natural gas supplies fell to less than half its needs. Gas provides energy for manufacturing and is also a critical raw material for its products.
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Syngenta did not comment on the progress of its planned share float, which was paused last year.
But a source close to the company said the flotation, which would value it at around US$60 billion including debt, was on track to be completed by the end of this year.
During the first three months of 2022, Syngenta sales rose by 26 per cent year on year to US$8.9 billion.
Core profit increased 25 per cent to US$1.9 billion as increased productivity and price increases countered higher logistics and buying costs, it added.
The company also continued to expand in China, with 149 more of its Modern Agricultural Platform (MAP) training and sales centres than a year earlier.
It now has 514 centres in total in China, where it increased overall sales by 25 per cent to US$2.4 billion.
Syngenta was bought in 2017 for US$43 billion by ChemChina, which was folded into Sinochem Holdings last year. The parent company plans to keep a majority stake.
