Syngenta focuses emerging markets; announces results

Syngenta focuses on emerging markets; announces results

4:31 PM, 25th May 2011
Syngenta focuses on emerging markets; announces results
Mike Mack, Chief Executive Officer, Syngenta.

BASEL, SWITZERLAND: Syngenta rolled out a new business model today in an effort to meet customers’ needs, but to also cut costs and increase market share and earnings through 2015. The model is based on three core objectives: integrates, innovate, and outperform. The operating income is maintained and the company recorded free cash flow ($1.1 billion). Sales stood at $11.6 billion, up 6 per cent while operating income was $1.97 billion. For the year 2011 the outlook is positive volume momentum and share gain the new strategy will look to deliver superior customer and shareholder value with fully integrated offer on a global crop basis. Its core objectives will be to integrate, innovate, outperform with key performance metrics: market share, EBITDA margin, CFROI.

 

“Strong volume growth starting in the second quarter of 2010 has more than offset the impact of lower crop protection prices and demonstrates the ongoing expansion of demand in our business.  The result for the year also reflects higher seeds profitability as customers increasingly recognize the superiority and breadth of our technology,” said Mike Mack, Chief Executive Officer, Syngenta.

 

“Sales of $11.6 billion in 2010 have almost doubled since Syngenta’s creation ten years ago.  Expansion has been particularly rapid in the emerging markets, which now account for almost 50 per cent of our sales. Global growth in both crop protection and seeds has been accompanied by a significant improvement in profitability, with an EBITDA margin of 21.5 per cent compared with 17.8 per cent in 2001. With a dedicated focus on agriculture, in crop protection, we have grown share to become the world leader, with unrivalled product and distribution strength.”

 

For its new model Syngenta will integrate to meet grower needs, by having a global commercial operation for crop protection and seeds. This will be fully combined by the end of 2012. With focus on innovation, the company plans to bring together R&D in crop protection and seeds to generate combined genetic and chemical solutions. It will also develop novel go-to-market models and reach out to new customers in emerging markets. Our aim is to gain an average 0.5 per cent market share annually across the combined business over the next five years.

(C) WOC News

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