2014 Full Year Results
Basel, Switzerland, February 4, 2015
- Integrated sales up 6 percent at constant exchange rates
- up 7 percent excluding glyphosate
- fourth quarter sales up 12 percent
- Total sales up 5 percent at constant exchange rates to $15.1 billion
- ELATUS™ sales in Brazil over $300 million
- EBITDA $2.9 billion, up 1 percent; margin 19.3 percent
- up 7 percent at constant exchange rates
- Operational leverage measures: $265 million savings in 2015
- Earnings per share1 $19.42, up 1 percent
- Free cash flow before acquisitions $1.2 billion
- Proposed dividend increased by 10 percent to CHF 11.00
Reported Financial Highlights
| 2014 | 2013 | Actual | CER2 | |
|---|---|---|---|---|
| $m | $m | % | % | |
| Sales | 15,134 | 14,688 | +3 | +5 |
| Operating income | 2,105 | 2,086 | +1 | |
| Net income | 1,619 | 1,644 | -2 | |
| EBITDA | 2,926 | 2,895 | +1 | +7 |
| Earnings per share1 | $19.42 | $19.30 | +1 |
1 Excluding restructuring and impairment; fully-diluted
2 At constant exchange rates
Mike Mack, Chief Executive Officer, said:
"In 2014 we achieved our integrated sales target of six percent at constant exchange rates despite lower crop prices, unfavorable weather conditions in North America and a deliberate reduction in low margin sales of glyphosate. Emerging markets registered double digit growth1 for the fifth consecutive year despite the geopolitical uncertainty in the CIS. Encouragingly, growth in Western Europe was also robust, with a particularly strong performance from our broadened fungicide portfolio. In Latin America, our new fungicide ELATUS™ achieved sales of over $300 million following its introduction in Brazil. This is the largest product launch in Syngenta's history, resulting in widespread grower recognition of the product's superlative performance against soybean rust.
With emerging markets now accounting for over 50 percent of our sales, managing more volatile conditions has become an integral part of our business. A negative impact from currencies, notably those of the CIS, resulted in an EBITDA margin slightly below the previous year. Margins in 2014 were also affected by adverse product mix linked in large part to the reduction in US corn acres. We remain focused on improving profitability and in November announced decisive actions underpinning the realization in 2015 of the first cost savings under our Accelerating Operational Leverage program. The program will enhance our commercial effectiveness as well as improving efficiency in Research and Development and in the supply chain. It will allow us to realize the full potential of the integrated strategy and will ensure that increases in profitability are sustained over time."
1 At constant exchange rates
Syngenta is one of the world's leading companies with more than 28,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.
Cautionary Statement Regarding Forward-Looking Statements
This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for.
