2015 Half Year Results
Basel, Switzerland, July 23, 2015
- Sales $7.6 billion: up 3 percent at constant exchange rates
- Second quarter sales up 7 percent1: growth in all regions
- EBITDA $2.0 billion, up 21 percent at constant exchange rates
- Reported EBITDA 5 percent lower owing to currency movements
- EBITDA margin up 140 basis points to 26.2 percent: 29.2 percent CER1
- Cost savings $104 million: Accelerating Operational Leverage program underway
- Earnings per share2 $14.70
- Combined peak sales potential of recently launched and pipeline products: >$6 billion
Reported Financial Highlights
| 1st Half 2015 | 1st Half 2014 | Actual | CER1 | |
|---|---|---|---|---|
| $m | $m | % | % | |
| Sales | 7,634 | 8,508 | -10 | +3 |
| Operating income | 1,566 | 1,725 | -9 | |
| Net income | 1,221 | 1,391 | -12 | |
| EBITDA | 2,000 | 2,111 | -5 | +21 |
| Earnings per share2 | 14.70 | 15.60 | -6 |
1 At constant exchange rates.
2 Excluding restructuring and impairment; EPS on a fully diluted basis.
Mike Mack, Chief Executive Officer, said:
“In 2015 our industry has experienced continuing softness in crop prices and low farm incomes. Despite these challenges, and our decision to reduce sales of glyphosate, we achieved sales growth at constant exchange rates of three percent in the first half. We have been able to largely offset currency depreciation in emerging markets through determined price increases and this, together with our hedging program, has mitigated the impact of currencies on EBITDA. The realization of the first savings from our Accelerating Operational Leverage program has contributed to substantial margin improvement, demonstrating that we are on track to deliver a sustainable improvement in profitability.
In the first half we saw continuing momentum from our new fungicide ELATUS™ and the successful launch in the USA of the new corn herbicide ACURON™. The excellent grower reception for both products reinforces our confidence in the innovation upturn that is now underway, with total peak sales potential for recently launched products of over $2.7 billion. In addition, to illustrate the longer term returns that we expect from our industry leading R&D, we have today announced an expanded pipeline with peak sales potential of over $3.6 billion.”
Syngenta is a leading agriculture company helping to improve global food security by enabling millions of farmers to make better use of available resources. Through world class science and innovative crop solutions, our 28,000 people in over 90 countries are working to transform how crops are grown. We are committed to rescuing land from degradation, enhancing biodiversity and revitalizing rural communities. To learn more visit www.syngenta.com and www.goodgrowthplan.com. Follow us on Twitter® at www.twitter.com/Syngenta
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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.
