ZURICH (Reuters) – Swiss agrichemicals and seeds group Syngenta’s sales and core earnings growth eased during the third quarter, it said on Thursday ahead of the Chinese-owned company’s planned flotation within the next few months.
Sales increased by 20% to $7.9 billion in the three months to the end of September, slightly slower than the 24% increase during the second quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 24% to $1 billion. In the second quarter earnings had increased by 39%.
The company said it was seeing an “increasingly challenging macroeconomic environment” while the continued strengthening of the dollar also weighed.
“Sales growth was attributable to a significant increase in sales across all business units, driven by robust grain prices, attractive farm economics and inventory builds across the value chain.
“Necessary price increases were implemented to help mitigate higher costs,” it added.
Syngenta, which competes with U.S. company Corteva and Germany’s BASF and Bayer, was bought in 2017 for $43 billion by ChemChina, which was folded into Sinochem Holdings Corp last year.
The parent company plans to keep a majority stake after the $10 billion flotation, which is expected to value Syngenta at around $50 billion.
BASF on Wednesday said costs at its European sites must be cut to a “permanently” smaller size because of a triple burden of sluggish growth, high energy costs and over-regulation, with the German industrial giant’s boss throwing his weight behind a planned expansion in China.
(Reporting by John Revill; Editing by Michael Shields)
