Syngenta Group Co. Ltd. on Thursday reported strong results for the first quarter of 2021. The Chinese-owned, Switzerland-based parent company of Syngenta Crop Protection, whose North American headquarters is in Greensboro, reported first-quarter 2021 sales of $7.1 billion, up 20% compared to Q1 2020. This corresponds to a growth of 18% at constant exchange rates (CER). First-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) increased 19% (29% at CER) to $1.5 billion.
That growth, the company reported, was accelerated by seed and crop protection innovations that enable regenerative agriculture practices, which help protect against drought and flooding, and enhance soil health.
“We delivered strong sales and profit growth across all business units,” said Syngenta Group CFO Chen Lichtenstein. “Our success in China is fueled by our strong offering and farmer-centric ecosystem. We aim to continue driving growth, focusing on operating margins and further accelerating our innovation pipeline.”
Syngenta Group’s biologicals sales have grown by more than 40% compared to the same period last year, and with recently acquired Valagro, sales more than doubled.
Syngenta Group China has grown strongly across all segments, tripling revenues to more than $280 million in Q1, the result of facilitating farmer access to the latest innovative technologies and practices, and enhancing their profitability. The farmer-centric ecosystem continued to rapidly expand in China, connecting growers, markets and consumers. Recent acquisitions of Winall Hi-tech Seed’s stake and Jiangsu Huifeng Bio Agriculture’s domestic activity further helped strengthen business in China.
With lower stock-to-use ratios for key agricultural commodities compared to recent years entering 2021, higher consumption, particularly in China, supported higher grain prices. That benefits farm income and, in turn, underpins demand for Syngenta Group’s advanced products and solutions.
“Syngenta Group’s focus on bringing innovative sustainable products and services to farmers all over the world has enabled us to continue to accelerate our growth,” said Syngenta Group CEO Erik Fyrwald.
In the first quarter of 2021, Syngenta Crop Protection sales grew 17% to $3.2 billion, while EBITDA grew 20% (33% CER) to $1 billion. In North America, sales were up 6% due to improved farm economics and market supply constraints that helped drive early stocking.
In March, Syngenta Crop Protection announced it would keep its U.S. headquarters in Greensboro with plans to invest $68 to renovate its 70-acre campus on Swing Road near Interstate 85. The decision keeps 650 full-time and 100 contract jobs in Greensboro, along with its nearly $70 million payroll. Syngenta’s average annual salary is about $107,000.
With some buildings as old as 60 years, the project includes a new office building that will connect to Syngenta’s current laboratory facility on the north side of the campus, which will be completely renovated and modernized.
