# Syngenta 4Q profit falls as raw material prices increase
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Syngenta Reports 25% Drop in Q4 Earnings, Plans IPO
Meta Description: Learn about Swiss agrichemicals and seeds group Syngenta's Q4 earnings drop due to higher costs and reorganisation plans.
URL: https://financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increasehtml

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ZURICH (Reuters) – Swiss agrichemicals and seeds group Syngenta on Wednesday reported a 25% drop in fourth quarter earnings due to higher raw materials and energy costs.

Syngenta, which plans to list within the next few months, also spent more on reorganising its business and set cash aside to cover macro-economic uncertainties such as further raw material spikes or potential bad debts by customers.

The Chinese-owned company said its earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 25% to $900 million in the three months to the end of December.

[Sales rose 4% to $7.5 billion boosted by strong](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") growth in its seeds business.

As previously indicated, farmers accelerated their purchases earlier in the year due to supply concerns, moderating [fourth quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter") growth,” the company said.

The group continued to maintain [higher prices](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price") necessary to offset elevated raw material and other costs,” it added.

During 2022 Syngenta’s [sales increased 19% to $33.4 billion](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at  billion valuation – FT") while EBITDA rose 20% to $5.6 billion.

Much of the [growth came from China](https://www.financedigest.com/china-nov-export-growth-slows-but-imports-accelerate.html "China Nov export growth slows but imports accelerate"), where the company added 136 more MAP training and sales centres to take its total to 628 sites.

Syngenta, which competes with U.S. [company Corteva and Germany’s BASF and Bayer](https://www.financedigest.com/in-listening-mode-new-bayer-ceo-keeps-open-mind-on-company-split.html "In listening mode, new Bayer CEO keeps ‘open mind’ on company split"), was bought in 2017 for $43 billion by ChemChina, which was folded into Sinochem Holdings Corp in 2021.

The parent company plans to keep a [majority stake](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") after its $10 billion flotation, which is expected to value Syngenta at around $50 billion.

(Reporting by John Revill; editing by John O’Donnell)


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