22 July 2011 06:47 [Source: ICIS news]
SINGAPORE (ICIS)--Swiss agribusiness group Syngenta said on Friday its first-half net profit for 2011 grew by 14% year on year to $1.43bn (€1.00bn), with sales posting a similar increase, partly on better pricing environment for products.
Total sales for the January-to-June period stood at $7.70bn, against $6.74bn in the previous corresponding period, the company said in a statement.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 12% year on year to $2.15bn, Syngenta said.
Tight grain supply because of unfavourable weather conditions in the northern hemisphere, amid growing demand, helped keep overall crop prices high, said Syngenta CEO Mike Mack.
“Our sales showed sustained volume momentum in all regions and were, in addition, driven by the breadth of our portfolio and our strong emerging market presence. An improved price environment for crop protection was reflected in stable pricing in the second quarter,” said Mack.
At constant exchange rates, crop protection sales in the first six months of 2011 increased by 10% to $5.6bn compared with the same period a year before, with volume rising 12% and prices falling 2%, Syngenta said.
Seeds sales, meanwhile, jumped 17% to $2.1bn over the same period, with volume rising 15%. Seeds prices inched up 2% year on year, it said.
“The outlook for pricing for the rest of the year is positive and we expect stable pricing for the full year. For the 2012 season, we are currently raising prices across the business with the aim of achieving an overall increase in the mid-single digits,” said Mack.
($1 = €0.70)
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