Syngenta’s EBITDA to increase by $269m in 2012 – analyst

24 April 2012 11:23  [Source: ICIS news]

LONDON (ICIS)--Switzerland’s Syngenta is estimated to raise its earnings before interest, tax, depreciation and amortisation (EBITDA) by $269m (€204m) in 2012, on the back of price increases and volume growth, global analyst Bernstein Research said on Tuesday.

“We estimate an EBITDA increase [for Syngenta] in 2012 of +$269m from the following: price increases, volume growth and cost cuts that are met with growth investments, raw materials costs, other costs and currency,” the analyst added.

Bernstein said prices in the agribusiness firm’s crop protection segment were up by 4% year on year in the first quarter of 2012, while volumes rose by 5%.

However, the analyst added that price increases are likely to be “more muted” for the full year.

“[Syngenta] management guidance remained at +2-3% for the year, as the first half of the year will have easier comparatives. For the full year, we expect price increases of +2.4%, toward the lower end of this guidance,” said Bernstein.

Looking at the company’s seeds segment, prices were up by 4% year on year in the first quarter, with volumes increasing by 9%, it said.  

Last week, Syngenta reported that its first-quarter sales increased by 7% year on year to $4.30bn, with double-digit growths recorded in Europe, Africa, the Middle East and North America.

Bernstein maintains a “market-perform” rating for Syngenta, with a share target price of Swiss francs (Swfr) 280 (€233, $308).

($1 = €0.76, $1 = Swfr0.91, €1 = Swfr1.20)

By: Leigh Stringer
+44 208 652 3214

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