Syngenta Group, the Swiss agrichemical giant looking to list in Shanghai, said its China growth remains rapid as sales climbed 17 percent last year.
The China business achieved sales of $8.6 billion last year, driven by higher contributions from its crop protection and seeds units. Revenue from MAP and digital operations, which help connect farmers to buyers across China, were particularly strong, rising 76 percent to $3.1 billion, the company said in a statement. The results augur well for Syngenta, owned by state-owned China National Chemical Corp., or ChemChina, as it works toward a $10 billion initial public offering (IPO) on Shanghai’s Star Board. Its products, such as genetically modified seeds, could allow it to benefit from China’s aim to boost the quality and quantity of its agricultural production to ensure self-sufficiency in food.
However, the IPO process has been slow. It’s been more than 20 months since the company filed its prospectus. The delay could be due to poor equity-market conditions in 2022, Bloomberg Intelligence analysts said.
Other details from Syngenta’s earnings statement:
- Syngenta Group China’s crop protection sales grew 17 percent over the full year, while sales of seeds climbed 22 percent;
- Crop nutrition sales of the China unit were down 12 percent due to a new nitrogen distribution model;
- Overall Syngenta Group sales rose 19 percent to $33.4 billion, with all business units seeing double-digit growth;
- The company said there was strong demand for products that promote yield increases and sustainable farming methods; and
- Group’s earnings before interest, taxes, depreciation and amortization increased 20 percent to an all-time high of $5.6 billion.