Syngenta AG (SYT) recently maintained its 2014 aggregated 6% sales growth at constant exchange rate. Measured at constant exchange rate, the company’s gross revenue from all operational branches climbed 3% to $ 11.5 billion for of the first nine months of the year. However, Syngenta’s economic surplus generation largely depends on its Brazilian agricultural production, where any type of primary cultivation is still dependent on rainfall.
At the end of the third quarter, the company experienced an integrated revenue hike of 2% year over year from Europe, Africa, the Middle East, North America, Latin America and Asia Pacific.
The North American Sales of the company increased by 1% to $0.5 billion, backed by improved selective herbicide sales before the upcoming winter season. Furthermore, increased pest pressure in the southern US has helped augmenting the insecticide sales of the company. Syngenta experienced a 3% rise in its Latin American sales, and at the end of third-quarter 2014, revenue from this region totaled $1.3 billion.
On the other hand, the company’s business in the Brazilian sugar cane and North Latin American agro markets were adversely affected by drought. However, soybean rust and ELATUS (the new fungicide) were the two most sought-after products traded in the Brazilian market.
Syngenta’s sales from Europe, Africa and the Middle East (EAME) have grown 3% at constant exchange rate to reach $0.6 billion in the third quarter. The company’s HYVIDO hybrid barley seeds and oilseed rape experienced high demand in the European market. In Asia Pacific, Syngenta’s sales climbed up 3% to $0.4 billion in the third quarter. Limited weed and disease pressure lowered the Australian revenue, partially by the emerging market demand.
At the end of third quarter 2014, Syngenta’s most productive region in terms of crop production was Latin America. The EAME regions attained the second position in terms of seed productivity.
The company has generated maximum returns from fungicide sales, followed by insecticides and selective herbicides at the end of third quarter. Also, the diversified field crop production of the company has increased by 20% year over year. In the long run, the company expects to earn greater profitability by implementing its new operational leverage plan in 2015.
Syngenta currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the industry include Bunge Limited (BG), Limoneira Company (LMNR) and The Andersons, Inc. (ANDE). While both Bunge and Limoneira sport a Zacks Rank # 1 (Strong Buy), Andersons holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment