UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2017
_______________
Commission File Number: 001-15152
SYNGENTA AG
(Translation of registrant’s name into
English)
Schwarzwaldallee 215
4058 Basel
Switzerland
(Address of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Re: SYNGENTA
AG
Disclosure:
“2016
Full Year Results”
Herewith we furnish a press release
related to Syngenta AG. The full text of the press release is the following:
# # #
Syngenta International AG
Media Office
CH-4002 Basel
Switzerland
Tel: +41 61 323 2323
Fax: +41 61 323 2424
www.syngenta.com
|
Media contacts:
Leandro Conti
Switzerland +41 61 323 2323
Paul Minehart
USA +1 202 737 8913
|
Analyst/Investor contacts:
Jennifer Gough
Switzerland +41 61 323 5059
USA +1 202 737 6521
|
Basel, Switzerland, February 8, 2017
2016 Full Year Results
Strong full year free cash flow generation
and fourth quarter sales
|
·
|
Sales
$12.8 billion: 2 percent lower at constant exchange rates
|
-
up
1 percent excluding Brazil sales terms change and 2015 corn trait royalty
-
reported
sales 5 percent lower
-
Q4
regional sales up 7 percent excluding corn trait royalty
|
·
|
EBITDA
$2.7 billion: margin 20.8 percent (2015: 20.7 percent)
|
-
130
bps improvement excluding corn trait royalty
|
·
|
$320
million savings from Accelerating Operational Leverage (AOL) program
|
|
·
|
Earnings
per share
1
$17.03 (2015: $17.78)
|
|
·
|
Free
cash flow $1.4 billion (2015: $0.8 billion)
|
|
·
|
ChemChina
transaction expected to close in second quarter of 2017
|
-
AGM
scheduled in June; no regular dividend proposed
|
Reported Financial Highlights
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
2
%
|
Sales
|
12,790
|
13,411
|
-5
|
-2
|
Operating income
|
1,647
|
1,841
|
-11
|
|
Net income
|
1,178
|
1,339
|
-12
|
|
EBITDA
|
2,659
|
2,777
|
-4
|
+2
|
Earnings per share
1
|
17.03
|
17.78
|
-4
|
|
_______________________
1
Excluding restructuring
and impairment; EPS on a fully diluted basis.
2
At constant exchange rates
Syngenta – February 8, 2017 / Page
1
of 8
Erik Fyrwald, Chief Executive Officer,
said:
“In
2016, Syngenta showed a resilient performance in the face of another difficult year for the agriculture industry, with crop prices
remaining low and grower profitability under pressure in many areas. The announcement of the transaction with ChemChina promises
continuity for the future and has allowed our people to remain focused on delivering their business goals.
We
saw an encouraging sales performance in the fourth quarter, with regional sales up 7 percent excluding the non-recurring corn
trait royalty received in 2015. Europe showed excellent growth, resulting in a solid performance for the full year despite very
adverse weather in the second quarter. Asia Pacific continued its recovery as the effects of El Nino receded. North and Latin
America both showed moderate growth excluding the corn trait royalty.
With regard
to profitability, we met our target of maintaining the EBITDA margin at the 2015 level. Excluding the $200 million headwind from
the corn trait royalty, the EBITDA margin increased by 130 basis points. This reflects the successful implementation of the AOL
program, which again delivered savings ahead of target, and our ability to capture price increases.
Innovation
also played an important role in 2016 with a number of new product launches. In the USA, our new corn herbicide ACURON™,
providing growers with an effective solution for weed resistance, achieved sales of over $200 million. We saw the further geographic
expansion of SOLATENOL™ based fungicides and the registration of ADEPIDYN™ in Argentina. In Seeds, the unparalleled
performance of our VIPTERA™ trait drove an increase in corn market share in Brazil. These all demonstrate the importance
of our investment in R&D, which has been recognized by ChemChina and which will continue under their ownership.”
Financial highlights 2016
Sales $12.8 billion
Sales were
2 percent lower at constant exchange rates, with volume down 4 percent and prices 2 percent higher. Sales were flat excluding
the change in Brazil sales terms; if both the sales terms change and the non-recurring corn
trait royalty are excluded, sales were one percent higher.
Reported sales were 5 percent lower due to the strength of the
dollar in the first half: the exchange rate effect was broadly neutral in the second half.
EBITDA $2.7 billion
EBITDA was
4 percent lower in reported terms but increased by 2 percent at constant exchange rates. The reported EBITDA margin of 20.8% was
in line with the previous year (2015: 20.7%). Excluding the corn trait royalty recognized in 2015, the EBITDA margin increased
by 130 basis points.
Net financial expense and taxation
Net financial expense was $291
million (2015: $256 million), with the increase due mainly to higher hedging costs. The tax rate before restructuring was 15 percent
(2015: 17 percent).
Syngenta – February 8, 2017 / Page
2
of 8
Net income
Net income
including restructuring and impairment was $1.2 billion (2015: $1.3 billion). The post-tax restructuring and impairment charge
increased from $300 million in 2015 to $390 million, including ChemChina transaction costs and incremental charges relating to
the cash settlement of employee share plans post transaction.
Earnings
per share, excluding restructuring and impairment, were $17.03 (2015: $17.78).
Cash flow and balance sheet
Free cash
flow was $1.4 billion (2015: $806 million), reflecting in particular a significantly lower outflow from trade working capital.
Period end trade working capital as a percentage of sales was 40 percent (2015: 38 percent): the level of receivables remained
high in Latin America due to tight credit conditions but there was a further improvement in inventories. Fixed capital expenditure
including intangibles was $575 million. Cash flow return on investment was 12 percent (2015: 11 percent).
End year
net debt totaled $2.3 billion and the ratio of net debt to equity was 29 percent (2015: 31 percent).
Annual General Meeting and
dividend
In view of
the proximity of the closure of the ChemChina transaction, the Board of Directors has decided to schedule the Annual General Meeting
(AGM) in June 2017. With the first settlement of the transaction expected to take place before the AGM, there will not be a proposal
for payment of a regular dividend. As previously communicated, a special dividend of CHF 5.00 will be paid conditional upon and
prior to the first settlement of the transaction.
ChemChina
transaction
ChemChina
and Syngenta have made significant progress towards achieving the necessary regulatory approvals and closing the transaction.
To date approvals have been achieved from 13 regulatory authorities; approvals are still awaited from Brazil, Canada, China, the
EU, India, Mexico and the United States. National security clearance has been granted by CFIUS in the United States.
In the context
of the EU anti-trust review, on 3 January 2017 ChemChina and Syngenta requested a further 10 day extension of the review period
until 12 April 2017. The extension is to allow sufficient time for the process to complete. On 13 January 2017 the
companies submitted a formal filing to the FTC in the United States, which also included remedy proposals.
ChemChina
and Syngenta remain fully committed to the transaction and are confident of its closure.
Syngenta – February 8, 2017 / Page
3
of 8
Business highlights 2016
|
Full Year
|
Growth
|
|
4
th
Quarter
|
Growth
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
Europe, Africa, Middle East
|
3,793
|
3,884
|
-2
|
+5
|
|
572
|
493
|
+16
|
+19
|
North America
|
3,202
|
3,410
|
-6
|
-6
|
|
656
|
790
|
-17
|
-17
|
Latin America
|
3,293
|
3,632
|
-9
|
-9
|
|
1,253
|
1,229
|
+2
|
-1
|
Asia Pacific
|
1,839
|
1,837
|
-
|
+2
|
|
504
|
461
|
+9
|
+8
|
Total regional sales
|
12,127
|
12,763
|
-5
|
-2
|
|
2,985
|
2,973
|
-
|
-1
|
Lawn and Garden
|
663
|
648
|
+2
|
+4
|
|
187
|
188
|
-1
|
-
|
Group sales
|
12,790
|
13,411
|
-5
|
-2
|
|
3,172
|
3,161
|
-
|
-1
|
Regional
sales performance
|
·
|
Sales
$12.1 billion, 2 percent lower at constant exchange rates
|
|
o
|
volume
-4%, price up 2 percent
|
|
·
|
EBITDA
$2.5 billion (2015: $2.6 billion)
|
|
·
|
EBITDA
margin 20.6% (2015: 20.5%)
|
Europe,
Africa and the Middle East:
Full year sales growth was achieved despite exceptionally difficult weather conditions affecting
north-west Europe in the second quarter. The main growth driver was an excellent performance in the CIS, with an expansion of
strong market positions in both crop protection and seeds. Volumes increased in both Russia and Ukraine, with further price increases
implemented to offset the impact of currency depreciation. In the fourth quarter, Ukraine made a major contribution with an early
start to the season, and sales recovered strongly in Africa Middle East as drought conditions eased.
North America:
Crop protection sales were unchanged despite challenging grower economics and the deliberate reduction in glyphosate. A total
of 16 new products were introduced, including the launch of the fungicides TRIVAPRO™ and ORONDIS™. In the corn herbicide
market, ACURON™ continued to win recognition for its control of resistant weeds, and full year sales exceeded $200 million.
Seeds sales were lower, largely due to the non-recurrence of the corn trait royalty.
Latin
America:
Excluding the impact of the change in sales terms in Brazil, sales were 3 percent lower. While sales were curtailed
in Venezuela, business improved significantly in Argentina as the new government implemented reforms to support agriculture. In
Brazil, conditions improved in the Cerrados in the second haIf but worsened in other growing areas as dry weather moved south.
Insecticides sales continue to be constrained by the high level of channel inventories and by soybean trait adoption. Corn seed
sales progressed strongly underpinned by the success of the VIPTERA™ trait.
Asia Pacific:
El Niño receded towards the end of the second quarter and the business recovered strongly in the second half. Channel
inventory in ASEAN was reduced, contributing to a rebound in demand, particularly for fungicides and insecticides. South Asia
also saw a strong second half, benefiting from new launches in crop protection and expansion of vegetables and corn seeds.
Syngenta – February 8, 2017 / Page
4
of 8
Lawn and Garden performance
|
·
|
Sales
$663 million, +4 percent at constant exchange rates
|
|
·
|
EBITDA
$164 million (2015: $159 million)
|
|
·
|
EBITDA
margin 24.7% (2015: 24.6%)
|
Sales growth
was driven by high demand for vector controls including Actellic
®
300CS, a longer-lasting, more effective product
to prevent the spread of malaria. Growth in turf was mainly driven by golf course sales in North America. The improvement in profitability
has been sustained, with the EBITDA margin remaining above the targeted level of 20 percent.
Accelerating Operational Leverage
The Accelerating
Operational Leverage (AOL) program, announced in February 2014, has three main pillars: Commercial; Research and Development;
and Global Operations. The program’s aim is to optimize the cost structure across the business in order to attain industry-leading
efficiency. In 2016 savings of $320 million were again ahead of target. Although the industry downturn has made the achievement
of operating efficiencies more challenging, the 2018 target of $1 billion in productivity savings is maintained.
Outlook
Erik Fyrwald, Chief Executive Officer,
said:
“2017
will be a landmark year for Syngenta as we look forward to closing the transaction with ChemChina in the second quarter. Under
the new ownership, we will continue to enhance our focus on execution in order to drive the business forward. We will remain committed
to our global objective of profitably growing market share. In support of this objective, we will pursue our corporate goals of
improving the customer experience, driving simplification and meeting our financial commitments. These commitments include improving
our seeds performance, realizing further AOL savings, increased cash conversion and a return to growth.
“For
the full year 2017, we expect low single digit growth in sales at constant exchange rates. We are targeting an improvement in
the EBITDA margin and another year of strong free cash flow generation.”
Syngenta – February 8, 2017 / Page
5
of 8
Crop Protection
|
Full Year
|
Growth
|
|
4
th
Quarter
|
Growth
|
Crop Protection
by product line
1
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
Selective herbicides
|
2,853
|
2,894
|
-1
|
+2
|
|
543
|
499
|
+9
|
+8
|
Non-selective herbicides
|
773
|
913
|
-15
|
-13
|
|
181
|
191
|
-5
|
-6
|
Fungicides
|
3,157
|
3,357
|
-6
|
-4
|
|
742
|
736
|
+1
|
-
|
Insecticides
|
1,643
|
1,705
|
-4
|
-2
|
|
453
|
375
|
+21
|
+19
|
Seedcare
|
1,003
|
994
|
+1
|
+5
|
|
334
|
296
|
+13
|
+14
|
Other crop protection
|
142
|
142
|
-
|
-
|
|
38
|
57
|
-34
|
-38
|
Total
|
9,571
|
10,005
|
-4
|
-2
|
|
2,291
|
2,154
|
+6
|
+6
|
Selective
herbicides:
major brands ACURON
™
, AXIAL
®
, CALLISTO
®
family, DUAL MAGNUM
®
,
BICEP
®
II MAGNUM, FUSILADE
®
Max, FLEX
®
, TOPIK
®
Sales growth
was driven by EAME and North America. In Europe, AXIAL
®
continued its success on cereals and CALLISTO
®
expanded on corn in Africa and the CIS. In North America the main growth driver was the continued adoption by US growers
of the novel corn herbicide ACURON
™
, combining three modes of action and four active ingredients.
Non-selective
herbicides:
major brands GRAMOXONE
®
, TOUCHDOWN
®
Performance
reflected the deliberate reduction in solo glyphosate, now complete, undertaken in order to improve profitability. At the same
time glyphosate prices continue to decline. Sales of GRAMOXONE
®
were also lower, with volumes in the first half
affected by dry weather in ASEAN, and some price pressure from generics in North America.
Fungicides:
major brands, ALTO
®
, AMISTAR
®
, BONTIMA
®
, BRAVO
®
, ELATUS
™
,
MIRAVIS™ (based on ADEPIDYN™), MODDUS
®
, REVUS
®
, RIDOMIL GOLD
®
, SCORE
®
,
SEGURIS
®
, UNIX
®
North America
saw good growth as new products ORONDIS
™
and TRIVAPRO
™
(based on SOLATENOL™) gained momentum.
EAME registered growth for the full year despite a difficult first half, when wet weather resulted in missed sprays; the second
half saw a strong recovery, with late season demand in cereals and good demand on specialty crops. Innovation continued to expand
the portfolio with the launch in the fourth quarter of ELATUS
™
PLUS in France and MIRAVIS™ Duo (based on
ADEPIDYN™) in Argentina.
Insecticides:
major brands ACTARA
®
, DURIVO
®
, FORCE
®
, KARATE
®
, PROCLAIM
®
,
VERTIMEC
®
Insecticides
saw growth across the northern hemisphere, with particularly good performances by ACTARA
®
, DURIVO
®
and
KARATE
®
. In Brazil, sales were affected by low insect pressure and soybean trait penetration, with channel inventories
remaining high. Sales in Asia Pacific, which were affected by drought in the first half of the year, rebounded strongly in the
second half.
Seedcare:
major brands AVICTA
®
, CRUISER
®
, DIVIDEND
®
, CELEST
®
/MAXIM
®
,
VIBRANCE
®
CRUISER
®
showed good growth in a number of European markets despite limitations on its use for certain crops. Sales in Canada staged
a strong recovery, led by the fungicide VIBRANCE
®
, which was more than offset by lower treatment intensity and
higher inventory in the USA.
______________________
1
Excluding Lawn & Garden
Syngenta – February 8, 2017 / Page
6
of 8
|
Full Year
|
Growth
|
|
4
th
Quarter
|
Growth
|
Crop Protection
by region
1
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
Europe, Africa, Middle East
|
2,862
|
2,892
|
-1
|
+6
|
|
441
|
353
|
+25
|
+29
|
North America
|
2,306
|
2,326
|
-1
|
-
|
|
370
|
380
|
-3
|
-3
|
Latin America
|
2,860
|
3,249
|
-12
|
-12
|
|
1,064
|
1,056
|
+1
|
-2
|
Asia Pacific
|
1,543
|
1,538
|
-
|
+2
|
|
416
|
365
|
+14
|
+12
|
Total
|
9,571
|
10,005
|
-4
|
-2
|
|
2,291
|
2,154
|
+6
|
+6
|
Seeds
|
Full Year
|
Growth
|
|
4
th
Quarter
|
Growth
|
Seeds
by product line
1
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
Corn and soybean
|
1,375
|
1,564
|
-12
|
-11
|
|
472
|
597
|
-21
|
-24
|
Diverse field crops
|
666
|
658
|
+1
|
+11
|
|
108
|
99
|
+8
|
+11
|
Vegetables
|
616
|
616
|
-
|
+3
|
|
161
|
160
|
+1
|
+3
|
Total
|
2,657
|
2,838
|
-6
|
-3
|
|
741
|
856
|
-13
|
-15
|
Corn and
soybean:
major brands AGRISURE
®
, GOLDEN HARVEST
®
, NK
®
Sales in
the fourth quarter were affected by the non-recurrence of the $200 million corn trait royalty received from KWS/Limagrain in the
fourth quarter of 2015. This revenue was recorded in North America ($145 million) and Latin America ($55 million). Full year branded
corn seed sales were slightly higher in the USA but lower in Europe due to reduced acreage. In Latin America we saw strong underlying
growth in both Brazil and Argentina supported by the adoption of VIPTERA
™
trait technology. Soybean sales were
lower in a competitive environment.
Diverse
field crops:
major brands NK
®
oilseeds, HILLESHÖG
®
sugar beet
Sunflower
sales grew strongly in Russia and Ukraine. In addition to increased acreage, growers continue to adopt superior genetics with
a proven track record on the field. Sugar beet sales also increased.
Vegetables:
major brands ROGERS
™
, S&G
®
Demand was
strong in Latin America, notably in Brazil and Mexico, as favorable currency rates improved growers’ profitability in export
markets. South Asia also performed well in crops such as cabbage, cauliflower and okra. Price increases were achieved in all regions,
reflecting the ability to capture value from a high quality portfolio of hybrids.
______________________
1
Excluding Lawn & Garden
Syngenta – February 8, 2017 / Page
7
of 8
|
Full Year
|
Growth
|
|
4
th
Quarter
|
Growth
|
Seeds
by region
1
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
|
2016
$m
|
2015
$m
|
Actual
%
|
CER
%
|
Europe, Africa, Middle East
|
973
|
1,017
|
-4
|
+4
|
|
161
|
158
|
+3
|
+5
|
North America
|
933
|
1,116
|
-16
|
-16
|
|
301
|
428
|
-30
|
-30
|
Latin America
|
448
|
400
|
+12
|
+11
|
|
189
|
173
|
+9
|
-
|
Asia Pacific
|
303
|
305
|
-1
|
+2
|
|
90
|
97
|
-8
|
-7
|
Total
|
2,657
|
2,838
|
-6
|
-3
|
|
741
|
856
|
-13
|
-15
|
The full
version of the Full Year Results 2016 press release and a presentation covering the results are available
here
.
Announcements
and meetings
2016 Annual Report publication
|
March 15, 2017
|
First quarter trading statement 2017
|
April 24, 2017
|
Syngenta
is a leading agriculture company helping to improve global food security by enabling millions of farmers to make better use of
available resources. Through world class science and innovative crop solutions, our 28,000 people in over 90 countries are working
to transform how crops are grown. We are committed to rescuing land from degradation, enhancing biodiversity and revitalizing
rural communities. To learn more visit
www.syngenta.com
and
www.goodgrowthplan.com
. Follow us on Twitter
®
at
www.twitter.com/Syngenta
Cautionary Statement Regarding Forward-Looking
Statements
This document contains forward-looking statements,
which can be identified by terminology such as ‘expect’, ‘would’, ‘will’, ‘potential’,
‘plans’, ‘prospects’, ‘estimated’, ‘aiming’, ‘on track’ and similar
expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially
from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for
information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements
to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer
or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta
AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract therefor.
______________________
1
Excluding Lawn & Garden
Syngenta – February 8, 2017 / Page
8
of 8
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
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SYNGENTA AG
|
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Date:
|
February 8, 2017
|
|
By:
|
/s/
Tobias Meili
|
|
|
|
|
Name:
|
Dr. Tobias Meili
|
|
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|
|
Title:
|
Head Corporate Legal Affairs
|
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By:
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/s/
Brigitte Benz
|
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Name:
|
Brigitte Benz
|
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Title:
|
Head Shareholder Services & Group Administration
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Syngenta (NYSE:SYT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Syngenta (NYSE:SYT)
Historical Stock Chart
From Jul 2023 to Jul 2024