Syngenta Group reported weaker third-quarter results on Friday, with sales falling 10% year-on-year to $5.2bn and EBITDA declining 2% to $800m, as extreme weather and cautious farmer spending weighed on demand.
The company said persistent drought and unusually hot conditions across Europe reduced demand for crop protection products by limiting crop development and application opportunities. At the same time, pressure on farm incomes led growers to take a more cautious approach to purchasing seeds and crop protection products.
Syngenta said delayed purchasing decisions in several markets also contributed to the weaker quarter, alongside its ongoing strategy of reducing exposure to selected lower-margin businesses.
Sales for the quarter were down 10% from $5.7bn a year earlier, while EBITDA slipped 2%, or 4% at constant exchange rates.
Profitability improves despite lower revenues
Despite reporting lower sales and profit in the third quarter, the picture was markedly different over the first nine months of the year.
Syngenta recorded sales of $17.3bn during the first nine months of 2026, down 5% from $18.2bn a year earlier. However, EBITDA increased 1% to $3.2bn, while EBITDA margin improved by 100 basis points to 18.4%.
Excluding the planned reduction of grain trading and other low-margin activities, underlying sales grew 1% over the period.
The results support the narrative that Syngenta is becoming a more profitable business even as revenues shrink. The company said active portfolio management, disciplined cost controls and a focus on higher-margin products continued to support earnings growth despite challenging market conditions.
The improved margin profile is likely to be welcomed by investors as Syngenta continues to pursue plans for a future stock market flotation. The latest reports indicate the company is targeting a Hong Kong listing in 2027, having pushed back an earlier goal of listing in 2026.
Innovation strategy helps support margins
Syngenta said sales of newly introduced technologies continued to grow during the year, helping offset ongoing pricing pressure on off-patent crop protection products, particularly in Brazil and wider Latin America.
Within Crop Protection, biologicals delivered double-digit growth in the third quarter, while newer technologies including TYMIRIUM® and PLINAZOLIN® continued to expand globally.
The company highlighted continued investment in innovation and digital capabilities, alongside what it described as strict portfolio and cost management, to sustain profitable growth amid macroeconomic and geopolitical uncertainty.
Leadership changes
Syngenta also announced a management reshuffle. Gaël Hili will become president of Syngenta Seeds on November 1, succeeding in his previous role as president and chief executive of ADAMA. He will be replaced at ADAMA by Dr Zhigang Hao, currently chief executive of animal nutrition company Adisseo.
