Global pesticide market is still in
downturn and the global pesticide giants also performed badly in their sales.
The five major pesticide giants in the globe, Syngenta AG (Syngenta), Bayer
CropScience AG (Bayer CropScience), BASF SE (BASF), Dow AgroSciences LLC (Dow
AgroSciences) and E. I. du Pont de Nemours and Company, Inc. (DuPont), all
can’t still pick themselves up from the bottom regarding to no matter the third
quarter sales performance or that of the first three quarters.
However, these five pesticide giants still
shone for their star products in the pesticide market in the world in 2016.
CCM is here to share the analysis on the
performance of these five giants.
Source: Baidu
BASF:
Pesticides sales value decreases 7.8% YoY in Q1-Q3 2016
In Q3 2016, pesticides sales value went
down 4% YoY in BASF, with the sales value of EURO1.049 billion.
However, in this quarter, the profits went
up hugely, which was mainly attributed to product combinations in the Europe,
Asia and South America markets and the falling of fixed cost. EBITDA doubled in
Q3 reaching EURO151 million while EBIT was up more than 1,400% YoY in Q3 2016,
reaching EURO93 million.
Due to the falling pesticide sales value of
9.4% in H1 2016, the pesticide sales value in Q1-Q3 went down 7.8%, with the sales
value of EURO4.288 billion. In Q1-Q3 2016, EBITDA in BASF reached EURO1.169
billion, up 4.7% YoY and EBIT was EURO971 million, up 2.9% YoY
In Q3 2016, BASF’s total sales value of
pesticides fell in Europe, due to the negative effect from the falling currency
of pounds in Britain. However, the sales amount of pesticide went up,
especially the sales amount of herbicide in West Europe and North Europe.
In Q3 2016, the sales value of pesticides
fell hugely in North America due to the falling price of pesticides. However,
BASF’s herbicide product Kixor (saflufenacil as active ingredient) and dicamba
increased greatly in its sales amount in North America.
As for the South America market, BASF’s
sales value of pesticides also fell hugely. According to BASF, the consumers
still had high inventory of pesticide, the insecticide market was weak and the
farmers were not in good financial conditions. However, the increasing of the
price and the currency could still support the sales value.
In Q3 2016, the sales value of pesticides
increased a lot in Asia Pacific, thanks to the increasing sales amount in
India. In Q3 2016, the rising herbicide sales amount was the major drive for
BASF to have its increase in India.
DuPont:
sales value of agriculture business decreases 1.5% YoY in Q1-Q3 2016
In Q3 2016, pesticides sales value went
down 4% YoY in DuPont due to the fewer occurrences of pests and high inventory.
The sales amount of fungicide and insecticide both fell while that of seed
increased 10% YoY.
Pesticides and seed are two major parts in
DuPont’s agriculture business. In Q3 2016, DuPont’s total sales value of agriculture
business was USD1.119 billion, up 2.4% YoY.
In Q3 2016, the operating profit of DuPont
agriculture business was in deficit of USD189 million, less than the deficit of
USD210 million last year, with the profit rate up 2.3 percentage points YoY.
According to DuPont, its pest-resistant genetically modified corn - Optimum
Leptra (MIR162×MON810×TC1507) performed very well since it entered the Brazil
market successfully.
In Q1-Q3 2016, the sales value of DuPont’s
agriculture business was USD8.123 billion, down 1.5% YoY. DuPont has its
leading market place in the North America, Brazil, Mexico, South Europe and
South Africa. At the same time, the total operating profit of DuPont was up
4.5% and DuPont pointed out that the saving on cost and rising quotations for
its products helped it to overcome the currency issue and bleak pesticide
market.
DuPont hopes that the sales value of its
agriculture business would not fall much in Q4 2016 and the revenue deficit
could be as half of that last year.
Dow
AgroSciences: sales value of pesticides and seed decreases 6.7% YoY in Q1-Q3
2016
In Q3 2016, pesticides sales value went
down mildly YoY in Dow AgroSciences.
However, in this quarter, the demand was
strong in Latin America, which helped increase the sales value of seed and
traits. Specifically, both the corn seeds and soybean seeds doubled in their
sales value in Q3 thanks to the advanced orders for planting seasons in Latin
America.
In Q3 2016, the total sales value of
pesticide and seeds reached EURO1.235 billion, up 5.8% YoY. Specifically, the
sales amount was up 5.8% YoY and the sales price was up 3% YoY.
In Q3 2016, EBITDA in Dow AgroSciences was
USD101 million, down 82.6% hugely YoY. Dow AgroSciences stated that the huge
fall was mainly due to the income from the divestment of AgroFresh in Q3 2015.
Without calculating the special income, the EBITDA was USD102 million in Q3
2015.
Due to the falling sales value of pesticide
and seed of 10.7% in H1 2016, the sales value in Q1-Q3 went down 6.7% YoY, with
the sales value of USD4.458 billion. Specifically, the sales amount was down 5%
YoY while the sales price was down only 1% YoY.
In Q1-Q3 2016, EBITDA in Dow AgroSciences
reached USD732 million, down 41.3% YoY and Dow AgroSciences predicted that the
sales value would not be good in Q4 2016.
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Tag: Pesticides