) reported the financial results for 2013, with earnings per
share, excluding restructuring and impairment charges, coming in
at $19.30 (or $3.86 per ADR), down 12.4% from $22.03 reported in
Earnings per ADR of $3.86 lagged the Zacks Consensus Estimate
In the reported year, sales increased 5% to $14,688 million
compared with 2012, at constant exchange rates (CER), due to 3%
increase in volumes along with 2% rise in prices. Revenues were
lower than the Zacks Consensus Estimate of $14,707 million.
Europe, Africa and Middle East
witnessed a healthy performance with sales growing 6%, 7% and 6%
year over year, respectively, on a CER basis. However, revenues
declined 2% in
and 7% in
Lawn and Garden
Gross profit margin in the reported period fell 370 basis
points (bps) year over year to 45.5%, on a CER basis. Earnings
before interest, taxes, depreciation and amortization (EBITDA)
margin in the reported year was 19.0%, down 290 bps year over
year, on a CER basis.
Adjusted operating income in the EAME segment increased 11%
year over year to $1,448 million, while the same increased 6.9%
year over year to $540.0 million in the Asia Pacific segment.
Lawn and Garden segment's adjusted operating income increased
54.5% year over year to $119.0 million, on a CER basis. Also,
adjusted operating profit in the Latin America increased 1.3%
year over year to $1,020 million.
Adjusted operating income for North America segment declined
21.4% to $1,074.0 million.
Balance Sheet/Cash Flow
Exiting 2013, Syngenta had cash and cash equivalents of $902.0
million, against $785.0 million on Jun 30, 2013. Financial debt
and other non-current liabilities were $1.8 billion roughly flat
compared with the preceding half year.
In 2013, Syngenta generated cash flow from operating
activities of $1.2 billion, down from $1.4 billion in 2012.
Capital expenditure in 2013 amounted to $625.0 million, up from
$508.0 million incurred in 2012.
During 2013, Syngenta paid dividends totaling $921.0 million,
along with share repurchases worth $66.0 million.
In 2014, management expects growth in integrated sales in a
similar range as 2013. Gross margin is expected to increase in
the coming quarters. Free cash flow before acquisitions is
expected to reach $1.5 billion in 2014.
Moreover, the company expects to reach a sales target of $25
billion by 2020. Also, EBITDA margin is targeted in the range of
24%-26% by 2018. It is also expected that the cash return to
investors will continue increasing via a hike in dividend
Other Stocks to Consider
Syngenta currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry include
Gruma S.A.B. de CV
Archer Daniels Midland Company
). While Gruma and Archer Daniels sport a Zacks Rank #1 (Strong
Buy), Bunge Limited carries a Zacks Rank #2 (Buy).
ARCHER DANIELS (ADM): Free Stock Analysis
BUNGE LTD (BG): Free Stock Analysis Report
GRUMA SA-ADR B (GMK): Free Stock Analysis
SYNGENTA AG-ADR (SYT): Free Stock Analysis
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