Syngenta’s earnings hit comes at an unfortunate time. The Chinese-owned pesticides-to-seeds maker, once listed in Zurich, is preparing a stock market comeback in Shanghai this year, hoping to fetch a valuation as high as $60 billion. Yet a 25% fall in fourth-quarter EBITDA may dim owner ChemChina’s hope for a bumper valuation. Chief Executive Erik Fyrwald blamed higher energy and raw materials costs for the hit, which shrank the company’s EBITDA margin to 12% of revenue in the last quarter compared to the nearly 17% it delivered for the year.
View of stalks of wheat at a field in the El-Menoufia governorate, north of Cairo, Egypt, February 23, 2023. REUTERS/Mohamed Abd El Ghany
LONDON, March 22 - Syngenta’s earnings hit comes at an unfortunate time. The Chinese-owned pesticides-to-seeds maker, once listed in Zurich, is preparing a stock market comeback in Shanghai this year, hoping to fetch a valuation as high as $60 billion. Yet a 25% fall inEBITDA may dim owner ChemChina’s hope for a bumper valuation.
If Syngenta can expand sales at around 10% per year, just below its annual average before the war on Ukraine, but keeps its margin depressed at 12%, then the company’s EBITDA would only reach $5.3 billion by 2025, Breakingviews calculations show. Valued on the same 9.2 times multiple as Corteva
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