Anderson outlined where the company stands in addressing four strategic focus areas, with good progress in growth and innovation, the US litigation, cash and deleveraging, and the introduction of the new Dynamic Shared Ownership (DSO) operating model.
Group sales rose by 3.1 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.) to 11.144 billion euros in the second quarter of 2024. There was a negative currency effect of 240 million euros (Q2 2023: 553 million euros). EBITDA before special items decreased by 16.5 percent to 2.111 billion euros. This figure included a negative currency effect of 129 million euros (Q2 2023: 120 million euros). The decline in earnings was mainly due to an unfavorable product mix. In addition, the provisions for the Group-wide short-term incentive program were lower in the prior-year period. EBIT improved to 525 million euros (Q2 2023: minus 956 million euros) after net special charges of 490 million euros (Q2 2023: 2.490 billion euros). The special charges primarily related to expenses for ongoing restructuring measures and affected all divisions and functional areas. Net income amounted to minus 34 million euros (Q2 2023: minus 1.887 billion euros).
Free cash flow came in at 1.273 billion euros (Q2 2023: minus 473 million euros), primarily due to the increase in operating cash flow. Net financial debt as of June 30 stood at 36.760 billion euros, down 1.9 percent from the end of March, mainly as a result of cash inflows from operating activities.
Business up slightly at Crop Science
Second quarter of 2024
Sales
Sales at Crop Science rose by 1.1% (Fx & portfolio adj.) to €4,981 million in the second quarter of 2024. Growth was mainly driven by higher sales of glyphosate-based herbicides, with a particularly strong performance in North America. Sales of soybean seeds also increased. However, Crop Science recorded substantial sales declines for its non-glyphosate-based herbicides and its Fungicides business in a soft market environment.
- At Corn Seed & Traits, Crop Science recorded a slight drop in sales, mainly due to lower volumes in Latin and North America amid a decline in planted acreages.
- In the Herbicides business, Crop Science recorded substantial volume increases for its glyphosate-based products across all regions. By contrast, sales of its non-glyphosate-based products declined in all regions, especially in Latin America due to adverse weather conditions and Asia/Pacific as a result of falling market prices.
- Business at Fungicides was down sharply, mainly as a result of lower volumes and prices in North and Latin America.
- Sales at Soybean Seed & Traits climbed by a double-digit percentage, mainly driven by substantially higher volumes in North America.
- Sales at Insecticides increased, largely driven by higher Movento™ volumes in the Europe/Middle East/Africa region.
- The Cotton Seed business was impacted by a negative regional price-mix effect in North America that was only partially offset by higher volumes in the Asia/Pacific and North America regions.
- Business at Vegetable Seeds was up, primarily due to price increases in the Europe/Middle East/Africa region.
- Sales in the reporting unit ″Other″ came in at the prior-year level. In the Industrial Turf & Ornamental (IT&O) business, volume increases more than offset price declines.
