FINANCIAL REPORT
2024
Financial Report 2024
Table of Contents
Key Information
1
Operating and Financial Review and Prospects
2
Consolidated Income Statement
15
Consolidated Balance Sheet
17
Consolidated Cash Flow Statement
18
Consolidated Statement of Changes in Equity
19
Notes to the Syngenta AG Group Consolidated Financial Statements
20
Report of the Statutory Auditor
76
Income Statement of Syngenta AG
79
Balance Sheet of Syngenta AG
80
Notes to the Financial Statements of Syngenta AG
81
Appropriation of Available Earnings of Syngenta AG
89
Report of the Statutory Auditor of Syngenta AG
90
Key Information
Financial Report 2024
1
Selected Financial Data
Syngenta AG has prepared the consolidated financial statements in US dollars ($) and in accordance with IFRS Accounting Standards (IFRS
or IFRSs) as issued by the International Accounting Standards Board. Financial figures are presented in millions of dollars ($m) except where
otherwise stated. The basis of preparation of the consolidated financial statements and the key accounting policies are discussed in Note 1
and in Notes 2 and 26, respectively, to the consolidated financial statements.
The selected financial highlights information in accordance with IFRS presented below has been extracted from the consolidated financial
statements of Syngenta AG. Investors should read the entire consolidated financial statements and not rely on the summarized information.
The information includes the results of operations and the net assets of Woodbridge Seed, LLC. from July 24, 2020, Sensako (Pty) Ltd. from
August 14, 2020, Valagro S.p.A. from October 1, 2020, Progeny Advance Genetics, Inc. from December 3, 2020, Hollar & Co., Inc. from
December 16, 2020, Dipagro Ltda. and Vipagro Ltda. from October 7, 2021, Semillas Ceres, S.A. de C.V. from July 5, 2022, Agro Jangada
Ltda. from November 1, 2022, Macspred Pty Ltd. from April 28, 2023, Agrocerrado Produtos Agricolas E Assistencia Tecnica Ltda. from May
3, 2023, Kubix AgroIndustrial Ltda. from June 20, 2023, Feltrin Sementes Ltda. from July 3, 2023, Produtécnica Nordeste Comércio de
Insumos Agrícolas Ltda. from July 1, 2024 and Intrinsyx Bio Inc. from December 24, 2024.
Financial highlights
Year ended December 31,
($m)
2024
2023
2022
2021
2020
Amounts in accordance with IFRS
Income statement data:
Sales
16,981
19,196
19,963
16,733
14,287
Cost of goods sold
(10,887)
(12,312)
(11,640)
(9,623)
(8,113)
Gross profit
6,094
6,884
8,323
7,110
6,174
Operating expenses
(4,663)
(4,321)
(5,473)
(4,982)
(4,067)
Operating income
1,431
2,563
2,850
2,128
2,107
Income before taxes
694
1,429
2,242
1,688
1,610
Net income
261
1,081
1,907
1,442
1,422
Net income attributable to Syngenta AG shareholder
269
1,086
1,909
1,443
1,421
Cash flow data:
Cash flow from operating activities
2,571
537
1,071
2,060
2,050
Cash flow used for investing activities
(1,056)
(2,040)
(1,308)
(1,455)
(1,337)
Cash flow from/(used for) financing activities
(2,081)
1,767
166
(1,566)
(124)
Capital expenditure on tangible fixed assets
(623)
(761)
(705)
(629)
(555)
Balance sheet data:
Current assets less current liabilities
2,892
2,885
3,720
3,469
3,556
Total assets
29,445
32,692
30,440
25,914
25,283
Total non-current liabilities
(9,976)
(10,178)
(9,530)
(9,784)
(10,547)
Total liabilities
(22,184)
(25,326)
(23,517)
(20,329)
(20,793)
Share capital
(6)
(6)
(6)
(6)
(6)
Total shareholders’ equity
(7,246)
(7,323)
(6,877)
(5,529)
(4,434)
All activities were in respect of continuing operations.
Operating and Financial Review and Prospects
Financial Report 2024
2
Introduction
In the following discussion, references to “Syngenta” incorporate Syngenta AG and all of its subsidiaries and interests in associates and joint
ventures.
The following discussion includes forward-looking statements subject to risks and uncertainty. See “Forward-looking statements” at the end of
this document. This discussion also includes non-GAAP financial data in addition to GAAP results. See Appendix A to this section for a
reconciliation of this data and explanation of the reasons for presenting such data.
Constant exchange rates
Approximately 40 percent of Syngenta’s sales and 60 percent of Syngenta’s costs in 2024 were denominated in currencies other than US
dollars. Therefore, Syngenta’s results were significantly impacted by movements in exchange rates. Sales in 2024 were 12 percent lower than
2023 on a reported basis, 8 percent lower when calculated at constant rates of exchange. Syngenta therefore provides analysis of results
calculated at constant exchange rates (“CER”) and also actual results to allow an assessment of performance before and after taking account
of currency fluctuations. To present CER information, current period results for entities reporting in currencies other than US dollars are
converted into US dollars at the prior period’s exchange rates, rather than the exchange rates for this year. An example of this calculation is
included in Appendix A of this section.
Overview
Syngenta is a world leading agribusiness operating in the crop protection, seeds, professional solutions and flowers markets. Crop protection
includes chemicals such as herbicides, insecticides, fungicides and seed treatments to control weeds, insects and diseases in crops, as well
as biological products, and are essential inputs enabling growers around the world to improve agricultural productivity and food quality. In
Seeds, Syngenta operates in the high value commercial sectors of field crops (including corn, oilseeds, and cereals) and vegetables. The
professional solutions business provides turf and landscape and professional pest management products, and the flowers business provides
flower seeds, cuttings and young plants to professional growers and consumers.
Syngenta’s results are affected, both positively and negatively, by, among other factors: general economic conditions; weather conditions,
which can influence the demand for certain products over the course of a season and the quantity and cost of seeds supply; commodity crop
prices; and exchange rate fluctuations. Government measures, such as subsidies or rules regulating the use of agricultural products,
genetically modified seeds, or areas allowed to be planted with certain crops, also can have an impact on Syngenta’s industry. Syngenta’s
results are also affected by the growing importance of biotechnology to agriculture and the use of genetically modified crops. In future years,
climate change may have both positive and negative impacts on Syngenta’s results. Climate change may make growing certain crops more
or less viable in different geographic areas, but is not likely to reduce overall demand for food and feed. Syngenta currently sells and is
developing products to improve the water productivity of plants and increase tolerance to drought and heat. Legislation may be enacted in the
future that limits carbon dioxide emissions in the manufacture of Syngenta’s products or increases the costs associated with such emissions.
Syngenta works actively to make its production operations more energy efficient and to reduce the rate of carbon dioxide emissions per unit of
sales revenue.
Syngenta operates globally to capitalize on its technology and marketing base. In 2024, regional management structures were strategically
realigned to more effectively address market dynamics. The following analysis of revenue by primary geographical market reflects the new
organization and comparative figures have been restated accordingly. Syngenta’s largest market in 2024 was Latin America, which
represented approximately 36 percent of consolidated sales (2023: 35 percent), followed by North America at 23 percent (2023: 24 percent),
Europe at 17 percent (2023: 16 percent), Asia, Middle East and Africa at 16 percent (2023: 16 percent), China at 4 percent (2023: 4 percent)
and Other at 4 percent (2023: 5 percent). Markets for agricultural products in Europe and North America are seasonal resulting in both sales
and operating profit for Syngenta in these markets being weighted towards the first half of the calendar year, which largely reflects the
northern hemisphere planting and growing cycle. Latin America has its main selling season in the second half of the year due to its location in
the southern hemisphere. Asia, Middle East and Africa sales and operating profit are more uniform throughout the year.
Syngenta’s most significant manufacturing and research and development sites are located in Switzerland, the United Kingdom (“UK”), and
the United States of America (“USA” or “US”). During 2024, Syngenta’s significant manufacturing site in China was divested to a fellow
subsidiary of Syngenta Group as a result of legal entity reorganization in the wider group. Syngenta has major research centers focused on
identifying new active ingredients in Stein, Switzerland and Jealott’s Hill, UK. Syngenta’s primary center for agricultural genomics and
biotechnology research is in the USA.
References in this document to market share estimates are based where possible on global agrochemical and biotechnology industry
information provided by a third party or on information published by major competitors and are supplemented by Syngenta marketing staff
estimates.
The consolidated financial statements are presented in US dollars, as this is the major currency in which revenues are denominated.
However, significant but differing proportions of Syngenta’s revenues, costs, assets and liabilities are denominated in currencies other than
US dollars. Approximately 11 percent of sales in 2024 were denominated in Euros, while a significant proportion of costs for research and
development, administration, general overhead and manufacturing were denominated in Swiss francs and British pounds sterling
(approximately 14 percent in total). Sales in Swiss francs and British pounds sterling together made up approximately 1 percent of total sales.
Marketing and distribution costs are more closely linked to the currency split of the sales. As a result, operating profit in US dollars can be
significantly affected by movements in exchange rates, in particular movements of the Swiss franc, British pound sterling, Euro and Brazilian
real, relative to the US dollar, and the relative impact on operating profit may differ from that on sales. Sales in emerging markets are more
than 50 percent of Syngenta’s total sales. Where it is not commercially disadvantageous, Syngenta sets sales prices in these markets in US
dollars, particularly in parts of Latin America, Russia and the Ukraine. However, in many emerging territories Syngenta sells in the local
currency of the countries in the territory and as a result has a long exposure to multiple emerging market currencies. The effects of currency
fluctuations within any one year have been reduced by risk management strategies such as hedging and the aforementioned US dollar sales
pricing. For further information on these strategies please refer to Note 24 of the consolidated financial statements.
Operating and Financial Review and Prospects
Financial Report 2024
3
The consolidated financial statements are based upon Syngenta’s accounting policies and, where necessary, the results of management
estimations. Syngenta believes that the critical accounting policies and estimations underpinning the financial statements are in the areas of (i)
royalty and license income, (ii) capitalization of development costs, (iii) impairment, (iv) acquisition accounting, (v) adjustments to revenue and
trade receivables, (vi) deferred tax assets, (vii) uncertain tax positions, (viii) seeds inventory valuation and allowances, (ix) environmental
provisions, (x) defined benefit post-employment benefits and (xi) litigation provisions. These policies are described in more detail in Notes 2
and 26 to the consolidated financial statements.
Summary of results
Net income in 2024 attributable to Syngenta’s shareholder was $269 million, compared to $1,086 million in 2023.
Sales in 2024 were 12 percent lower than 2023, 8 percent lower at constant exchange rates, with a 6 percent decrease in sales volumes and
a further 2 percent decrease in local currency sales prices. Currency movements decreased reported sales by 4 percent. Sales of Crop
Protection products decreased by 13 percent, 9 percent at constant exchange rates and Seeds sales were 4 percent lower than 2023, 2
percent at constant exchange rates. Adverse weather conditions, particularly in the first half of the year, and continued channel inventory
reductions, partly from the higher financing costs of working capital, reduced sales volumes in Crop Protection. This was compounded by new
generic supply capacity coming on stream, which adversely impacted sales prices, particularly of older technologies. Gross profit margin was
flat from year to year, 2 percent higher at constant exchange rates, as raw material cost reductions offset the lower sales prices.
Operating income as a percentage of sales was 8.4 percent in 2024. Excluding restructuring and impairments, operating income as a
percentage of sales decreased by 2.6 percent in 2024 compared with 2023 despite the flat gross profit margin, partly from an increased
charge to provisions for doubtful receivables compared to the low level in 2023. Currency exchange rate impacts decreased operating income
by approximately $550 million.
Cash flow from operating activities before change in net working capital was $831 million lower than in 2023, largely due to the lower
operating income. Change in net working capital was an inflow of $1,829 million compared to an outflow of $1,036 million in 2023, with solid
collections of trade receivables, despite reduced sales, and inflows from lower trade payable levels compared with the outflows in 2023, which
were due to inventory management actions. Inventories were further reduced and at the end of 2024 were 38 percent of sales compared to
42 percent at the end of 2023. Trade payables increased from 36 percent of sales at the end of 2023 to 39 percent. Cash flow used for
investing activities in 2024 was $1,056 million compared to $2,040 million in 2023, with the lower outflows mainly attributable to movements in
marketable securities investments in Argentina, discussed in more detail below, but also lower additions to property, plant and equipment.
Cash outflows from financing activities were $2,081 million in 2024 compared to inflows of $1,767 million in 2023, with a reduction in cash
balances and higher free cash flow being used to reduce short-term debt.
Marketing and distribution expenses increased by 4 percent, 7 percent at constant exchange rates, with bad debt charges in 2024, mainly in
Latin America, compared with net releases of bad debt provisions in 2023 in Ukraine and Russia, due to improved visibility of the impact of the
military conflict on business performance following its onset in 2022. Research and development expense was 4 percent higher than 2023,
also at constant exchange rates, due mainly to higher amortization of previously capitalized development costs.
General and administrative, including restructuring and impairment, the components of which are described under the Restructuring and
impairment heading below, increased by $186 million compared with 2023. General and administrative, excluding restructuring and
impairment, was $213 million lower than 2023, due to savings from travel and personnel costs, deferral of project costs and reduced litigation
costs. Foreign exchange hedging gains of approximately $30 million were flat from year to year.
Restructuring and impairment expenses in 2024 were $472 million (2023: $81 million). Cash restructuring costs were $267 million (2023: $43
million) and non-cash impairments were $278 million (2023: $38 million). Divestment gains included in Restructuring were $73 million (2023:
$nil). During 2024, Syngenta set up a Transformation Office to shape and implement strategic initiatives and enable productivity
improvements across the organization over a multi-year period. Cash costs included project costs and severance and non-cash costs
included asset impairments related to strategic shifts impacting crop and geographic commercial priorities and the global organizational
footprint. These costs are described in more detail in Note 6 to the consolidated financial statements.
Financial expense, net was $405 million lower than 2023, due largely to the impact of the losses on Argentina marketable securities in 2023.
During 2023, restrictions on foreign exchange transactions in Argentina tightened significantly and substantially limited the ability of Syngenta
Agro S.A., a subsidiary of Syngenta AG (hereafter “Syngenta Argentina”) to secure foreign currency and make payments for imports and
distributions out of Argentina. As a result, Syngenta Argentina invested the peso cash generated from operations into marketable securities to
manage the foreign currency exposure. In the final quarter of 2023, the Argentine government significantly devalued the peso by more than
100 percent against the US dollar, which adversely impacted the value of Syngenta Argentina’s marketable securities, resulting in a net loss of
$272 million in 2023, largely unrealized. During 2024, the restrictions eased somewhat and gains of $69 million resulted from unwinding of
marketable securities positions. As at December 31, 2024, $94 million of marketable securities were reported on the balance sheet
(December 31, 2023: $441 million). Management continues to closely monitor the risks posed by the Argentine economic environment on
Syngenta’s business operations.
The tax rate increased to 62 percent in 2024 from 24 percent in 2023 with the largest increases coming from the effects of income taxed at
different rates due to the profit allocation within the group and the effect of non-recognition of current year tax losses in Switzerland and
Argentina.
Acquisitions, divestments and other significant transactions
2024
On July 1, 2024, Syngenta acquired 100 percent of the issued shares of Produtécnica Nordeste Comércio de Insumos Agrícolas Ltda., a
limited liability company incorporated in Brazil, a distributor of agricultural products in the Brazilian states of Maranhao, Piaui and Tocantis of
Brazil. The acquisition will enable Syngenta to strengthen its presence and explore further expansion opportunities in the North and Northeast
regions of Brazil.
Operating and Financial Review and Prospects
Financial Report 2024
4
On December 17, 2024, Syngenta completed the sale of certain of its subsidiaries based in China to Syngenta Group Co. Ltd, the parent
company of Syngenta Group, for a consideration of $225 million.
On December 24, 2024, Syngenta exercised a call option and obtained 100 percent control of Intrinsyx Bio Inc., a former associate in which
Syngenta held a 40 percent equity ownership. Intrinsyx Bio Inc. is a US-based research and development company involved in the
development of biological products for the Crop Protection segment and will enable Syngenta to develop new products for the biological
market.
2023
On April 28, 2023, Syngenta acquired 100 percent of the issued shares of Macspred Pty Ltd., a limited liability company incorporated in
Australia, a specialist in weed management for the forestry, roads, rail, utilities, and infrastructure sectors. The acquisition enables Syngenta to
enter, through its Professional Solutions business, into the forestry products and vegetation markets in Australia.
On May 3, 2023, Syngenta acquired 100 percent of the issued shares of Agrocerrado Produtos Agricolas E Assistencia Tecnica Ltda., a
limited liability company incorporated in Brazil, a distributor of agricultural products in the Minas Gerais state of Brazil. The acquisition enables
Syngenta to strengthen its presence and explore further expansion opportunities in Minas Gerais.
On June 20, 2023, Syngenta acquired 100 percent of the issued shares of Kubix AgroIndustrial Ltda. ("Kubix"), a limited liability company
incorporated in Brazil. Kubix, based in Indaiatuba, state of Sao Paulo, is a production facility that manufactures crop protection products. The
acquisition will increase Syngenta’s manufacturing capacity to meet growing demand.
On July 3, 2023, Syngenta acquired 100 percent of the issued shares of Feltrin Sementes Ltda. (“Feltrin”), a limited liability company
incorporated in Brazil. Feltrin is a vegetable seed breeding and distribution company based in Rio Grande do Sul. The acquisition enables
Syngenta to increase its vegetable seeds position through Feltrin’s strong distribution network.
Restructuring programs
Restructuring costs are discussed in detail in Note 6 to the consolidated financial statements.
Results of operations
2024 compared with 2023
Sales commentary
Syngenta’s consolidated sales for 2024 were $16,981 million, compared with $19,196 million in 2023, a decrease of 12 percent year on year.
At constant exchange rates sales decreased by 8 percent. The analysis by product line is as follows:
($m, except change %)
Change
Product line
2024
2023
Volume %
Local price %
CER %
Currency %
Actual %
Selective herbicides
2,867
3,771
-14
-8
-22
-2
-24
Non-selective herbicides
803
1,094
-14
-8
-22
-5
-27
Fungicides
3,735
4,564
-12
-2
-14
-4
-18
Insecticides
2,565
2,556
+11
-4
+7
-7
-
Seedcare
1,351
1,573
-10
-
-10
-4
-14
Professional solutions
658
652
+4
-2
+2
-1
+1
Biologicals
476
387
+25
+2
+27
-4
+23
Other crop protection
808
836
-
+7
+7
-10
-3
Total Crop Protection
13,263
15,433
-7
-3
-10
-4
-14
Corn and soybean
2,138
2,184
+1
-
+1
-3
-2
Diverse field crops
669
850
-25
+4
-21
-
-21
Other seeds
‐
1
-
-
-
-
-
Vegetables
796
746
+4
+6
+10
-3
+7
Flowers
191
183
-
+3
+3
+1
+4
Total Seeds
3,794
3,964
-4
+2
-2
-2
-4
Elimination1
(76)
(201)
n/a
n/a
n/a
n/a
n/a
Total Syngenta
16,981
19,196
-6
-2
-8
-4
-12
1 Crop Protection sales to Seeds and Seeds sales to Crop Protection
Operating and Financial Review and Prospects
Financial Report 2024
5
Sales by region for Crop Protection are as follows:
($m, except change %)
Change
Region
2024
2023
Volume %
Local price %
CER %
Currency %
Actual %
Asia, Middle East and Africa
1,938
2,223
-7
-
-7
-6
-13
China
653
608
+16
-5
+11
-4
+7
Europe
1,939
2,197
-10
-2
-12
-
-12
Latin America
5,237
5,801
+3
-5
-2
-8
-10
North America
2,785
3,656
-18
-6
-24
-
-24
Other
711
948
n/a
n/a
n/a
n/a
n/a
Total Crop Protection
13,263
15,433
-7
-3
-10
-4
-14
Asia, Middle East and Africa
Sales in Asia, Middle East and Africa were 13 percent below 2023, 7 percent lower at constant exchange rates. Prices were flat with volumes
in 2024 decreasing 7 percent compared with 2023. Sales growth in India was more than offset by weaker conditions in Pakistan and
Bangladesh and the impact of high opening channel inventories and supply constraints in Russia. Prices of non-selective herbicides were
under pressure in Indonesia.
China
In 2024, sales in China grew by 7 percent, 11 percent at constant exchange rates with volume growth of 16 percent partly offset by price
declines of 5 percent, due to a very strong performance in fungicides, driven by ADEPIDYN® technology, strong momentum from Biologicals
and a successful launch of TYMIRIUM® technology, providing long-lasting protection against a broad spectrum of nematode pests and
diseases.
Europe
Sales in Europe fell 12 percent in 2024, also at constant exchange rates with volume declines of 10 percent and price reductions of 2 percent.
2024 sales were significantly impacted by channel destocking, but by the end of the year, channel stock was estimated at back to normal
levels in most markets. Pressure from generics also led to price and volume declines partly offset by market share gains in Ukraine and a
successful launch of MIRAVIS® in the UK.
Latin America
In 2024, sales in Latin America were 10 percent lower than in 2023, largely due to currency. At constant exchange rates, 2024 sales were 2
percent lower than 2023 with a 3 percent increase in volumes offset by a 5 percent decrease in prices. Brazil sales declined 5 percent driven
by price pressure in post-patent active ingredients and there was a strong market contraction and unfavorable weather conditions in
Argentina. Sales of ADEPIDYN® technology grew strongly in Brazil.
North America
Sales in North America fell by 24 percent compared with 2023, also at constant exchange rates with 18 percent lower volumes and 6 percent
decline in prices resulting from channel destocking and market contraction driving a challenging pricing environment.
Sales by region for Seeds are as follows:
($m, except change %)
Change
Region
2024
2023
Volume %
Local price %
CER %
Currency %
Actual %
Asia, Middle East and Africa
790
864
-15
+13
-2
-7
-9
China
78
80
-1
-
-1
-1
-2
Europe
817
809
-1
+1
-
+1
+1
Latin America
864
966
-2
-5
-7
-4
-11
North America
974
951
+1
+1
+2
-
+2
Other
80
111
n/a
n/a
n/a
n/a
n/a
Flowers
191
183
-
+3
+3
+1
+4
Total Seeds
3,794
3,964
-4
+2
-2
-2
-4
Asia, Middle East and Africa
Sales in Asia, Middle East and Africa decreased by 9 percent in 2024 compared with 2023, 2 percent at constant exchange rates, with
volumes decreases of 15 percent largely offset by price increases of 13 percent. The volumes decline was largely due to trade restrictions on
the import of sunflower seeds into Russia. Sales price increases were partly to offset the impact of weaker currencies versus the US dollar.
Europe
In 2024, sales in Europe increased by 1 percent due to currency impacts, with volume declines offset by price increases. Vegetables had a
strong performance in 2024 with price increases offsetting cost inflation and currency fluctuations, new product introductions driving 21
percent of sales and estimated market share gains. In 2024 an estimated market share gain was delivered in corn, despite production being
challenged by adverse weather conditions.
Latin America
Latin America sales decreased by 11 percent in 2024, 7 percent at constant exchange rates. Volumes fell by 2 percent and prices decreased
by 5 percent. In 2024, Brazil had strong growth in branded corn volumes, offset by lower private label sales and a change of business model
in soybean reduced sales revenues, but improved profitability. Disease pressure in Argentina reduced corn area in 2024.
Operating and Financial Review and Prospects
Financial Report 2024
6
North America
Sales in North America were 2 percent higher in 2024 than in 2023 with volumes and prices each increasing by 1 percent. Soybean sales
increased significantly in 2024 compared with 2023. Corn gained market share in areas of commercial focus, although offset by lower market
share in other areas. Vegetables demand returned to pre-covid levels in 2024, but sales volumes decreased due to channel destocking.
Flowers
Sales of Flowers increased by 4 percent in 2024 compared with 2023, 3 percent at constant currency, with local currency prices increasing by
3 percent, representing a strong pricing performance in challenging market conditions.
Operating income
Variances in the tables below reflect the profit impact of changes year on year. For example, an increase of sales or a decrease in costs is a
positive variance and a decrease in sales or increase in costs is a negative variance.
Syngenta Operating
Income
Total as reported under
IFRS
Change
Restructuring and
impairment
Before restructuring and
impairment1
Change before
restructuring and
impairment1
($m, except change %)
2024
20232
Actual %
CER %
2024
20232
2024
2023
Actual %
CER %
Sales
16,981
19,196
-12%
-8%
‐
‐
16,981
19,196
-12%
-8%
Cost of goods sold
(10,887) (12,312)
+12%
+11%
‐
(8) (10,887) (12,304)
+12%
+11%
Gross profit
6,094
6,884
-11%
-3%
‐
(8)
6,094
6,892
-12%
-3%
as a percentage of sales
36%
36%
36%
36%
Marketing and distribution
(2,753)
(2,636)
-4%
-7%
‐
‐
(2,753)
(2,636)
-4%
-7%
Research and development
(1,124)
(1,085)
-4%
-4%
‐
‐
(1,124)
(1,085)
-4%
-4%
General and administrative:
Restructuring costs
(267)
(43)
-520%
-526%
(267)
(43)
‐
‐
n/a
n/a
Divestment gains
73
‐
n/a
n/a
73
‐
‐
‐
n/a
n/a
Other general and
administrative
(592)
(557)
-6%
-6%
(278)
(30)
(314)
(527)
+40%
+41%
Operating income
1,431
2,563
-44%
-23%
(472)
(81)
1,903
2,644
-28%
-7%
as a percentage of sales
8%
13%
11%
14%
Syngenta has five operating segments, which have been aggregated into the global Crop Protection segment, including Professional
Solutions and the global Seeds segment, including Field Crops, Vegetables and Flowers.
Operating Income
($m, except change %)
2024
2023
Change %
Crop Protection
1,494
2,390
-37%
Seeds
409
254
+61%
Total segments
1,903
2,644
-28%
Restructuring
(472)
(81)
-483%
Syngenta
1,431
2,563
-44%
The two tables above do not represent income statements prepared under IFRS. Please refer to the information reported in the consolidated financial statements.
1 Amounts before restructuring and impairment are non-GAAP measures. Please refer to Appendix A of the Operating and Financial Review for a more detailed description
2 For 2023, $30 million of non-cash costs have been reclassified from Restructuring costs to Other general and administrative to be consistent with the 2024 presentation
Overall Syngenta operating income
Operating income in 2024 was 44 percent lower than 2023. Restructuring and impairment charges were $472 million in 2024 and are
described in detail in Note 6 to the consolidated financial statements.
Excluding restructuring and impairment, operating income in 2024 was $1,903 million compared to $2,644 million in 2023, $896 million lower
in Crop Protection and $155 million higher in Seeds, as described below. Sales were 12 percent lower than 2023, 8 percent at constant
exchange rates and are explained in more detail above. Excluding restructuring and impairment, gross profit was 12 percent lower while the
gross profit margin was maintained.
Marketing and distribution costs in 2024 increased by 4 percent to $2,753 million, seven percent at constant exchange rates. The impact of
lower sales volumes on variable selling and logistics costs was more than offset by provisions for bad debts, which were approximately $143
million higher in 2024 due to higher charges in Latin America and significant releases of bad debt provisions in Russia and Ukraine in 2023
due to improved visibility of the impact of the military conflict on customers’ ability to repay receivable balances in those countries.
Research and development costs were 4 percent higher in 2024 compared with 2023, also at constant exchange rates, with increased
amortization of previously capitalized development costs offsetting productivity savings.
Significantly lower other general and administrative costs in 2024 included productivity savings from travel and personnel costs, deferral of
project expenses and a significant decrease in litigation expenses due to the conclusion in 2023 of all material exporter plaintiff claims related
to Viptera.
Currency exchange rate movements reduced 2024 operating profit by an estimated $550 million relative to 2023, with hedging gains relatively
flat at approximately $30 million.
For further discussion on Syngenta operating income, see Summary of results above.
Operating and Financial Review and Prospects
Financial Report 2024
7
Operating income by segment
Crop Protection
Total as reported under
IFRS
Change
($m, except change %)
2024
20232
Actual %
CER %
Sales
13,208
15,251
-13%
-9%
Cost of goods sold
(8,816)
(10,057)
+12%
+12%
Gross profit
4,392
5,194
-15%
-4%
as a percentage of sales
33%
34%
Marketing and distribution
(1,945)
(1,803)
-8%
-10%
Research and development
(723)
(704)
-3%
-2%
General and administrative:
Other general and administrative
(230)
(297)
+23%
+18%
Operating income
1,494
2,390
-37%
-16%
as a percentage of sales
11%
16%
This table does not represent an income statement prepared under IFRS. Please refer to the segmental information reported in Note 4 to the consolidated financial statements.
Reported sales were 13 percent lower in 2024 than in 2023, 9 percent lower at constant exchange rates with sales volumes 6 percent lower
and local currency prices averaging 3 percent lower. See the Sales commentary section above for further information on sales.
Gross profit was 15 percent lower in 2024, 4 percent lower at constant exchange rates; gross profit margin was 1 percentage point lower, with
lower sales prices, particularly in Brazil, Argentina and the US, driven by increased generic competition on older technologies and adverse
currency movements.
Marketing and distribution costs increased 8 percent from 2023 to 2024, 10 percent at constant exchange rates, and increased almost 3
percent as a percentage of sales mainly due to bad debt provisions. There were $93 million of bad debt charges in 2024 due largely to weaker
markets in Argentina and flooding in Southern Brazil, compared with $30 million of bad debt provision releases in 2023 as customer
collections in Russia and Ukraine were significantly better than previously expected considering the uncertainty related to the military conflict.
Research and development costs were 3 percent higher in 2024, 2 percent at constant exchange rates, with the impact of productivity
initiatives more than offset by increased amortization from capitalized development costs.
Other general and administrative costs were $67 million lower than 2023 and included productivity savings and gains from asset disposals
and revisions to lease terms, partly offset by increases in litigation defense costs.
Seeds
Total as reported under
IFRS
Change
($m, except change %)
2024
20232
Actual %
CER %
Sales
3,773
3,945
-4%
-2%
Cost of goods sold
(2,071)
(2,247)
+8%
+6%
Gross profit
1,702
1,698
-
+3%
as a percentage of sales
45%
43%
Marketing and distribution
(808)
(833)
+3%
+1%
Research and development
(401)
(381)
-5%
-7%
General and administrative:
Other general and administrative
(84)
(230)
+63%
+70%
Operating income
409
254
+61%
+75%
as a percentage of sales
11%
6%
This table does not represent an income statement prepared under IFRS. Please refer to the segmental information reported in Note 4 to the consolidated financial statements.
Sales were 4 percent lower in US dollars, 2 percent lower at constant exchange rates, with sales volumes 4 percent lower and local currency
sales prices 2 percent higher. See the Sales commentary section above for further information on sales.
Gross profit was flat compared with 2023, 3 percent higher at constant exchange rates. Gross profit margin was 2 percentage points higher
with sales price increases and lower inventory provisions in Brazil.
Marketing and distribution costs were 3 percent lower in US dollars, 1 percent lower at constant exchange rates, mainly related to the lower
sales volumes.
Research and development expense was $20 million higher in 2024 compared with 2023 mainly due to increased amortization of
development costs capitalized in previous years.
Other general and administrative costs were $146 million lower in 2024 compared with 2023. Higher gains from site divestments were
recognized in 2024 and lower costs also reflected reduced litigation expenses due to the conclusion of all material claims by exported plaintiffs
related to Viptera during 2023.
Operating and Financial Review and Prospects
Financial Report 2024
8
Defined Benefit Pensions
Defined benefit pension expense was $82 million in 2024 compared with $68 million in 2023. The increase is due to higher service costs
relating to lower discount rates.
Syngenta contributions to defined benefit pension plans were $154 million in 2024 compared with $148 million in 2023. In 2025, Syngenta
expects contributions to defined benefit pension plans, excluding early retirement contributions associated with restructuring actions, to be
approximately $82 million. The expected reduction in contribution mainly reflects revised pension funding arrangements in the UK where the
pension fund is no longer in deficit on a UK statutory basis.
Financial expense, net
Financial expense, net decreased by $405 million in 2024 to $737 million. 2023 included $272 million of losses from movements in fair value
of bonds and other investments in Argentina following the significant devaluation of the Argentine Peso in December 2023. Currency controls
had prevented Syngenta from repaying import costs from around the middle of 2023 and while the cash was invested in $ linked assets,
mark-to-market valuations of these investments dropped significantly on the devaluation. In 2024 there were $69 million of gains from mark-to-
market valuation movements as the Argentine Peso gradually became more stable. Net interest costs at $747 million were $77 million higher
than 2023 partly due to higher average levels of net debt during 2024. Currency-related financial expenses of $11 million in 2024 contrasted
with $152 million in 2023, with higher gains of hedging the CHF exposure and lower costs of hedging the BRL exposure, where working
capital levels were lower.
Taxes
In 2024, Syngenta recorded a net tax expense of $433 million on a profit before taxes of $694 million, an effective tax rate of 62 percent. The
effective tax rate in 2023 was 24 percent, based on $348 million net tax expenses and $1,429 million profit before tax. The Swiss tax rates
range from 13 to 19 percent. In Basel-Stadt, the canton where Syngenta has its headquarters, the ordinary effective tax rate is 13 percent.
Details of main items impacting the difference between the statutory tax rate and Syngenta’s effective tax rate are shown in Note 7 to the
consolidated financial statements. The main reasons for the higher rate are adverse profit mix, particularly due to losses in Switzerland, and
also the non-recognition of current year tax losses in Switzerland and Argentina.
In December 2023, the Swiss government partially implemented OECD Pillar Two by introducing a Qualified Domestic Minimum Top-up Tax
(“QDMTT”) to reach the required taxation level of 15 percent on Pillar Two qualifying profits earned by companies domiciled in Switzerland
effective from January 1, 2024. Switzerland has implemented the Income Inclusion Rule (IIR) effective from January 1, 2025 onwards and
therefore profits earned by subsidiaries domiciled in tax jurisdictions outside of Switzerland would be subject to an OECD Pillar Two top up tax
if either a local QDMTT or an IIR at a lower subsidiary level is effective for 2024. For the countries in which Syngenta operates and which have
enacted a local QDMTT and an IIR, Syngenta is either benefitting from the Transitional Safe Harbor rule or the respective QDMTT or IRR are
immaterial. Given Syngenta‘s ultimate parent company has not finalized its global analysis of OECD Pillar Two, and the interpretation and
adoption of such rules are subject to change globally, uncertainty exists as to the ultimate amount of OECD Pillar Two liabilities of Syngenta
for 2024.
Net income for the period and other supplementary income data
Net income attributable to Syngenta’s shareholder in 2024 was $269 million, compared to $1,086 million in 2023.
Sales in 2024 were 12 percent lower than 2023 and operating income margin was 5 percent lower than 2023. Excluding restructuring and
impairment, after lower financial expense, income before taxes was 23 percent lower in 2024. Restructuring and impairment, net of tax, was
$344 million higher in 2024 compared with 2023. The 2024 tax rate was 62 percent, compared with 24 percent in 2023.
Foreign operations and foreign currency transactions
Syngenta’s subsidiaries use their local currency as their functional currency for accounting purposes except where the use of a different
currency more fairly reflects their actual circumstances.
Syngenta operates worldwide with a large presence in emerging markets and a broad range of currency effects that need to be closely
monitored. Syngenta regularly analyzes how currency fluctuations will impact its operating results and manages the impact with a combination
of commercial actions, such as product pricing, and financial risk management strategies, such as hedging. Next to the Euro, the Swiss franc
and the British pound sterling, the Brazilian real gives rise to a major currency exposure due to the large size of Syngenta’s business activities
in Brazil. Sales prices to customers in Brazil largely are linked to the US dollar, which limits the impact of fluctuations in the US dollar/Brazilian
real exchange rate, though the extent of the linkage may vary from year to year depending on market conditions and the direction and speed
of the exchange rate movement. Similarly, Syngenta manages its currency exposure in Argentina and parts of the CIS, mainly Russia and
Ukraine, by linking local currency sales prices to the US dollar to compensate for the fluctuations in sales value from currency devaluation.
During 2024, the Argentine peso devalued by approximately 30 percent against the US dollar, although was significantly more stable than
during 2023 when the peso devalued more than 350 percent. In 2024, the Russian ruble depreciated by 24 percent, having depreciated by
the same amount during 2023. There have been significant exchange movements in the ruble due to the conflict with Ukraine and the extent
to which sales prices are linked to the US dollar and the ability to hedge the ruble is subject to some uncertainty.
Syngenta regularly monitors receivables exposure in all countries in which it operates. Syngenta has significant sales in East Europe where
exchange rate volatility and other macroeconomic factors cause overall credit risk to be higher. In Latin America, Argentina continues to
experience economic and financial difficulties, which have also impacted Brazil in previous years, and this at times has led to constraints in the
availability of credit. In Argentina the economy has been hyperinflationary since the middle of 2018, putting pressure on liquidity, and while
currency controls have eased somewhat in 2024, currency controls have restricted access to foreign currency to repay import costs since the
middle of 2023.
Operating and Financial Review and Prospects
Financial Report 2024
9
The following table outlines for the above-named countries1 the aggregate gross trade receivables, those past due for more than 180 days
and the related provision for doubtful receivables at December 31, 2024 and 2023.
($m)
2024
2023
Gross trade receivables
3,191
3,430
Past due for more than 180 days
429
392
Provision for doubtful trade receivables
407
402
1 Includes Argentina, Brazil, Venezuela, Russia, Ukraine, Kazakhstan and Belarus
Gross trade receivables have decreased from 2023 to 2024, mainly due to lower sales in Russia, where import restrictions limited the Seeds
business particularly, and in Brazil and Argentina due to lower sales as discussed above. Receivables past due for more than 180 days
increased as a percentage of gross trade receivables, while provisions for doubtful trade receivables remained flat, mainly in Brazil where the
newer distribution businesses experience longer credit term expectations from customers.
At December 31, 2024, approximately 56 percent of Syngenta’s cash and cash equivalents was held in US dollars, approximately 8 percent in
Russian rubles, approximately 7 percent in Indian rupees, approximately 6 percent in Brazilian real, and approximately 4 percent in Thailand
baht. No other individual currency made up more than 2 percent.
Liquidity and capital resources
Syngenta’s principal source of liquidity consists of cash generated from operations. Syngenta makes use of trade receivable factoring across
various regions and reverse factoring arrangements to manage timing of cash flows. Working capital fluctuations due to the seasonality of the
business are supported by short-term funding available from a $2.5 billion Global Commercial Paper program, a $5 billion revolving short-term
credit facility with Syngenta Group (HK) Holdings Company Limited and $3.5 billion committed credit lines with various financial institutions.
($m)
2024
Balance outstanding
at December 31, 2024
Average balance outstanding
Global Commercial Paper program
-
99
Short-term credit facility with Syngenta Group
1,000
2,683
Committed credit lines
200
1,623
Total
1,200
Long-term capital employed is currently financed through nine unsecured bonds, two unsecured notes issued under the Note Purchase
Agreement in the US Private Placement market, three loans with financial institutions and five intragroup term loans with Syngenta Group
(HK) Holdings Company Limited.
The table below summarizes Syngenta’s unsecured bonds and notes in issuance as at December 31, 2024:
($m)
Issuance date
Carrying amount
Value at issue
4.892% USD bond 2025
April 2018
677
677
5.350% USD private placement 2025
December 2005
55
55
3.375% Eurobond 2026
March 2020
942
1,008
0.700% CHF bond 2026
February 2020
154
145
1.250% Eurobond 2027
March 2015
520
559
1.500% CHF bond 2027
November 2024
132
136
5.182% USD bond 2028
April 2018
336
336
2.125% CHF bond 2029
March 2014
166
170
5.590% USD private placement 2035
December 2005
11
11
4.375% USD Notes 2042
March 2012
20
20
5.676% USD bond 2048
April 2018
153
153
Total
3,166
3,270
In addition, Syngenta has a long-term $1,000 million floating rate USD loan which matures in 2027, a long-term $550 million floating rate USD
loan which matures in 2027 and a long-term CHF 300 million floating rate CHF loan which matures in 2026 (2023: a long-term $1,250 million
floating rate USD loan maturing in 2024 and in 2025; a long-term $358 million floating rate CHF loan maturing in 2025 and a long-term $300
million fixed rate USD loan maturing in 2026).
Intragroup term loans consist of a CNY 3,800 million 2.55 percent fixed rate loan that matures in 2027, a CNY 3,500 million loan with a floating
interest rate based on China Loan Prime Rate (LPR) that matures in 2026, a CNY 5,000 million 2.85 percent fixed rate loan that matures in
2026, a $500 million loan with a floating rate interest based on SOFR that matures in 2025 and a $500 million loan with a 5.05 percent interest
rate that matures in 2026 (2023: a CNY 3,800 million loan with a floating interest rate based on LPR that matures in 2025, a CNY 3,500 million
loan with a floating interest rate based on LPR that matures in 2026, a CNY 5,000 million loan with a 2.85 percent interest rate that matures in
2026, a $500 million loan with a floating rate interest based on SOFR that matures in 2025 and a $500 million loan with a 5.05 percent interest
rate that matures in 2026).
For information on Syngenta’s funding and treasury policies and objectives in terms of the manner in which treasury activities are controlled,
see Note 24 to the consolidated financial statements.
Operating and Financial Review and Prospects
Financial Report 2024
10
Syngenta reported cash and cash equivalents on December 31, 2024 and 2023 of $1,025 million and $1,639 million, respectively. At
December 31, 2024 and 2023, Syngenta had current financial debt of $3,039 million and $5,328 million, respectively, and non-current
financial debt of $7,753 million and $7,868 million, respectively.
Syngenta targets maintaining an investment grade credit rating, as recognized by major third-party rating agencies, which it currently believes
provides an optimal balance between financial flexibility and the cost of capital. At December 31, 2024, Syngenta’s credit ratings were as
follows: Fitch Ratings Ltd BBB/F3; Standard & Poor's Rating Services BBB/A-2; and Moody's Investors' Services Limited Baa3/P-3. There are
no material legal or economic restrictions on the ability of subsidiaries to transfer funds to the Company in the form of cash dividends except
as disclosed in the consolidated cash flow statement.
Other than refinancing future maturing bonds over the short to medium term, management is of the opinion that, absent a major business
acquisition or a very significant deterioration in working capital or the rate of receivables collections from that currently expected, the funding
available from the sources described above will be sufficient to satisfy Syngenta’s working capital, capital expenditures and debt service
requirements for the foreseeable future, including cash expenditures relating to restructuring programs. In the event of a major business
acquisition, Syngenta would seek additional funding from capital markets or other sources, including its shareholder. Syngenta regards as
sufficiently remote the likelihood that a very significant deterioration in working capital or unexpected decline in the rate of receivables
collections will occur as not to require the development of a detailed contingency funding plan.
Cash flow
The following table sets out certain information about cash flow for each of the periods indicated:
Year ended December 31,
($m)
2024
2023
Cash flow from operating activities
2,571
537
Cash flow used for investing activities
(1,056)
(2,040)
Cash flow from financing activities
(2,081)
1,767
Cash flow from operating activities
2024 compared with 2023
Cash flow from operating activities increased by $2,034 million to $2,571 million in 2024 mainly due to higher inflows from net working capital,
including inflows of $337 million from trade and other working capital liabilities in 2024 compared with outflows of $1,846 million in 2023 when
trade payable levels fell significantly as inventory reduction measures were initiated. Inflows from income before taxes after the reversal of
non-cash and other reconciling items were $849 million lower in 2024 compared with 2023 because of lower sales, which was largely offset
by reduced levels of trade receivables resulting in inflows from trade and other accounts receivable that were $736 million higher than in 2023.
Net interest payments were $125 million higher in 2024 than in 2023, reflecting higher levels of net debt during 2024, but were more than
offset by other net financial payments, which were $387 million lower in 2024 compared with 2023 because of lower hedging and foreign
exchange costs.
Cash flow used for investing activities
2024 compared with 2023
Cash flows used for investing activities were $1,056 million compared with $2,040 million in 2023. Net proceeds from disposals of marketable
securities were $227 million in 2024 compared with net purchases of $628 million in 2023 when restrictions in offshore payments in Argentina
led to significant investments. These restrictions began to ease during 2024. Outflows for additions to fixed assets fell by $138 million from
2024 to 2023 due to a drive to contain capital expenditure while outflows from business acquisitions and divestments were relatively flat.
Cash flow used for financing activities
2024 compared with 2023
Cash flows used for financing activities were $3,848 million higher in 2024 compared with 2023, with the increase in cash flows from operating
activities used to reduce third party interest-bearing debt. The dividend paid to shareholders in 2023 was $500 million; no dividend was paid in
2024.
Research and development (“R&D”)
Syngenta’s Research and Development organization is dedicated to developing quality crop protection and seeds products, as well as crop-
focused solutions which integrate multiple technologies. R&D focuses on taking a holistic approach to help customers grow their specific crop
using the best technology to address their needs, be it a single technology, a combination of technologies, or technologies and services.
Syngenta is committed to improving crop yield and quality in a sustainable way and, through its global product safety group and global
regulatory team, is committed to developing and registering products that are safe and effective. Syngenta maximizes its innovation potential
by leveraging its industry expertise and partnering with other technology leaders across the globe.
The total spent on research and development was $1,777 million in 2024 and $1,770 million in 2023. This included $653 million (2023: $685
million) of internal product development costs that were capitalized.
For the attribution of research and development costs to reported operating segments, see Note 4 to the consolidated financial statements.
There are no off-balance sheet financing transactions associated with research and development activity.
Operating and Financial Review and Prospects
Financial Report 2024
11
Contractual obligations, commitments and contingent liabilities
At December 31, 2024 Syngenta had contractual obligations to make future payments in the periods indicated in the following:
($m)
Notes to the
consolidated
financial
statements
reference
Total
Less than
1 year
1–3 years
3–5 years
5–10 years
More than
10 years
Financial debt
16, 18
9,424
2,905
5,807
526
2
184
Interest on fixed rate financial debt
24
526
150
165
36
51
124
Other liabilities
75
15
58
2
‐
‐
Capital lease payments
18
1,368
134
216
128
178
712
Capital expenditures
19
153
110
43
‐
‐
‐
Pension contribution commitments
21
19
4
7
8
‐
‐
Unconditional purchase obligations
19
1,788
1,350
366
58
14
‐
Long-term research agreements and other long-term
commitments
19
149
74
51
14
10
‐
Total
13,502
4,742
6,713
772
255
1,020
Of the total financial debt, floating rate financial debt is $1,671 million (comprising local bank loans and overdraft facilities), of which $1,671
million is due within one year and $nil between one and three years. No interest obligation in respect of this debt is included in the table above.
There is no contractual obligation to renew this debt. The debt amount, and the interest payments associated with it, will vary over time
according to Syngenta’s funding requirements and future interest rates.
Fixed rate debt of $7,753 million is comprised primarily of the outstanding Eurobonds, Swiss franc domestic bonds, USD bonds and private
placement notes and term loans. Fixed rate interest payments of $526 million on these are included above.
Other liabilities arise from deferred payments related to acquisitions and license agreements.
Provisions for long-term liabilities totaling $475 million shown in Syngenta’s consolidated balance sheet have not been included in the above
table because the timing of their payment is not contractually fixed and cannot be estimated with sufficient certainty within the context of the
time periods in the table. This applies particularly to those amounts which are not expected to be paid during 2025. Note 19 to the
consolidated financial statements presents the components of the estimated $184 million of provisions that are expected to be paid during
2025.
The supply agreements for materials giving rise to the unconditional purchase obligations are entered into by Syngenta to ensure availability
of materials meeting the specifications required by Syngenta. Where suppliers have made significant capital investment, these agreements
generally provide for Syngenta to pay penalties in the event that it terminates the agreements before their expiry dates.
Pension contribution commitments totaling $19 million represent unconditional fixed payments to the UK pension fund according to the
revised schedule of contributions agreed in December 2024. Contributions for future service in the UK and Switzerland which are calculated
as a fixed percentage of employees’ pensionable pay are not included in the above table. The rules of the Swiss pension fund commit
Syngenta to contributing a fixed percentage of employees’ pensionable pay to the fund.
As disclosed in Note 21 to the consolidated financial statements, Syngenta expects to pay $82 million of contributions to its defined benefit
pension plans in 2025, excluding restructuring costs and excluding any accelerated payments which Syngenta may decide to make as
business and financial market conditions develop during 2025. $4 million of those contributions are included as commitments in the table
above. The remaining $78 million represents 2025 service contributions, which are not included as commitments in the table above.
The above table excludes income tax liabilities of $560 million in respect of uncertain tax positions. These are presented within current income
tax liabilities in the consolidated balance sheet because it is not possible to make a reasonably reliable estimate of the actual period of cash
settlement with the respective taxing authorities.
Off-balance sheet arrangements
Syngenta had no off-balance sheet arrangements as at December 31, 2024, other than the above contractual obligations, commitments and
contingent liabilities. Syngenta has no unconsolidated special purpose entities that are likely to create material contingent obligations.
Critical accounting estimates
Critical accounting estimates and new accounting pronouncements are discussed in Notes 2 and 26 to the consolidated financial statements.
Recent developments
See Note 27 to the consolidated financial statements for disclosure of events occurring between the balance sheet date and the date on
which the consolidated financial statements were approved by the Board of Directors. There were no events that would require adjustment to
the consolidated financial statements.
Trend and Outlook
Sales in 2024 were 12 percent lower than in 2023, 8 percent at constant exchange rates, with 2 percent from lower local currency sales prices
and 6 percent lower sales volumes. During 2024, commodity prices declined, reducing farmer profitability. With commodity prices for 2025 at
Operating and Financial Review and Prospects
Financial Report 2024
12
the levels at the date of this report, farmer income is expected to remain under pressure; this will constrain demand for high quality crop inputs
and may have an adverse impact on input prices. Crop Protection channel stock continued to reduce during 2024, resulting in sales below
farmer usage. This reduction is seen as substantially complete and sales of Crop Protection products are expected to be closer to the level of
usage in 2025. The increased supply capacity of generic crop protection products that came on stream in 2024 will continue to exert negative
pressure on the sales prices of older technology products in 2025. Severe disease pressure in corn in Argentina reduced sales of seeds
significantly in 2024; approximately half of the area impacted is expected to be recovered in 2025. Limitations on import of seeds to Russia
also had a significant impact on 2024 sales and it is not yet possible to determine what import restrictions will apply in 2025.
Declining input costs take time to impact Cost of goods due to supply lead times and inventory carry, but active ingredient costs in supplies
purchased in 2024 are expected to benefit Cost of goods and support gross profit margins in 2025. Function expenses are expected to
increase slightly in 2025 compared with 2024, due mainly to increased investment in research and development and continuing increases in
amortization of previously capitalized development costs as well as increased selling expenses from higher volumes, with productivity savings
offsetting the impact of inflation.
During 2024, Syngenta set up a Transformation Office to shape and implement strategic initiatives and enable productivity improvements
across the organization over a multi-year period. The programs are designed to streamline operations and enable Syngenta to adapt to
evolving market conditions. 2024 included restructuring and impairment charges while in 2025, restructuring costs currently are expected to
be less than $200 million.
Geopolitical tensions continue to introduce significant business uncertainty and heightened risk. USD exchange rates may prove volatile,
impacting our global revenue and cost structures. During the second half of 2024, USD short-term interest rates showed a decreasing trend,
but by the end of 2024, the outlook for 2025 interest rates was less clear.
Overall, Syngenta has significant currency exposures, which at a high level can be summarized as:
−
a short position against the US dollar in Swiss francs and British pounds;
−
a net short position in Euros, with Euro priced product costs and over the course of a full year, relatively minor compared with sales in
Euros, but with a long position in the first half selling season and a short position in the second half from more evenly spread Euro-based
operating costs including raw material costs;
−
a long position in Japanese yen, Australian and Canadian dollars and many emerging market currencies.
In Brazil and Argentina, a significant portion of sales are effectively priced in US dollars, resulting in a net short local currency exposure,
though the linkage is not absolute and there can be a time lag before local currency prices are adjusted. Syngenta has also acted to link local
currency pricing of sales in Russia and particularly Ukraine (both of which export grain to global markets) to US dollars to reduce the long
exposure to these currencies. The impact of both the continued military conflict in the Ukraine and related sanctions on Russia continues to
be unpredictable.
Forecast transaction exposures in the major currencies are hedged under a rolling 12-month program, largely through forward contracts.
Appendix A
Reconciliation of non-GAAP measures to equivalent GAAP measures
A non-GAAP measure is a numerical measure of financial performance, financial position or cash flows that either:
−
includes, or is subject to adjustments that have the effect of including, amounts that are excluded in the most directly comparable
measure calculated and presented under IFRS; or
−
excludes, or is subject to adjustments that have the effect of excluding, amounts that are included in the most directly comparable
measure calculated and presented under IFRS.
Syngenta uses non-GAAP measures in this report where they are regarded by management as important for the investor to fully understand
Syngenta’s performance. The non-GAAP measures presented in this report are measures adjusted for exchange rate movements and to
exclude restructuring gains and losses, impairment losses and divestment gains and losses. The Company presents these measures
because:
−
movements in exchange rates historically have had, and in the future are expected to have, a significant impact on sales and operating
income from period to period; and
−
restructuring and impairment charges historically have fluctuated, and in the future are expected to fluctuate, significantly from period to
period and thereby have a volatile impact on results.
Syngenta has been engaged in significant restructuring activities since its formation in 2000. The incidence of restructuring charges is periodic
and volatile, reflecting the timing of irrevocable commitments related to specific sites and operations. Therefore, the impact on reported
performance varies from period to period and there is limited continuity in the specific composition or size of such charges. Internal financial
reporting and management and employee incentive plans are substantially based on financial measures excluding the charges for
restructuring and impairment so that management is incentivized to deliver the benefits of the associated restructuring and not to achieve
short-term financial targets by deferring implementation of restructuring plans. Restructuring programs typically deliver benefits with a payback
over several years, similar to capital investments, and control over restructuring expenditures is performed on a similar project basis to that
applied with capital investments.
Syngenta presents non-GAAP measures on operating income before restructuring and impairment at both the segmental and Syngenta AG
group levels. Restructuring and impairment charges have had a material effect on operating income in the period covered by the review. In
the opinion of management, reporting operating performance excluding restructuring and impairment in addition to the GAAP measures
provides a more thorough understanding of business performance. Together with disclosure of the material elements within restructuring and
impairment and of the overall anticipated size and timeframe of restructuring programs, these measures may assist investors in forecasting
future operating performance.
Operating and Financial Review and Prospects
Financial Report 2024
13
Syngenta presents non-GAAP information on income before taxes excluding restructuring and impairment together with income tax expense
before restructuring and impairment to assist investors to calculate the Syngenta tax rate both including and excluding the impact of
restructuring and impairment charges. The tax rate on restructuring and impairment charges has been volatile and different from the tax rate
on income before taxes excluding restructuring and impairment, due in part to many categories of restructuring or impairment charges not
being deductible for tax purposes.
In addition to GAAP measures, Syngenta uses these measures excluding restructuring and impairment in internal reporting to management
and the Board of Directors, and these measures are used in the incentive plans for Syngenta management and other employees.
Restructuring and impairment charges have been incurred in all the periods covered by the review and are expected to continue to arise and
have a material effect on operating performance in future periods. Consequently, non-GAAP measures of operating income before
restructuring and impairment do not present a complete picture of operating performance and these measures should be seen only as
supplementary to the GAAP measures.
For improved clarity, the definitions of these non-GAAP measures and reconciliations of non-GAAP measures to the appropriate GAAP
measure are provided below. The tables below are included to show the reconciliation of the GAAP measures to the non-GAAP measures
used in the report and do not represent income statements prepared under IFRS.
2024 ($m)
Total
Restructuring
and impairment
Before
restructuring
and impairment
Operating income
1,431
(472)
1,903
Income from associates and joint ventures
‐
‐
‐
Financial expense, net
(737)
‐
(737)
Income before taxes
694
(472)
1,166
Income tax expense
(433)
68
(501)
Net income
261
(404)
665
Attributable to non-controlling interests
8
‐
8
Net income attributable to Syngenta AG shareholder
269
(404)
673
Tax rate
62%
14%
43%
2023 ($m)
Total
Restructuring and
impairment
Before
restructuring and
impairment
Operating income
2,563
(81)
2,644
Income from associates and joint ventures
8
‐
8
Financial expense, net
(1,142)
‐
(1,142)
Income before taxes
1,429
(81)
1,510
Income tax expense
(348)
21
(369)
Net income
1,081
(60)
1,141
Attributable to non-controlling interests
5
‐
5
Net income attributable to Syngenta AG shareholder
1,086
(60)
1,146
Tax rate
24%
26%
24%
2022 ($m)
Total
Restructuring and
impairment
Before
restructuring and
impairment
Operating income
2,850
(249)
3,099
Income from associates and joint ventures
5
‐
5
Financial expense, net
(613)
‐
(613)
Income before taxes
2,242
(249)
2,491
Income tax expense
(335)
37
(372)
Net income
1,907
(212)
2,119
Attributable to non-controlling interests
2
‐
2
Net income attributable to Syngenta AG shareholder
1,909
(212)
2,121
Tax rate
15%
15%
15%
Operating and Financial Review and Prospects
Financial Report 2024
14
2021 ($m)
Total
Restructuring and
impairment
Before
restructuring and
impairment
Operating income
2,128
(240)
2,368
Income from associates and joint ventures
‐
‐
‐
Financial expense, net
(440)
‐
(440)
Income before taxes
1,688
(240)
1,928
Income tax expense
(246)
40
(286)
Net income
1,442
(200)
1,642
Attributable to non-controlling interests
1
‐
1
Net income attributable to Syngenta AG shareholder
1,443
(200)
1,643
Tax rate
15%
17%
15%
2020 ($m)
Total
Restructuring and
impairment
Before
restructuring and
impairment
Operating income
2,107
(188)
2,295
Income from associates and joint ventures
‐
‐
‐
Financial expense, net
(497)
‐
(497)
Income before taxes
1,610
(188)
1,798
Income tax expense
(188)
48
(236)
Net income
1,422
(140)
1,562
Attributable to non-controlling interests
(1)
‐
(1)
Net income attributable to Syngenta AG shareholder
1,421
(140)
1,561
Tax rate
12%
26%
13%
Constant exchange rates
Syngenta compares results from one period to another period in this report using variances calculated at constant exchange rates (“CER”). To
present that information, current period results for entities reporting in currencies other than US dollars are converted into US dollars at the
prior period’s exchange rates, rather than the exchange rates for the current year. See Note 23 to the consolidated financial statements for
information on average exchange rates in 2024 and 2023. For example, if a European entity reporting in CHF sold CHF 100 million of
products in 2024 and 2023, Syngenta’s financial statements would report $114 million of revenues in 2024 (using 0.88 as the rate, which was
the average exchange rate in 2024) and $111 million in revenues in 2023 (using 0.90 as the rate, which was the average exchange rate in
2023). The CER presentation would translate the 2024 results using the 2023 exchange rates and indicate that underlying revenues were flat.
Syngenta presents this CER variance information in order to assess how its underlying business performed before taking into account
currency exchange fluctuations. Syngenta also presents its actual reported results in order to provide the most directly comparable data under
GAAP.
Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
15
Consolidated Income Statement
(for the years ended December 31, 2024 and 2023)
($m)
Notes
2024
2023
Sales
4, 5
16,981
19,196
Cost of goods sold
(10,887)
(12,312)
Gross profit
6,094
6,884
Marketing and distribution
(2,753)
(2,636)
Research and development
(1,124)
(1,085)
General and administrative:
Restructuring costs
6
(267)
(43)
Divestment gains
3, 6
73
‐
Other general and administrative
6
(592)
(557)
Operating income
1,431
2,563
Income from associates and joint ventures
‐
8
Finance income
25
177
111
Finance expense
25
(903)
(1,101)
Currency losses, net
(11)
(152)
Financial expense, net
(737)
(1,142)
Income before taxes
694
1,429
Income tax expense
7
(433)
(348)
Net income
261
1,081
Attributable to:
Syngenta AG shareholder
269
1,086
Non-controlling interests
(8)
(5)
Net income
261
1,081
The accompanying notes form an integral part of the consolidated financial statements.
Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
16
Consolidated Statement of Comprehensive Income
(for the years ended December 31, 2024 and 2023)
($m)
Notes
2024
2023
Net income
261
1,081
Components of other comprehensive income (OCI):
Losses on equity investments at fair value through OCI
25
(31)
‐
Remeasurement of defined benefit post-employment plans
14, 21
184
85
Income tax relating to items that will not be reclassified to profit or loss
7
(10)
7
Items that will not be reclassified to profit or loss
143
92
Losses on derivatives designated as cash flow and related hedging costs
24
(39)
(92)
Currency translation effects
(483)
(125)
Income tax relating to items that are or may be reclassified subsequently to profit or loss
7
(4)
20
Items that are or may be reclassified subsequently to profit or loss
(526)
(197)
Total OCI
(383)
(105)
Total comprehensive (loss)/income
(122)
976
Attributable to:
Syngenta AG shareholder
(111)
983
Non-controlling interests
(11)
(7)
Total comprehensive (loss)/income
(122)
976
The accompanying notes form an integral part of the consolidated financial statements.
In 2024, in respect of cash flow hedges, losses of $15 million (2023: $37 million) were recognized in OCI and gains of $24 million (2023: $55
million) were reclassified from OCI to profit or loss.
Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
17
Consolidated Balance Sheet
(at December 31, 2024 and 2023)
($m)
Notes
2024
2023
Assets
Current assets:
Cash and cash equivalents
25
1,025
1,639
Trade receivables
8, 25
4,897
5,393
Other accounts receivable
25
1,368
1,196
Inventories
10
6,288
7,976
Derivative and other financial assets
25
838
1,002
Other current assets
9
502
717
Income taxes recoverable
182
110
Total current assets
15,100
18,033
Non-current assets:
Property, plant and equipment
11
3,942
4,245
Right-of-use assets
22
751
670
Intangible assets
12
6,646
6,792
Deferred tax assets
7
1,620
1,834
Financial and other non-current assets
13, 25
1,230
898
Investments in associates and joint ventures
14
156
220
Total non-current assets
14,345
14,659
Total assets
29,445
32,692
Liabilities and equity
Current liabilities:
Trade accounts payable
15, 25
(5,654)
(5,929)
Contract liabilities
15
(969)
(939)
Current financial debt and other financial liabilities
16, 25
(3,490)
(5,977)
Income taxes payable
(739)
(735)
Other current liabilities
17, 25
(1,172)
(1,352)
Provisions
19
(184)
(216)
Total current liabilities
(12,208)
(15,148)
Non-current liabilities:
Financial debt and other non-current liabilities
18, 25
(8,165)
(8,319)
Deferred tax liabilities
7
(1,336)
(1,321)
Provisions
19
(475)
(538)
Total non-current liabilities
(9,976)
(10,178)
Total liabilities
(22,184)
(25,326)
Shareholder's equity:
Issued share capital
(6)
(6)
Retained earnings
(7,343)
(6,902)
Other reserves
103
(415)
Total shareholder's equity
(7,246)
(7,323)
Non-controlling interests
(15)
(43)
Total equity
(7,261)
(7,366)
Total liabilities and equity
(29,445)
(32,692)
The accompanying notes form an integral part of the consolidated financial statements.
Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
18
Consolidated Cash Flow Statement
(for the years ended December 31, 2024 and 2023)
($m)
Notes
2024
2023
Income before taxes
694
1,429
Reversal of non-cash and other reconciling items
20
1,984
2,098
Cash (paid)/received in respect of:
Interest received
97
116
Interest paid
(826)
(720)
Other financial receipts
204
47
Other financial payments
(551)
(781)
Income taxes
(445)
(399)
Restructuring costs
19
(96)
(37)
Contributions to pension plans, excluding restructuring costs
19
(153)
(146)
Other provisions
19
(166)
(34)
Operating cash flow before change in net working capital
742
1,573
Change in net working capital:
Change in inventories
1,000
1,054
Change in trade and other working capital assets
492
(244)
Change in trade and other working capital liabilities
337
(1,846)
Cash flow from operating activities
2,571
537
Additions to property, plant and equipment
11
(623)
(761)
Proceeds from disposals of property, plant and equipment
3
222
264
Purchases of intangible assets and capitalized development costs
12
(741)
(760)
Purchases of investments in associates and other financial assets
(24)
(688)
Proceeds from disposals of intangible and financial assets
267
37
Business acquisitions, net of cash acquired
3
(82)
(132)
Business divestments, net of cash divested
3
(75)
‐
Cash flow used for investing activities
(1,056)
(2,040)
Proceeds from increase in third party interest-bearing debt1
20
2,561
4,628
Repayments of third party interest-bearing debt1
20
(4,642)
(2,354)
Acquisition of non-controlling interests
‐
(7)
Distributions paid to shareholder
‐
(500)
Cash flow (used for)/from financing activities
(2,081)
1,767
Net effect of currency translation on cash and cash equivalents
(48)
(33)
Net change in cash and cash equivalents
(614)
231
Cash and cash equivalents at the beginning of the year
1,639
1,408
Cash and cash equivalents at the end of the year
1,025
1,639
1 Proceeds from increase in third party interest-bearing debt and Repayments of third party interest-bearing debt for 2023 have each been decreased by $345 million to present
short-term borrowing flows on a net basis when the financing is for the purpose of seasonal working capital
The accompanying notes form an integral part of the consolidated financial statements.
Of total cash and cash equivalents of $1,025 million (2023: $1,639 million), $90 million (2023: $69 million) is required to meet insurance
solvency requirements of Syngenta’s insurance subsidiaries. These amounts therefore were not readily available for the general purposes
of Syngenta. Other significant restrictions on Syngenta’s ability to use assets or settle liabilities are disclosed in Note 25. At December 31,
2024 cash equivalents totaled $580 million (2023: $1,008 million) and consisted of bank and money market fund deposits.
Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
19
Consolidated Statement of Changes in Equity
(for the years ended December 31, 2024 and 2023)
Attributable to Syngenta AG shareholder
($m)
Issued share
capital
Additional
paid-in
capital
Fair value
reserves
Cumulative
translation
adjustment
Retained
earnings
Total share-
holder's
equity
Non-
controlling
interests
Total equity
January 1, 2023
6
3,416
46
(2,860)
6,269
6,877
46
6,923
Net income
‐
‐
‐
‐
1,086
1,086
(5)
1,081
OCI
‐
‐
(72)
(123)
92
(103)
(2)
(105)
Total comprehensive income
‐
‐
(72)
(123)
1,178
983
(7)
976
Transactions with owner:
Distributions paid to shareholder
‐
‐
‐
‐
(500)
(500)
‐
(500)
Acquisition of non-controlling interest
‐
‐
‐
‐
(7)
(7)
‐
(7)
Reclassification on disposal of equity
investment
‐
‐
34
‐
(34)
‐
‐
‐
Other reclassifications
‐
‐
‐
‐
(4)
(4)
4
‐
Hedging gains and losses transferred to
cost of inventory
‐
‐
(26)
‐
‐
(26)
‐
(26)
December 31, 2023
6
3,416
(18)
(2,983)
6,902
7,323
43
7,366
Net income
‐
‐
‐
‐
269
269
(8)
261
OCI
‐
‐
(71)
(481)
172
(380)
(3)
(383)
Total comprehensive loss
‐
‐
(71)
(481)
441
(111)
(11)
(122)
Divestment of non-controlling interest
‐
‐
‐
‐
‐
‐
(17)
(17)
Hedging gains and losses transferred to
cost of inventory
‐
‐
34
‐
‐
34
‐
34
December 31, 2024
6
3,416
(55)
(3,464)
7,343
7,246
15
7,261
The accompanying notes form an integral part of the consolidated financial statements.
Additional paid-in capital, Fair value reserves and Cumulative translation adjustment are presented combined as Other reserves on the
consolidated balance sheet.
The amount available for dividend distribution is based on Syngenta AG’s shareholder’s equity determined in accordance with the legal
provisions of the Swiss Code of Obligations. No dividend was declared or paid in 2024. On November 28, 2023, a dividend of $500 million
($5.40 per share) was declared. This was paid to Syngenta’s parent company, Syngenta Group (NL) B.V. on December 20, 2023.
Following a share transfer on December 28, 2023, Syngenta AG’s parent company became Syngenta Group (HK) Investment Co. Ltd.
There were 92,578,149 ordinary shares of par value CHF 0.10 that were authorized, issued, fully paid and outstanding at December 31, 2024
and 2023. Each ordinary share carries one vote at the shareholder’s meetings of Syngenta AG.
Included within the fair value reserves are (i) cash flow hedge reserves, which comprise the effective portion of the cumulative net change in
the fair value of cash flow hedging instruments related to hedged items that have not yet been recognized in profit or loss, and (ii) fair value
reserves, which comprise the cumulative net change in the fair value of equity investments at fair value through OCI. Movements in the cash
flow hedge reserves are shown in Note 24 and movements in the fair value reserves for equity investments are shown in Note 25. Amounts
within OCI related to remeasurement of defined benefit post-employment plans are presented within retained earnings. The tax impact of
these movements is presented in Note 7.
The cumulative translation adjustment comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations, as well as from the translation of long-term monetary items that are part of net investments in foreign subsidiaries.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
20
1. Basis of preparation of the consolidated financial statements
These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards (IFRS or IFRSs) as issued by
the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared on a historical cost basis,
except for items that are required by IFRSs to be measured at fair value, principally certain financial instruments, which are valued at fair value
less costs to sell.
The consolidated financial statements incorporate the financial statements of Syngenta AG, a company domiciled and incorporated
in Switzerland, and all of its more than 150 subsidiaries globally (together referred to as “the Syngenta AG group” or “Syngenta”) and the
Syngenta AG group’s interests in associates and joint ventures. Approximately 40 subsidiaries are considered to be significant legal entities.
There are no material non-controlling interests and no material structured entities. The Syngenta AG group’s main research and development
facilities are located in Switzerland, UK and USA and its main production sites are in Switzerland, UK, USA, France, China and Brazil.
Syngenta AG’s principal executive offices are at Rosentalstrasse 67, 4002 Basel, Switzerland.
The parent of Syngenta AG as of December 31, 2024 is Syngenta Group (HK) Investment Co Ltd., a private company incorporated in Hong
Kong. The ultimate parent of Syngenta AG is Sinochem Holdings Co. Ltd. (Sinochem Holdings), a state-owned enterprise incorporated under
the laws of China, under the supervision of the State-owned Assets Supervision and Administrative Commission of the State Council
(SASAC) of the People’s Republic of China.
The consolidated financial statements are presented in United States dollars (“$”) as this is the major currency in which revenues are
denominated. “$m” refers to millions of United States dollars. The functional currency of Syngenta AG is the United States dollar, which is the
main currency in which its funding, receipts and payments are denominated.
The Syngenta AG group is a world leading agribusiness operating in the crop protection, seeds, professional solutions and flowers markets.
Crop protection includes chemicals such as herbicides, insecticides, fungicides and seed treatments to control weeds, insects and diseases in
crops, as well as biological products, and are essential inputs enabling growers around the world to improve agricultural productivity and food
quality. In Seeds, the Syngenta AG group operates in the high value commercial sectors of field crops (including corn, oilseeds and cereals)
and vegetables. The Professional solutions business provides turf and landscape and professional pest management products, and the
Flowers business provides flower seeds, cuttings and young plants, to professional growers and consumers.
The preparation of financial statements requires management to exercise judgment when applying accounting policies and to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimated. Note 2 below includes further discussion of certain critical accounting estimates.
2. Material accounting policy changes, judgments and estimates
This note describes the impact on Syngenta’s consolidated financial statements of material accounting judgments made when applying IFRSs
and critical assumptions and accounting estimates.
Application of critical accounting policies
Royalty and license income
Individual agreements licensing to third parties the right to use Syngenta technology can and do have unique terms and, consequently, the
accounting judgments required to apply IFRS 15 to each such agreement can differ significantly. Syngenta recognizes revenue for non-
refundable lump sum and guaranteed minimum license income at the start of a license only when the license is distinct from any related
Syngenta obligations to supply licensed products during the license term and Syngenta has performed any obligations related to the license
grant. For licenses of seed germplasm and trait technology, Syngenta considers that these criteria are met when the license has become
effective, the licensee either has control of biological material from which it can independently breed, produce and sell seeds containing the
technology Syngenta has licensed to it under the agreement or can obtain any seed purchase requirements in the market from producers
other than Syngenta. For licenses of crop protection technology, Syngenta considers that these criteria are met when the license grants the
right to manufacture and sell chemical products containing the licensed technology, the right to obtain related manufacturing and formulation
know-how and the right to use existing regulatory data necessary for the licensee to establish its own independent registration to sell the
licensed products.
Research and development expense
Research costs are expensed as incurred. Costs arising from internal product development projects are recognized as intangible assets if,
and only if, Syngenta is able to, has sufficient resources to and intends to complete and use or sell the technology or product being developed,
and such completion and use or sale is technically feasible and commercially viable.
Costs of projects to develop new crop protection chemical active ingredients that have not yet obtained regulatory approval are expensed as
incurred because their technical feasibility and commercial viability cannot be demonstrated until such approval has been obtained. Costs of
projects to develop new formulations or extend the use of existing formulations of active ingredients that have regulatory approval, or widen
product label indications of existing products already on the market to include additional uses of such products, are capitalized as intangible
assets throughout the duration of the projects, which is approximately 3 to 5 years, and are amortized over the useful economic lives of the
related new products, starting from the date they are ready for use or sale. Useful economic lives are disclosed under ‘Intangible Assets’ in
Note 26. Costs capitalized for a project are immediately and fully impaired if the project is discontinued before completion. Costs of projects to
re-register active ingredients with existing approvals are expensed as incurred because such projects are considered to maintain existing
intangible assets rather than create new ones.
Costs of seed breeding programs that include genetically modified traits that require regulatory approval are expensed as incurred because
their technical feasibility and commercial viability cannot be demonstrated until such approval has been obtained. Costs relating to
deregulated genetically modified traits and conventional seed breeding programs are capitalized starting from the breeding stage in which
new seed hybrids or varieties are identified as potential candidates for commercialization until the launch of the output of the related breeding
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
21
program, which is approximately 7 years. Breeding costs are recorded by crop, region and, for amortization purposes, by breeding program
year. Capitalized costs are impaired before completion of breeding if product launches are no longer expected as a result of major changes to
Syngenta’s seed crop portfolio. Costs capitalized for a breeding year are amortized over the average commercial life of a new seed product,
as disclosed in Note 26, starting from launch.
Impairment
For purposes of testing goodwill for impairment, goodwill is allocated to cash generating units (CGUs). Syngenta generally defines each crop
protection product active ingredient and each seed crop as a CGU. However, where one active ingredient is sold in mixture with other active
ingredients to a significant extent, the active ingredients concerned are grouped together into a single CGU because independent cash inflows
only exist at this higher level. Each CGU is generally defined on a global basis, reflecting the international nature of the business, and contains
tangible assets such as property, plant and equipment (PP&E) as well as intangible assets such as product and patent rights and capitalized
development costs.
North America corn and soybean seeds are defined as a single CGU because of common intellectual property and other interdependencies
between these two crops, which do not apply to other crops. Rest of world corn and soybean is also grouped as a single CGU because of
common intellectual property and other interdependencies; however, these are distinct from the North American market and as such this CGU
generates its own cash inflows that are independent of the North America corn and soybean seed CGU. Goodwill arising on business
acquisitions that provide economic benefits to multiple operating segments, is allocated to each segment in proportion to each such segment’s
relative value at the time Syngenta established its current basis of segmentation, and is tested for impairment at those levels by relating the
allocated amount for each segment to the total cash flows of the respective segment. The goodwill amounts allocated to segments and
significant other CGUs are disclosed in Note 12.
For CGUs to which no goodwill is allocated, a reduction in latest forecasts of current year gross profit compared with the current year budget,
is generally considered an indicator of market-related impairment and results in the performance of detailed impairment tests. Syngenta also
performs detailed impairment tests when there are asset specific indicators of impairment such as withdrawal of or restrictions placed upon
product registrations, plans to divest products or, for property, plant and equipment, plans to restructure or close a site.
Syngenta performs the full annual impairment assessment on September 30 each year. At the end of each reporting period, Syngenta re-
assesses whether there is any indication that an asset may be impaired.
If a CGU becomes impaired, the impairment loss is allocated first to any goodwill in the CGU, and then to reduce the CGU’s other assets
pro rata.
Critical accounting estimates
Acquisition accounting
Applying the acquisition method of accounting requires significant management judgment to estimate the fair values and useful lives of the
acquired assets, in particular intangible assets such as intellectual property (IP) related to currently marketed products and in-process
research and development (IPR&D). In 2024, Syngenta recognized new intangible assets, excluding goodwill, of $112 million (2023: $19
million) resulting from acquisitions. These acquisitions and the fair values recognized for the acquired intangible assets are set out in Note 3.
Key valuation assumptions include market size and share, sales pricing trends and competitors’ reaction, cost and efficiency of the production
process for the products, and the period over which the products are likely to generate economic benefits. Forecast cash flows for each asset
are discounted using a rate developed from the estimated Weighted Average Cost of Capital (WACC) of the acquired company. Where
Syngenta considers the risks applicable to an asset are not fully reflected in the forecast data available, it incorporates a risk premium into the
discount rate. If actual cash flows are materially different from those used in calculating fair values, this may lead to changes in amortization
expense or asset specific impairment losses in future periods.
Adjustments to revenue and trade receivables
Syngenta’s products are consumed mainly by growers, but Syngenta invoices the majority of its sales to distributors. The timing and amount
of cash inflows received by growers is impacted by a broad range of economic and political risks, including crop yields and prices, the
availability of credit, and the cost of agricultural inputs such as the products sold by Syngenta and its competitors. The cash flows of
distributors that supply Syngenta’s products to growers and represent the majority of Syngenta’s customers are also impacted by these
factors. These distributors vary in size and nature from large publicly owned entities to small or medium sized owner-managed businesses.
Syngenta’s customer base reflects the geographical diversity of its operations, which encompass more than 90 countries and all significant
agriculture areas. Considerable management effort and judgment is applied to actively manage and mitigate the risks to Syngenta from these
factors and to determine the accounting estimates associated with them, which are set out below:
−
the estimated cost of incentive programs that provide rebates and discounts is dependent upon achievement of sales targets, as well as
cash discounts for punctual payment of accounts receivable. Syngenta records the estimated cost of these programs when the related
sales are made, based on the programs’ terms, market conditions and historical experience. At December 31, 2024, trade accounts
payable include $2,288 million (2023: $2,456 million) of accruals for customer rebates and incentive programs.
−
commercial terms in certain markets also provide a right of return, subject to eligibility restrictions by product and either an annual cap
equal to a percentage of sales in the immediately prior year, or a return period typically extending up to the end of the agricultural season
in which the product was originally sold, which can be 9 months. Accruals for estimated product returns are based on contractual sales
terms and on historical experience of actual returns where Syngenta considers these to be reliable estimates of future returns. In
accordance with IFRS 15, sales subject to returns are recognized only to the extent that it is highly probable that a significant reversal in
the amount of revenue recognized will not occur when the uncertainty associated with the amount of returns is subsequently resolved.
At December 31, 2024, trade accounts payable includes $299 million (2023: $361 million) of accruals for sales returns. Actual returns
can vary significantly from estimates in market segments where the distribution channel holds several months’ sales of Syngenta
products at the reporting date; forecast consumption of those products by growers could be materially affected if market or weather
conditions after the reporting date were significantly different from those expected and the volume of products returned by distributors
varies with changes in grower consumption. This is especially relevant to Brazil and certain other markets in the southern hemisphere
given Syngenta’s financial reporting year-end falls in the middle of the peak demand season for Syngenta’s crop protection products.
Actual sales returns in 2023 in Brazil of crop protection products Syngenta sold during 2022 were $258 million, representing 8 percent of
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
22
relevant sales. This was aligned to the $262 million provided at December 31, 2022. Actual sales returns in 2024 in Brazil of crop
protection products Syngenta sold during 2023 were $131 million, representing 4 percent of relevant sales. This was aligned to the $143
million provided at December 31, 2023. At December 31, 2024, Syngenta has recorded a $115 million allowance for sales returns of
crop protection products in Brazil, representing 5 percent of relevant sales in 2024. Syngenta expects similar levels of sales returns in
2025 compared to 2024 mainly driven by continuous effort to manage the level of inventory held at distributors and retailers.
−
during 2023, Syngenta experienced high levels of returns in its field crop seeds business in Brazil. Actual sales returns in 2023 were
$111 million, representing 19 percent of the relevant sales. This is higher than the $21 million provided at December 31, 2022. The main
cause of the significantly higher returns during 2023 was insufficient visibility of in-channel inventory and a shortfall in competitive
germplasm that met customer needs due to challenging production conditions. During 2024, Syngenta experienced significantly lower
levels of returns in its field crop seeds business in Brazil driven by improved planning and production processes. Actual sales returns in
2024 were $13 million, representing 4 percent of the relevant sales. This was aligned to the $15 million provided at December 31, 2023.
At December 31, 2024, Syngenta has recorded a $9 million allowance for sales returns for the field crop seeds business in Brazil,
representing 3 percent of relevant sales in 2024.
−
allowances for doubtful receivables, which are estimated by critically analyzing individual receivable account balances, taking into
account historical levels of recovery and the value of any security held or agreed barter programs which mitigate credit exposure, the
economic condition of individual customers, and the overall economic and political environment in relevant countries. As shown in Note
8, the provision for doubtful receivables at December 31, 2024 amounted to $595 million, or 11 percent (2023: $587 million or
10 percent) of total trade receivables, of which $374 million, (2023: $368 million) related to sales made in Brazil, Ukraine, Russia,
Argentina and Venezuela in current and prior years. In 2024, Syngenta reported $118 million bad debt expense (2023: $30 million credit
to income). The increase in 2024 mainly relates to adverse weather conditions in Brazil and a significant pest impact on the corn harvest
in Argentina impacting farmer liquidity. In 2023, bad debt provisions recognized in 2022 in Ukraine and Russia for the estimated impacts
of the conflict, as well as in Africa and Middle East region due to an uncertain economic environment, were partially released due to
better visibility of those impacts on business performance.
Syngenta records these estimates as separate allowances, but its estimation process recognizes their interdependency, as the level of credits
to accounts receivable for discounts and product returns may affect the probability of receiving full payment of the net receivable balances.
Income Taxes
Deferred tax assets
At December 31, 2024, Syngenta’s deferred tax assets are $1,620 million (2023: $1,834 million), as further analyzed in Note 7. Included in
this balance are deferred tax assets for unused tax losses and tax credits of $105 million (2023: $52 million), of which $88 million (2023: $30
million) relates to tax losses. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during
the periods in which those temporary differences become deductible or in which tax losses can be utilized. The tax effect of unused tax losses
is recognized as a deferred tax asset when it becomes probable that the tax losses will be utilized. In making assessments regarding deferred
tax assets, management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning
strategies.
At December 31, 2024, based upon the level of historical taxable income and projections for future taxable income over the periods in which
deferred tax assets are deductible, management believes that it is more likely than not that Syngenta will realize the benefits of these
deductible differences. The amount of deferred tax assets considered realizable could however be reduced in subsequent years if estimates
of future taxable income during their carry forward periods are reduced, or rulings by the tax authorities are unfavorable. Estimates are
therefore subject to change due to both market-related and government-related uncertainties, as well as Syngenta’s own future decisions on
restructuring and other matters. Syngenta is unable to accurately quantify the future adjustments to deferred income tax expense that may
occur as a result of these uncertainties.
The principal jurisdictions where deferred tax assets have not been fully recognized at December 31, 2024 are Switzerland, Argentina and
Brazil (2023: Brazil and Argentina).
Uncertain tax positions
Syngenta estimates and accrues taxes that will ultimately be payable when reviews or audits by tax authorities of tax returns are completed.
These estimates include significant management judgments about the eventual outcome of the reviews and audits of all open years based
on the latest information available about the positions expected to be taken by each tax authority. Actual outcomes and settlements may differ
significantly from the estimates recorded in these consolidated financial statements. This may affect income tax expense reported in future
years’ consolidated income statements.
Syngenta has a global supply chain, and intellectual property rights owned by Syngenta are used internationally within the Syngenta AG
group. Transfer prices for the delivery of goods and charges for the provision of services, which include contract research and development,
contract manufacturing and internal financing arrangements, by one Syngenta subsidiary to another may be subject to challenge by the
national tax authorities in any of the jurisdictions in which Syngenta operates. Syngenta has a global transfer pricing policy in place and
applies, to the maximum extent possible, a consistent methodology on a global basis. Transfer pricing determination in general, and the
benchmarking process in particular, involve significant judgment and therefore a certain level of uncertainty remains as to whether tax
authorities will challenge the pricing applied according to the applicable complex and judgmental transfer pricing regulations.
At December 31, 2024, Syngenta’s balance sheet includes assets of $182 million (2023: $110 million), and liabilities of $739 million (2023:
$735 million), for current income taxes. These liabilities include $560 million in respect of the uncertain tax positions described above (2023:
$501 million).
Significant management judgment has been required to estimate the income tax benefits associated with Viptera litigation settlements
recognized in 2017 and 2023 (reported in Note 19) because the Syngenta entities named as parties to the litigation are incorporated in
different tax jurisdictions. Syngenta’s estimates at December 31, 2024 and 2023 assume that all of the Viptera settlement costs will be
deductible for income taxes but that deductions will be claimed in more than one jurisdiction. Syngenta estimated the benefit using an average
of the tax rates of the relevant jurisdictions and the amounts it has recorded in 2024 and 2023 for both current and deferred income taxes
reflect this estimate. The ultimate benefit realized may be different from this estimate and this difference may have a material effect on
Syngenta’s income tax expense for 2025 and/or future periods.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
23
In Brazil, Syngenta received adverse rulings at administrative court level in transfer pricing disputes for fiscal years 2003 and 2011 and has
filed appeals at civil court level. Additionally, Syngenta has appealed at administrative level against transfer pricing assessments for fiscal
years 2013 to 2015 and won at various appeal levels cancelling those assessments thus reducing the overall exposure in 2024. In 2021
Syngenta received a transfer pricing assessment for 2016 and filed an appeal at administrative court level requiring the cancellation of this
assessment. Syngenta believes it will succeed and has recognized no liability for the estimated aggregate $162 million (2023: $285 million)
contingent liabilities in these disputes.
OECD Pillar Two Top-Up Tax
In December 2023, the Swiss government decided to partially implement Pillar Two by introducing a Qualified Domestic Minimum Top-up Tax
(“QDMTT”) to reach the required taxation level of 15 percent on Pillar Two qualifying profits earned by companies domiciled in Switzerland
effective from January 1, 2024.
Switzerland has implemented the Income Inclusion Rule (IIR) effective from January 1, 2025 onwards and therefore profits earned by
subsidiaries domiciled in tax jurisdictions outside of Switzerland would be subject to an OECD Pillar Two top up tax if either a local QDMTT or
an IIR at a lower subsidiary level is effective for 2024. Where such minimum tax rules are in place, they should raise local tax obligations to the
15 percent minimum rate. Syngenta has assessed these additional tax obligations based on the available information.
For the countries in which Syngenta operates and which have enacted a local QDMTT and an IIR, Syngenta has performed a calculation of
the Transitional Safe Harbour rule. For most jurisdictions Syngenta is benefitting from the Transitional Safe Harbour rule. For the remaining
jurisdictions, the respective QDMTT or IRR are immaterial. Given Syngenta‘s ultimate parent company has not finalized its global analysis of
OECD Pillar Two, and the interpretation and adoption of such rules are subject to change globally, uncertainty exists as to the ultimate amount
of OECD Pillar Two liabilities of Syngenta for 2024.
IAS 12 has been amended to clarify that the standard applies to income taxes arising from tax law enacted or substantively enacted to
implement the Pillar Two model rules published by the OECD. Syngenta applies the mandatory exception to recognizing and disclosing
information about deferred tax assets and liabilities related to Pillar Two income taxes.
Seeds inventory valuation and allowances
Inventories of $6,288 million (2023: $7,976 million) reported in Note 10 include $1,565 million (2023: $1,792 million) of seeds, which are
subject to the risk of loss through physical deterioration at all stages of the operating cycle. Syngenta accounts for normal losses that occur
during production, both in the pre-harvest growing and the post-harvest processing stages, as part of the cost of inventories of in-process and
finished seeds. Normal losses in production, which include the cost of seeds discarded before processing because they do not meet
Syngenta’s quality standards, are therefore expensed when the related finished seed is sold to customers. Losses of finished seeds are
expensed as incurred. Syngenta records allowances against the cost of seeds inventories for both quality and obsolescence. Syngenta
records allowances for quality for finished seed which is currently of defective quality and for finished seed which is expected to deteriorate
physically before sale, based on past experience. Syngenta records allowances for obsolescence for excess seed for which there is
insufficient forecast customer demand over the expected remaining commercial life of each seed variety. For excess seeds that Syngenta is
likely to be able to sell in the commodity market, the allowance is the cost of the seed minus its net realizable value, which is estimated as the
expected net proceeds of commodity sale. If commodity sale is not probable, the allowance is the full cost of the excess seed inventories.
To determine the allowances required, management effort and judgment is applied to analyze at crop, variety and batch level seed inventory
quantity, quality and forecast sales data, developing commercial practices, available markets and the speed of expected product portfolio
changes. The rapidly evolving combination of corn seed genetics and trait stacks in North America and Latin America result in shorter
commercial lives of a typical hybrid seed variety than in other crops and regions, with variation between actual and previously forecast sales
and consequent greater risk of excess seed at individual hybrid level. Excess seed quantities are also affected by harvest yield, which is
influenced by unpredictable weather and growing conditions. Seeds inventory allowance expense for 2024 was $196 million (2023: $299
million), with the decreased provision expense driven largely by reductions in uncertainties in Ukraine regarding the impact of the conflict with
Russia and lower returns in Brazil. The allowance balance at December 31, 2024 was $457 million (2023: $492 million), reflecting the
decrease in total seeds inventory driven by lower production volumes across almost all regions.
Impairment review
At December 31, 2024, Syngenta has reported intangible assets of $2,438 million (2023: $2,571 million) for goodwill and $4,208 million (2023:
$4,221 million) for intangible assets other than goodwill, as reported in Note 12. The recoverable amount for goodwill has been determined
based on the value-in-use of the relevant operating segment, CGU or group of CGUs to which the goodwill is allocated. The recoverable
amounts of all material intangible assets and property, plant and equipment (PP&E) have also been assessed for indicators of impairment.
The main assumptions used in determining the recoverable amounts for operating segments and other CGUs include market size and
Syngenta’s market share, future sales prices and volumes, future development expenditures required to maintain products’ marketability and
registration in the relevant jurisdictions, and products’ lives. At operating segment level, the key assumptions related to sales volume and
value are expressed separately for each product line, market segment and crop. At CGU level, assumptions are expressed by product. The
assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These assumptions can be subject to
significant adjustments from such factors as changes in crop growing patterns in major markets (for example, as a result of movements in
crop prices), changes in product registration, or pressure from competitor products.
Key assumptions used in value-in-use calculations as at September 30
2024
2023
Period of cashflow
projections
Terminal
growth rates (%)
Period of cashflow
projections
Terminal
growth rates (%)
Crop Core
4 years
2.0
4 years
2.0
Professional Solutions
4 years
2.0
4 years
2.0
Field Crops
9 to 14 years
2.0 to 4.0
9 to 14 years
2.0 to 4.0
Flowers
9 years
2.0
9 years
2.0
Vegetables
9 years
3.0
9 years
3.0
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
24
For assessing value-in-use, estimated cash flows for operating segments and other CGUs were based on Syngenta´s management forecasts
and other key assumptions as follows:
−
For CGUs relating to Syngenta’s seeds business a nine-year forecast horizon was used for the majority of CGUs, with a portion of one
CGU using a fourteen-year forecast horizon. The Seeds CGUs’ longer forecast horizon and higher long-term growth rates are
considered to better reflect these higher-growth business streams and the length of the product development cycle for the development
and introduction of new products in these business streams which are in excess of four years.
−
The discount rate is determined from a capital asset pricing model using data from capital markets, including market yields on 30-year
US government bonds. The post-tax weighted average cost of capital considered in the annual impairment assessment as of
September 30, 2024 was 7.6 percent (2023: 8.0 percent). The updated post-tax weighted average cost of capital as of December 31,
2024 was 8.1 percent (2023: 7.2 percent). The discount rate includes market estimates of the industry sector risk premium.
−
The pre-tax discount rates used for all segments, CGUs and groups of CGUs ranged from 8.2 percent to 17.8 percent (2023: 8.5
percent to 10.0 percent), with the increase in the upper range primarily being driven by increases in the risk-free-rate as a result of global
inflationary pressures.
At December 31, 2024 and 2023, the largest amounts of goodwill were allocated to the following CGUs, for which the key inputs used in
value-in use calculations in the annual impairment assessment as at September 30, 2024 and 2023 are as follows:
2024
2023
Goodwill
($m)
Pre-tax
discount rate (%)
Terminal
growth rates (%)
Goodwill
($m)
Pre-tax
discount rate
(%)
Terminal
growth rates
(%)
Crop Core
1,412
9.0
2.0
1,313
9.4
2.0
North America corn and soybean seed
316
8.8
2.6
316
9.1
2.6
Rest of world (excluding North America)
corn and soybean seed
408
8.7
2.5
467
9.0
2.5
The use of a nine-year forecast horizon (fourteen-year for a portion of one seeds CGU) for CGUs relating to Syngenta’s seeds business
exposes the recoverability of the GGUs to additional risk from changes in assumptions. The recoverability is most sensitive to changes in the
discount rate. As at September 30, 2024, the estimated recoverable amount of the Field Crops operating segment, which includes several
seeds CGUs, exceeded its carrying amount by approximately $199 million (2023: $1,909 million). The pre-tax discount rate applied to this
operating segment was 8.6 percent (2023: 8.9 percent) and would need to increase to 8.7 percent (2023: 10.6 percent) for the estimated
recoverable amount to be equal to the carrying amount. The estimated recoverable amount of the Field Crops operating segment was
reassessed as of December 31, 2024 as a result of the Seeds Field Crops transformation plan. The updated recoverable amount exceeded
its carrying amount by approximately $2,740 million based on the updated pre-tax discount rate of 9.3 percent. Management believes that any
other reasonably possible change in key assumptions described above would not cause the aggregate carrying amount of the CGUs to
exceed their recoverable amounts.
For the year ended December 31, 2024, impairment losses for intangible assets were $236 million, of which $99 million relate to the Flowers
CGU as the carrying amount of this CGU was determined to be higher than its recoverable amount of $95 million. These charges, recognized
in other general and administrative expenses, included $14 million related to the impairment of goodwill, $68 million to capitalized
development costs and $17 million to products rights, trademarks and other intangibles. The Flowers business performance is currently being
affected by reduced market demand in all regions. The forecast used for the impairment review reflects the current and expected future
business environment and has been adjusted downwards compared to the previous projections, which has a significant impact on the
calculated recoverable amount of the CGU. As at September 30, 2024 the pre-tax discount rate applied to this CGU was 8.6 percent (2023:
9.1 percent). The updated pre-tax discount rate applied to this CGU as of December 31, 2024 was 9.1 percent (2023: 9.1 percent).
Impairment losses of $77 million were recognized for development projects and $6 million related to other intangibles in the Field Crops CGU,
recorded as a result of the Seeds Field Crops transformation plan. This impairment reflects strategic decisions to exit certain geographies and
crops. Impairment losses for development projects totaling $50 million were also recognized in the Crop Core CGU where further
development of certain technologies held by Syngenta was not considered to be cost effective and activities had been suspended. As at
September 30, 2024, the recoverable amount of this CGU was $36,715 million.
For the year ended December 31, 2023, impairment losses for intangible assets were $41 million, all of which related to the Crop Core CGU
where further development of certain technologies held by Syngenta was not considered cost effective and activities had been suspended. As
at September 30, 2023, the recoverable amount of this CGU was $39,433 million.
For the year ended December 31, 2024, impairment losses for property, plant and equipment were $45 million (2023: $3 million), of which $33
million relate to the impairment of Flowers CGU assets and $12 million of other impairments where asset values are not supported by future
business plans.
Environmental provisions
At December 31, 2024, Syngenta reported in Note 19 provisions for environmental remediation of $138 million (2023: $156 million), some of
which are included within restructuring provisions. Remediation of environmental damage at sites with which Syngenta is associated typically
takes a long time to complete due to the substantial amount of planning and regulatory approvals normally required before remediation
activities can begin. The assumptions used by Syngenta to estimate its environmental provisions may change significantly before or during
the remediation period due to changes in the extent of remediation required or the method used to remediate the damage. In addition,
increases in or releases of environmental provisions may be necessary whenever new developments occur or additional information becomes
available. The major uncertainties that impact the outcome of remediation are:
−
the extent of the contaminated land area, which is not always limited to land occupied by the Syngenta site. Ongoing monitoring or
remediation work may identify changes in the area believed to be contaminated;
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
25
−
the nature of the work Syngenta will be obliged to perform or pay for. This depends upon the current or proposed use of contaminated
land, substantively enacted legislation, and land zoning by and negotiation with the relevant regulatory authorities. In Switzerland,
proposed remediation plans at certain sites may be subject to public referenda;
−
sharing of costs with other past and present occupiers of Syngenta’s sites. At certain shared sites, Syngenta is responsible for an
agreed proportion of remediation costs, which may change following discussions with authorities and the affected third parties. At other
sites, third parties have agreed to reimburse Syngenta for some or all of the costs it incurs.
Consequently, environmental provisions can change significantly. Because of the inherent uncertainties in estimating such long-term future
obligations, Syngenta periodically supplements its internal expertise with external expertise when determining environmental provisions.
In 2024, $2 million of additional environmental provisions were recognized due to updated estimates of costs for remediation activity (2023:
$10 million of environmental provisions were released) and a further $4 million of environmental provisions were recognized in relation to a
third party contractor’s facility experiencing extensive operational and regulatory issues where regulators have required companies who used
the facility to share the costs of remedial action (2023: $10 million). Syngenta has a 16 percent share of these costs. Otherwise, in 2024 and
2023, except for $18 million (2023: $13 million) of cash outflows reflecting remediation activity, there were no significant changes to
environmental provisions.
Proposals have been made suggesting remediation of the existing contamination on certain shared sites in preference to monitoring and
containment. Syngenta will negotiate the proposals with the relevant authorities but the final adopted solution is subject to regulatory
uncertainty and the ultimate liability may be higher or lower than the amount provided. Taken together, the provisions at December 31, 2024,
for these shared sites comprise approximately 27 percent of total environmental provisions. The top ten exposures at the end of 2024
comprise approximately 85 percent of the total environmental provisions. In the opinion of management, reasonably possible increases in the
provisions related to these top 10 exposures would not exceed approximately 150 percent of the total environmental provision recognized at
December 31, 2024.
Defined post-employment benefits
At December 31, 2024, Syngenta has reported other non-current assets of $468 million (2023: $246 million) and provisions of $154 million
(2023: $171 million) as net defined benefit (DB) pension assets and liabilities, respectively, as set out in Note 21. These amounts may change
significantly from one accounting period end to another due not only to expense recognized in profit and loss and cash payments, but also to
changes in the actuarial assumptions used to measure the defined benefit obligation (DBO) and to variances between those assumptions and
actual outcomes (“experience variances”), both of which are recognized in OCI. Significant judgment is required when selecting key
assumptions for measuring post-employment benefit expense for a period and the DBO at the period end for each defined benefit plan. The
specific assumptions used and experience variances are disclosed in Note 21. These variances were caused principally by external financial
market movements in corporate bond yields used to benchmark the discount rate, and in asset prices affecting the actual return on assets.
These factors are outside Syngenta’s direct control, and it is reasonably possible that future variances will be at least as great as past
variances.
At December 31, 2024 and 2023, for each of Syngenta’s three largest defined benefit pension plans, the sensitivity of the DBO to a change in
each significant actuarial assumption is as follows:
($m)
2024
2023
Increase (decrease) in DBO
Switzerland
UK
USA
Switzerland
UK
USA
Discount rate – 25 basis point decrease in rate
91
38
11
91
53
12
Discount rate – 25 basis point increase in rate
(86)
(37)
(10)
(86)
(50)
(11)
Pension increase – 25 basis point increase in rate
n/a
35
n/a
n/a
48
n/a
Pension increase – 25 basis point decrease in rate
n/a
(34)
n/a
n/a
(47)
n/a
Interest credit rate – 25 basis point increase in rate
20
n/a
n/a
20
n/a
n/a
Interest credit rate – 25 basis point decrease in rate
(19)
n/a
n/a
(18)
n/a
n/a
Life expectancy1
73
51
5
70
54
6
1 The life expectancy sensitivity is calculated using the difference between the reported DBO amount and the DBO amount projected using a one-year increase, compared with the
assumptions actually used, in the life expectancy for each plan member. This alternative projection is calculated using mortality rates that produce an immediate increase of one
year for a plan member at normal retirement date, with corresponding changes at other ages.
Each sensitivity amount is calculated assuming that all other assumptions are held constant. It should be noted that economic factors and
conditions often affect multiple assumptions simultaneously. For the UK pension plan, the discount rate and pension increase sensitivities
shown are relative to price inflation, because limited price indexation of pensions in payment and deferred pension rights is required both by
the Syngenta UK pension plan rules and by UK statutory pension regulations. For Syngenta’s Swiss and US plans, the sensitivities are for
changes in the nominal discount rates, because the rules and statutory regulations applicable to those plans contain no inflation linkage and
indexation of benefits to inflation is not general market practice in those countries. Syngenta is not able to predict the extent of likely future
changes in the discount rate or life expectancy assumptions, but based on past experience, the discount rate for each plan could change by
up to 350 basis points (bp) within a twelve-month period. Pensionable pay is now permanently frozen for the UK DB pension plan as
explained below, and the sensitivity of the DBO to the assumed rate of increase in pensionable pay is not material for the Swiss or US plans.
To select the discount rate, Syngenta uses yields of AA-rated corporate bonds. The relevant yield is determined either by analyzing
a population of bonds whose cash flows collectively approximate the estimated cash flow profile of benefit payments by a Syngenta plan (UK
and USA), or by using the yield of a published bond index and adjusting it in line with the relevant market yield curve to the extent that the
average maturity of the bonds in the index is different from that of the relevant Syngenta benefits (Switzerland). Nominal discount rates at
December 31, 2024 are as follows:
Switzerland 1.00 percent (2023: 1.50 percent)
UK
5.49 percent (2023: 4.63 percent)
USA
5.60 percent (2023: 5.05 percent)
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
26
In valuing the UK DBO at December 31, 2024, the UK long-term rate of retail price inflation (RPI) is assumed to be 3.22 percent (2023: 3.09
percent). Future statutory pension increases are based on consumer price inflation (CPI). Most Syngenta UK pension plan members have
benefits specifically linked to RPI in accordance with the plan rules, but some members will see increases linked to CPI. CPI is assumed to be
50 basis points (2023: 45 basis points) below RPI.
Over the last 20 years, life expectancy estimates steadily increased in all major countries in which Syngenta sponsors pension plans, although
available data for the UK and USA for the four most recent years indicates a slight decline compared to previous projections, and Syngenta’s
projections of future life expectancy improvement have been reduced accordingly. Syngenta sets mortality assumptions after considering the
most recent statistics practicable. Syngenta uses generational mortality tables to estimate probable future mortality improvements. These
tables assume that the trend of increasing life expectancy will continue, although at a decreasing rate, resulting in pension benefit payments to
younger members being likely to be paid for longer time periods than older members’ pensions, given that assumed retirement ages are
those defined in the rules of each plan. At December 31, 2024, the UK DBO was estimated using mortality rates based on the UK Institute
and Faculty of Actuaries’ CMI SAPS Pensioner Amounts Light Tables with 1.25 percent per annum long-term trend from 2017 (2023: UK
Institute and Faculty of Actuaries’ CMI SAPS Pensioner Amounts Light Tables with 1.75 percent per annum long-term trend from 2002-2018),
with assumed future improvement of 1.25 percent (2023: 1.25 percent) per annum in line with the CMI Core Projections model 2023 (2023:
CMI Core Projections model 2022). Syngenta adopts the default value of 7.0 for the default smoothing parameter as mortality experience
suggests more weight should be placed on recent data and in 2024, a nil percent (2023: nil percent) weighting was placed on 2020 and 2021
experience due to COVID-19 impacts but a 15 percent weighting was placed on 2022 and 2023. Mortality, commutation and withdrawal
assumptions were updated in 2024 following the most recent triennial valuation for UK statutory purposes at March 31, 2024, decreasing the
DBO by $95 million (6 percent). The next statutory valuation of the plan will be performed at the latest at March 31, 2027.
At December 31, 2024 and 2023, Syngenta valued the defined benefit obligation for its Swiss pension plan using mortality, disability and
employee turnover assumptions from the BVG 2020 generational table. At December 31, 2024, Syngenta valued the defined benefit
obligation for its US pension plan using mortality assumptions from the PRI-2012 generational mortality table together with Scale MP-2021
mortality improvements starting with base year 2012 (2023: base year 2012).
Syngenta’s major pension plans give members lump sum or annuity benefit payment options. Syngenta values its pension liabilities on the
assumption that the choices made by members who will retire in the future will be consistent with choices made by members who have retired
recently.
For calculating benefits of UK plan members, pensionable pay remains frozen at January 1, 2016 levels. The plan remains open to benefit
accrual for existing members, and pay increases awarded after January 1, 2016, which are not part of defined benefit pensionable pay, are
pensionable under the Syngenta Group Personal Pension (GPP), a separate defined contribution plan, for those who choose to join.
Employees who choose to leave the defined benefit section of the UK pension plan are able to join the GPP. Historical regulatory changes
allow members aged at least 55 to transfer their benefits out of the plan into arrangements which allow flexible cash withdrawals, in contrast to
the previous requirement that members take at least 75 percent of their benefit in annuity form. While market conditions in recent years have
resulted in transfer values favorable to members, increases in gilt yields in 2023 and 2024 have reduced transfer values. These factors
resulted in $2 million (2023: $4 million) of benefit payments out of the UK plan as some members withdrew all their benefits. Syngenta has not
made any allowance for future transfers out in connection with the regulatory changes. Available data indicates that if transfers were to
continue at the current rate until the next statutory valuation, this would not cause Syngenta to recognize a material actuarial gain or loss in its
consolidated financial statements.
Between 1978 and 1997, UK legislation required certain pension plans, including Syngenta's UK plan, to accrue Guaranteed Minimum
Pensions (“GMP”) in a way that resulted in gender inequalities. This affected both the GMP and the non-GMP element of members’ pensions.
The European Court of Justice's 1991 Barber ruling mandated equal pensions for men and women for benefits earned thereafter. However,
how to address the inequality in GMPs was unclear until the 2018 Lloyds case in the UK High Court. This case determined that pension plans
must equalize the non-GMP benefits accrued between 1990 and 1997. It also allowed employers to mandate a specific equalization method,
"Method C2," which involves comparing pension payable with those of a notional member of the opposite gender and making retrospective
payments for the difference, with interest. Syngenta has adjusted its UK DBO to reflect the application of Method C2, although there is
uncertainty due to pending clarifications, lack of detailed member calculations, and potential variations in the actual impact of equalization. A
further judgment in November 2020 confirmed that historical transfers out also require allowance for GMP equalization.
IFRSs require Syngenta to estimate the economic benefit it can obtain from the amount by which the fair value of assets held in a DB plan
exceeds the DBO measured in accordance with IAS 19 (“surplus”), and recognize a reduction in the net DB asset to the extent that the future
economic benefit is lower than the actual surplus at the reporting date, or an increase in the net DB liability if the future economic benefit is
lower than the projected future surplus that would arise when Syngenta meets an existing minimum funding obligation. Accounting recognition
of a surplus in Syngenta’s UK defined benefit pension plan is supported by the economic benefit of future contribution savings and, when that
benefit is less than the surplus, also by the future refund, net of applicable taxes, which will be unconditionally available to Syngenta when all
liabilities have been settled. At December 31, 2024, Syngenta recognized $54 million (2023: $92 million) reduction to the net surplus to reflect
taxes Syngenta would suffer on the portion of the projected surplus supported by Syngenta’s refund rights. Benefit accrual for existing
members of Syngenta’s main US pension plan was frozen as from December 31, 2018, as further described in Note 21 below. At December
31, 2024 and 2023 the US pension plan was not in a surplus. At December 31, 2024, Syngenta’s Swiss pension plan had a surplus of $289
million (2023: $348 million). The surplus was able to be recognized in full as it was equal to the amount that the estimated future employer
contributions (minimum funding requirement) exceed service costs which represents the economic benefit arising from the surplus (2023:
restricted to $161 million). Swiss pension law does not permit a refund of the surplus.
Litigation provisions
Syngenta’s accounting estimates related to provisions for litigation are disclosed in Note 19.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
27
3. Acquisitions, divestments and other significant transactions
The following significant transactions occurred during 2024 and 2023.
2024
Acquisitions
On July 1, 2024, Syngenta acquired 100 percent of the issued shares of Produtécnica Nordeste Comércio de Insumos Agrícolas Ltda.
(“Produtecnica”), a limited liability company incorporated in Brazil, a distributor of agricultural products in the Brazilian states of Maranhao,
Piaui and Tocantis of Brazil. The acquisition will enable Syngenta to strengthen its presence and explore further expansion opportunities in the
North and Northeast regions of Brazil.
On December 24, 2024, Syngenta exercised a call option and obtained 100 percent control of Intrinsyx Bio Inc., (“Intrinsyx Bio”), a former
associate in which Syngenta held a 40 percent equity ownership, for consideration of $50 million. Intrinsyx Bio is a US-based research and
development company involved in the development of biological products for the Crop Protection segment and will enable Syngenta to
develop new products for the biological market. Due to Syngenta’s previous 40 percent non-controlling ownership interest, the acquisition is
considered to have occurred in stages, requiring Syngenta to fair value its existing Intrinsyx Bio investment immediately prior to the acquisition
date, which resulted in recognizing a $5 million gain in Other general and administrative in the income statement.
The acquisition-date fair values of assets, liabilities and consideration for these acquisitions were not individually or in aggregate material, and
therefore were aggregated in the table below. The major classes of assets acquired, and liabilities assumed at the acquisition date, which are
still provisional due to the timing of the acquisitions, are:
($m)
Total
Cash and cash equivalents
2
Inventories
15
Trade receivables and other current assets
32
Property, plant and equipment
1
Intangible assets
112
Trade and other liabilities
(70)
Deferred tax liabilities
(21)
Net assets acquired
71
Purchase price, after agreed-upon adjustments
56
Fair value of 40 percent equity interest previously held by Syngenta
33
Goodwill
18
Cash flow related to these acquisitions was as follows:
($m)
Total
Total cash paid
47
Net cash acquired
(2)
Net cash outflow
45
Deferred consideration payments of $5 million are included in Financial debt and other non-current liabilities. Payments of deferred
consideration related to acquisitions completed in prior periods were $37 million. The $82 million net consolidated cash outflow is included in
Business acquisitions, net of cash acquired, in the consolidated cash flow statement.
Divestments
On December 17, 2024, Syngenta completed the sale of certain of its subsidiaries based in China to Syngenta Group Co. Ltd, the parent
company of Syngenta Group, for a consideration of $225 million. The divestment resulted in a gain of $73 million, after the recycling to the
income statement of currency translation losses previously reported in Other reserves in the consolidated balance sheet of $33 million,
recognized within Divestment gains in the consolidated income statement.
The net proceeds of $207 million, after withholding tax settlement, are reported in Other receivables in the balance sheet and were paid in
January 2025. Cash flow related to the divestment, included in Business divestments, net of cash divested in the consolidated cash flow
statement, was as follows:
($m)
Total
Withholding tax
18
Net cash divested
(93)
Net cash outflow
(75)
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
28
In addition to cash and cash equivalents, the carrying amounts of assets, liabilities and non-controlling interest divested were as follows:
($m)
Total
Inventories
180
Trade receivables and other current assets
202
Property, plant and equipment
74
Intangible assets
178
Other non-current assets
30
Trade accounts payable, other current liabilities and provisions
(509)
Financial debts
(96)
Other non-current liabilities
(16)
Non-controlling interest
(17)
Net assets and non-controlling interest divested
26
Sale and leaseback transactions
On October 23, 2024, Syngenta completed a sale and leaseback transaction for three of its sites in the United States of America. The total
gain from the associated site disposals was $190 million, of which $42 million was recognized as a gain at the disposal date and $148 million,
corresponding to the value of the retained leaseback, is deferred in accordance with IFRS 16, through reduction in the amount recognized for
the right-of-use asset, and is being amortized over a 17-year period from the disposal date. The net proceeds of $203 million are reported as
Proceeds from disposals of property, plant and equipment in the consolidated cash flow statement.
On July 1, 2024, Syngenta renegotiated the lease on one of its previous sale and leaseback transactions with a new lease provider. Under the
new lease arrangement, the duration of the lease was decreased from its initial 20-year term down to 5 years. This reduction in lease term
resulted in Syngenta recognizing an additional $28 million of gain that was required to be deferred under the terms of the original lease
agreement.
2023
Acquisitions
On April 28, 2023, Syngenta acquired 100 percent of the issued shares of Macspred Pty Ltd. (“Macspred”), a limited liability company
incorporated in Australia, a specialist in weed management for the forestry, roads, rail, utilities, and infrastructure sectors. The acquisition
enables Syngenta to enter, through its Professional Solutions business, into the forestry products and vegetation markets in Australia.
On May 3, 2023, Syngenta acquired 100 percent of the issued shares of Agrocerrado Produtos Agricolas E Assistencia Tecnica Ltda.
(“Agrocerrado”), a limited liability company incorporated in Brazil, a distributor of agricultural products in the Minas Gerais state of Brazil. The
acquisition enables Syngenta to strengthen its presence and explore further expansion opportunities in Minas Gerais.
On June 20, 2023, Syngenta acquired 100 percent of the issued shares of Kubix AgroIndustrial Ltda. ("Kubix"), a limited liability company
incorporated in Brazil. Kubix, based in Indaiatuba, state of Sao Paulo, is a production facility that manufactures crop protection products. The
acquisition will increase Syngenta’s manufacturing capacity to meet growing demand.
On July 3, 2023, Syngenta acquired 100 percent of the issued shares of Feltrin Sementes Ltda. (“Feltrin”), a limited liability company
incorporated in Brazil. Feltrin is a vegetable seed breeding and distribution company based in Rio Grande do Sul. The acquisition enables
Syngenta to increase its vegetable seeds position through Feltrin’s strong distribution network.
The acquisition-date fair values of assets, liabilities and consideration for the aforementioned acquisitions were not individually and in
aggregate material, and therefore were aggregated in the table below. During 2024, the final purchase price allocations of the aforementioned
acquisitions were completed and did not result in any significant revisions of the provisional assets and liabilities balances reported as at
December 31, 2023. The major classes of assets acquired, and liabilities assumed at the acquisition date are:
($m)
Total
Cash and cash equivalents
10
Inventories
22
Trade receivables and other current assets
41
Property, plant and equipment
21
Intangible assets
19
Deferred tax and other non-current assets
6
Trade and other liabilities
(79)
Net assets acquired
40
Purchase price, after agreed-upon adjustments
77
Goodwill
37
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
29
Cash flow related to these acquisitions was as follows:
($m)
Total
Total cash paid
69
Net cash acquired
(10)
Net cash outflow
59
Deferred consideration payments of $8 million are included in Financial debt and other non-current liabilities. Payments of deferred
consideration related to acquisitions completed in prior periods were $73 million. The $59 million net cash outflow is included in Business
acquisitions, net of cash acquired, in the consolidated cash flow statement.
Sale and leaseback transactions
On December 1, 2023, Syngenta completed the sale and leaseback transaction on three research and development sites, and one
formulation and packaging site, all of which were located in the United States of America. The total gain on the associated site disposals was
$171 million, of which $16 million was recognized as a gain at the disposal date and $155 million, corresponding to the value of the retained
leaseback, is deferred in accordance with IFRS 16, through reduction in the amount recognized for the right-of-use asset, and is being
amortized over a 20-year period from the disposal date. The proceeds from the disposal amount to $240 million and are reported as Proceeds
from disposals of property, plant and equipment in the consolidated cash flow statement.
4. Segmental breakdown of key figures
Syngenta has five operating segments consisting of the Crop Core, Professional Solutions, Field Crops, Vegetables and Flowers businesses.
These have been aggregated into the global Crop Protection reporting segment, consisting of Crop Core and Professional Solutions, and the
global Seeds reporting segment, consisting of Field Crops, Vegetables and Flowers. Aggregation is based on internal management structures
and underlying economic similarity. Crop Core and Professional Solutions have been aggregated because the similarities in their products,
production processes, distribution methods and regulatory environments are much more significant than the differences in the market
segments to which their respective customer bases sell, and they each have similar economic performance. Field Crops, Vegetables and
Flowers have been aggregated because the extensive similarities which each of these businesses has with the others in their products and
customers, their production and distribution processes and the regulatory environment for their products are much more significant than their
respective differences, which relate to regulatory processes for GM traits used in certain Field Crops products and to the differences in a
proportion of their respective customer bases. Also, the economic performance of these businesses is expected to be similar. Segment
performance is managed based on segment operating income before restructuring costs and divestments, which is the measure of segment
profit or loss presented, and is based on the same accounting policies as consolidated operating income.
Transactions between segments are generally priced based on the third party selling prices achieved by the purchasing segment less an
allowance for selling and distribution profit margins for the purchasing segment.
The segmental breakdown of key figures for the years ended December 31, 2024 and 2023 is as follows:
2024 ($m)
Crop Protection
Seeds
Total segments
Restructuring
Syngenta
Product sales - to third parties
13,205
3,432
16,637
‐
16,637
Royalty and license income - from third parties
3
341
344
‐
344
Total segment sales
13,208
3,773
16,981
‐
16,981
Cost of goods sold
(8,816)
(2,071)
(10,887)
‐
(10,887)
Gross profit
4,392
1,702
6,094
‐
6,094
Marketing and distribution
(1,945)
(808)
(2,753)
‐
(2,753)
Research and development
(723)
(401)
(1,124)
‐
(1,124)
General and administrative:
Restructuring costs
‐
‐
‐
(267)
(267)
Divestment gains
‐
‐
‐
73
73
Other general and administrative
(230)
(84)
(314)
(278)
(592)
Operating income
1,494
409
1,903
(472)
1,431
Included in the above operating income are:
Personnel costs
(2,383)
(1,186)
(3,569)
(184)
(3,753)
Depreciation of property, plant and equipment and
right-of-use assets
(420)
(117)
(537)
(29)
(566)
Amortization of intangible assets
(110)
(185)
(295)
-
(295)
Impairment of property, plant and equipment, right-of-
use, intangible and financial assets
(50)
-
(50)
(235)
(285)
Other non-cash items including charges and releases
in respect of provisions
(22)
16
(6)
(133)
(139)
Gains on hedges reported in operating income
30
8
38
-
38
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
30
Operating income reconciles to consolidated income before taxes as follows:
2024 ($m)
Operating income
1,431
Financial expense, net
(737)
Income before taxes
694
2023 ($m)
Crop Protection
Seeds
Total segments
Restructuring
Syngenta
Product sales - to third parties
15,246
3,567
18,813
‐
18,813
Royalty and license income - from third parties
5
378
383
‐
383
Total segment sales
15,251
3,945
19,196
‐
19,196
Cost of goods sold
(10,057)
(2,247)
(12,304)
(8)
(12,312)
Gross profit
5,194
1,698
6,892
(8)
6,884
Marketing and distribution
(1,803)
(833)
(2,636)
‐
(2,636)
Research and development
(704)
(381)
(1,085)
‐
(1,085)
General and administrative:
Restructuring costs
‐
‐
‐
(43)
(43)
Other general and administrative
(297)
(230)
(527)
(30)
(557)
Operating income
2,390
254
2,644
(81)
2,563
Included in the above operating income are:
Personnel costs
(2,429)
(1,261)
(3,690)
(24)
(3,714)
Depreciation of property, plant and equipment and
right-of-use assets
(392)
(110)
(502)
(32)
(534)
Amortization of intangible assets
(113)
(163)
(276)
-
(276)
Impairment of property, plant and equipment, right-of-
use, intangible and financial assets
(43)
-
(43)
-
(43)
Other non-cash items including charges and releases
in respect of provisions
(70)
(99)
(169)
14
(155)
Gains on hedges reported in operating income
39
5
44
-
44
Operating income reconciles to consolidated income before taxes as follows:
2023 ($m)
Operating income
2,563
Income from associates and joint ventures
8
Financial expense, net
(1,142)
Income before taxes
1,429
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
31
The analysis of revenue by major product line for the years ended December 31, 2024 and 2023 is as follows:
($m)
2024
2023
Selective herbicides
2,867
3,771
Non-selective herbicides
803
1,094
Fungicides
3,735
4,564
Insecticides
2,565
2,556
Seedcare
1,351
1,573
Professional solutions
658
652
Biologicals
476
387
Other crop protection
808
836
Total Crop Protection before interbusiness eliminations
13,263
15,433
Elimination of Crop Protection sales to Seeds
(55)
(182)
Total Crop Protection
13,208
15,251
Corn and soybean
2,138
2,184
Diverse field crops1
669
850
Other seeds
‐
1
Vegetables
796
746
Flowers
191
183
Total Seeds before interbusiness eliminations
3,794
3,964
Elimination of Seeds sales to Crop Protection
(21)
(19)
Total Seeds
3,773
3,945
Total Syngenta
16,981
19,196
1 Diverse field crops comprise primarily sunflower and cereals
In 2024, regional management structures were strategically realigned to more effectively address market dynamics. The analysis of revenue
by primary geographical market has been revised to reflect the new organization and comparative figures have been restated accordingly.
The analysis of revenue by primary geographical market for the years ended December 31, 2024 and 2023 is as follows:
($m)
2024
2023
Asia, Middle East and Africa
2,737
3,095
China
735
691
Europe
2,869
3,112
Latin America
6,080
6,749
North America
3,823
4,669
Other
737
880
Total sales
16,981
19,196
Summarized additional information on the nature of expenses for the years ended December 31, 2024 and 2023 is as follows:
($m)
2024
2023
Salaries, short-term employee benefits and other personnel expense
3,571
3,548
Pension and other post-employment benefit expense
182
166
Total personnel costs
3,753
3,714
Depreciation of property, plant and equipment and right-of-use assets
566
534
Impairment of property, plant and equipment and right-of-use assets
45
2
Amortization of intangible assets
295
276
Impairment of intangible assets
236
41
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
32
5. Regional breakdown of key figures
The following countries individually accounted for more than 5 percent of one or more of the respective Syngenta totals for the years ended
December 31, 2024 and 2023:
($m, except %)
Sales1
Total non-current assets2
Country
2024
%
2023
%
2024
%
2023
%
Argentina
773
5
1,220
6
595
5
492
4
Brazil
4,430
26
4,612
24
1,263
10
1,463
12
Switzerland
36
-
43
-
4,629
38
4,755
38
UK
151
1
152
1
825
7
832
7
USA
3,295
19
4,092
22
2,681
22
2,421
19
Rest of world
8,296
49
9,077
47
2,104
18
2,491
20
Total
16,981
100
19,196
100
12,097
100
12,454
100
1 Sales by location of third-party customer
2 Excluding deferred tax assets, post-employment benefit assets and derivative financial assets
No single customer accounted for 10 percent or more of Syngenta’s total sales.
6. General and administrative
The following items were recognized within General and administrative for the years ended December 31, 2024 and 2023:
($m)
2024
20231
Productivity programs and other restructuring costs
(242)
(36)
Acquisition, divestment and related costs
(25)
(7)
Restructuring costs
(267)
(43)
Divestment gains (Note 3)
73
‐
Impairment and accelerated depreciation not allocated to functions
(278)
(30)
Other general and administrative costs
(314)
(527)
Other general and administrative
(592)
(557)
1 For 2023, $30 million of impairments and other non-cash items have been reclassified from Restructuring costs to Other general and administrative to be consistent with the 2024
presentation
Productivity programs and other restructuring costs
2024
During 2024, Syngenta set up a Transformation Office to shape and implement strategic initiatives and enable productivity improvements
across the organization over a multi-year period. Cash costs of $236 million were incurred for these initiatives, including $175 million of
severance and other employee related costs due to strategic alignment of regional management structures and head-count reduction
programs, $21 million for system projects covering Procurement, Production and Supply and several system migrations as part of a multi-year
initiative targeting a global ERP platform, $22 million of severance, dismantling and other costs associated with the mandatory relocation of a
manufacturing facility in China, $10 million of reinstatement and lease penalty costs associated to the closure of certain facilities in Singapore,
and $8 million across a number of individually small initiatives. The remaining $6 million consists of costs to wind down certain sustainable
agricultural initiatives, which are being replaced by the newly announced sustainability priorities.
2023
Cash costs of $36 million were incurred for productivity initiatives consisting of $17 million for system projects covering Procurement,
Production and Supply and several system migrations as part of a multi-year initiative targeting a global ERP platform, $8 million of severance
costs due to strategic alignments in the R&D organization, and $11 million across a number of individually small initiatives driving operational
efficiencies and strategic alignments in the Crop Protection and Seeds businesses.
Acquisition, divestment and related costs
2024
Cash costs include $11 million incurred for merger and acquisition projects and transaction costs, and $14 million incurred for projects to
integrate completed acquisitions.
2023
Cash costs included $10 million incurred for merger and acquisition projects and transaction costs, $4 million incurred for projects to integrate
completed acquisitions, $17 million of costs related to the integration of the Syngenta Group, as well as costs relating to analyzing and
preparing for a future Syngenta Group IPO, partially offset by a $24 million gain due to the release of a tax contingency provision recognized
for a previously completed acquisition that expired in the current year.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
33
Impairments and accelerated depreciation not allocated to functions
2024
Impairment and other non-cash items include $29 million of accelerated depreciation of a manufacturing facility caused by adopting a shorter
asset life due to the mandatory relocation mentioned above, $83 million of impairments of capitalized development costs and other
intangibles, $15 million of inventory write-down within the Seeds business due to strategic decisions to exit certain geographies and crops, $7
million of impairment of Syngenta´s investment in MAS Seeds SA (see Note 14), and $12 million of other smaller impairments where asset
values are not supported by future business plans. As described in Note 2, impairment losses were also recognized in the cash-generating
unit Flowers for $132 million (comprising $14 million of goodwill, $68 million of capitalized development costs, $17 million of products rights,
trademarks and other intangibles, and $33 million of property, plant and equipment).
2023
Impairment and other non-cash costs included $32 million of accelerated depreciation of a manufacturing facility caused by adopting a shorter
asset life due to mandatory relocation, partially offset by a $2 million gain relating to a reversal of an inventory write-off from a restructuring
initiative from previous years.
Other general and administrative costs
Significantly lower Other general and administrative costs in 2024 included productivity savings from travel and personnel costs, deferral of
project costs and a significant decrease in litigation expenses due to the conclusion in 2023 of all material exporter plaintiff claims related to
Viptera. Other general and administrative costs are allocated to the operating segments (see Note 4).
7. Income taxes
Income before taxes for the years ended December 31, 2024 and 2023 consists of the following:
($m)
2024
2023
Switzerland
(115)
425
Foreign
809
1,004
Total income before taxes
694
1,429
Income tax (expense)/benefit on income for the years ended December 31, 2024 and 2023 consists of the following:
($m)
2024
2023
Current income tax (expense):
Switzerland
(36)
(97)
Foreign
(331)
(285)
Total current income tax (expense)
(367)
(382)
Deferred income tax (expense)/benefit:
Switzerland
(69)
(8)
Foreign
3
42
Total deferred income tax (expense)/benefit
(66)
34
Total income tax (expense):
Switzerland
(105)
(105)
Foreign
(328)
(243)
Total income tax (expense)
(433)
(348)
The components of current income tax (expense) on income for the years ended December 31, 2024 and 2023 are:
($m)
2024
2023
Current tax (expense) relating to current year
(419)
(434)
Adjustments to current tax for prior periods
52
52
Total current income tax (expense)
(367)
(382)
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
34
The components of deferred income tax (expense)/benefit on income tax the years ended December 31, 2024 and 2023 are:
($m)
2024
2023
Origination and reversal of temporary differences
(53)
(47)
Changes in tax rates or legislation
5
1
Other adjustments to deferred tax for prior periods
(14)
‐
Utilization of tax losses previously recognized as deferred tax assets
(1)
(4)
Recognition of previously unrecognized deferred tax assets
7
89
Non-recognition of deferred tax assets
(10)
(5)
Total deferred income tax (expense)/benefit
(66)
34
OCI and Income tax relating thereto, for each component of equity, for the years ended December 31, 2024 and 2023 are as follows:
2024
2023
($m)
Pre-tax
Tax
Post-tax
Pre-tax
Tax
Post-tax
Items that will not be reclassified to profit or
loss:
Fair value reserves: Equity investments
at fair value through OCI
(31)
2
(29)
‐
‐
‐
Retained earnings: Actuarial
gains/(losses)
184
(12)
172
85
7
92
Items that may be reclassified to profit or
loss:
Fair value reserves: Cash flow and net
investment hedges
(39)
(3)
(42)
(92)
20
(72)
Currency translation effects
(483)
(1)
(484)
(125)
‐
(125)
Total
(369)
(14)
(383)
(132)
27
(105)
Current income tax credits recognized in OCI were $nil (2023: $9 million). No income tax was directly (charged)/credited to shareholder’s
equity for the years ended December 31, 2024 and 2023.
Analysis of tax rate
The table below presents the main elements causing Syngenta’s effective tax rate to differ from the statutory tax rate for the years ended
December 31, 2024 and 2023. Syngenta’s statutory tax rate consists of the ordinary tax rate applicable in the canton of Basel Stadt, where
Syngenta is headquartered. Syngenta applies the domestic Swiss tax rate as it believes this is more meaningful than using a weighted
average tax rate.
The Swiss domestic rate applicable in the canton of Basel Stadt is 13 percent and has been used for the tax rate reconciliation
(2023: 13 percent).
2024 %
2023 %
Statutory tax rate
13
13
Effect of income taxed at different rates
35
11
Effect of other disallowed expenditures and income not subject to tax
(4)
9
Tax deduction for amortization and impairments not recognized
(6)
‐
Effect of changes in tax rates and laws on previously recognized deferred tax assets and liabilities
(1)
‐
Effect of recognition of previously unrecognized deferred tax assets
(1)
(6)
Effect of recognition of previously unrecognized tax losses
(2)
‐
Changes in prior year estimates and other tax items
3
(4)
Effect of non-recognition of deferred tax assets on temporary differences
1
‐
Effect of non-recognition of deferred tax assets on tax losses in current year
24
1
Effective tax rate
62
24
Effect of income taxed at different rates includes rate differences from the domestic Swiss tax rate attributable to income generated by in-
market distribution companies, which is higher compared to the prior year mainly driven by an increased proportion of profits outside of
Switzerland.
Non-recognition of current year tax losses in Switzerland and Argentina increased Syngenta’s effective tax rate by 24 percent. Tax deductible
investment impairment under local GAAP decreased Syngenta’s effective tax rate by 6 percent. Changes in prior year income tax estimates
increased the effective tax rate by 3 percent in 2024 mainly due to closures of previous tax periods.
Recognition of deferred tax assets on temporary differences and tax losses decreased the effective tax rate by 3 percent whereas the non-
recognition of previously recognized deferred tax assets increased Syngenta’s effective tax rate by 1 percent in 2024.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
35
The estimated tax liability of Syngenta related to OECD Pillar Two is immaterial for the year ended December 31, 2024 and therefore Pillar
Two related tax expenses are not disclosed separately.
The movements in deferred tax assets and liabilities during the year ended December 31, 2024 are as follows:
2024 ($m)
January 1
Recognized in
net income
Recognized in
equity and OCI
Currency
translation
effects
Other
movements and
acquisitions
December 31
Assets associated with:
Inventories
723
(155)
‐
(121)
(8)
439
Accounts receivable
406
21
‐
(48)
‐
379
Pensions and employee costs
16
4
(12)
3
‐
11
Provisions
653
(121)
‐
(4)
(17)
511
Unused tax losses and tax credits
52
67
‐
(12)
(2)
105
Financial instruments, including
derivatives
146
25
1
(15)
‐
157
Other1
367
48
‐
(8)
(1)
406
Deferred tax assets
2,363
(111)
(11)
(205)
(28)
2,008
Liabilities associated with:
Property, plant and equipment and
Right-of-use assets
(395)
(57)
‐
1
‐
(451)
Intangible assets
(740)
3
‐
70
(21)
(688)
Inventories
(369)
254
‐
11
6
(98)
Financial instruments, including
derivatives
(6)
(53)
(3)
2
1
(59)
Other provisions and accruals
(265)
(95)
‐
10
‐
(350)
Other
(75)
(7)
‐
7
(3)
(78)
Deferred tax liabilities
(1,850)
45
(3)
101
(17)
(1,724)
Net deferred tax asset/(liability)
513
(66)
(14)
(104)
(45)
284
The movements in deferred tax assets and liabilities during the year ended December 31, 2023 are as follows:
2023 ($m)
January 1
Recognized in net
income
Recognized in
equity and OCI
Currency
translation effects
Other
movements and
acquisitions
December 31
Assets associated with:
Inventories
565
167
‐
(9)
‐
723
Accounts receivable
424
(35)
‐
12
5
406
Pensions and employee costs
48
(39)
7
‐
‐
16
Provisions
621
37
‐
(5)
‐
653
Unused tax losses and tax credits
52
(4)
‐
4
‐
52
Financial instruments, including
derivatives
23
121
1
1
‐
146
Other1
255
120
‐
(8)
‐
367
Deferred tax assets
1,988
367
8
(5)
5
2,363
Liabilities associated with:
Property, plant and equipment and
Right-of-use assets
(362)
(21)
‐
(12)
‐
(395)
Intangible assets
(607)
(90)
‐
(43)
‐
(740)
Inventories
(121)
(244)
‐
(4)
‐
(369)
Financial instruments, including
derivatives
(31)
16
10
(1)
‐
(6)
Other provisions and accruals
(272)
20
‐
(13)
‐
(265)
Other
(61)
(14)
‐
‐
‐
(75)
Deferred tax liabilities
(1,454)
(333)
10
(73)
‐
(1,850)
Net deferred tax asset/(liability)
534
34
18
(78)
5
513
1 The net deferred tax assets for other temporary differences mainly relate to accrued and other liabilities, including lease liabilities of $174 million (2023: $156 million).
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
36
The deferred tax assets and liabilities at December 31, 2024 and 2023 reconcile to the amounts presented in the consolidated balance sheet
as follows:
($m)
2024
2023
Deferred tax assets
2,008
2,363
Adjustment to offset deferred tax assets and liabilities 1
(388)
(529)
Adjusted deferred tax assets
1,620
1,834
Deferred tax liabilities
(1,724)
(1,850)
Adjustment to offset deferred tax assets and liabilities 1
388
529
Adjusted deferred tax liabilities
(1,336)
(1,321)
1 Deferred tax assets and liabilities relating to income taxes levied by the same taxation authority on the same taxable entity or on entities which intend to settle current tax assets
and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously are offset for presentation on the face of the consolidated balance sheet where a legal
right of set-off exists.
The gross value at December 31, 2024 and 2023 of unused tax loss carry forwards for which no deferred tax asset has been recognized,
by expiration date, is as follows:
($m)
2024
2023
One year
2
1
Two years
‐
‐
Three years
22
‐
Four years
‐
1
Five years
213
10
More than five years
753
1
No expiry
343
337
Total
1,333
350
2024 gross values consist mainly of tax loss carry forwards in Switzerland, Argentina, UK, Brazil, Spain, Belgium and Philippines (2023: UK,
Brazil, Spain and Belgium).
Deferred tax assets, other than those related to unused tax losses, are not subject to expiry except for $44 million (2023: $55 million)
unrecognized tax credit carry forward in one jurisdiction that will expire in more than five years. A deferred tax asset of $52 million (2023: $48
million) has not been recognized at December 31, 2024 on temporary differences.
A deferred tax liability has not been recognized at December 31, 2024 on temporary differences associated with investments in subsidiaries of
$391 million (2023: $758 million).
There are no income tax consequences for Syngenta of paying a dividend to its shareholder.
8. Trade and other accounts receivable
Trade receivables at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Trade receivables, gross
5,492
5,980
Provision for doubtful trade receivables
(595)
(587)
Trade receivables
4,897
5,393
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
37
Information relating to Syngenta’s credit risk exposure at December 31, 2024 and 2023 and movements in the provision for expected credit
losses (ECL) on trade and other receivables and amortized cost financial assets in accordance with IFRS 9 for the years ended
December 31, 2024 and 2023 are as follows. In addition, further details on the allowance for doubtful receivables charged to income are
presented in Note 2.
2024
2023
($m)
12-month ECL
Lifetime ECL
(collectively
assessed)
12-month ECL
Lifetime ECL
(collectively
assessed)
Maximum exposure to credit risk
1,479
5,492
1,220
5,980
Collateral held
-
203
-
106
Impairment provisions
January 1
(11)
(587)
(6)
(620)
Additions due to business acquisitions
-
(9)
-
(11)
Amounts credited/(charged) to income
(10)
(114)
(1)
29
Amounts written off
-
43
(3)
11
Currency translation effects and other
-
72
(1)
4
December 31
(21)
(595)
(11)
(587)
Carrying value, net
1,458
4,897
1,209
5,393
The analysis of gross carrying amount by internal rating grades for the years ended December 31, 2024 and 2023 is as follows:
2024
2023
($m)
Lifetime ECL
(collectively
assessed)
Lifetime ECL
(collectively
assessed)
Amounts not yet due
4,252
4,928
Amounts past due:
0-90 days
531
415
90-180 days
186
143
180 days-1 year
300
265
More than 1 year
223
229
Maximum exposure to credit risk
5,492
5,980
The carrying amount of trade receivables includes $56 million (2023: $39 million) that are due more than one year from the balance sheet
date.
The carrying amount of trade receivables subject to full and partial recourse factoring arrangements, but not derecognized is $20 million
(2023: $28 million). Related current liabilities of $20 million (2023: $28 million) are disclosed in Note 16. The amount of these receivables
before the transfer transactions was $83 million (2023: $86 million).
Syngenta engages in risk-sharing factoring arrangements as part of its working capital management strategy, resulting in the derecognition
of trade receivables in their entirety. Syngenta's continuing involvement in these arrangements is limited to a second loss guarantee. In
certain arrangements, the second loss guarantee is collateralized by Syngenta's investment in the securitization entity. As at December 31,
2024, Syngenta's investments related to these arrangements was $136 million (2023: $98 million) comprising $ 41 million (2023: $10 million)
reported within Derivative and other financial assets and $95 million (2023: $88 million) reported within Financial and other non-current
assets in the consolidated balance sheet. The carrying amount of the investments approximates their fair values. As at December 31, 2024,
the maximum exposure to credit losses under these arrangements, assuming that all the customers default and Syngenta is required to fulfil
its second loss guarantee, was $215 million (2023: $226 million).
Credit risk management practices
Syngenta’s Corporate Finance team, in collaboration with Business Finance leaders, proposes and coordinates credit management policies
and processes including credit limit setting for customers and risk transfer objectives. At regional or country level, the responsibility of
execution is delegated, within defined authority levels, to local Credit Committees (CC). The CC defines risk mitigation programs such as
barter, collateral policy, payment terms, early payment rebates, and refinancing. The CC approves customer credit facilities, credit scoring and
payment terms and defines and reviews collection strategies, including credit hold and release processes, treatment of critical customer cases
and taking legal actions when collection efforts are insufficient to collect overdue balances.
To assign customers into specific credit risk categories, a standardized credit scoring methodology is applied to all customers generating a
creditworthiness score computed using a points-based system, which takes into consideration financial and non-financial attributes. The
respective credit risk category drives policy and approach relating to sales order release, collection process and credit limit.
Collaterals are an integral part of Syngenta’s risk mitigation strategy. Collaterals are based on a list of locally accepted securities which may
include cash, other financial instruments, barter operations or third-party credit enhancements such as guarantees or insurance, but normally
excludes non-financial assets. Collaterals are validated based on the probability of and time to legal enforcement.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
38
Receivable balances are written off only when there is no realistic prospect of their being collected, after completion of related legal actions
and permanent cessation of business activity with the defaulting customer. Write-offs are subject to defined authority levels and are not used
to solve small payment differences or valid commercial disputes with continuing customers.
Estimation of expected credit losses
To estimate expected credit losses, trade receivables are grouped into portfolios by credit risk category and country and a provision matrix
method is used. The principal inputs when determining matrix percentages are historical records of amounts written off in previous years,
amounts currently subject to insolvency proceedings and the likelihood of eventual write-offs of those amounts, the average credit period, past
due information and historical experience. Assumptions are also made about forecast conditions for market credit, commodity price, currency
and country risk, competition and regulation over the remaining credit period of the trade receivables outstanding at the balance sheet date.
These assumptions are consistent with those used to prepare operational budgets for the following period. Rebate credits and validated
collateral are deducted from outstanding receivable balances when determining the maximum exposure to credit loss to which matrix
percentages are applied. Expected recoveries under credit insurance policies, which are not part of the agreement with the customer, are
accounted for separately from the expected credit losses and are recognized as assets when the insurer has agreed the claim.
Expected credit losses on other receivables and amortized cost financial assets are generally estimated by assessing each receivable
individually. For balances reported as other receivables and current financial assets, lifetime expected credit losses are estimated. For
balances reported as non-current financial assets, 12-month expected credit losses are estimated unless the credit risk has increased
significantly since the asset was first recognized, in which case lifetime credit losses are estimated. Amounts more than 90 days past due are
considered to be in default for this purpose.
9. Other current assets
Other current assets at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Prepaid expenses
366
643
Assets held under barter agreements
108
61
Other
5
7
Assets held for sale
23
6
Combined total
502
717
Assets held for sale at December 31, 2024 and 2023 relate mainly to various sites planned for disposal under integration and site
rationalization plans. During 2024 and 2023, divestment gains recognized on sale of assets held for sale were not material.
10. Inventories
Inventories at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Raw materials and consumables
717
956
Biological assets
44
44
Work in progress
2,416
2,900
Finished products
3,111
4,076
Total
6,288
7,976
Inventories expensed through cost of goods sold were $9,927 million (2023: $11,254 million).
Finished products include $193 million (2023: $239 million) of inventory held by customers under a sale with a right of return.
Movements in the inventory write-down provision for the years ended December 31, 2024 and 2023 are as follows:
($m)
2024
2023
January 1
(649)
(458)
Additions charged to income
(315)
(388)
Reversals of inventory write-downs
30
18
Amounts utilized on disposal of related inventories
276
225
Currency translation effects and other
81
(46)
December 31
(577)
(649)
Reversals of inventory write-downs arise in the normal course of business when actual outcomes are more favorable than assumptions made
in prior periods about Syngenta’s future ability to sell inventories that are subject to risks of degradation and obsolescence, such as
germination of seeds.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
39
Movements in biological assets for the years ended December 31, 2024 and 2023 are as follows.
($m)
2024
2023
January 1
44
43
Changes in fair value
136
133
Sales and harvest
(135)
(132)
Currency translation effects and other
(1)
-
December 31
44
44
Of which: carried at fair value less costs to sell
44
44
Syngenta’s inputs for measuring the fair value of those assets that are carried at fair value less costs to sell include both market data from
actual sales and inputs based on the stage of growth of immature assets, which is not observable in the market. The fair values therefore
represent a level 3 measurement in the fair value hierarchy as defined by IFRS 13. Their sensitivity to changes in the unobservable inputs is
not material to the consolidated financial statements.
Quantities of biological assets in inventories at December 31, 2024 and 2023 are:
2024
2023
(Millions of plants)
Plants
58
53
Cuttings
573
633
11. Property, plant and equipment
Movements in property, plant and equipment for the year ended December 31, 2024 are as follows:
2024 ($m)
Land
Buildings
Machinery and
equipment
Assets under
construction
Total
Cost
January 1
110
2,140
6,534
755
9,539
Additions
‐
42
194
395
631
Disposals
(4)
(71)
(152)
(2)
(229)
Decreases due to divestments
‐
(91)
(214)
(20)
(325)
Classified as held-for-sale
(3)
(15)
(16)
‐
(34)
Transfers between categories
1
99
327
(427)
‐
Currency translation effects and other
(5)
(125)
(338)
(80)
(548)
December 31
99
1,979
6,335
621
9,034
Accumulated depreciation and impairment losses
January 1
‐
(1,171)
(4,123)
‐
(5,294)
Depreciation charge
‐
(88)
(375)
‐
(463)
Impairment losses
‐
(16)
(24)
(5)
(45)
Disposals
‐
55
138
‐
193
Decreases due to divestments
‐
70
181
‐
251
Classified as held-for-sale
‐
5
9
‐
14
Currency translation effects and other
‐
57
196
(1)
252
December 31
‐
(1,088)
(3,998)
(6)
(5,092)
Net book value – December 31
99
891
2,337
615
3,942
Additions to property, plant and equipment of $631 million (2023: $786 million) comprise $623 million (2023: $761 million) of cash purchases,
$7 million (2023: $4 million) of capitalized borrowing costs, and $1 million (2023: $21 million) of additions due to business combinations.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
40
Movements in property, plant and equipment for the year ended December 31, 2023 were as follows:
2023 ($m)
Land
Buildings
Machinery and
equipment
Assets under
construction
Total
Cost
January 1
105
1,973
5,839
702
8,619
Additions
9
57
260
460
786
Disposals
(6)
(86)
(139)
(3)
(234)
Transfers between categories
2
131
287
(420)
‐
Currency translation effects and other
‐
65
287
16
368
December 31
110
2,140
6,534
755
9,539
Accumulated depreciation and impairment losses
January 1
‐
(1,073)
(3,693)
‐
(4,766)
Depreciation charge
‐
(84)
(359)
‐
(443)
Impairment losses
‐
‐
(3)
‐
(3)
Disposals
‐
29
116
‐
145
Currency translation effects and other
‐
(43)
(184)
‐
(227)
December 31
‐
(1,171)
(4,123)
‐
(5,294)
Net book value – December 31
110
969
2,411
755
4,245
12. Intangible assets
Movements in intangible assets for the year ended December 31, 2024 are as follows:
2024 ($m)
Goodwill
Product
rights
Trademarks
Patents
Software
Capitalized
development
costs
Other
intangibles
Total
Cost
January 1
2,842
4,023
255
50
752
2,929
883
11,734
Additions from business combinations
18
‐
‐
‐
‐
‐
112
130
Additions from internal development
‐
‐
‐
‐
‐
779
‐
779
Other additions
‐
24
‐
2
57
‐
23
106
Retirements and disposals
(4)
(82)
‐
‐
(20)
‐
(1)
(107)
Decreases due to divestments
(17)
(80)
(15)
‐
(3)
(67)
(29)
(211)
Currency translation effects and others
(124)
(163)
(28)
(3)
(55)
(215)
(69)
(657)
December 31
2,715
3,722
212
49
731
3,426
919
11,774
Accumulated amortization and
impairment losses
January 1
(271)
(3,230)
(104)
(40)
(586)
(213)
(498) (4,942)
Amortization charge
‐
(87)
(12)
(1)
(40)
(101)
(54)
(295)
Impairment losses
(18)
(12)
(1)
(4)
‐
(195)
(6)
(236)
Retirements and disposals
4
83
‐
‐
20
‐
‐
107
Decreases due to divestments
‐
15
4
‐
1
4
9
33
Currency translation effects and others
8
113
8
2
43
3
28
205
December 31
(277)
(3,118)
(105)
(43)
(562)
(502)
(521) (5,128)
Net book value – December 31
2,438
604
107
6
169
2,924
398
6,646
Additions in 2024 and 2023 include intangible assets arising from license agreements involving non-monetary exchanges or where the cash
flows related to the acquisition of the asset are payable over several years. Cash paid to acquire and develop intangible assets was $741
million (2023: $760 million).
Included in Capitalized development costs is an amount of $81 million (2023: $60 million) that represents borrowing costs capitalized during
the year using a capitalization rate of 4.0 percent (2023: 3.6 percent). Also included in Capitalized development costs is an amount of $45
million (2023: $43 million) that represents depreciation that has been capitalized as it has been incurred on assets used within the
development activities.
Amortization is included within Cost of goods sold, Research and development and General and administrative expenses.
Other intangibles consist principally of values assigned to supply contracts, production know-how and customer relationships acquired in
business combinations.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
41
Movements in intangible assets for the year ended December 31, 2023 were as follows:
2023 ($m)
Goodwill
Product
rights
Trademarks
Patents
Software
Capitalized
development
costs
Other
intangibles
Total
Cost
January 1
2,723
3,837
217
45
666
1,888
867
10,243
Additions from business combinations
75
2
25
‐
‐
‐
(25)
77
Additions from internal development
‐
‐
‐
‐
‐
788
‐
788
Other additions
‐
11
‐
2
49
‐
11
73
Reclassification of tax credits
‐
‐
‐
‐
‐
45
‐
45
Retirements and disposals
‐
‐
‐
‐
(23)
‐
‐
(23)
Currency translation effects and others
44
173
13
3
60
208
30
531
December 31
2,842
4,023
255
50
752
2,929
883
11,734
Accumulated amortization and
impairment losses
January 1
(267)
(2,988)
(84)
(36)
(520)
(108)
(433)
(4,436)
Amortization charge
‐
(108)
(13)
(1)
(43)
(61)
(50)
(276)
Impairment losses
‐
(5)
‐
‐
‐
(36)
‐
(41)
Retirements and disposals
‐
‐
‐
‐
21
‐
1
22
Currency translation effects and others
(4)
(129)
(7)
(3)
(44)
(8)
(16)
(211)
December 31
(271)
(3,230)
(104)
(40)
(586)
(213)
(498)
(4,942)
Net book value – December 31
2,571
793
151
10
166
2,716
385
6,792
The net book value at December 31, 2024 and 2023 of goodwill is allocated to Syngenta’s operating segments and other CGUs as
summarized below:
($m)
2024
2023
Allocated to operating segments:
Crop Core
1,278
1,313
Professional Solutions
38
40
Field Crops
21
21
Vegetables
98
103
Flowers
-
13
Total allocated to operating segments
1,435
1,490
Allocated to other individual CGUs:
North America Corn and Soybean seed
316
316
Corn and Soybean seed rest of world
408
467
Other, not individually significant
279
298
Total allocated to other individual CGUs
1,003
1,081
Total goodwill
2,438
2,571
The total amount of goodwill attributable to the Field Crops operating segment is $891 million (2023: $955 million), consisting of $21 million
(2023: $21 million) allocated at the operating segment level and a further $870 million (2023: $934 million) allocated to other individual CGUs
that form part of the overall operating segment as follows: Corn and Soybean seed rest of world $408 million (2023: $467 million), North
America Corn and Soybean seed $316 million (2023: $316 million) and $146 million (2023: $151 million) allocated to Other, not individually
significant CGUs.
The total amount of goodwill attributable to the Crop Core operating segment is $1,411 million (2023: $1,460 million), consisting of $1,278
million (2023: $1,313 million) allocated at the operating segment level and a further $133 million (2023: $147 million) allocated to Other, not
individually significant CGUs that form part of the overall operating segment.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
42
13. Financial and other non-current assets
Financial and other non-current assets at December 31, 2024 and 2023, are as follows:
($m)
2024
2023
Equity securities at fair value through OCI
162
182
Precious metal catalysts
38
44
Royalties receivable
66
92
Long-term marketable securities
218
91
Other non-current receivables
118
118
Post-employment benefit assets (Note 21)
588
349
Long-term derivative financial assets (Note 25)
40
22
Total financial and other non-current assets
1,230
898
14. Associates, joint ventures and transactions and agreements with related parties
Associates and joint ventures
Investments in associates and joint ventures at December 31, 2024 are $156 million (2023: $220 million).
None of Syngenta’s investments in associates and joint ventures are publicly quoted. At December 31, 2024, these investments consist
mainly of $140 million (2023: $144 million) for a 50 percent ownership of the associate CIMO Compagnie Industrielle de Monthey SA,
Switzerland (CIMO), which provides utility services to Syngenta and other occupants of the Monthey manufacturing site.
During 2024, Syngenta’s share of CIMO’s net actuarial gains recognized in OCI is $8 million (2023: $7 million). Other effects on Syngenta’s
consolidated income statement for the periods presented, or any financial statement line items of the above associates and joint ventures
themselves, are not material.
On December 23, 2024, Syngenta disposed of its 40 percent ownership interest in MAS Seeds SA (MAS) which produces and sells seeds,
with Syngenta being one of MAS’s customers, for a cash consideration of $19 million equivalent to the carrying amount of the investment at
the disposal date. Prior to the disposal, an impairment of $7 million was recognized in Other general and administrative (See Note 6). The $19
million cash inflow is included in Proceeds from disposals of intangible and financial assets, in the consolidated cash flow statement.
As reported in Note 3, on December 24, 2024, Syngenta acquired the remaining 60 percent ownership interest in its former associate Intrinsyx
Bio Inc., a US based research and development company involved in the development of biological products.
Transactions between Syngenta and its associates and joint ventures during the year ended December 31, 2024 are as follows:
−
Goods and services provided by Syngenta to its associates and joint ventures $16 million (2023: $18 million)
−
Goods and services provided by associates and joint ventures to Syngenta $128 million (2023: $158 million)
At December 31, 2024, Syngenta has trade and other accounts receivable from associates and joint ventures of $2 million (2023: $11 million)
and accounts payable and other current liabilities to associates and joint ventures of $26 million (2023: $24 million).
A bank overdraft guarantee of $23 million (2023: $21 million) has been provided to an associate.
On January 1, 2012, Syngenta agreed to advance CHF 3 million to CIMO over a 26-year term to help finance the construction of a container
and handling area for use in the utility services provided to Syngenta. At December 31, 2024, the balance outstanding was $2 million (2023:
$2 million).
Syngenta Group
The Syngenta AG group is part of the Syngenta Group, a global leader in agricultural science and innovation, with parent company Syngenta
Group Co. Ltd. The entity, which is domiciled in China, but operationally headquartered in Switzerland, encompasses four business units:
Syngenta Crop Protection, based in Basel, Switzerland; Syngenta Seeds, based in Chicago, USA; Adama, based in Airport City, Israel; and
Syngenta Group China, based in Shanghai, China. Transactions between the Syngenta AG group and fellow subsidiaries, associates and
joint ventures of Syngenta Group, during the year ended December 31, 2024 are as follows:
−
As described in Note 3, during December 2024, Syngenta completed the sale of certain of its subsidiaries based in China to Syngenta
Group Co. Ltd, the parent company of Syngenta Group, for a consideration of $225 million
−
Goods and services provided to fellow subsidiaries, associates and joint ventures of Syngenta Group $908 million (2023: $790 million).
This amount includes $502 million (2023: $307 million) of revenue generated under a repurchase arrangement with a fellow subsidiary
of the Syngenta Group, which is eliminated in these consolidated financial statements. Under this arrangement, raw materials and active
ingredients are supplied to the fellow subsidiary and manufactured goods are repurchased for further sale
−
Goods and services provided by fellow subsidiaries, associates and joint ventures of Syngenta Group $1,361 million (2023: $976
million)
At December 31, 2024, the Syngenta AG group has trade and other accounts receivable from fellow subsidiaries of Syngenta Group of $628
million (2023: $386 million) and accounts payable and other current liabilities to fellow subsidiaries of Syngenta Group of $218 million (2023:
$166 million).
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
43
The following borrowings were raised from fellow subsidiaries of the Syngenta Group:
−
In October 2024, a CNY 10 million loan from a fellow subsidiary of the Syngenta Group with a 2.55 percent interest rate and a term of
one year
−
In October 2024, a CNY 3,790 million loan from a fellow subsidiary of the Syngenta Group with a 2.55 percent interest rate and a term of
three years
−
In October 2023, a CNY 5,000 million loan from a fellow subsidiary of the Syngenta Group with a 2.85 percent interest rate and a term of
three years
−
In March 2023, a CNY 3,500 million loan from a fellow subsidiary of the Syngenta Group with a floating interest rate based on China
Loan Prime Rate (LPR) and a term of three years
−
In October 2022, a $500 million loan from a fellow subsidiary of Syngenta Group with a 5.05 percent interest rate and a term of three
years and six months
−
In July 2022, a $360 million loan with a floating interest rate based on SOFR and a term of three years and in September 2022, the loan
was increased by a further $140 million
During 2021, a Syngenta AG subsidiary entered into a revolving credit facility of up to $1.5 billion with a fellow subsidiary of the Syngenta
Group and in March 2023, the facility was increased to $5 billion. $3,700 million was drawn down during the year (2023: $2,450 million). As at
December 31, 2024, Syngenta’s drawings under the facility were $1,000 million (2023: $2,950 million). As at December 31, 2024, Syngenta
AG subsidiaries had other short term borrowings from subsidiaries of the Syngenta Group of $26 million (2023: $96 million).
In total, as at December 31, 2024, borrowings from fellow subsidiaries of the Syngenta Group were $3.7 billion, including CNY 16.1 billion at
December 31, 2024 exchange rates (2023: $5.8 billion, including CNY 7,884 million at December 31, 2023 exchange rates).
Sinochem Holdings
Transactions between the Syngenta AG group and fellow subsidiaries, associates and joint ventures of Sinochem Holdings, its ultimate parent
company, excluding those with Syngenta Group disclosed above, during the year ended December 31, 2024 are as follows:
−
Goods and services provided to fellow subsidiaries, associates and joint ventures of Sinochem Holdings $2 million (2023: $3 million)
−
Goods and services provided by fellow subsidiaries, associates and joint ventures of Sinochem Holdings $8 million (2023: $4 million)
At December 31, 2024, the Syngenta AG group has $nil accounts receivable and $1 million accounts payable with fellow subsidiaries of
Sinochem Holdings (2023: $nil accounts receivable and $nil accounts payable).
At December 31, 2024, $1,550 million of borrowings were from China state-owned banks, which are controlled by the same government as
Sinochem Holdings. One of these state-owned banks is also a hedging counterparty (see Note 24 for a description of risk management and
hedge accounting). There are no other individually or collectively significant transactions with China state-owned enterprises other than
Sinochem Holdings.
Other related party transactions
Transactions and balances between Syngenta and its employee post-retirement benefit plans are disclosed in Note 21.
Key management personnel
Key management personnel are considered to be the members of the Global Leadership Team and the Board of Directors of both Syngenta
AG and the Syngenta Group. The Global Leadership Team is collectively responsible for the active leadership of both Syngenta AG and the
Syngenta Group under the guidance of the Syngenta Group Board of Directors. The Syngenta Group Board of Directors includes members of
key management of Sinochem Holdings, the ultimate parent of Syngenta AG.
The compensation expense incurred by the Syngenta AG group is as follows for the years ended December 31, 2024 and 2023. These
charges cover most members of the Global Leadership Team and those members of the Board of Directors of Syngenta AG that received
compensation for their services from the Syngenta AG group. Two members of the Global Leadership Team did not render any services to
Syngenta AG for which they received compensation from the Syngenta AG group. During 2024 and 2023, due to changes in the Global
Leadership Team, there are transition periods where different numbers of active members have been included. As at December 31, 2024 and
2023, the Global Leadership Team had nine members.
($m)
2024
2023
Fees, salaries and other short-term benefits
17
40
Post-employment benefits
1
1
Total
18
41
Those members of the Global Leadership Team and the Syngenta AG Board of Directors that are remunerated by Syngenta AG, receive
their cash compensation in Swiss francs, except one member of the Leadership Team who is partly remunerated in Chinese yuan and one
member of the Leadership Team who is based in the US and is paid in US dollars. The compensation amounts presented above have been
converted into US dollars using the average currency exchange rate in effect during each year reported (see Note 23).
Post-employment benefits include healthcare, disability, death in service and pension costs.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
44
15. Trade accounts payable and contract liabilities
The contractual maturities of trade accounts payable at December 31, 2024 and 2023 are as follows:
($m)
Total
0–90 days
90–180 days
More than 180 days
2024
5,654
2,892
509
2,253
2023
5,929
3,183
449
2,297
The carrying amount of trade accounts payable includes $25 million (2023: $25 million) that are due more than one year from the balance
sheet date.
Trade accounts payable include $380 million (2023: $349 million) arising from reverse factoring arrangements between suppliers and financial
institutions. The impact from currency translation differences was $48 million decrease (2023: $32 million increase) in trade accounts payable
under reverse factoring arrangements. The carrying amounts of the trade accounts payables for which suppliers have already received
payment from the financial institutions under the supplier financing arrangement were $358 million. The trade accounts payable included
under the supplier financing arrangements have payment due dates ranging from 60 to 220 days from the invoice date. Comparable trade
accounts payable that are not part of supplier financing arrangements have payment due dates ranging from 30 to 180 days from the invoice
date which is considered in line with the agricultural industry standard.
Under supplier finance arrangements, participating suppliers may elect, without Syngenta’s influence, to receive early payment from the
financial institutions for invoices owed and Syngenta makes a payment to the financial institutions on the original invoice due date, regardless
of whether the supplier has elected to receive early payment or not. Syngenta provides no guarantees to the financial institutions and incurs
no interest charges payable to the financial institutions on the payments made to suppliers. The amounts payable to the suppliers are not
derecognized because the original liability is not substantially modified on entering into the arrangements and the new liability carries the
characteristic of trade accounts payable. Syngenta has presented these under trade accounts payable because they represent liabilities to
pay for goods and services, formally agreed with suppliers and are part of the normal operating cycle. The settlements to the financial
institutions are included within operating cash flows because they continue to be part of the normal operating cycle and represent payments
for the purchase of goods and services.
Included within trade accounts payable are rebates payable and provisions for sales returns. Movements in these liabilities with customers for
the years ended December 31, 2024 and 2023 are as follows:
($m)
2024
2023
January 1
2,817
2,861
Changes in liabilities recognized in the period from:
Products supplied in the period
3,843
3,887
Prior period estimates
(75)
(163)
Rebates settled and product returns received
(3,826)
(3,792)
Decrease due to divestments
(36)
‐
Currency translation effects and other
(136)
24
December 31
2,587
2,817
Contract liabilities consist of advance payments from customers and deferred revenue, mainly from customer loyalty programs.
Movements in contract liabilities for the years ended December 31, 2024 and 2023 are as follows:
($m)
2024
2023
January 1
939
1,079
Additions due to acquisitions
1
3
Advance payments received from customers
2,735
3,606
Performance obligations recognized in the period
99
87
Revenue recognized in the period from:
Amounts included in the contract liability at the beginning of the period
(910)
(1,100)
Contract liabilities applied to current period
(1,799)
(2,726)
Decrease due to divestments
(25)
‐
Currency translation effects and other
(71)
(10)
December 31
969
939
At December 31, 2024, contract liabilities for customer loyalty programs are $93 million (2023: $120 million) and will be recognized as revenue
as the promised goods and services are transferred to the customers, which is expected to occur over the next three years.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
45
16. Current financial debt and other financial liabilities
Current financial debt and other financial liabilities at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Short-term financial debt:
Bank and other financial debt
1,651
3,606
Receivables factored with recourse
20
28
Total short-term financial debt
1,671
3,634
Current portion of long-term financial debt:
Unsecured bonds
732
567
Liabilities to banks and other financial institutions
502
1,000
Lease liabilities
134
127
Total current portion of long-term financial debt (Note 18)
1,368
1,694
Total current financial debt
3,039
5,328
Short-term derivative and other financial liabilities
451
649
Total
3,490
5,977
Included in Bank and other financial debt are borrowings of $1,026 million (2023: $3,046 million) from fellow subsidiaries of the Syngenta
Group, as described in Note 14.
The contractual maturities of current financial debt at December 31, 2024 and 2023 are as follows:
($m)
Total
0–90 days
90–180 days
180 days–1 year
2024
3,039
1,571
750
718
2023
5,328
3,387
1,165
776
The maturities of short-term derivatives are presented in Note 24. The maturities of other financial liabilities are as follows: $264 million
0-90 days; $12 million 90-180 days and $51 million 180 days-1 year (2023: $95 million 0-90 days; $43 million 90-180 days and $14 million
180 days-1 year).
Information about fair values of financial liabilities is presented in Note 25.
17. Other current liabilities
Other current liabilities at December 31, 2024 and 2023 consist of the following:
($m)
2024
2023
Accrued short-term employee benefits
451
544
Taxes other than income taxes
141
162
Social security and pension contributions
69
74
Advance payments from barter agreements
133
41
Other payables
177
239
Other accrued expenses
201
292
Total
1,172
1,352
The maturities of other current liabilities are as follows. For liabilities without a contractual maturity date, the analysis represents the estimated
timing of cash outflows.
($m)
Total
0–90 days
90–180 days
180 days-1 year
2024
1,172
850
112
210
2023
1,352
904
258
190
18. Financial debt and other non-current liabilities
In April 2024, Syngenta repaid two $500 million term loans at maturity and raised a $1 billion floating rate loan maturing in 2027. In August
2024, Syngenta repaid a CHF 225 million bond at maturity. In October 2024, Syngenta rolled over two term loans, one for $250 million
maturing in April 2025 and one for $300 million maturing in April 2026, into a single $550 million loan maturing in October 2027. This
transaction was non-cash. In November 2024, Syngenta repaid a CHF 250 million bond at maturity and issued a CHF 120 million bond
maturing in November 2027.
In April 2023, Syngenta raised a $300 million floating rate loan maturing in 2026 and repaid a $1,000 million bond at maturity. In October
2023, Syngenta repaid a CHF 265 million bond at maturity.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
46
Financial debt and other non-current liabilities at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
$ private placement notes
66
66
0.625% CHF bond 2024
‐
269
1.625% CHF bond 2024
‐
298
4.892% USD bond 2025
677
677
3.375% Eurobond 2026
942
1,005
0.700% CHF bond 2026
154
167
1.250% Eurobond 2027
520
552
1.500% CHF bond 2027
132
‐
5.182% USD bond 2028
336
336
2.125% CHF bond 2029
166
179
4.375% $ Notes 2042
20
20
5.676% USD bond 2048
153
153
Unsecured bond issues and US private placement notes
3,166
3,722
Liabilities to banks and other borrowings
4,587
4,649
Lease liabilities (Note 22)
1,368
1,191
Less: current portion of financial debt (Note 16)
(1,368)
(1,694)
Total non-current financial debt
7,753
7,868
Non-current derivative financial liabilities
243
198
Other non-current liabilities and deferred income
169
253
Total
8,165
8,319
Included in Liabilities to banks and other borrowings are borrowings of $2,702 million (2023: $2,738 million) from fellow subsidiaries of the
Syngenta Group, as described in Note 14.
Information about fair values of financial liabilities is presented in Note 25.
Other non-current liabilities and deferred income relates to license and acquisition agreements with several counterparties and long-term
incentive programs. Of the $169 million, related cash flows of $60 million (2023: $134 million) are payable between one and five years, $20
million (2023: $32 million) of deferred income will be recognized as related licensed product sales occur and $89 million (2023: $87 million) of
government grants will be amortized over periods between 5 and 30 years.
All non-current debt ranks equally. Covenants are monitored on a regular basis and Syngenta is in full compliance with all applicable
covenants.
Syngenta AG has fully and unconditionally guaranteed on a senior unsecured basis the due and punctual payment of the principal of and any
premium and interest on the debt securities issued by Syngenta Finance AG, which is a direct, wholly owned finance subsidiary, and
Syngenta Finance N.V., which is an indirect, wholly owned finance subsidiary. The guarantees rank equally with all of Syngenta’s other
unsecured and unsubordinated debt. No other subsidiary of Syngenta guarantees such debt securities.
19. Provisions, commitments and contingencies
Provisions
Provisions at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Restructuring provisions
125
29
Employee benefits:
Pensions (Note 21)
149
170
Other post-retirement benefits (Note 21)
12
20
Other long-term employee benefits
68
58
Environmental provisions
138
156
Provisions for legal and product liability settlements
90
224
Other provisions
77
97
Total
659
754
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
47
($m)
2024
2023
Current portion of:
Restructuring provisions
112
11
Employee benefits
5
9
Environmental provisions
15
12
Provisions for legal and product liability settlements
19
136
Other provisions
33
48
Total current provisions
184
216
Total non-current provisions
475
538
Total
659
754
The timing of payment in respect of non-current provisions is, with few exceptions, not contractually fixed and cannot be estimated with
certainty. Key assumptions and sources of estimation uncertainty are discussed in Note 2.
At December 31, 2024, Syngenta recognized $4 million (2023: $4 million) in Financial and other non-current assets in respect of
virtually certain reimbursements related to the above provisions. During 2023, Syngenta recognized and received as part of Other General
and Administrative $30 million of insurance reimbursement relating to product liability claims.
Syngenta has recorded provisions for environmental liabilities at some currently or formerly owned, leased and third-party sites throughout the
world. These provisions are estimates of amounts payable or expected to become payable and take into consideration the number of other
potentially responsible parties at each site and the identity and financial positions of such parties in light of the joint and several nature of
certain of the liabilities. The material components of Syngenta’s environmental provisions are based on a risk assessment involving
investigation of the various sites.
It is reasonably possible that Syngenta may be required to make expenditures in excess of the established provisions to remediate
environmental liabilities at some currently or formerly owned, leased and third-party sites throughout the world. Further, in cases where it is not
possible to estimate reliably the remediation costs that may be incurred in the future for environmental damage that has occurred at sites
currently in operation and having no present obligation for environmental damage remediation, no provisions have been made. This is
because it is neither possible to determine a time limit beyond which the sites will no longer be operated, nor what remediation costs may be
required upon their eventual closure.
In the USA, Syngenta and/or its indemnitors or indemnitees, have been named under federal legislation (the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended) as a potentially responsible party (“PRP”) in respect of several sites.
Syngenta expects to be indemnified against a proportion of the liabilities associated with a number of these sites by the sellers of the
businesses associated with such sites and, where appropriate, actively participates in or monitors the clean-up activities at the sites in respect
of which it is a PRP.
Provisions for legal and product liability settlements, all of which are individually immaterial, relate to various legal proceedings incidental to the
normal conduct of Syngenta’s business, including proceedings involving product liability claims, commercial claims, employment and wrongful
termination claims, patent infringement claims, competition law claims, indirect tax assessment claims, regulatory compliance claims, waste
disposal claims and tort claims relating to the release of chemicals into the environment.
Other provisions mainly comprise provisions for long-term contractual obligations under license and other agreements.
Movements in provisions for the year ended December 31, 2024 are as follows:
($m)
January 1
Charged to
income
Release of
provisions
credited to
income
Payments
Actuarial
(gains)/
losses
Transfers
offset in
defined
benefit
pension
assets
Currency
translation
effects/
other
December
31
Restructuring provisions:
Employee termination costs
15
165
‐
(81)
‐
(2)
97
Other third-party costs
14
45
(5)
(15)
‐
(11)
28
Employee benefits:
Pensions
170
83
(4)
(153)
18
44
(9)
149
Other post-retirement benefits
20
1
(5)
(10)
(3)
14
(5)
12
Other long-term employee benefits
58
6
(3)
(7)
‐
‐
14
68
Environmental provisions
156
7
(1)
(18)
‐
‐
(6)
138
Provisions for legal and product liability
settlements
224
17
(26)
(119)
‐
‐
(6)
90
Other provisions
97
31
(25)
(12)
‐
‐
(14)
77
Total
754
355
(69)
(415)
15
58
(39)
659
Within restructuring provisions, employee termination costs include severance, pension and other costs directly related to affected employees
and other third-party costs principally include payments for early termination of contracts with third parties related to redundant activities. Other
movements include provisions acquired through the business combinations and provisions disposed due to the divestment described in
Note 3.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
48
Commitments
Commitments for the purchase of property, plant and equipment and intangible assets at December 31, 2024 are $153 million
(2023: $171 million).
At December 31, 2024 and 2023, Syngenta had entered into long-term commitments to purchase minimum quantities of certain raw
materials, long-term research agreements with various institutions to fund various research projects, and other commitments. The estimated
timing of minimum future committed payments is as follows:
2024
2023
($m)
Materials purchases
Other
Materials purchases
Other
Within one year
1,350
74
1,823
84
From one to two years
218
34
265
31
From two to three years
148
17
140
16
From three to four years
39
10
65
8
From four to five years
19
4
5
8
After more than five years
14
10
4
2
Total
1,788
149
2,302
149
Syngenta’s sales are made subject to normal warranties, which cover product technical specifications and, in some cases, products’
performance effect on grower crop yields. Certain license agreements indemnify the other party against liabilities arising from claims related
to the intellectual property licensed to or by Syngenta. Leases might include a clause where Syngenta has to cover any damage or losses that
its actions cause to either the lessor or lessee. Syngenta has also issued warranties to purchasers of businesses or product lines relating to
events that arose before the sales. It is not possible to predict the maximum future payments possible under these or similar provisions
because it is not possible to predict whether any of these contingencies will occur.
Syngenta has obtained licenses from others for the rights to sell certain products, or products containing certain technology, under
agreements which require Syngenta to pay royalties based on its future sales of those products or that technology.
Contingencies
Litigation matters
Litigation is subject to many uncertainties, and the outcome of individual matters cannot be predicted with certainty. Consequently, it is
reasonably possible that the final resolution of some of these matters could require Syngenta to make expenditures in excess of the
established provisions that are reported above. Further, the range of amounts involved, as well as the period of time over which many of these
expenditures may be made, cannot be reasonably estimated.
Syngenta maintains general liability insurance, including product liability insurance, covering claims on a worldwide basis with coverage limits
and retention amounts which management believes to be adequate and appropriate in relation to Syngenta’s businesses and the risks to
which it is subject.
Significant recent or on-going legal proceedings are described below.
VIPTERA™
Beginning on September 12, 2014, several thousand lawsuits were filed against Syngenta in state and federal courts in the United States by
plaintiffs seeking damages from Syngenta for commercializing its AGRISURE VIPTERA® (MIR162) and DURACADE™ corn seed in the
United States without having obtained import approval from China for those products. In September 2017, plaintiffs and Syngenta reached a
settlement to resolve all claims on behalf of all U.S. non-Viptera and Viptera producers as well as grain elevators and ethanol plants and the
settlement is now final.
The settlement of the producer cases did not cover claims of the exporter plaintiffs such as Cargill, ADM, Louis Dreyfus, Trans Coastal Supply
Company, Inc. (“Transcoastal”), The DeLong Company (“DeLong”), and Agribase International, Inc. ADM and Syngenta reached in
December 2017 a settlement of the Viptera litigation that ADM had brought against Syngenta in Louisiana Court. Louis Dreyfus and Syngenta
reached a settlement in May 2019. Agribase and Syngenta reached a settlement in February 2020. Transcoastal and Syngenta reached a
settlement in October 2020. In August 2023, Syngenta and Cargill executed a settlement agreement regarding the Viptera litigation which
Cargill had brought against Syngenta in Louisiana. As a result, Cargill’s claims against Syngenta regarding its AGRISURE VIPTERA® and
DURACADE™ corn seed have been dismissed. The United States District Court in Kansas remanded the DeLong lawsuit for trial to the
United States District Court for the Western District of Wisconsin. In April 2024, DeLong and Syngenta executed a settlement agreement.
Payment was made on May 21, 2024 and the lawsuit was dismissed. The agreement expressly stated that the settlement was not an
admission of liability and was strictly a business decision. The DeLong settlement concluded all remaining Viptera litigation in the U.S.
In December 2015, a claim was filed in Ontario, Canada by a proposed representative plaintiff on behalf of a putative class comprising all
farmers in Canada against Syngenta Canada Inc. and Syngenta AG seeking damages from Syngenta for commercializing its AGRISURE
VIPTERA® (MIR162) and DURACADE™ corn seed in the North American corn market without having obtained import approval from China
for those products. The causes of action referred to in the lawsuit include negligence and negligent misrepresentations. The allegations
include claims that Syngenta actively misled farmers about the importance of the Chinese market, the timing and substance of the application
for approval in China, its ability to channel VIPTERA™ corn into non-Chinese markets and its ability to contain the infiltration of VIPTERA™
corn to the North American corn supply. The proposed representative plaintiff is seeking on behalf of the putative class general and special
damages of 300 million Canadian dollars ($209 million at December 31, 2024, exchange rates), punitive and aggravated damages of 100
million Canadian dollars ($70 million at December 31, 2024, exchange rates), the costs of distributing all monies awarded to class members,
pre-judgment interest, and costs on a substantial indemnity basis. Syngenta’s motion to strike this action was argued in April 2018, and on
November 28, 2018, the judge dismissed the plaintiff’s action in its entirety. The plaintiff appealed this decision. The appeal was heard in June
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
49
2019 and while the Court of Appeal denied plaintiff’s appeal of the lower court’s decision dismissing the claim as to the negligent
misrepresentation and Competition Act claims, it granted the appeal as to the premature commercialization claim which would allow the
lawsuit to continue as to that claim alone. Syngenta filed the documents necessary to seek leave to appeal the Court of Appeal’s decision to
the Supreme Court of Canada. On December 10, 2020, Syngenta’s application for leave to appeal to the Supreme Court of Canada was
denied. The parties proceeded to the certification stage of the proceeding. The motion for certification was heard on May 10-12, 2021. On
September 29, 2021, the Superior Court certified the lawsuit. The certification decision was procedural and made no determination on the
merits of the case. On January 15, 2024, the parties argued Syngenta’s motion for summary judgment. That motion was denied on October
28, 2024 and Syngenta has filed a motion for leave to appeal. Syngenta is awaiting the court’s decision.
On February 14, 2017, a similar action was filed in Quebec against Syngenta Canada Inc. and Syngenta AG. The Petitioners are seeking
essentially the same relief as in the Ontario action on behalf of all corn producers conducting business in Quebec who sold corn for
commercial purposes after November 18, 2013. They allege that Syngenta was negligent and engaged in illegal commercial practices,
contrary to the Competition Act and the Civil Code of Quebec, and that damages (amount unspecified) will continue to accrue until the corn
business between North America and China is re-established at the levels that existed before Syngenta’s negligence occurred. Punitive
damages, pre-judgment interest and costs are also claimed. Syngenta has entered an appearance in the action. No other steps have been
taken.
Syngenta is continuing to vigorously defend against the Canadian actions and strongly believes that they are without merit.
Canada beekeeper lawsuits
In September 2014, a claim was filed in Ontario, Canada by two proposed representative members on behalf of a putative class comprising
all beekeepers who have owned or continue to own and operate honey producing, pollinating, and/or queen bee rearing businesses in
Canada since January 1, 2006, against a number of Syngenta legal entities together with certain entities of a second manufacturer of
neonicotinoid insecticides. Plaintiffs allege negligence through the sale by that manufacturer and by Syngenta of products containing such
insecticides in the knowledge that they would be injurious to bees and by virtue of misrepresentations and concealment relating thereto.
Plaintiffs claim 400 million Canadian dollars ($278 million at December 31, 2024, exchange rates) general and 50 million Canadian dollars
($35 million at December 31, 2024, exchange rates) punitive damages. The pleadings in the Ontario proceedings were subsequently
amended by plaintiffs’ counsel to add waiver of tort and unlawful conspiracy to the single cause of action, negligence, which was previously
pleaded. Both of the additional causes of action are ancillary to and largely dependent on the negligence claim. The class has not yet been
authorized.
In October 2014, a Motion for Authorization was filed by the same firm of plaintiffs’ counsel in Montréal, Quebec seeking permission to bring a
similar class proceeding in that province. The proposed representative plaintiff operates a family business specialized in the breeding of queen
bees. The Quebec litigation closely resembles the original Ontario lawsuit claiming negligence except that, rather than a nationwide class, it
alleges a class limited to Quebec. At this early stage, damages are unspecified. The Motion for Authorization was argued in November 2017.
The Quebec class has been authorized on August 20, 2018, and notices have been sent to potential class members. Plaintiffs’ motion to add
Syngenta AG as a defendant has been granted.
Syngenta will defend these lawsuits, the claims in which are without foundation.
Paraquat Parkinson’s disease litigation
Since September 2017, approximately 9,100 lawsuits, including more than 1,600 lawsuits that have been voluntarily dismissed or otherwise
resolved, have been filed against Syngenta in state and federal courts in the United States by plaintiffs seeking damages from Syngenta
arising from their use of or exposure to Syngenta’s paraquat products. Plaintiffs allege that their use or exposure to Syngenta’s paraquat
products has caused them to develop Parkinson’s disease and/or kidney disease. The cases name Syngenta AG, Syngenta Crop Protection,
LLC, and Syngenta Seeds, and variously named alleged distributors of paraquat as additional defendants.
While the counts raised in each complaint differ slightly by plaintiff and jurisdiction, they tend to include: (1) Strict Liability - Design Defect; (2)
Strict Liability - Failure to Warn; (3) Negligence; (4) Public Nuisance; (5) Violation of Consumer Fraud & Deceptive Business Practices Acts;
(6) Breach of Implied Warranty of Merchantability; and (7) Punitive Damages. Certain suits also include claims by the spouses of individuals
with Parkinson’s disease for Loss of Consortium. The pending state court cases are in California, Delaware, Illinois, Pennsylvania,
Washington, and West Virginia. The pending federal court cases were filed in various U.S. District Courts, though the majority of new cases
are being filed directly in the Southern District of Illinois as part of the pending Multi-District Litigation.
Multi-District Litigation (MDL). On June 7, 2021, the Judicial Panel on Multi-District Litigation determined that consolidation is appropriate
and that the pending actions would be transferred to the Southern District of Illinois for pretrial purposes. The first Case Management Order,
issued June 10, 2021, stayed all responsive pleading and related deadlines for the coordinated cases. The Court has also appointed a
Special Master to oversee discovery.
On February 14, 2022, the Court granted the defendants' motions to dismiss as to all public nuisance claims and certain state consumer
protection claims and denied the motions to dismiss as to the other causes of action without prejudice. On April 13, 2022, Syngenta submitted
answers in sixteen potential bellwether cases identified by the Court. On the same date, the Court selected six of those bellwether plaintiffs for
further case-specific discovery; that discovery has been completed. On August 17, 2022, the Court selected twenty additional plaintiffs and
ordered limited discovery and depositions in each of those cases to collect representative data and evaluate claims. On August 30, 2022, the
Court granted motions to remand for six cases that were originally filed in Delaware state court and removed to the MDL- additional remand
orders have been issued in other state court proceedings since that date. On July 28, 2023, the parties completed summary judgment and
Daubert briefing, and a hearing on those motions was held from August 21-24, 2023. At the conclusion of the hearing, the MDL court
canceled the trial scheduled to begin in October 2023. On January 22, 2024, the Court ordered additional limited discovery of 25 plaintiffs.
Since that order, the Court has ordered discovery of additional replacement plaintiffs in response to dismissals filed by some of the plaintiffs
selected in the January 22, 2024, and dismissals filed by replacement plaintiffs.
On April 17, 2024, the MDL court granted Defendants’ Motion to Exclude the expert testimony of the sole expert on the critical issue of general
causation that had been presented by the Plaintiffs in the four initial bellwether cases selected for trial. On the same date, the MDL court also
granted Defendants’ Joint Motion for Summary Judgment dismissing those four cases due to the Plaintiffs’ inability to establish a causal link
between occupational paraquat exposure and Parkinson’s disease without the proffered expert testimony. Plaintiffs have since filed a notice of
appeal of these dismissals to the 7th Circuit Court of Appeals; briefing was completed on October 16, 2024 and oral argument was held on
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
50
February 12, 2025 and a decision is expected in the coming months. Also on April 17, 2024, the MDL court ordered the parties to select 16
member cases from the global Plaintiff pool for limited fact discovery, following which the court will issue a Case Management Order
addressing discovery and trial dates. On August 6, 2024, the MDL court selected 10 additional bellwether plaintiffs for case-specific discovery
but no trial dates have been set.
New cases will continue to be transferred to the MDL as tag-along actions as they are filed, and certain new cases are being filed directly into
the MDL proceedings pursuant to the first Case Management Order.
Illinois State Court Claims. Two additional cases are pending in Illinois state courts, and Syngenta has filed its answers as to both following
denial of its motions to dismiss. The cases are in Vermillion and St. Clair County, Illinois. Discovery is in progress in the St. Clair County suit
and trial is scheduled to begin on March 16, 2026. In February 2024, an amended complaint was filed in the Vermillion County case to replace
the plaintiff with the plaintiff’s estate after he passed away.
California Consolidated Proceeding. Beginning in April 2019, plaintiffs in California state court filed complaints against Syngenta AG and
Syngenta Crop Protection LLC and variously name Chevron USA, Inc., Growmark, Inc., and/or Wilbur-Ellis Company, LLC (or subsidiaries
and/or affiliates thereof) as additional defendants. The ten California cases filed in 2019 have been consolidated for pretrial purposes.
Defendants demurred to the complaints in the consolidated California cases on the grounds of federal preemption and primary jurisdiction.
Defendants’ demurrer was denied by order dated December 23, 2019, except as to Count IV (the California Consumer Legal Remedies Act
claim), which was dismissed, and on January 21, 2020, Syngenta filed its answers in the consolidated California cases. The settlement,
discussed in further detail below, covers and conditionally settles the ten California state court claims that were pending. Additional cases
were filed since the consolidation. On December 7, 2021, the Court entered an order coordinating the state court proceedings with the MDL.
On March 15, 2022, the Court selected four bellwether plaintiffs from among the potential selections proposed by each side. Since bellwether
selection, one plaintiff has passed away, and an additional bellwether plaintiff’s case was withdrawn after a medical exam concluded that they
did not have Parkinson’s disease. The parties completed summary judgment and Sargon briefing. On November 26, 2024, the Court granted
exclusion of the plaintiffs’ sole general causation expert under California law. The first state court trial was scheduled to begin on January 8,
2024, but that trial date has been adjourned. The case to be tried is still to be determined.
Additional State Court Claims. Additional complaints, which raise nearly identical claims as the previously filed cases, have been filed in
state courts; certain state court proceedings have been removed to federal court and transferred to the MDL. There are currently active suits
pending in state court in Delaware, Pennsylvania, Washington, and West Virginia. The Delaware cases remain in the pleading or early
discovery stage and coordination efforts and responsive pleadings have been filed or are otherwise in development. On November 23, 2021,
one of the pending Washington state court cases, Smith v. Syngenta AG, was dismissed with prejudice in response to Syngenta's motion to
dismiss, but the dismissal was reversed on appeal. Discovery has been completed and pre-trial briefing is in progress. A trial is scheduled to
begin on May 5, 2025.
On May 10, 2022, the court in Philadelphia County, Pennsylvania issued an order coordinating the pending Pennsylvania state court actions
for pre-trial proceedings. On June 6, 2022, the Court issued a case management order temporarily staying all responsive pleading deadlines
and dispositive motions until further order of the court. Discovery deadlines have also been stayed while additional conferences occur. On
November 9, 2023, the Court entered a Case Management Order which set out a schedule for bellwether selection, discovery, and motions
practice. Defendants’ preliminary objections to Plaintiffs’ proposed Long Form Complaint were denied with respect to Syngenta Crop
Protection LLC but granted with respect to Syngenta AG on jurisdictional grounds. Discovery is complete for the first tranche of 10 bellwether
cases, and the initial cases have been selected for trial. Four trials have been scheduled for 2025 and 2026, with the first trials set to begin
June 2, 2025 and the second on August 4, 2025.
Additional cases have been filed in the Delaware Superior Court including some cases with multiple plaintiffs. On May 31, 2024, the Delaware
court granted-in-part and denied-in-part Defendants’ motion to dismiss. Specifically, the Court granted the motion to dismiss certain implied
warranty claims and strict products liability claims based on the applicable statutes of limitation, statutes or repose, or preemption; certain
other implied warranty and strict products liability claims were dismissed based on a failure to state a claim or otherwise meet state-specific
pleading requirements, and punitive damages claims by certain plaintiffs were dismissed for failure to state a claim. The Court denied
Defendants’ motion as to joinder. No case schedule has been set, nor have the cases been formally consolidated.
Canadian Litigation. Lawsuits alleging that Syngenta’s paraquat products have caused their Parkinson’s disease have been filed by plaintiffs
seeking class certification in Quebec, Ontario, and British Columbia. The Plaintiffs proceeded first in Quebec seeking to authorize a national
class. Syngenta opposed the motion, and maintained that if authorized, the class should be limited to Quebec. The authorization motion was
heard June 6, 2022, and a Quebec only class was authorized on July 27, 2022. In February 2023, the court granted the plaintiff’s motion to
discontinue the Ontario proceeding to pursue the action in British Columbia. On August 9, 2024, the British Columbia Supreme Court issued a
decision authorizing a Canadian class (excluding Quebec). Syngenta is appealing the decision, in part, related to claims certified in battery
and of certain evidentiary admissibility issues.
Syngenta will continue to defend all these lawsuits, the claims in which are without merit.
Federal Trade Commission and related litigation
On September 29, 2022, the Federal Trade Commission (“FTC”) and ten states filed a complaint in the United States District Court for the
District of North Carolina against Syngenta Crop Protection AG, Syngenta Corporation, Syngenta Crop Protection, LLC., and Corteva, Inc.
alleging violations of federal and state antitrust laws. The allegations cover what the complaint asserts are “many years,” and involve the
distributor loyalty programs of Syngenta Crop Protection, LLC. and Corteva, Inc. and claim that the programs are used to exclude generic
competition. The complaint sought to enjoin the defendants from engaging in the alleged unlawful conduct, now and in the future, regarding all
crop protection products and active ingredients. The complaint further sought unspecified monetary and other equitable relief, as well as civil
penalties on behalf of the state plaintiffs under their respective state laws, and costs including attorneys’ fees. Additional complaints were
subsequently filed in the federal courts in Indiana, North Carolina, and Mississippi by individuals against the Syngenta entities, Corteva, Inc.
and other unrelated parties alleging violations of federal and state antitrust laws as well as other statutes and common law (“the Individual
Lawsuits”). The allegations involved the loyalty programs which were the subject of the FTC complaint. The Individual Lawsuits seek class
certification and compensatory and treble damages (as yet unspecified) as well as injunctive relief, costs, attorneys’ fees and post and pre-
judgment interest.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
51
On December 12, 2022, Syngenta filed a motion to dismiss the FTC complaint. Following the filing, the FTC amended its complaint in an effort
to address the deficiencies pointed out in Syngenta’s motion. The amended complaint also added two additional states as plaintiffs, bringing
the total number of state plaintiffs to twelve. Syngenta has filed a revised motion to dismiss directed at the amended complaint. On December
30, 2022, the state of Arkansas filed a separate lawsuit in federal court in Arkansas modeled on the FTC complaint.
Plaintiffs in some of the Individual Lawsuits moved the United States Judicial Panel on Multi-District Litigation (the “JPML”) to transfer and
consolidate the Individual Lawsuits in the Southern District of Indiana (the “MDL Motion”). Syngenta and other defendants filed a response to
the MDL Motion requesting that the JPML instead transfer all Individual Lawsuits to the Middle District of North Carolina. The JPML held a
hearing on the MDL Motion on January 26, 2023. On February 6, 2023, the JPML issued an order centralizing the Individual Lawsuits in the
Middle District of North Carolina. The individual plaintiffs and Syngenta agreed that briefing on Syngenta's motion to dismiss the private
plaintiffs' lawsuits would wait until after a decision on the motion to dismiss the FTC lawsuit. Syngenta filed a motion to transfer the Arkansas
lawsuit to the MDL. On January 17, 2024, that motion was denied.
Syngenta’s motion to dismiss the FTC complaint was argued on December 2, 2023. The motion was denied on January 12, 2024. Syngenta
filed its motions to dismiss the individual plaintiffs’ lawsuits on March 11, 2024, and the Arkansas litigation on April 27, 2024. On January 29,
2025, the United States District Court for the District of North Carolina issued its decision regarding the individual plaintiffs’ lawsuits. The court
granted the motion in part and denied it in part, striking the federal damage claims and some of the state law claims. The federal claims for
injunctive relief and several state law claims remain. Syngenta is awaiting a decision on the motion to dismiss the Arkansas lawsuit. Discovery
on these lawsuits, including that brought by the FTC, are underway. Depositions will take place in 2025.
Syngenta believes that the allegations of these complaints are totally without merit and will continue to defend the lawsuits.
Tax matters
Significant management judgment is required to estimate the tax liabilities related to the eventual outcome of reviews and audits by tax
authorities of tax returns filed by Syngenta’s subsidiaries. Tax returns filed by many of Syngenta’s subsidiaries during the past several years
are either currently under examination by tax authorities or are open for future examination until expiry under statutes of limitation. In
Syngenta’s opinion, the likelihood is remote that a material amount in excess of recorded provisions will result from the resolution of any such
examination or case. Syngenta is also subject to certain tax claims pending before the judiciary. See Note 2 “Uncertain tax positions” for detail
regarding on-going transfer pricing disputes in Brazil. Syngenta believes it will successfully defend its position in these disputes. However, it is
reasonably possible that actual outcomes and settlements may differ significantly from the estimated liabilities shown in the consolidated
balance sheet for income taxes and in Note 17 for other taxes.
Contingencies summary
Given the inherent difficulties in estimating liabilities relating to post-employment benefit obligations, litigation, tax, environmental and certain
other matters due to uncertainty concerning both the amount and timing of future expenditures, it is reasonably possible that additional costs
may be incurred materially in excess of provisions recorded for such liabilities. Such expenditures, in excess of established provisions, could
have a material effect on Syngenta’s consolidated operating results and cash flows for a particular reporting period, but management does not
believe they will have a materially adverse effect on Syngenta’s consolidated financial position or liquidity, although there can be no
assurances in this regard.
20. Notes to the consolidated cash flow statement
Non-cash and other reconciling items included in income before taxes
Non-cash and other reconciling items included in income before taxes for the years ended December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Depreciation, amortization and impairment of:
Property, plant and equipment (Note 11)
508
446
Right-of-use assets (Note 22)
148
133
Intangible assets (Note 12)
531
317
Financial assets
4
‐
Less: depreciation and amortization capitalized (Note 12)
(45)
(43)
Deferred revenue and other gains
(29)
(7)
Gains on disposal of non-current assets
(118)
(29)
Charges in respect of pension provisions (Note 19)
79
68
Charges in respect of other provisions (Note 19)
207
123
Financial expense, net
737
1,142
Gains on hedges reported in operating income
(38)
(44)
Income from associates and joint ventures
‐
(8)
Total
1,984
2,098
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
52
Change in liabilities arising from financing activities
Movements in assets and liabilities arising from financing activities for the year ended December 31, 2024 are as follows:
2024 ($m)
January 1
Net cash flows
from/ (used for)
financing
activities
Changes
in fair value
Other
Currency
translation
effects
December 31
Bonds and US private placement notes
(Note 18)
3,722
(406)
‐
‐
(150)
3,166
Lease liabilities (Note 18)
1,191
(156)
‐
380
(47)
1,368
Other long-term debt (Note 18)
4,649
15
‐
1
(78)
4,587
Short-term debt (Note 16)
3,634
(1,881)
‐
(41)
(41)
1,671
Total financial debt
13,196
(2,428)
‐
340
(316)
10,792
Bond hedges net liability/(asset)
138
‐
101
(8)
‐
231
Margin deposit liability
3
242
‐
‐
‐
245
Margin deposit asset
(283)
105
‐
‐
‐
(178)
Net liabilities arising from financing
activities
13,054
(2,081)
101
332
(316)
11,090
Other movements include $227 million of new leases, $157 million of lease liabilities recognized on sale and leaseback transactions, $25
million short-term debt acquired with Produtécnica Nordeste Comércio de Insumos Agrícolas Ltda, $96 million debt divested (including $4
million lease liabilities and $92 million short-term debt) and $26 million intragroup balances reclassified to short-term debt as part of the sale of
certain China-based subsidiaries to Syngenta Group Co. Ltd., $4 million adjustment to gross up bond issuance fees, $5 million amortization of
bond discounts and $8 million of cash outflows on bond interest rate swaps and cross currency hedges, which are reported as operating cash
flows.
Movements in assets and liabilities arising from financing activities for the year ended December 31, 2023 are as follows:
2023 ($m)
January 1
Net cash flows
from/ (used for)
financing activities
Changes
in fair value
Other
Currency
translation
effects
December 31
Bonds and US private placement notes
(Note 18)
4,867
(1,291)
‐
7
139
3,722
Lease liabilities (Note 18)
892
(137)
‐
399
37
1,191
Other long-term debt (Note 18)
3,133
1,475
‐
19
22
4,649
Short-term debt (Note 16)
1,286
2,351
‐
7
(10)
3,634
Total financial debt
10,178
2,398
‐
432
188
13,196
Bond hedges net liability
108
‐
4
26
‐
138
Margin deposit liability
73
(70)
‐
‐
‐
3
Margin deposit asset
(229)
(54)
‐
‐
‐
(283)
Net liabilities arising from financing
activities
10,130
2,274
4
458
188
13,054
Other movements include $182 million of new leases, $217 million of lease liabilities recognized on sale and leaseback transactions, $19
million of other long-term debt and $7 million of short-term debt acquired with Agrocerrado Produtos Ltda and Feltrin Sementes Ltda, $4
million adjustment to gross up bond issuance fees, $3 million amortization of bond discounts and $26 million of cash inflows on bond interest
rate swaps and cross currency hedges, which are reported as operating cash flows.
See Note 24 for a description of bond hedges and margin deposits. Bond hedges are presented in the consolidated balance sheet as follows:
current assets of $1 million (2023: $38 million) are included within “Derivative and other financial assets”, non-current assets of $12 million
(2023: $22 million) are included within “Financial and other non-current assets”, current liabilities of $1 million (2023: $nil) are included within
“Current financial debt and other financial liabilities” and non-current liabilities of $243 million (2023: $198 million) are included within “Financial
debt and other non-current liabilities”.
Margin deposit liabilities are included within “Current financial debt and other financial liabilities”, and margin deposit assets are included within
“Derivative and other financial assets”.
Cash flows are presented in the consolidated cash flow statement as follows:
($m)
2024
2023
Proceeds from increase in third-party interest-bearing debt
2,561
4,628
Repayments of third-party interest-bearing debt
(4,642)
(2,354)
Net
(2,081)
2,274
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
53
21. Post-employment benefits
Syngenta has, apart from legally required social security arrangements, numerous independent pension plans, which are either “defined
contribution” plans where company contributions and resulting benefit costs are a set percentage of employees’ pay or “defined benefit” plans
where benefits are generally based on employees’ length of service and pensionable pay. Syngenta’s contributions to defined contribution
plans were $105 million for the year ended December 31, 2024 (2023: $98 million). Approximately 27 percent of Syngenta’s employees are
members of defined benefit plans. All of Syngenta’s major defined benefit plans are funded through legally separate trustee administered
funds. The cash funding of these plans, which may from time to time involve special payments, is designed to ensure that present and future
contributions should be sufficient to meet future liabilities. Syngenta’s main defined benefit pension plans are in the UK, Switzerland and the
USA.
UK
In accordance with its rules, Syngenta’s UK Pension Fund (the UK Fund) is governed by a company (the Trustee) that is controlled by
a publicly listed independent professional trustee corporation. That corporation appoints the Trustee’s directors, including its own
representative, Syngenta-nominated and member-nominated directors. The Trustee manages the UK Fund and appoints professional
advisers independently to assist it in doing so. The UK Fund is subject to UK pensions legislation, is regulated by the UK Pensions Regulator
and is exempt from most UK taxation through its registered status. The defined benefit section of the UK Fund has been closed to new
members since 2002. New employees since 2002 instead joined a defined contribution pension plan also within the UK Fund. This was open
to new members until August 31, 2013. After that date, new employees are eligible to join a separate defined contribution plan. The defined
benefit section of the UK Fund is open to future accrual for employees who were members before 2002; however, effective January 1, 2016,
pensionable pay for these employees has been frozen, as described in Note 2. At retirement date, defined benefit members have the right to
take up to 25 percent of the value of their benefits as a lump sum, with the balance being paid as an annuity. Alternatively, after taking
appropriate advice, members may transfer their defined benefits to a different authorized pension arrangement.
The Trustee is required by the UK Fund’s rules to increase pensions in payment and accrued deferred pension rights each year by the lower
of 5 percent and price inflation, as measured by the UK Retail Price Index (RPI) or Consumer Price Index (CPI), as applicable.
An independent actuary is required to value the UK Fund’s liabilities in accordance with UK pension regulations and certify the required
contributions, both for future service and elimination of any deficit, at least every three years. Following each such valuation, employer
contribution amounts must be formally agreed between Syngenta and the Trustee, subject to review by the Pensions Regulator, and remain
binding until re-assessed in the following valuation. The solvency of the UK Fund, defined as its ability to pay benefits as they fall due, is
guaranteed by the sponsoring subsidiary, Syngenta Ltd., and by Syngenta AG. In addition, certain benefits under the UK Fund are
guaranteed by the UK Pension Protection Fund.
The Trustee agrees the investment strategy for the UK Fund’s assets and implements it through an investment sub-committee (the UK
Investment Committee) it appoints from among the Trustee directors. The investment objectives are to ensure the assets are appropriately
diversified and liquid to generate sufficient returns to meet the benefit liability and control the long-term costs of the UK Fund. These objectives
are achieved through appointing and monitoring a number of third-party investment managers, each with specific investment mandates that
collectively cover a wide range of investment classes and geographical markets and utilize both asset liability matching and return seeking
strategies. Asset liability matching is attained through a liability driven investment (“LDI”) strategy achieved both through underlying investment
class selection (e.g. fixed interest) and through using derivatives to limit the potential impact of changes in interest rates, price inflation and
foreign currency exchange rates on the benefits payable by and assets of the UK Fund. The UK Fund recognizes that the use of derivatives
introduces collateral risk, but this is tightly monitored and controlled, and the UK Fund has access to other liquid assets should additional
collateral be required by the LDI manager. The Trustee continues to reshape the investment portfolio reducing the overall investment risk and
hence expected return. This is in line with the funding agreement between the Trustee and Syngenta Limited. As a result, the Trustee has
invested certain of the plan’s assets to purchase insurance policies with UK local insurers to cover around 14 percent of Syngenta’s UK
pension liabilities. The insurers pay the Trustee an income flow to match a defined set of benefit payments.
Switzerland
The Swiss federal law on occupational old age, disability and survivors’ pensions (“BVG”) sets minimum standards for occupational pension
plans, which Syngenta’s Swiss pension fund (the Swiss Fund) exceeds. All employees having had an employment contract for more than
three months with any of Syngenta’s Swiss subsidiaries or with its CIMO associate entity (see Note 14) and whose age and income exceed
the minimum stipulated by BVG are automatically insured in the Swiss Fund. The benefits payable on retirement are calculated according to
the capital sums that each member accumulates through transfer of benefits from previous employments, employer and employee
contributions during service with Syngenta or with CIMO, interest and member voluntary contributions. Disability and survivors’ death
in service benefits are defined on the basis of the member’s insured remuneration. Leavers before retirement are required to transfer their
accumulated retirement and capital savings to the occupational pension plan of their new employment. The Swiss Fund is governed by a
twelve-member Board of Trustees. Six members, including the President, are nominated by Syngenta (five members) and CIMO (one
member), and six are elected by insured plan members from among the employees. Its decisions regarding certain items, including rates of
retirement credits for service and interest credits, conversion rates on retirement and plan asset investment strategy require a two-thirds
majority vote. Legal conformity of the Swiss Fund’s regulations is verified by the Swiss Pension Inspectorate. Syngenta’s legal obligations,
including required employer contributions, are defined in the pension fund rules which are agreed by the Board of Trustees.
Employer and employee contributions are payable according to an age-related scale of percentages of pay. Under BVG, the Swiss Fund
guarantees the vested benefit amount as confirmed annually to members. Interest may be added to member balances at the discretion of the
Board of Trustees. Members have the right to take their retirement benefit as a lump sum, an annuity or part as a lump sum with the balance
converted to a fixed annuity at the rates defined in the Fund’s rules. The Board of Trustees may increase the annuity at their discretion subject
to the Swiss Fund’s funded status including sufficient free funds as determined according to Swiss statutory valuation rules. Syngenta
accounts for the Swiss Fund as a defined benefit pension plan.
An actuarial balance sheet is usually drawn up annually by the Swiss Fund’s actuary. If the balance sheet reveals a deficit, the Board of
Trustees defines appropriate measures to eliminate the deficit. If necessary, and after consultation with the actuary, the contributions payable
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
54
by employees and by Syngenta may be increased or the benefits may be adjusted to the funds available. The Board of Trustees manages the
Swiss Fund’s assets in conformity with the investment policy rules laid down by Swiss law, with the objectives of achieving investment that is
secure, produces an appropriate yield and meets the liquidity needs of the Swiss Fund. This is implemented through an investment sub-
committee similar to the UK Investment Committee mentioned above.
USA
Syngenta’s main US defined benefit pension plan (the US Plan) is a non-contributory defined benefit pension plan subject to the provisions of
the Employee Retirement Income Security Act of 1974, as amended (ERISA) and the US Internal Revenue Code of 1986, as amended
(Code). In addition, certain benefits under the US Plan are guaranteed by the US Pension Benefit Guaranty Corporation. The US Plan was
closed to new members effective January 1, 2009. Employees joining Syngenta after that date participate in a defined contribution pension
plan. The defined benefits of existing members of the US Plan were not affected by this change. The US Plan offers members the choice of
taking their retirement benefits, which are generally based on their age, pay and years of service, as a full lump sum at retirement date or as a
fixed annuity. In these consolidated financial statements, the benefit obligation has been valued assuming that 80 percent of current eligible
members will take the lump sum option at normal retirement or other permissible commencement dates. This assumption is consistent with
historical and expected future member choices.
US plan assets are held in a separate trust with State Street Bank and Trust Company as trustee and custodian. The assets must generally
remain in the trust until all pension benefits are paid. An Investment Committee of Syngenta employees (the US Investment Committee),
appointed by the Board of Directors of Syngenta Corporation, a wholly owned subsidiary of Syngenta AG, oversees the investment of the plan
assets, either directly or through the appointment of investment managers. The US Investment Committee develops and implements an
investment strategy that takes into account the liability profile of the US Plan. Asset classes are selected that include equities, fixed income
and alternative assets. Interest rate derivatives may be used to hedge the interest rate risk of the US Plan. The Plan’s key risks include
interest rate risk that impacts the value of the liability and the fixed income assets of the US Plan, investment performance volatility, and to a
lesser degree inflation and longevity risk. An actuarial valuation is required each year and is used to determine the valuation and
characteristics of the liability of the US Plan.
Syngenta Corporation’s funding policy is to contribute to the US Plan amounts necessary on an actuarial basis to at least satisfy the minimum
funding requirements of the Code. Additional discretionary contributions above the minimum funding requirements can be made and are
generally based on the annual administrative expense of the plan, along with an adjustment for any over/under funding.
Benefits under the plan were frozen effective December 31, 2018, and no participants shall accrue additional benefits after that date.
Defined benefit plan disclosures
The status of Syngenta’s defined benefit plans at December 31, 2024 and 2023 using actuarial assumptions determined in accordance with
IAS 19 is summarized below. The following tables provide reconciliations of benefit obligations, plan assets and funded status of the defined
benefit pension plans to the amounts recognized in the consolidated balance sheet at December 31, 2024 and 2023:
($m)
2024
2023
Benefit obligations
January 1
5,143
4,471
Current service cost
82
68
Past service cost
2
1
Employee contributions
41
41
Interest cost
144
164
Actuarial losses/(gains):
From changes in demographic assumptions
(90)
(16)
From changes in financial assumptions
15
340
From actual experience compared to assumptions
81
26
Benefit payments
(332)
(290)
Currency translation effects and other
(241)
338
December 31
4,845
5,143
Of which arising from:
Funded plans
4,713
5,001
Wholly unfunded plans
132
142
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
55
($m)
2024
2023
Plan assets at fair value
At January 1
5,497
5,011
Actual return on plan assets
115
205
Employer contributions
154
148
Employee contributions
41
41
Benefit payments
(332)
(290)
Currency translation effects and other
(262)
382
December 31
5,213
5,497
Actual return on plan assets can be analyzed as follows:
($m)
2024
2023
Interest on plan assets
153
179
Actuarial (losses)/gains
(38)
26
Total
115
205
Funded status
368
354
Effect of asset ceiling
(54)
(279)
Net accrued benefit asset
314
75
Amounts recognized in the balance sheet:
Prepaid benefit costs (Note 13)
468
246
Accrued benefit liability
(154)
(171)
Net amount recognized
314
75
All material changes in the amount shown for the asset ceiling arose from the effect of applying the ceiling at each period end. Changes in the
asset ceiling amount due to interest and foreign currency translation during 2024 and 2023 were immaterial.
Of the accrued benefit liability for pensions of $154 million at December 31, 2024, $149 million is included in Note 19 as pension provisions
and $5 million as restructuring provisions (2023: $170 million as pension provisions; $1 million as restructuring provisions).
The following table shows the estimated undiscounted future defined benefit payments that are projected to occur within ten years from the
balance sheet date. Actual payments may differ from those shown because of uncertain future events, including members’ choice of benefit
options as described above.
($m)
2025
345
2026
311
2027
311
2028
318
2029
312
Years 2030-2035
1,477
Total 2025-2035
3,074
Syngenta’s estimate of employer contributions to be paid to defined benefit plans in 2025 is $82 million. Actual payments could differ
materially from this estimate if any new funding regulations or laws are enacted or due to business and market conditions, which may result in
Syngenta prepaying contributions. Additional contributions, the amount and timing of which are uncertain, may also be required as Syngenta’s
restructuring programs are implemented.
In accordance with UK pension regulations, Syngenta has agreed with the Trustee to pay fixed contributions to meet the valuation deficit
determined at each valuation date, administration costs and part of the costs of employee service. The balance of the costs of employee
service is payable as a percentage of pensionable pay in each year. In 2024 and 2023, $22 million and $38 million of fixed contributions were
paid respectively. In December 2024, Syngenta agreed revised pension funding arrangements with the Trustee as part of the 2024 triennial
valuation. Under these arrangements, as long as the Fund is not in deficit on a UK statutory basis, no fixed contributions are required except
for future service contributions. If the funding level falls below 99 percent before the next triennial valuation in 2027, additional contributions of
$13 million will be required to repair the deficit. This agreement will apply until December 31, 2029.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
56
The fair values of assets and liabilities of the major defined benefit pension plans, together with aggregated data for other defined benefit
plans, are as follows. Unquoted investments represent investments in pooled funds in which the underlying investments are not publicly
traded in a market that provides pricing information on an ongoing basis:
Fair value ($m, except assumptions)
At December 31, 2024
Switzerland
UK
USA
Other plans
Total
%
Investments quoted in active markets:
Equities
834
31
20
8
893
17
Real estate funds
375
‐
‐
1
376
7
Bonds
771
920
265
20
1,976
38
Other assets
‐
(29)
37
9
17
‐
Unquoted investments:
Equities
84
13
20
‐
117
2
Real estate1
279
228
‐
2
509
10
Bonds
55
118
‐
3
176
4
Insurance policies
‐
217
‐
‐
217
4
Other assets
566
132
32
6
736
14
Cash and cash equivalents
48
148
‐
‐
196
4
Fair value of assets
3,012
1,778
374
49
5,213
100
Benefit obligation
(2,723)
(1,561)
(397)
(164)
(4,845)
of which:
Active members
(1,454)
(142)
(138)
Deferred members
n/a
(265)
(75)
Pensioners and dependants
(1,269)
(1,154)
(184)
Funded status
289
217
(23)
(115)
368
Effect of asset ceiling
‐
(54)
‐
‐
(54)
Net pension asset / (liability)
289
163
(23)
(115)
314
Net periodic benefit cost
62
4
4
12
82
Significant actuarial assumptions:
Discount rate (%)
1.0
5.5
5.6
-
2.9
Inflation (RPI) (%)
n/a
3.2
n/a
Pensionable pay increase (%)
1.5
‐
‐
Pension increase (%)
-
3.2
n/a
Interest credit rate (%)
2.3
n/a
n/a
Remaining life expectancy (years)
male aged 63 in 2024
24.9
23.8
23.9
female aged 63 in 2024
26.7
25.2
25.3
male aged 63 in 2044
27.2
25.2
25.3
female aged 63 in 2044
28.7
26.7
26.8
Weighted average duration of benefit
obligation (years)
13
11
11
1 Includes $38 million investment in a property fund held by the UK Fund that is suspended due to valuation uncertainties arising from remediation liabilities that are still to be
quantified and the impact of the Leasehold Reform (Ground Rent Act) 2022 on future residential ground rents. The investment is held at the latest net asset value provided by the
fund manager, less an allowance made by Syngenta for these uncertainties
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
57
Fair value ($m, except assumptions)
At December 31, 2023
Switzerland
UK
USA
Other plans
Total
%
Investments quoted in active markets:
Equities
720
65
16
8
809
15
Real estate funds
400
‐
‐
‐
400
7
Bonds
814
927
279
22
2,042
37
Other assets
‐
(25)
‐
10
(15)
‐
Unquoted investments:
Equities
86
19
25
‐
130
2
Real estate1
248
315
‐
1
564
10
Bonds
66
151
‐
1
218
4
Insurance policies
‐
263
‐
‐
263
5
Other assets
679
214
46
7
946
17
Cash and cash equivalents
77
53
9
1
140
3
Fair value of assets
3,090
1,982
375
50
5,497
100
Benefit obligation
(2,742)
(1,820)
(412)
(169)
(5,143)
of which:
Active members
(1,433)
(209)
(150)
Deferred members
n/a
(339)
(67)
Pensioners and dependants
(1,309)
(1,272)
(195)
Funded status
348
162
(37)
(119)
354
Effect of asset ceiling
(187)
(92)
‐
‐
(279)
Net pension asset / (liability)
161
70
(37)
(119)
75
Net periodic benefit cost
50
4
3
11
68
Significant actuarial assumptions:
Discount rate (%)
1.5
4.6
5.1
-
2.3
Inflation (RPI) (%)
n/a
3.1
n/a
Pensionable pay increase (%)
2.1
-
-
Pension increase (%)
-
3.1
n/a
Interest credit rate (%)
2.0
n/a
n/a
Remaining life expectancy (years)
male aged 63 in 2023
24.8
24.8
22.4
female aged 63 in 2023
26.6
26.5
24.5
male aged 63 in 2043
27.1
26.1
24.0
female aged 63 in 2043
28.6
28.0
26.0
Weighted average duration of benefit
obligation (years)
13
12
12
1 Includes $72 million investment in a property fund held by the UK Fund that is suspended due to valuation uncertainties arising from remediation liabilities that are still to be
quantified and the impact of the Leasehold Reform (Ground Rent Act) 2022 on future residential ground rents. The investment is held at the latest net asset value provided by the
fund manager, which includes an allowance for these uncertainties.
Other assets include investments in private equity funds, diversified hedge funds, infrastructure funds, insurance funds and inflation, interest
rate and foreign currency derivatives.
The following table provides an analysis of the benefit costs recorded in the consolidated income statement for the defined benefit pension
plans for the years ended December 31, 2024 and 2023:
($m)
2024
2023
Current service cost
82
68
Past service cost
2
1
Interest on the effect of the asset ceiling
7
14
Interest on the net defined benefit asset
(9)
(15)
Net periodic benefit cost
82
68
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
58
Amounts recognized in OCI were as follows for the years ended December 31, 2024 and 2023:
($m)
2024
2023
Actuarial losses
44
324
Effect of asset ceiling
(221)
(391)
The sensitivity of the benefit obligation to the significant actuarial assumptions is discussed in the “Critical accounting estimates” section of
Note 2.
Other post-retirement benefits
Syngenta’s most significant other post-retirement benefit plan is the retiree medical plan in the USA. The plan is self-insured and the principal
benefit for the majority of eligible participants is a subsidy of their medical insurance premiums after retirement. The subsidy amount varies
based on age and service at retirement. Retirees who are eligible for Medicare enroll in individual Medicare plans available in the open market
or public exchange, and are responsible for paying the full cost of coverage in excess of the subsidy. The assumed healthcare cost trend rate
for this plan at December 31, 2024 was 7.00 percent, decreasing in each successive year from 2025 onwards, to reach an ultimate rate of 5.0
percent in 2033 (December 31, 2023: 7.25 percent decreasing to 5.0 percent in 2033).
Syngenta had a net benefit asset for other post-retirement benefits at December 31, 2024 of $120 million (2023: $103 million) reported within
Post-employment benefit asset in Note 13 and a net benefit liability of $12 million (2023: $20 million) reported within Other post-retirement
benefits provision in Note 19. Actuarial losses recognized in OCI for the period were $6 million (2023: $11 million gains). Expense recognized
in the consolidated income statement, contributions to the other post-retirement benefit plans and benefit payments by the plans were not
material for 2024 and 2023.
22. Leases
Lease activities
Land and buildings
Syngenta leases land and buildings for use in its manufacturing, warehousing and administration activities. The terms for these leases are
negotiated on an individual basis to reflect Syngenta’s requirements for the underlying asset and to ensure Syngenta complies with any
relevant legal regulations and range from 1 to 72 years in length, with a weighted average lease term of 19 years. Lease payments are usually
agreed in advance, with some leases providing for additional payments that are based on changes in local price indices, or upon rent reviews
conducted to periodically align rental payments with the prevailing market rate. Additionally, in order to allow operational flexibility some land
and building leases also grant Syngenta options to extend the lease beyond its initial term or to terminate the lease early. The likelihood of
exercising these options is assessed by Syngenta on a lease-by-lease basis and if the option exercise is considered to be reasonably certain
it directly impacts upon the lease term used in calculating the right-of-use asset and lease liability values.
During the years ended December 31, 2024 and 2023 Syngenta entered into sale and leaseback arrangements on its land and buildings as
disclosed in Note 3.
Machinery and equipment
Machinery and equipment leases relate primarily to Syngenta’s car fleet, which is used by the management and sales functions. The average
contract duration for fleet assets is 3 years.
Right-of-use assets
Movements in right-of-use assets for the year ended December 31, 2024 are as follows:
2024 ($m)
Land
Buildings
Machinery and
equipment
Total
Cost
January 1
56
668
254
978
Additions
1
186
81
268
Disposals
(8)
(51)
(54)
(113)
Currency translation effects and other
(3)
(27)
(18)
(48)
December 31
46
776
263
1,085
Accumulated depreciation and impairment losses
January 1
(22)
(184)
(102)
(308)
Depreciation charge
(4)
(72)
(72)
(148)
Impairment losses
‐
‐
‐
‐
Disposals
7
47
53
107
Currency translation effects and other
1
7
7
15
December 31
(18)
(202)
(114)
(334)
Net book value – December 31
28
574
149
751
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
59
Movements in right-of-use assets for the year ended December 31, 2023 are as follows:
2023 ($m)
Land
Buildings
Machinery and
equipment
Total
Cost
January 1
48
536
182
766
Additions
8
139
100
247
Disposals
(3)
(30)
(36)
(69)
Currency translation effects
3
23
8
34
December 31
56
668
254
978
Accumulated depreciation and impairment losses
January 1
(16)
(150)
(70)
(236)
Depreciation charge
(9)
(56)
(69)
(134)
Impairment losses
‐
‐
1
1
Disposals
3
29
37
69
Currency translation effects and other
‐
(7)
(1)
(8)
December 31
(22)
(184)
(102)
(308)
Net book value – December 31
34
484
152
670
Lease liability maturity
The maturities of lease liabilities as at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Within one year
200
177
One to two years
169
146
Three to five years
350
311
More than five years
1,353
1,243
Total
2,072
1,877
Present value (Note 18)
1,368
1,191
As detailed in Note 26, the value of the lease liability is dependent upon a number of judgments around the duration of the lease terms applied
to individual leases, together with an assessment as to whether any purchase options contained within leases are reasonably certain of being
exercised. The current lease liability represents Syngenta’s current assessment of these judgmental areas, with the range of hypothetical
lease liabilities that Syngenta’s lease portfolio could give rise to being $1,213 million to $2,118 million (2023: $991 million to $1,511 million).
Other lease disclosures
The amounts charged to the income statement in respect of leases are as follows:
($m)
2024
2023
Interest on lease liabilities
(62)
(47)
Expenses relating to variable lease payments
-
(3)
Expenses relating to short-term leases
(57)
(44)
Total cash outflows in respect of leases for the year ended December 31, 2024 are $218 million (2023: $186 million). The cash outflows
included in the consolidated cash flow statement in respect of leases are presented net of interest paid and for the year ended December 31,
2024 amount to $156 million (2023: $137 million).
Syngenta accounts for short-term leases and leases of low value by applying the recognition exemptions permitted in IFRS 16 “Leases”, with
lease payments expensed as they are incurred.
23. Principal currency translation rates
As an international business selling in over 100 countries and having major manufacturing and research and development facilities in
Switzerland, the UK, the USA, France, China and Brazil, movements in currencies impact Syngenta’s business performance. The principal
currencies and exchange rates against the US dollar used in preparing the consolidated financial statements were as follows.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
60
Year end rates used for the consolidated balance sheets at December 31:
2024 per $
2023 per $
Swiss franc
0.90
0.84
British pound sterling
0.80
0.79
Euro
0.96
0.90
Brazilian real
6.19
4.84
Russian ruble
111.25
89.88
Chinese yuan
7.34
7.12
Average rates during the years ended December 31, used for the consolidated income and cash flow statements:
2024 per $
2023 per $
Swiss franc
0.88
0.90
British pound sterling
0.78
0.81
Euro
0.92
0.93
Brazilian real
5.39
4.99
Russian ruble
92.29
84.26
Chinese yuan
7.19
7.09
24. Risk management of financial risks
Risk management framework
The nature of Syngenta’s business and its global presence exposes it to a range of financial risks. These risks include (i) market risks, which
include potential unfavorable changes in foreign exchange rates, interest rates, commodity prices and other market prices (equities, credit
spreads etc.), (ii) counterparty credit risk and (iii) liquidity and refinancing risk.
A financial risk management framework is in place in the form of a Treasury policy approved by the Board of Directors. This policy provides
guidance over all Treasury and finance related matters, is underpinned by delegated authority guidelines and is additionally supported by
detailed procedures in place across Syngenta. In accordance with its Treasury policy, Syngenta actively monitors and manages financial risk
with the objectives of reducing fluctuations in reported earnings and cash flows from these risks and providing economic protection against
cost increases. These objectives are achieved through (a) a monthly assessment of the impact of market risks against defined risk limits (see
following section), which take into account the risk appetite of Syngenta and (b) the use of a variety of derivative and non-derivative financial
instruments.
Financial instruments available for use to mitigate these risks are selected by Syngenta according to the nature of the underlying risk. These
instruments are designed to economically hedge underlying risks arising from operational activities and from funding and investment positions.
Syngenta does not enter into speculative financial transactions.
The fair values and the volumes of the derivatives (including the time periods being hedged) used to manage financial market risks at
December 31, 2024 and 2023 are below, classified by accounting treatment: CF and FV indicate derivatives where cash flow hedge and fair
value hedge accounting is applied, respectively; and M2M indicates derivatives that are marked to market through profit or loss and hedge
accounting is not specifically required.
2024
Fair value of
outstanding derivatives1
Maturity profile in $m
Risk
Accounting
treatment
Quantity
Assets
$m
Liabilities
$m
0-90
days
90-days
-1 year
1-5
years
>5 years
Foreign exchange risk
Trading transaction – committed
M2M
13,320
462
(89)
194
179
-
-
Trading transaction – uncommitted
CF
1,567
18
(20)
(5)
3
-
-
Issued financial debt and interest
CF
3,407
11
(234)
-
-
(223)
-
Interest rate risk
CF
1,832
0
(10)
-
(1)
(9)
-
Interest rate risk
M2M
1,550
2
-
-
1
1
-
Commodity price risk
Gas2
CF
1
-
-
-
-
-
-
Soft commodities3
M2M
(251)
48
(13)
1
6
28
-
Soft commodities4
CF
128
7
-
5
2
-
-
Total
21,554
548
(366)
195
190
(203)
-
Derivatives subject to ISDA Master netting
agreements
(116)
116
Collateral (received) / paid under CSA
agreements
(245)
177
Net amounts in the event that all
conditional set-off rights are applied
187
(73)
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
61
2023
Fair value of
outstanding derivatives1
Maturity profile in $m
Risk
Accounting
treatment
Quantity
Assets
$m
Liabilities
$m
0-90
days
90-days
-1 year
1-5
years
>5 years
Foreign exchange risk
Trading transaction – committed
M2M
14,733
108
(457)
(206)
(143)
-
-
Trading transaction – uncommitted
CF
1,582
36
(16)
13
7
-
-
Issued financial debt and interest
CF
3,285
36
(198)
-
18
(195)
15
Interest rate risk
CF
1,550
24
-
-
20
4
-
Interest rate risk
M2M
-
-
-
-
-
-
-
Commodity price risk
Gas2
CF
3
-
(1)
(1)
-
-
-
Soft commodities3
M2M
192
66
(23)
14
29
-
-
Soft commodities4
CF
150
9
-
9
-
-
-
Total
21,495
279
(695)
(171)
(69)
(191)
15
Derivatives subject to ISDA Master netting
agreements
(135)
135
Collateral (received) / paid under CSA
agreements
(3)
282
Net amounts in the event that all
conditional set-off rights are applied
141
(278)
1 The fair values of derivatives are reported in the consolidated Balance Sheet as shown in Note 25
2 240,802 million (2023: 758,474 million) British thermal units
3 Mainly 11,222,816 bushels (2023: 8,969,739 bushels) of soybean, 5,876,333 bushels (2023: 1,217,510 bushels) of corn, 72,777,314 lbs (2023: 30,720,317 lbs) of coffee and
216,945,296 lbs (2023: 35,062,618 lbs) of cotton
4 8,875,000 bushels (2023: 8,840,524 bushels) of soybean and 7,005,000 bushels (2023: 7,006,691 bushels) of corn
Hedge accounting is applied wherever possible. Exceptions to this are derivatives where the fair value movements of the hedges and the
retranslation of the underlying exposures are largely offset in profit or loss; or derivatives placed, which do not fulfil the specific requirements of
the accounting standard to achieve hedge accounting.
For those transactions that do not fulfil the specific requirements of the accounting standard to achieve hedge accounting, the gains and
losses on those hedging instruments for the year ended December 31, 2024 were as follows:
−
Foreign currency forward contracts that are effective economic hedges of forecast cash flows arising from anticipated sales
and purchases between Syngenta affiliates and third parties. The amount recorded in profit or loss for the year ended December 31,
2024 is a gain of $6 million (2023: loss of $17 million).
−
Commodity derivative contracts that are effective economic hedges of the anticipated purchases of raw materials or purchases
principally related to corn and soybean in North America and Latin America, and the resale of various crops in barter arrangements. The
amount recorded in profit or loss in respect of these derivatives for the year ended December 31, 2024 is a gain of $15 million (2023:
loss of $19 million). The profit or loss impact from the corresponding forecasted transactions occurs when the related finished product
inventories are sold, which is generally in the year following recognition of the gain or loss on the hedge.
Assessment of the impact of market risks
The impact of market risks is assessed using a variety of Value-at-Risk (VaR) and Earnings-at-Risk (EaR) methods. These are standard risk
management models designed to statistically estimate with a pre-set probability the highest potential losses in value (VaR) or earnings (EaR)
over a specified time period based on current and forecast positions and possible movements in market prices. These methods are adjusted
to reflect the nature of the exposures and the impact of the exposures on profit or loss of the financial year. Diversification impacts between
different currencies are factored into the model. VaR and EaR calculations are based on a 99 percent confidence level. The net risk and the
specific methods used to assess the impact of financial risks are shown below:
Risk
Method
Exposure (financial statement item)
Time
horizon
(months)
December 31, 2024
Net Risk ($m)
December 31, 2023
Net Risk ($m)
Foreign exchange trading transaction
– committed and issued financial debt
and interest
EaR
Monetary asset and liability carrying
amounts
12
26
21
Foreign exchange trading transaction
– uncommitted
EaR
Operating income
12
146
269
Foreign exchange translation
VaR
Cumulative translation adjustment in OCI
1
456
391
Interest rate risk
EaR
Interest expense
12
91
96
Commodity price risk1
EaR
Operating income
12
5
16
1 US soybean and corn. Other commodity related risks are immaterial for the years ended December 31, 2024 and 2023
The assessment of the impact of market risks is performed monthly and the results are compared against annually defined risk limits. In cases
where the net impact is higher than a risk limit, Syngenta enters into derivative financial instrument transactions in order to stay within the risk
limits approved in the treasury policy.
Syngenta cannot predict future movements in risk variables precisely, therefore calculations of the impact of market risks neither represent
actual losses nor consider the effects of potential favorable movements in underlying risk variables. Accordingly, these calculations may only
be an indication of future movements to the extent the historic market patterns repeat in the future.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
62
Foreign exchange risk
Operating worldwide exposes Syngenta to foreign exchange transaction and translation risk at both the Syngenta AG group and subsidiary
level.
Foreign exchange transaction risk – committed
Syngenta’s individual subsidiaries predominantly transact their operational activities in their respective functional currencies. However, the
globally integrated nature of Syngenta’s business results in its subsidiaries bearing some amount of transactional balance sheet risk because
some monetary items (including financial assets and liabilities) are denominated in foreign currencies. Such committed foreign currency
exposures are largely generated by the routing of products between Syngenta’s central hub and its foreign locations and by the intragroup
funding activities performed by Group Treasury mainly in the respective currency of the affiliate. Following the risk management strategy,
Syngenta hedges these committed exposures wherever possible and cost effective. Syngenta uses mainly foreign exchange forward
contracts and foreign currency swaps to manage the risk and aligns the maturities of the derivative instruments with the cash flows of the
hedged transactions. Net committed transactional currency exposures are identified and reported at least on a monthly basis by business
units and monitored and managed by Group Treasury.
Foreign exchange transaction risk – issued financial debt and interest
Syngenta has a funding strategy which involves securing a diversification of funding sources in different markets and maintaining an optimal
currency mix of debt. This additional foreign currency exposure arises from the debt issuances in Swiss Francs and Euros under the Euro
Medium Term Note (EMTN) program and intragroup term loans with Syngenta Group (HK) Holdings Company Limited denominated in
Chinese Renminbi. The risk management objective is to minimize the impact of changes in foreign exchange rates on these foreign currency
denominated debt interest and principal repayments. The foreign exchange risk on the foreign currency denominated debt is managed mostly
by derivative instruments, and within a portfolio of other committed transactions. Syngenta uses cross currency swaps placed mainly with the
same terms as the hedged item to manage the risk and eliminate or reduce the uncertainty in the cash flows.
Foreign exchange transaction risk – uncommitted
Uncommitted transactions are expected, highly probable future transactions for which Syngenta does not yet have a contractual right or
obligation (mainly sales and costs).
The US dollar represents the biggest single currency for both sales and costs. However, currency mismatches arise from Syngenta having
a centralized cost base, denominated mainly in US Dollars, Euros, Chinese Renminbi and Swiss Francs, against a local selling base,
denominated mainly in US dollars, Euros and various other currencies, including those in emerging markets. In addition, due to the
seasonality of Syngenta’s business, the sales by currency are not phased linearly throughout the year.
The risk management objective is to minimize the impact of changes in foreign exchange rates on the operating income forecasted to result
from these transactions. Syngenta considers hedging this exposure unless it can reliably expect that operating income could, without
significant adverse economic impact, be protected by adjusting the pricing of forecast transactions for changes in foreign exchange rates
before those transactions occur. Hedging transactions are managed to minimize the potential adverse movement for the entire portfolio of the
net transactional flows, rather than on an individual currency basis. To reduce the risk of the portfolio, Syngenta may enter into derivatives
contracts, namely foreign exchange forward contracts and currency options, with the same or a shorter maturity than the timing of the hedged
cash flows.
Foreign exchange translation risk
Translation exposure arises from the consolidation of foreign currency denominated financial statements of Syngenta’s subsidiaries. This is
reported as currency translation effects in OCI. Translation risk can be significant; however, Syngenta regards its equity base to be of sufficient
magnitude generally to absorb the short- to medium-term impact of exchange rate movements. No management of the exposure was
undertaken in 2024 or 2023.
Interest rate risk
Syngenta is exposed to fluctuations in interest rates on its borrowings (including forecasted borrowings) and excess cash. While the majority
of Syngenta’s borrowings have fixed interest rates, portions of Syngenta’s net borrowings, including its short-term commercial paper program,
drawings under the syndicated credit facility and local borrowings, are subject to changes in short-term interest rates. Syngenta monitors its
interest rate exposures and analyzes the potential impact of interest rate movements on net interest expense. The risk management strategy
involves ensuring an efficient fixed/floating mix of total debt within approved interest rate risk limits. The risk can be managed by the use of
interest rate derivatives relating to future interest payments of financial debt liabilities. The derivative instruments are placed with the same
maturity as the expected cash flows of the hedged transactions so that the timing of the cash flows of the hedged transactions effectively
matches the timing of the cash flows of the derivative instrument.
Commodity price risks
Operating in the agribusiness sector, changes in certain commodity prices affect Syngenta’s reported operating results and cash flows. On a
limited basis, Syngenta enters into derivative transactions to hedge the exposure of its cost base to commodity prices. This activity comprises
oil and natural gas hedging in the UK and USA, as well as soft commodity hedging for corn and soybean purchases by the Seeds business in
the USA, Canada, Brazil and Argentina, where Syngenta contracts to purchase various seed crops from growers and hedges the cost of the
purchases. In barter arrangements where Syngenta sells products in exchange for receiving a certain amount of a commodity crop, Syngenta
hedges the value of the crop.
Natural gas exposure occurs in Syngenta’s primary manufacturing sites and Syngenta manages the exposure by hedging the main risk
component, which is the natural gas market price, contractually linked to a natural gas index price. The other risk components within the
exposure are immaterial.
The main objective of managing commodity price risk is to reduce the impact of commodity price changes on operating income and to provide
economic protection against future cost increases. Syngenta uses fixed price contracts and derivatives (both Over-the-Counter (OTC) and
exchange traded instruments, including commodity options and futures contracts) to achieve this objective. The derivative instruments are
placed with the same maturity as the expected cash flows of the hedged transactions so that the timing of the cash flows of the hedged
transactions effectively matches the timing of the cash flows of the derivative instrument.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
63
Derivatives and hedge accounting
Syngenta seeks to apply, wherever possible, hedge accounting to present its financial statements in accordance with the economic purpose
of the hedging activity. Hedges for which hedge accounting is not adopted either (a) do not meet the requirements for hedge accounting
treatment under IFRS or (b) when combined with the accounting for the underlying hedged items, impact the financial statements in a manner
aligned with the economic purpose of the hedging activity.
Syngenta determines the economic relationship between the hedged items and the hedging instruments by reviewing the critical terms of the
hedged items and the hedging instruments. Except as described below, Syngenta concludes that the risk being hedged for the hedged items
and risk inherent in the hedging instruments are sufficiently aligned, there is no inherent mismatch in the hedging relationship and a 100
percent hedge ratio applies both for the actual quantities hedged and for the hedge accounting. The impact of the critical terms is also
assessed using historical scenario analysis supported by statistical methods (regression analysis).
For the hedging of foreign currency risk of uncommitted forecasted trading transactions, because the foreign currency exposures are largely
generated by the routing of products from Syngenta’s central manufacturing sites to its foreign locations, the profit or loss impact from the
corresponding transactions occurs when the related finished product inventories are sold to third parties. When entering into derivative
hedging contracts, Syngenta selects maturity dates based on the forecast period for which Syngenta holds inventories of its products for each
commercial market by hedged currency exposure. Limited variability in the holding period occurs mainly due to timing of the third-party sales
transactions (“inventory holding period mismatch”).
For the hedging of commodity price risk of soy and corn, there is variability between the index being hedged (CBOT) and the drivers of the
actual exposures (local elevator prices linked to CBOT). The variability is, however, limited to individual transactions within the group of
transactions in this hedging program, and a hedge ratio of 100 percent is observed for the whole group of transactions.
The following table summarizes the accounting treatment, sources of ineffectiveness and the effectiveness assessment method for the
identified financial market risks:
Effectiveness assessment
Risk
Accounting
treatment
Potential sources of ineffectiveness
Method
Frequency
Foreign exchange risk:
Trading transaction – uncommitted
CF
Lower volume of hedged items;
inventory holding period mismatch
Critical terms match
Quarterly
Issued financial debt and interest
CF
Lower volume of hedged items
Critical terms match1
Quarterly
Interest rate risk
CF
Lower volume of hedged items
Critical terms match
Quarterly
Commodity price risk:
Gas
CF
Lower volume of hedged items
Critical terms match
Semi-annually
Soft commodities
CF
Lower volume of hedged items;
index mismatch
Regression analysis
Quarterly
1 except EUR 900 million 3.375% Eurobond where a quantitative assessment is applied
Ineffectiveness is recognized in the consolidated income statement in Other general and administrative for hedges of uncommitted foreign
currency forecast transactions, in Financial expense, net for hedges of committed foreign currency monetary items, in Financial expense, net
for hedges of interest rate risk and in Cost of goods sold for hedges of commodity price risk. For the years ended December 31, 2024 and
2023 none of the above potential sources of ineffectiveness, individually or collectively, resulted in material amounts of actual ineffectiveness
being reported for any hedge accounting relationships.
Fair Value Hedge Accounting
At December 31, 2024 and December 31, 2023 there was no fair value hedge accounting in place.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
64
Cash flow hedges
The gains and losses on derivative instruments recognized in and classified out of the cash flow hedge reserve during the years ended
December 31, 2024 and 2023 were as follows. The amounts shown exclude related income tax effects, which are disclosed in Note 7.
Continuing hedging relationships
Hedge accounting no longer applied
Foreign exchange risk
Interest
rate risk
Commodity price risk
Foreign
exchange
risk
Interest
rate risk
2024 ($m)
Trading
transaction –
uncommitted
Issued
financial
debt and
interest
Issued
financial
debt and
interest
Gas
Soft
commodities
Subtotal
Foreign
exchange
risk –
translation
Issued
financial
debt and
interest
Subtotal
Total
Opening balance
18
(39)
13
-
(3)
(11)
(74)
(74)
(85)
Gains/(losses) on hedges
recognized in OCI
3
30
(23)
1
(29)
(18)
3
-
3
(15)
Transferred directly to assets
or liabilities
-
-
(1)
35
34
-
-
-
34
Reclassification to profit or loss
(Gains)/losses on hedges
reclassified to profit or loss:
General and administrative
(25)
-
-
-
-
(25)
-
-
-
(25)
Financial expense, net
-
-
-
-
-
-
-
-
-
-
Recycled (losses)/gains on
de-designated hedges:
-
-
(1)
-
-
(1)
-
-
-
(1)
Closing balance
(4)
(9)
(11)
-
3
(21)
(71)
(71)
(92)
Continuing hedging relationships
Hedge accounting no longer applied
Foreign exchange risk
Interest
rate risk
Commodity price risk
Foreign
exchange
risk
Interest
rate risk
2023 ($m)
Trading
transaction –
uncommitted
Issued
financial
debt and
interest
Issued
financial
debt and
interest
Gas
Soft
commodities
Subtotal
Foreign
exchange
risk –
translation
Issued
financial
debt and
interest
Subtotal
Total
Opening balance
77
(44)
39
-
32
104
(71)
-
(71)
33
Gains/(losses) on hedges
recognized in OCI
(8)
(35)
18
4
(13)
(34)
(3)
-
(3)
(37)
Transferred directly to assets
or liabilities
-
-
(4)
(22)
(26)
-
-
-
(26)
(Gains)/losses on hedges
reclassified to profit or loss:
General and administrative
(51)
-
-
-
-
(51)
-
-
-
(51)
Financial expense, net
-
40
(44)
-
-
(4)
-
-
-
(4)
Recycled (losses)/gains on
de-designated hedges:
-
-
-
-
-
-
-
-
-
-
Closing balance
18
(39)
13
-
(3)
(11)
(74)
-
(74)
(85)
Amounts reclassified from the cash flow hedge reserve into profit or loss are recognized in the consolidated income statement in Other
general and administrative for hedges of uncommitted foreign currency forecast transactions, in Financial expense, net for hedges of
committed foreign currency monetary items and for hedges of interest rate risk and in Cost of goods sold for hedges of commodity price risk.
Credit risk
Credit risk arises from the possibility that counterparties involved in transactions with Syngenta may default on their obligation, resulting in
financial losses to Syngenta. Credit risk relates both to financial assets (including derivatives, marketable securities and money market
contracts) as well as to operational assets managed by Syngenta’s businesses (such as trade receivables) and cash deposits. Syngenta’s
maximum exposure to credit risk is the carrying values of its financial assets and receivables, including derivatives with positive market values.
These amounts are disclosed in Note 25. Syngenta has policies and operating guidelines in place to ensure that financial instrument
transactions are only entered into with high credit quality banks and financial institutions. These include limits in respect of counterparties to
ensure that there are no significant concentrations of credit risk. Syngenta continuously monitors the creditworthiness of its counterparties
based on credit ratings and credit default swap data. To minimize its exposure to derivative positions, Syngenta enters into netting
agreements under an International Swaps and Derivatives Association (ISDA) master agreement with its respective counterparties. In
addition, for almost all derivative positions, Syngenta has entered into Credit Support Annex contracts (CSAs) under which cash is exchanged
as collateral. Under these agreements, the amounts owed by each counterparty on a single day in respect of all transactions outstanding are
aggregated into a single net amount that is payable by one party to the other. In defined material adverse effects, all outstanding transactions
under the agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement of all
transactions. Currently, Syngenta does not have any legally enforceable right to offset recognized amounts, because the right to offset is
enforceable only on the occurrence of future events such as a default on the bank loans or other credit events. At December 31, 2024,
Syngenta had no treasury or derivative transactions representing a significant concentration of credit risk. No credit losses have been incurred
from investments in derivative financial instruments during the years ended December 31, 2024 and 2023.
For discussion of credit risk to trade and other accounts receivable see Note 8.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
65
Liquidity risk and refinancing risk
Within Syngenta’s risk management framework, liquidity risk is defined as the risk of being unable to raise funds to meet payment obligations
when they fall due. Refinancing or funding risk is defined as the risk of being unable, on an ongoing basis, to borrow in the market to fund
actual or proposed commitments. Syngenta mitigates its liquidity and refinancing risk by: maintaining a committed unsecured funding facility;
ongoing discussions with its core banks to best monitor its funding capacity; simulations; and diversification of its debt portfolio.
Syngenta’s liquidity risk policy is to maintain at all times sufficient liquidity reserves both at the Syngenta AG Group and subsidiary level in
order to meet payment obligations as they become due and also to maintain an adequate liquidity margin. The planning and supervision of
liquidity is the responsibility of the subsidiaries and Group Treasury. Liquidity requirements are forecasted on a daily basis. Syngenta operates
regional or country cash pools to allow efficient use of its liquidity reserves. As disclosed in note 15, Syngenta has entered into supplier
finance arrangements to manage its working capital. The finance providers are high credit quality banks and Syngenta has no significant
concentration of liquidity risk with these finance providers.
Short-term liquidity
Two of Syngenta’s larger markets are Europe and North America. Both sales and operating profit in these two regions are seasonal and are
weighted towards the first half of the calendar year, reflecting the northern hemisphere planting and growing cycle. Latin America is the largest
market for Syngenta and sales and operating profit there are weighted towards the second half of the calendar year, reflecting the southern
hemisphere planting and growing cycle. This seasonal operating activity results in seasonal working capital requirements.
Syngenta’s principal source of liquidity consists of cash generated from operations. Syngenta makes use of trade receivable factoring across
various regions and reverse factoring arrangements to manage timing of cash flows. Working capital fluctuations due to the seasonality of the
business are supported by short-term funding available from a $2.5 billion Global Commercial Paper program, a $5 billion revolving short-term
credit facility with Syngenta Group (HK) Holdings Company Limited and $3.5 billion committed credit lines with various financial institutions.
($m)
2024
2023
Balance outstanding at
December 31, 2024
Average balance
outstanding
Balance outstanding at
December 31, 2023
Average balance
outstanding
Global Commercial Paper program
-
99
-
493
Short-term credit facility with Syngenta Group
1,000
2,683
2,950
1,436
Committed credit lines
200
1,623
-
2,110
Total
1,200
2,950
The maturity analyses for Syngenta’s current financial liabilities other than short-term derivative liabilities are presented in Notes 16 and 17.
At December 31, 2024 and 2023 the maturities of short-term derivative liabilities are as follows:
($m)
Total
0–90 days
90–180 days 180 days– 1 year
2024
124
86
24
14
2023
497
303
127
67
Long-term financing
Long-term capital employed is currently financed through nine unsecured bonds, two unsecured notes issued under the Note Purchase
Agreement in the US Private Placement market, three term loans with financial institutions and five intragroup term loans with fellow
subsidiaries of Syngenta Group. Movements in long-term capital are described in Note 18.
The following table shows Syngenta’s contractually agreed (undiscounted) interest and principal repayments on long-term financing-related
non-derivative financial liabilities and the related derivatives held at December 31, 2024 and 2023. Non-derivative financial liabilities are
recorded at amortized cost (less related issuance costs). Derivative financial liabilities are recorded at fair value. The table therefore shows the
total carrying amount of Syngenta’s financial debt adjusted for the effect, if any, of applying fair value hedge accounting.
Non-derivative financial liabilities
(Unsecured bonds, notes and term loans)
Derivative financial liabilities
(Interest rate and cross-currency swaps)
2024 ($m)
Fixed rate
interest
Variable rate
interest
Principal
repayment
Total
Fixed rate
interest
Variable rate
interest
Repayment1
Total
Less than 1 year
150
124
1,233
1,507
(133)
88
-
(45)
1-3 years
165
169
5,802
6,136
(133)
85
(212)
(260)
3-5 years
36
-
502
538
-
-
-
-
5-10 years
51
-
-
51
-
-
-
-
More than 10 years
124
-
184
308
-
-
-
-
Total payments
526
293
7,721
8,540
(266)
173
(212)
(305)
Net carrying amount
7,753
(244)
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
66
Non-derivative financial liabilities
(Unsecured bonds, notes and term loans)
Derivative financial liabilities
(Interest rate and cross-currency swaps)
2023 ($m)
Fixed rate
interest
Variable rate
interest
Principal
repayment
Total
Fixed rate
interest
Variable rate
interest
Repayment1
Total
Less than 1 year
161
141
1,567
1,869
(33)
14
-
(19)
1-3 years
240
78
5,530
5,848
(47)
17
(165)
(195)
3-5 years
61
-
889
950
(11)
-
(6)
(17)
5-10 years
55
-
179
234
-
-
-
-
More than 10 years
134
-
184
318
-
-
-
-
Total payments
651
219
8,349
9,219
(91)
31
(171)
(231)
Net carrying amount
8,371
198
1 The repayments above (and the net carrying amount of the derivative financial liabilities) do not include the amounts paid as collateral
Forecast data for liabilities that may be incurred in the future is not included in the table above. Amounts in foreign currency were translated
to US dollars at the closing rate at the reporting date. Variable payments at each year end arising from financial instruments were calculated
based on the forward interest rate yield curve and the spread that Syngenta pays on its outstanding debt and open derivatives at
December 31, 2024 and 2023, respectively. Non-derivative financial liabilities, repayment of which can be demanded by the counterparty at
any time, have been assigned to the earliest repayment period.
Capital structure
Absent major acquisitions, Syngenta targets maintaining an investment grade credit rating, as recognized by major third-party rating agencies,
which it currently believes provides an optimal balance between financial flexibility and the cost of capital. At December 31, 2024, Syngenta’s
credit ratings were as follows: Fitch Ratings Ltd BBB/F3; Standard & Poor's Rating Services BBB/A-2; and Moody's Investors' Services
Limited Baa3/P-3.
Syngenta manages capital by monitoring levels of net debt, as calculated below, against a target. Syngenta defines net debt as excluding
financing-related derivatives and related collateral paid and received under CSA agreements as these balances offset each other. Capital is
returned to the shareholder primarily through dividend payments.
The net debt to equity ratio was 130 percent at December 31, 2024 (150 percent at December 31, 2023).
The components of net debt at December 31, 2024 and 2023 are as follows:
($m)
2024
2023
Current financial debt
3,039
5,328
Non-current financial debt
7,753
7,868
Cash and cash equivalents
(1,025)
(1,639)
Marketable securities1
(368)
(548)
Net debt at December 31
9,399
11,009
1 Included within ‘Derivative and other financial assets’ and ‘Financial and other non-current assets’
The movements in net debt are as follows:
($m)
2024
2023
January 1
11,009
8,588
New leases in the year
384
399
Other non-cash items
(113)
302
Cash paid under CSAs, net
(347)
124
Foreign exchange effect on net debt
(446)
483
Dividends paid
-
500
Free cash (inflow) / outflow
(1,088)
613
December 31
9,399
11,009
Syngenta defines free cash flow as cash flow from operating and investing activities, excluding investments in and proceeds from marketable
securities, which are included in investing activities; excluding cash flows from and used for foreign exchange movements and settlement of
related hedges on inter-company loans, which are included in operating activities; and including cash flows from acquisitions of non-controlling
interests, which are included in financing activities.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
67
25. Financial assets and liabilities
The following tables show the carrying amounts and fair values of financial assets and liabilities by category of financial instrument and
reconciliation to where they are presented in the balance sheet as at December 31, 2024 and 2023. The fair value hierarchy level is shown for
those financial assets and liabilities that are carried at fair value in the balance sheet.
Carrying amount
(based on measurement basis)
2024 ($m)
Amortized
cost
Fair value
level 1
Fair value
level 2
Fair value
level 31
Total
Comparison
fair value
Footnote
Cash and cash equivalents
1,025
‐
‐
‐
1,025
1,025
2
Trade receivables
4,897
‐
‐
‐
4,897
4,897
2
Other accounts receivable:
Financial assets
839
‐
‐
‐
839
839
2
Non-financial assets
‐
‐
‐
‐
529
‐
3
Total
1,368
Derivative and other financial assets:
Derivative financial assets
‐
7
501
‐
508
508
4
Marketable securities
67
‐
83
‐
150
147
5
Other current financial assets
180
‐
‐
‐
180
180
2
Total
838
‐
Financial and other non-current assets:
Equity investments at fair value through OCI
‐
‐
‐
162
162
162
1
Derivative financial assets
‐
‐
40
‐
40
40
4
Loans and other non-current receivables
154
‐
‐
‐
154
154
2
Non-current marketable securities
218
‐
‐
‐
218
204
5
Other, not carried at fair value
‐
‐
‐
‐
656
‐
3
Total
1,230
Trade accounts payable
5,654
‐
‐
‐
5,654
5,654
2
Current financial debt and other financial liabilities:
Derivative financial liabilities
‐
‐
124
‐
124
124
4
Lease liabilities
134
‐
‐
‐
134
‐
3
Other non-derivative financial liabilities
3,232
‐
‐
‐
3,232
3,232
2
Total
3,490
Other current liabilities:
Financial liabilities
106
‐
‐
‐
106
106
2
Non-financial liabilities
‐
‐
‐
‐
1,066
‐
3
Total
1,172
Financial debt and other non-current liabilities:
Derivative financial liabilities
‐
‐
243
‐
243
243
4
Lease liabilities
1,234
‐
‐
‐
1,234
‐
3
Other non-derivative financial liabilities
6,530
‐
‐
‐
6,530
6,497
6
Non-financial liabilities
‐
‐
‐
‐
158
‐
3
Total
8,165
1 Consist mainly of unquoted companies whose proprietary technologies are still at the development stage. The main valuation input for these transactions is the price from their
most recent shareholder financing transactions
2 Carrying amount approximates the estimated fair value
3 Fair value is not required to be disclosed for non-financial assets, including defined benefit pension assets, for non-financial liabilities and for lease liabilities
4 Derivative financial assets and liabilities are valued through models that incorporate observable market inputs, including foreign exchange spot and forward rates, as well as yield
curves
5 Marketable securities measured at fair value through profit and loss consist mainly of corporate bonds and mutual funds held for trading, for which the main valuation input is the
observable price quotation of these instruments. For marketable securities measured at amortized cost, the carrying amount is a reasonable approximation of their fair value,
except when there is observable price quotation of these instruments in which case that input is being used
6 Financial liabilities include exchange traded bonds, non-exchange traded private placement notes issued by Syngenta and bilateral term loans. The fair value disclosed includes
level 2 fair value measurements derived from observable price quotations for the bonds and discounted cash flow models for loans, incorporating observable market data
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
68
Carrying amount
(based on measurement basis)
2023 ($m)
Amortized
cost
Fair value
level 1
Fair value
level 2
Fair value
level 31
Total
Comparison
fair value
Footnote
Cash and cash equivalents
1,639
‐
‐
‐
1,639
1,639
2
Trade receivables
5,393
‐
‐
‐
5,393
5,393
2
Other accounts receivable:
Financial assets
625
‐
‐
‐
625
625
2
Non-financial assets
‐
‐
‐
‐
571
‐
3
Total
1,196
Derivative and other financial assets:
Derivative financial assets
‐
8
249
‐
257
257
4
Marketable securities
31
177
249
‐
457
457
5
Other current financial assets
288
‐
‐
‐
288
288
2
Total
1,002
‐
Financial and other non-current assets:
Equity investments at fair value through OCI
‐
‐
‐
182
182
182
1
Derivative financial assets
‐
‐
22
‐
22
22
4
Loans, receivables and pooled investments
178
‐
‐
‐
178
178
2
Non-current marketable securities
91
‐
‐
‐
91
91
5
Other, not carried at fair value
‐
‐
‐
‐
425
‐
3
Total
898
Trade accounts payable
5,929
‐
‐
‐
5,929
5,929
2
Current financial debt and other financial liabilities:
Derivative financial liabilities
‐
‐
497
‐
497
497
4
Lease liabilities
127
‐
‐
‐
127
‐
3
Other non-derivative financial liabilities
5,353
‐
‐
‐
5,353
5,353
2
Total
5,977
Other current liabilities:
Financial liabilities
124
‐
‐
‐
124
124
2
Non-financial liabilities
‐
‐
‐
‐
1,228
‐
3
Total
1,352
Financial debt and other non-current liabilities:
Derivative financial liabilities
‐
‐
198
‐
198
198
4
Lease liabilities
1,064
‐
‐
‐
1,064
‐
3
Other non-derivative financial liabilities
6,836
‐
‐
‐
6,836
6,782
6
Non-financial liabilities
‐
‐
‐
‐
221
‐
3
Total
8,319
1 Consist mainly of unquoted companies whose proprietary technologies are still at the development stage. The main valuation input for these transactions is the price from their
most recent shareholder financing transactions
2 Carrying amount approximates the estimated fair value
3 Fair value is not required to be disclosed for non-financial assets, including defined benefit pension assets, for non-financial liabilities and for lease liabilities
4 Derivative financial assets and liabilities are valued through models that incorporate observable market inputs, including foreign exchange spot and forward rates, as well as yield
curves
5 Marketable securities measured at fair value through profit and loss consist mainly of corporate bonds and mutual funds held for trading, for which the main valuation input is the
observable price quotation of these instruments. For marketable securities measured at amortized cost, the carrying amount is a reasonable approximation of their fair value
6 Financial liabilities include exchange traded bonds, non-exchange traded private placement notes issued by Syngenta and bilateral term loans. The fair value disclosed includes
level 2 fair value measurements derived from observable price quotations for the bonds and discounted cash flow models for loans, incorporating observable market data
The levels of fair value hierarchy used above are defined as follows:
−
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
−
Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
−
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data.
In 2024 and 2023, there were no transfers between level 1 and level 2 or into or out of level 3 of the fair value hierarchy or between the fair
value and amortized cost categories.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
69
Movements in equity investments measured at fair value through OCI for the years ended December 31, 2024 and 2023 were as follows:
2024
2023
($m)
Total
Out of which:
Level 3
Total
Out of which:
Level 3
January 1
182
182
156
153
Unrealized (losses)/gains recognized on equity instruments at fair value
through OCI
(31)
(31)
-
2
Additions due to issues
18
18
20
20
Disposals
-
-
(1)
-
Currency translation effects and other
(7)
(7)
7
7
December 31
162
162
182
182
Income, expense, gains and losses relating to financial instruments recognized in profit or loss during the years ended December 31, 2024
and 2023 are as follows:
2024 ($m)
Amortized cost
loans and
receivables2
Marketable
securities
FVTPL
Derivative
assets and
liabilities
Lease
liabilities
Other liabilities
carried at
amortized cost
Total
Recognized within Financial expense, net 1:
Finance income - Interest income
108
108
Finance expense - Interest expense
(105)
(18)
(62)
(670)
(855)
Finance income - Changes in fair value
69
69
Recognized within Marketing and distribution:
Impairment charges
(119)
(119)
Total
(116)
69
(18)
(62)
(670)
(797)
2023 ($m)
Amortized cost
loans and
receivables2
Marketable
securities
FVTPL
Derivative
assets and
liabilities
Lease
liabilities
Other liabilities
carried at
amortized cost
Total
Recognized within Financial expense, net 1:
Finance income - Interest income
111
-
-
-
-
111
Finance expense - Interest expense
(108)
-
21
(47)
(647)
(781)
Finance expense - Changes in fair value
-
(272)
-
-
-
(272)
Recognized within Marketing and distribution:
Reversal of impairment charges
29
-
-
-
-
29
Total
32
(272)
21
(47)
(647)
(913)
1 Financial expense, net also includes $48 million of bank charges (2023: $48 million) presented in Finance expense within the consolidated income statement
2 Interest expense includes derecognition losses on financial assets
Foreign exchange restrictions in Argentina
Beginning in September 2019, the Argentine government has imposed and continues to impose significant restrictions on foreign exchange
transactions. During 2023, the restrictions tightened significantly and substantially limited the ability of Syngenta Agro S.A., a subsidiary of
Syngenta AG (hereafter “Syngenta Argentina”) to secure foreign currency and make payments for imports and distributions out of Argentina.
As a result, Syngenta Argentina invested the Argentine pesos generated from operations into marketable securities which had a strategy
designed to manage the foreign currency exposure. In the final quarter of 2023, the new Argentine government significantly devalued the
peso by more than 100 percent against the US dollar, which adversely impacted the value of Syngenta Argentina´s marketable securities held
at fair value through profit or loss (FVTPL), resulting in a net loss of $272 million for the year ended December 31, 2023. As at December 31,
2023, $441 million of marketable securities were reported within Derivative and other financial assets on the balance sheet, which were
subject to currency exchange restrictions as described above.
During 2024, certain restrictions on foreign exchange transactions have been eased allowing Syngenta Argentina to make payments out of
Argentina for current and future imports and reducing significantly the amount of available funds to invest into marketable securities. As at
December 31, 2024, the total amount of marketable securities held by Syngenta Argentina was $215 million, comprising $94 million reported
within Derivative and other financial assets and $121 million reported within Financial and other non-current assets.
26. New IFRSs and accounting policies
Adoption of New IFRSs
Syngenta has adopted the following new or revised IFRSs from January 1, 2024. The adoption of these IFRSs had no material impact on
these consolidated financial statements:
−
“Classification of Liabilities as Current or Non-current” and “Non-current Liabilities with Covenants”, Amendments to IAS 1;
−
“Lease Liability in Sale and Leaseback”, Amendment to IFRS 16;
−
“Supplier Finance Arrangements”, Amendments to IAS 7 and IFRS 7;
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
70
Syngenta has assessed the potential impact of adopting “Lack of Exchangeability”, Amendments to IAS 21; that will be mandatory from
January 1, 2025. Based on an analysis to date, Syngenta does not believe that these amendments will have a material impact on its
consolidated financial statements when adopted.
Syngenta is currently assessing the potential impacts arising from the adoption of the following amendments, which are not mandatory until
after December 2025:
-
“Classification and Measurement of Financial Instruments”, Amendments to IFRS 9 and IFRS 7;
-
“Annual improvements to IFRS Accounting Standards – Volume 11”;
-
“Contracts Referencing Nature-dependent Electricity”, Amendments to IFRS 9 and IFRS 7;
-
IFRS 18 Presentation and Disclosure in Financial Statements; and
-
“Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”, Amendments to IFRS 10 and IAS 28.
Accounting policies
Business combinations
Syngenta accounts for business combinations in accordance with IFRS 3, using the acquisition method. For this purpose, a business is an
integrated set of activities and assets that includes, as a minimum, an input and a substantive process and is capable of being conducted and
managed for the purpose of providing goods or services to customers, generating investment income or other income from ordinary activities,
and the fair value of which does not consist substantially exclusively of a single identifiable asset or group of similar identifiable assets. At the
date it acquires control of another business, Syngenta records the fair value of the agreed consideration payable, including the estimated fair
value of any contingent consideration and of any pre-existing ownership interest it holds in the acquired entity. Directly attributable acquisition
transaction costs are expensed as incurred. The assets and liabilities of acquired businesses are identified and recorded in the consolidated
financial statements at their acquisition date fair values, with certain exceptions as set out in IFRS 3. Acquired intangible assets are generally
valued based on the income approach: the relief from royalty method is generally used for brand names, the distributor method for customer
relationships, and the residual income method for product technology rights. Acquired land and buildings are valued based on the market
approach and specialized plant and equipment based on the cost approach.
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the rate prevailing at the
balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies, stated at historical cost or fair value, are translated
into the functional currency at the foreign exchange rate prevailing at the date of the transaction or the date the fair value was determined,
respectively. Foreign currency transactions are translated into the relevant functional currency at the exchange rate that approximates the
actual exchange rate on the date of the transaction. With exceptions for Syngenta AG, Syngenta Agro S.A., and certain regional supply
centers, holding and finance subsidiaries, which have the US dollar as their functional currency because their funding, receipts and payments
are predominantly transacted in US dollars, each Syngenta subsidiary uses the local currency of its country of operations as its functional
currency. Unrealized gains or losses related to designated cash flow hedging arrangements and gains and losses on remeasuring equity
investments designated at fair value through OCI are recognized in OCI. All other resulting foreign exchange transaction gains and losses are
recognized in profit or loss and presented within Financial expense, net. Foreign exchange gains and losses on marketable securities
measured at fair value through profit and loss are presented net as part of fair value changes.
Income, expense and cash flows of foreign operations are translated into US dollars using average exchange rates prevailing during the
period. Assets and liabilities of foreign operations are translated to US dollars using exchange rates prevailing at the balance sheet date.
Foreign exchange differences arising on these translations are recognized directly in OCI. Upon disposal or loss of control of a foreign
subsidiary, the cumulative currency translation difference relating to the subsidiary, is reclassified from equity to profit or loss as part of the gain
or loss on disposal.
The consolidated historical cost of inventories that have been transferred between Syngenta AG group entities since their initial purchase or
manufacture is measured by translating the currencies in which the costs of purchase or manufacture were incurred into US dollars at the
exchange rates prevailing at the date when those costs were incurred, and foreign exchange differences arising on retranslating these
amounts to US dollars at the rates at the balance sheet date or the date the inventories were sold, as applicable, are recognized in OCI.
Revenue
Syngenta’s main source of revenue is product sales. Control of products passes to Syngenta’s customers, and revenue for product sales is
recognized, at a point in time which is usually upon shipment or delivery, subject to reasonable assurance of collectability. Syngenta has a
range of payment terms which are typically short term, in line with market practice and without any significant financing component. Shipment
and delivery are defined based on the terms of the sale contract. Syngenta also derives revenue from licensing the right to use its intellectual
property (IP), principally its seeds germplasm and traits. Each licensing contract Syngenta enters into has unique terms and certain licensing
contracts may involve significant upfront or milestone payments in addition to sales-based royalties.
Revenue is measured at the amount of consideration to which Syngenta expects to be entitled in exchange for the products or license rights it
transfers to customers.
The main forms of variable revenue for Syngenta are as follows and the judgments associated with estimating their amount are discussed in
Note 2:
−
cash incentive programs that provide rebates and discounts dependent on achievement of targets for purchase of Syngenta products,
and cash discounts for punctual or early payment of invoices. Syngenta recognizes sales minus an allowance for rebates, and a refund
liability presented within Trade accounts payable in the consolidated balance sheet. The allowance and liability are measured at the
amount expected to be refunded or credited to customers, estimated based on the programs’ terms, market conditions and historical
experience.
−
sales returns, which arise both in markets where the customer has a legal or contractual right of return and in markets where customers
do not have such rights but Syngenta’s commercial practice is to accept returns. In either case, Syngenta recognizes sales minus an
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
71
allowance for expected returns, an estimated refund liability, and an asset for the right to recover its products corresponding to the
expected returns. The refund liability and the asset are presented within Trade accounts payable and Inventories respectively in the
consolidated balance sheet. The allowance and liability are measured at the amount expected to be refunded or credited to customers
and the asset is measured at the standard purchase or production cost of the underlying Syngenta products, minus allowances for
transportation and obsolescence where relevant.
−
in licenses which grant the right to use Syngenta’s IP as it exists when the license is granted, and in which Syngenta receives revenue
for non-refundable lump sums and minimum guaranteed income amounts which can be reliably estimated and for which there are no
related future Syngenta performance obligations or contingencies other than the passage of time, Syngenta recognizes that revenue on
signature of or on the effective date of the license, whichever is later. Revenue for lump sum milestone payments which are contingent
on product regulatory approvals is recognized only when the competent regulatory authorities have granted the relevant approvals.
Sales-based royalty income is recognized in the period that the licensees make sales in respect of which the royalties are payable.
In certain markets, sales terms allow customers the option of a one-time, non-repeatable extension of credit, for a defined additional period, in
respect of a defined proportion of purchases made during a defined period, if the customers still have the inventories on hand upon expiration
of the initial agreed credit period. Customers have no right to return these inventories, and must pay unconditionally when the additional credit
period expires. In accordance with IFRS 15, revenue for these sales is recognized upon product delivery.
Syngenta periodically enters into prepayment contracts with customers whereby it receives advance payments for products to be delivered in
a future period. These advance payments are recorded as liabilities and presented as part of Contract liabilities in the consolidated balance
sheet. Advance payment liabilities are released and revenues associated with such advance payment transactions are recognized when
control of the prepaid products passes to the customer.
For certain customers in certain markets, trade receivables are settled either with proceeds from sales by such customers of agricultural
commodities or by delivery of commodities to Syngenta by such customers. For these arrangements, Syngenta recognizes revenue when it
has a legally enforceable receivable, the amount of which is reliably measurable based on an agreed price for the Syngenta products. Where
Syngenta has a contract with the customer for physical delivery of a commodity at a fixed price which is hedged using derivative financial
instruments, an embedded derivative is recognized for the fair value of the contract until physical delivery. When Syngenta subsequently
resells the commodity, it classifies additional revenue as sales only to the extent that the original contract for the sale of Syngenta products
included revenue that was contingent upon the commodity sales proceeds. Any remaining gains or losses on the commodity sale
are recorded in Marketing and distribution expense in the consolidated income statement.
Research and development
Research expenses are charged to the consolidated income statement when incurred. As disclosed in Note 2, internal development costs are
capitalized as intangible assets only when there is an identifiable asset that can be completed and is expected to generate future economic
benefits and when the cost of such an asset can be measured reliably. Costs incurred internally to develop new chemical or biological crop
protection products based on active ingredients that have not yet obtained regulatory approval, or to develop new seed varieties containing
genetically modified (GM) traits that have not yet obtained regulatory approval, are expensed as incurred because of the uncertainty inherent
in the outcome of the regulatory approval process. Costs incurred in the design, development and testing of new or improved non-GM or
deregulated GM seed varieties and hybrids, of formulations of existing registered chemical active ingredients or projects to extend the
application range of existing crop protection products, or of new and improved production processes that do not themselves require regulatory
approval and that can be applied to products which have already obtained approval, are capitalized if the processes are technically feasible,
Syngenta intends and has sufficient resources to complete the development, the product or process will generate future economic benefits,
and expenditure attributable to developing the product or process can be measured reliably. Government grants received in respect of
research and development costs, including tax credits treated as government grants for accounting purposes, are recognized in profit or loss
in the same periods as the costs to which they relate. Development expenses Syngenta incurs to develop technology on behalf of a third party
under a collaboration agreement are capitalized and amortized over the agreement term if Syngenta expects to recover the costs under the
terms in that agreement.
Costs of purchasing distribution rights, patent rights and licenses to use or sell products, or technology or registration data are capitalized as
intangible assets. Costs of applying for patents for internally developed products, costs of defending existing patents and costs of challenging
patents held by third parties where these are considered invalid and are expensed as incurred.
Expenses by function
Cost of goods sold includes costs of purchasing and producing inventories that have been sold to third parties, inbound and inter-site
distribution expenses, impairment of inventories, environmental remediation costs associated with ongoing Syngenta manufacturing sites, and
general overhead expenses of Syngenta’s Production and Supply function which are expensed as incurred. Marketing and distribution
includes costs of selling products, providing technical support for products sold, marketing and promotional expenses, distribution of finished
products to third party customers, and impairment of trade and other receivables. Research and development includes the expenses of
Syngenta’s research sites and third party research collaboration agreements, expenses incurred during the regulatory process for Syngenta
products and the costs of Syngenta’s global field trials organization. Other general and administrative includes expenses of general
management, finance, human resources, information systems, legal affairs and taxes, corporate affairs and communications, business
planning and corporate development functions. Services provided by these departments to the Production and Supply, Marketing and
Distribution and Research and Development functions are allocated to and included within those other functions. Gains and losses arising on
routine asset disposals and gains and losses reclassified from OCI when hedged forecast foreign currency trading transactions affect profit or
loss are also reported within Other general and administrative. Impairment of property, plant and equipment that results from restructuring
plans, rather than ongoing activities of the functions responsible for the assets, is included in Other general and administrative. Impairment of
goodwill and intangible assets is also included in Other general and administrative unless a specific function is accountable for the impairment
loss. Non-current asset depreciation and amortization are charged to the functions responsible for the related assets.
Restructuring
Restructuring represents the effect on reported performance of initiating and enabling business changes that are considered major and that, in
the opinion of management, will have a material effect on the nature and focus of Syngenta’s operations, and therefore require separate
disclosure to provide a more thorough understanding of business performance. Restructuring includes the incremental costs of closing,
restructuring or relocating existing operations, and gains or losses from related asset disposals. Restructuring also includes the effects of
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
72
analyzing and preparing for potential industry consolidation transactions as well as completing and integrating significant business
combinations and divestments, including related transaction costs, gains and losses. Recurring costs of normal business operations and
routine asset disposal gains and losses, including those arising from sale and leaseback transactions carried out to optimize Syngenta AG
group financing, are excluded.
Income taxes
Income taxes for the year comprise current and deferred taxes, calculated using rates enacted or substantively enacted at the balance sheet
date. Current tax is the expected tax payable on taxable income for the year and any adjustments to tax payable in respect of previous years.
Deferred tax is recognized using the liability method and thus is calculated on temporary differences between the tax bases of assets and
liabilities and their respective carrying amounts in the consolidated balance sheet. Syngenta accounts for income tax credits as a reduction in
income tax expense if they are receivable solely through offset against an income tax liability, and treats them as government grants for
accounting purposes if they are receivable in cash if no income tax liability arises against which Syngenta is required or permitted to offset the
tax credits. Deferred tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except
where the timing of the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the
foreseeable future. Deferred tax liabilities are not recognized on the initial recognition of goodwill if the carrying amount of goodwill exceeds its
tax base. Deferred tax assets, including those related to unused tax losses, are recognized to the extent that it is probable that future taxable
profit will be available against which the assets can be utilized. Income tax expense, current and deferred, is recognized in profit or loss unless
it relates to items recognized in OCI or in equity in which case the tax expense is also recognized in OCI or equity, respectively.
Syngenta’s policy is to comply fully with applicable tax regulations in all jurisdictions in which Syngenta’s operations are subject to income
taxes. Syngenta’s estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by
Syngenta’s subsidiaries will be subject to review or audit by the relevant tax authorities. Syngenta and the relevant tax authorities may have
different interpretations of how regulations should be applied to actual transactions. Syngenta records provisions for taxes it estimates will
ultimately be payable when the reviews or audits have been completed, including allowances for any interest and penalties which may
become payable. Syngenta releases these provisions when the tax audit of the applicable year is completed or an Advance Pricing
Agreement (APA) settlement is reached that impacts previous years’ tax payments, or otherwise when the statute of limitations for
the applicable year expires, unless there is evident reason for earlier release.
Leases
IFRS 16 requires a lessee to account for all leases, unless exempt as described below, by recognizing a lease asset (right-of-use asset) for
the right to use the asset underlying the lease (underlying asset) and a corresponding liability for lease payments during the lease term,
defined as the non-cancellable period of the lease and any additional periods for which the lessee has an option to use or purchase the asset
that it is reasonably certain to exercise. In assessing whether such periods are reasonably certain, Syngenta considers the length of the non-
cancelable lease period in each lease, contractual terms and conditions relating to the optional period(s) and to exercising the option(s), recent
or planned future leasehold improvements, the impact of terminating the lease on its operations and associated termination costs, and
whether Syngenta is reasonably certain to continue unchanged all other significant terms in the current lease. The lease liability includes
payment for an option to purchase the underlying asset if, and only if, Syngenta is reasonably certain to exercise that option.
As permitted by IFRS 16:
−
Syngenta has included in the lease liability payments for services associated with leases of cars, but not with leases of other types of
asset;
−
Syngenta accounts for short term and low value item leases by expensing costs on a straight-line basis over the lease term, without
recognizing right-of-use assets and liabilities. Short term leases are all leases with a term of less than one year on inception. Low value
item leases are all leases of underlying assets worth $5,000 or less when new and which are independent of other assets.
For all other leases, on their commencement Syngenta recognizes:
−
a liability equal to the present value of payments required over the lease term for the use of the asset, excluding contingent payments,
discounted at Syngenta’s incremental borrowing rate (IBR). Syngenta’s IBR is comprised of a reference rate based on cash and swap
curves for the currency and maturity of the lease payments and a financing spread adjustment which differentiates between asset
classes based on the value of the collateral offered by the nature of the underlying asset. The spread adjustment for leases of land and
buildings is derived from market data for spreads on debt funded transactions to purchase commercial real estate. The spread
adjustment for leases of other assets is derived from the spread on Syngenta’s senior unsecured notes;
−
a right-of-use asset equal to the lease liability, adjusted by lease payments made or incentives received, by initial direct costs of
obtaining the lease and by an estimate of costs associated with obligations to decommission or restore the underlying asset or the site
where it is located.
Where Syngenta sells an asset to a third party and then subsequently leases back the asset, the transaction is accounted for as a sale-and-
leaseback transaction in accordance with IFRS 16. Syngenta applies the revenue recognition guidance in IFRS 15 to determine whether
control of the underlying asset passes to the buyer-lessor, in which case Syngenta accounts for the transaction as a sale. Where the sale of
the asset is considered to have satisfied the performance obligation requirements of IFRS 15, the original asset is derecognized, a lease
liability is recognized for the leaseback as described in the paragraph immediately above, and the right-of-use asset arising from the
subsequent leaseback is recognized at the proportion of the previous carrying amount of the asset that relates to the right of use retained.
Accordingly, only part of the gain or loss on disposal of the underlying asset is recognized immediately as any gain or loss arising on the
transaction relates to the rights transferred. The deferred gain is therefore recognized through reduced depreciation charges for the right-of-
use asset over the lease term.
After commencement, the right-of-use asset is amortized systematically over the lease term, except where Syngenta is reasonably certain to
exercise a purchase option in the lease agreement, in which case the asset is amortized over the same useful life that Syngenta would use to
depreciate an item of Property, plant and equipment similar to the underlying asset, and is subject to review for impairment. The lease liability
is accounted for at amortized cost using the IBR at lease commencement. The resulting interest cost is presented within Interest expense in
the consolidated income statement. Lease payments which are contingent on use of the underlying asset are not included in the lease liability
and are expensed as incurred.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
73
Financial instruments
Trade and other accounts receivable
Trade and other accounts receivable include invoiced amounts less adjustments for expected credit losses. Syngenta generally holds trade
receivables to collect their contractual cash flows and classifies and measures them at amortized cost.
Factoring arrangements transferring substantially all economic risks and rewards associated with accounts receivable to a third party are
accounted for by derecognizing the accounts receivable upon receiving the cash proceeds of the factoring arrangement. When it is not
apparent that all the risks and rewards have been substantially transferred or retained, Syngenta uses a Monte Carlo simulation model and
derecognizes accounts receivable only when over 90 percent of the cash flow variability has been transferred to a third-party factor. Factoring
arrangements that transfer to a third party some, but not substantially all economic risks and rewards are accounted for by continuing to
recognize Syngenta’s continuing rights over the receivable and by recognizing any related obligation to the third-party factor. Trade
receivables derecognized under IFRS 9 were initially recognized at amortized cost under the ‘held to collect’ business model. This
classification reflects Syngenta's intention to hold these receivables and collect the contractual cash flows.
Cash and cash equivalents
Cash includes cash on hand and demand deposits with banks and financial institutions. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value and have a maturity
of three months or less at the time Syngenta acquired or first records them.
Marketable securities
Marketable securities are financial assets which are traded in liquid markets and comprise mainly investments in debt securities, debt funds
and equity securities. Marketable securities that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost and subject to impairment based on their expected credit losses.
Marketable securities not giving rise on specified dates to cash flows that are solely payment of principal and interest are measured at fair
value through profit and loss. Marketable securities that are held for trading are presented as current assets.
Derivative and other financial instruments
Regular way purchases and sales of marketable securities are recognized at settlement date.
Financial assets and liabilities which have remaining contractual maturities of 12 months or less at the balance sheet date are presented
within Total current assets and Total current liabilities, respectively. Financial assets and liabilities which have remaining contractual maturities
of more than 12 months are presented within Financial and other non-current assets and Financial debt and other non-current liabilities,
respectively.
Equity investments in other entities which are not subsidiaries, associates or joint ventures of Syngenta are included in Financial and other
non-current assets. They are classified and measured at fair value through OCI and are revalued to fair value at each reporting date, with all
changes in fair value recognized within OCI. In Syngenta’s opinion, presenting gains and losses on these investments in OCI is more
consistent with Syngenta’s strategic investment objectives than presenting those gains and losses within profit and loss.
Other non-current receivables represent royalty and license receivables, loans to employees and other third parties, and amounts recoverable
from third parties in reimbursement of environmental remediation and other costs. These receivables are stated at amortized cost, less
provision for impairment where appropriate.
Financial debt is recognized initially at its fair value less transaction costs, which represents the net proceeds from issuing the debt.
Subsequently, financial debt is stated at amortized cost using the effective interest method, except where subject to a fair value hedge
relationship, in which case the carrying amount of the debt is adjusted by the change in the fair value of the hedged exposure during the
hedge relationship.
Derivative financial instruments are recorded initially at their fair value when Syngenta becomes a party to the instrument. They are revalued
to fair value at each reporting date and presented as financial assets when the fair value is positive and as financial liabilities when the fair
value is negative. The fair value changes are reported through profit and loss.
Fair values of publicly traded derivatives are based on quoted market prices of the specific instruments held at the balance sheet date.
Fair values of non-publicly traded derivatives are valued using accepted economic methodologies for pricing these financial instruments, such
as discounted cash flow analysis or option pricing models. The valuation models seek to make maximum use of market inputs existing at the
balance sheet date. The methods used to determine the fair value of specific types of non-publicly traded derivatives are as follows:
−
interest rate and cross-currency swaps are calculated as the present value of the estimated future cash flows. The future cash flows are
determined using relevant market forward interest rates at the balance sheet date and are discounted using the zero-coupon rates with
equivalent maturities for AA rated entities at the balance sheet date, as adjusted for the counterparty’s credit risk. These discount rates
incorporate the impact of net credit risk present in those derivative instruments. For cross-currency swaps, the discount rates reflect the
impact of the currency basis on the future cash flows denominated in different currencies;
−
forward contracts are determined using relevant market exchange rates at the balance sheet date;
−
currency options are valued using the Black-Scholes-Merton option pricing model, which incorporates spot exchange rates, zero coupon
rates with equivalent maturities for entities with credit ratings which approximate Syngenta’s counterparty credit risk, and implied volatility
in the market forward exchange rates at the balance sheet date; and
−
commodity options are valued using the Black-Scholes-Merton option pricing model, which incorporates future commodity price curves
with equivalent maturities and implied volatilities in the commodities markets at the balance sheet date, adjusted for counterparty credit
risk.
Realized gains and losses on disposal of amortized cost financial assets, revaluation gains and losses on derivatives not designated as
accounting hedges, and gains and losses corresponding to the ineffective portion of derivatives designated as accounting hedges are
recorded in profit or loss as they arise.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
74
Syngenta applies hedge accounting as follows:
Fair value hedges
The designated hedging instruments are remeasured to fair value and the underlying hedged items are remeasured by the amount of change
in the fair value of the hedged risk. The resulting remeasurement gains or losses are recognized in profit or loss as they occur.
Cash flow hedges
For the effective portion of the hedge, gains and losses on remeasuring designated hedging instruments to fair value are recognized in OCI as
part of the cash flow hedge reserve. If the hedged transaction results in recognition of a non-financial asset such as inventories, the
cumulative hedge gain or loss is reclassified as part of the carrying amount of the related inventories. For other hedged transactions, the
cumulative hedge gain or loss is reclassified from OCI into profit or loss in the period (or periods) during which the underlying hedged cash
flows affect profit or loss.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for cash flow hedge accounting, any cumulative
unrealized gain or loss on the hedging instrument remains in equity until the underlying hedged item affects profit or loss. However, if a
hedged forecasted transaction is no longer expected to occur, the cumulative unrealized gain or loss on the hedging instrument is immediately
reclassified into profit or loss.
Net working capital
For the purposes of presenting consolidated cash flows, the balance sheet items included in Net working capital are Inventories, Trade
receivables, Other accounts receivable, Trade accounts payable, Contract liabilities, Other current assets, Other current liabilities, and similar
items due after more than one year, such as minimum royalties from multi-year license agreements.
Inventories
Purchased products are recorded at acquisition cost while own-manufactured products are recorded at manufacturing cost including a share
of production overheads based on normal capacity. Cost of inventories is determined on a first-in-first-out basis. Allowances are made
for inventories with a net realizable value less than cost, or which are slow moving. Net realizable value is the estimated selling price in the
ordinary course of business, less the estimated costs of completion and costs to sell. Costs to sell include direct marketing, selling and
distribution costs. Unsaleable inventories are fully written off.
Property, plant and equipment
Property, plant and equipment are recorded at acquisition or production cost, less accumulated depreciation and any impairment losses.
Eligible borrowing costs are capitalized as part of the asset cost if construction is expected to take more than one year to complete.
Capitalization ceases when the asset is ready for its intended use. Depreciation is charged on a straight-line basis to the income statement,
starting from the date the asset is ready for use, over the following estimated useful lives:
Buildings
20 to 40 years
Machinery and equipment
10 to 25 years
Furniture and vehicles
5 to 20 years
Computer hardware
3 to 7 years
Land is recorded at acquisition cost and is not subject to depreciation.
Expenditures made for existing property, plant and equipment that will provide future economic benefit are capitalized and depreciated over
the revised remaining useful life of the asset.
Intangible assets other than goodwill
Intangible assets, other than goodwill, are recorded at cost less accumulated amortization and any impairment losses. Currently, all such
intangible assets are assigned a finite estimated useful life. The cost of acquired intangible assets other than goodwill consists of the purchase
price including transaction costs. The cost of internally generated intangible assets consists of direct internal and external design,
development, and testing costs incurred to make the asset ready for use in the manner intended by management. Borrowing costs associated
with internal projects to develop new products or software are capitalized to the extent that the costs of the project itself are capitalized and the
project is expected to take more than one year from inception to complete. Capitalization ceases when the products or software are ready for
their intended uses.
Intangible assets are amortized starting from the date the asset is ready for use. In respect of product rights, this is when regulatory approval
has been obtained. Asset lives are reviewed annually. The straight-line method of amortization is used except where another systematic basis
better reflects the pattern of consumption of the economic benefits represented by the asset. Amortization is charged within the consolidated
income statement to the function responsible for the asset, or to Other general and administrative. The estimated useful lives of major classes
of intangible assets are as follows:
Product rights
10 to 20 years
Trademarks and patents
5 to 20 years
Other intangibles
5 to 20 years
Software
3 to 10 years
Costs of successfully completed internal development projects which are capitalized because they meet the criteria described in Note 2 are
amortized starting from launch of the related products, over periods that depend on the nature of the project, as follows:
New crop protection formulations
20 years
Extension of existing crop protection formulations
15 years
Extension of product label applications for existing crop protection products
10 years
Seed breeding costs
4 to 9 years
Goodwill
Goodwill is the excess of the fair value of consideration transferred for an acquired business over the fair value of its identifiable net assets at
the acquisition date. Goodwill is recognized as an asset and presented within intangible assets. Goodwill is not amortized, but is tested
annually for impairment and reduced by any impairment losses.
Notes to the Syngenta AG Group Consolidated Financial Statements
Financial Report 2024
75
Impairment
Property, plant and equipment, right-of-use assets, intangible assets and investments in associates and joint ventures are tested for
impairment (“tested”) in accordance with IAS 36 unless classified as held-for-sale. Goodwill and intangible assets not yet ready for use are
tested annually and are also reviewed at each interim and annual reporting date to determine whether conditions changed since the most
recent review or annual test. Individual other non-current assets are reviewed at each reporting date to determine whether events or changes
in conditions indicate that the carrying amount of each asset may not be recoverable. If any such indication exists, the asset is tested for
impairment. Syngenta estimates an asset’s recoverable amount as the higher of the asset’s fair value less costs of disposal and its value in
use, which is the present value of the cash flows expected from the asset’s use and eventual disposal. An impairment loss is recorded in the
consolidated income statement to the extent that the carrying amount of the tested asset exceeds its recoverable amount. Impairment losses
are not reversed for goodwill, but are reversed for other assets if their recoverable amounts subsequently increase.
Provisions
A provision is recognized in the balance sheet when Syngenta has a legal or constructive obligation to a third party or parties as a result of
a past event, the amount of which can be reliably estimated and it is probable that an outflow of economic benefits will be required to settle the
obligation. The amount recognized as a provision is the best estimate of the expenditure required to settle the obligation at the balance sheet
date. Syngenta self-insures or uses a combination of insurance and self-insurance for certain risks. Provisions for these risks are estimated
in part by considering historical claims experience and other actuarial assumptions and, where necessary, counterparty risk. Provisions for
remediation costs are made when there is a present obligation, and it is probable that expenditure for the remediation work will be required
within ten years (or a longer period if specified by a legal obligation). Provisions arising from restructuring programs are recognized when
detailed formal plans have been established and when there is a valid expectation that such plans will be carried out by either starting to
implement them or announcing their main features. Provisions for legal and product settlement reflect Syngenta’s best estimate of the
outcome based on the facts known at the balance sheet date and includes an estimate of directly attributable legal costs.
Post-employment benefits
For defined benefit plans, plan assets are measured at fair value. The plans’ holdings in publicly quoted investments are valued at closing
prices at the balance sheet date. The plans’ holdings in pooled investment vehicles (PIVs) that are not publicly quoted are valued at the
respective investment managers’ current estimate of fair value, on a basis consistent with each PIV’s most recent audited financial
statements. Derivative contracts entered into directly by the pension plans are included within plan assets. Exchange traded derivatives are
valued at quoted balance sheet date bid prices for contracts which are assets, or offer prices for contracts which are liabilities, at the balance
sheet date. Fair values of over-the-counter derivatives are measured using independent third party pricing services. Insurance policies under
which the plan will receive payments that match the timing and amount of specific plan benefits and can be used only to fund those benefits
are valued at the same amount as the linked benefits within the related defined benefit obligation.
Defined benefit obligations are measured at the present value of future benefit payments attributable to employee service rendered up to the
balance sheet date, according to the benefit formula set out in the relevant pension plan rules and employment terms at the balance sheet
date. Where a surplus of plan assets over the benefit obligation exists at the balance sheet date or would arise upon payment of the minimum
funding commitment applicable to the pension plan, Syngenta evaluates the extent to which it will be able to realize the surplus over time
through refund rights and reductions in the present value of its future contributions to the plan. To the extent that Syngenta cannot realize the
surplus, the net defined benefit asset is reduced and, where applicable, an additional liability for minimum funding contributions is recognized.
Benefit expense charged to profit or loss comprises current service cost, which is the cost to Syngenta of the increase in benefits earned from
employee service in the period, gains and losses arising from amendments to and settlements of benefits that occurred during the period, and
interest on the net defined benefit asset or liability, which is the change in the present value of that asset or liability arising from the passage of
time during the period, measured using the rate used to discount the defined benefit obligation at the previous period end. In the consolidated
income statement, current service cost is presented within the same function line as the other personnel costs of the related employees, and
net interest cost is presented within Financial expense, net. The benefit obligation and cost are attributed to periods using the projected unit
credit actuarial method and are measured using long-term assumptions about expected future length of employee service, increases in pay
and pensions, longevity, and for healthcare plans, medical costs. Assumptions are reviewed annually. Gains and losses arising from
variances between assumptions and actual outcomes, and from changes to assumptions, are recognized in OCI in the period in which they
arise, and are not subsequently reclassified to profit and loss.
Contributions to defined contribution pension plans are recognized as an expense in profit or loss when they are due.
Dividends and capital distributions
Dividends payable to the shareholder of Syngenta AG are recorded as liabilities and as a reduction in shareholder’s equity when they are
approved by the shareholder of Syngenta AG and any conditions for payment are satisfied.
27. Subsequent events
In January 2025, Syngenta entered into a $500 million committed credit facility agreement with a fellow subsidiary of Syngenta Group,
maturing in November 2027.
On February 5, 2025, new tax legislation passed cantonal parliament in Basel Stadt where Syngenta AG is headquartered. In Switzerland,
after the canton has approved a new law, Swiss citizens can initiate a referendum by collecting signatures within a specified timeframe.
Substantive enactment is typically the date at which the period for collecting signatures lapses, which in this case would be the third week of
March 2025, or, in the case that a referendum is held, the date of the affirmative public vote, which would likely be scheduled during May
2025. The main measures to be introduced include the introduction of a two-tier cantonal tax rate, a reduction of deductions under the patent
box regime and the introduction of a subsidy regime based on innovation-linked parameters. Assuming the measures are enacted in 2025, an
estimated one-off income tax expense of $150 million from the revaluation of deferred tax positions would result.
Approval of the Consolidated Financial Statements
These consolidated financial statements were approved by the Board of Directors on March 6, 2025.
© 2025 KPMG AG, a Swiss corporation, is a group company of KPMG Holding LLP, which is a
member of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
KPMG AG
Grosspeteranlage 5
PO Box 3456
CH-4002 Basel
+41 58 249 91 91
kpmg.ch
Report of the Independent Auditor to the Board of Directors on the Audit of the Consolidated
Financial Statements of Syngenta AG, Basel
Opinion
We have audited the consolidated financial statements of Syngenta AG and its subsidiaries (the Group), which
comprise the consolidated balance sheet as at December 31, 2024, the consolidated income statement, the
consolidated statement of comprehensive income, the consolidated cash flow statement and the consolidated
statement of changes in equity for the year then ended, and notes to the consolidated financial statements,
including material accounting policy information.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position
of the Group as at December 31, 2024 and of its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with International Financial Reporting Standards (IFRS).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA) and Swiss Standards on
Auditing (SA-CH). Our responsibilities under those standards are further described in the “Auditor's Responsibilities
for the Audit of the Consolidated Financial Statements” section of our report. We are independent of the Group in
accordance with the requirements of the Swiss audit profession, as well as those of the International Ethics
Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Other Information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the financial report, but does not include the consolidated financial statements, the stand-alone financial
statements of the company and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
Syngenta AG, Basel
Report of the Independent Auditor
to the Board of Directors on the
Consolidated Financial Statements
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors’ Responsibilities for the Consolidated Financial Statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true
and fair view in accordance with IFRS, and for such internal control as the Board of Directors determines is
necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the
going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISA and SA-CH will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISA and SA-CH, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made.
−
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
Syngenta AG, Basel
Report of the Independent Auditor
to the Board of Directors on the
Consolidated Financial Statements
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
−
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
−
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Group as a basis for forming an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and review of the audit
work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
KPMG AG
{{Signatureleft}}
{{Signatureright}}
Michael Blume
Licensed Audit Expert
Artem Chumakov
Basel, March 6, 2025
Financial Statements of Syngenta AG
79
Income Statement
(for the years ended December 31, 2024 and 2023)
Notes
2024
(USD million)
2024
(CHF million)
2023
(USD million)
2023
(CHF million)
Income:
Dividend income
2
2,633
2,341
1,058
961
Other financial income
2
42
38
140
127
Total income
2,675
2,379
1,198
1,088
Expenses:
Financial expenses
(28)
(25)
(8)
(7)
Operating expenses
(5)
(5)
(6)
(5)
Impairment losses on Investments
2
(1,477)
(1,313)
-
-
Direct taxes
(4)
(3)
(18)
(17)
Total expenses
(1,514)
(1,346)
(32)
(29)
Net income
1,161
1,033
1,166
1,059
Financial Statements of Syngenta AG
80
Balance Sheet
(at December 31, 2024 and 2023)
Notes
2024
(USD million)
2024
(CHF million)
2023
(USD million)
2023
(CHF million)
Assets
Current assets:
Short-term loans to subsidiaries
2
4,198
3,828
1,577
1,342
Prepayments and accrued income
1
1
1
1
Total current assets
4,199
3,829
1,578
1,343
Non-current assets:
Investments in subsidiaries
3
3,907
3,563
5,383
4,583
Total non-current assets
3,907
3,563
5,383
4,583
Total assets
8,106
7,392
6,961
5,926
Liabilities and shareholder’s equity:
Short-term liabilities:
Short-term liabilities to subsidiaries
(3)
(2)
(5)
(4)
Accrued expenses and deferred income
(11)
(10)
(25)
(21)
Total short-term liabilities
(14)
(12)
(30)
(25)
Equity
Share capital
4
(9)
(9)
(9)
(9)
Legal capital reserves:
Reserves from capital contributions
4
(28)
(27)
(28)
(27)
Legal retained earnings:
Legal retained earnings in the narrower sense
4
(2)
(2)
(2)
(2)
Voluntary retained earnings:
Other reserves
4
(1,653)
(1,627)
(1,653)
(1,408)
Available earnings:
Profit brought forward
4
(5,239)
(5,148)
(4,073)
(3,467)
Net income
(1,161)
(1,033)
(1,166)
(1,059)
Cumulative translation difference
4
-
466
-
71
Total shareholder’s equity
(8,092)
(7,380)
(6,931)
(5,901)
Total liabilities and shareholder’s equity
(8,106)
(7,392)
(6,961)
(5,926)
Notes to the Financial Statements of Syngenta AG
81
1. Accounting policies
Ownership
Syngenta AG, domiciled in Basel, Switzerland, is a fully owned subsidiary of Syngenta Group (HK) Investment Company. The ultimate parent
company of Syngenta AG is Sinochem Holdings Corporation Ltd.
General aspects
These financial statements were prepared according to the provisions of the Swiss Law on Accounting and Financial Reporting (32nd title of
the Swiss Code of Obligations) (the “Law”). The significant accounting and valuation principles applied that are not prescribed by the Law are
described below.
The accounting functional currency is US Dollar (USD) because USD is the predominant currency for the majority of the company’s cash
flows, which includes dividend payments made to its parent.
All references to the “Syngenta AG group” relate to Syngenta AG and its direct and indirect subsidiaries.
Exchange rate differences
Exchange rate differences recorded in the financial statements in USD:
Monetary assets and liabilities denominated in foreign currencies are translated into the reporting currency at the rate prevailing at the balance
sheet date. Realized exchange gains and losses arising from business transactions denominated in foreign currencies are recorded in the
income statement. Net unrealized exchange losses are recorded in the income statement; net unrealized gains, however, are deferred within
accrued liabilities, unless they arise on payables and receivables or short-term accruals, where exchange differences are treated as realized
valuation differences.
Exchange rate difference arising on translation of the financial statements from USD to CHF:
As of December 31, 2023, share capital, legal capital reserves, and legal retained earnings were translated at historical rates, and voluntary
retained earnings and profit brought forward were translated at the closing rate. As of December 31, 2024, share capital, legal capital
reserves, legal retained earnings, voluntary retained earnings and profit brought forward are translated at historical rates. This change has
been implemented to align the financial statements to the financial reporting practice in Switzerland. The use of historical foreign exchange
rates instead of the closing rates results in a translation difference, which is reflected as cumulative translation difference in the shareholder’s
equity.
The 2024 income statement is translated using the average rate of exchange of the 2024 reporting period while the 2023 income statement is
translated using the average rate of exchange of the 2023 reporting period. The variation in average foreign exchange rates as compared to
the closing rate of the current year results in a translation difference, which is also reflected as cumulative translation difference in
shareholder’s equity. The following exchange rates (USD/CHF) have been applied for the translation of the financial statements:
2024
2023
Closing rates as per 31.12.
0.91
0.85
Average rates for the year
0.89
0.91
Investments in subsidiaries
Investments are recorded at acquisition cost less any impairment loss.
Foregoing a cash flow statement and additional disclosures in the notes
In accordance with the Law, Syngenta AG has decided to forego presenting additional information on interest-bearing liabilities and audit fees
in the notes, as well as a cash flow statement, because it has prepared its consolidated financial statements in accordance with a recognized
accounting standard (International Financial Reporting Standards as issued by the International Accounting Standards Board).
2. Information on income statement and balance sheet items
Dividend income
Dividend income in the current year consists entirely of dividends received from subsidiaries for the previous business year.
Other financial income
Other financial income consists mainly of guarantee and other fees received from subsidiaries.
Impairment Losses of Investments
Impairment losses of investments fully consist of an impairment on Syngenta Crop Protection AG.
Notes to the Financial Statements of Syngenta AG
82
Short-term interest-bearing loans to/from subsidiaries
Syngenta AG receives loans from Syngenta AG group companies and provides loans to Syngenta AG group companies.
3. Investments in subsidiaries & associates
The following are the significant legal entities in the Syngenta AG group of companies. The disclosure criteria are as follows:
−
Companies directly owned by Syngenta AG
−
Companies indirectly owned by Syngenta AG with sales in excess of USD 100 million or equivalent or total assets in excess of one
percent of total Syngenta AG group assets, if the threshold is met by two consecutive years.
−
Companies with a financing function
None of the legal entities are listed.
Country
Domicile
Capital and voting rights owned by Syngenta1
Argentina
Syngenta Agro S.A.
Buenos Aires
100%
Australia
Syngenta Australia Pty Limited
North Ryde
100%
Bangladesh
Syngenta Bangladesh Limited
Dhaka
60%
Bermuda
Syngenta Reinsurance Limited2
Hamilton
100%
Brazil
Syngenta Proteção de Cultivos Ltda.
São Paulo
100%
Syngenta Seeds Ltda.
São Paulo
100%
Syngenta Comercial Agricola Ltda.
São Paulo
100%
Dipagro Ltda.
Lucas de Rio Verde
100%
Agro Jangada Ltda.
Mato Grosso do Sul
100%
Canada
Syngenta Canada Inc.
Guelph
100%
France
Syngenta France S.A.
Saint-Sauveur
100%
Germany
Syngenta Agro GmbH
Frankfurt am Main
100%
Hungary
Syngenta Hungary Kft.
Budapest
100%
India
Syngenta India Private Limited
Pune
100%
Indonesia
PT Syngenta Indonesia
Jakarta
100%
Italy
Syngenta Italia S.p.A.
Milano
100%
Japan
Syngenta Japan K.K.
Tokyo
100%
Mexico
Syngenta Agro, S.A. de C.V.
México City
100%
Netherlands
Syngenta Seeds B.V.
Enkhuizen
100%
Syngenta Finance N.V.
Enkhuizen
100%
Syngenta Treasury N.V.
Enkhuizen
100%
Notes to the Financial Statements of Syngenta AG
83
Country
Domicile
Capital and voting rights owned by Syngenta1
Pakistan
Syngenta Pakistan Ltd.
Karachi
100%
Panama
Syngenta Crop Protection S.A.
Panama City
100%
Philippines
Syngenta Philippines, Inc.
Manila
100%
Poland
Syngenta Polska Sp.z.o.o.
Warsaw
100%
Romania
Syngenta Agro S.r.l.
Bucharest
100%
Russian Federation
OOO Syngenta
Moscow
100%
South Africa
Syngenta South Africa (Pty) Ltd.
Centurion
100%
Spain
Syngenta España S.A.
Madrid
100%
Switzerland
Syngenta Crop Protection AG2
Basel
100%
Syngenta Crop Protection Monthey SA2
Monthey
100%
Syngenta Agro AG
Stein
100%
Syngenta Agroservices Asia AG2
Basel
100%
Syngenta Finance AG2
Basel
100%
Syngenta South Asia AG2
Basel
100%
CIMO Compagnie industrielle de Monthey SA
Monthey
50%
Turkey
Syngenta Tarim Sanayi ve Ticaret A.S.
Konak
100%
Ukraine
Syngenta Limited Liability Company
Kiev
100%
United Kingdom
Syngenta Limited
Bracknell
100%
Syngenta UK Limited
Fulbourn
100%
USA
Syngenta Crop Protection, LLC
Wilmington
100%
Syngenta Seeds, LLC
Wilmington
100%
Syngenta Wilmington Inc.
Wilmington
100%
Syngenta Corporation
Wilmington
100%
Vietnam
Syngenta Vietnam Ltd.
Bien Hoa City
100%
1 The following capital and voting rights changed compared to 2023:
Syngenta Reinsurance Limited: 100% of capital and voting rights acquired by Syngenta AG on 13 November 2024 from Syngenta Crop Protection AG.
Syngenta (China) Investment Company Limited: 100% of capital and voting rights transferred by Syngenta Ltd. to Syngenta Group Co. Ltd. (not in Syngenta AG group)
MAS Seeds S.A.: 50% of capital and voting rights sold by Syngenta AG on 23 December 2024
Syngenta Participations AG: Merged into Syngenta Crop Protection AG on 20 June 2024
Except than for the above mentioned, the capital and voting rights in 2024 have not changed compared to 2023. Syngenta Philippines, Inc. has been newly included in the list because it reported sales in excess of USD
100 million or total assets in excess of one percent of total Syngenta AG group assets in 2024.
2 Direct holding of Syngenta AG
Notes to the Financial Statements of Syngenta AG
84
4. Equity
Share capital and legal reserves
Voluntary retained & available earnings
(USD million)
Share
capital
From
capital
contribution
From
retained
earnings
Other
reserves
Profit
brought
forward
Net
income
Total
Balance at December 31, 2022
9
28
2
1,653
4,101
472
6,265
Appropriation of available earnings
-
-
-
-
472
(472)
-
Dividend payment
-
-
-
-
(500)
-
(500)
Net income of the period
-
-
-
-
-
1,166
1,166
Balance at December 31, 2023
9
28
2
1,653
4,073
1,166
6,931
Appropriation of available earnings
-
-
-
-
1,166
(1,166)
-
Dividend payment
-
-
-
-
-
-
-
Net income of the period
-
-
-
-
-
1,161
1,161
Balance at December 31, 2024
9
28
2
1,653
5,239
1,161
8,092
Share capital and legal reserves
Voluntary retained & available earnings
(CHF million)
Share
capital
From
capital
contribution
From
retained
earnings
Other
reserves
Profit
brought
forward
Net
income
Cumulative
translation
difference
Total
Balance at December 31, 2022
9
27
2
1,530
3,794
437
(2)
5,797
Appropriation of available earnings
-
-
-
-
437
(437)
-
-
Translation difference
-
-
-
(122)
(338)
-
(69)
(529)
Dividend payment
-
-
-
-
(426)
-
-
(426)
Net income of the period
-
-
-
-
-
1,059
-
1,059
Balance at December 31, 2023
9
27
2
1,408
3,467
1,059
(71)
5,901
Appropriation of available earnings
-
-
-
-
1,059
(1,059)
-
-
Translation difference
-
-
-
219
622
-
(395)
446
Dividend payment
-
-
-
-
-
-
-
-
Net income of the period
-
-
-
-
-
1,033
-
1,033
Balance at December 31, 2024
9
27
2
1,627
5,148
1,033
(466)
7,380
At December 31, 2023 and 2024, Syngenta AG had 92,578,149 registered shares with par value of CHF 0.10 per share.
5. Contingent liabilities, Litigation matters & Other
5.1 Contingent liabilities
Maximum
amount
December 31,
Amount in
effect at
December 31,
2024
(USD
millions)
2024
(CHF
millions)
2023
(USD millions)
2023
(CHF millions)
2024
(USD
millions)
2024
(CHF
millions)
2023
(USD millions)
2023
(CHF millions)
External borrowing activities:
Euro medium-term notes and
CHF bonds
1,911
1,728
2,462
2,062
1,911
1,728
2,462
2,062
US bonds1
1,185
1,072
1,185
993
1,185
1,072
1,185
993
Private placement notes
66
60
66
55
66
60
66
55
Commercial paper
2,500
2,261
2,500
2,094
-
-
-
-
Credit facilities and loans
5,675
5,132
6,164
5,163
2,263
2,047
2,081
1,743
Group treasury lending, borrowing,
hedging and investing activities
30,406
27,496
39,011
32,675
14,556
13,163
18,391
15,405
Group treasury external hedging
activities
16
15
94
79
16
15
94
79
Total
41,759
37,763
51,482
43,121
19,998
18,084
24,279
20,337
1 Issued under Rule 144/Regulation S under the U.S. Securities Act of 1933
External borrowing activities
Syngenta AG has fully and unconditionally guaranteed on a senior unsecured basis the due and punctual payment of the principal of and any
premium and interest on the debt instruments issued by Syngenta Finance N.V., which is an indirect wholly-owned finance subsidiary,
Notes to the Financial Statements of Syngenta AG
85
Syngenta Finance AG, which is a direct, wholly-owned finance subsidiary, and Syngenta Wilmington Inc., which is an indirect wholly-owned
finance subsidiary. The guarantees rank equally with all other unsecured and unsubordinated debt of the group. No other subsidiary of
Syngenta AG guarantees such debt securities. Due to guaranteed intercompany on-lending of external borrowings, transactions with the
same nature as external borrowings are listed more than once.
During the second quarter of 2024 Syngenta Finance N.V., a subsidiary of Syngenta AG, entered into a USD 1,000 million term loan with a
group of third-party financial institutions on the basis of a floating interest rate and a term of three years and during the fourth quarter of 2024
into a USD 550 million term loan with a third-party financial institution on the basis of a floating interest rate and a term of three years. The
loans are guaranteed by Syngenta AG.
During the fourth quarter of 2024 Syngenta Finance AG, a subsidiary of Syngenta AG, issued a CHF 120 million domestic bond in the Swiss
capital market on the basis of a fixed interest rate and a term of three years. The bond is guaranteed by Syngenta AG.
Group treasury - intercompany lending, borrowing, hedging and investing activities
Syngenta AG guarantees intercompany lending, borrowing and hedging activities as well as external investments for the Syngenta AG group
for a maximum amount of USD 30,406 million (CHF 27,496 million) as at December 31, 2024, out of which USD 14,556 million (CHF 13,163
million) are outstanding as at December 31, 2024.
External hedging activities – financial instruments
External hedging activities refer to financial instruments where Syngenta Crop Protection AG is the contractual party hedging exposures
arising in the Syngenta AG group with external counterparties.
These financial instruments are transacted under International Swap and Derivative Association (ISDA) contracts. In addition, for certain
financial instruments positions, Credit Support Annex (CSA) contracts are in place under which cash is exchanged as collateral.
Syngenta AG guarantees the financial instruments transactions entered into under these ISDA contracts. The contingent liabilities related to
these financial instruments are significantly limited by the credit risk mitigation measures applicable under the ISDA and the CSA contracts
and amount to USD 16 million (CHF 15 million) as at December 31, 2024.
5.2 Litigation matters
Litigation is subject to many uncertainties, and the outcome of individual matters cannot be predicted with certainty. Consequently, it is
reasonably possible that the final resolution of some of these matters could require Syngenta AG to make expenditures. Further, the range of
amounts involved, as well as the period of time over which many of these expenditures may be made, cannot be reasonably estimated.
VIPTERA™
Beginning on September 12, 2014, several thousand lawsuits were filed against Syngenta in state and federal courts in the United States by
plaintiffs seeking damages from Syngenta for commercializing its AGRISURE VIPTERA® (MIR162) and DURACADE™ corn seed in the
United States without having obtained import approval from China for those products. In September 2017 plaintiffs and Syngenta reached a
settlement to resolve all claims on behalf of all U.S. non-Viptera and Viptera producers as well as grain elevators and ethanol plants and the
settlement is now final.
The settlement of the producer cases did not cover claims of the exporter plaintiffs such as Cargill, ADM, Louis Dreyfus, Trans Coastal Supply
Company, Inc. (“Transcoastal”), The DeLong Company (“DeLong”), and Agribase International, Inc. ADM and Syngenta reached in
December 2017 a settlement of the Viptera litigation that ADM had brought against Syngenta in Louisiana Court. Louis Dreyfus and Syngenta
reached a settlement in May 2019. Agribase and Syngenta reached a settlement in February 2020. Transcoastal and Syngenta reached a
settlement in October 2020. In August 2023, Syngenta and Cargill executed a settlement agreement regarding the Viptera litigation which
Cargill had brought against Syngenta in Louisiana. As a result, Cargill’s claims against Syngenta regarding its AGRISURE VIPTERA® and
DURACADE™ corn seed have been dismissed. The United States District Court in Kansas remanded the DeLong lawsuit for trial to the
United States District Court for the Western District of Wisconsin. In April 2024, DeLong and Syngenta executed a settlement agreement.
Payment was made on May 21, 2024, and the lawsuit was dismissed. The agreement expressly stated that the settlement was not an
admission of liability and was strictly a business decision. The DeLong settlement concluded all remaining Viptera litigation in the U.S.
In December 2015, a claim was filed in Ontario, Canada by a proposed representative plaintiff on behalf of a putative class comprising all
farmers in Canada against Syngenta Canada Inc. and Syngenta AG seeking damages from Syngenta for commercializing its AGRISURE
VIPTERA® (MIR162) and DURACADE™ corn seed in the North American corn market without having obtained import approval from China
for those products. The causes of action referred to in the lawsuit include negligence and negligent misrepresentations. The allegations
include claims that Syngenta actively misled farmers about the importance of the Chinese market, the timing and substance of the application
for approval in China, its ability to channel VIPTERA™ corn into non-Chinese markets and its ability to contain the infiltration of VIPTERA™
corn to the North American corn supply. The proposed representative plaintiff is seeking on behalf of the putative class general and special
damages of 300 million Canadian dollars (USD 209 million at December 31, 2024, exchange rates), punitive and aggravated damages of 100
million Canadian dollars (USD 70 million at December 31, 2024, exchange rates), the costs of distributing all monies awarded to class
members, pre-judgment interest, and costs on a substantial indemnity basis. Syngenta’s motion to strike this action was argued in April 2018,
and on November 28, 2018, the judge dismissed the plaintiff’s action in its entirety. The plaintiff appealed this decision. The appeal was heard
in June 2019 and while the Court of Appeal denied plaintiff’s appeal of the lower court’s decision dismissing the claim as to the negligent
misrepresentation and Competition Act claims, it granted the appeal as to the premature commercialization claim which would allow the
lawsuit to continue as to that claim alone. Syngenta filed the documents necessary to seek leave to appeal the Court of Appeal’s decision to
the Supreme Court of Canada. On December 10, 2020, Syngenta’s application for leave to appeal to the Supreme Court of Canada was
denied. The parties proceeded to the certification stage of the proceeding. The motion for certification was heard on May 10-12, 2021. On
September 29, 2021, the Superior Court certified the lawsuit. The certification decision was procedural and made no determination on the
merits of the case. On January 15, 2024, the parties argued Syngenta’s motion for summary judgment. That motion was denied on October
28, 2024, and Syngenta has filed a motion for leave to appeal. We are awaiting the court’s decision.
Notes to the Financial Statements of Syngenta AG
86
On February 14, 2017, a similar action was filed in Quebec against Syngenta Canada Inc. and Syngenta AG. The Petitioners are seeking
essentially the same relief as in the Ontario action on behalf of all corn producers conducting business in Quebec who sold corn for
commercial purposes after November 18, 2013. They allege that Syngenta was negligent and engaged in illegal commercial practices,
contrary to the Competition Act and the Civil Code of Quebec, and that damages (amount unspecified) will continue to accrue until the corn
business between North America and China is re-established at the levels that existed before Syngenta’s negligence occurred. Punitive
damages, pre-judgment interest and costs are also claimed. Syngenta has entered an appearance in the action. No other steps have been
taken.
Syngenta is continuing to vigorously defend against the Canadian actions and strongly believes that they are without merit.
Canada beekeeper lawsuits
In September 2014, a claim was filed in Ontario, Canada by two proposed representative members on behalf of a putative class comprising
all beekeepers who have owned or continue to own and operate honey producing, pollinating, and/or queen bee rearing businesses in
Canada since January 1, 2006, against a number of Syngenta legal entities together with certain entities of a second manufacturer of
neonicotinoid insecticides. Plaintiffs allege negligence through the sale by that manufacturer and by Syngenta of products containing such
insecticides in the knowledge that they would be injurious to bees and by virtue of misrepresentations and concealment relating thereto.
Plaintiffs claim 400 million Canadian dollars (USD 278 million at December 31, 2024, exchange rates) general and 50 million Canadian dollars
(USD 35 million at December 31, 2024, exchange rates) punitive damages. The pleadings in the Ontario proceedings were subsequently
amended by plaintiffs’ counsel to add waiver of tort and unlawful conspiracy to the single cause of action, negligence, which was previously
pleaded. Both of the additional causes of action are ancillary to and largely dependent on the negligence claim. The class has not yet been
authorized.
In October 2014, a Motion for Authorization was filed by the same firm of plaintiffs’ counsel in Montréal, Quebec seeking permission to bring a
similar class proceeding in that province. The proposed representative plaintiff operates a family business specialized in the breeding of queen
bees. The Quebec litigation closely resembles the original Ontario lawsuit claiming negligence except that, rather than a nationwide class, it
alleges a class limited to Quebec. At this early stage damages are unspecified. The Motion for Authorization was argued in November 2017.
The Quebec class has been authorized on August 20, 2018, and notices have been sent to potential class members. Plaintiffs’ motion to add
Syngenta AG as a defendant has been granted.
Syngenta will defend these lawsuits, the claims in which are without foundation.
Paraquat Parkinson’s disease litigation
Since September 2017, approximately 9100 lawsuits (as of February 21, 2025), including more than 1,600 lawsuits that have been voluntarily
dismissed or otherwise resolved, have been filed against Syngenta in state and federal courts in the United States by plaintiffs seeking
damages from Syngenta arising from their use of or exposure to Syngenta’s paraquat products. Plaintiffs allege that their use or exposure to
Syngenta’s paraquat products has caused them to develop Parkinson’s disease and/or kidney disease. The cases name Syngenta AG,
Syngenta Crop Protection, LLC, and Syngenta Seeds, and variously name alleged distributors of paraquat as additional defendants.
While the counts raised in each complaint differ slightly by plaintiff and jurisdiction, they tend to include: (1) Strict Liability - Design Defect; (2)
Strict Liability - Failure to Warn; (3) Negligence; (4) Public Nuisance; (5) Violation of Consumer Fraud & Deceptive Business Practices Acts;
(6) Breach of Implied Warranty of Merchantability; and (7) Punitive Damages. Certain suits also include claims by the spouses of individuals
with Parkinson’s disease for Loss of Consortium. The pending state court cases are in California, Delaware, Illinois, Pennsylvania,
Washington, and West Virginia. The pending federal court cases were filed in various U.S. District Courts, though the majority of new cases
are being filed directly in the Southern District of Illinois as part of the pending Multi-District Litigation.
Multi-District Litigation (“MDL”) - On June 7, 2021, the Judicial Panel on Multidistrict Litigation determined that consolidation is appropriate
and that the pending actions would be transferred to the Southern District of Illinois for pretrial purposes. The first Case Management Order,
issued June 10, 2021, stayed all responsive pleading and related deadlines for the coordinated cases. The Court has also appointed a
Special Master to oversee discovery.
On February 14, 2022, the Court granted the defendants' motions to dismiss as to all public nuisance claims and certain state consumer
protection claims and denied the motions to dismiss as to the other causes of action without prejudice. On April 13, 2022, Syngenta submitted
answers in sixteen potential bellwether cases identified by the Court. On the same date, the Court selected six of those bellwether plaintiffs for
further case-specific discovery; that discovery has been completed. On August 17, 2022, the Court selected twenty additional plaintiffs and
ordered limited discovery and depositions in each of those cases to collect representative data and evaluate claims. On August 30, 2022, the
Court granted motions to remand for six cases that were originally filed in Delaware state court and removed to the MDL- additional remand
orders have been issued in other state court proceedings since that date. On July 28, 2023, the parties completed summary judgment and
Daubert briefing, and a hearing on those motions was held from August 21-24, 2023. At the conclusion of the hearing, the MDL court
canceled the trial scheduled to begin in October 2023. On January 22, 2024, the Court ordered additional limited discovery of 25 plaintiffs.
Since that order, the Court has ordered discovery of additional replacement plaintiffs in response to dismissals filed by some of the plaintiffs
selected in the January 22, 2024, and dismissals filed by replacement plaintiffs.
On April 17, 2024, the MDL court granted Defendants’ Motion to Exclude the expert testimony of the sole expert on the critical issue of general
causation that had been presented by the Plaintiffs in the four initial bellwether cases selected for trial. On the same date, the MDL court also
granted Defendants’ Joint Motion for Summary Judgment dismissing those four cases due to the Plaintiffs’ inability to establish a causal link
between occupational paraquat exposure and Parkinson’s disease without the proffered expert testimony. Plaintiffs have since filed a notice of
appeal of these dismissals to the 7th Circuit Court of Appeals; briefing was completed on October 16, 2024, and oral argument was held on
February 12, 2025 and a decision is expected in the coming months. Also on April 17, 2024, the MDL court ordered the parties to select 16
member cases from the global Plaintiff pool for limited fact discovery, following which the court will issue a Case Management Order
addressing discovery and trial dates. On August 6, 2024, the MDL court selected 10 additional bellwether plaintiffs for case-specific discovery
but no trial dates have been set.
New cases will continue to be transferred to the MDL as tag-along actions as they are filed, and certain new cases are being filed directly into
the MDL proceedings pursuant to the first Case Management Order.
Notes to the Financial Statements of Syngenta AG
87
Illinois State Court Claims -
Two additional cases are pending in Illinois state courts, and Syngenta has filed its answers as to both following denial of its motions to
dismiss. The cases are in Vermillion and St. Clair County, Illinois. Discovery is in progress in the St. Clair County suit and trial is scheduled to
begin on March 16, 2026. In February 2024, an amended complaint was filed in the Vermillion County case to replace the plaintiff with the
plaintiff’s estate after he passed away.
California Consolidated Proceeding - Beginning in April 2019, plaintiffs in California state court filed complaints against Syngenta AG and
Syngenta Crop Protection LLC and variously name Chevron USA, Inc., Growmark, Inc., and/or Wilbur-Ellis Company, LLC (or subsidiaries
and/or affiliates thereof) as additional defendants. The ten California cases filed in 2019 have been consolidated for pretrial purposes.
Defendants demurred to the complaints in the consolidated California cases on the grounds of federal preemption and primary jurisdiction.
Defendants’ demurrer was denied by order dated December 23, 2019, except as to Count IV (the California Consumer Legal Remedies Act
claim), which was dismissed, and on January 21, 2020, Syngenta filed its answers in the consolidated California cases. The settlement,
discussed in further detail below, covers and conditionally settles the ten California state court claims that were pending. Additional cases
were filed since the consolidation. On December 7, 2021, the Court entered an order coordinating the state court proceedings with the MDL.
On March 15, 2022, the Court selected four bellwether plaintiffs from among the potential selections proposed by each side. Since bellwether
selection, one plaintiff has passed away, and an additional bellwether plaintiff’s case was withdrawn after a medical exam concluded that they
did not have Parkinson’s disease. The parties completed summary judgment and Sargon briefing. On November 26, 2024, the Court granted
exclusion of the plaintiffs’ sole general causation expert under California law. The first state court trial was scheduled to begin on January 8,
2024, but that trial date has been adjourned. The case to be tried is still to be determined.
Additional State Court Claims - Additional complaints, which raise nearly identical claims as the previously filed cases, have been filed in
state courts- certain state court proceedings have been removed to federal court and transferred to the MDL. There are currently active suits
pending in state court in Delaware, Pennsylvania, Washington, and West Virginia. The Delaware cases remain in the pleading or early
discovery stage and coordination efforts and responsive pleadings have been filed or are otherwise in development. On November 23, 2021,
one of the pending Washington state court cases, Smith v. Syngenta AG, was dismissed with prejudice in response to Syngenta's motion to
dismiss, but the dismissal was reversed on appeal. Discovery has been completed and pre-trial briefing is in progress. A trial is scheduled to
begin on May 5, 2025.
On May 10, 2022, the court in Philadelphia County, Pennsylvania issued an order coordinating the pending Pennsylvania state court actions
for pre-trial proceedings. On June 6, 2022, the Court issued a case management order temporarily staying all responsive pleading deadlines
and dispositive motions until further order of the court. Discovery deadlines have also been stayed while additional conferences occur. On
November 9, 2023, the Court entered a Case Management Order which set out a schedule for bellwether selection, discovery, and motions
practice. Defendants’ preliminary objections to Plaintiffs’ proposed Long Form Complaint were denied with respect to Syngenta Crop
Protection LLC but granted with respect to Syngenta AG on jurisdictional grounds. Discovery is complete for the first tranche of 10 bellwether
cases, and the initial cases have been selected for trial. Four trials have been scheduled for 2025 and 2026, with the first trials set to begin
June 2, 2025, and the second on August 4, 2025.
Additional cases have been filed in the Delaware Superior Court including some cases with multiple plaintiffs. On May 31, 2024, the Delaware
court granted-in-part and denied-in-part Defendants’ motion to dismiss. Specifically, the Court granted the motion to dismiss certain implied
warranty claims and strict products liability claims based on the applicable statutes of limitation, statutes or repose, or preemption; certain
other implied warranty and strict products liability claims were dismissed based on a failure to state a claim or otherwise meet state-specific
pleading requirements, and punitive damages claims by certain plaintiffs were dismissed for failure to state a claim. The Court denied
Defendants’ motion as to joinder. No case schedule has been set, nor have the cases been formally consolidated.
Canadian Litigation. Lawsuits alleging that Syngenta’s paraquat products to have caused their Parkinson’s disease have been filed by
plaintiffs seeking class certification in Quebec, Ontario, and British Columbia. The Plaintiffs proceeded first in Quebec seeking to authorize a
national class. Syngenta opposed the motion, and maintained that if authorized, the class should be limited to Quebec. The authorization
motion was heard June 6, 2022, and a Quebec only class was authorized on July 27, 2022. In February 2023, the court granted the plaintiff’s
motion to discontinue the Ontario proceeding to pursue the action in British Columbia. On August 9, 2024, the British Columbia Supreme
Court issued a decision authorizing a Canadian class (excluding Quebec). Syngenta is appealing the decision, in part, related to claims
certified in battery and of certain evidentiary admissibility issues.
Federal Trade Commission and related litigation
On September 29, 2022, the Federal Trade Commission (“FTC”) and ten states filed a complaint in the United States District Court for the
District of North Carolina against Syngenta Crop Protection AG, Syngenta Corporation, Syngenta Crop Protection, LLC., and Corteva, Inc.
alleging violations of federal and state antitrust laws. The allegations cover what the complaint asserts are “many years,” and involve the
distributor loyalty programs of Syngenta Crop Protection, LLC. and Corteva, Inc. and claim that the programs are used to exclude generic
competition. The complaint sought to enjoin the defendants from engaging in the alleged unlawful conduct, now and in the future, regarding all
crop protection products and active ingredients. The complaint further sought unspecified monetary and other equitable relief, as well as civil
penalties on behalf of the state plaintiffs under their respective state laws, and costs including attorneys’ fees. Additional complaints were
subsequently filed in the federal courts in Indiana, North Carolina, and Mississippi by individuals against the Syngenta entities, Corteva, Inc.
and other unrelated parties alleging violations of federal and state antitrust laws as well as other statutes and common law (“the Individual
Lawsuits”). The allegations involved the loyalty programs which were the subject of the FTC complaint. The Individual Lawsuits seek class
certification and compensatory and treble damages (as yet unspecified) as well as injunctive relief, costs, attorneys’ fees and post and pre-
judgment interest.
On December 12, 2022, Syngenta filed a motion to dismiss the FTC complaint. Following the filing, the FTC amended its complaint in an effort
to address the deficiencies pointed out in Syngenta’s motion. The amended complaint also added two additional states as plaintiffs, bringing
the total number of state plaintiffs to twelve. Syngenta has filed a revised motion to dismiss directed at the amended complaint. On December
30, 2022, the state of Arkansas filed a separate lawsuit in federal court in Arkansas modeled on the FTC complaint.
Plaintiffs in some of the Individual Lawsuits moved the United States Judicial Panel on Multi-District Litigation (the “JPML”) to transfer and
consolidate the Individual Lawsuits in the Southern District of Indiana (the “MDL Motion”). Syngenta and other defendants filed a response to
the MDL Motion requesting that the JPML instead transfer all Individual Lawsuits to the Middle District of North Carolina. The JPML held a
Notes to the Financial Statements of Syngenta AG
88
hearing on the MDL Motion on January 26, 2023. On February 6, 2023, the JPML issued an order centralizing the Individual Lawsuits in the
Middle District of North Carolina. The individual plaintiffs and Syngenta agreed that briefing on Syngenta's motion to dismiss the private
plaintiffs' lawsuits would wait until after a decision on the motion to dismiss the FTC lawsuit. Syngenta filed a motion to transfer the Arkansas
lawsuit to the MDL. On January 17, 2024, that motion was denied.
Syngenta’s motion to dismiss the FTC complaint was argued on December 2, 2023. The motion was denied on January 12, 2024.
Syngenta filed its motions to dismiss the individual plaintiffs’ lawsuits on March 11, 2024, and the Arkansas litigation on April 27, 2024. On
January 29, 2025, the United States District Court for the District of North Carolina issued its decision regarding the individual plaintiffs’
lawsuits. The court granted the motion in part and denied it in part, striking the federal damage claims and some of the state law claims. The
federal claims for injunctive relief and several state law claims remain. We are awaiting a decision on the motion to dismiss the Arkansas
lawsuit. Discovery on these lawsuits, including that brought by the FTC, are underway. Depositions will take place in 2025.
Syngenta believes that the allegations of these complaints are totally without merit and will continue to defend the lawsuits.
5.3 Other
In a Deed of Guarantee dated December 6, 2017, Syngenta AG guaranteed to Syngenta Pensions Trustee Limited (the “Fund”), that if
Syngenta Limited, or other Syngenta affiliates (“Employers”), which participate in the Fund, do not pay punctually amounts they owe to the
Fund, then Syngenta AG will pay that amount instead of the Employers.
In a Deed of Guarantee dated January 1, 2019, Syngenta AG guaranteed to the City of Basel, Basel, the rental payments and other monetary
payment obligations for leased property in Basel, to be paid by Syngenta Crop Protection AG.
In a Deed of Guarantee dated December 1, 2019, Syngenta AG guaranteed to IGIMO AG, Zurich, the rental payments and other monetary
payment obligations for leased property in Stein, to be paid by Syngenta Crop Protection AG.
In a Deed of Guarantee dated March 1, 2021, Syngenta AG guaranteed to SLB ZAAD S.A.R.L, Luxembourg, the rental payments and other
monetary payment obligations for leased property in Enkhuizen, to be paid by Syngenta Seeds B.V.
In a Deed of Guarantee dated November 1, 2022, Syngenta AG guaranteed to SYNG Portfolio Owner LLC, Chicago, the rental payments
and other monetary payment obligations for leased property in Slater, IA to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated November 1, 2022, Syngenta AG guaranteed to SYNG Portfolio Owner LLC, Chicago, the rental payments
and other monetary payment obligations for leased property in Stanton, MN to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated November 1, 2022, Syngenta AG guaranteed to SYNG Portfolio Owner LLC, Chicago, the rental payments
and other monetary payment obligations for leased property in Durham, NC to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated November 1, 2023, Syngenta AG guaranteed to SYOMNE001 LLC, Delaware, the rental payments and other
monetary payment obligations for leased property in Omaha, NE to be paid by Syngenta Crop Protection LLC.
In a Deed of Guarantee dated November 1, 2023, Syngenta AG guaranteed to SYNAID001 LLC, Delaware, the rental payments and other
monetary payment obligations for leased property in Nampa, ID to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated November 1, 2023, Syngenta AG guaranteed to SYMAIL001 LLC, Delaware, the rental payments and other
monetary payment obligations for leased property in Malta, IL to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated November 1, 2023, Syngenta AG guaranteed to SYWOCA001 LLC, Delaware, the rental payments and other
monetary payment obligations for leased property in Woodland, CA to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated July 1, 2024, Syngenta AG guaranteed to Bankers Commercial Corporation, California, the rental payments
and other monetary payment obligations for leased property in Jealott’s Hill research station to be paid by Syngenta Limited.
In a Deed of Guarantee dated October 1, 2024, Syngenta AG guaranteed to FNLR Need for Seed LLC, New York, the rental payments and
other monetary payment obligations for leased property in Lone Tree, IA to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated October 1, 2024, Syngenta AG guaranteed to FNLR Need for Seed LLC, New York, the rental payments and
other monetary payment obligations for leased property in Vero Beach, FL to be paid by Syngenta Seeds LLC.
In a Deed of Guarantee dated October 1, 2024, Syngenta AG guaranteed to FNLR Need for Seed LLC, New York, the rental payments and
other monetary payment obligations for leased property in Waterloo, NE to be paid by Syngenta Seeds LLC.
Syngenta AG is part of a group of Swiss entities of Syngenta which are jointly and severally liable for the whole Swiss VAT amount due to the
Swiss Tax authorities by this group.
6. Full-time equivalents
Syngenta AG does not have any employees.
7. Subsequent events
No events occurred between the balance sheet date and the date on which these financial statements were approved by the Board of
Directors that would require adjustments to or disclosure in the financial statements.
89
Appropriation of Available Earnings of Syngenta AG
2024
(USD millions)
2024
(CHF millions)
Available earnings:
Balance brought forward from previous year
5,239
5,148
Net profit of the year
1,161
1,033
Cumulative translation difference
-
(466)
Total available earnings
6,400
5,715
The Board of Directors proposes the following appropriation of available earnings to the Annual General Meeting:
Results carried forward
6,400
6,181
Cumulative translation difference
-
(466)
6,400
5,715
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Report of the Statutory Auditor to the General Meeting of
Syngenta AG, Basel
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Syngenta AG (the Company), which comprise the balance sheet as
at 31 December 2024, and the income statement for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying financial statements comply with Swiss law and the Company’s articles of
incorporation.
Basis for Opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our
responsibilities under those provisions and standards are further described in the “Auditor's Responsibilities for
the Audit of the Financial Statements” section of our report. We are independent of the Company in accordance
with the provisions of Swiss law, together with the requirements of the Swiss audit profession, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Other Information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Syngenta AG, Basel
Report of the Statutory Auditor
to the General Meeting on the
Financial Statements
Board of Directors’ Responsibilities for the Financial Statements
The Board of Directors is responsible for the preparation of the financial statements in accordance with the
provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made.
−
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
Syngenta AG, Basel
Report of the Statutory Auditor
to the General Meeting on the
Financial Statements
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
Report on Other Legal and Regulatory Requirements
In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists,
which has been designed for the preparation of financial statements according to the instructions of the Board of
Directors.
Based on our audit in accordance with Art. 728a para. 1 item 2 CO, we confirm that the proposal of the Board of
Directors complies with Swiss law and the Company's articles of incorporation. We recommend that the financial
statements submitted to you be approved.
KPMG AG
Marc Stadelmann
Licensed Audit Expert
Auditor in Charge
Artem Chumakov
Basel, 6 March 2025
Syngenta Group
Management Headquarters
Rosentalstrasse 67,
4058 Basel,
Switzerland
www.syngentagroup.com
Media Relations
media@syngentagroup.com
This publication is available on the
Internet: www.syngenta.com
© 2025 Syngenta. All rights reserved.
Editorial completion: March 2025
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