October 10, 2009

Monsanto net sales up in 2009

Monsanto announced record net sales of US$11.7 billion in fiscal year 2009, driven by higher worldwide seeds and traits revenue, rising penetration in the Indian market and increased acres in Australia.

For the full year, company net sales and gross profit were up three percent and nine percent respectively.

Increased revenue from the company's vegetable seed portfolio also contributed to results in the year. Overall, seeds and traits profit made up more than 65 percent of total company gross profit, growing at a 17 percent rate over fiscal year 2008, and helped offset lower sales of Roundup and other glyphosate-based herbicides. These sales went down by 23 percent.

Net income reached US$2.1 billion, a slight increase over last year's net income of US$2 billion.

However, the company lost US$233 million in the fourth quarter of fiscal year 2009, a sharper loss than the US$172 million recorded in the fourth quarter of the previous year.

Net sales in the fourth quarter of 2009 totalled US$1.9 billion, a slight year-on-year decrease mainly due to declining sales for the Roundup and other glyphosate-based herbicides as a result of pricing competition and a global glyphosate supply and demand imbalance.

Monsanto has also announced to increase prices for seeds to a maximum of 10 percent.