Business Development
CropScience

Key Data – CropScience

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2014

3rd Quarter 2015

Change

 

First Nine Months 2014

First Nine Months 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see “Calculation of EBIT(DA) Before Special Items.”

2

For definition see “Financial Position of the Bayer Group.”

Sales

 

1,929

2,113

+9.5

+1.6

 

7,299

7,928

+8.6

+0.6

Change in sales

 

 

 

 

 

 

 

 

 

 

Volume

 

+11.3%

+4.2%

 

 

 

+9.6%

0.0%

 

 

Price

 

+3.3%

−2.6%

 

 

 

+2.5%

+0.6%

 

 

Currency

 

−2.1%

+7.3%

 

 

 

−5.9%

+7.4%

 

 

Portfolio

 

+0.2%

+0.6%

 

 

 

+0.1%

+0.6%

 

 

Sales

 

 

 

 

 

 

 

 

 

 

Crop Protection / Seeds

 

1,781

1,957

+9.9

+2.3

 

6,788

7,318

+7.8

+0.5

Environmental Science

 

148

156

+5.4

−7.4

 

511

610

+19.4

+1.8

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

%

Fx adj. %

 

€ million

€ million

%

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe

 

454

465

+2.4

+3.1

 

2,580

2,737

+6.1

+9.0

North America

 

303

367

+21.1

+4.3

 

2,005

2,225

+11.0

−5.8

Asia / Pacific

 

318

363

+14.2

+7.2

 

1,018

1,166

+14.5

+2.7

Latin America / Africa / Middle East

 

854

918

+7.5

−1.2

 

1,696

1,800

+6.1

−3.7

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

157

180

+14.6

 

 

1,615

1,625

+0.6

 

Special items

 

(4)

 

 

 

(79)

 

 

EBIT before special items1

 

157

184

+17.2

 

 

1,615

1,704

+5.5

 

EBITDA1

 

278

306

+10.1

 

 

1,991

2,009

+0.9

 

Special items

 

(3)

 

 

 

(73)

 

 

EBITDA before special items1

 

278

309

+11.2

 

 

1,991

2,082

+4.6

 

EBITDA margin before special items1

 

14.4%

14.6%

 

 

 

27.3%

26.3%

 

 

Gross cash flow2

 

214

206

−3.7

 

 

1,453

1,448

−0.3

 

Net cash flow2

 

598

677

+13.2

 

 

847

596

−29.6

 

Sales of the CropScience subgroup in the third quarter of 2015, at €2,113 million, were slightly above the strong prior-year period (Fx & portfolio adj.: +1.6%; reported: +9.5%). Crop Protection / Seeds posted a slight sales increase in a weaker market environment, particularly in Latin America. By contrast, we registered declining sales at Environmental Science.

CropScience Quarterly Sales

CropScience Quarterly Sales (bar chart)CropScience Quarterly Sales (bar chart)

Sales of Crop Protection / Seeds rose by 2.3% (Fx & portfolio adj.) to €1,957 million in the third quarter of 2015. Our Herbicides business, which expanded by a double-digit percentage, and the Fungicides business registered a positive trend. By contrast, business was down at SeedGrowth, Insecticides and Seeds.

Sales of Environmental Science receded by 7.4% (Fx & portfolio adj.) to €156 million. The business with both products for professional users and consumer products posted declines.

Sales by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2014

3rd Quarter 2015

Change

 

First Nine Months 2014

First Nine Months 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted

Herbicides

 

384

487

+26.8

+21.0

 

2,032

2,180

+7.3

+1.8

Fungicides

 

479

577

+20.5

+9.4

 

1,922

2,234

+16.2

+8.9

Insecticides

 

471

471

0.0

−9.3

 

1,213

1,166

−3.9

−12.9

SeedGrowth

 

316

298

−5.7

−10.5

 

724

682

−5.8

−11.7

Crop Protection

 

1,650

1,833

+11.1

+2.9

 

5,891

6,262

+6.3

−0.5

Seeds

 

131

124

−5.3

−5.3

 

897

1,056

+17.7

+7.0

Crop Protection / Seeds

 

1,781

1,957

+9.9

+2.3

 

6,788

7,318

+7.8

+0.5

Environmental Science

 

148

156

+5.4

−7.4

 

511

610

+19.4

+1.8

The sales development of CropScience varied by region:

Sales in Europe came in at €465 million, up 3.1% on a currency-adjusted basis. Sales at Herbicides, particularly with products for use in cereals, grew by a double-digit percentage. Business with insecticides and vegetable seeds also expanded. Sales at Fungicides declined substantially against the strong prior-year quarter as a result of lower disease pressure due to weather conditions.

Sales in North America climbed by 4.3% (Fx adj.) to €367 million in the third quarter of 2015. We achieved very gratifying growth in the Herbicides, Fungicides, Insecticides and Seeds businesses. By contrast, business was down substantially at SeedGrowth, due particularly to high inventories of treated seed in the market. At Environmental Science, business with products for professional users developed positively. Canada played a key role in the positive development overall, as business expanded in all areas in that country.

Sales in the Asia / Pacific region climbed by a substantial 7.2% (Fx adj.) to €363 million. The Herbicides and SeedGrowth businesses were especially successful in a slightly improved market environment, posting double-digit growth rates. Business also expanded significantly at Insecticides and Fungicides, as well as with vegetable seeds. On the other hand, we registered declining sales for rice seed and at Environmental Science.

Sales in the Latin America / Africa / Middle East region edged back by 1.2% to €918 million. Crop Protection / Seeds registered a decline mainly at Insecticides, and particularly in Brazil, where sales were weakened by considerably lower pest pressure. Significantly higher sales at Herbicides and Fungicides and for vegetable seeds did not fully offset this effect. Sales at Environmental Science declined substantially against the prior-year quarter.

CropScience
Quarterly EBIT

CropScience Quarterly EBIT (bar chart)CropScience Quarterly EBIT (bar chart)
CropScience
Quarterly EBITDA Before Special Items

CropScience Quarterly EBITDA Before Special Items (bar chart)CropScience Quarterly EBITDA Before Special Items (bar chart)

EBIT of CropScience rose by 14.6% in the third quarter of 2015 to €180 million. This figure reflected special charges of €4 million (Q3 2014: €0 million) resulting from the consolidation of production sites. EBIT before special items climbed by 17.2% to €184 million. EBITDA before special items came in 11.2% above the prior-year quarter at €309 million (Q3 2014: €278 million). This increase was largely driven by a positive currency effect of about €30 million.

Sales of CropScience in the first nine months of 2015 were level year on year at €7,928 million (Fx & portfolio adj. +0.6%), despite the weaker market environment. At Crop Protection / Seeds, the positive overall development at Fungicides and Seeds offset lower sales at Insecticides and SeedGrowth. Environmental Science posted modest growth. In regional terms, we were particularly successful in the first nine months of 2015 in Europe, as well as in Asia / Pacific. By contrast, sales were down in North America and in Latin America / Africa / Middle East.

EBIT of CropScience for the first nine months of 2015 came in level with the prior-year period at €1,625 million (+0.6%). Earnings were diminished by special charges of €79 million (9M 2014: €0 million) that resulted mainly from the consolidation of production sites. EBIT before special items climbed by 5.5% to €1,704 million. EBITDA before special items came in 4.6% above the prior-year period at €2,082 million. This was largely the result of higher selling prices and a positive currency effect of around €60 million.