Bayer: strong operational start to the year
- Group sales increase to €13.0 billion (Fx & portfolio adj. + 4.1%)
- EBITDA before special items advanced to €4.2 billion (+ 44.6%)
- Crop Science posts substantial sales and earnings gains following the acquisition
- Pharmaceuticals show encouraging sales and earnings growth
- Consumer Health below the prior-year quarter; full-year outlook confirmed
- Net income of €1.2 billion (– 36.5%) held back as expected by special items related to the acquisition and restructuring
- Core earnings per share €2.55 (+ 13.8%)
- Business outlook for 2019 confirmed
Crop Science: First quarter of 2019
- Sales in the first quarter of 2019 on a pro-forma basis were level with the prior-year period (– 0.2%) after adjusting for currency effects.
- The increase at Herbicides resulted mainly from substantial growth in the Latin America region due to higher selling prices and volumes for Roundup™ and shifts in demand from the previous quarter in Brazil, as well as to weather-related growth in Europe / Middle East / Africa. In North America, however, sales declined due to increased competitive pressure from generic products and weather-related shifts.
- Business at Corn Seed & Traits matched the level of the prior-year quarter. Sales were lower in Latin America due to weather-related demand shifts into the previous quarter. The business was also down slightly in North America, where negative factors including an unfavorable product mix as well as flooding and cold weather in the Midwest of the United States impacted the start of the season. This was only partially offset by an anticipated increase in acreages. We achieved significant growth in the Europe / Middle East / Africa region on account of an anticipated expansion of acreages.
- The decline in sales at Soybean Seed & Traits was the result of shifts into prior quarters in Latin America.
- In North America, demand shifts from 2018 were more than offset by an anticipated reduction in acreages and increased competitive pressure.
Bayer
- Business at Fungicides was adversely impacted by a late start to the season in Ukraine, Southeast Asia, and India, among other factors.
- Sales of Insecticides rose thanks to favorable business development in the Europe / Middle East / Africa region and demand shifts from the previous quarter in Latin America.
- The growth for Other came mainly from Cotton Seed & Traits in the United States and Brazil, largely due to higher volumes as a result of an anticipated increase in market share.