Management Report

5.2 CropScience

Key Data – CropScience         [Table 9]
  1st Quarter 2014 1st Quarter 2015
Change
  € million € million % Fx & p adj. %
Sales 2,900 3,092 +6.6 +1.0
Change in sales        
Volume +10.2% -2.2%    
Price +1.6% +3.2%    
Currency -7.0% +5.1%    
Portfolio +0.1% +0.5%    
Sales        
Crop Protection/Seeds 2,734 2,889 +5.7 +0.8
Environmental Science 166 203 +22.3 +4.2
         
  € million € million % Fx adj. %
Sales by region        
Europe 1,239 1,378 +11.2 +16.9
North America 954 943 -1.2 -15.1
Asia/Pacific 329 360 +9.4 -4.3
Latin America/Africa/Middle East 378 411 +8.7 -3.2
         
EBIT 988 874 -11.5  
Special items 0 (47)    
EBIT before special items1 988 921 -6.8  
EBITDA1 1,098 998 -9.1  
Special items 0 (42)    
EBITDA before special items1 1,098 1,040 -5.3  
EBITDA margin before special items1 37.9% 33.6%    
Gross cash flow2 770 705 -8.4  
Net cash flow2 (722) (823) -14.0  
Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted
1 For definition see Chapter 6 “Calculation of EBIT(DA) Before Special Items.”
2 For definition see Chapter 8 “Financial Position of the Bayer Group.”

Sales of the CropScience subgroup increased by a currency- and portfolio-adjusted 1.0% (reported: +6.6%) in the first quarter of 2015 to €3,092 million. Crop Protection/Seeds improved slightly against the strong prior-year level despite a weakened market environment, particularly in North and South America. Environmental Science raised sales against the prior-year period.

CropScience Quarterly sales

Sales of Crop Protection/Seeds rose in the first quarter of 2015 by 0.8% (Fx & portfolio adj.) to €2,889 million. Our Fungicides business posted double-digit growth. Sales of our products for use in cereals developed particularly well. We achieved positive development in Seeds, particularly for oilseed rape/canola and soybeans. By contrast, sales were down at SeedGrowth, Insecticides and Herbicides compared with the strong prior-year quarter.

Sales of Environmental Science advanced by 4.2% (Fx & portfolio adj.) to €203 million. Both the consumer business and products for professional users developed positively.

Sales by Business Unit       [Table 10]
  1st Quarter
2014
1st Quarter
2015

Change
  € million € million % Fx & p adj. %
Herbicides 965 906 -6.1 -8.5
Fungicides 662 830 +25.4 +22.4
Insecticides 352 335 -4.8 -12.5
SeedGrowth 252 221 -12.3 -16.7
Crop Protection 2,231 2,292 +2.7 -0.9
Seeds 503 597 +18.7 +8.2
Crop Protection/Seeds 2,734 2,889 +5.7 +0.8
Environmental Science 166 203 +22.3 +4.2
Fx & p adj. = currency- and portfolio-adjusted

The sales development of CropScience varied by region:

Sales in Europe came in substantially ahead of the prior-year period (Fx adj. +16.9%), at €1,378 million. Herbicides and Fungicides registered strong, double-digit growth. Sales at Insecticides were down against a strong prior-year quarter. Seeds and Environmental Science posted significant gains.

Sales in North America came in at €943 million in the first quarter of 2015, down 15.1% on a currency-adjusted basis. Sharp declines in sales at Herbicides, particularly for products used in cotton or corn, and at SeedGrowth were only partially offset by the pleasing increase at Insecticides and the successful expansion of our Seeds business, particularly for oilseed rape/canola, cotton and soybean seed. Environmental Science developed favorably as a whole. There was an overall sales decline in the United States, while business in Canada was on a par with the prior-year period.

Sales in the Asia/Pacific region receded by 4.3% (Fx adj.) to €360 million. This development was largely attributable to a decline in business in the Herbicides and Insecticides units. Environmental Science also registered a decline in sales. By contrast, business at SeedGrowth and Seeds expanded.

Sales in the Latin America/Africa/Middle East region receded by 3.2% (Fx adj.) to €411 million. The lower sales at Crop Protection /Seeds largely resulted from a decline in the Insecticides unit, particularly in Brazil, where sales were weakened by lower pest pressure. Herbicides sales and those of cotton seed were also down. The substantial growth of the Fungicides business and higher sales of vegetable seed were not sufficient to offset this trend. We achieved a double-digit growth rate at Environmental Science.

CropScience Quarterly EBIT and EBITDA Before Special Items

ebit of CropScience receded by 11.5% in the first quarter of 2015, to €874 million. This figure reflected special charges of €47 million (q1 2014: €0 million) that resulted mainly from the consolidation of production sites. ebit before special items declined by 6.8% to €921 million. ebitda before special items came in 5.3% below the strong prior-year quarter at €1,040 million (q1 2014: €1,098 million). Contributing to this decrease was a negative currency effect of about €40 million. While higher selling prices had a positive effect, volumes were lower and selling expenses increased.

Last updated: April 30, 2015  Copyright © Bayer AG
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