Crop Science

Key Data – Crop Science

 

 

Q1 2016

 

Q1 2017

 

Change

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

2016 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

2,936

 

3,120

 

+6.3

3.2

Change in sales1

 

 

 

 

 

 

 

Volume

 

−0.5%

 

+3.4%

 

 

 

Price

 

+1.7%

 

−0.2%

 

 

 

Currency

 

−3.6%

 

+3.1%

 

 

 

Portfolio

 

+0.1%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

1,420

 

1,462

 

+3.0

+2.0

North America

 

909

 

1,042

 

+14.6

+8.9

Asia / Pacific

 

342

 

366

 

+7.0

+2.9

Latin America

 

265

 

250

 

−5.7

−9.8

EBITDA1

 

1,086

 

1,091

 

+0.5

 

Special items1

 

(3)

 

(24)

 

 

 

EBITDA before special items1

 

1,089

 

1,115

 

+2.4

 

EBITDA margin before special items1

 

37.1%

 

35.7%

 

 

 

EBIT1

 

955

 

970

 

+1.6

 

Special items1

 

(3)

 

(37)

 

 

 

EBIT before special items1

 

958

 

1,007

 

+5.1

 

Net cash provided by operating activities

 

(666)

 

(679)

 

−2.0

 

First quarter of 2017

Sales

In the first quarter of 2017, Crop Science posted sales of €3,120 million (Fx & portfolio adj. +3.2%). Growth at Crop Protection / Seeds was largely due to encouraging performance in North America. The sales growth recorded at Environmental Science was based on the delivery of products to the company that acquired our consumer business.

Sales by Business Unit

 

 

Q1 2016

 

Q1 2017

 

Change

 

 

€ million

 

€ million

 

Reported %

Fx & p adj.1 %

2016 figures restated

1

Fx & p adj. = currency- and portfolio-adjusted; for definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Crop Protection / Seeds

 

2,819

 

2,973

 

+5.5

+2.5

Crop Protection

 

2,182

 

2,251

 

+3.2

+0.9

Herbicides

 

845

 

912

 

+7.9

+5.3

Fungicides

 

827

 

787

 

−4.8

−6.2

Insecticides

 

284

 

301

 

+6.0

+3.9

SeedGrowth

 

226

 

251

 

+11.1

+7.1

Seeds

 

637

 

722

 

+13.3

+8.0

Environmental Science

 

117

 

147

 

+25.6

+20.5

Sales by region

  • Sales in Europe / Middle East / Africa climbed to €1,462 million (Fx adj. +2.0%). We recorded double-digit sales gains in both the Insecticides and Seeds businesses. Slight increases at Herbicides stood against declines at Fungicides and SeedGrowth.
  • Sales in North America advanced by 8.9% (Fx adj.) to €1,042 million. We registered especially positive performance for the SeedGrowth business, as a result of strong demand for application in soybeans and cereals, and for the Herbicides business in Canada. We also grew sales at Insecticides and Fungicides. At Seeds, gratifying gains for oilseed rape/canola and soybean seeds more than offset substantial declines for cotton seeds.
  • In the Asia / Pacific region, sales increased to €366 million (Fx adj. +2.9%). We achieved double-digit growth at Herbicides, where we benefited from product launches in Japan and China as well as favorable weather conditions in Australia, among other things. The SeedGrowth and Fungicides businesses also delivered positive performance. By contrast, weak demand in India led to substantial declines in sales at Insecticides.
  • Sales in Latin America decreased by 9.8% (Fx adj.) to €250 million. Our Fungicides business in Brazil saw a substantial decline, primarily due to inventories in the market remaining high. Double-digit sales increases at Herbicides, particularly in Argentina, and in the Seeds business were unable to offset this development.

Earnings

EBITDA before special items of Crop Science increased by 2.4% to €1,115 million in the first quarter of 2017 (Q1 2016: €1,089 million). Positive earnings effects resulted primarily from higher volumes. A higher cost of goods sold, increased research and development expenses as well as lower selling prices diminished earnings.

EBIT advanced by 1.6% to €970 million after special items of €37 million (Q1 2016: €3 million) in conjunction with the agreed acquisition of Monsanto and efficiency improvement programs.

Special Items1 Crop Science

 

 

EBIT
Q1 2016

EBIT
Q1 2017

 

EBITDA Q1 2016

EBITDA Q1 2017

 

 

€ million

€ million

 

€ million

€ million

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Restructuring

 

(16)

 

(3)

Litigations

 

(3)

 

(3)

Acquisition costs

 

(21)

 

(21)

Total special items

 

(3)

(37)

 

(3)

(24)