Business Development by Segment

Animal Health

Key Data – Animal Health

 

 

Q1 2017

 

Q1 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

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

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

440

 

414

 

−5.9

+3.0

Change in sales1

 

 

 

 

 

 

 

Volume

 

−0.3%

 

+2.5%

 

 

 

Price

 

+3.2%

 

+0.5%

 

 

 

Currency

 

+3.1%

 

−8.9%

 

 

 

Portfolio

 

+1.8%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

144

 

136

 

−5.6

−4.2

North America

 

177

 

160

 

−9.6

+4.5

Asia / Pacific

 

76

 

77

 

+1.3

+11.8

Latin America

 

43

 

41

 

−4.7

+7.0

EBITDA1

 

135

 

139

 

+3.0

 

Special items1

 

 

 

 

 

EBITDA before special items1

 

135

 

139

 

+3.0

 

EBITDA margin before special items1

 

30.7%

 

33.6%

 

 

 

EBIT1

 

126

 

129

 

+2.4

 

Special items1

 

 

 

 

 

EBIT before special items1

 

126

 

129

 

+2.4

 

Net cash provided by (used in) operating activities

 

(31)

 

13

 

.

 

First quarter of 2018

Sales

Sales of Animal Health in the first quarter of 2018 increased by 3.0% (Fx & portfolio adj.) to €414 million. Growth was negatively impacted by amended financial reporting standards (IFRS 15), among other factors. The Asia / Pacific region developed very positively. We also expanded business in Latin and North America on a currency-adjusted basis, while sales receded in Europe / Middle East / Africa.

Best-Selling Animal Health Products

 

 

Q1 2017

 

Q1 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Fx adj. = currency-adjusted

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Advantage™ product family

 

136

 

114

 

−16.2

−8.2

Seresto™

 

76

 

88

 

+15.8

+24.8

Drontal™ product family

 

35

 

31

 

−11.4

−4.4

Baytril™

 

27

 

25

 

−7.4

+2.9

Total

 

274

 

258

 

−5.8

+2.6

Proportion of Animal Health sales

 

62%

 

62%

 

 

 

Sales by product

  • Business with our Advantage™ line of flea, tick and worm control products decreased in the Europe / Middle East / Africa and North America regions due to seasonal shifts. Volumes in North America were also negatively impacted by increased competitive pressure and the related decline in demand. Growth in Asia / Pacific was not sufficient to offset this development.
  • Business with our Seresto™ flea and tick collar once again clearly expanded in all regions. This development was mainly driven by higher demand in the United States and by price and volume increases in the Europe / Middle East / Africa region.
  • We registered lower volumes of our Drontal™ line of dewormers in the Europe / Middle East / Africa region. In addition, demand in North America was below that of the strong prior-year quarter.
  • There was a slight increase in sales of our Baytril™ antibiotic. Here we benefited from positive business development in the North America, Asia / Pacific and Latin America regions.

Earnings

EBITDA before special items of Animal Health increased by 3.0% to €139 million in the first quarter of 2018 (Q1 2017: €135 million). Adjusted for negative currency effects in the amount of €10 million, earnings were up by 10.4%. Positive contributions came from lower selling expenses, while the aforementioned effect of the first-time application of IFRS 15 had a negative impact on earnings.

EBIT improved by 2.4% to €129 million. As in the prior-year quarter, it included no special items.

Compare to Last Year