Business Development by Segment

Consumer Health

Key Data – Consumer 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

 

1,601

 

1,409

 

−12.0

−2.2

Changes in sales1

 

 

 

 

 

 

 

Volume

 

+0.3%

 

−3.3%

 

 

 

Price

 

+2.3%

 

+1.1%

 

 

 

Currency

 

+2.7%

 

−9.8%

 

 

 

Portfolio

 

0.0%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

538

 

496

 

−7.8

−3.5

North America

 

701

 

596

 

−15.0

−2.1

Asia / Pacific

 

220

 

177

 

−19.5

−12.3

Latin America

 

142

 

140

 

−1.4

+16.9

EBITDA1

 

384

 

308

 

−19.8

 

Special items1

 

(8)

 

(5)

 

 

 

EBITDA before special items1

 

392

 

313

 

−20.2

 

EBITDA margin before special items1

 

24.5%

 

22.2%

 

 

 

EBIT1

 

278

 

211

 

−24.1

 

Special items1

 

(9)

 

(5)

 

 

 

EBIT before special items1

 

287

 

216

 

−24.7

 

Net cash provided by operating activities

 

265

 

173

 

−34.7

 

First quarter of 2018

Sales

Sales of Consumer Health declined by 2.2% (Fx & portfolio adj.) in the first quarter of 2018 to €1,409 million. This development was driven by the sharp decline in Asia / Pacific that resulted mainly from the reclassification of two of our medicated skin care brands from OTC to prescription by the Chinese authorities in the fall of 2017. Sales also developed negatively in North America and in Europe / Middle East / Africa. In Latin America, by contrast, we posted encouraging sales gains on a currency-adjusted basis.

Best-Selling Consumer 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.”

2

Trademark rights and distribution only in certain countries outside the European Union

Claritin™

 

190

 

167

 

−12.1

−0.2

Aspirin™

 

117

 

109

 

−6.8

+3.1

Bepanthen™ / Bepanthol™

 

95

 

100

 

+5.3

+10.7

Coppertone™

 

102

 

86

 

−15.7

−3.4

Aleve™

 

82

 

72

 

−12.2

+1.1

Canesten™

 

70

 

52

 

−25.7

−21.2

Alka-Seltzer™ product family

 

70

 

52

 

−25.7

−14.5

Elevit™

 

52

 

50

 

−3.8

+6.1

Dr Scholl’s™2

 

41

 

49

 

19.5

+34.8

One A Day™

 

55

 

46

 

−16.4

−3.0

Total

 

874

 

783

 

−10.4

+0.2

Proportion of Consumer Health sales

 

55%

 

56%

 

 

 

Sales by product

  • Sales of our antihistamine Claritin™ came in at the prior-year level after adjusting for currency effects. Growth in China offset declines in Japan that arose from intense competitive pressure, as well as negative effects resulting from a slow start to the allergy season in the United States.
  • Sales of our analgesic Aspirin™ increased, thanks mainly to gains in Latin America. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales amounted to €257 million (Q1 2017: €274 million), representing currency-adjusted growth of 2.0%.
  • Business with our Bepanthen™ / Bepanthol™ wound and skin care products developed positively, especially in Brazil and Europe.
  • Sales of our sunscreen product Coppertone™ declined due to a weaker season, particularly in the United States.
  • We registered slightly higher sales of our analgesic Aleve™ compared with a weak prior-year quarter, primarily in Brazil and the United States.
  • Business with our Canesten™ skin and intimate health products receded considerably, due chiefly to anticipated temporary supply disruptions.
  • We registered a noticeable decline in sales of our Alka-Seltzer™ product family to treat gastric complaints and cold symptoms, due in part to intense competitive pressure.
  • Sales of our prenatal vitamin Elevit™ continued to expand thanks mainly to good demand in Europe.
  • Our Dr. Scholl’s™ foot care products posted strong sales gains that were attributable particularly to the inventory reduction undertaken in the prior-year quarter in preparation for the repositioning of the brand.
  • Business with our One A Day™ vitamin product in the United States declined against the prior-year quarter, in which we had benefited from a product line extension.

Earnings

EBITDA before special items of Consumer Health declined by a substantial 20.2% to €313 million in the first quarter of 2018 (Q1 2017: €392 million). Adjusted for negative currency effects in the amount of €34 million, earnings were down by 11.5%. This decline was driven by lower volumes that chiefly resulted from anticipated temporary supply disruptions and the reclassification of two of our brands in China. In the prior-year quarter, earnings had included one-time gains of €34 million. Positive earnings contributions in the first quarter of 2018 predominantly came from a lower cost of goods sold.

EBIT declined by 24.1% to €211 million, after net special charges of €5 million (Q1 2017: €9 million) resulting from efficiency improvement measures.

Special Items1 Consumer Health

 

 

EBIT
Q1 2017

EBIT
Q1 2018

 

EBITDA Q1 2017

EBITDA Q1 2018

 

 

€ million

€ million

 

€ million

€ million

1

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

Restructuring

 

(9)

(5)

 

(8)

(5)

Total special items

 

(9)

(5)

 

(8)

(5)

Compare to Last Year