Business Development by Segment

Crop Science

Key Data – Crop Science

 

 

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

 

3,120

 

2,861

 

−8.3

−1.0

Change in sales1

 

 

 

 

 

 

 

Volume

 

+3.4%

 

−0.6%

 

 

 

Price

 

−0.2%

 

−0.4%

 

 

 

Currency

 

+3.1%

 

−7.3%

 

 

 

Portfolio

 

0.0%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

1,462

 

1,294

 

−11.5

−8.8

North America

 

1,042

 

969

 

−7.0

+4.5

Asia / Pacific

 

366

 

368

 

+0.5

+10.4

Latin America

 

250

 

230

 

−8.0

+4.8

EBITDA1

 

1,091

 

981

 

−10.1

 

Special items1

 

(24)

 

(61)

 

 

 

EBITDA before special items1

 

1,115

 

1,042

 

−6.5

 

EBITDA margin before special items1

 

35.7%

 

36.4%

 

 

 

EBIT1

 

970

 

892

 

−8.0

 

Special items1

 

(37)

 

(61)

 

 

 

EBIT before special items1

 

1,007

 

953

 

−5.4

 

Net cash used in operating activities

 

(679)

 

(703)

 

−3.5

 

First quarter of 2018

Sales

In the first quarter of 2018, Crop Science posted sales of €2,861 million (Fx & portfolio adj. −1.0%), which was level with the strong prior-year quarter. Sales declines in Europe / Middle East / Africa were nearly offset by gains in North America, Asia / Pacific and Latin America.

Sales by Business Unit

 

 

Q1 2017

 

Q1 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

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

1

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

Crop Science

 

3,120

 

2,861

 

−8.3

−1.0

Herbicides

 

912

 

800

 

−12.3

−6.6

Fungicides

 

787

 

728

 

−7.5

−2.0

Insecticides

 

301

 

299

 

−0.7

+8.0

SeedGrowth

 

251

 

210

 

−16.3

−8.4

Vegetable Seeds

 

162

 

144

 

−11.1

−6.2

Environmental Science

 

147

 

114

 

−22.4

−14.3

Other (Seeds & Traits)

 

560

 

566

 

+1.1

+12.9

Sales by region

  • Sales in the Europe / Middle East / Africa region fell by 8.8% (Fx adj.) to €1,294 million. We recorded lower sales at Fungicides, Herbicides and Vegetable Seeds, mainly due to the weather conditions in Europe. At Fungicides, business was also held back by a substantial market decline in France. Sales at SeedGrowth were also down year on year. In contrast, sales increased at Insecticides, but this growth was insufficient to offset the declines elsewhere.
  • Sales in North America advanced by 4.5% (Fx adj.) to €969 million. The canola seed business in Canada performed very well due to increased acreages. Higher demand in Canada resulted in sales gains at Herbicides. On the other hand, there was a significant decline at Environmental Science due to lower product deliveries to the purchaser of our consumer business and at Insecticides due to lower pest pressure in the United States.
  • In the Asia / Pacific region, sales increased by 10.4% (Fx adj.) to €368 million. The encouraging growth at Fungicides and Insecticides was attributable especially to advance sales in China and to high pest pressure in India. By contrast, sales were down at Herbicides.
  • In Latin America, sales advanced by 4.8% (Fx adj.) to €230 million. We posted double-digit percentage growth at Fungicides after a weak prior-year quarter. In Brazil, demand for our fungicides and insecticides increased, while inventories continued to normalize. However, sales at Herbicides declined, especially in Argentina.

Earnings

EBITDA before special items of Crop Science decreased by 6.5% to €1,042 million in the first quarter of 2018 (Q1 2017: €1,115 million). Adjusted for negative currency effects in the amount of €44 million, earnings were down by 2.6%. A decline in other operating income and a higher cost of goods sold were among factors that held back earnings. Lower expenses for research and development and for general administration had an opposing effect.

EBIT declined by 8.0% to €892 million, after special charges of €61 million (Q1 2017: €37 million), primarily in connection with the planned acquisition of Monsanto.

Special Items1 Crop Science

 

 

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

 

(16)

(2)

 

(3)

(2)

Litigations

 

(1)

 

(1)

Acquisition costs

 

(21)

(58)

 

(21)

(58)

Total special items

 

(37)

(61)

 

(24)

(61)

Compare to Last Year