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Source: Bayer news release

To view the complete report, click here.

The Bayer Group was again successful in the second quarter of 2014. "Our Life Science businesses, in particular, saw unabated growth momentum, with very encouraging sales gains for our recently launched pharmaceutical products and our North and Latin American CropScience business," said Management Board Chairman Dr. Marijn Dekkers when the interim report was published on Wednesday.

Although earnings growth was again held back by substantial negative currency effects, these were offset by the good business development. EBITDA before special items and core earnings per share were at the previous year's level. The Chairman confirmed the Bayer Group's forecast for the current year.

Dekkers said Bayer made progress in the second quarter from a strategic point of view as well with the planned acquisition of the consumer care activities of U.S. company Merck & Co., Inc. "This acquisition will greatly strengthen our Consumer Health business," he explained.

CropScience posts clear increases in all units

Sales of the agriculture business (CropScience) increased by 3.3 percent (Fx & portfolio adj. 10.5 percent) to EUR 2,470 million (Q2 2013: EUR 2,392 million). "Both Crop Protection/Seeds and Environmental Science contributed to this encouraging growth," said Dekkers.

The subgroup mainly benefited from strong sales in North and Latin America. Sales gained 20.7 percent (Fx adj.) in the Latin America/Africa/Middle East region and 18.5 percent (Fx adj.) in North America. Clear increases were also recorded in Asia/Pacific (Fx adj. plus 8.2 percent), while sales in Europe were at the level of the prior-year period (Fx adj. plus 0.7 percent).

Crop Protection saw positive development in all units, with the new products launched since 2006 again accounting for a major share of the increase. The Fungicides (Fx & portfolio adj. 11.2 percent), Insecticides (Fx & portfolio adj. 11.5 percent) and SeedGrowth (Fx & portfolio adj. 20.5 percent) units all posted double-digit sales gains. Herbicides sales showed steady growth of 6.0 percent (Fx & portfolio adj.).

Business in the Seeds unit also grew substantially (Fx & portfolio adj. plus 15.9 percent). The Environmental Science unit also remained on a successful path with an increase of 7.8 percent (Fx & portfolio adj.), mainly due to strong gains in the consumer business.

EBITDA before special items of CropScience came in just 1.4 percent below the prior-year quarter at EUR 615 million (Q2 2013: EUR 624 million). Earnings benefited from the favorable business development, with significantly higher volumes and selling prices.

However, this did not fully offset the negative currency effects of roughly EUR 40 million, or about 6 percent, and increases in marketing costs and research and development expenses.

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