Animal Health

Key Data – Animal Health

 

 

Q3 2016

Q3 2017

 

Change

 

9M 2016

9M 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ 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

 

360

359

 

−0.3

+1.4

 

1,194

1,249

 

+4.6

+2.1

Change in sales1

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+0.8%

+1.1%

 

 

 

 

+3.5%

−0.1%

 

 

 

Price

 

+1.7%

+0.3%

 

 

 

 

+1.7%

+2.2%

 

 

 

Currency

 

−1.7%

−3.9%

 

 

 

 

−3.2%

+0.4%

 

 

 

Portfolio

 

0.0%

+2.2%

 

 

 

 

0.0%

+2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj.
%

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

100

94

 

−6.0

−5.0

 

361

360

 

−0.3

+0.3

North America

 

137

144

 

+5.1

+10.2

 

492

529

 

+7.5

+6.5

Asia / Pacific

 

83

82

 

−1.2

+3.6

 

221

238

 

+7.7

+7.2

Latin America

 

40

39

 

−2.5

0.0

 

120

122

 

+1.7

0.0

EBITDA1

 

88

73

 

−17.0

 

 

309

324

 

+4.9

 

Special items1

 

(1)

(8)

 

 

 

 

(2)

(8)

 

 

 

EBITDA before special items1

 

89

81

 

−9.0

 

 

311

332

 

+6.8

 

EBITDA margin before special items1

 

24.7%

22.6%

 

 

 

 

26.0%

26.6%

 

 

 

EBIT1

 

81

64

 

−21.0

 

 

288

297

 

+3.1

 

Special items1

 

(1)

(8)

 

 

 

 

(2)

(8)

 

 

 

EBIT before special items1

 

82

72

 

−12.2

 

 

290

305

 

+5.2

 

Net cash provided by operating activities

 

80

68

 

−15.0

 

 

108

134

 

+24.1

 

Third quarter of 2017

Sales

Animal Health posted a 1.4% (Fx & portfolio adj.) increase in sales in the third quarter of 2017, to €359 million, in a weak market environment overall. We achieved considerable gains in the North America region on a currency-adjusted basis, thanks partly to the Cydectin™ product portfolio acquired in January 2017. We also expanded business in Asia / Pacific on a currency-adjusted basis, while sales receded in Europe / Middle East / Africa.

Best-Selling Animal Health Products

 

 

Q3 2016

Q3 2017

 

Change

 

9M 2016

9M 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx adj.1 %

 

€ million

€ million

 

Reported %

Fx adj.1 %

1

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

Advantage™ product family

 

128

119

 

−7.0

−3.3

 

433

401

 

−7.4

−7.2

Seresto™

 

25

29

 

+16.0

+17.1

 

146

186

 

+27.4

+25.0

Drontal™ product family

 

33

34

 

+3.0

+4.8

 

97

102

 

+5.2

+5.2

Baytril™

 

27

24

 

−11.1

−6.0

 

79

82

 

+3.8

+3.8

Total

 

213

206

 

−3.3

+0.1

 

755

771

 

+2.1

+1.8

Proportion of Animal Health sales

 

59%

57%

 

 

 

 

63%

62%

 

 

 

Sales by product

  • Sales of our Advantage™ family of flea, tick and worm control products were down against the prior year, mainly as a result of higher competitive pressure in Europe.
  • We continued to post double-digit-percentage sales growth with our Seresto™ flea and tick collar due mainly to increased demand in the United States and in the Latin America and Europe / Middle East / Africa regions.
  • Business with our Drontal™ line of dewormers benefited particularly from higher prices and volumes in the North America and Asia / Pacific regions.
  • Sales of our antibiotic Baytril™ primarily declined in the United States. We also registered lower volumes in the Asia / Pacific region.

Earnings

EBITDA before special items of Animal Health declined by 9.0% to €81 million in the third quarter of 2017 (Q3 2016: €89 million). Negative product mix effects, higher selling expenses as a result of seasonal shifts, and a currency loss of around €5 million diminished earnings. The positive contributions from the Cydectin™ business we acquired were insufficient to offset these developments.

EBIT increased by 21.0% to €64 million. It included special charges of €8 million (Q3 2016: €1 million) in conjunction with efficiency enhancement measures.

Special Items1 Animal Health

 

 

EBIT
Q3 2016

EBIT
Q3 2017

 

EBIT 9M 2016

EBIT 9M 2017

 

EBITDA Q3 2016

EBITDA Q3 2017

 

EBITDA 9M 2016

EBITDA 9M 2017

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

1

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

Restructuring

 

(1)

(8)

 

(2)

(8)

 

(1)

(8)

 

(2)

(8)

Total special items

 

(1)

(8)

 

(2)

(8)

 

(1)

(8)

 

(2)

(8)

First nine months of 2017

Sales

Sales of Animal Health rose by 2.1% (Fx & portfolio adj.) to €1,249 million in the first nine months. We achieved sales gains particularly in North America and Asia / Pacific, while business was level with the prior-year period in Europe / Middle East / Africa and Latin America on a currency-adjusted basis.

Earnings

EBITDA before special items increased by 6.8% to €332 million in the first nine months of 2017. This development was largely due to positive price effects and the recently acquired Cydectin™ business. These stood against negative volume effects, higher selling expenses and an increase in research and development expenditures. Negative currency effects diminished earnings by €5 million.

EBIT improved by 3.1% to €297 million after special charges of €8 million (9M 2016: €2 million).