Consumer Health

Key Data – Consumer 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

 

1,425

1,320

 

−7.4

−2.9

 

4,498

4,463

 

−0.8

−0.8

Changes in sales1

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+1.2%

−3.2%

 

 

 

 

+0.3%

−2.5%

 

 

 

Price

 

+2.4%

+0.3%

 

 

 

 

+3.0%

+1.7%

 

 

 

Currency

 

−3.5%

−4.5%

 

 

 

 

−4.9%

0.0%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj.
%

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

457

430

 

−5.9

−3.9

 

1,419

1,471

 

+3.7

+2.7

North America

 

600

537

 

−10.5

−6.0

 

1,978

1,899

 

−4.0

−4.7

Asia / Pacific

 

185

178

 

−3.8

+0.5

 

587

593

 

+1.0

+1.4

Latin America

 

183

175

 

−4.4

+6.0

 

514

500

 

−2.7

+1.9

EBITDA1

 

301

257

 

−14.6

 

 

962

948

 

−1.5

 

Special items1

 

(27)

(17)

 

 

 

 

(77)

(32)

 

 

 

EBITDA before special items1

 

328

274

 

−16.5

 

 

1,039

980

 

−5.7

 

EBITDA margin before special items1

 

23.0%

20.8%

 

 

 

 

23.1%

22.0%

 

 

 

EBIT1

 

194

155

 

−20.1

 

 

627

628

 

+0.2

 

Special items1

 

(29)

(18)

 

 

 

 

(93)

(42)

 

 

 

EBIT before special items1

 

223

173

 

−22.4

 

 

720

670

 

−6.9

 

Net cash provided by operating activities

 

215

200

 

−7.0

 

 

653

762

 

+16.7

 

Third quarter of 2017

Sales

Sales of Consumer Health in the third quarter of 2017 fell by 2.9% (Fx & portfolio adj.) to €1,320 million. The decline in sales in North America was largely due to the market environment remaining challenging in the United States. The negative development in Europe is primarily the result of weaker business in Russia after a strong previous quarter. We increased sales in Latin America on a currency-adjusted basis, especially in Argentina, and attained the prior-year level in Asia/Pacific.

Best-Selling Consumer 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.”

2

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

Claritin™

 

118

123

 

+4.2

+9.3

 

483

472

 

−2.3

−3.0

Aspirin™

 

119

117

 

−1.7

+2.1

 

337

338

 

+0.3

+0.8

Bepanthen™ / Bepanthol™

 

85

88

 

+3.5

+6.1

 

272

283

 

+4.0

+4.4

Aleve™

 

101

89

 

−11.9

−7.1

 

301

272

 

−9.6

−9.8

Canesten™

 

66

66

 

.

+10.2

 

205

210

 

+2.4

+8.0

Coppertone™

 

27

15

 

−44.4

−44.6

 

202

197

 

−2.5

−5.1

Alka-Seltzer™ product family

 

64

57

 

−10.9

−6.0

 

166

171

 

+3.0

+3.0

One A Day™

 

56

49

 

−12.5

−10.9

 

155

159

 

+2.6

+1.5

Dr Scholl’s™2

 

55

51

 

−7.3

−0.6

 

180

157

 

−12.8

−12.6

Elevit™

 

51

51

 

.

+2.9

 

134

147

 

+9.7

+8.3

Total

 

742

706

 

−4.9

−0.3

 

2,435

2,406

 

−1.2

−1.1

Proportion of Consumer Health sales

 

52%

53%

 

 

 

 

54%

54%

 

 

 

Sales by product

  • We posted marked growth in sales of our antihistamine Claritin™ compared with a weak prior-year quarter, primarily in China and the United States.
  • Sales of our analgesic Aspirin™ edged higher thanks mainly to gains in Germany. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales climbed by 7.9% (Fx adj.) to €256 million (Q3 2016: €247 million).
  • Business with our Bepanthen™ / Bepanthol™ wound and skin care products developed positively, especially in Europe.
  • Sales of our analgesic Aleve™ came in much lower than in the strong prior-year quarter, when we benefitted from a product line expansion. The development in the third quarter of 2017 was primarily the result of the ongoing unfavorable competitive situation in the United States.
  • Business with our Canesten™ skin and intimate health products expanded by a double-digit percentage, particularly in Latin America.
  • The substantial decline in sales of our sunscreen product Coppertone™ was mainly due to ongoing strong competitive pressure in the United States.
  • Sales of our Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms declined, primarily in Latin America and the United States.
  • Business with our One A Day™ vitamin product declined markedly in the United States compared with the strong prior-year quarter, which benefited from a product line extension.
  • Sales of our Dr. Scholl’s™ foot care products were level with the prior-year quarter. Gains in the United States that reflected the repositioning of the brand were sufficient to offset declines in Latin America.
  • Sales of our prenatal vitamin Elevit™ rose slightly, due chiefly to steady demand in Asia/Pacific.

Earnings

EBITDA before special items of Consumer Health declined by a substantial 16.5% to €274 million in the third quarter of 2017 (Q3 2016: €328 million). The fall in earnings is primarily due to lower volumes and a higher cost of goods sold, which largely resulted from inventory write-offs and the underutilization of production facilities. In addition, currency effects diminished earnings by around €10 million. Earnings also included one-time gains in the amount of around €30 million that mainly related to the sale of non-core brands.

EBIT declined by 20.1% to €155 million, after special charges of €18 million (Q3 2016: €29 million) resulting from efficiency enhancement measures.

Special Items1 Consumer 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

 

(6)

(18)

 

(23)

(42)

 

(4)

(17)

 

(7)

(32)

Integration costs

 

(23)

 

(70)

 

(23)

 

(70)

Total special items

 

(29)

(18)

 

(93)

(42)

 

(27)

(17)

 

(77)

(32)

First nine months of 2017

Sales

Sales of Consumer Health were level year on year in the first nine months of 2017 at €4,463 million (Fx & portfolio adj. −0.8%). Positive business development in Europe / Middle East / Africa, Latin America and Asia / Pacific was sufficient to offset declines in North America.

Earnings

EBITDA before special items declined by 5.7% to €980 million in the first nine months of 2017 (9M 2016: €1,039 million). The fall in earnings is primarily due to lower volumes and a higher cost of goods sold. Higher one-time gains in the mid-double-digit millions, largely resulting from the sale of non-core brands, had a positive effect.

EBIT matched the prior-year period, rising 0.2% to €628 million (9M 2016: €627 million). Special charges amounted to €42 million (9M 2016: €93 million) and resulted from efficiency enhancement measures.