Crop Science

Key Data – Crop Science

 

 

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

 

2,057

2,031

 

−1.3

+2.7

 

7,511

7,314

 

−2.6

−3.2

Change in sales1

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

−4.0%

+7.1%

 

 

 

 

−1.6%

−1.2%

 

 

 

Price

 

+4.0%

−4.4%

 

 

 

 

+2.2%

−2.0%

 

 

 

Currency

 

−1.2%

−4.0%

 

 

 

 

−3.4%

+0.6%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

+0.1%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj.
%

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

542

525

 

−3.1

−0.2

 

2,859

2,895

 

+1.3

+1.1

North America

 

368

386

 

+4.9

+9.8

 

2,089

2,293

 

+9.8

+7.6

Asia / Pacific

 

367

380

 

+3.5

+7.4

 

1,164

1,205

 

+3.5

+2.4

Latin America

 

780

740

 

−5.1

−0.3

 

1,399

921

 

−34.2

−32.7

EBITDA1

 

247

199

 

−19.4

 

 

1,966

1,523

 

−22.5

 

Special items1

 

(71)

(108)

 

 

 

 

(104)

(216)

 

 

 

EBITDA before special items1

 

318

307

 

−3.5

 

 

2,070

1,739

 

−16.0

 

EBITDA margin before special items1

 

15.5%

15.1%

 

 

 

 

27.6%

23.8%

 

 

 

EBIT1

 

135

84

 

−37.8

 

 

1,602

1,171

 

−26.9

 

Special items1

 

(71)

(121)

 

 

 

 

(104)

(253)

 

 

 

EBIT before special items1

 

206

205

 

−0.5

 

 

1,706

1,424

 

−16.5

 

Net cash provided by operating activities

 

1,027

841

 

−18.1

 

 

1,449

1,332

 

−8.1

 

Third quarter of 2017

Sales

Crop Science posted sales of €2,031 million in the third quarter of 2017 (Fx & portfolio adj. +2.7%). Crop Protection / Seeds registered gains on a currency- and portfolio-adjusted basis that resulted particularly from gratifying development in the Asia / Pacific and North America regions. Environmental Science posted increased sales due to product deliveries to the acquirer of the consumer business divested in the fourth quarter of 2016.

Sales by Business Unit

 

 

Q3 2016

Q3 2017

 

Change

 

9M 2016

9M 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

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

Crop Protection / Seeds

 

1,911

1,882

 

−1.5

+2.4

 

7,093

6,826

 

−3.8

−4.3

Crop Protection

 

1,759

1,692

 

−3.8

0.0

 

5,996

5,580

 

−6.9

−6.9

Herbicides

 

480

453

 

−5.6

−1.9

 

2,094

2,107

 

+0.6

−0.2

Fungicides

 

615

553

 

−10.1

−6.3

 

2,282

1,842

 

−19.3

−18.7

Insecticides

 

385

421

 

+9.4

+13.2

 

971

978

 

+0.7

+1.2

SeedGrowth

 

279

265

 

−5.0

−1.1

 

649

653

 

+0.6

+0.6

Seeds

 

152

190

 

+25.0

+29.6

 

1,097

1,246

 

+13.6

+9.9

Environmental Science

 

146

149

 

+2.1

+6.8

 

418

488

 

+16.7

+16.0

Sales by region

  • Sales in Europe / Middle East / Africa matched the prior-year level at €525 million (Fx adj. −0.2%). Business developed very positively at Seeds, particularly for vegetables, and at Insecticides, due in part to a successful tender business. In contrast, SeedGrowth and Herbicides posted considerable declines.
  • Sales in North America advanced by 9.8% (Fx adj.) to €386 million. We achieved strong growth in the Seeds business, in particular for soybeans and oilseed rape / canola. However, the Insecticides and Fungicides businesses registered considerable declines in sales. Environmental Science posted a substantial increase in sales.
  • In the Asia / Pacific region, sales moved forward by 7.4% (Fx adj.) to €380 million. Business at Insecticides and Fungicides developed very positively in India after a weak second quarter in connection with the introduction of a new sales tax system. The Seeds business also saw gratifying development thanks above all to an early start to the season for oilseeds and cotton, while sales were down at Herbicides and SeedGrowth.
  • Sales in the Latin America region were flat year on year at €740 million (Fx adj. −0.3%), with sales declining slightly in Brazil, where business was impacted in particular by price reductions. We posted gains in sales overall in the other Latin American countries on a currency-adjusted basis.

Earnings

EBITDA before special items of Crop Science decreased by 3.5% to €307 million in the third quarter of 2017 (Q3 2016: €318 million). Lower selling prices and a negative currency effect in the amount of around €20 million stood against an increase in other operating income, a decline in the cost of goods sold and a decrease in selling expenses. Positive effects in the mid-double-digit millions were recorded in conjunction with the accounting measures taken in the previous quarter in Brazil.

EBIT declined by 37.8% to €84 million. This included special charges of €121 million (Q3 2016: €71 million), primarily in conjunction with the agreed acquisition of Monsanto and the execution of a divestment project.

Special Items1 Crop Science

 

 

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

 

(18)

(3)

 

(46)

(25)

 

(18)

(4)

 

(46)

(12)

Litigations

 

(1)

 

(5)

(3)

 

(1)

 

(5)

(3)

Acquisition costs

 

(52)

(102)

 

(52)

(170)

 

(52)

(102)

 

(52)

(170)

Divestments

 

(1)

(15)

 

(1)

(55)

 

(1)

(1)

 

(1)

(31)

Total special items

 

(71)

(121)

 

(104)

(253)

 

(71)

(108)

 

(104)

(216)

First nine months of 2017

Sales

Sales of Crop Science receded by 3.2% (Fx & portfolio adj.) in the first nine months of 2017, to €7,314 million. The decline mainly reflected higher provisions for crop protection product returns in Brazil. In contrast, we registered considerable gains at Seeds and Environmental Science. Gains in North America, Asia / Pacific and Europe / Middle East / Africa were not sufficient to offset the significant decline in sales in the Latin America region.

Earnings

EBITDA before special items of Crop Science declined by 16.0% to €1,739 million in the first nine months of 2017 (9M 2016: €2,070 million). Earnings were significantly impacted by the provisions established in Brazil in the second quarter. Excluding the Brazil business, earnings were up slightly year on year.

EBIT fell by 26.9% to €1,171 million. Earnings were held back by special charges of €253 million (9M 2016: €104 million) that mainly related to the agreed acquisition of Monsanto, the execution of a divestment project and efficiency enhancement measures.