Hebei Lansheng Biotech Co., Ltd.
Beijing Multigrass Formulation Co., Ltd.

Bayer crop protection sales up 6% in Q3 2013qrcode

Nov. 15, 2013

Favorites Print
Forward
Nov. 15, 2013
Bayer CropScience's crop protection sales posted a 6.4% increase to€1,504 million in the third quarter ended Sep 30, 2013 compared with the same period last year. The growth was due to strong sales in Latin America. The crop protection continued to benefit from a favorable market environment, Bayer notes. Seed sales dropped sharply by 30% to €68 million.

Bayer CropScience’s Sales Results (€ million)
Q3 ended Sep. 30
Q3
2013
Q3
2012
%
change
Nine-month
2013
Nine-month
2012
%
change
Herbicides
360
360
– 5.6
1,987
1,905
+ 4.3
Fungicides
420
361
+ 16.3
1,750
1,529
+ 14.5
Insecticides
441
376
+ 17.3
1,157
1,090
+ 6.1
SeedGrowth1
303
317
– 4.4
674
677
– 0.4
Crop Protection
1,504
1,414
+ 6.4
5,568
5,201
+ 7.1
Seeds2
68
97
– 29.9
803
820
– 2.1
Crop protection / Seeds
1,572
1,511
+ 4.0
6,371
6,021
+ 5.8
Environmental Science
140
130
+ 7.7
497
506
– 1.8
EBITDA3
218
200
+ 9.0
1,902
1,676
+ 13.5
EBIT4
106
73
+ 45.2
1,566
1,309
+ 19.6
Total
1,712
1,641
+ 4.3
6,868
6,527
+ 5.2
1 the “Seed Treatment” business unit was renamed to “SeedGrowth.”
2 In September 2012 the company renamed the “BioScience” business unit within the CropScience segment to “Seeds.”
3 earnings before interest, tax, depreciation and amortisation;
4 earnings before interest and tax.

The sales growth for crop protection was driven by the insecticide and fungicide businesses in this quarter. Insecticide remained the largest product category with sales up by 17.3% at €441 million. Fungicide sales rose by 16.3% to €420 million. Herbicide sales recorded a 5.6% decline at €340 million and SeedGrowth sales were down by 4.4% to €303 million.

Sales of Seeds (seed and trait) registered a 30% drop at €68 million. This was largely the result of reduced cotton and canola acreages in North America, which also led to higher product returns. Business with vegetable seeds also recorded double-digit growth overall..

The combined crop protection and seed business increased by 4% at €1,572 million for the three months.

First nine months

The crop protection business boosted by around 7% to €5,568 million for the first nine months of 2013. Fungicide sales rose strongly by 14.5% to €1,750 million, while insecticides gained some 6% to €1,157 million, and herbicides rose around 4% to €1,987 million.SeedGrowth business dipped by 0.4% to €674 million.

Seed and trait sales were down by 2.1% to €803 million. The combined crop protection and seed business increased 5.8% to €6,371 million.

CropScience division

Bayer CropScience sales recorded a 4.3 % rise to €1,712 million.  The division saw a 8.7% rise and price rose 3.4% and portfolio achieved just 0.7% increase, while currency registered an 8.5% drop. The division includes sales from Bayer's non-crop pesticide Environmental Science business, which rose by 7.7% to €140 million. Both the consumer business and products for professional users contributed to this growth, especially in North America and in Latin America / Africa / Middle East.

Earnings for the division rose strongly in this quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 9.0% to €200 million. Earnings before interest and tax (EBIT) rose by 45.2% to €106 million.

Regions sales

In North America, sales fell back in the third quarter of 2013 by 6.5% against a very strong prior-year quarter, to €246 million. This was primarily attributable to the business development in Seeds, mainly in relation to canola and cotton. By contrast, we expanded business in Crop Protection and Environmental Science. Sales of Fungicides and Herbicides increased, while those of Insecticides declined due to lower infestation pressure.

Sales in the Asia / Pacific region rose by 10.8% to €312 million, driven by higher sales in Fungicides. Insecticides and Seeds businesses, especially for vegetables and rice, also performed very successfully. In India sales saw a significant rise, particularly of Crop Protection products.

Sales in the Latin America / Africa / Middle East region improved by a significant 31.3% to €748 million. Sales achieved double-digit growth rates in both Crop Protection / Seeds and Environmental Science. The Insecticides and Fungicides businesses, in particular, saw substantial sales growth in this region. Both SeedGrowth and Herbicide businesses also developed encouragingly. Brazil accounted for a major part of the region’s very encouraging sales development.

EBIT of CropScience rose in the third quarter of 2013 from €73 million to €106 million (+45.2%). Special charges of €9 million (Q3 2012: €3 million) were incurred for restructuring at Crop Protection. EBIT before special items advanced by 51.3% to €115 million and EBITDA before special items by 13.7% to €224 million. The increase in earnings was mainly due to the good business development but was held back by higher selling and R&D expenses.

First nine months

Bayer CropScience sales for the first nine months rose by 5.2% to €6,868 million. Volumes were up by 5.5%, prices rose by 3%, while currency effects dropped by 3.8%. Portfolio adjustments increased 0.5%.

EBIT of CropScience increased significantly in the first nine months of 2013 from €1,309 million to €1,566 million. Special charges of €32 million (9M 2012: €66 million) were incurred mainly for restructuring at Crop Protection. EBIT before special items advanced by 16.2% to €1,598 million. EBITDA before special items rose by 11.5% from €1,730 million in the prior-year period to €1,929 million. Earnings growth was primarily due to the favorable business development, especially in Crop Protection, but was held back by higher selling and R&D expenses.

outlook


Following a good first nine months, Bayer anticipates that the favorable market environment for seed and crop protection products will persist in the fourth quarter of 2013. All regions will probably contribute to full-year growth, with above-average stimulus expected to come particularly from Latin America and Eastern Europe.

Picture 0/1200

More from AgroNews

Magazine

Annual Review 2020 2020 India Pesticide Suppliers Guide
2020 Market Insight Chinese issue of 2020 Market Insight
2020 CRO & CRAO Manual Chinese issue of 2020 Biologicals Special
Subscribe Comment

Subscribe 

Subscribe Email: *
Name:
Mobile Number:  

Comment  

Picture 0/1200

Subscribe to daily email alerts of AgroNews.