Bayer crop protection sales up 6% in Q2 2015

Bayer CropScience's crop protection sales recorded a 6.3% increase to €2,137 million in the second quarter of 2015, and herbicide achieved significant growth of 15.2% to € 787 million. Seeds sales achieved a double-digit growth of 27.4% to €335 million in this quarter, registered a positive trend – especially for vegetables and rice. Sales in Environmental Science advanced by 27.4% to €251 million, mainly as a result of strong growth in products for professional users. Bayer CropScience raised sales by 10.2% to €2,723million.

EBIT of CropScience rose by 21.5% in the second quarter of 2015 to €571 million, reflecting special charges of €28 million (q2 2014: €0 million) related to litigations and the revaluation of other receivables.

EBIT before special items climbed by 27.4% to €599 million. EBITDA before special items came in 19.2% above the prior-year quarter at €733 million (q2 2014: €615 million). This increase was driven by a positive currency effect of about €70 million.


Sales for H1 2015

For the first half year of 2015, Crop Protection sales were up by 4.4% to €4,429 million. Seed sales rose by 21.7% to €932million. The combined Crop Protection and Seed business grew by 7.1% to €5,361 million, and the positive overall development at fungicides and seeds offset lower sales at insecticides and SeedGrowth. Sales in Environmental Science advanced by 25.1% to €454 million. Bayer CropScience raised sales by 8.3% to €5,815 million.

EBIT of CropScience for the first half of 2015 came in level with the prior-year period at €1,445 million (–0.9%). Earnings were diminished by special charges of €75 million (h1 2014: €0 million) that resulted mainly from the consolidation of production sites.

EBIT before special items climbed by 4.3% to €1,520 million. EBITDA before special items came in 3.5% above the prior-year period at €1,773 million. Negative effects of lower volumes and higher selling expenses were more than offset by an increase in selling prices and a positive currency effect of around €30 million.

Regional sales (currency-and portfolio-adjusted)

In regional terms, Bayer was particularly successful in the first half of 2015 in Europe, registering double-digit growth. By contrast, sales were down in North America and in Latin America / Africa / Middle East.

Sales in Europe came in at €894 million in the second quarter of 2015, up 0.9% on a currency-adjusted basis. Bayer’s seed treatments were successful, particularly those for use in cereals. The vegetable seed business also registered strong, double-digit growth. Sales at Fungicides were down against the strong prior-year quarter following an early start to the season in the first quarter and lower pest pressure due to weather conditions.

Sales in North America climbed by 2.0%  to €915 million. This increase was mainly attributable to sales of herbicides in the United States for use particularly in corn and cotton. Sales at Fungicides fell sharply due in part to dry weather in Canada. At Environmental Science, business with products for professional users developed positively.

Sales in the Asia / Pacific region climbed by 4.9% to €443 million. The Seeds business registered a significant expansion in sales, particularly for rice, cotton and vegetables. Herbicides and Fungicides also posted successful development.

Sales in the Latin America / Africa / Middle East region moved back by 8.8% to €471 million. Crop Protection / Seeds registered a decline mainly in Insecticides in Brazil, where sales were weakened by lower pest pressure. Business at Herbicides and SeedGrowth also fell sharply in that region. At the same time, the company posted strong sales gains at Fungicides, particularly for soybeans, and at Environmental Science.

Outlook

Bayer CropScience expects to continue growing faster than the market and aims to raise sales to approximately €10.5 billion (previously: around €11 billion). This corresponds to a low-single-digit percentage increase on a currency- and portfolio-adjusted basis (previously: a low- to mid-single digit percentage increase). The company anticipates positive currency effects of about 8% (previously: about 11%) compared with 2014. In view of the weakened market environment, Bayer now plans to improve EBITDA before special items by a mid- to high-single-digit percentage (previously: a low- to mid-teens percentage).