Bayer CropScience sales up by 13% in Q3 2014

Date:10-31-2014

The sales of Bayer CropScience increased in the third quarter by 12.7% to €1,929 million (Q3 2013: €1,712 million). EBITDA before special items at CropScience climbed 24.1% above the prior-year quarter to €278 million (Q3 2013: €224 million). While business development was favorable, with significantly higher volumes and selling prices, R&D and selling expenses were considerably higher.

All units of Crop Protection developed positively. The Fungicides and Herbicides units posted double-digit growth rates, at 14% and 12.9%, respectively, while sales at Insecticides (6.8%) and SeedGrowth (4.3%) continued to increase. The new Crop Protection products launched since 2006 again contributed significantly to the positive sales development in the third quarter. CropScience nearly doubled sales in the Seeds business by 92.6%. Sales of cotton seed developed especially positively. Sales of Environmental Science advanced by 5.7%.

Bayer CropScience’s Sales Results (€ million)
Q3ended Sep. 30	Q3 2014	Q3 2013	% Change	Nine-month 2014	Nine-month 2013	% Change
Crop Protection	1,650	1,504	+9.7	5,891	5,568	+5.8
Herbicides	384	340	+12.9	2,032	1,987	+2.3
Fungicides	479	420	+14.0	1,922	1,750	+9.8
Insecticides	471	441	+6.8	1,213	1,157	+4.8
Seed Growth	316	303	+4.3	724	674	+7.4
Seeds	131	68	+92.6	897	803	+11.7
Environmental Science	148	140	+5.7	511	497	+2.8
Total	1,929	1,712	+12.7	7,299	6,868	+6.3
EBIT	157	106	+48.1	1,615	1,566	+3.1
EBITDA before special items	278	224	+24.1	1,991	1,929	+3.2

Regional sales (currency-and portfolio- adjusted)

Sales in Europe rose by 12.8% to €454 million. The Crop Protection business further expanded in the third quarter of 2014 following an early start to the fall season. Robust sales gains at Herbicides and SeedGrowth more than offset the decline in sales at Insecticides. The Fungicides business posted a small increase. Seeds and Environmental Science registered substantial growth

Sales in North America climbed by 23.2% in the third quarter of 2014 compared with the weak prior-year period, to €303 million. The company saw a significant increase in sales in our Herbicides unit, particularly with products for use in corn. Sales of Insecticides and SeedGrowth also expanded, while business in the Fungicides unit receded. Seeds business developed very positively. Sales of Environmental Science remained level with the prior-year period.

Sales in Asia/Pacific, at €318 million, were at the level of the prior-year quarter. The increase in sales at Fungicides and Insecticides did not fully offset the declines at Herbicides and Seed-Growth. Seeds business, especially sales of rice and vegetable seeds, developed positively. Sales of Environmental Science also rose. Bayer posted double-digit growth rates overall in India, while sales in China and Australia receded.

Sales in the Latin America/Africa/Middle East region improved by 19.3% to €854 million. Business developed particularly well in Latin America after an early start to the season, with substantial sales gains in nearly all units. There were particularly strong increases for Fungicides, Insecticides and soybean seeds. Bayer also posted double-digit percentage growth overall in the Middle East. The business in Africa showed moderate growth.

Outlook

Bayer is raising its guidance for CropScience in light of the encouraging business development. The subgroup now expects to increase sales by about 10% (previously: a high-single-digit percentage) after adjusting for currency and portfolio effects, and thus to grow significantly faster than the market. EBITDA before special items is expected to increase by a mid-single-digit percentage (previously: low-single-digit percentage).