Management Report & Annexes | Report on Economic Position

15.2 CropScience

Key Data – CropScience[Table 3.15.6]
  4th
Quarter
2013
4th
Quarter
2014
Change Full
Year
2013
Full
Year
2014
Change
  € million € million % Fx (& p) adj.  % € million € million % Fx (& p) adj.  %
Sales 1,951 2,195 +12.5 +8.3 8,819 9,494 +7.7 +11.2
Change in sales                
Volume +11.8% +7.6%     +6.8% +9.1%    
Price +1.0% +0.7%     +2.6% +2.1%    
Currency -8.2% +3.7%     -4.7% -3.7%    
Portfolio +0.5% +0.5%     +0.5% +0.2%    
Sales                
Crop Protection/Seeds 1,797 2,028 +12.9 +8.7 8,168 8,816 +7.9 +11.6
Environmental Science 154 167 +8.4 +3.9 651 678 +4.1 +6.9
Sales by region                
Europe 411 377 -8.3 -8.3 2,799 2,957 +5.6 +7.4
North America 301 329 +9.3 +0.3 2,211 2,334 +5.6 +10.2
Asia/Pacific 329 356 +8.2 +4.0 1,358 1,374 +1.2 +5.5
Latin America/Africa/Middle East 910 1,133 +24.5 +21.3 2,451 2,829 +15.4 +20.6
EBIT 163 191 +17.2   1,729 1,806 +4.5  
Special items (40) (32)   (72) (32)  
EBIT before special items1 203 223 +9.9 1,801 1,838 +2.1
EBITDA1 282 367 +30.1 2,184 2,358 +8.0
Special items (37) (2)   (64) (2)  
EBITDA before special items1 319 369 +15.7 2,248 2,360 +5.0
EBITDA margin before special items1 16.4% 16.8%     25.5% 24.9%    
Gross cash flow2 228 382 +67.5 1,590 1,835 +15.4
Net cash flow2 29 103 .   682 950 +39.3  
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales; Fx adj.: Sales by region)

1 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”

2 For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”

CropScience raised sales by 11.2% (Fx & portfolio adj.) in 2014, to €9,494 million (reported: +7.7%). Crop Protection/Seeds achieved double-digit growth, due to the attractive market environment and especially to an increase in sales of the new Crop Protection products (launched since 2006) to over €1.8 billion (reported: around +23%). The Environmental Science unit also registered an increase in sales.

CropScience Quarterly Sales

Sales in Crop Protection/Seeds climbed by 11.6% (Fx & portfolio adj.), to €8,816 million. All business units contributed to this pleasing increase. The largest increase at Crop Protection in percentage terms was achieved in Fungicides. Sales developed positively in all parts of our Seeds business, particularly for cotton seed.

Sales in Environmental Science advanced by 6.9% (Fx & portfolio adj.) to €678 million. Consumer products posted double-digit growth. We also expanded the business with products for professional users.

Sales by Business Unit[Table 3.15.7]
  4th
Quarter
2013
4th
Quarter
2014
Change Full
Year
2013
Full
Year
2014
Change
  € million € million % Fx & p adj. % € million € million % Fx & p adj. %
Herbicides 469 517 +10.2 +8.1 2,456 2,549 +3.8 +8.5
Fungicides 445 568 +27.6 +22.2 2,195 2,490 +13.4 +15.9
Insecticides 465 482 +3.7 -0.2 1,622 1,695 +4.5 +7.6
SeedGrowth 247 254 +2.8 -4.0 921 978 +6.2 +8.4
Crop Protection 1,626 1,821 +12.0 +7.8 7,194 7,712 +7.2 +10.5
Seeds 171 207 +21.1 +17.0 974 1,104 +13.3 +19.5
Crop Protection/Seeds 1,797 2,028 +12.9 +8.7 8,168 8,816 +7.9 +11.6
Environmental Science 154 167 +8.4 +3.9 651 678 +4.1 +6.9
Fx & p adj. = currency- and portfolio-adjusted

CropScience registered sales gains in all regions:

Sales in Europe rose by 7.4% (Fx adj.) to €2,957 million, driven by positive development at Crop Protection/Seeds. Sales at SeedGrowth and Fungicides registered double-digit percentage increases, while sales at Herbicides rose moderately. Business at Insecticides declined slightly overall. Seeds registered growth in all units. Business at Environmental Science developed positively. A strong consumer business more than offset the decline in sales of products for professional users.

Sales in North America advanced by 10.2% (Fx adj.) to €2,334 million. This was primarily attributable to the good development in Herbicides, particularly for use in corn and cereals, and in SeedGrowth. Business with cotton seed expanded briskly compared with the weak prior year and the soybean seed business also developed very well. The Fungicides business saw positive development, while sales at Insecticides declined due to lower pest pressure. Sales advanced at Environmental Science.

Sales in the Asia/Pacific region advanced by 5.5% (Fx adj.) to €1,374 million, thanks particularly to increased sales in Fungicides. Our Seeds business also developed well. Sales improved in the Insecticides and Herbicides businesses as well, but receded at SeedGrowth. Sales at Environmental Science expanded substantially. The region as a whole benefited especially from a significant business improvement in India, while sales in Japan and Australia also developed positively.

The strongest growth was recorded in Latin America/Africa/Middle East. Sales in that region climbed by a substantial 20.6% (Fx adj.) to €2,829 million. We achieved double-digit growth in Crop Protection/Seeds in a very positive market environment. Sales in Fungicides saw particularly robust expansion, especially for products used in soybeans. Herbicides also recorded strong growth. The SeedGrowth and Insecticides businesses also developed very well. Sales in Seeds also advanced considerably, particularly for soybeans, cotton and vegetable seeds. Sales in Environmental Science also moved ahead. Brazil, Argentina and Mexico accounted for a major part of the region’s positive sales development overall.

CropScience Quarterly EBIT / CropScience Quarterly EBITDA Before Special Items

ebit of CropScience advanced by 4.5% in 2014 to €1,806 million (2013: €1,729 million) after special charges of €32 million (2013: €72 million), which were primarily related to the planned consolidation of production facilities. ebit before special items rose by 2.1% to €1,838 million. ebitda before special items improved by 5.0% to €2,360 million. The earnings contributions from the very positive business development – marked by considerable volume gains and higher selling prices – were partially offset by higher selling and r&d expenses and negative currency effects of around €50 million.

Last updated: February 26, 2015  Copyright © Bayer AG
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