Management Report & Annexes | Report on Economic Position

15.2 CropScience

Key Data – CropScience[Table 3.15.6]
4th Quarter
2012
4th Quarter
2013
Change Full Year
2012
Full Year
2013
Change
  € million € million % Fx (& p)
adj.%
€ million € million % Fx (& p)
adj.%
Sales 1,856 1,951 +5.1 +12.8 8,383 8,819 +5.2 +9.4
Change in sales
Volume +9.0% +11.8% +11.6% +6.8%
Price +0.1% +1.0% +0.8% +2.6%
Currency +1.9% -8.2% +3.8% -4.7%
Portfolio -0.3% +0.5% -0.7% +0.5%
Sales by operating segment
Crop Protection/Seeds 1,682 1,797 +6.8 +14.6 7,703 8,168 +6.0 +10.1
Environmental Science 174 154 -11.5 -4.6 680 651 -4.3 +1.3
Sales by region
Europe 393 411 +4.6 +5.3 2,706 2,799 +3.4 +4.3
North America 287 301 +4.9 +10.5 2,154 2,211 +2.6 +5.0
Asia/Pacific 363 329 -9.4 +4.4 1,386 1,358 -2.0 +7.9
Latin America/Africa/
Middle East
813 910 +11.9 +22.3 2,137 2,451 +14.7 +23.6
EBIT 247 163 -34.0 1,556 1,729 +11.1
Special items 79 (40) 13 (72)
EBIT before special items* 168 203 +20.8 1,543 1,801 +16.7
EBITDA* 374 282 -24.6 2,050 2,184 +6.5
Special items 79 (37) 25 (64)
EBITDA before special items* 295 319 +8.1 2,025 2,248 +11.0
EBITDA margin before special items* 15.9% 16.4% 24.2% 25.5%
Gross cash flow** 132 228 +72.7 1,332 1,590 +19.4
Net cash flow** 105 29 -72.4 899 682 -24.1
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales and Sales by operating segment; Fx adj.: Sales by region)
* For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
** For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”

CropScience raised sales in 2013 by 9.4% (Fx & portfolio adj.) to €8,819 million (reported: +5.2%). Thus we succeeded in substantially growing the business despite the late start to the season in the northern hemisphere. Sales in Crop Protection/Seeds developed positively, due to the attractive market environment and especially to an increase in sales of the new Crop Protection products we have launched since 2006 to more than €1,510 million (reported: approx. +30%). Sales in the Seeds unit rose slightly overall despite reduced canola and cotton acreages in North America. The Environmental Science unit also registered a small increase in sales.

Sales in Crop Protection/Seeds climbed by 10.1% (Fx & portfolio adj.), to €8,168 million. All of the Crop Protection business units developed positively. Fungicides and Insecticides achieved the largest increases in percentage terms, with Herbicides and SeedGrowth posting encouraging gains. Sales of vegetable seeds also moved ahead.

Sales in Environmental Science edged upward by 1.3% (Fx & portfolio adj.) to €651 million. The ­positive development in products for professional users more than offset the decline in the consumer business.

Sales by Business Units[Table 3.15.7]
4th Quarter
2012
4th Quarter
2013
Change Full Year
2012
Full Year
2013
Change
  € million € million % Fx & p
adj. %
€ million € million % Fx & p
adj. %
Herbicides 451 469 +4.0 +11.5 2,356 2,456 +4.2 +8.3
Fungicides 445 445 0.0 +6.7 1,974 2,195 +11.2 +14.9
Insecticides 424 465 +9.7 +20.1 1,514 1,622 +7.1 +14.1
SeedGrowth 220 247 +12.3 +18.6 897 921 +2.7 +7.1
Crop Protection 1,540 1,626 +5.6 +13.6 6,741 7,194 +6.7 +11.4
Seeds 142 171 +20.4 +25.2 962 974 +1.2 +1.2
Crop Protection/Seeds 1,682 1,797 +6.8 +14.6 7,703 8,168 +6.0 +10.1
Environmental Science 174 154 -11.5 -4.6 680 651 -4.3 +1.3
2012 figures restated
Fx & p adj. = currency- and portfolio-adjusted

CropScience achieved currency-adjusted sales increases in all regions.

In Europe, sales rose by 4.3% (Fx adj.) to €2,799 million, mainly in light of the positive development at Crop Protection/Seeds. Fungicides posted double-digit growth. Both Insecticides and the vegetable seed business developed well, while sales of Herbicides showed only a small increase. Business in SeedGrowth receded overall, partly as a consequence of use restrictions for products containing ­neonicotinoids. Sales of Environmental Science receded due to the downturn in the consumer business.

Sales in North America advanced by 5.0% (Fx adj.) to €2,211 million. This was primarily attributable to the robust business development in SeedGrowth with products for use in corn and soybeans and to positive development in Herbicides. Double-digit growth was also recorded in Fungicides, while sales in the Insecticides unit declined due to lower infestation pressure. Business in Seeds was down against a strong prior year. The positive development of our vegetable seeds business did not fully offset the lower sales of canola and cotton seed, which were due to reduced acreages. Business expanded at Environmental Science.

Sales in the Asia/Pacific region advanced by 7.9% (Fx adj.) to €1,358 million, thanks partly to increased sales in Herbicides. Business in Insecticides and Fungicides also expanded. Our Seeds business developed successfully, too, with double-digit growth for vegetable and rice seeds. The region as a whole benefited especially from a significant business improvement in India. Sales in Environmental Science were at the previous year’s level.

Growth was strongest in Latin America/Africa/Middle East, where sales climbed by a substantial 23.6% (Fx adj.) to €2,451 million. We achieved double-digit growth in Crop Protection/Seeds in a very positive market environment. Sales of the Insecticides unit posted particularly good gains, driven by our products for use in soybeans and corn. In Fungicides, products for use in soybeans were especially successful. The SeedGrowth and Herbicides businesses also developed very well. Sales in Seeds advanced in addition, particularly for vegetable and cotton seed. The soybean seed business also developed very well, partly due to acquisitions made in 2013. Brazil and Argentina accounted for a major part of the ­region’s positive sales development. Sales in Environmental Science also moved ahead.

EBIT of CropScience rose in 2013 by a substantial 11.1%, from €1,556 million in the prior year to €1,729 million after special charges of €72 million (2012: special gain of €13 million). The special charges mainly comprised restructuring expenses in Crop Protection. EBIT before special items advanced by 16.7% to €1,801 million. EBITDA before special items moved ahead by 11.0% to €2,248 million. Earnings growth was mainly the result of significant volume increases and higher selling prices, with positive currency effects of some €20 million also contributing to the increase.

Last updated: February 28, 2014  Copyright © Bayer AG
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