Animal Health

Key Data – Animal Health

 

 

Q2 2016

Q2 2017

 

Change

 

H1 2016

H1 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

2016 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

426

450

 

+5.6

+2.1

 

834

890

 

+6.7

+2.5

Change in sales1

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+1.4%

−0.7%

 

 

 

 

+4.7%

−0.5%

 

 

 

Price

 

+2.8%

+2.8%

 

 

 

 

+1.7%

+3.0%

 

 

 

Currency

 

−4.7%

+1.6%

 

 

 

 

−3.9%

+2.3%

 

 

 

Portfolio

 

0.0%

+1.9%

 

 

 

 

0.0%

+1.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

123

122

 

−0.8

+2.4

 

261

266

 

+1.9

+2.3

North America

 

193

208

 

+7.8

+4.7

 

355

385

 

+8.5

+5.1

Asia / Pacific

 

71

80

 

+12.7

+9.9

 

138

156

 

+13.0

+9.4

Latin America

 

39

40

 

+2.6

−2.6

 

80

83

 

+3.8

−1.3

EBITDA1

 

100

116

 

+16.0

 

 

221

251

 

+13.6

 

Special items1

 

 

 

 

 

(1)

 

 

 

EBITDA before special items1

 

100

116

 

+16.0

 

 

222

251

 

+13.1

 

EBITDA margin before special items1

 

23.5%

25.8%

 

 

 

 

26.6%

28.2%

 

 

 

EBIT1

 

93

107

 

+15.1

 

 

207

233

 

+12.6

 

Special items1

 

 

 

 

 

(1)

 

 

 

EBIT before special items1

 

93

107

 

+15.1

 

 

208

233

 

+12.0

 

Net cash provided by operating activities

 

48

97

 

+102.1

 

 

28

66

 

+135.7

 

Second quarter of 2017

Sales

Sales of Animal Health in the second quarter of 2017 moved ahead by 2.1% (Fx & portfolio adj.) to €450 million. The development of business in the Asia / Pacific region was encouraging. In North America, the Cydectin™ product portfolio that was acquired in January 2017 contributed to sales growth on a currency-adjusted basis. We recorded a slight increase in sales in Europe / Middle East / Africa on a currency-adjusted basis, while the performance of our Latin America business matched the prior-year period.

Best-Selling Animal Health Products

 

 

Q2 2016

Q2 2017

 

Change

 

H1 2016

H1 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx adj.1 %

 

€ million

€ million

 

Reported %

Fx adj.1 %

1

Fx adj. = currency-adjusted; for definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Advantage™ product family

 

157

146

 

−7.0

−7.7

 

305

282

 

−7.5

−8.8

Seresto™

 

67

81

 

+20.9

+17.4

 

121

157

 

+29.8

+26.6

Drontal™ product family

 

32

33

 

+3.1

+4.8

 

64

68

 

+6.3

+5.4

Baytril™

 

24

31

 

+29.2

+25.8

 

52

58

 

+11.5

+8.9

Total

 

280

291

 

+3.9

+2.6

 

542

565

 

+4.2

+2.5

Proportion of Animal Health sales

 

66%

65%

 

 

 

 

65%

63%

 

 

 

Sales by product

  • Sales of our Advantage™ family of flea, tick and worm control products declined overall, primarily due to lower than expected demand in the United States.
  • We once again achieved double-digit percentage sales gains year on year with our Seresto™ flea and tick collar, thanks largely to strong demand in the United States and Europe.
  • Sales of our Drontal™ line of wormers increased again, buoyed by the good development of business in the United Kingdom, United States, China and elsewhere.
  • The strong sales gains recorded for our antibiotic Baytril™, primarily in the United States, were largely the result of a one-time effect due to changes in the distribution model. Intensified marketing activities also had a positive impact.

Earnings

EBITDA before special items of Animal Health increased by 16.0% to €116 million in the second quarter of 2017 (Q2 2016: €100 million). Positive earnings contributions resulted from price increases, the lower cost of goods sold as well as the Cydectin™ business that Bayer acquired. These more than offset a decline in volumes and slightly higher expenses for research and development.

EBIT climbed by 15.1% to €107 million, with no special items (Q2 2016: €0 million) recorded.

Special Items1 Animal Health

 

 

EBIT
Q2 2016

EBIT
Q2 2017

 

EBIT H1 2016

EBIT H1 2017

 

EBITDA Q2 2016

EBITDA Q2 2017

 

EBITDA H1 2016

EBITDA H1 2017

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Restructuring

 

 

(1)

 

 

(1)

Total special items

 

 

(1)

 

 

(1)

First half of 2017

Sales

Sales of Animal Health rose by 2.5% (Fx & portfolio adj.) to €890 million in the first half of 2017. Development in the Asia / Pacific region was especially positive. We also recorded sales gains in North America and Europe / Middle East / Africa, while business in Latin America declined slightly on a currency-adjusted basis.

Earnings

EBITDA before special items increased by 13.1% to €251 million in the first half of 2017. Performance was driven by positive price effects and the newly acquired Cydectin™ business. This development stood against higher expenses for research and development.

EBIT improved by 12.6% to €233 million, with no special items (Q2 2016: special charges of €1 million) recorded.