Consumer Health

Key Data – Consumer 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

 

1,553

1,542

 

−0.7

−2.2

 

3,073

3,143

 

+2.3

+0.2

Changes in sales1

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+1.2%

−4.6%

 

 

 

 

−0.1%

−2.2%

 

 

 

Price

 

+2.8%

+2.4%

 

 

 

 

+3.2%

+2.4%

 

 

 

Currency

 

−6.3%

+1.5%

 

 

 

 

−5.4%

+2.1%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

480

503

 

+4.8

+2.7

 

962

1,041

 

+8.2

+5.8

North America

 

701

661

 

−5.7

−7.8

 

1,378

1,362

 

−1.2

−4.1

Asia / Pacific

 

201

195

 

−3.0

−3.0

 

402

415

 

+3.2

+1.7

Latin America

 

171

183

 

+7.0

+8.8

 

331

325

 

−1.8

0.0

EBITDA1

 

297

307

 

+3.4

 

 

661

691

 

+4.5

 

Special items1

 

(31)

(7)

 

 

 

 

(50)

(15)

 

 

 

EBITDA before special items1

 

328

314

 

−4.3

 

 

711

706

 

−0.7

 

EBITDA margin before special items1

 

21.1%

20.4%

 

 

 

 

23.1%

22.5%

 

 

 

EBIT1

 

190

195

 

+2.6

 

 

433

473

 

+9.2

 

Special items1

 

(32)

(15)

 

 

 

 

(64)

(24)

 

 

 

EBIT before special items1

 

222

210

 

−5.4

 

 

497

497

 

0.0

 

Net cash provided by operating activities

 

241

297

 

+23.2

 

 

438

562

 

+28.3

 

Second quarter of 2017

Sales

Sales of Consumer Health in the second quarter of 2017 fell by 2.2% (Fx & portfolio adj.) to €1,542 million. We recorded substantial declines in sales in North America, particularly in the United States, due to the difficult market environment. In contrast, we expanded our business in Latin America and Europe / Middle East / Africa.

Best-Selling Consumer 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.”

2

Trademark rights and distribution only in certain countries outside the European Union

Claritin™

 

178

159

 

−10.7

−12.3

 

365

349

 

−4.4

−6.9

Aspirin™

 

102

104

 

+2.0

+0.7

 

218

221

 

+1.4

+0.1

Bepanthen™ / Bepanthol™

 

95

100

 

+5.3

+4.9

 

187

195

 

+4.3

+3.6

Aleve™

 

110

101

 

−8.2

−10.5

 

200

183

 

−8.5

−11.1

Coppertone™2

 

94

80

 

−14.9

−16.7

 

175

182

 

+4.0

+0.8

Canesten™

 

75

74

 

−1.3

+3.1

 

139

144

 

+3.6

+7.0

Alka-Seltzer™ product family

 

45

44

 

−2.2

−4.8

 

102

114

 

+11.8

+8.7

One A Day™

 

55

55

 

0.0

+0.2

 

99

110

 

+11.1

+8.7

Dr Scholl’s™2

 

65

65

 

0.0

−3.2

 

125

106

 

−15.2

−17.8

Elevit™

 

40

44

 

+10.0

+9.9

 

83

96

 

+15.7

+11.7

Total

 

859

826

 

−3.8

−4.9

 

1,693

1,700

 

+0.4

−1.5

Proportion of Consumer Health sales

 

55%

54%

 

 

 

 

55%

54%

 

 

 

Sales by product

  • Sales of our antihistamine Claritin™ declined substantially compared with a strong prior-year quarter, primarily in the United States and in China. In the United States, business was impacted by a weaker allergy season, among other factors. We had also benefited from the market launch of ClariSpray™ in 2016.
  • Sales of our analgesic Aspirin™ matched the strong prior-year quarter. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales advanced by 4.9% (Fx adj.) to €252 million (Q2 2016: €240 million).
  • We increased sales of our Bepanthen™ / Bepanthol™ wound and skin care products, primarily in Asia / Pacific and Latin America.
  • Sales of our analgesic Aleve™ came in much lower than in the prior-year quarter, largely as a result of increased competitive pressure in the United States.
  • We recorded a substantial decline in sales of our sunscreen product Coppertone™, mainly due to increased competitive pressure and a weak season to date in the United States.
  • Sales of our Canesten™ skin and intimate health products advanced on a currency-adjusted basis, particularly in China.
  • Business with our Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms declined, primarily in the United States.
  • Sales of our One A Day™ vitamin product matched the level of the strong prior-year quarter, with gains in Latin America offsetting declines in North America.
  • Sales of our Dr. Scholl’s™ foot care products were down slightly from the prior-year quarter on a currency-adjusted basis. Gains in the United States only partly offset declines in Latin America.
  • The considerable increase in sales of our prenatal vitamin Elevit™ was largely the result of demand remaining strong in Asia / Pacific, primarily in China.

Earnings

EBITDA before special items of Consumer Health declined by 4.3% to €314 million in the second quarter of 2017 (Q2 2016: €328 million). The fall in earnings is mainly attributable to lower volumes and the higher cost of goods sold, which resulted in part from inventory write-offs.

EBIT increased by 2.6% to €195 million, and included special charges of €15 million (Q2 2016: €32 million).

Special Items1 Consumer 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

 

(3)

(15)

 

(17)

(24)

 

(2)

(7)

 

(3)

(15)

Integration costs

 

(29)

 

(47)

 

(29)

 

(47)

Total special items

 

(32)

(15)

 

(64)

(24)

 

(31)

(7)

 

(50)

(15)

First half of 2017

Sales

In the first half of 2017, Consumer Health posted sales of €3,143 million (Fx & portfolio adj. +0.2%). Business developed positively in Europe in particular, while sales fell in North America due to a difficult market environment in the United States.

Earnings

EBITDA before special items decreased by 0.7% in the first half of 2017, to €706 million (H1 2016: €711 million). Earnings contributions from the development of business stood against the higher cost of goods sold, which was due in part to inventory write-offs.

EBIT moved ahead by a clear 9.2% to €473 million (H1 2016: €433 million). Special charges amounted to €24 million (H1 2016: €64 million).