Second Quarter of 2017

Bayer: Group performance matches prior year despite declines at Crop Science

  • Group sales increase by 1.9% (Fx & portfolio adj.) to €12.2 billion
  • EBITDA before special items level with the prior year, at €3.1 billion (+0.1%)
  • Pharmaceuticals posts strong increase in earnings and margins
  • Brazil business weighs on Crop Science
  • Consumer Health encounters difficult market environment in the United States
  • Significant increase in sales and earnings at Covestro
  • Net income €1.2 billion (−11.3%)
  • Core earnings per share €1.81 (−12.6%)
  • Monsanto acquisition on track
  • Group outlook for 2017 adjusted

Economic Position of the Bayer Group

The Bayer Group increased sales by 1.9% (Fx & portfolio adj.) to €12.2 billion in the second quarter of 2017. EBITDA before special items matched the prior-year period, coming in at €3.1 billion (+0.1%). We achieved encouraging growth in earnings and margins at Pharmaceuticals and Animal Health. Business declined at Consumer Health, in particular due to the difficult market environment in the United States. Against the backdrop of high inventories in Brazil, the world’s second-largest agriculture market, we posted substantial declines in sales and earnings at Crop Science. As such, sales and earnings of our Life Science businesses were down. Covestro once again posted substantial growth in sales and earnings.

Key Events

On June 7, 2017, Bayer reduced its directly held interest in Covestro from 53.3% to 44.9%, by placing 17.25 million shares at a price of €62.25 per share. Bayer AG’s interest in Covestro was reduced by a further 4 percentage points through the contribution of Covestro shares to the Bayer Pension Trust e. V. In addition, Bayer has issued €1 billion in bonds maturing in 2020 that can be redeemed in cash, Covestro shares or a combination of the two. Covestro continues to be fully consolidated in Bayer’s financial statements, as, even with these transactions having been completed, Bayer will still hold the de facto majority at a Covestro stockholders’ meeting.

On June 30, 2017, Bayer filed an application with the European Commission seeking approval for the planned acquisition of Monsanto, representing a further significant milestone in the transaction.

Bayer also announced on June 30, 2017, that it was revising its annual guidance.