Sales of the Bayer Group rose by 5.3 percent in the first quarter to EUR 8,316 million (Q1 2009: EUR 7,895 million). Adjusted for currency and portfolio effects, business grew by 6.2 percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) - before special items - expanded by 13.2 percent to EUR 1,918 million (Q1 2009: EUR 1,695 million). The EBITDA margin before special items climbed to 23.1 percent (Q1 2009: 21.5 percent). The operating result (EBIT) before special items improved by 25.3 percent to EUR 1,274 million (Q1 2009: EUR 1,017 million).
The Bayer Group started off 2010 with strong sales and earnings growth. "Bayer is well on track - and we plan to grow again this year," said Werner Wenning, Chairman of the Board of Management, when the first-quarter report was published on Thursday. MaterialScience posted a clear recovery in an increasingly stabilizing market environment, achieving better-than-expected sales growth against the very weak prior-year quarter. While HealthCare saw a slight improvement in sales and earnings, the CropScience business weakened distinctly in the first quarter against the record level of the prior-year period. This was due to the general market trend and a late start to the season caused by the weather. "We remain confident for 2010 overall and are raising the outlook for the Bayer Group," Wenning said.
Solid quarter for HealthCare
Sales of the HealthCare subgroup rose by 0.7 percent in the first quarter, to EUR 3,869 million (Q1 2009: EUR 3,843 million). The currency- and portfolio-adjusted (Fx & portfolio adj.) increase was 2.6 percent. "This growth was due primarily to the pleasing business trend in the Consumer Health segment," Wenning explained.
Sales of the Pharmaceuticals segment receded by 2.2 percent to EUR 2,531 million, but moved forward by 0.6 percent on a currency- and portfolio-adjusted basis. Business expanded in the North America and Asia/Pacific regions, but declined in Europe. The highest growth rates among our top products were posted by the hormone-releasing intrauterine device Mirena® with a currency-adjusted (Fx adj.) 16.5 percent increase and the cancer drug Nexavar® with 16.0 percent (Fx adj.). Positive performances were also registered by the antihypertensive drug Kinzal®/Pritor® with plus 12.6 percent (Fx adj.) and the antibiotic Avalox®/Avelox® with plus 8.0 percent (Fx adj.). Business with the YAZ® family of oral contraceptives declined by 10.2 percent (Fx adj.). Demand for this product in the United States suffered particularly from the discussion surrounding the thrombosis risk of contraceptives containing drospirenone. However, Bayer continues to believe that the risk profile is comparable to that of other combination oral contraceptives. This view is supported primarily by the results of two prospective observational studies in the U.S. and Europe with more than 120,000 users. Sales of the multiple sclerosis drug Betaferon®/Betaseron® fell by 5.0 percent (Fx adj.), mainly because of a decline in Europe.
Sales in the Consumer Health segment advanced by 6.5 percent (Fx & portfolio adj. 6.8 percent) to EUR 1,338 million, with all divisions contributing to this growth. Business developed particularly well in the United States, where demand was boosted by the gradual recovery in the economy. In the non-prescription medicines business (Consumer Care), particularly strong growth was registered by the analgesic Aleve®/naproxen with plus 40.9 percent (Fx adj.) and the multivitamin product One-A-Day® with plus 22.4 percent (Fx adj.). Business with the Contour® line of blood glucose meters - the top product of the Medical Care Division - improved by 4.6 percent (Fx adj.).
First-quarter EBITDA before special items of HealthCare climbed by 1.7 percent to EUR 1,079 million (Q1 2009: EUR 1,061 million). This increase was attributable to a substantial rise in earnings in the Consumer Health segment, whereas earnings of Pharmaceuticals declined due to a portfolio change and higher expenditures for research and development.
For further information, visit:
http://www.bayer.com