MOSCOW (MRC) -- The Bayer Group posted further growth in the second quarter of 2016, said the company on its site.
"Our Life Science businesses recorded encouraging sales and earnings growth overall," said CEO Werner Baumann when he presented the interim report for the second quarter on Wednesday. At Pharmaceuticals, Bayer benefited from the continued strong development of the recently launched products. Consumer Health increased sales, while EBITDA before special items receded. Sales of Crop Science held steady at the prior-year level despite a continuingly difficult market environment, while earnings decreased. EBITDA before special items at Animal Health declined despite sales growth. Covestro registered a substantial increase in EBITDA before special items, while sales fell as expected. "We remain confident about the year as a whole and are raising the Group forecast," said Baumann.
Sales of the Bayer Group fell by 1.4 percent to EUR 11,833 million (Q2 2015: EUR 12,003 million) on a reported basis in the second quarter of 2016, but increased by 2.3 percent after adjusting for currency and portfolio effects (Fx & portfolio adj.). Despite negative currency effects of EUR 90 million, dissynergies from the Covestro IPO and the divestiture of Diabetes Care, Group EBITDA before special items improved by 5.7 percent to EUR 3,054 million (Q2 2015: EUR 2,888 million). EBIT advanced by 17.3 percent to EUR 2,138 million (Q2 2015: EUR 1,823 million) after special charges of EUR 104 million (Q2 2015: EUR 255 million). These mainly comprised expenditures for efficiency improvement measures, costs for the integration of acquired businesses and expenses in connection with the realignment of the Bayer Group. Net income rose by 18.6 percent to EUR 1,380 million (Q2 2015: EUR 1,164 million). Core earnings per share from continuing operations advanced by 4.0 percent to EUR 2.07 (Q2 2015: EUR 1.99).
Gross cash flow from continuing operations climbed by a substantial 9.3 percent to EUR 2,366 million (Q2 2015: EUR 2,165 million). Despite an increase in cash tied up in working capital, net cash flow (total) edged forward by 1.2 percent to EUR 1,982 million (Q2 2015: EUR 1,959 million). Net financial debt increased by EUR 1.5 billion compared with March 31, 2016, to EUR 17.8 billion on June 30, 2016, due mainly to the dividend payment.
As MRC informed earlier, Monsanto Co., the world’s largest seed company, said Bayer AG’s latest USD55 billion takeover offer is "financially inadequate" and doesn’t ensure a deal would be completed.
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen.
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