Business Development by Segment

Consumer Health

Key Data – Consumer Health

 

 

Q3 2017

 

Q3 2018

 

Change1

 

9M 2017

 

9M 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

1,320

 

1,297

 

−1.7

+3.0

 

4,463

 

4,119

 

−7.7

−0.4

Changes in sales1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

−3.2%

 

+3.5%

 

 

 

 

−2.5%

 

−0.9%

 

 

 

Price

 

+0.3%

 

−0.5%

 

 

 

 

+1.7%

 

+0.5%

 

 

 

Currency

 

−4.5%

 

−4.1%

 

 

 

 

0.0%

 

−7.1%

 

 

 

Portfolio

 

0.0%

 

−0.6%

 

 

 

 

0.0%

 

−0.2%

 

 

 

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

430

 

421

 

−2.1

+2.4

 

1,471

 

1,383

 

−6.0

−1.8

North America

 

537

 

538

 

+0.2

+1.0

 

1,899

 

1,729

 

−9.0

−1.4

Asia / Pacific

 

178

 

188

 

+5.6

+9.3

 

593

 

567

 

−4.4

+0.9

Latin America

 

175

 

150

 

−14.3

+4.2

 

500

 

440

 

−12.0

+5.9

EBITDA1

 

257

 

259

 

+0.8

 

 

948

 

824

 

−13.1

 

Special items1

 

(17)

 

11

 

 

 

 

(32)

 

7

 

 

 

EBITDA before special items1

 

274

 

248

 

−9.5

 

 

980

 

817

 

−16.6

 

EBITDA margin before special items1

 

20.8%

 

19.1%

 

 

 

 

22.0%

 

19.8%

 

 

 

EBIT1

 

155

 

162

 

+4.5

 

 

628

 

530

 

−15.6

 

Special items1

 

(18)

 

9

 

 

 

 

(42)

 

5

 

 

 

EBIT before special items1

 

173

 

153

 

−11.6

 

 

670

 

525

 

−21.6

 

Net cash provided by operating activities

 

200

 

210

 

+5.0

 

 

762

 

531

 

−30.3

 

Third quarter of 2018

Sales

Sales of Consumer Health increased by 3.0% (Fx & portfolio adj.) in the third quarter of 2018, to €1,297 million. All regions contributed to this growth on a currency- and portfolio-adjusted basis. We registered a substantial increase in Asia / Pacific in particular.

Best-Selling Consumer Health Products

 

 

Q3 2017

 

Q3 2018

 

Change1

 

9M 2017

 

9M 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

2

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

Claritin™

 

123

 

113

 

−8.1

−6.7

 

472

 

420

 

−11.0

−3.7

Aspirin™

 

117

 

98

 

−16.2

−11.7

 

338

 

300

 

−11.2

−3.6

Bepanthen™ / Bepanthol™

 

88

 

84

 

−4.5

+2.4

 

283

 

281

 

−0.7

+5.3

Aleve™

 

89

 

88

 

−1.1

−1.0

 

272

 

257

 

−5.5

+1.2

Canesten™

 

66

 

63

 

−4.5

−0.3

 

210

 

184

 

−12.4

−8.4

Coppertone™

 

15

 

10

 

−33.3

−31.3

 

197

 

167

 

−15.2

−6.1

Elevit™

 

51

 

56

 

+9.8

+13.3

 

147

 

160

 

+8.8

+16.2

Dr Scholl’s™2

 

51

 

49

 

−3.9

−4.6

 

157

 

152

 

−3.2

+3.6

Alka-Seltzer™ product family

 

57

 

58

 

+1.8

+1.8

 

171

 

151

 

−11.7

−5.2

One A Day™

 

49

 

52

 

+6.1

+5.5

 

159

 

148

 

−6.9

+0.0

Total

 

706

 

671

 

−5.0

−2.1

 

2,406

 

2,220

 

−7.7

−1.2

Proportion of Consumer Health sales

 

53%

 

52%

 

 

 

 

54%

 

54%

 

 

 

Sales by product

  • Sales of our antihistamine Claritin™ declined, mainly because of a continuing weak season for this market segment in the United States.
  • Sales of our analgesic Aspirin™ were down significantly year on year, due primarily to temporary supply disruptions. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales amounted to €231 million (Q3 2017: €256 million), representing a currency- and portfolio-adjusted decline of 5.6%.
  • Business with our Bepanthen™ / Bepanthol™ brands of wound and skin care products developed positively on a currency- and portfolio-adjusted basis, especially in Europe.
  • We were able to stabilize sales of our Canesten™ skin and intimate health products at the strong prior-year level despite temporary supply disruptions.
  • Sales of our Coppertone™ sunscreen were down sharply at the end of the season, mostly in Brazil from a change in our distribution channels, while persistently intense competitive pressure in the United States also impacted the performance.
  • Business with our prenatal vitamin Elevit™ expanded once again, with the double-digit percentage increase on a currency- and portfolio-adjusted basis driven by continuing strong demand and a product line extension in Asia / Pacific.
  • Our Dr. Scholl’s™ foot care products registered a decline in sales, mainly in the United States.
  • Sales of our Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms increased slightly due to gains in Europe.
  • Sales of our One A Day™ vitamin products were up year on year, particularly in the United States.

Earnings

EBITDA before special items of Consumer Health declined by 9.5% to €248 million in the third quarter of 2018 (Q3 2017: €274 million). Adjusted for negative currency effects of €23 million, earnings were almost level with the prior-year period (−1.1%). Higher volumes, lower selling expenses and a decrease in general administration expenses had a positive impact on earnings. By contrast, prior-period earnings included one-time gains of approximately €30 million that mainly related to the sale of non-core brands.

EBIT increased by 4.5% to €162 million, after net special gains of €9 million (Q3 2017: net special charges of €18 million) primarily resulting from the divestment of the prescription dermatology business. Special charges relating to efficiency improvement measures had an opposing effect.

Special Items1 Consumer Health

 

 

EBIT Q3 2017

EBIT Q3 2018

 

EBIT 9M 2017

EBIT 9M 2018

 

EBITDA Q3 2017

EBITDA Q3 2018

 

EBITDA 9M 2017

EBITDA 9M 2018

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Divestments

 

33

 

33

 

33

 

33

Restructuring

 

(18)

(22)

 

(42)

(26)

 

(17)

(20)

 

(32)

(24)

Other

 

(2)

 

(2)

 

(2)

 

(2)

Total special items

 

(18)

9

 

(42)

5

 

(17)

11

 

(32)

7

First nine months of 2018

Sales

Sales were level year on year in the first nine months of 2018, at €4,119 million (Fx & portfolio adj. −0.4%). Positive developments in Latin America and Asia / Pacific were nearly sufficient to offset the sales declines in Europe / Middle East / Africa and North America on a currency- and portfolio-adjusted basis.

Earnings

EBITDA before special items fell by 16.6% in the first nine months of 2018, to €817 million (9M 2017: €980 million). Adjusted for negative currency effects in the amount of €70 million, earnings were down by 9.5%. The decrease is primarily due to a decline in volumes and lower one-time gains, especially those arising from the sale of non-core brands in the prior-year period.

EBIT was down 15.6% at €530 million (9M 2017: €628 million), after special gains of €5 million (9M 2017: special charges of €42 million) mainly resulting from the divestment of the prescription dermatology business. Special charges relating to efficiency improvement measures had an opposing effect.

Compare to Last Year