Bayer: strong growth in Life Sciences

The FINANCIAL — The Bayer Group achieved strong growth in its Life Sciences businesses in the second quarter of 2013, according to Bayer.

"At HealthCare, the launches of new pharmaceutical products are progressing considerably better than expected. And CropScience maintained its gratifying business development in a positive market environment," explained Management Board Chairman Dr. Marijn Dekkers on Wednesday at the presentation of the interim report for the second quarter. By contrast, sales at MaterialScience were slightly down from the prior-year period in a difficult market environment. Earnings of this subgroup were held back by lower selling prices and higher raw material costs. "We are currently maintaining our forecast for 2013, even if this appears increasingly ambitious," said Dekkers.

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Sales of the Bayer Group advanced by 1.9 percent in the second quarter to EUR 10,360 million (Q2 2012: EUR 10,166 million). The currency- and portfolio-adjusted (Fx & portfolio adj.) increase was 4.6 percent. EBIT of the Bayer Group posted a clear 73.9 percent improvement to EUR 1,287 million (Q2 2012: EUR 740 million) due to lower net special items, which amounted to minus EUR 256 million (Q2 2012: minus EUR 762 million). These largely comprised impairment losses on intangible assets and expenses related to restructuring and litigations, mainly in connection with Cipro™. EBIT before special items was up 2.7 percent at EUR 1,543 million (Q2 2012: EUR 1,502 million), while EBITDA before special items posted a 1.2 percent increase to EUR 2,195 million (Q2 2012: EUR 2,169 million). Net income advanced by 74.8 percent to EUR 841 million (Q2 2012: EUR 481 million), and core earnings per share by 6.2 percent to EUR 1.54 (Q2 2012: EUR 1.45), according to Bayer.

Gross cash flow in the second quarter moved ahead by 37.3 percent to EUR 1,680 million (Q2 2012: EUR 1,224 million); net cash flow advanced by 9.6 percent to EUR 1,536 million (Q2 2012: EUR 1,401 million). Net financial debt rose from EUR 7.5 billion on March 31, 2013, to EUR 9.0 billion on June 30, 2013. Cash inflows from operating activities only partly offset the outflows for the dividend payment and the acquisition of Conceptus, according to Bayer.