The Bayer Group continued its positive business momentum in the third quarter of 2013, with substantial contributions from the Life Science businesses HealthCare and CropScience.
"HealthCare registered encouraging growth, largely due to the outstanding sales performance for our new pharmaceutical products," Bayer Management Board Chairman Dr. Marijn Dekkers explained when the interim report was released on Thursday.
CropScience benefited from a continuing favorable market environment and a good start to the season in Latin America, he said. At MaterialScience, sales (after adjusting for currency and portfolio effects) and earnings were level with the prior-year quarter in a persistently difficult market environment. "We are maintaining our guidance for the Group for 2013, although it is increasingly ambitious," said Dekkers.
Reported sales of the Bayer Group were level year on year (minus 0.2 percent) at EUR 9,643 million (Q3 2012: EUR 9,661 million). Adjusted for currency and portfolio effects (Fx & portfolio adj.), sales grew by 6.0 percent. EBIT improved by a substantial 47.5 percent to EUR 1,221 million (Q3 2012: EUR 828 million) due in part to a drop in net special charges to EUR 99 million (Q3 2012: EUR 356 million). The special charges largely comprised expenses for restructuring and the integration of acquired businesses. EBIT before special items rose by 11.5 percent to EUR 1,320 million (Q3 2012: EUR 1,184 million). EBITDA before special items increased by 7.7 percent to EUR 1,984 million (Q3 2012: EUR 1,842 million) despite negative currency effects of about EUR 130 million. Net income advanced by 42.1 percent against the prior-year period to EUR 733 million (Q3 2012: EUR 516 million), while core earnings per share rose by 8.5 percent to EUR 1.27 (Q3 2012: EUR 1.17).
Gross cash flow moved ahead by 35.9 percent to EUR 1,367 million (Q3 2012: EUR 1,006 million), mainly as a result of the significant improvement in EBIT. Net cash flow fell by 13.0 percent to EUR 1,728 million (Q3 2012: EUR 1,986 million) because less working capital was released than in the prior-year quarter. Net financial debt declined from EUR 9.0 billion on June 30, 2013, to EUR 7.7 billion on September 30, 2013, largely as a result of cash inflows from operating activities.
