Bayer posts solid Q1 performance
But pharmaceuticals sales in US affected by generic competition
The Bayer Group reports sales and earnings increases in the first quarter of 2011 across all three divisions, with HealthCare posting a ‘solid’ performance, according to ceo Marijn Dekkers.
Bayer Group total sales rose by 13.2% in the first quarter to €9.4bn (Q1 2010: €8.3bn). Adjusted for currency and portfolio effects, the increase was 10.4%. In spite of this positive trend, the operating result (EBIT) improved by only 4% to €1.1bn. Earnings were reduced by special charges of €442m. Of this figure, the restructuring measures already announced at CropScience and HealthCare accounted for €248m.
HealthCare sales rose by 7.7% in the first quarter to €4.2bn, largely owing to positive developments in the Consumer Health segment, Dekkers said.
The Pharmaceuticals segment raised sales by 4.7% to €2.6bn, with China and Japan making particular gains. However, sales were held back by generic competition for the YAZ oral contraceptives in the US (currency adjusted –18.3% worldwide) and by health system reforms in various countries.
Other top pharmaceutical products were haemophilia drug Kogenate (+13%) and Aspirin Cardio (+18.7%).
Consumer Health segment sales improved by 13.4% to €1.5bn, with all regions contributing to growth. In the non-prescription medicines business (Consumer Care), the analgesics Aspirin and Aleve (naproxen) posted strong gains of 21.8% respectively and sales of the antifungal Canesten expanded by 19.1%.
The Medical Care Division benefited from increased volumes of the Contour line of blood glucose meters (+14.3%).
EBITDA before special items for the HealthCare subgroup rose by 11.4% to €1.1bn. The increase was mainly attributable to the strong business performance of Consumer Health and to positive currency effects.
The company confirmed its outlook for HealthCare in 2011 as a whole, which aims to increase sales by a low- to mid-single-digit percentage after adjusting for currency and portfolio effects and to achieve a small improvement in EBITDA before special items.
In the Pharmaceuticals segment, Bayer does not yet expect sales to resume growing with the market in 2011. The company plans to increase sales by a low- to mid-single-digit percentage after adjusting for currency and portfolio effects, and to raise the EBITDA margin before special items.
In the Consumer Health segment, Bayer anticipates above-market growth in sales after adjusting for currency and portfolio effects and expects sales and EBITDA before special items to increase by mid-single-digit percentages.