Business Development by Segment

Consumer Health

Key Data – Consumer Health

 

 

Q2 2017

 

Q2 2018

 

Change1

 

H1 2017

 

H1 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

 

1,542

 

1,413

 

−8.4

−1.4

 

3,143

 

2,822

 

−10.2

−1.8

Changes in sales1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

−4.6%

 

−2.2%

 

 

 

 

−2.2%

 

−2.8%

 

 

 

Price

 

+2.4%

 

+0.8%

 

 

 

 

+2.4%

 

+1.0%

 

 

 

Currency

 

+1.5%

 

−7.0%

 

 

 

 

+2.1%

 

−8.4%

 

 

 

Portfolio

 

0.0%

 

0.0%

 

 

 

 

0.0%

 

0.0%

 

 

 

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

503

 

466

 

−7.4

−3.4

 

1,041

 

962

 

−7.6

−3.5

North America

 

661

 

595

 

−10.0

−2.7

 

1,362

 

1,191

 

−12.6

−2.4

Asia / Pacific

 

195

 

202

 

+3.6

+8.2

 

415

 

379

 

−8.7

−2.7

Latin America

 

183

 

150

 

−18.0

−1.1

 

325

 

290

 

−10.8

+6.8

EBITDA1

 

307

 

257

 

−16.3

 

 

691

 

565

 

−18.2

 

Special items1

 

(7)

 

1

 

 

 

 

(15)

 

(4)

 

 

 

EBITDA before special items1

 

314

 

256

 

−18.5

 

 

706

 

569

 

−19.4

 

EBITDA margin before special items1

 

20.4%

 

18.1%

 

 

 

 

22.5%

 

20.2%

 

 

 

EBIT1

 

195

 

157

 

−19.5

 

 

473

 

368

 

−22.2

 

Special items1

 

(15)

 

1

 

 

 

 

(24)

 

(4)

 

 

 

EBIT before special items1

 

210

 

156

 

−25.7

 

 

497

 

372

 

−25.2

 

Net cash provided by operating activities

 

297

 

148

 

−50.2

 

 

562

 

321

 

−42.9

 

Second quarter of 2018

Sales

Sales of Consumer Health declined slightly in the second quarter of 2018, falling by 1.4% (Fx & portfolio adj.) to €1,413 million. This was primarily due to a decline in business in Europe / Middle East / Africa and weaker business performance in North America. Business picked up in Asia / Pacific, returning to growth in the second quarter.

Best-Selling Consumer Health Products

 

 

Q2 2017

 

Q2 2018

 

Change1

 

H1 2017

 

H1 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™

 

159

 

140

 

−11.9

−5.7

 

349

 

307

 

−12.0

−2.7

Aspirin™

 

104

 

93

 

−10.6

−2.2

 

221

 

202

 

−8.6

+0.7

Bepanthen™ / Bepanthol™

 

100

 

97

 

−3.0

+2.7

 

195

 

197

 

+1.0

+6.6

Aleve™

 

101

 

97

 

−4.0

+3.3

 

183

 

169

 

−7.7

+2.3

Coppertone™

 

80

 

71

 

−11.3

−5.1

 

182

 

157

 

−13.7

−4.2

Canesten™

 

74

 

69

 

−6.8

−3.4

 

144

 

121

 

−16.0

−12.0

Elevit™

 

44

 

54

 

+22.7

+31.3

 

96

 

104

 

+8.3

+17.7

Dr Scholl’s™2

 

66

 

54

 

−18.2

−9.8

 

107

 

103

 

−3.7

+7.6

One A Day™

 

55

 

50

 

−9.1

−1.8

 

110

 

96

 

−12.7

−2.4

Alka-Seltzer™ product family

 

44

 

41

 

−6.8

+0.5

 

114

 

93

 

−18.4

−8.7

Total

 

827

 

766

 

−7.4

−0.6

 

1,701

 

1,549

 

−8.9

−0.2

Proportion of Consumer Health sales

 

54%

 

54%

 

 

 

 

54%

 

55%

 

 

 

Sales by product

  • The decline in sales of our antihistamine Claritin™ was driven by a change in ordering behavior in China and a significantly late start to the season in the United States.
  • Sales of our analgesic Aspirin™ were down slightly year on year, due primarily to anticipated temporary supply disruptions. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales amounted to €232 million (Q2 2017: €252 million), representing a currency- and portfolio-adjusted decline of 2.7%.
  • We posted a slight increase in sales of our Bepanthen™ / Bepanthol™ wound and skin care products, thanks mainly to growth in Europe.
  • Business with our analgesic Aleve™ expanded, benefiting especially from a product line extension in the United States.
  • Sales of our Coppertone™ sunscreen were down, with the chief factors here being the late start to the suncare season and the persistently intensive competitive pressure in the United States.
  • We registered a decline in sales of our Canesten™ skin and intimate health products that was primarily attributable to anticipated temporary supply disruptions.
  • We once again significantly expanded business with our prenatal vitamin Elevit™ thanks to continuing strong demand in Asia / Pacific.
  • Our Dr. Scholl’s™ foot care products registered a substantial decline in sales, especially in the United States, where we had benefited in the prior-year quarter from inventory building by retailers. Overall, the repositioning of this brand in the United States is progressing positively.
  • Sales of our One A Day™ vitamin product decreased slightly.
  • Sales of the Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms came in at the prior-year level.

Earnings

EBITDA before special items of Consumer Health declined by a substantial 18.5% to €256 million in the second quarter of 2018 (Q2 2017: €314 million). Adjusted for negative currency effects in the amount of €12 million, earnings were down by 14.6%. This decline is predominantly attributable to lower volumes and a higher cost of goods sold, in part due to a shift in the product mix. Earnings included one-time gains from the sale of a noncore brand in the amount of €14 million (Q2 2017: €0 million).

EBIT decreased by 19.5% to €157 million, after special gains of €1 million (Q2 2017: special charges of €15 million).

Special Items1 Consumer Health

 

 

EBIT Q2 2017

EBIT Q2 2018

 

EBIT H1 2017

EBIT H1 2018

 

EBITDA Q2 2017

EBITDA Q2 2018

 

EBITDA H1 2017

EBITDA H1 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.”

Restructuring

 

(15)

1

 

(24)

(4)

 

(7)

1

 

(15)

(4)

Total special items

 

(15)

1

 

(24)

(4)

 

(7)

1

 

(15)

(4)

First half of 2018

Sales

Sales of Consumer Health fell slightly in the first six months of 2018, decreasing by 1.8% (Fx & portfolio adj.) to €2,822 million. The declines in Europe / Middle East / Africa, Asia / Pacific and North America were not offset by the positive business performance in Latin America.

Earnings

EBITDA before special items receded by 19.4% in the first half of 2018, to €569 million (H1 2017: €706 million). Adjusted for negative currency effects in the amount of €47 million, earnings were down by 12.7%. The decline is primarily due to lower volumes. In addition, one-time gains from the sale of noncore brands were significantly lower than in the prior-year period.

EBIT decreased by 22.2% to €368 million (H1 2017: €473 million). Special charges amounted to €4 million (H1 2017: €24 million) and pertained to efficiency improvement measures.

Compare to Last Year