Animal Health

Key Data – Animal Health

 

 

Q3 2015

Q3 2016

 

Change

 

9M
2015

9M
2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

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

1

For definition see “Calculation of EBIT(DA) Before Special Items.”

2

For definition see “Statements of Cash Flows.”

Sales

 

357

360

 

+0.8

+2.5

 

1,171

1,194

 

+2.0

+5.2

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

–0.3%

+0.8%

 

 

 

 

+4.3%

+3.5%

 

 

 

Price

 

+2.1%

+1.7%

 

 

 

 

+0.5%

+1.7%

 

 

 

Currency

 

+6.4%

–1.7%

 

 

 

 

+10.2%

–3.2%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

93

91

 

–2.2

+3.2

 

323

333

 

+3.1

+6.8

North America

 

140

137

 

–2.1

–2.1

 

465

492

 

+5.8

+6.2

Asia / Pacific

 

71

83

 

+16.9

+14.1

 

218

221

 

+1.4

+3.2

Latin America / Africa / Middle East

 

53

49

 

–7.5

–1.9

 

165

148

 

–10.3

+1.8

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

79

88

 

+11.4

 

 

284

309

 

+8.8

 

Special items

 

(5)

(1)

 

 

 

 

(22)

(2)

 

 

 

EBITDA before special items1

 

84

89

 

+6.0

 

 

306

311

 

+1.6

 

EBITDA margin before special items1

 

23.5%

24.7%

 

 

 

 

26.1%

26.0%

 

 

 

EBIT

 

70

81

 

+15.7

 

 

240

288

 

+20.0

 

Special items

 

(7)

(1)

 

 

 

 

(45)

(2)

 

 

 

EBIT before special items1

 

77

82

 

+6.5

 

 

285

290

 

+1.8

 

Gross cash flow2

 

53

60

 

+13.2

 

 

208

215

 

+3.4

 

Net cash flow2

 

100

80

 

–20.0

 

 

305

108

 

–64.6

 

Third quarter of 2016

Sales

Sales of Animal Health in the third quarter of 2016 rose by 2.5% (Fx & portfolio adj.) to €360 million. Positive development was noted especially in the Asia / Pacific region. We also recorded sales increases in Europe, while business in North America declined slightly.

Best-Selling Animal Health Products

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Fx adj. = currency-adjusted

Advantage™ product family

 

130

128

 

–1.5

+0.9

 

443

433

 

–2.3

.

Seresto™

 

22

25

 

+13.6

+19.2

 

98

146

 

+49.0

+52.3

Drontal™ product family

 

31

33

 

+6.5

+9.5

 

92

97

 

+5.4

+8.7

Baytril™

 

30

27

 

–10.0

–10.6

 

87

79

 

–9.2

–6.6

Total

 

213

213

 

.

+2.4

 

720

755

 

+4.9

+7.4

Proportion of Animal Health sales

 

60%

59%

 

 

 

 

61%

63%

 

 

 

Sales by product

  • Sales of our Advantage™ family of flea, tick and worm control products were level with the prior-year quarter.
  • Business with our Seresto™ flea and tick collar developed positively in all regions. We recorded significant gains in the United States and other markets.
  • Our Drontal™ line of wormers benefited primarily from higher volumes in the United Kingdom and the United States.
  • Sales of our antibiotic Baytril™ fell in the United States and Europe because of a weaker market environment overall and generic competition.

Earnings

EBITDA before special items of Animal Health increased by 6.0% in the third quarter of 2016 to €89 million (Q3 2015: €84 million), due especially to volume and price increases and to lower selling expenses. These stood against an increase in the cost of goods sold and in research and development expenses.

EBIT advanced by a significant 15.7% to €81 million after special charges of €1 million (Q3 2015: €7 million).

First nine months of 2016

Sales

Sales of Animal Health rose by 5.2% (Fx & portfolio adj.) in the first nine months of 2016 to €1,194 million. The strongest growth was recorded in the United States and Europe.

Earnings

EBITDA before special items advanced by 1.6% in the first nine months of 2016 to €311 million (9M 2015: €306 million). Higher volumes and prices were partly offset by increases in selling expenses and the cost of goods sold as well as a currency effect of minus €10 million.

EBIT of Animal Health rose by 20.0% to €288 million (9M 2015: €240 million) after special charges of €2 million (9M 2015: €45 million).