Crop Science

Key Data – Crop Science

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

2015 figures restated; 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

 

2,081

2,057

 

–1.2

0.0

 

7,723

7,511

 

–2.7

+0.6

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+4.3%

–4.0%

 

 

 

 

0.0%

–1.6%

 

 

 

Price

 

–2.7%

+4.0%

 

 

 

 

+0.6%

+2.2%

 

 

 

Currency

 

+7.4%

–1.2%

 

 

 

 

+7.4%

–3.4%

 

 

 

Portfolio

 

+0.6%

0.0%

 

 

 

 

+0.7%

+0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

450

463

 

+2.9

+5.8

 

2,629

2,576

 

–2.0

+1.9

North America

 

351

368

 

+4.8

+5.7

 

2,132

2,089

 

–2.0

+0.9

Asia / Pacific

 

363

367

 

+1.1

+1.1

 

1,165

1,164

 

–0.1

+2.7

Latin America / Africa / Middle East

 

917

859

 

–6.3

–5.3

 

1,797

1,682

 

–6.4

–2.5

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

313

247

 

–21.1

 

 

1,986

1,966

 

–1.0

 

Special items

 

(3)

(71)

 

 

 

 

(73)

(104)

 

 

 

EBITDA before special items1

 

316

318

 

+0.6

 

 

2,059

2,070

 

+0.5

 

EBITDA margin before special items1

 

15.2%

15.5%

 

 

 

 

26.7%

27.6%

 

 

 

EBIT

 

187

135

 

–27.8

 

 

1,603

1,602

 

–0.1

 

Special items

 

(4)

(71)

 

 

 

 

(79)

(104)

 

 

 

EBIT before special items1

 

191

206

 

+7.9

 

 

1,682

1,706

 

+1.4

 

Gross cash flow2

 

213

187

 

–12.2

 

 

1,433

1,421

 

–0.8

 

Net cash flow2

 

603

1,027

 

+70.3

 

 

574

1,449

 

+152.4

 

Third quarter of 2016

Sales

In the third quarter of 2016, Crop Science posted sales of €2,057 million (Fx & portfolio adj. 0.0%). Business at Crop Protection / Seeds was steady overall at the prior-year level despite an ongoing weak market environment, particularly in Latin America. Sales of Environmental Science developed very encouragingly.

Sales by Business Unit

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

2015 figures restated; Fx & p adj. = currency- and portfolio-adjusted

1

Environmental Science now comprises only the business for professional users. The key data and prior-year figures are restated accordingly

Crop Protection / Seeds

 

1,957

1,911

 

–2.4

–1.1

 

7,318

7,093

 

–3.1

+0.3

Crop Protection

 

1,833

1,759

 

–4.0

–2.6

 

6,262

5,996

 

–4.2

–0.9

Herbicides

 

487

480

 

–1.4

–1.0

 

2,180

2,094

 

–3.9

–0.4

Fungicides

 

577

615

 

+6.6

+8.1

 

2,234

2,282

 

+2.1

+5.4

Insecticides

 

471

385

 

–18.3

–16.8

 

1,166

971

 

–16.7

–14.1

SeedGrowth

 

298

279

 

–6.4

–3.7

 

682

649

 

–4.8

–1.3

Seeds

 

124

152

 

+22.6

+21.6

 

1,056

1,097

 

+3.9

+7.9

Environmental Science1

 

124

146

 

+17.7

+17.7

 

405

418

 

+3.2

+6.2

Sales by region

  • Sales in Europe climbed to €463 million (Fx adj. +5.8%). Following a weak prior-year quarter, Fungicides developed especially well with double-digit growth. We also considerably improved sales at Herbicides and business with oilseed rape / canola seed. By contrast, we registered a decline at SeedGrowth. Business at Environmental Science developed very positively.
  • Sales in North America advanced by 5.7% (Fx adj.) to €368 million. We achieved strong double-digit sales growth in the Seeds unit, particularly for soybean seeds. At Crop Protection, business with herbicides for application in corn developed very positively. By contrast, there were considerable sales declines at Fungicides and Insecticides. Sales at Environmental Science increased by a double-digit percentage.
  • In the Asia / Pacific region, sales edged forward to €367 million (Fx adj. +1.1%). A gratifying, weather-related increase in sales at Fungicides more than offset declines at Herbicides and Insecticides. Sales at Seeds came in well below the prior-year quarter. Environmental Science developed very positively.
  • Sales in the Latin America / Africa / Middle East region declined by 5.3% (Fx adj.) to €859 million. We again registered a substantial decrease in sales in Brazil, due to the difficult market and liquidity situation. Business contracted at both Insecticides and Herbicides. By contrast, there was an increase in sales at Fungicides, primarily with products for use in soybeans and corn. Business with soybean seeds developed very encouragingly. Environmental Science also grew business substantially.

Earnings

EBITDA before special items of Crop Science increased by 0.6% to €318 million in the third quarter of 2016 (Q3 2015: €316 million). Higher selling prices and a positive currency effect of around €80 million stood against lower volumes, higher write-downs on receivables and higher research and development expenses, among other things.

EBIT moved back by 27.8% to €135 million after special charges of €71 million (Q3 2015: €4 million), largely in connection with the agreed acquisition of Monsanto and efficiency improvement measures.

First nine months of 2016

Sales

Sales of Crop Science in the first nine months of 2016 were level year on year at €7,511 million (Fx & portfolio adj. +0.6%) despite the difficult market environment. At Crop Protection, higher sales at Fungicides were offset by a considerable decline at Insecticides and slightly lower sales at SeedGrowth. We expanded business at Seeds and Environmental Science. Sales increased slightly in the Asia / Pacific and Europe regions, whereas business remained at the prior-year level in North America and declined slightly in Latin America / Africa / Middle East.

Earnings

EBITDA before special items of Crop Science in the first nine months of 2016 was level year on year at €2,070 million (+0.5%; 9M 2015: €2,059 million). Higher selling prices and a positive currency effect of around €60 million stood against lower volumes, higher write-downs on receivables and higher research and development expenses, among other things.

EBIT decreased by only a slight 0.1% to €1,602 million after special charges of €104 million (9M 2015: €79 million), largely in connection with the agreed acquisition of Monsanto and efficiency improvement measures.