The Bayer Group had a strong start to 2015 and once again expanded sales in the first quarter. "At HealthCare we continued to benefit from the positive development of our recently launched pharmaceutical products and the gratifying expansion of business in Consumer Health," Bayer CEO Dr. Marijn Dekkers said on Thursday when the interim report was published. The products newly acquired from Merck & Co., Inc., United States, also contributed to growth at Consumer Care. HealthCare posted a strong increase in earnings. Sales at CropScience slightly exceeded the strong prior-year quarter despite a weaker market environment. Here, however, earnings were down year on year. MaterialScience registered a slight decline in sales as expected on a currency- and portfolio-adjusted basis but raised earnings before special items. "Given the business development in the first quarter and especially in view of the much more favorable exchange rates as of March 31, we are raising our Group guidance for 2015," said Dekkers.
Sales of the Bayer Group moved ahead in the first quarter of 2015 by 14.8 percent to EUR 12,117 million (Q1 2014: EUR 10,555 million). Adjusted for currency and portfolio effects (Fx & portfolio adj.), sales grew by 2.7 percent. EBITDA before special items climbed by 9.6 percent to EUR 3,000 million (Q1 2014: EUR 2,738 million). This good business development was accompanied by higher R&D and selling expenses. Positive currency effects buoyed earnings by about EUR 50 million. EBIT before special items increased by 7.3 percent to EUR 2,242 million (Q1 2014: EUR 2,089 million). On the other hand, EBIT fell by 4.7 percent to EUR 1,998 million (Q1 2014: EUR 2,096 million). Earnings in the first quarter of 2015 were held back by net special charges of EUR 244 million (Q1 2014: net special gains of EUR 7 million) that mainly comprised expenses for the integration of acquired businesses, the consolidation of production sites and additional efficiency improvement measures. Net income came to EUR 1,303 million (Q1 2014: EUR 1,423 million), down 8.4 percent year on year. By contrast, core earnings per share advanced by 7.7 percent to EUR 2.10 (Q1 2014: EUR 1.95).
Gross cash flow, at EUR 2,060 million, was on the level of the prior-year quarter (Q1 2014: EUR 2,048 million). Net cash flow rose sharply to EUR 724 million (Q1 2014: EUR 163 million) due to a reduction in cash tied up in working capital. Net financial debt rose by EUR 1.7 billion against December 31, 2014, to EUR 21.3 billion, mainly on account of negative currency effects.
