Bayer Crop Science sales decreased to EUR 9.6 bln
Sales in Bayer agriculture business Crop Science moved back by 2.2% to EUR 9.577 billion, the company reports.
This was mainly due to the situation in the Brazilian crop protection business, where volumes were held back by unexpectedly high inventories in the market.
"We have initiated a number of measures to normalize this situation. For example, we took back crop protection products from our distribution partners and concluded new agreements at amended terms," said Management Board Chairman Werner Baumann. "We are now seeing that these measures are taking effect."
When the Brazilian business is excluded, sales of Crop Science rose by 3.0%. Sales declined by 18.0% in Latin America but grew strongest, by 5.8%, in North America, followed by Asia/Pacific and Europe/Middle East/Africa.
The Seeds business (seed and plant traits) posted positive development, with sales gains of 9.1%. Environmental Science, the business with products for nonagricultural applications, saw sales increase by an even more substantial 14.0%. By contrast, there was a decline of 5.3% at Crop Protection. Fungicides (minus 9.9%) and Insecticides (minus 6.1%) saw disproportionate declines in sales — unlike Herbicides and SeedGrowth (seed treatment products), where the declines were much less marked at 1.6 and 0.3%, respectively.
"EBITDA before special items of Crop Science declined by 15.6% to EUR 2.043 billion. This decline is largely attributable to the situation in Brazil, which resulted in lower selling prices and volumes. Negative currency effects of EUR 63 million were an additional factor," the report says.
Previously it was reported that Bayer entered exclusive talks with BASF on the sale of its Nunhems vegetable seeds unit to address antitrust regulators’ concerns over its planned merger with Monsanto.