Media Coverage

Bayer begins 2017 with notable 8% sales jump


Apr 27, 2017 - Animal Pharm

By Joseph Harvey
Animal Pharm
April 27,2017

Bayer Animal Health has started 2017 in strong fashion with first-quarter sales increasing 8% to €440 million ($480 million).

Much in the same way Elanco has recently prospered following an acquisition from the Boehringer Ingelheim Vetmedica portfolio, Bayer has done the same. Bayer's first quarter benefited from US sales of the Cydectin product portfolio that Bayer acquired from Boehringer.

Over the three months, Bayer battled competitive pressure and a "shift in demand patterns" for its leading line of Advantage antiparastic products. Revenues from this portfolio fell 8% to €136m.

However, the company was able to counteract this decline with a considerable increase in sales of its Seresto flea and tick collar. This product saw revenues improve 41% to €76m due to higher sales in the US and Europe.

The Drontal product family achieved 9% sales growth to €35m after growth in the US, while Baytril revenues dropped 4% to €27m following generic competition in the US and Europe.

The Advantage, Seresto, Drontal and Baytril brands are Bayer's top-selling products. However, the company is becoming slightly less reliant on these big brands. In Q1 last year these four product lines represented 64% of sales – this quarter they made up 62% of turnover.

Overall sales in North America were up 9% to €177m, while revenues from the Europe/Middle East/Africa region climbed 4% to €144m. Amongst international markets, Bayer said the development of business in the Asia Pacific region was particularly encouraging in Q1 as sales improved 13% to €76m. Revenues were up 5% to €43m in Latin America.

The firm's first-quarter EBITDA before special items increased by around 11% to €135m. Bayer noted: "Positive earnings contributions resulted from both price increases, as well as the Cydectin business that Bayer acquired. These stood against an increase in selling expenses and R&D expenditures."

This first-quarter performance is a marked improvement over Bayer's Q4 and full year 2016, which witnessed sales growth of 3% and 2% respectively.

Bayer begins 2017 with notable 8% sales jump

Bayer Animal Health has started 2017 in strong fashion with first-quarter sales increasing 8% to €440 million ($480 million).

Much in the same way Elanco has recently prospered following an acquisition from the Boehringer Ingelheim Vetmedica portfolio, Bayer has done the same. Bayer's first quarter benefited from US sales of the Cydectin product portfolio that Bayer acquired from Boehringer.

Over the three months, Bayer battled competitive pressure and a "shift in demand patterns" for its leading line of Advantage antiparastic products. Revenues from this portfolio fell 8% to €136m.

However, the company was able to counteract this decline with a considerable increase in sales of its Seresto flea and tick collar. This product saw revenues improve 41% to €76m due to higher sales in the US and Europe.

The Drontal product family achieved 9% sales growth to €35m after growth in the US, while Baytril revenues dropped 4% to €27m following generic competition in the US and Europe.

The Advantage, Seresto, Drontal and Baytril brands are Bayer's top-selling products. However, the company is becoming slightly less reliant on these big brands. In Q1 last year these four product lines represented 64% of sales – this quarter they made up 62% of turnover.

Overall sales in North America were up 9% to €177m, while revenues from the Europe/Middle East/Africa region climbed 4% to €144m. Amongst international markets, Bayer said the development of business in the Asia Pacific region was particularly encouraging in Q1 as sales improved 13% to €76m. Revenues were up 5% to €43m in Latin America.

The firm's first-quarter EBITDA before special items increased by around 11% to €135m. Bayer noted: "Positive earnings contributions resulted from both price increases, as well as the Cydectin business that Bayer acquired. These stood against an increase in selling expenses and R&D expenditures."

This first-quarter performance is a marked improvement over Bayer's Q4 and full year 2016, which witnessed sales growth of 3% and 2% respectively.

Reprinted with permission of Animal Pharm News 

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