Bayer Group AG has achieved strong performance during the year ended December 2007 with inclusion of the acquired business of Schering AG, Germany for the full year. The Group's net profit increased sharply by 179.9 per cent to Euro 4,711 million from Euro 1,683 million in the previous year. Its net sales increased by 11.8 per cent to Euro 32.385 million from Euro 28,956 million. With better growth in profitability, the management stepped up dividend to Euro 1.35 per share, a growth of 35 per cent.
Werner Wenning, chairman, said, "2007 was Bayer's most successful year to date. Our operating performance exceeded both the previous year's record levels and the earnings targets we had set for 2007." Earnings before interest, taxes, depreciation and amortization and before special items increased by 21.4 per cent to Euro 6,777 million from Euro 5,584 million in the previous year. The underlying EBDITA margin was 20.9 per cent as against 19.3 per cent in the last year.
Bayer HealthCare achieved the strongest growth among the three subgroups in 2007. Its sales rose by 26.3 per cent to Euro 14,807 million from Euro 11,724 million. The figures include the acquired Schering business on a full-year basis for the first time. "As expected, Pharmaceuticals expanded in line with the market, while in Consumer Health all divisions actually grew faster than the market," Winning added.
Sales of the pharmaceuticals segment climbed by 37.3 per cent to Euro 10,267 million. The oral contraceptives Yasmin, YAZ and Yasminelle saw currency-adjusted sales climb by 37 per cent pro forma in 2007, with sales of this product family passing the Euro 1 billion mark. Sales of the multiple sclerosis treatment Betaferon also exceeded Euro 1 billion for the first time. 'Our cancer drug Nexavar developed particularly well. Sales of this product more than doubled in only the second year after its introduction, to Euro 270 million," Wenning reported.
The sales of Consumer Health segment improved to Euro 4,540 million from Euro 4,246 million. Seven of this segment's ten best-selling products posted double-digit sales growth.
Sales of the diabetes care division grew by a particularly strong 18 per cent, thanks mainly to outstanding performance o the Ascensia Contour blood glucose monitoring system.
EBDITA before special items jumped by 45.1 per cent to Euro 3,792 million as against Euro 2,613 million in the previous year. Earnings in 2007 were diminished by a number of special items totalling minus Euro 1,133 million as compared to minus Euro 717 million on aggregate. The acquisition and integration of Schering accounted for a large proportion of these items at nearly Euro 700 million.
To safeguard long-term growth, Bayer plans to spend Euro 1.7 billion on property, plant and equipment in 2008. Research and development spending is expected to increase to Euro 2.8 billion. "This is once again the largest R&D budget of any German company in our industry. Wenning emphasized.