Bayer Group's net sales increased by 2.4 per cent to EUR 8,536 million (Q1 2007: EUR 8,335 million). This corresponds to a 6.9 per cent improvement after adjusting for currency and portfolio effects. The main contributions to this improvement came from CropScience with a 14.8 per cent increase and HealthCare with 8.6 per cent. Sales of MaterialScience were at the previous year's level (0.6per cent).
The Bayer Group posted excellent results in the first quarter of 2008. "We carried over the previous year's positive trend in both sales and earnings, and this strengthens our confidence for the year as a whole," Bayer AG management board chairman Werner Wenning explained.
Earnings before interest, taxes, depreciation and amortization (EBITDA) and before special items rose by 9.8 per cent in the first quarter to EUR 2,185 million (Q1 2007: EUR 1,990 million) despite adverse shifts in currency parities. "Our first-quarter performance was ahead of our expectations," said Wenning. The operating result (EBIT) before special items climbed by 8.9 per cent to EUR 1,497 million (Q1 2007: EUR 1,375 million).
Sales and earnings of the HealthCare subgroup rose considerably. "Bayer HealthCare posted outstanding figures for the first quarter, thanks especially to the success of the Pharmaceuticals segment," Wenning explained. Sales of the subgroup increased by 3.4 per cent to EUR 3,731 million (Q1 2007: EUR 3,610 million). Adjusted for currency and portfolio effects, however, business expanded by a substantial 8.6 per cent.
In the Pharmaceuticals segment, sales increased by 4.8 per cent (currency-and portfolio-adjusted: 9.9 per cent) to EUR 2,614 million. The principal growth drivers were the Yasmin/YAZ/Yasminelle family of oral contraceptive products and the cancer drug Nexavar, sales of which rose by 33.3 per cent and 129.9 per cent, respectively, on a currency-adjusted basis.
Its sales from the Consumer Health segment have edged up 0.2 per cent to EUR 1,117 million. After adjusting for currency and portfolio changes, the increase came to 5.4 per cent, the prior-year quarter having benefited from two market launches - a new formulation of the analgesic Aleve in the United States and the blood glucose monitoring system "Breeze 2" in North America. In the Consumer Care Division - which markets Bayer's over-the-counter medicines - the strongest growth was achieved by the Bepanthen Bepanthol product group while Canesten improved by a currency-adjusted 14.9 per cent, Suprady by 10.7 per cent. The Diabetes Care Division grew particularly as a result of the successful launch of the Contour blood glucose monitoring systems (currency-adjusted: plus 27.7 per cent), which are replacing the Elite systems.
Bayer HealthCare increased first-quarter EBITDA before special items by 10.8 per cent to EUR 1,050 million (Q1 2007: EUR 948 million). Earnings growth was bolstered by the strong business performance and synergies from the integration of Schering AG, Germany. Negative currency effects were more than offset.