Business Development by Segment

Consumer Health

Stable market growth

Growth of the global consumer health market in 2018 was just under 4% (2017: 4%). Strong fundamentals of a growing, aging population and the self-care trend were slightly offset by the soft allergy season in the United States.

Key Data – Consumer Health

 

 

Q4 2017

Q4 2018

Change1

 

2017

2018

Change1

 

 

€ million

€ million

Reported %

Fx & p adj. %

 

€ million

€ million

Reported %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted

1

For definition see Chapter “Alternative Performance Measures Used by the Bayer Group”

Sales

 

1,399

1,331

–4.9

–1.7

 

5,862

5,450

–7.0

–0.7

Changes in sales1

 

 

 

 

 

 

 

 

 

 

Volume

 

–4.2%

–3.1%

 

 

 

–3.0%

–1.5%

 

 

Price

 

0.0%

+1.4%

 

 

 

+1.3%

+0.8%

 

 

Currency

 

–4.9%

–1.5%

 

 

 

–1.2%

–5.7%

 

 

Portfolio

 

0.0%

–1.7%

 

 

 

0.0%

–0.6%

 

 

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

491

474

–3.5

–0.9

 

1,962

1,857

–5.4

–1.5

North America

 

581

534

–8.1

–6.5

 

2,480

2,263

–8.8

–2.6

Asia / Pacific

 

145

163

+12.4

+13.8

 

738

730

–1.1

+3.5

Latin America

 

182

160

–12.1

–0.4

 

682

600

–12.0

+4.2

EBITDA1

 

197

211

7.1

 

 

1,145

1,035

–9.6

 

Special items1

 

(54)

(68)

 

 

 

(86)

(61)

 

 

EBITDA before special items1

 

251

279

+11.2

 

 

1,231

1,096

–11.0

 

EBITDA margin before special items1

 

17.9%

21.0%

 

 

 

21.0%

20.1%

 

 

EBIT1

 

(110)

(2,607)

.

 

 

518

(2,077)

.

 

Special items1

 

(258)

(2,781)

 

 

 

(300)

(2,776)

 

 

EBIT before special items1

 

148

174

+17.6

 

 

818

699

–14.5

 

Net cash provided by operating activities

 

297

196

–34.0

 

 

1,059

727

–31.4

 

Sales level year on year

Sales were level year on year in 2018, at €5,450 million (Fx & portfolio adj. −0.7%). Growth in the Latin America and Asia / Pacific regions on a currency- and portfolio-adjusted basis stood against declines in North America and Europe / Middle East / Africa. As expected, temporary supply disruptions weighed on sales.

Best-Selling Consumer Health Products

 

 

Q4 2017

Q4 2018

Change1

 

2017

2018

Change1

 

 

€ million

€ million

Reported %

Fx & p adj. %

 

€ million

€ million

Reported %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted

1

For definition see Chapter “Alternative Performance Measures Used by the Bayer Group”

2

Trademark rights and distribution only in certain countries outside the European Union

Claritin™

 

113

96

–15.0

–17.1

 

585

516

–11.8

–6.3

Aspirin™

 

124

118

–4.8

–2.6

 

462

418

–9.5

–3.3

Bepanthen™ / Bepanthol™

 

96

90

–6.3

–3.9

 

379

371

–2.1

+3.0

Aleve™

 

103

94

–8.7

–9.9

 

375

351

–6.4

–1.8

Canesten™

 

68

61

–10.3

–7.8

 

278

245

–11.9

–8.2

Alka-Seltzer™ product family

 

73

74

+1.4

–1.0

 

244

225

–7.8

–3.9

Elevit™

 

42

49

+16.7

+19.2

 

189

209

+10.6

+16.9

One A Day™

 

63

55

–12.7

–15.2

 

222

203

–8.6

–4.3

Dr. Scholl’s™2

 

54

46

–14.8

–17.4

 

211

198

–6.2

–1.7

MiraLAX™

 

41

49

+19.5

+17.7

 

163

176

+8.0

+12.4

Total

 

777

732

–5.8

–6.5

 

3,108

2,912

–6.3

–1.8

Proportion of Consumer Health sales

 

56%

55%

 

 

 

53%

53%

 

 

Sales by product

  • Sales of our antihistamine Claritin™ were down year on year. This was mainly due to our primary sales market, the United States, which was impacted by the weak season in this market segment and by intensified competition. Sales also declined in Japan, due in part to statutory price adjustments.
  • Sales of our analgesic Aspirin™ were down year on year, primarily as a result of temporary supply disruptions. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales fell by 1.5% (Fx & portfolio adj.) to €975 million (2017: €1,043 million).
  • Business with our Bepanthen™ / Bepanthol™ wound and skin care products developed positively, benefiting from product line extensions in Brazil and Turkey, among other factors.
  • Sales were down slightly for our analgesic Aleve™. We primarily registered declines in the United States, where a product line extension was discontinued.
  • We recorded a decrease in sales of our Canesten™ skin and intimate health products as a result of temporary supply disruptions.
  • Sales of our Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms were down against the prior year, particularly in the United States. By contrast, business developed positively in the Europe / Middle East / Africa and Latin America regions.
  • We again registered encouraging sales gains for our prenatal vitamin Elevit™. Adjusted for currency and portfolio effects, sales increased by a double-digit percentage, driven by the Asia / Pacific and Europe / Middle East / Africa regions, where we benefited from continuing strong demand and product line extensions. In addition, the expansion of our e-commerce activities had a positive effect in Asia / Pacific.
  • Our One A Day™ vitamin product saw a decline in sales that resulted primarily from stronger pressure on prices in the United States, while volumes were level with the previous year.
  • Sales of our Dr. Scholl’s™ foot care products declined slightly, primarily in the United States.
  • We posted encouraging sales gains for MiraLAX™, our product to treat occasional constipation, largely due to higher demand in the United States.

Earnings

EBITDA before special items was down by a significant 11.0% in 2018, at €1,096 million. Adjusted for negative currency effects of €67 million, earnings were 5.5% lower than in 2017. The decline was primarily attributable to lower volumes and a decrease in one-time gains that predominantly related to the divestment of noncore brands. A decline in selling and general administration expenses had an opposing effect.

EBIT of Consumer Health amounted to minus €2,077 million (2017: €518 million). This was due to special items of €2,776 million (2017: €300 million) that mostly related to impairment losses recognized on goodwill (approximately €1.5 billion) and on other intangible assets (approximately €1.0 billion).

Special Items1 Consumer Health

 

 

EBIT Q4 2017

EBIT Q4 2018

 

EBIT
2017

EBIT
2018

 

EBITDA Q4 2017

EBITDA Q4 2018

 

EBITDA 2017

EBITDA 2018

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

1

For definition see Chapter “Alternative Performance Measures Used by the Bayer Group”

Restructuring

 

(56)

(59)

 

(98)

(85)

 

(54)

(59)

 

(86)

(83)

Impairment losses / loss reversals

 

(202)

(2,713)

 

(202)

(2,713)

 

 

Divestments

 

(8)

 

25

 

(8)

 

25

Other

 

(1)

 

(3)

 

(1)

 

(3)

Total special items

 

(258)

(2,781)

 

(300)

(2,776)

 

(54)

(68)

 

(86)

(61)

Compare to Last Year