Animal Health

Key Data – Animal Health

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

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

1

For definition see “Calculation of EBIT(DA) Before Special Items.”

2

For definition see “Statements of Cash Flows.”

Sales

 

428

426

 

–0.5

+4.2

 

814

834

 

+2.5

+6.4

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+8.1%

+1.4%

 

 

 

 

+6.6%

+4.7%

 

 

 

Price

 

–2.0%

+2.8%

 

 

 

 

–0.3%

+1.7%

 

 

 

Currency

 

+13.1%

–4.7%

 

 

 

 

+12.1%

–3.9%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

111

114

 

+2.7

+7.2

 

230

242

 

+5.2

+8.3

North America

 

193

193

 

.

+2.6

 

325

355

 

+9.2

+9.8

Asia / Pacific

 

72

71

 

–1.4

+4.2

 

147

138

 

–6.1

–2.0

Latin America / Africa / Middle East

 

52

48

 

–7.7

+3.8

 

112

99

 

–11.6

+3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

113

100

 

–11.5

 

 

205

221

 

+7.8

 

Special items

 

(7)

 

 

 

 

(17)

(1)

 

 

 

EBITDA before special items1

 

120

100

 

–16.7

 

 

222

222

 

.

 

EBITDA margin before special items1

 

28.0%

23.5%

 

 

 

 

27.3%

26.6%

 

 

 

EBIT

 

105

93

 

–11.4

 

 

170

207

 

+21.8

 

Special items

 

(6)

 

 

 

 

(38)

(1)

 

 

 

EBIT before special items1

 

111

93

 

–16.2

 

 

208

208

 

.

 

Gross cash flow2

 

83

69

 

–16.9

 

 

155

155

 

.

 

Net cash flow2

 

85

48

 

–43.5

 

 

205

28

 

–86.3

 

Second quarter of 2016

Sales

Sales of Animal Health in the second quarter of 2016 climbed by 4.2% (Fx & portfolio adj.) to €426 million. All regions developed positively on a currency-adjusted basis, the strongest gains being registered in Europe.

Best-Selling Animal Health Products

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Fx adj. = currency-adjusted

Advantage™ product family

 

169

157

 

–7.1

–3.7

 

313

305

 

–2.6

–0.4

Seresto™

 

48

67

 

+39.6

+44.6

 

76

121

 

+59.2

+61.7

Drontal™ product family

 

30

32

 

+6.7

+9.3

 

61

64

 

+4.9

+8.2

Baytril™

 

27

24

 

–11.1

–5.8

 

57

52

 

–8.8

–4.4

Total

 

274

280

 

+2.2

+6.0

 

507

542

 

+6.9

+9.5

Proportion of Animal Health sales

 

64%

66%

 

 

 

 

62%

65%

 

 

 

Sales by product

  • Sales of our Advantage™ family of flea, tick and worm control products declined, mainly as a result of higher competitive pressure.
  • Sales of our Seresto™ flea and tick collar rose strongly, thanks especially to higher demand in the United States. Sales also increased in Europe.
  • Business with our Drontal™ line of wormers benefited, among other factors, from higher volumes in the United States.
  • Sales of our antibiotic Baytril™ fell because of a weaker market environment overall and generic competition in the United States.

Earnings

EBITDA before special items of Animal Health declined by 16.7% to €100 million in the second quarter of 2016 (Q2 2015: €120 million), due especially to seasonal shifts in selling expenses and negative currency effects of around €5 million.

EBIT stood at €93 million, which was 11.4% lower than in the prior year (Q2 2015: €105 million) and included no special charges (Q2 2015: €6 million).

First half of 2016

Sales

Sales of Animal Health rose by 6.4% (Fx & portfolio adj.) in the first half of 2016 to €834 million. The strongest sales growth was recorded in the United States and Europe.

Earnings

EBITDA before special items in the first half of 2016 amounted to €222 million (H1 2015: €222 million) and was thus level with the prior year. Positive earnings contributions from the good business development stood against higher selling expenses and negative currency effects of around €10 million.

EBIT of Animal Health advanced by 21.8% to €207 million (H1 2015: €170 million) after special charges of €1 million (H1 2015: €38 million).