Good start of Bayer year
Sales of the Bayer Group advanced by 2.8 percent in the first quarter of 2014 to EUR 10,555 million (Q1 2013: EUR 10,266 million). Adjusted for currency and portfolio effects (Fx & portfolio adj.), business expanded by 8.4 percent. EBIT rose by 18.4 percent to EUR 2,096 million (Q1 2013: EUR 1,771 million) after net special items of plus EUR 7 million (Q1 2013: minus EUR 45 million).
EBIT before special items increased by 15.0 percent to EUR 2,089 million (Q1 2013: EUR 1,816 million). In spite of negative currency effects of some EUR 200 million or roughly 8 percent, EBITDA before special items improved by 11.6 percent to EUR 2,738 million (Q1 2013: EUR 2,453 million). Net income climbed by 22.7 percent to EUR 1,423 million (Q1 2013: EUR 1,160 million) and core earnings per share by 14.7 percent to EUR 1.95 (Q1 2013: EUR 1.70).
Gross cash flow in the first quarter of 2014 rose by 13.3 percent to EUR 2,048 million (Q1 2013: EUR 1,807 million) due to the improvement in EBITDA. Net cash flow, however, declined to EUR 163 million (Q1 2013: EUR 327 million) because more cash was tied up in working capital. Net financial debt rose from EUR 6.7 billion on December 31, 2013, to EUR 9.1 billion on March 31, 2014. This increase was driven by the acquisition of Algeta ASA, Norway.
"We are confident about our business development for the rest of the year and confirm our guidance for 2014," Bayer CEO Marijn Dekkers said. ■