Bayer CropScience (506285) Q4 08/09 earnings summary

Executive summary

• FY ended Mar. 31, 2009 reported net sales and other operating income of Rs. 14,825.91 million and PAT of Rs. 944.59 million; the prior period covered 15 months versus 12 months in FY09.

• PAT increased 92.37% from Rs. 491.03 million; EPS rose to Rs. 23.91 from Rs. 12.43, with the differing period lengths limiting direct comparison.

• Integrated “Seed to Harvest” offerings, portfolio streamlining and new launches helped capture favorable crop-protection demand and support market-share gains.

Financial highlights

• Net sales and other operating income Rs. 14,825.91 million vs Rs. 12,383.20 million; total income Rs. 15,041.54 million vs Rs. 12,613.61 million, with FY09 covering 12 months and the prior period 15 months.

• Profit before tax Rs. 1,508.27 million vs Rs. 679.56 million; PAT Rs. 944.59 million vs Rs. 491.03 million.

• Export turnover (FOB) Rs. 1,695.43 million vs Rs. 1,423.62 million; export segment revenue Rs. 2,196.25 million vs Rs. 1,726.67 million.

• Proposed dividend Rs. 2.80 per Rs. 10 equity share vs Rs. 2.40; total proposed dividend Rs. 110.60 million.

• Cash from operations Rs. 346.21 million; investing outflow Rs. 447.13 million and financing outflow Rs. 480.56 million; period-end cash and equivalents Rs. 283.39 million.

Outlook and guidance

• Planned 2009 launches included Oberon 240 SC, Fipronil 80 WG, Imidacloprid 350 SC and Melody Duo 66.75 WP; further products and small packs were in development or planned.

• Innovation, R&D investment and products designed to meet strengthening safety and residue standards were positioned to support growth under India’s evolving patent regime.

• Public Health opportunities included Bendiocarb 80% WP and Aqua K-Othrine; termiticides, general pest control and safer formulations were identified as PPC growth areas.