Bayer CropScience (506285) Q4 09/10 earnings summary

Executive summary

• FY09/10 net sales and operating income reached Rs 17,241.06 million; profit after tax rose to Rs 1,272.54 million from Rs 944.59 million.

• Growth was supported by new product launches, strong performance from FAME, and integrated seed-to-harvest offerings.

• Innovation-led crop protection demand and market growth supported the outlook, while pricing pressure and the Ankleshwar fire remained key concerns.

Financial highlights

• Net sales and operating income were Rs 17,241.06 million versus Rs 14,825.91 million; total income was Rs 17,493.59 million versus Rs 15,041.54 million.

• Profit before tax was Rs 1,964.45 million versus Rs 1,508.27 million; profit after tax was Rs 1,272.54 million versus Rs 944.59 million, up 34.72% YoY.

• EPS was Rs 32.22 versus Rs 23.91; net exceptional items were Rs 86.785 million, including Rs 54.904 million for Thane remediation and Rs 31.881 million for VRS.

• Exports were Rs 1,518.46 million versus Rs 1,695.43 million; operating segment export revenue was Rs 2,157.76 million versus Rs 2,196.25 million.

Outlook and guidance

• FY10/11 industry outlook was positive for innovative crop protection, with new chemistry adoption, stronger IPR regulation, and growth expected in herbicides and fungicides.

• Planned launches included Nativo fungicide, Glamore insecticide, and Ricestar herbicide for rice; further products were in evaluation for key crops.

• Vegetable crop protection was targeted for expansion through a dedicated team; an insect growth regulator was planned for the public health market.