Bayer CropScience (506285) Q4 10/11 earnings summary

Executive summary

• FY2010-11 net sales and other operating income rose to ₹21,392.71 million from ₹17,241.06 million; profit after tax reached ₹1,315.44 million, up 3.37% YoY.

• The board recommended a ₹4 per share dividend, unchanged YoY; the proposed payout totals ₹158 million.

Financial highlights

• Total income was ₹21,577.68 million; profit before exceptional items and tax was ₹2,027.44 million, versus ₹2,051.23 million in FY2009-10.

• Profit before tax was ₹1,989.66 million versus ₹1,964.45 million; profit after tax was ₹1,315.44 million versus ₹1,272.54 million.

• Export sales (FOB) increased to ₹2,362.89 million from ₹1,518.46 million.

• Operating cash flow was ₹1,242.59 million, versus ₹823.59 million; cash and cash equivalents ended the year at ₹3,629.73 million.

Outlook and guidance

• FY2011 plans included launches of Glamore insecticide and Ricestar and Accord herbicides; four innovative products were also anticipated for approval and launch.

• Strategy prioritizes innovative crop protection, a stronger conventional portfolio and a higher share of new, high-margin products; the pipeline is aligned with market demand.

• Industry outlook was positive, with expected value growth driven by better-quality chemistry, higher farm incomes, fungicides, herbicides and expanding fruits and vegetables cultivation.