Bayer CropScience (506285) Q4 2002 earnings summary

Executive summary

• FY2002 sales fell amid severe drought, lower cotton and rice acreage, and weak pest pressure; Eastern-region growth and stronger herbicide and Environmental Science businesses partly offset the downturn.

• Net profit after tax was Rs. 145.3 million; proposed dividend was Rs. 2 per share, or 20%.

Financial highlights

• Gross sales were Rs. 3,328.2 million versus Rs. 4,664.4 million in 2001; net sales were Rs. 3,087.6 million versus Rs. 4,325.6 million.

• Profit before extraordinary items and tax was Rs. 210.4 million versus Rs. 344.4 million; PAT was Rs. 145.3 million versus Rs. 309.2 million.

• Extraordinary items included Rs. 7.3 million income from tenancy rights and Rs. 1.1 million voluntary retirement compensation; 2001 included Rs. 149.7 million income from marketing rights.

• Export turnover rose to Rs. 182 million from Rs. 56 million, a reported 300% increase in the business performance review.

Outlook and guidance

• FY2003 prospects were expected to be satisfactory, conditional on the monsoon; planned focus crops included rice, wheat, chillies, vegetables, and sugarcane.

• Recovery in cotton, rice, horticulture, and soybean planted areas was anticipated for 2003, supporting improved business conditions.

• Environmental Science expected to introduce several products in 2003; new launches were also expected to support future growth in vector control, termite management, and professional pest control.