Bayer CropScience (506285) Q4 2003 earnings summary

Executive summary

• Consolidated sales and other operating income were Rs 8,897.43 million; profit after tax was Rs 327.68 million for 2003.

• The merger of the CropScience businesses expanded scale and market presence; the year’s accounts also reflect major business transfers and disposals.

Financial highlights

• Consolidated sales and other operating income rose from Rs 5,803.49 million in 2002 to Rs 8,897.43 million in 2003; periods are not comparable due to restructuring.

• Profit before extraordinary items was Rs 810.38 million; extraordinary items of Rs 337.81 million reduced profit before tax to Rs 472.58 million.

• Profit after tax was Rs 327.68 million, versus Rs 154.75 million in 2002; comparison is affected by the merger and business transfers.

• Exports were Rs 845.46 million, compared with Rs 545.87 million in 2002.

Outlook and guidance

• Crop Protection outlook anticipated a ~1–3% market-share increase in 2004, following reported market-share growth of ~10–12% in 2003; good monsoon and farmer financing were expected to support demand.

• Planned launches included two vector-control products and four professional pest- and termite-control products to support Environmental Science growth and mitigate generic pressure.

• New CropScience products and pipeline work targeted rice, fruits and vegetables, cotton and wheat; products were intended to offer smaller-dose, cost-effective and eco-friendly use.