Bayer CropScience (506285) Q4 2006 earnings summary

Executive summary

• Consolidated FY2006 sales were Rs 8,107,199 thousand; profit after tax was Rs 554,092 thousand, up from Rs 383,473 thousand in 2005.

• Growth initiatives included new crop-protection products, a seed-distribution business launched in January 2007, and planned cessation of healthcare manufacturing at Thane during 2007.

Financial highlights

• Standalone sales and operating income were Rs 8,487.88 million vs Rs 7,952.18 million; profit after tax rose 53% to Rs 568.58 million.

• Consolidated profit before exceptional items and tax was Rs 873,108 thousand vs Rs 836,001 thousand; profit before tax was Rs 868,916 thousand vs Rs 766,873 thousand.

• Consolidated other income was Rs 330,926 thousand vs Rs 271,888 thousand; it included Rs 79,500 thousand of income from the ODM business divestment.

• Consolidated exceptional voluntary-retirement expenditure was Rs 4,192 thousand, compared with Rs 69,128 thousand in 2005.

Outlook and guidance

• 2007 plans included launches of Secure 60 WG, Melody Duo 66.75 WP, Folicur 250 EC and Fame 480 SC; new products were also being evaluated for growth segments.

• Seed distribution began January 1, 2007, using group-company portfolios concentrated in rice, cotton and millet to broaden the agricultural offering.

• Environmental Science plans centered on specialty-product launches, partnerships and continued technical and commercial support to defend market position.