Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BAYER AG-REG. We currently have 11 research reports from 1 professional analysts.
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Higher volumes, but lower FCF
26 Oct 16
Q3 sales slightly increased by +2% to €11,262m (volumes: +4%; price: 0%, FX: -1%, portfolio: 0%) and the gross profit margin strongly rose from 55.1% to 57.1%. EBITDA increased +10% to €2,560m and net profit attributable to shareholders improved +19% to €1,187m. Operating CF came in at €3,053m (€2,330m), driven by the higher operating performance and additionally helped by a higher NWC inflow (€1,086m after €798m) due to a more moderate inventory increase and stronger decrease in receivables. Investing CF heavily suffered from higher outflows for net financial assets (€-1,435m after €-252m) moving from €-965m to €-2,039m). FCF was €998m after €1,365m. Lower net cross debt repayments (€-554m after €-1,938m) helped financing CF (€-846m after €-2,162m). Due to the signed divestment of the Consumer business of Environmental Science, management marginally adjusted the detailed 2016 guidance. It is still expecting sales of €46-47bn, EBITDA before one-offs increasing at a high single-digit percentage and core earnings per share from continuing operations increasing by a high single-digit percentage (previously: mid-to-high single-digit percentage).
Pharmaceuticals made the pace
28 Jul 16
Management lifted FY guidance after another strong quarter. Sales weakened 1% to €11,883m (volumes: +4%; prices: -2%; FX: -4%) in Q2, but the gross profit margin improved further (57.5% after 56.1%). EBITDA grew +12% to €2,952m and net profit attributable to shareholders rose +19% to €1,448m. Despite the stronger operating performance, operating CF stood fairly unchanged at €1,982m as NWC outflow strongly moved up from €-205m to €-374m, hit by significantly higher other changes in working capital (€-773m after €-51m). Investing CF moved from €-527m to €-1,245m driven by higher outflows for current and non-current financial assets. Financing CF swung from €334m to €-3,235m primarily due to the more than €3bn swing in debt moving from net gross debt proceeds of €2,349m to net gross debt repayments of €-950m. Management adjusted the detailed 2016 guidance, now expecting sales of €46-47bn (above €47bn) and EBITDA before one-offs is seen to increase at a high single-digit (mid-single) percentage.
Mad German money
23 May 16
Bayer has made a 37% premium offer (on 9 May closing price), bidding USD122 per Monsanto share, to acquire fully the agrochem giant. In absolute terms, Monsanto is valued at USD62bn (~€55bn) and the transaction is intended to be financed by an expected equity portion of c.25% of the enterprise value. Backed by the expected strong cash flow generation, Bayer sees its single ‘A’ credit rating not at risk in the long term.
Pharmaceuticals showed strong growth
26 Apr 16
Group sales (+1% to €11,941m) saw good volume growth (+5%), which was more or less eaten up by lower prices (-2%) and adverse FX effects (-3%). Gross profit strongly increased from 53.9% to 57.4% driven by higher Pharmaceuticals’ sales and lower raw material prices and EBITDA jumped +23% to €3,3376m befitting from all segments. Earnings attributable to shareholders rose +13% to €1,511m. Operating CF was highly affected by the obligations to be fulfilled in connection with the sale of Diabetis Care, which dropped on a continuing operations basis (-26% to €503m) hit by higher NWC outflow (€-2.1bn after €-1.3bn). Total operating CF came in at €1,332m (€724m) fuelled by €819m from the obligations. Investing CF was €-462m (€-595m) helped by higher inflows from current financial assets. Financial CF benefitted from net gross issuance (€909m after €-323m) coming in at €823m (€-410m) including the €-819m adjustment for the obligations. Management confirmed 2016 guidance for sales of above €47bn and mid-single-digit percentage growth in EBITDA before one-offs.
Marijn’s large footsteps
25 Feb 16
FY sales rose 12% (organic: +3%) to €46,324m and the gross profit margin significantly improved by 2.5bp to 54.3%. EBITDA went up +15% to €9,583m and earnings attributable to shareholders climbed +20% to €4,110m. Operating CF strongly rose +19% to €6,847m accelerated by NWC’s improvement (€-152m after €-1,010m), primarily driven by a weaker inventory build-up. The previous year’s investing CF was characterised by the acquisition of the OTC business from Merck&Co for nearly €14bn, so the figures moved from €-15,539m to €-2,762m in 2015, which was dominated by capex. Financing CF swung from €9,736m to €-3,974m primarily due to the swing from net gross debt proceeds (€11,838m) to net gross debt repayments (€-2,929m). Management will propose an 11% higher dividend of €2.50 (€2.25) per share at the AGM on 29 April 2016. For 2016, management expects sales of above €47bn and EBITDA before one-offs is seen to increase by a mid-single percentage.
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
30 Nov 16
Results have yet again beaten our forecasts and the management has now delivered the fourth consecutive year of earnings above expectations. The share price is up 41% over the last three months, and Treatt is steadily moving from commoditised sales to more value-added products. Its strategy of deep customer relationships is paying off, giving it a real competitive advantage and improving margins. The year finished strongly and momentum is due to continue in the traditionally seasonally weaker Q117. Our P&L forecasts are broadly maintained, but our fair value moves to 272p (from 240p) as a result of stronger cash flow.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.