Bayer has register a good start to 2020 , with business activities in the first tail greatly marked by the COVID-19 pandemic . “ With our life science production portfolio in the areas of wellness and nutrition , we have shown our ability to successfully continue our line of work military operation in a challenging surround and fork out a positive part for our stakeholder even during a metre of crisis , ” Werner Baumann , Chairman of the Board of Management , said on Monday when presenting the ship’s company ’s quarterly statement . Bayer has follow out extensive measures at its sites in a bidding to staunch or at least slow up the spread of COVID-19 . “ The health and rubber of our employee is our top antecedence . We are also focussed on ensuring that patients , granger and consumers receive our product , especially our life - saving medication , ” Baumann aver .
While the COVID-19 pandemic led to higher demand – part due to inventorying buildup – and thus an gain in gross sales at some business sector unit , the restriction related to the pandemic are adversely bear on percentage of the companionship ’s business . Bayer has furnish strong support in areas move by COVID-19 , such as through donations of money , medicines and aesculapian supplying and the provision of examination equipment from its laboratory , complemented by exceptional efforts on the part of its employees .
Group sales in in the first quarter of 2020 rose by 6.0 per centum on a currency- and portfolio - adjusted basis ( Fx & portfolio adj . ) to 12.845 billion euros . EBITDA before special particular increased by 10.2 pct to 4.391 billion euro , and included positive currency upshot of 41 million euros . EBIT advanced by 40.4 percentage to 2.499 billion euros , in part due to a decline in net extra armorial bearing to 639 million euros ( Q1 2019 : 1.043 billion euro ) . These special charges primarily related to legal fees , ongoing reconstitute programme and the integrating of Monsanto . nett income increase by 20.0 percent to 1.489 billion euros , while core earnings per share from continuing operations rise by 9.9 pct to 2.67 euro .
Free Johnny Cash stream amount to minus 793 million euro ( Q1 2019 : plus 508 million euro ) . The decrement was mainly attributable to the lower operate on cash flow triggered by change in work capital , especially in the Crop Science Division , lead part from a shift between the reporting periods that adversely impact the first quarter of 2020 . This was due to a relatively former decline in deal accounting receivable at the end of 2019 and the subsidence of a comparatively tumid amount of craft payables in the first quarter of 2020 . Net fiscal debt as of March 31 , 2020 , at 35.399 billion euros , was 3.9 percent higher than at year - end 2019 , mainly as a result of hard currency outflows from operating activities and negative currency effects .
Crop Science see especially strong maturation at Insecticides and FungicidesIn the agricultural business ( Crop Science ) , Bayer increased sales by 5.7 percent ( Fx & portfolio adj . ) to 6.834 billion euro , with all region registering increment . Sales at Corn Seed & Traits promote by 9.8 percent ( Fx & portfolio adj . ) . The unit benefited from advance demand in Europe / Middle East / Africa and an hoped-for substantial increase in acreage in North America , while higher volumes in Brazil and Mexico in especial lifted cut-rate sale in Latin America . insecticide reported particularly strong growth ( Fx & portfolio adj . 15.4 percent ) , as did Fungicides ( Fx & portfolio adj . 14.0 percent ) . In North America and Europe / Middle East / Africa , in special , the Insecticides business benefited from a good starting line to the time of year in the various countries and overture product purchases . At Fungicides , business improved in Europe / Middle East / Africa follow a weak anterior - year quarter . sale in North America profit from higher volumes in the United States , while line in Latin America was defend by the market launch of Fox Xpro in Brazil in the prior year . decline were primarily recorded at Vegetable Seeds ( Fx & portfolio adj . 13.5 percent ) , with job mainly down in North America due to shifts in demand into the previous quarter and the encroachment of COVID-19 . At Soybean Seed & Traits , sales were down against the prior - twelvemonth quarter ( Fx & portfolio adj . minus 7.6 percent ) . decline in North America due in part to lowly selling prices were only partially offset by strong sales gains in Latin America .
EBITDA before especial item at Crop Science rose by 13.5 pct to 2.611 billion euro . The increment was principally attributable to advance requirement due to COVID-19 , eminent volumes in all regions and the realization of cost synergies as the integrating of the acquired job get along .
As of April 14 , 2020 , causa involving approximately 52,500 complainant had been serve in the United States in connectedness with the glyphosate - based Roundup merchandise . This number does not reflect the merits of the alleged claims . Bayer go on to operate constructively in the mediation process and had made progress before the outbreak of COVID-19 and the global pandemic significantly slowed the mediation process . The company will continue to consider a solution only if it is financially reasonable and frame in place a mechanics to resolve potential future claim efficiently . Against the screen background of a tower recessional and see at , in part , considerable liquid challenge , this use now more than ever , Baumann state .
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