Bayer surprises the market with results beyond expectations; Pharmaceuticals confirmed as the group’s real engine

Germany-based group Bayer reported its 2016 financial results, which were beyond expectations, especially thanks to excellent performance by the pharmaceutical business. By contrast, figures by the Crop Protection business were below expectations, mainly because of the slowdown in the demand from Latin America. Revenues in 2016 reached €46.8bn (+1.5% vs 2015) and EBITDA grew by 10% to €11.3bn. Revenues and EBITDA sharply rose in the last quarter of 2016 – the latter, specifically, increased by 13.7%. EBITDA for the pharmaceutical business was up 14% to €5.3bn, mainly boosted by prescription drugs (+9%). The drugs which gave the most relevant contribution to growth include Xarelto, Eylea, Xofigo, Stivarga and Adempas, which together generated €5.4bn in revenues (+28% vs 2015). The Consumer Health business delivered a poorer performance: revenues increased, while EBITDA decreased as compared to last year. (Source Bayer)