Agricultural Solutions

Q2 2020

Sales in the Agricultural Solutions segment were slightly below the level of the second quarter of 2019. This was mainly attributable to negative currency effects, especially in the region South America, Africa, Middle East. Higher volumes in all regions except Europe and higher price levels had a positive impact on sales.

Factors influencing sales in Q2 2020 – Agricultural Solutions

Volumes

2%

Prices

1%

Portfolio

0%

Currencies

(5%)

Sales

(2%)

In Europe, sales declined considerably compared with the prior-year quarter, primarily as a result of lower volumes. This was attributable to lower sales volumes, especially of herbicides and fungicides, mainly due to dry weather conditions in large parts of Europe. Sales were also reduced by negative currency effects, especially in Russia and Turkey. Slightly higher prices had an offsetting effect.

We slightly increased sales in North America compared with the level of the second quarter of 2019. The sales increase was primarily driven by higher volumes, especially of herbicides and fungicides. Sales were dampened by lower prices.

We considerably improved sales in Asia, primarily from higher herbicide volumes in China, India and Australia. Slightly higher prices also had a positive impact on sales. This was partially offset by negative currency effects and portfolio effects.

Sales in the region South America, Africa, Middle East rose considerably. We were able to significantly increase our volumes, particularly in Brazil and Argentina, where we recorded volumes growth in all indications and sectors. A significantly higher price level also contributed to the positive sales development. This more than offset significantly negative currency effects, especially in Brazil and Argentina.

Income from operations (EBIT) before special items was down €1 million from the level of the prior-year quarter. EBIT before special items was negatively impacted by currency effects and an unfavorable product mix. This was almost offset by significantly lower fixed costs.

EBIT included special items for the integration of the businesses acquired from Bayer; these were lower than in the prior-year quarter.

Segment data – Agricultural Solutions (Million €)

 

Q2

H1

 

2020

2019

+/–

2020

2019

+/–

a

Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

b

Additions to property, plant and equipment and intangible assets

Sales to third parties

1,766

1,796

(2%)

4,585

4,445

3%

Income from operations before depreciation, amortization and special items

299

298

0%

1,288

1,208

7%

Income from operations before depreciation and amortization (EBITDA)

275

205

34%

1,242

1,148

8%

Depreciation and amortizationa

180

176

2%

360

347

4%

Income from operations (EBIT)

95

29

228%

882

801

10%

Special items

(25)

(92)

73%

(47)

(60)

22%

EBIT before special items

120

121

(1%)

929

861

8%

Assets (June 30)

16,736

17,348

(4%)

16,736

17,348

(4%)

Investments including acquisitionsb

71

148

(52%)

136

116

17%

Research and development expenses

200

205

(2%)

407

398

2%

H1 2020 sales by indication and sector
H1 2020 sales by indication and sector (pie chart)