Agricultural Solutions

Q1 2020

The Agricultural Solutions segment recorded considerable sales growth compared with the first quarter of 2019. This was primarily attributable to higher volumes, especially in North America and Europe. The earlier demand triggered by the corona pandemic had a positive impact on sales volumes. A lower price level had a slight offsetting effect.

Factors influencing sales in Q1 2020 – Agricultural Solutions

Volumes

7%

Prices

(1%)

Portfolio

0%

Currencies

0%

Sales

6%

In Europe, sales rose slightly year on year as a result of higher sales volumes. This development was mainly due to higher demand for herbicides, seed treatments, and seeds and traits.

Sales in North America improved considerably. We significantly increased volumes – especially of herbicides and fungicides – compared with the first quarter of 2019, which was affected by extreme weather conditions. The sales development was also supported by positive currency effects. By contrast, lower price levels had a dampening effect on sales.

In Asia, sales were considerably above the figure for the first quarter of 2019 due to higher sales volumes, especially of herbicides in China, Australia and Japan. Positive currency effects also contributed to the sales development.

We considerably increased sales in the region South America, Africa, Middle East. This was mainly driven by higher volumes, particularly of fungicides and herbicides. Slightly higher prices also had a positive impact on sales. Significantly negative currency effects, especially in Brazil, had an offsetting effect.

Income from operations (EBIT) before special items was slightly higher than in the first quarter of 2019. This was largely the result of higher sales, mainly due to earlier demand as a consequence of the corona pandemic, and lower fixed costs.

Segment data – Agricultural Solutions (Million €)

 

 

Q1

 

 

2020

2019

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

b

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

2,819

2,649

6%

Income from operations before depreciation, amortization and special items

 

989

910

9%

Income from operations before depreciation and amortization (EBITDA)

 

967

943

3%

EBITDA margin

%

34.3

35.6

Depreciation and amortizationa

 

180

171

5%

Income from operations (EBIT)

 

787

772

2%

Special items

 

(22)

32

.

EBIT before special items

 

809

740

9%

Assets (March 31)

 

17,997

18,760

(4%)

Investments including acquisitionsb

 

65

(32)

.

Research and development expenses

 

207

193

7%