FRANKFURT—German health care company Bayer AG reported a 13.3% jump in net profit for the first quarter of 2016, driven by strong earnings growth at the group's pharmaceuticals division, while confirming a cautious guidance for the full year.

Net profit for the period ended March 31 was €1.51 billion ($1.70 billion), compared with €1.33 billion during the same period a year earlier, beating analysts' forecasts. Analysts had predicted a net profit of €1.45 billion, according to a recent poll conducted by The Wall Street Journal.

The results come just days before Chief Executive Marijn Dekkers is set to step down after six years in the top job to take over as chairman of consumer-products conglomerate Unilever PLC. Mr. Dekkers will be succeeded by management board member Werner Baumann.

Over the course of his tenure, Mr. Dekkers, a Dutchman who spent the majority of his career in the U.S., has reshaped the group around its life sciences businesses and sought to shake up a staid corporate culture.

Last year, he floated on the stock market part of Bayer's specialty plastics business, which primarily produces polyurethanes and polycarbonates, though the company still holds a majority stake in the business. The year prior, he orchestrated a $14.2 billion acquisition of U.S.-based Merck & Co.'s over-the-counter drug business.

First-quarter sales rose slightly, by 0.5%, to €11.94 billion, boosted by strong sales of the company's recently launched prescription drugs. The medicines include anticoagulant Xarelto; eye treatment Eylea; cancer drugs Stivarga and Xofigo; and pulmonary hypertension drug Adempas. They generated combined sales of €1.19 billion, compared with €898 million during the first quarter of last year.

Bayer's closely watched earnings before interest, taxes, depreciation and amortization before special items climbed by 15.7%, to €3.4 billion, helped by strong earnings growth at the pharmaceuticals division and animal health divisions, as well as at Covestro, the company's recently spun-off specialty plastics business.

Ebitda before special items at the pharmaceuticals division rose by 16.2%, to €1.26 billion, despite higher research and development expenses and negative currency effects. At Covestro, Ebitda before special items jumped by 18.9%, to €504 million, boosted by higher volumes and decreased raw material prices.

Bayer reported a "very good set of figures" at its life science businesses and at the entire group level, according to Peter Spengler, an analyst at Germany's DZ Bank.

Bayer reiterated its guidance for the current year, saying it expects sales of approximately €35 billion for the life sciences businesses and to increase Ebitda before special items for those businesses by a mid-single-digit percentage.

Write to Christopher Alessi at christopher.alessi@wsj.com

 

(END) Dow Jones Newswires

April 26, 2016 03:55 ET (07:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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