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![]() Nov. 13, 2024 Source: Bayer news release Leverkusen - The Bayer Group has reported third-quarter sales that were level with the prior-year period on a currency- and portfolio-adjusted basis (Fx & portfolio adj.), while earnings declined. From a strategic perspective, the company made further progress. "We've rapidly scaled the new operating model and significantly leveled up the Pharma pipeline," said Chief Executive Officer Bill Anderson on Tuesday when presenting the company's Quarterly Statement. "We are confirming our 2024 Group guidance in nearly all parameters." The development of the agricultural market has been weaker than anticipated, especially in Latin America, and the company also continues to face pricing pressure in the crop protection business, he said. Bayer is therefore lowering its 2024 targets for Crop Science. For 2025, Bayer is cautious on the agricultural market environment. Additional regulatory challenges and generic pricing pressures are set to put pressure on the crop protection business. Commenting on Pharmaceuticals, Anderson explained that the company is confident that the division will be able to deliver at the upper end of the upgraded 2024 guidance issued in the Half-Year Financial Report. "We're happy with what we see from our launch products," he said. For 2025, the company expects to see continued growth momentum from the cancer drug Nubeqa™ and from Kerendia™ for the treatment of patients with chronic kidney disease associated with type 2 diabetes. That is important, he said, as the loss of exclusivity impact on the oral anticoagulant Xarelto™ is expected to accelerate in the other direction, putting even greater pressure on the EBITDA margin before special items than this year. In addition, Bayer is targeting 2025 market launches for acoramidis and elinzanetant. In Consumer Health, Anderson noted that Bayer has been delivering continued growth (Fx & portfolio adj.) for more than five years and "has every intention of continuing that" in 2024. However, the pace of growth is set to be slower than initially planned, in step with the market. For 2025, the division plans to continue to grow, with a focus on increasing volumes, he said. Crop Science posts decline in sales and slight increase in EBITDA before special items In the agricultural business (Crop Science), sales decreased by 3.6 percent (Fx & portfolio adj.) to 3.986 billion euros. Sales of glyphosate-based herbicides declined by 19.1 percent (Fx & portfolio adj.) as purchasing patterns normalized and volumes decreased as a result, while a significant acreage reduction for corn in Latin America contributed to a similar decline in global sales of the Corn Seed & Traits business (Fx & portfolio adj. 19.3 percent). These negative effects were partially offset by substantially increased fungicide and insecticide sales, with growth rates of 13.1 percent and 9.5 percent (Fx & portfolio adj.), respectively. EBITDA before special items at Crop Science increased to 35 million euros (Q3 2023: minus 24 million euros), mainly due to lower provisions for the Group-wide short-term incentive (STI) program and a decrease in the cost of goods sold. Earnings were negatively impacted by the slight decline in sales. There was a positive currency effect of 32 million euros (Q3 2023: 121 million euros). To read the entire report click here. Tweet |
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