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Mar. 5, 2025 Source: Bayer news release Leverkusen, Germany - The Bayer Group achieved its adjusted guidance for 2024. "We have three great businesses, with attractive long-term prospects," CEO Bill Anderson said at the Financial News Conference on Wednesday. "However, to get to the opportunities ahead, we first need to steer through what will continue to be challenging times," he noted, adding: "We still have work to do." Anderson called 2025 a "pivotal year" for the company. It is the second year in Bayer's turnaround and will be the most difficult in terms of financial performance, with net sales roughly in line with and earnings and free cash flow behind the prior year, he explained. The company expects improved performance from 2026 onwards. Alongside its four existing strategic priorities, the company is adding profitability at Crop Science as a fifth focus area, coupled with the launch of a comprehensive, five-year plan to improve earnings. "You're going to see us with our sleeves rolled up, focused on taking the right actions to set up our customers, our company and our owners for a prosperous future," he added. In the Pharmaceuticals Division, for example, the company expects to increase the combined sales of the cancer drug Nubeqa™ and Kerendia™, for the treatment of chronic kidney disease associated with type 2 diabetes, from around 2 billion euros to more than 2.5 billion euros in 2025, Anderson said. This year, it is also planning to launch the heart drug Beyonttra™ (active ingredient: acoramidis) and elinzanetant, a non-hormonal treatment for menopause symptoms. The Pharmaceuticals Division is projected to return to sales growth from 2027 onwards and expand margins beginning in 2028, he added. Furthermore, the company remains active in its efforts to address the US litigations, both inside and outside the courtroom, with Anderson seeing tangible steps toward containment on the horizon this year. Bayer is committed to significantly containing the related risks by the end of 2026, he explained. In addition, the company remains focused on deleveraging and advancing Dynamic Shared Ownership, Anderson said. The new operating model is expected to deliver savings of 800 million euros for 2025, on top of the approximately 500 million euros in savings that were targeted and achieved in 2024, he added. The plan to boost profitability at Crop Science centers around key measures regarding the product portfolio, research and development, production, commercial and enabling functions, totaling more than one billion euros in annual earnings contributions by 2029. It also includes a far-reaching cash productivity program. Bayer is targeting above-market growth for Crop Science during the coming years, with more than 3.5 billion euros of incremental sales from innovation by 2029. By the same year, the division is targeting an EBITDA margin before special items in the mid-20s percentage. "We recognize the need to take action, our team has a plan, and they've got what it takes to deliver," Bill Anderson said. Group sales at prior-year level, free cash flow slightly higher than projected Group sales came in at 46.606 billion euros in 2024, up 0.7 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.). There was a negative currency effect of 1.349 billion euros (2023: 1.964 billion euros). EBITDA before special items decreased by 13.5 percent to 10.123 billion euros. This figure included a negative currency effect of 573 million euros (2023: 375 million euros). EBIT amounted to minus 71 million euros (2023: plus 612 million euros) after net special charges of 5.507 billion euros (2023: 6.977 billion euros). The special charges mainly resulted from impairment losses, which were primarily attributable to the Crop Science Division. Net income came in at minus 2.552 billion euros (2023: minus 2.941 billion euros), while core earnings per share declined by 21.0 percent to 5.05 euros. Free cash flow more than doubled against the prior year, rising to 3.107 billion euros and slightly exceeding the company's expectations. Net financial debt amounted to 32.626 billion euros as of December 31, 2024, down 5.4 percent from year-end 2023. In order to further reduce debt and gain greater flexibility, the company intends to pay out the legal minimum in dividends for 2024, as previously announced. It is therefore proposing an unchanged dividend of 0.11 euros per share entitled to the dividend at the Annual Stockholders' Meeting on April 25, 2025. Crop Science impacted by lower prices in crop protection business Sales at Crop Science decreased by 2.0 percent (Fx & portfolio adj.) to 22.259 billion euros. Business was primarily impacted by lower prices in the crop protection business driven by competitive pricing pressure. Lower volumes in seeds and traits due to lower planted area were offset by volume growth in crop protection. Sales in Latin America were down due to lower planted corn area and reduced crop protection prices. By contrast, North America delivered slightly higher sales driven by higher crop protection volumes and soybean planted area, partially offset by lower corn planted area. EBITDA before special items at Crop Science decreased by 14.2 percent to 4.325 billion euros, mainly due to significant price declines in the crop protection business. Earnings were also impacted by higher provisions for the Group-wide short-term incentive (STI) program as well as inflationary cost increases, whereas the cost of goods sold improved due to efficiencies, especially for crop protection products. There was also a positive currency effect of 37 million euros (2023: 103 million euros). The EBITDA margin before special items declined by 2.3 percentage points to 19.4 percent. Group outlook: 2025 sales roughly at prior-year level On a currency-adjusted basis (i.e. based on the average monthly exchange rates in 2024), Bayer expects to generate sales of 45 billion to 47 billion euros in 2025. This corresponds to a change of minus 3 to plus 1 percent on a currency- and portfolio-adjusted basis. On a currency-adjusted basis, the company anticipates EBITDA before special items of 9.5 billion to 10.0 billion euros, core earnings per share of 4.50 to 5.00 euros, and free cash flow of 1.5 billion to 2.5 billion euros. Net financial debt as of year-end 2025 is expected to amount to 31.0 billion to 32.0 billion euros on a currency-adjusted basis. Bayer has also prepared its guidance based on the closing exchange rates as of December 31, 2024, and the differences to the currency-adjusted forecast above are as follows: At Group level, it expects to post EBITDA before special items of 9.3 billion to 9.8 billion euros, core earnings per share of 4.25 to 4.75 euros, free cash flow of 1.3 billion to 2.3 billion euros, and net financial debt of 31.2 billion to 32.2 billion as of year-end 2025. To read the entire report click here.
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