Bayer Reduces Losses in the First Nine Months and Sales Fall by 2.5%

Bayer regains momentum, but its turnover declines. The German chemical and pharmaceutical group has closed the first nine months of 2024 with a negative result of €2.22 billion, which means reducing by 48.2% the negative figures of €4.28 billion recorded in the same period of the previous year, according to the company, which has revised downwards several parameters of its forecasts for the year as a whole.

Bayer’s revenue through September was €34.87 billion, down 2.5% , including a 4.3% drop in the crops division, to €16.87 billion, while the pharmaceutical branch earned 0.2% less, at €13.47 billion, and the personal care business generated revenue of €4.30 billion, down 3.3%.

In the third quarter of the year, Bayer’s losses amounted to €4.18 billion, 8.3% lower than the negative result of the previous year, mainly due to the negative impact of €4.09 billion related to the impairment of intangible assets in the agricultural division.

On the other hand, revenues during the third quarter were €9.97 billion, 3.6% less , after the 8.7% drop in the turnover of the agricultural business, down to €3.98 billion, as well as the 0.6% drop in the pharmaceutical division, with €4.51 billion, although the personal care area grew by 0.2%, up to €1.41 billion.

Bayer’s pharmaceutical division’s revenues fell by 0.2% during the first nine months

“We have rapidly scaled up the new operating model and significantly realigned our pharmaceutical portfolio,” said Bayer CEO Bill Anderson.

However, the company maintains its forecast of revenues of between €47 and €49 billion for the year, after taking into account the exchange rate effect, although it has lowered its expectation of gross operating profit (EBITDA) before non-typical items to a range of between €10.4 and €10.7 billion, compared to the previous range of between €10.7 and €11.3 billion, given the worse forecasts for the crop business.

In this regard, Bayer’s CEO indicated that the development of the agricultural market “has been weaker than expected,” especially in Latin America, and the company continues to face cost pressure in the crop protection business, which is why it is reducing its 2024 targets for this division.

However, for 2025, it remains cautious regarding the agricultural market environment, while anticipating that “additional regulatory challenges and generic pricing pressures will put pressure on the crop protection business.”

The German group expects revenue from its drugs Nubeqa and Xarelto to impact its 2025 results

In terms of the pharmaceutical business, Anderson explained that Bayer is confident that the division will be able to meet the upper end of its forecasts this year and anticipates continued growth momentum for 2025 from cancer drug Nubeqa, while the loss of exclusivity on oral anticoagulant Xarelto will accelerate the impact in the opposite direction, putting even greater pressure on the EBITDA margin.

In the personal care sector, the executive also warned that the pace of growth will be slower than initially planned, in line with the market.

“Overall, we expect a subdued outlook for revenue and earnings for the coming year, with earnings likely to decline,” said Wolfgang Nickl, Bayer’s chief financial officer, stressing that the company plans to accelerate its cost and efficiency measures.

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(Featured image by Nastya Dulhiier via Unsplash)

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First published in PlantaDoce. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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