The Bayer Group experienced increased sales but lower earnings in Q2 2024. Each division performed competitively, allowing the Group to confirm its 2024 outlook. CEO Bill Anderson highlighted that the Crop Science division nearly mitigated headwinds in the challenging agricultural market. The Pharmaceuticals Division’s new products, Nubeqa™ and Kerendia™, maintained strong momentum, while Consumer Health returned to growth. Anderson emphasized Bayer’s progress in strategic priorities, showcasing the company’s ability to perform consistently while addressing long-term challenges. Over the past 154 days, significant progress has been made, affirming the company’s dual focus on performance and overcoming obstacles.
Anderson detailed progress in four strategic areas: growth and innovation, US litigation, cash and deleveraging, and the new Dynamic Shared Ownership (DSO) operating model. He noted the Pharmaceuticals Division’s strides in innovation, with significant developments in the past 90 days, including positive Phase III results for Nubeqa™ and Kerendia™. Bayer plans to launch two new drugs next year: elinzanetant for menopausal symptoms and acoramidis, a cardiology drug for which Bayer holds exclusive European marketing rights. Anderson stated, “Our Pharma pipeline is one of our biggest levers for value creation.”
Group sales rose 3.1% on a currency- and portfolio-adjusted basis to 11.144 billion euros in Q2 2024. Negative currency effects amounted to 240 million euros. EBITDA before special items decreased by 16.5% to 2.111 billion euros, primarily due to an unfavorable product mix. EBIT improved to 525 million euros after net special charges of 490 million euros, largely related to ongoing restructuring expenses. Net income was minus 34 million euros, an improvement from minus 1.887 billion euros in Q2 2023.
Free cash flow was 1.273 billion euros, driven by increased operating cash flow. Net financial debt decreased by 1.9% to 36.760 billion euros as of June 30, primarily due to cash inflows from operating activities.
Crop Science Performance
Crop Science sales increased by 1.1% to 4.981 billion euros, driven by higher sales of glyphosate-based herbicides, particularly in North America. The Herbicides segment grew by 8.7%, and Soybean Seed & Traits sales rose by 12.4%, mainly due to higher volumes in North America. Insecticides also saw growth, while Fungicides and Corn Seed & Traits sales declined due to lower volumes and prices in North and Latin America.
EBITDA before special items for Crop Science decreased by 27.7% to 524 million euros, partly due to an unfavorable product mix but with a positive currency effect of 49 million euros.
Pharmaceuticals Performance
Pharmaceuticals sales increased by 4.5% to 4.605 billion euros, with significant gains for new products Nubeqa™ (90.0%) and Kerendia™ (72.9%). Eylea™ and Mirena™ family products also saw growth. However, Xarelto™ sales declined by 10.6% due to patent expirations.
EBITDA before special items for Pharmaceuticals decreased by 4.1% to 1.322 billion euros, impacted by an unfavorable product mix and high negative currency effects, though mitigated by reduced selling expenses and lower costs for advanced clinical projects.
Consumer Health Performance
Consumer Health sales rose by 5.3% to 1.458 billion euros, with strong growth in Digestive Health, Dermatology, and Nutritionals categories. However, Allergy & Cold sales declined by 17.6%.
EBITDA before special items for Consumer Health decreased by 6.3% to 314 million euros, due to rising costs and increased brand investments, partially offset by continuous cost and price management efforts.
