Author: pr-moritz
Last saved by: Sascha Buhr
Company: Bayer
Document comments: V-2023-02-28

Financial News Conference:
Bayer meets adjusted guidance and takes decisive action to 
tackle challenges
•	2025 to be a pivotal year for company’s turnaround – improved performance expected from 2026 onwards
•	Comprehensive plan to boost profitability at Crop Science
•	Progress on strategic priorities
•	2024 Group sales at 46.606 billion euros (Fx & p adj. plus 0.7 percent), negative currency effects of 1.349 billion euros
•	EBITDA before special items at 10.123 billion euros (minus 13.5 percent)
•	Core earnings per share at 5.05 euros (minus 21.0 percent)
•	Net income at minus 2.552 billion euros, impairment losses at Crop Science
•	Free cash flow increases to 3.107 billion euros, net financial debt reduced to 32.626 billion euros
•	Proposed dividend of 0.11 euros per share 
•	Outlook for 2025: Sales roughly at prior-year level, EBITDA before special items and core EPS to decline

Leverkusen, March 5, 2025 – 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.

New products drive sales growth at Pharmaceuticals

Sales of prescription medicines (Pharmaceuticals) rose by 3.3 percent (Fx & portfolio adj.) to 18.131 billion euros. The division’s new products achieved significant gains, with growth rates of 78.2 percent (Fx & portfolio adj.) for Nubeqa™ and 73.9 percent (Fx & portfolio adj.) for Kerendia™. It also posted continued sales growth for the ophthalmology drug Eylea™, with an increase of 5.1 percent (Fx & portfolio adj.), as well as in the Radiology business, largely driven by higher volumes and prices for CT Fluid Delivery and Ultravist™. In addition, sales of the pulmonary hypertension treatment Adempas™ rose by a substantial 10.5 percent (Fx & portfolio adj.), with particularly strong gains in the United States. These positive effects were partially offset by declines for Xarelto™ in particular, with sales of the oral anticoagulant falling 13.0 percent (Fx & portfolio adj.) due to patent expirations.

EBITDA before special items at Pharmaceuticals decreased by 9.0 percent to 4.722 billion euros, mainly due to a negative currency effect of 491 million euros (2023: 221 million euros). Earnings were also impacted by higher provisions for the STI program as well as shifts in the product mix, reflecting declines for Xarelto™ and higher sales for Nubeqa™ and Eylea™ in particular, as well as the related increase in license fees. However, Pharmaceuticals was able to partially offset these effects thanks to lower expenses for projects in advanced clinical development and decreased selling expenses for its more mature products, while simultaneously increasing investments in early-stage research as well as in cell and gene therapy and chemoproteomics technologies. The EBITDA margin before special items decreased by 2.7 percentage points to 26.0 percent.

Consumer Health registers growth (Fx & portfolio adj.) in almost all categories

Sales of self-care products (Consumer Health) rose by 1.9 percent (Fx & portfolio adj.) to 5.870 billion euros against a strong prior year, with gains in almost all categories. Sales growth was strongest at Dermatology, which saw a 9.7 percent increase (Fx & portfolio adj.) that was primarily driven by continued strong demand for Bepanthen™. Business was also up by a substantial 8.2 percent (Fx & portfolio adj.) at Digestive Health, partly thanks to a normalized supply situation. By contrast, the division registered considerable declines in the Allergy & Cold business against a strong prior year, with sales falling 11.5 percent (Fx & portfolio adj.) due to a weaker season and inventory optimization by customers in the United States.

EBITDA before special items at Consumer Health decreased by 3.2 percent to 1.366 billion euros, mainly due to a negative currency effect of 46 million euros (2023: 133 million euros). Thanks to its continuous cost and price management efforts, the division was able to offset an increase in the cost of goods sold and higher investments in marketing and developing products. The EBITDA margin before special items came in at 23.3 percent, down 0.1 percentage points.

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.

Sustainability: Top marks for climate and water efforts

Bayer once again made major progress in its sustainability endeavors in 2024. The company is well on track to achieve its three “100 million” targets by 2030, which involve supporting smallholder farmers and providing access to modern contraception as well as self-care products. As part of its Climate Transition and Transformation Plan, Bayer last year defined concrete targets and mapped out the measures it plans to take in order to achieve net zero emissions across its entire value chain by 2050. The Science Based Targets initiative recently confirmed the company’s targets for reducing greenhouse gas emissions and validated its path to net zero. As the most important step in this regard, Bayer will continue its efforts to switch to renewable sources to meet its power and energy needs. In 2024, the company entered into agreements to secure significant amounts of power from renewable energy sources.

Bayer’s sustainability targets and related commitments to supporting people and protecting the environment will continue to be an integral part of its Group strategy moving forward, with the Board of Management having reaffirmed the sustainability strategy at the end of last year. CDP, a prominent non-profit organization, has recognized the company’s efforts in this area, having awarded Bayer the highest score of A in the categories of water and climate.

Notes:
The following tables contain the key data for the Bayer Group and its divisions
for the full year and the fourth quarter of 2024.

The complete Annual Report 2024 is available on the internet at:
www.bayer.com/annualreport

The speech given by the Bayer Board of Management to the media will be available online from around 10 a.m. CET at: www.bayer.com/speeches

Live broadcast of the Financial News Conference from around 10 a.m. CET and recording available from around 3 p.m. CET at: www.bayer.com/live-mc

Additional information for investors, including presentation charts, and access to the live broadcast of the Investor Video Call (from around 2 p.m. CET) and recording (from around 6 p.m. CET) available at: www.bayer.com/live-ic

Print-quality photos will be available here shortly after the news conference.

Contact for media inquiries:
Christian Hartel, phone +49 214 30-47686
Email: christian.hartel@bayer.com

Tino Andresen, phone +49 214 30-66048
Email: tino.andresen@bayer.com

Contact for investor inquiries:
Bayer Investor Relations Team, phone +49 214 30-72704
Email: ir@bayer.com 
www.bayer.com/en/investors/ir-team

Find more information at www.bayer.com.

tia	(2025-0039E)

Forward-Looking Statements 
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. 

Bayer Key Data, Fourth Quarter and Full Year 2024
(Continuing operations)

Bayer Group
(EUR million)

Q4 2023

Q4 2024

Change
(%)

FY 2023

FY 2024

Change
(%)

Sales

11,862

11,729

-1.1
+0.1*

47,637

46,606

-2.2
+0.7*

EBITDA before special items | 3,023 | 2,349 | -22.3 | 11,706 | 10,123 | -13.5
EBITDA margin before special items | 25.5% | 20.0% | - | 24.6% | 21.7% | -
EBIT | 2,189 | 134 | -93.9 | 612 | -71 | -
Special items | 247 | -722 | - | -6,977 | -5,507 | -
EBIT before special items | 1,942 | 855 | -56.0 | 7,589 | 5,436 | -28.4
Net income** | 1,337 | -335 | - | -2,941 | -2,552 | -
Earnings per share (EUR)** | 1.36 | -0.34 | - | -2.99 | -2.60 | -
Core earnings per share (EUR) | 1.85 | 1.05 | -43.2 | 6.39 | 5.05 | -21.0
Free cash flow** | 4,261 | 3,312 | -22.3 | 1,311 | 3,107 | +137.0
Number of employees*** | 99,723 | 92,815 | -6.9 | 99,723 | 92,815 | -6.9

Crop Science
(EUR million)

Q4 2023

Q4 2024

Change
(%)

FY 2023

FY 2024

Change
(%)

Sales

5,630

5,385

-4.4
-2.3*

23,270

22,259

-4.3
-2.0*

EBITDA before special items | 1,070 | 917 | -14.3 | 5,038 | 4,325 | -14.2
EBITDA margin before special items | 19.0% | 17.0% | - | 21.7% | 19.4% | -
EBIT | 975 | -170 | - | -3,486 | -2,756 | -
Special items | 579 | -409 | - | -6,034 | -4,416 | -
EBIT before special items | 396 | 239 | -39.6 | 2,548 | 1,660 | -34.9

Pharmaceuticals 
(EUR million)

Q4 2023

Q4 2024

Change
(%)

FY 2023

FY 2024

Change
(%)

Sales

4,579

4,658

+1.7
+2.4*

18,081

18,131

+0.3
+3.3*

EBITDA before special items | 1,266 | 1,104 | -12.8 | 5,189 | 4,722 | -9.0
EBITDA margin before special items | 27.6% | 23.7% | - | 28.7% | 26.0% | -
EBIT | 935 | 110 | -88.2 | 3,971 | 2,790 | -29.7
Special items | -87 | -355 | - | -224 | -578 | -
EBIT before special items | 1,022 | 465 | -54.5 | 4,195 | 3,368 | -19.7

Consumer Health 
(EUR million)

Q4 2023

Q4 2024

Change
(%)

FY 2023

FY 2024

Change
(%)

Sales

1,578

1,567

-0.7
-0.9*

6,027

5,870

-2.6
+1.9*

EBITDA before special items | 384 | 361 | -6.0 | 1,411 | 1,366 | -3.2
EBITDA margin before special items | 24.3% | 23.0% | - | 23.4% | 23.3% | -
EBIT | 424 | 442 | +4.2 | 1,158 | 1,028 | -11.2
Special items | 131 | 184 | - | 110 | 59 | -
EBIT before special items | 293 | 258 | -11.9 | 1,048 | 969 | -7.5

Sales changes on a currency- and portfolio-adjusted basis (Fx & portfolio adj.), EBIT(DA), special items, core earnings per share and free cash flow are not defined in the International Financial Reporting Standards and should therefore be regarded only as supplementary information. For the definition of these indicators, see the current annual report at www.bayer.com.

* Fx & portfolio adj. / ** Including discontinued operations / *** Full-time equivalents at end of period

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