Sales declined by 3.0 per cent to 7.907 billion euros, mainly due to lower volumes for non-glyphosate-based herbicides and the Fungicides business in Europe/Middle East/Africa.
The Bayer Group performed as expected in the opening months of the year. “First-quarter sales declined slightly versus the prior year. The Pharmaceuticals Division saw gains in growth and profitability, and the Crop Science Division outperformed in a difficult market. Consumer Health started slower, but is set to get back to growth over the course of the year,” CEO Bill Anderson said on Tuesday when presenting the company’s quarterly statement for the first quarter.
Crop Science outperforms peers in terms of sales trajectory in a challenging market environment
In the agricultural business (Crop Science), Bayer outperformed its peers in a difficult market. Sales declined by 3.0 percent (Fx & portfolio adj.) to 7.907 billion euros, mainly due to lower volumes for non-glyphosate-based herbicides and the Fungicides business in Europe/Middle East/Africa. With respect to glyphosate-based products, the division recorded significant market-driven price declines in all regions that were not fully offset by the strong volume recovery. The strategic business entities Herbicides and Fungicides saw sales fall by 13.3 percent and 8.5 percent (Fx & portfolio adj.), respectively. Sales at Soybean Seed & Traits were level with the prior-year period (Fx & portfolio adj.). Business at Corn Seed & Traits was up by 2.0 percent (Fx & portfolio adj.) thanks to higher prices in all regions, while sales at Insecticides advanced 2.3 percent (Fx & portfolio adj.), driven by increased volumes in Europe/Middle East/Africa and North America.
EBITDA before special items at Crop Science declined by 12.8 percent to 2.849 billion euros, mainly due to price declines for glyphosate-based products. There was also a negative currency effect of 92 million euros (Q1 2023: positive currency effect of 54 million euros).
Group sales came in at 13.765 billion euros in the first quarter of 2024 and were therefore slightly below the prior-year figure on a currency- and portfolio-adjusted basis (Fx & portfolio adj. minus 0.6 percent). There was a negative currency effect of 525 million euros (Q1 2023: positive currency effect of 102 million euros). EBITDA before special items decreased by 1.3 percent to 4.412 billion euros. EBIT advanced by 4.0 percent to 3.092 billion euros after net special charges of 207 million euros (Q1 2023: 431 million euros).
