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HomePosts Tagged "Bayer Group"
Agribusiness, Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Company News, Finance, World

Company’s Crop Science division posts slight increase in sales and sharp fall in earnings.

The Bayer Group generated increased sales and lower earnings in the second quarter of 2024. Each business delivered a competitive performance in their respective industries, positioning the Group to confirm its 2024 outlook. “Our Crop Science business nearly offset headwinds in a challenging agricultural market environment,” CEO Bill Anderson said while presenting the company’s half-year financial report.

Group sales rose by 3.1 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.) to 11.144 billion euros in the second quarter of 2024. There was a negative currency effect of 240 million euros (Q2 2023: 553 million euros). EBITDA before special items decreased by 16.5 per cent to 2.111 billion euros. This figure included a negative currency effect of 129 million euros (Q2 2023: 120 million euros). The decline in earnings was mainly due to an unfavourable product mix. In addition, the provisions for the Group-wide short-term incentive program were lower in the prior-year period. EBIT improved to 525 million euros (Q2 2023: minus 956 million euros) after net special charges of 490 million euros (Q2 2023: 2.490 billion euros). The special charges primarily related to expenses for ongoing restructuring measures and affected all divisions and functional areas. Net income amounted to minus 34 million euros (Q2 2023: minus 1.887 billion euros).

Business up slightly at Crop Science

In the agricultural business (Crop Science), sales increased by 1.1 percent (Fx & portfolio adj.) to 4.981 billion euros. Growth was mainly driven by higher sales of glyphosate-based herbicides, with a particularly strong performance in North America. Despite a decline in sales of non-glyphosate-based products, the Herbicides strategic business entity posted overall growth of 8.7 percent (Fx & portfolio adj.). Sales at Soybean Seed & Traits increased by a significant 12.4 percent (Fx & portfolio adj.), mainly thanks to substantially higher volumes in North America. Business was also up at Insecticides, with growth of 6.9 percent (Fx & portfolio adj.). By contrast, sales at Fungicides were down amid a soft market environment, falling 12.4 percent (Fx & portfolio adj.) as a result of lower volumes and prices in North and Latin America. Sales also decreased at Corn Seed & Traits, which saw a decline of 2.8 percent (Fx & portfolio adj.) that was mainly attributable to lower volumes in Latin and North America amid a decline in planted acreages.

EBITDA before special items at Crop Science decreased by 27.7 percent to 524 million euros, partly due to an unfavourable product mix. By contrast, there was a positive currency effect of 49 million euros (Q2 2023: negative currency effect of 96 million euros).

Group outlook confirmed

Bayer confirmed its Group outlook for full-year 2024. “We remain on track to deliver,” Anderson said. For the Crop Science Division, the company expects currency- and portfolio-adjusted sales growth and the EBITDA margin before special items to come in at the lower end of the projected ranges (between minus 1 and plus 3 percent, and between 20 and 22 percent, respectively). For the Pharmaceuticals Division, Bayer has upgraded its forecast for currency- and portfolio-adjusted sales growth to between 0 and 3 percent (previously: between minus 4 and 0 percent).

Company’s Crop Science division posts slight increase

Agribusiness, Agro chems – Chemicals, Company News, Finance, Inputs, World

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).

Sales declined by 3.0 per cent to