Bayer achieves strong marks across the board during first quarter of the year

The Bayer Group enjoyed a very successful start in 2022.

"We achieved outstanding sales and earnings growth, with particularly substantial gains for our agriculture business," said Werner Baumann, chairman of the Board of Management, on Tuesday as he presented a quarterly statement for the first quarter of 2022.

"Our forecast going forward this year remains confident despite the great uncertainties, including the instability of supply chains and energy supplies. We confirm the currency-adjusted outlook for the full year published in March."

Group sales in the first quarter increased by 14.3 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.) to 14.639 billion euros ($15.41 billion). EBITDA before special items increased by 27.5 percent to 5.251 billion euros. Net income rose by 57.5 percent to 3.291 billion euros. Core earnings per share from continuing operations advanced by 36.3 percent to 3.53 euros.

Crop Science increases earnings by around 50 percent

In the agricultural business (Crop Science), sales rose by 21.6 percent (Fx & portfolio adj.) to 8.447 billion euros thanks to substantial price and volume growth.

Bayer's sales grew by double-digit percentages in all regions and achieved particularly strong growth at Herbicides (Fx & portfolio adj. 59.8 percent) and Fungicides (Fx & portfolio adj. 18.6 percent). While there was particularly strong growth for Herbicides in North America, Fungicides generated double-digit percentage sales growth in all regions. Corn Seed & Traits posted sales gains, primarily due to price increases in all regions. Sales at Soybean Seed & Traits were level with the prior-year period (Fx & portfolio adj. up 0.8 percent), and were higher in North America due to price increases but lower in Latin America due to lower volumes.

EBITDA before special items at Crop Science advanced by 49.9 percent to 3.669 billion euros, driven mainly by higher prices. Bayer also benefited from higher volumes and ongoing efficiency programs. The EBITDA margin before special items increased significantly, by 6.6 percentage points to an all-time high of 43.4 percent.

Pharmaceuticals: sales up thanks to Eylea™, Nubeqa™ and radiology business

Sales of prescription medicines (Pharmaceuticals) rose by 2.6 percent (Fx & portfolio adj.) to 4.624 billion euros, climbing substantially in the Europe, Middle East and Africa regions.

This was made possible in part by continuing expansion of business with the ophthalmology drug Eylea™ (Fx & portfolio adj. 13.9 percent), which boosted market share in a growing market, particularly in Europe and China.

Bayer achieved gains in the Radiology category, particularly with Ultravist™ (Fx & portfolio adj. 26.4 percent). Due to encouraging growth in volumes in the United States, Europe and Japan, the cancer drug Nubeqa™ recorded a sales gain of 61.5 percent (Fx & portfolio adj.). In addition, the market launch of Kerendia™ for the treatment of patients with chronic kidney disease and type 2 diabetes during the third quarter of 2021 had a positive impact.

Consumer Health posts a strong sales increase and even better earnings growth

Bayer's sales of self-care products (Consumer Health) advanced significantly by 17.2 percent (Fx & portfolio adj.) to 1.512 billion euros.

Growth was once again broad-based, with all regions and categories contributing. Allergy & Cold had the highest growth contribution with sales up 38.7 percent (Fx & portfolio adj.). The Nutritionals category delivered another outstanding quarter of growth at 15.4 percent (Fx & portfolio adj.) with strong brands outperforming the market.

EBITDA before special items at Consumer Health advanced by 32.9 percent to 388 million euros. This was mainly due to exceptional sales growth, active price management and cost control. The EBITDA margin before special items improved significantly, by 2.4 percentage points to 25.7 percent.

Recognition of Bayer's progress in the area of sustainability

Bayer has made good progress with its sustainability targets, as was confirmed by the investor-led CA100+ initiative's Net-Zero Company Benchmark, in which Bayer was one of the top-rated companies.

Bayer received seven out of a total 10 green indicators in the 2021 Benchmark published in late March, compared with only two of 10 in 2020. The seven indicators achieved in 2021 were more than any other of the 166 evaluated companies.

ISS ESG, one of the world's leading rating agencies in the environmental, social and governance sustainable investment segment, likewise honored Bayer as a "climate outperformer" in its Climate Awareness Scorecard. ESG ratings are primarily used by investors as an indicator of a company's sustainability performance.

Furthermore, the Board of Management has decided to switch Bayer's vehicle fleet worldwide to electromobility, to take place as soon as possible. The specific time frame will be mainly influenced by market conditions and the pace of expansion of the EV charging infrastructure.