Bayer: Revenue of 13.765 billion euros( Q1)was in line with expectations

On May 14, 2024, Bayer Group announced its results for the first quarter of 2024 and held a results conference. Bill Anderson, Chief Executive Officer, and Wolfgang Nickl, Chief Financial Officer, attended and reviewed the performance of the Crop Science Division and other key business units in the first quarter of 2024.

Bayer achieved sales of €13.765 billion in the first quarter of 2024. Sales in the first quarter were slightly lower than in the same period last year, but the results were generally in line with expectations, with the Crop Science division in particular performing well in a difficult market environment.

Bill Anderson, CEO of Bayer, said: "In order to get Bayer back on the right path, in March 2024 the Group identified four areas to focus on. Two months later, the group has made progress in every area.

In a challenging market environment, Bayer's agricultural business, Crop Science, achieved sales of €7.907 billion in the first quarter of 2024, down 3.0%. The decline was primarily due to lower sales of non-glyphosate herbicides and fungicides in the Europe/Middle East/Africa region.

Specifically, in the first quarter of 2024, there was a significant market-driven price decline in Glyphosate products in all regions of the world, and despite the significant sales recovery, it has not fully offset the impact of the price decline. Sales of herbicides and fungicides, two strategic businesses, declined 13.3% and 8.5%, respectively. Sales in the soybean Seeds and Traits business were flat compared to the same period last year. Sales in the Corn Seeds & Traits business increased 2.0 percent, driven by higher prices in all regions. Sales of insecticides increased by 2.3%, driven by increased sales in Europe/Middle East/Africa and North America.

Chief Financial Officer Wolfgang Nickl reviewed the Bayer Group's financial results for the first quarter of 2024, noting that the results were broadly in line with the company's expectations. In Crop Science, the company demonstrated continued momentum and is on track to achieve its fourth consecutive year of growth in the core business and remain within the company's previously set guidance.

Nickl emphasized that the company expects key drivers of growth in its core business to include yield enhancements in crop protection products and pricing increases in corn products. Despite a reduction in corn acreage, the company still expects to grow through higher pricing. In addition, for glyphosate, a key product, although prices are expected to decline, the company believes that the recovery in production will partially mitigate the impact of price declines.