1
Quarterly Statement
First Quarter of 2024
Q1 performance as expected
- Group sales at €13.8 billion (Fx & p adj. - 0.6%), currency headwinds of €0.5 billion
- EBITDA before special items falls slightly to €4.4 billion (- 1.3%)
-
Sales and earnings down at
Crop Science and Consumer Health - Pharmaceuticals posts higher sales and earnings
- Core earnings per share at €2.82 (- 4.4%)
- Net income at €2.0 billion
- Free cash flow at minus €2.6 billion
- Currency-adjustedGroup outlook confirmed
Bayer Quarterly Statement as of March 31, 2024 | 2 |
Bayer Group Key Data
Change (%) | ||||||||
€ million | Q1 2023 | Q1 2024 | Reported | Fx & p adj. | ||||
Sales | 14,389 | 13,765 | - 4.3 | - 0.6 | ||||
Change in sales1 | ||||||||
Volume | - 5.8% | - 0.3% | ||||||
Price | + 4.7% | - 0.3% | ||||||
Currency | + 0.7% | - 3.7% | ||||||
Portfolio | - 1.3% | 0.0% | ||||||
Sales by region | ||||||||
Europe/Middle East/Africa | 4,639 | 4,491 | - 3.2 | + 2.1 | ||||
North America | 5,906 | 5,760 | - 2.5 | - 1.2 | ||||
Asia/Pacific | 2,181 | 1,914 | - 12.2 | - 5.9 | ||||
Latin America | 1,663 | 1,600 | - 3.8 | + 0.7 | ||||
EBITDA1 | 4,318 | 4,205 | - 2.6 | |||||
Special items1 | (153) | (207) | ||||||
EBITDA before special items1 | 4,471 | 4,412 | - 1.3 | |||||
EBITDA margin before special items1 | 31.1% | 32.1% | ||||||
EBIT1 | 2,973 | 3,092 | + 4.0 | |||||
Special items1 | (431) | (207) | ||||||
EBIT before special items1 | 3,404 | 3,299 | - 3.1 | |||||
Financial result | (367) | (501) | . | |||||
Net income (from continuing and discontinued operations) | 2,178 | 2,000 | - 8.2 | |||||
Earnings per share from continuing and discontinued operations (€) | 2.22 | 2.04 | - 8.2 | |||||
Core earnings per share1 from continuing operations (€) | 2.95 | 2.82 | - 4.4 | |||||
Net cash provided by (used in) operating activities | ||||||||
(from continuing and discontinued operations) | (3,550) | (2,150) | . | |||||
Free cash flow1 | (4,102) | (2,626) | . | |||||
Net financial debt (at end of period) | 36,077 | 37,488 | + 3.9 | |||||
Cash flow-relevant capital expenditures | ||||||||
(from continuing and discontinued operations) | 466 | 446 | - 4.3 | |||||
Research and development expenses | 1,571 | 1,426 | - 9.2 | |||||
Depreciation, amortization and impairment losses/loss reversals | 1,345 | 1,113 | - 17.2 | |||||
Number of employees (at end of period)2 | 101,735 | 98,189 | - 3.5 | |||||
Personnel expenses (including pension expenses) | 3,259 | 3,040 | - 6.7 | |||||
Fx & p adj. = currency- and portfolio-adjusted
-
For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Employees calculated as full-time equivalents (FTEs)
Bayer Quarterly Statement as of March 31, 2024 | 3 |
Key Events
Board of Management
The Supervisory Board of Bayer AG appointed Julio Triana to Bayer's Board of Management effective April 1, 2024. He became President of the Consumer Health Division effective May 1, 2024, and succeeded Heiko Schipper, who had asked the Supervisory Board to bring forward the end date of his contract. Schipper left the company effective April 30, 2024.
Innovations and product approvals
In March, we announced positive topline results from the Phase III long-term study OASIS 3 relating to our investigational compound elinzanetant, which we are investigating as a non-hormonal treatment for vasomotor symptoms associated with menopause. This builds on the existing evidence from the Phase III studies OASIS 1 and 2. We will submit data from the OASIS 1, 2 and 3 studies to regulatory authorities for approval of marketing authorizations for elinzanetant.
Portfolio changes
Also in March, we announced our acquisition of the exclusive marketing rights for acoramidis in Europe from Eidos Therapeutics Inc., BridgeBio International GmbH and BridgeBio Europe B.V. Acoramidis is a highly potent and selective small molecule, orally administered transthyretin (TTR) stabilizer for the treatment of patients suffering from transthyretin amyloid cardiomyopathy (ATTR CM). A marketing authorization application (MAA) was filed with the European Medicines Agency (EMA) in January 2024. BridgeBio and the affiliates will receive up to US$310 million in upfront and near-term milestone payments and are eligible to receive additional undisclosed sales milestone payments and tiered royalties beginning in the low-thirties percent.
Earnings Performance of the Bayer Group1
First quarter of 2024
Group sales
Group sales came in at €13,765 million in the first quarter of 2024 (Q1 2023: €14,389 million), representing a change of -0.6% on a currency- and portfolio-adjusted basis (Fx & portfolio adj.), and -4.3% on a reported basis. There was a negative currency effect of €525 million (Q1 2023: positive currency effect of €102 million). Sales in Germany amounted to €729 million (Q1 2023: €768 million).
Sales at Crop Science were down year on year, largely due to lower volumes for our non-glyphosate- based herbicides and in our Fungicides business. We additionally recorded substantial price declines for our glyphosate-based products that were not fully offset by the impact of volumes returning to normal levels. Sales at Pharmaceuticals were up, driven by significant gains for Nubeqa™ and Kerendia™ as well as continued sales growth for Eylea™ and our Radiology business. However, growth was mainly slowed by declines for Adalat™ in China. Sales at Consumer Health declined slightly, mostly due to lower sales in the Allergy & Cold category.
EBITDA before special items
Group EBITDA before special items decreased by 1.3% to €4,412 million. This figure included a negative currency effect of €206 million (Q1 2023: €4 million). Crop Science registered a decline in EBITDA before special items that was mainly due to the fall in prices for our glyphosate-based products. The increase in EBITDA before special items at Pharmaceuticals was mainly due to lower expenses for marketing and R&D activities. Consumer Health recorded a decline in EBITDA before special items that was primarily driven by currency effects. The Group EBITDA margin before special items came in at 32.1%.
- For definition of alternative performance measures see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Bayer Quarterly Statement as of March 31, 2024 | 4 |
EBIT and special items
EBIT of the Bayer Group came in at €3,092 million (Q1 2023: €2,973 million) after net special charges
of €207 million (Q1 2023: €431 million). The special charges primarily related to expenses for ongoing restructuring measures and affected all divisions and functional areas. EBIT before special items decreased by 3.1% to €3,299 million (Q1 2023: €3,404 million).
The following special items were taken into account in calculating EBIT and EBITDA:
A 1 | ||||||||
Special Items1 by Category | ||||||||
EBIT | EBIT | EBITDA | EBITDA | |||||
€ million | Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | ||||
Total special items | (431) | (207) | (153) | (207) | ||||
Restructuring | (115) | (200) | (115) | (199) | ||||
of which in the Reconciliation | (27) | (17) | (27) | (17) | ||||
Acquisition/integration | (2) | - | (2) | - | ||||
Divestments | (48) | 1 | (48) | 1 | ||||
Litigations/legal risks | (46) | 4 | (46) | 3 | ||||
of which in the Reconciliation | (60) | (26) | (60) | (26) | ||||
Impairment losses/loss reversals² | (278) | - | - | - | ||||
Other | 58 | (12) | 58 | (12) | ||||
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Where not already included in the other special items categories
Net income
After a financial result of minus €501 million (Q1 2023: minus €367 million), income before income taxes
amounted to €2,591 million (Q1 2023: €2,606 million). The deterioration of the financial result was largely due to an increase in interest expense as a result of higher interest rates, as well as hyperinflationary effects arising primarily in Argentina. After income tax expense of €589 million (Q1 2023: €424 million) and accounting for noncontrolling interest, net income amounted to €2,000 million (Q1 2023: €2,178 million).
A 2 | ||||
Financial Result1 | ||||
€ million | Q1 2023 | Q1 2024 | ||
Income (loss) from investments in affiliated companies | (47) | 2 | ||
Net interest expense | (213) | (306) | ||
Other financial income/(expenses) | (107) | (197) | ||
of which interest portion of discounted provisions | (114) | (101) | ||
of which exchange gain (loss) | 15 | (41) | ||
of which miscellaneous financial income/(expenses) | (8) | (55) | ||
Total | (367) | (501) | ||
of which special items (net) | (92) | (52) | ||
- Further information on the financial result is given in Note [10] of the Annual Report 2023.
Bayer Quarterly Statement as of March 31, 2024 | 5 |
Core earnings per share
Core earnings per share decreased by 4.4% to €2.82 (Q1 2023: €2.95), mainly due to the decline in earnings at the Crop Science Division.
Earnings per share (total) came in at €2.04 (Q1 2023: €2.22). The difference between this figure and the one for core earnings per share is mainly due to amortization.
A 3 | ||||
Core Earnings per Share1 | ||||
€ million | Q1 2023 | Q1 2024 | ||
EBIT1 (as per income statements) | 2,973 | 3,092 | ||
Amortization and impairment losses/loss reversals on goodwill and other intangible assets | 665 | 696 | ||
Impairment losses/loss reversals on property, plant and equipment, and accelerated depreciation | ||||
included in special items | 285 | 26 | ||
Special items (other than accelerated depreciation, amortization and impairment losses/loss reversals) | 153 | 207 | ||
Core EBIT1 | 4,076 | 4,021 | ||
Financial result (as per income statements) | (367) | (501) | ||
Special items in the financial result2 | 92 | 52 | ||
Income taxes (as per income statements) | (424) | (589) | ||
Special items in income taxes | - | - | ||
Tax effects related to amortization, impairment losses/loss reversals and special items | (472) | (207) | ||
Income after income taxes attributable to noncontrolling interest (as per income statements) | (4) | (2) | ||
Above-mentioned adjustments attributable to noncontrolling interest | - | - | ||
Core net income from continuing operations | 2,901 | 2,774 | ||
Shares (million) | ||||
Weighted average number of shares | 982.42 | 982.42 | ||
€ | ||||
Core earnings per share from continuing operations1 | 2.95 | 2.82 |
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
- Includes in particular the changes in the fair value of the interests in Century Therapeutics, United States, and Pyxis Oncology, United States, as well as interest cost for the provisions for litigations/legal risks
Bayer Quarterly Statement as of March 31, 2024 | 6 |
Business Development by Division
Crop Science
A 4 | ||||||||
Key Data - Crop Science | ||||||||
Change (%)1 | ||||||||
€ million | Q1 2023 | Q1 2024 | Reported | Fx & p adj. | ||||
Sales | 8,351 | 7,907 | - 5.3 | - 3.0 | ||||
Change in sales1 | ||||||||
Volume | - 8.2% | - 0.1% | ||||||
Price | + 7.1% | - 2.9% | ||||||
Currency | + 1.6% | - 2.3% | ||||||
Portfolio | - 1.6% | 0.0% | ||||||
Sales by region | ||||||||
Europe/Middle East/Africa | 2,297 | 2,079 | - 9.5 | - 2.6 | ||||
North America | 4,182 | 4,122 | - 1.4 | - 0.2 | ||||
Asia/Pacific | 632 | 519 | - 17.9 | - 12.3 | ||||
Latin America | 1,240 | 1,187 | - 4.3 | - 8.2 | ||||
EBITDA1 | 3,249 | 2,789 | - 14.2 | |||||
Special items1 | (18) | (60) | ||||||
EBITDA before special items1 | 3,267 | 2,849 | - 12.8 | |||||
EBITDA margin before special items1 | 39.1% | 36.0% | ||||||
EBIT1 | 2,319 | 2,063 | - 11.0 | |||||
Special items1 | (296) | (59) | ||||||
EBIT before special items1 | 2,615 | 2,122 | - 18.9 | |||||
Net cash used in operating activities | (3,364) | (2,865) | . | |||||
Cash flow-relevant capital expenditures | 208 | 210 | + 1.0 | |||||
Research and development expenses | 600 | 625 | + 4.2 | |||||
Fx & p adj. = currency- and portfolio-adjusted
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
First quarter of 2024
Sales
Sales at Crop Science decreased by 3.0% (Fx & portfolio adj.) to €7,907 million in the first quarter of 2024, mainly due to lower volumes for our non-glyphosate-based herbicides and our Fungicides business
in Europe/Middle East/Africa. By contrast, our glyphosate-based products saw a substantial increase in volumes, which was more than offset by significant price declines as a result of reduced prices for generics.
- Sales at Corn Seed & Traits increased thanks to higher prices in all regions. However, volumes were down mainly in North America due to lower acreages.
- At Herbicides, we recorded substantial volume declines for non-glyphosate-based products, especially in Europe/Middle East/Africa, largely driven by adverse weather conditions and increased generic pressure. With respect to our glyphosate-based products, we recorded significant market-driven price declines in all regions that were not fully offset by the impact of volumes returning to normal levels. Particularly in Latin America, the negative price effect clearly outweighed the growth in volumes.
- Business at Fungicides was down, mainly due to a decline in volumes in Europe/Middle East/Africa that was also largely driven by adverse weather conditions and increased generic pressure. By contrast, higher volumes in Latin and North America had a positive impact.
Bayer Quarterly Statement as of March 31, 2024 | 7 |
- Sales at Soybean Seed & Traits were level with the prior-year period.
- Sales at Insecticides were up, driven by higher volumes in Europe/Middle East/Africa and North America that were partially offset by a sales decline in Latin America.
- At Cotton Seed, volumes were down in North America amid shifts in demand into the second quarter.
- Business at Vegetable Seeds expanded thanks to higher prices in all regions.
- The reporting unit "Other" benefited from advance sales in the other parts of our seed portfolio. By contrast, we recorded declines at SeedGrowth as well as in the remaining Environmental Science businesses Lawn & Garden and Industrial Turf & Ornamental (IT&O).
A 5 | ||||||||
Sales by Strategic Business Entity | ||||||||
Change (%)1 | ||||||||
€ million | Q1 2023 | Q1 2024 | Reported | Fx & p adj. | ||||
Crop Science | 8,351 | 7,907 | - 5.3 | - 3.0 | ||||
Corn Seed & Traits | 3,268 | 3,242 | - 0.8 | + 2.0 | ||||
Herbicides | 1,889 | 1,601 | - 15.2 | - 13.3 | ||||
of which glyphosate-based products2 | 705 | 657 | - 6.8 | - 6.4 | ||||
Fungicides | 1,054 | 935 | - 11.3 | - 8.5 | ||||
Soybean Seed & Traits | 608 | 604 | - 0.7 | + 0.1 | ||||
Insecticides | 460 | 459 | - 0.2 | + 2.3 | ||||
Cotton Seed | 314 | 290 | - 7.6 | - 7.0 | ||||
Vegetable Seeds | 181 | 184 | + 1.7 | + 5.0 | ||||
Other | 577 | 592 | + 2.6 | + 5.0 | ||||
Fx & p adj. = currency- and portfolio-adjusted
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
- As of 2024, our business with glyphosate-based products is for the first time being reported separately within the Herbicides strategic business entity; the prior-year figures are likewise shown separately.
Earnings
EBITDA before special items at Crop Science decreased by 12.8% to €2,849 million in the first quarter of 2024 (Q1 2023: €3,267 million), mainly due to price declines for our glyphosate-based products. There was also a negative currency effect of €92 million (Q1 2023: positive currency effect of €54 million). The EBITDA margin before special items declined by 3.1 percentage points to 36.0%.
EBIT came in at €2,063 million (Q1 2023: €2,319 million) in the first quarter of 2024 after net special
charges of €59 million (Q1 2023: €296 million) that primarily related to ongoing restructuring measures.
A 6 | ||||||||
Special Items1 Crop Science | ||||||||
EBIT | EBIT | EBITDA | EBITDA | |||||
€ million | Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | ||||
Restructuring | (27) | (89) | (27) | (89) | ||||
Acquisition/integration | (2) | - | (2) | - | ||||
Divestments | (18) | - | (18) | - | ||||
Litigation/legal risks | 30 | 30 | 30 | 29 | ||||
Impairment losses/loss reversals | (278) | - | - | - | ||||
Other | (1) | - | (1) | - | ||||
Total special items | (296) | (59) | (18) | (60) | ||||
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Bayer Quarterly Statement as of March 31, 2024 | 8 |
Pharmaceuticals
A 7 | ||||||||
Key Data - Pharmaceuticals | ||||||||
Change (%)1 | ||||||||
€ million | Q1 2023 | Q1 2024 | Reported | Fx & p adj. | ||||
Sales | 4,407 | 4,358 | - 1.1 | + 3.9 | ||||
Change in sales1 | ||||||||
Volume | - 2.4% | + 3.1% | ||||||
Price | - 0.7% | + 0.8% | ||||||
Currency | - 0.6% | - 5.0% | ||||||
Portfolio | - 1.0% | 0.0% | ||||||
Sales by region | ||||||||
Europe/Middle East/Africa | 1,771 | 1,822 | + 2.9 | + 6.1 | ||||
North America | 1,110 | 1,110 | - | + 1.1 | ||||
Asia/Pacific | 1,305 | 1,187 | - 9.0 | - 2.0 | ||||
Latin America | 221 | 239 | + 8.1 | + 35.4 | ||||
EBITDA1 | 1,064 | 1,099 | + 3.3 | |||||
Special items1 | (42) | (95) | ||||||
EBITDA before special items1 | 1,106 | 1,194 | + 8.0 | |||||
EBITDA margin before special items1 | 25.1% | 27.4% | ||||||
EBIT1 | 806 | 872 | + 8.2 | |||||
Special items1 | (42) | (96) | ||||||
EBIT before special items1 | 848 | 968 | + 14.2 | |||||
Net cash provided by operating activities | 707 | 809 | + 14.4 | |||||
Cash flow-relevant capital expenditures | 205 | 178 | - 13.2 | |||||
Research and development expenses | 880 | 756 | - 14.1 | |||||
Fx & p adj. = currency- and portfolio-adjusted
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
First quarter of 2024
Sales
In the Pharmaceuticals Division, we increased sales by 3.9% (Fx & portfolio adj.) to €4,358 million in the first quarter of 2024. We registered significant gains for our new products Nubeqa™ and Kerendia™, and also posted continued sales growth for Eylea™ and our Radiology business. By contrast, negative developments included a decline in Adalat™ sales due to tender procedures in China.
- We registered a slight increase in sales for our oral anticoagulant Xarelto™ following a weak prior-year quarter. Gains in Europe were mainly offset by declines in Canada. Overall, business was held back by competitive pressure from generic products, as expected. License revenues - recognized as sales - in the United States, where Xarelto™ is marketed by a subsidiary of Johnson & Johnson, were down against the prior-year quarter.
- Sales of our ophthalmology drug Eylea™ advanced thanks to higher volumes and prices, with business benefiting particularly from increased volumes in Canada.
- Sales of our cancer drug Nubeqa™ grew significantly, with gains in all regions. The product therefore maintained its growth momentum, especially in the United States, Europe and China, with strong increases in volumes.
- We also achieved considerable gains with Kerendia™, our product for the treatment of patients with chronic kidney disease associated with type 2 diabetes, mainly thanks to a substantial rise in volumes in the United States. The expansion of business in China also contributed to the positive development.
- Sales of our pulmonary hypertension treatment Adempas™ rose significantly, especially in the United States. As in the past, sales reflected the proportionate recognition of the upfront and milestone payments resulting from the sGC collaboration with Merck & Co., United States.
- Our Kogenate™/Kovaltry™/Jivi™ blood-clotting medicines saw a strong decline in sales as a result of competitive pressure, particularly in the United States.
Bayer Quarterly Statement as of March 31, 2024 | 9 |
- Sales of our YAZ™/Yasmin™/Yasminelle™ line of oral contraceptives developed very positively compared with a weak prior-year quarter.
- We recorded significant declines for Aspirin™ Cardio, our product for secondary prevention of heart attacks, with business down in China in particular.
- Sales of our cancer drug Stivarga™ also fell markedly, especially in the United States.
- Our Radiology business continued to post encouraging gains, especially for CT Fluid Delivery and Ultravist™, primarily thanks to strong price increases.
A 8 | ||||||||
Best-Selling Pharmaceuticals Products | ||||||||
Change (%)1 | ||||||||
€ million | Q1 2023 | Q1 2024 | Reported | Fx & p adj. | ||||
Xarelto™ | 943 | 926 | - 1.8 | + 1.7 | ||||
Eylea™ | 789 | 782 | - 0.9 | + 3.4 | ||||
Mirena™/Kyleena™/Jaydess™ | 303 | 293 | - 3.3 | + 0.1 | ||||
Nubeqa™ | 178 | 283 | + 59.0 | + 64.1 | ||||
Adempas™ | 152 | 171 | + 12.5 | + 14.8 | ||||
Kogenate™/Kovaltry™/Jivi™ | 192 | 167 | - 13.0 | - 11.0 | ||||
YAZ™/Yasmin™/Yasminelle™ | 152 | 165 | + 8.6 | + 21.6 | ||||
Aspirin™ Cardio | 181 | 151 | - 16.6 | - 7.5 | ||||
CT Fluid Delivery | 124 | 134 | + 8.1 | + 9.9 | ||||
Adalat™ | 177 | 127 | - 28.2 | - 23.0 | ||||
Ultravist™ | 118 | 114 | - 3.4 | + 10.0 | ||||
Stivarga™ | 133 | 112 | - 15.8 | - 10.1 | ||||
Gadovist™ product family | 118 | 105 | - 11.0 | - 3.3 | ||||
Kerendia™ | 52 | 85 | + 63.5 | + 66.2 | ||||
Betaferon™/Betaseron™ | 57 | 46 | - 19.3 | - 18.1 | ||||
Total best-selling products | 3,669 | 3,661 | - 0.2 | + 4.6 | ||||
Proportion of Pharmaceuticals sales | 83% | 84% | ||||||
Fx & p adj. = currency- and portfolio-adjusted
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Earnings
We increased EBITDA before special items at Pharmaceuticals by 8.0% to €1,194 million in the first quarter of 2024 (Q1 2023: €1,106 million). Higher investments in R&D activities for our cell and gene therapy and chemoproteomics technologies were offset by significantly lower expenses for projects in advanced clinical development. With respect to our sales activities, our cost management efforts generated savings, especially for our more mature products, that clearly outweighed the increase in costs for our new products. To a lesser extent, earnings also benefited from higher income from the sale of noncore businesses. There was a high negative currency effect of €127 million (Q1 2023: €6 million). The EBITDA margin before special items increased by 2.3 percentage points to 27.4%.
EBIT came in at €872 million (Q1 2023: €806 million) in the first quarter of 2024 after net special charges
of €96 million (Q1 2023: €42 million) that mainly related to ongoing restructuring projects.
A 9 | ||||||||
Special Items1 Pharmaceuticals | ||||||||
EBIT | EBIT | EBITDA | EBITDA | |||||
€ million | Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | ||||
Restructuring | (55) | (85) | (55) | (84) | ||||
Divestments | (30) | 1 | (30) | 1 | ||||
Litigations/legal risks | (16) | - | (16) | - | ||||
Other | 59 | (12) | 59 | (12) | ||||
Total special items | (42) | (96) | (42) | (95) | ||||
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Bayer Quarterly Statement as of March 31, 2024 | 10 |
Consumer Health
A 10 | ||||||||
Key Data - Consumer Health | ||||||||
Change (%)1 | ||||||||
€ million | Q1 2023 | Q1 2024 | Reported | Fx & p adj. | ||||
Sales | 1,573 | 1,432 | - 9.0 | - 1.8 | ||||
Change in sales1 | ||||||||
Volume | - 3.9% | - 12.1% | ||||||
Price | + 8.0% | + 10.3% | ||||||
Currency | - 0.1% | - 6.8% | ||||||
Portfolio | 0.0% | - 0.4% | ||||||
Sales by region | ||||||||
Europe/Middle East/Africa | 516 | 523 | + 1.4 | + 6.5 | ||||
North America | 612 | 528 | - 13.7 | - 11.6 | ||||
Asia/Pacific | 244 | 208 | - 14.8 | - 10.1 | ||||
Latin America | 201 | 173 | - 13.9 | + 16.8 | ||||
EBITDA1 | 373 | 322 | - 13.7 | |||||
Special items1 | (6) | (9) | ||||||
EBITDA before special items1 | 379 | 331 | - 12.7 | |||||
EBITDA margin before special items1 | 24.1% | 23.1% | ||||||
EBIT1 | 282 | 229 | - 18.8 | |||||
Special items1 | (6) | (9) | ||||||
EBIT before special items1 | 288 | 238 | - 17.4 | |||||
Net cash provided by operating activities | 183 | 219 | + 19.7 | |||||
Cash flow-relevant capital expenditures | 20 | 26 | + 30.0 | |||||
Research and development expenses | 52 | 55 | + 5.8 | |||||
Fx & p adj. = currency- and portfolio-adjusted
- For definition see Annual Report 2023, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
First quarter of 2024
Sales
Sales at Consumer Health declined by 1.8% (Fx & portfolio adj.) to €1,432 million in the first quarter of 2024. We experienced reduced customer demand following a strong previous quarter in which inventories were replenished due to an improved supply situation. In addition, business in the Allergy & Cold category was down significantly due to a weaker cold season. By contrast, we registered encouraging gains at Digestive Health amid an improved supply situation. Sales were also up in the Dermatology category, partly thanks to Bepanthen™.
- We recorded encouraging sales growth in Europe/Middle East/Africa. The Digestive Health category achieved double-digit percentage growth, mainly driven by Iberogast™ and Rennie™. We also recorded a strong increase in sales at Nutritionals. Business in the Allergy & Cold category was down substantially due to weaker demand for cough and cold products. Sales also decreased at Pain & Cardio.
- Sales in North America decreased significantly, with declines in all categories that were partly due to customers optimizing their inventories. This development primarily impacted the allergy business, especially compared with the strong prior-year quarter, and the Pain & Cardio category. In addition, sales of cough and cold products were held back by a weaker season.
- Business in Asia/Pacific was down significantly. We registered a particularly large decline at Nutritionals amid a weaker market environment, especially in Australia and Southeast Asia. The Allergy & Cold and Pain & Cardio categories also saw a drop in sales against a strong prior year. By contrast, we recorded substantial growth at Dermatolgy, mainly driven by Kang Wang™, which performed particularly well in China, and Bepanthen™.
- We recorded strong sales growth (Fx & portfolio adj.) in Latin America, especially at Pain & Cardio, thanks to Actron™ and the Aspirin™ product family, and at Nutritionals, largely driven by Supradyn™ and Redoxon™. By contrast, the Allergy & Cold business declined.
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Bayer AG published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 11:09:01 UTC.