2d quarter impacted by declines in glyphosate industry

Leverkusen, August 8, 2023 – Bayer printed detailed results for the 2d quarter of 2023 on Tuesday, after having already communicated key figures for the three-month period and reducing its outlook for fleshy-year 2023 in a July 24 data open. The revised guidance used to be totally on account of a fundamental additional decline in sales of glyphosate-based entirely mostly products on the Cleave Science Division. Gross sales at Pharmaceuticals were discover on a forex- and portfolio-adjusted basis (Fx & portfolio adj.), whereas earnings were down year on year. Client Health registered better sales (Fx & portfolio adj.) and additionally elevated earnings.

Neighborhood sales declined by 8.2 percent (Fx & portfolio adj.) to 11.044 billion euros within the 2d quarter. There used to be a destructive forex attain of 553 million euros (Q2 2022: sure forex attain of 915 million euros). EBITDA earlier than special objects declined by 24.5 percent to 2.527 billion euros. This figure included a destructive forex attain of 120 million euros (Q2 2022: sure forex attain of 300 million euros). Towards this, the firm registered income across all divisions totaling round 481 million euros on account of a decrease in provisions for the Neighborhood-vast Fast-Duration of time Incentive program. EBIT got right here in at minus 956 million euros (Q2 2022: plus 169 million euros) after receive special prices of two.490 billion euros (Q2 2022: 2.111 billion euros) that primarily associated to unscheduled impairment checking out within the Cleave Science Division. Which capacity that, receive income got right here in at minus 1.887 billion euros (Q2 2022: minus 298 million euros). Core earnings per fragment diminished by 36.8 percent to 1.22 euros.

Gross sales within the agricultural industry (Cleave Science) fell by 18.5 percent (Fx & portfolio adj.) to 4.924 billion euros, primarily driven by lower volumes and costs for glyphosate-based entirely mostly products. This attain in particular impacted industry in North and Latin America as nicely as in Europe/Center East/Africa, and resulted in a forty five.6 percent decrease in sales (Fx & portfolio adj.) at Herbicides. Moreover the glyphosate industry, Cleave Science sales were level with the earlier year (Fx & portfolio adj.), as better prices were offset by lower volumes. Gross sales at Corn Seed & Traits rose by 10.6 percent (Fx & portfolio adj.), largely on account of better prices in all areas as nicely as elevated acreages in North America. Industry at Fungicides used to be level with the prior-year quarter (Fx & portfolio adj.). Gross sales at Soybean Seed & Traits were down 9.3 percent (Fx & portfolio adj.), totally on account of diminished acreages and a decline in license revenues in North America.

EBITDA earlier than special objects at Cleave Science fell by 58.5 percent to 725 million euros, totally on account of the decline in sales of glyphosate-based entirely mostly products. Increased prices within the leisure of the industry and price savings most effective in part compensated for this attain. Earnings were additionally diminished by a primarily inflation-associated expand within the price of things offered and a destructive forex attain of 96 million euros (Q2 2022: sure forex attain of 215 million euros).

Pharmaceuticals: original products elevate big roar

Gross sales of prescription medicines (Pharmaceuticals) got right here in at 4.557 billion euros, matching the prior-year level on a forex- and portfolio-adjusted basis. The division’s original products accomplished fundamental gains: Gross sales of the cancer drug Nubeqa™ nearly about doubled, whereas Kerendia™ for the remedy of continual kidney disease associated to form 2 diabetes noticed industry manufacture bigger extra than threefold. In addition, the Radiology industry persisted to grow, primarily driven by gains for the CT Fluid Shipping and Ultravist™ product families. Gross sales of the ophthalmology drug Eylea™ additionally elevated, with roar of 5.6 percent (Fx & portfolio adj.) driven by better volumes in all areas and in particular in North America and Asia/Pacific. Towards this, the division recorded a decline in sales in China, partly on account of soft procedures for Adalat™. On a global level, sales of the cardiovascular drug diminished by 26.1 percent (Fx & portfolio adj.). Industry in China used to be additionally impacted by a decrease in quiz for Aspirin™ Cardio, with global sales falling 29.3 percent (Fx & portfolio adj.). As expected, global sales of the oral anticoagulant Xarelto™ were down, with aggressive rigidity from generic products as nicely as lower prices, in particular in Asia/Pacific and Latin America, resulting in a decrease of 3.3 percent (Fx & portfolio adj.).

EBITDA earlier than special objects at Pharmaceuticals declined by 6.7 percent to 1.379 billion euros, largely on account of better R&D investments in cell and gene remedy and chemoproteomics applied sciences, as nicely as in initiatives in superior medical sort. In addition, the prior-year quarter had obtained a fundamental enhance from the sale of non-core firms. There used to be a destructive forex attain of 40 million euros (Q2 2022: sure forex attain of 41 million euros).

Client Health continues to grow

Gross sales of self-care products (Client Health) elevated by 5.4 percent (Fx & portfolio adj.) to 1.466 billion euros when compared with a robust prior-year quarter, with contributions from all areas. The division posted fundamental gains within the Dermatology industry, with roar of 10.9 percent (Fx & portfolio adj.) driven partly by persisted high quiz for Bepanthen™, as nicely as within the Bother & Cardio class, the assign sales rose by 10.0 percent (Fx & portfolio adj.). In addition, sales of cough and chilly products elevated tremendously amid a many cases robust chilly season, whereas the allergy industry expanded a shrimp despite a weaker allergy season on account of weather-associated components. Overall, the Hypersensitivity & Chilly class registered roar of 5.7 percent (Fx & portfolio adj.). The division persisted to face some provide constraints within the 2d quarter, in particular within the Digestive Health class, the assign sales were level with the prior-year period (Fx & portfolio adj.). The provision field is expected to aid within the 2d half of of the year.

EBITDA earlier than special objects at Client Health elevated by 1.5 percent to 335 million euros following a extremely robust prior-year quarter, driven by continuous operational productivity and price administration measures. These efforts compensated for ongoing inflation-driven rate will increase and investment in advertising modern products. The division additionally recorded better proceeds from the sale of youth, non-strategic manufacturers. There used to be a destructive forex attain of 31 million euros (Q2 2022: sure forex attain of 49 million euros).

Neighborhood outlook lowered on July 24

The Bayer Neighborhood lowered its outlook for fleshy-year 2023 on July 24, totally on account of a fundamental additional decline in sales of glyphosate-based entirely mostly products. When communicating its first quarter results, Bayer had already guided in direction of the lower stay of the forecast it had beforehand issued. On a forex-adjusted basis (i.e. in line with the average month-to-month alternate rates from 2022), Bayer now expects to generate sales of between 48.5 and 49.5 billion euros (initial forecast: 51 to 52 billion euros). This now corresponds to a decline of two to some percent on a forex- and portfolio-adjusted basis (initial forecast: expand of two to some percent). EBITDA earlier than special objects is now expected to attain in at 11.3 billion to 11.8 billion euros on a forex-adjusted basis (initial forecast: 12.5 to 13.0 billion euros). The firm now anticipates core earnings per fragment of 6.20 to 6.40 euros on a forex-adjusted basis (initial forecast: 7.20 to 7.40 euros). In addition, it now initiatives free money float of roughly zero euros (initial forecast: roughly 3.0 billion euros) and receive financial debt of roughly 36 billion euros (initial forecast: 32 to 33 billion euros) on a forex-adjusted basis. Bayer now expects to take special objects of round minus 3.5 billion euros (initial forecast: round minus 1.0 billion euros) in EBIT after adjusting for forex effects.

With appreciate to the divisions, the firm now expects Cleave Science sales to drop by round 5 percent year on year (initial forecast: expand by round 3 percent) and Pharmaceuticals sales to stamp a roughly 0 percent alternate in opposition to the prior-year level (initial forecast: expand by roughly 1 percent) after adjusting for forex and portfolio effects. The forex-adjusted EBITDA margin earlier than special objects is now projected to attain in at round 21 percent at Cleave Science (initial forecast: 25 to 26 percent) and roughly 28 percent at Pharmaceuticals (initial forecast: a shrimp above 29 percent). The forecast for Client Health stays unchanged, with sales roar of roughly 5 percent on a forex- and portfolio-adjusted basis, and a forex-adjusted EBITDA margin earlier than special objects of round 23 percent.

Notes:

The next tables have presumably the necessary data for the Bayer Neighborhood and its divisions for the 2d quarter and the fundamental six months of 2023.

The fleshy Half of-Year Monetary Represent is on hand on-line at:

www.bayer.com/halfyearreport

Extra data for investors and procure admission to – from round 2 p.m. CEST – to the stay broadcast of the investor conference name at: www.bayer.com/stay-ic

Print-quality photos will seemingly be found on-line at: www.bayer.com/photo-footage

Procure extra data at www.bayer.com.

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