Tedious originate to the twelve months as expected

• Neighborhood gross sales stable at 14.389 billion euros (Fx & portfolio adj. minus 1.1 p.c)
  o   Accelerated normalization in glyphosate replace – moral designate dynamics in varied Sever Science objects
  o   Original Prescribed tablets merchandise tell solid development – headwinds in China
  o   Particular person Health continues to grow
• EBITDA before special objects: 4.471 billion euros (minus 14.9 p.c)
  o   Glyphosate and inflation weigh on earnings
  o   Prescribed tablets maintains high R&D investment
• Core earnings per share at 2.95 euros (minus 16.4 p.c)
• Earn profits at 2.178 billion euros
• Free cash waft at minus 4.102 billion euros
• Neighborhood outlook confirmed – target attainment at decrease stop of steering

Leverkusen, May maybe presumably well per chance also 11, 2023 – The Bayer Neighborhood skilled a gradual originate to 2023 as expected. “Gross sales had been on a par with the exceptionally solid prior-twelve months quarter,” CEO Werner Baumann said on Thursday when presenting the Quarterly Assertion for the main quarter. The normalization in the glyphosate replace has accelerated, despite the incontrovertible truth that this attain became once largely offset by development in the assorted parts of the Sever Science replace, he explained. The Prescribed tablets Division saw its recent merchandise make completely, while gross sales in China had been heavily impacted by soft procedures and pandemic-associated effects. Neighborhood earnings had been basically weighed down by the glyphosate replace and inflation, and had been also impacted by R&D investment at Prescribed tablets, which remained high.

Baumann confirmed the Neighborhood outlook for fleshy-twelve months 2023 fixed with the practical monthly replace rates from 2022. On the assorted hand, for the the rest of the twelve months Bayer sees possible risks basically bobbing up from the vastly reduced market designate expectations for glyphosate-based completely merchandise, he said. “We proceed to derive a query to performance to pork up in our varied companies in the second half of the twelve months,” Baumann mighty. “Overall, we build a query to dwelling attainment to come abet in at the decrease stop of our steering.”

Neighborhood gross sales came in at 14.389 billion euros in the main quarter of 2023, down 1.1 p.c on a forex- and portfolio-adjusted basis (Fx & portfolio adj.). Gross sales benefited from a undeniable forex attain of 102 million euros (Q1 2022: 529 million euros). EBITDA before special objects declined by 14.9 p.c to 4.471 billion euros. EBIT fell by 29.4 p.c to 2.973 billion euros after gain special funds of 431 million euros (Q1 2022: gain special gains of 40 million euros). The special funds basically comprised an impairment loss on account of vastly reduced market designate expectations for glyphosate. Earn profits diminished by 33.8 p.c to 2.178 billion euros, while core earnings per share had been down 16.4 p.c at 2.95 euros.

Free cash waft came in at minus 4.102 billion euros (Q1 2022: minus 1.187 billion euros). This figure included greater funds to resolve complaints in the litigations surrounding glyphosate, dicamba, Essure™ and, in express, PCBs that had already been communicated and had been effected in the main quarter. The net payout amounted to 1.536 billion euros (Q1 2022: 476 million euros) and became once lined by provisions. This capacity that, gain monetary debt as of March 31, 2023, came in at 36.077 billion euros, up 13.4 p.c from twelve months-stop 2022.

Sever Science grows originate air the glyphosate replace

Within the agricultural replace (Sever Science), gross sales declined by 1.1 p.c (Fx & portfolio adj.) to 8.351 billion euros. With the exception of the glyphosate replace, Sever Science gross sales had been up round 8 p.c (Fx & portfolio adj.). The division recorded double-digit proportion gains in the Europe/Center East/Africa and Asia/Pacific areas, nonetheless saw gross sales descend in Latin and North The United States, basically on account of decrease volumes. Gross sales at Herbicides diminished by 24.3 p.c (Fx & portfolio adj.) on account of decrease volumes and prices for glyphosate-based completely merchandise. In distinction, Corn Seed & Traits saw gross sales upward thrust by a super 15.8 p.c (Fx & portfolio adj.), basically pushed by greater prices in the North The United States and Europe/Center East/Africa areas. Gross sales at Insecticides rose by 12.6 p.c (Fx & portfolio adj.), with important designate and volume increases in Europe/Center East/Africa thanks to Movento™ and in Latin The United States on account of Curbix™ greater than offsetting decrease volumes in North The United States. Gross sales had been also up at Soybean Seed & Traits, which registered development of 1.4 p.c (Fx & portfolio adj.) that became once basically pushed by greater volumes in Latin The United States. Gross sales at Fungicides came in at the prior-twelve months stage, with greater prices in all areas offsetting decrease volumes in Latin and North The United States in express.

EBITDA before special objects at Sever Science diminished by 11.0 p.c to three.267 billion euros, basically on account of the descend in gross sales in Latin and North The United States. Earnings had been also diminished by an expand in express in the cost of items sold, which became once on account of high inflation. There became once a undeniable forex attain of 54 million euros (Q1 2022: 98 million euros). The EBITDA margin before special objects declined by 4.3 proportion components to 39.1 p.c.

Prescribed tablets gross sales contain the benefit of recent merchandise

Gross sales of prescription medicines (Prescribed tablets) fell by 3.1 p.c (Fx & portfolio adj.) to 4.407 billion euros, basically on account of soft procedures and pandemic-associated developments in China. Attributable to these effects, gross sales of the oral anticoagulant Xarelto™ and the heart disease treatment Adalat™ in express had been down, with declines of 12.8 p.c and 23.9 p.c (Fx & portfolio adj.), respectively. In distinction, the profitable market open of most modern merchandise persevered to generate important gains. Gross sales of the cancer drug Nubeqa™ greater than doubled, while Kerendia™, a product for the treatment of patients with chronic kidney disease associated with sort 2 diabetes, registered a honest stronger development price. As well, the Radiology replace persevered to total solid gains with the CT Fluid Shipping, Gadovist™ and Ultravist™ product traces. No topic declining prices, gross sales of the ophthalmology drug Eylea™ also developed, with development of 4.5 p.c (Fx & portfolio adj.) pushed by greater volumes in North and Latin The United States in express.

EBITDA before special objects at Prescribed tablets diminished by 20.4 p.c to 1.106 billion euros, basically on account of decrease gross sales. The division also elevated its R&D investments in cell and gene treatment and chemoproteomics applied sciences, as effectively as in initiatives in developed scientific kind. As well, procurement prices rose on account of inflationary pressures. There became once a negative forex attain of 6 million euros (Q1 2022: 34 million euros). The EBITDA margin before special objects declined by 4.9 proportion components to 25.1 p.c.

Particular person Health continues to grow as replace stays at high stage

Gross sales of self-care merchandise (Particular person Health) rose by 4.1 p.c (Fx & portfolio adj.) to 1.573 billion euros, on high of noteworthy development in the main quarter of 2022. Development became once slowed by non permanent present constraints in North The United States and Europe/Center East/Africa. On the assorted hand, replace remained up in three out of 4 areas. Gross sales of Allergy & Frigid merchandise developed by 15.9 p.c (Fx & portfolio adj.) in opposition to the very solid prior-twelve months quarter on account of the open of the Astepro™ antihistamine nasal spray in the United States and continuously elevated chilly incidence rates. The Dermatology replace also registered double-digit proportion gains, with development of 10.3 p.c (Fx & portfolio adj.), partly pushed by persevered solid build a query to for Bepanthen™. In distinction, gross sales in the Nutritionals category declined by 10.0 p.c (Fx & portfolio adj.) nonetheless remained at a high stage following important development over the last three years.

EBITDA before special objects at Particular person Health diminished by 2.3 p.c to 379 million euros. This follows an extremely solid prior-twelve months first quarter, as effectively as extra effects from important inflation-associated cost increases and investments in marketing modern merchandise, especially Astepro™. On the assorted hand, the division became once largely ready to offset these effects thanks to continuous cost and price management efforts. Profits from the sale of teenybopper, nonstrategic producers became once decrease than in the prior-twelve months quarter. There became once a negative forex attain of 4 million euros (Q1 2022: sure forex attain of 6 million euros). The EBITDA margin before special objects declined by 1.6 proportion components to 24.1 p.c.

Sustainability: landmark renewable vitality deal

In a tell in confidence to bolster its sustainability efforts, Bayer has inked a landmark take care of the firm Cat Creek Energy in the United States because it appears to be to turn into local weather-neutral in its bag operations by 2030. The settlement will stable 40 p.c of Bayer’s global and 60 p.c of Bayer’s US-bought electricity build a query to out of renewable sources. This project will generate a total of 1.4 terawatt hours of neat electricity yearly, an quantity equal to the vitality consumption of 150,000 households in the United States. The deal also permits the firm to decrease its annual CO₂ emissions by 370,000 heaps. That is roughly much like the emissions of 270,000 mid-sized automobiles, or the amount that 31.7 million bushes are succesful of binding yearly. The settlement with Cat Creek Energy marks one of many supreme single renewable vitality offers in the United States.

Notes:

The next tables bear the main files for the Bayer Neighborhood and its divisions for the main quarter of 2023.

The fleshy Quarterly Assertion for the main quarter is in the market online at:
www.bayer.com/quarterly-assertion

Extra files for traders and catch entry to – from round 2 p.m. CEST – to the dwell broadcast of the investor conference call at: www.bayer.com/dwell-ic

Print-quality photos would maybe well even be realized online at: www.bayer.com/picture-photos