Bayer Reports Strong Start to Fiscal Year 2023 with Performance in Line with Expectations

- Non-Glyphosate Business in Crop Science Division Achieves Growth
- Strong Growth Achieved by Prescription Pharmaceuticals Division with New Products
- Continued growth in the Health Consumer Products Division

LeverkusenMay 11, 2023PR Newswire -- Bayer AG's 2023 fiscal year started with results in line with expectations. "This quarter’s sales were on par with the extremely strong sales of the same period last year," said Werner Baumann, CEO of Bayer AG, in the release of the first-quarter report on Thursday. Baumann confirmed the full-year 2023 outlook for the Group, which was based on the monthly average exchange rates since 2022. He noted, "Overall, we expect performance to be largely in line with expectations."

Bayer AG's sales in the first quarter of 2023 were €14.389 billion, a decrease of 1.1% (after adjustment for currency and portfolio effects). Sales remained stable due to positive currency effects amounting to €102 million (Q1 2022: €529 million). EBITDA before special items reached €4.471 billion. After deducting net special charges of €431 million (Q1 2022: net special gain of €40 million), EBIT amounted to €2.973 billion. Net income reached €2.178 billion, with core earnings per share at €2.95.

Bayer's Crop Science Division Achieves Growth in Non-Glyphosate Business

Agriculture Business (Crop Science Division) Sales Reach 8.351 Billion Euros. Excluding glyphosate, sales in the Crop Science Division grew by approximately 8% (adjusted for currency and portfolio effects). The division achieved double-digit percentage growth in Europe/Middle East/Africa and the Asia-Pacific region. Driven by price increases in North America and Europe/Middle East/Africa, sales in the corn seeds and traits business surged by 15.8% (adjusted for currency and portfolio effects). Sales in the insecticides business increased by 12.6% (adjusted for currency and portfolio effects), with significant price and volume growth in Europe/Middle East/Africa due to Movento™ and in Latin America due to Curbix™, offsetting a decline in volume in North America. Sales in the soybean seeds and traits business also grew, increasing by 1.4% (adjusted for currency and portfolio effects), primarily driven by higher volumes in Latin America. Sales in the fungicides business remained flat compared to the previous year, as price increases across all regions offset declines in volume in Latin America and North America. EBITDA before special items for the Crop Science Division amounted to 3.267 billion euros.

Sales of prescription drug business benefit from new products

Sales of prescription drugs (Prescription Drug Division) decreased by 3.1% (after adjustment for currency and portfolio), amounting to 4.407 billion euros. The sales of the oral anticoagulant Rivaroxaban® and the cardiac disease treatment drug Nifedipine GITS® saw relatively larger declines. The successful launch of new products continued to generate significant revenue. Sales of the anticancer drug Darolutamide® more than doubled year-over-year, while the growth momentum for Finerenone®, used to treat chronic kidney disease associated with type 2 diabetes, was even stronger. Additionally, the imaging diagnostics business continued to achieve robust growth through its CT power injector product line and the Gadovist® and Iopromide® product families. Supported by increased sales volume in North America and Latin America, the ophthalmology drug Aflibercept® also saw sales growth, increasing by 4.5% (after adjustment for currency and portfolio). The Prescription Drug Division's EBITDA before special items reached 1.106 billion euros.

Consumer Health Division Continues to Achieve Growth, Maintaining High Business Volume

Building on a strong first quarter in 2022, sales of self-care products (Consumer Health segment) grew by 4.1% (after adjustment for currency and portfolio effects), reaching €1.573 billion. Temporary supply issues in North America and the Europe/Middle East/Africa region led to slower growth. However, business in three out of four global regions still achieved growth. Thanks to the launch of Astepro™ antihistamine nasal spray in the United States and the continued rise in cold incidence rates, sales in the allergy and cold category increased again by 15.9% (after adjustment for currency and portfolio effects) following a robust performance in the same period last year. The dermatology category also achieved double-digit growth, reaching 10.3% (after adjustment for currency and portfolio effects), partly due to continued strong demand for Bepanthen™. EBITDA before special items for the Consumer Health division reached €379 million.

Sustainable Development: A Landmark Renewable Energy Agreement

In order to strengthen its efforts in sustainable development, Bayer has signed a landmark agreement with the American company Cat Creek Energy, aiming to achieve carbon neutrality in its own operations by 2030. This agreement will ensure that 40% of Bayer's global electricity needs and 60% of the electricity purchased by Bayer in the United States will come from renewable energy sources. The project will generate a total of 1.4 terawatt-hours of clean electricity annually, equivalent to the energy consumption of 150,000 American households. The agreement will also allow the company to reduce its carbon dioxide emissions by 370,000 tons per year, equivalent to the emissions of about 270,000 mid-sized cars or the amount that 31.7 million trees can absorb annually. The agreement with Cat Creek Energy marks one of the largest single renewable energy agreements in the United States.

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Forward-Looking Statements

This press release includes forward-looking statements by the management of Bayer AG based on current assumptions and forecasts. Various known and unknown risks, uncertainties, and other factors could cause the company's actual operational results, financial condition, development, or performance in the future to differ materially from the estimates provided in the above forward-looking statements. These factors are disclosed on Bayer's official website.www.bayer.comThe publicly available reports of Bayer. The Company has no obligation to update these forward-looking statements or to align them with future events or developments.