Bayer Reports Strong Start to Fiscal 2022 with Robust Sales and Profit Growth

Leverkusen, May 10, 2022 /PRNewswire/ -- Bayer AG had a successful start to the year 2022. "We achieved excellent sales and earnings growth, particularly with very strong earnings in our Crop Science business. We are confident about our outlook for the year, despite significant uncertainties regarding supply chain and energy supply stability. We hereby confirm the currency-adjusted full-year outlook we provided in March," said Werner Baumann, Chairman of the Board of Management, when presenting the Q1 2022 results on Tuesday.

Bayer AG's sales in the first quarter of this year increased by 14.3% (after adjustment for currency and portfolio), reaching 14.639 billion euros. EBITDA before special items grew by 27.5% to 5.251 billion euros. Net income rose by 57.5% to 3.291 billion euros. Core earnings per share from continuing operations increased by 36.3% to 3.53 euros.

Profit Growth of Crop Science Division Approximately50%

Bayer’s agricultural business (Crop Science Division) sales increased by 21.6% (after adjustment for currency and portfolio), reaching 8.447 billion euros, primarily driven by significant improvements in both price and volume. Bayer achieved double-digit sales growth across all regions, particularly in herbicides (up 59.8% after currency and portfolio adjustment) and fungicides (up 18.6% after currency and portfolio adjustment), which both experienced strong growth. Herbicide sales showed robust growth in North America, while fungicide sales saw double-digit increases across all regions. Sales in corn seeds and traits grew due to price increases across all regions. Sales in soybean seeds and traits remained stable compared to the same period last year (up 0.8% after currency and portfolio adjustment), with growth in North America due to higher prices, while sales in Latin America declined due to lower volumes.

Crop Science Division's EBITDA before special items increased by 49.9% to EUR 3.669 billion, mainly driven by higher prices. Bayer also benefited from increased sales volumes and ongoing efficiency improvement projects. The EBITDA margin before special items significantly rose by 6.6 percentage points to a record high of 43.4%.

Prescription Drug Division: Thanks to Eylea^®、Nubeqa^®And imaging diagnostics business, sales achieved growth

Sales in the Pharmaceuticals business (Prescription Medicines Division) increased by 2.6% (after adjustment for currency and portfolio effects), reaching 4.624 billion euros, with significant growth in Europe, the Middle East, and Africa. One of the contributing factors to this success was the ophthalmology drug Eylea.^®(At 13.9% after currency and portfolio adjustments) business continues to expand, gaining market share in growing markets, particularly in Europe and China. Bayer also achieved gains in the imaging diagnostics category, especially with Ultravist.^®(After exchange rate and portfolio adjustments, it was 26.4%. The cancer drug Nubeqa^®Sales growth in the United States, Europe, and Japan was encouraging, with sales increasing by 61.5% (adjusted for currency and portfolio effects). In addition, the launch of Kerendia™ in the third quarter of 2021 for the treatment of chronic kidney disease in patients with type 2 diabetes also had a positive impact on the overall business.

Strong Sales Growth in Consumer Health Division with Even Better Profit Growth

Bayer's self-care products (Consumer Health division) saw a significant sales increase of 17.2% (adjusted for currency and portfolio), reaching 1.512 billion euros. Thanks to the contributions from all regions and categories, the Consumer Health division once again achieved broad-based growth. Sales in the allergy and cold category surged by 38.7% (adjusted for currency and portfolio), making the largest contribution to business growth. The nutrition category once again delivered excellent growth this quarter, achieving 15.4% (adjusted for currency and portfolio), with strong brands outperforming the market.

EBITDA before special items of the Consumer Health division increased by 32.9% to EUR 388 million, mainly driven by excellent sales growth as well as active price management and cost control measures. The EBITDA margin before special items significantly improved by 2.4 percentage points to 25.7%.

Bayer's Progress in Sustainable Development Highly Recognized

Bayer has made good progress in advancing its sustainable development goals, as highlighted in the investor-led Climate Action 100+ Net Zero Company Benchmark.https://www.climateaction100.org/net-zero-company-benchmark/) confirmed that Bayer is one of the highest-rated companies. In the 2021 benchmark released at the end of March, Bayer achieved 7 (out of 10) green indicators (compared to only 2 in 2020), surpassing all 166 assessed companies. ISS ESG — one of the world’s leading rating agencies in the field of environmental, social, and governance (ESG) sustainable investing — also rated Bayer as a "Climate Performance Leader" in its Climate Awareness Scorecard. ESG ratings (Environmental, Social, and Governance) are primarily used by investors as a metric to measure a company's sustainability performance.

Moreover, the Management Committee has decided to shift Bayer’s vehicle fleet worldwide to an electric mobility approach as soon as possible. The specific timeline will largely depend on market conditions and the pace of expansion of electric vehicle charging infrastructure.

For more information, please visit:www.bayer.com。

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 include those detailed on the official website of Bayer.http://www.bayer.com/The publicly available reports of Bayer. The company has no obligation to update these forward-looking statements or adapt them to future events or developments.