Bayer’s Q1 revenue grows backed by agriculture business; confirms FY22 outlook

Marty Batteen

The Bayer AG plants located in Wuppertal Elberfeld

JFsPic/iStock Editorial by means of Getty Pictures

Bayer’s (OTCPK:BAYRY) (OTCPK:BAYZF) Q1 revenue grew on the back again of gross sales in its Agriculture section, and the organization maintained its FY22 outlook.

The German conglomerate’s main EPS grew +36.3% Y/Y to €3.53.

Web earnings (together with discontinued operations) grew +57.5% to ~€3.29B.

Team income grew +18.7% Y/Y (or +14.3% on a currency and portfolio-altered foundation, or Forex & portfolio adj.) to ~€14.64B.

“We realized fantastic revenue and earnings advancement, with notably considerable gains for our agriculture small business,” mentioned Werner Baumann, chairman of the board of administration.

The business said that in Q1 team profits and earnings have been not negatively impacted by Russia’s invasion of Ukraine. In full, the two countries account for ~3% of product sales.

Bayer extra that revenue from Agricultural organization (Crop Science) improved +27.1% Y/Y (+21.6% on Forex & portfolio adj.) to ~€8.45B because of to considerable price tag and quantity development.

Herbicides grew at +59.8% and Fungicides 18.6% Y/Y, both equally on Fx & portfolio adj. basis. Corn Seed & Traits posted income gains, predominantly owing to value will increase in all locations. Although revenue at Soybean Seed & Qualities have been largely flat Y/Y.

EBITDA right before particular merchandise at Crop Science grew by +49.9% to ~€3.67B.

Revenue from the Prescription drugs division grew +5.9% Y/Y (+2.6% on Forex & portfolio adj.) to ~€4.62B.

Bayer reported the division was more than ready to offset selling price-associated declines in gross sales due to tender methods in China, primarily for oral anticoagulant Xarelto (Fx & portfolio adj. -5%) and cancer drug Nexavar (Forex & portfolio adj. -34.7%) by increased volumes for other merchandise.

Gross sales of soaked-AMD drug Eylea, created with Regeneron, grew 13.9% Y/Y (Fx & portfolio adj.). X-ray imaging drug Ultravist grew +26.4% Y/Y each on Forex & portfolio adj. basis.

EBITDA prior to distinctive goods at Pharmaceuticals declined by -7.3% to ~€1.39B, mostly owing to advertising and distribution of new solutions — kidney condition drug Kerendia, prostate most cancers treatment Nubeqa and heart failure drug Verquvo.

Income from Buyer Wellbeing segment grew +20.8% Y/Y (+17.2% Fx & portfolio adj.) to ~€1.51B.

EBITDA just before exclusive objects at Consumer Overall health innovative by 32.9% Y/Y to ~€388M

Bayer mentioned that free dollars circulation enhanced by 63.2% to -€1.19B.

As of March 31, 2022, Web fiscal financial debt was ~€34.53B, +4.2% increased than at yr-finish 2021.


“Our forecast heading ahead this year continues to be confident inspite of the wonderful uncertainties, which include the stability of offer chains and electricity provides, and we validate the forex adjusted outlook for the full yr published in March,” reported Baumann.

In its Q4 earnings launch in March, Bayer reported that for FY 2022, it expects sales of ~€46B. EBITDA of ~€12B and free hard cash circulation of €2B-€2.5B right after deducting settlement payments.

The firm expects main EPS at ~€7.00, and ideas to preserve its dividend at €2.00.

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