Bayer (BAYN) Q2 2024 (Media) earnings summary

Executive summary

• Q2 2024 sales increased by 3.1% currency and portfolio-adjusted to EUR 11.1 billion, with reported growth at 1% due to FX headwinds.

• Core EPS for Q2 was EUR 0.94, down 23% year-over-year; free cash flow improved to EUR 1.3 billion from -EUR 0.5 billion last year.

• Net income was minus EUR 34 million in Q2, but H1 net income reached EUR 1,966 million, reflecting lower special charges and improved EBIT.

• Full-year group guidance reaffirmed, with strong momentum in pharmaceuticals and consumer health, and ongoing cost discipline.

• EBITDA before special items fell 16.5% in Q2, mainly due to unfavorable mix in crop science, higher incentive provisions, and negative currency effects.

Financial highlights

• Q2 EBITDA before special items: EUR 2.1 billion, down 16.5% year-over-year; margin at 18.9%.

• Q2 EBIT: EUR 525 million (vs. -EUR 956 million Q2 2023); H1 EBIT: EUR 3,617 million (+79.3%).

• Q2 net income: -EUR 34 million (vs. -EUR 1,887 million Q2 2023); H1 net income: EUR 1,966 million.

• Net financial debt reduced to EUR 36.8 billion by end of Q2, driven by positive free cash flow and minimal dividend payout.

• Personnel expenditure rose despite a 5% headcount reduction, mainly due to changes in incentive provisions; R&D expenses up 22.1% in Q2.

Outlook and guidance

• Group outlook for 2024 confirmed; Crop Science sales and margin expected at lower end of range.

• Pharmaceuticals sales growth guidance raised to 0–3% (previously -4% to 0%), with continued Xarelto pressure offset by strong launch products and Eylea.

• Consumer Health guidance confirmed, with accelerated growth expected in H2 from innovation and improved supply; market growth forecast lowered to 4% for 2024.

• Group FX estimates unchanged; free cash flow target EUR 2–3 billion for the year.