Bayer (BAYN) Q2 2024 (Media) earnings summary

Executive summary

• Group sales rose 3.1% (currency and portfolio adjusted) to €11.1 billion in Q2 2024, with H1 sales up 1.0% to €24.9 billion despite currency headwinds.

• EBITDA before special items fell 16.5% in Q2 and 6.8% in H1, mainly due to negative currency effects and lower Crop Science earnings.

• Core earnings per share reached €0.94 in Q2 (down 23%) and €3.76 in H1 (down 9.8%).

• Free cash flow improved to €1.3 billion in Q2 and minus €1.4 billion in H1, driven by higher operating cash flow and lower litigation payouts.

• Strategic priorities include growth and innovation, litigation management, cash generation, and organizational transformation.

Financial highlights

• Q2 2024 sales: €11,144 million (+3.1% currency and portfolio adjusted); H1 2024 sales: €24,909 million (+1.0%).

• Q2 EBITDA before special items: €2,111 million (-16.5%); H1: €6,523 million (-6.8%).

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

• Q2 net income: -€34 million (vs. -€1,887 million Q2 2023); H1 net income: €1,966 million (vs. €291 million H1 2023).

• Net financial debt reduced to €36.8 billion by end of Q2.

Outlook and guidance

• Full-year group guidance reaffirmed; Crop Science expected at lower end of sales and margin guidance due to market headwinds and glyphosate volume declines.

• Pharmaceuticals sales growth guidance raised to 0–3% for the year, up from -4–0%, with ongoing Xarelto pressure offset by strong launch assets and Eylea.

• Consumer Health market growth forecast lowered to 4% for 2024 due to softening conditions, but growth acceleration expected in H2 via innovation and pricing.

• Free cash flow target for the year is €2–3 billion, with net financial debt targeted at €32.5–33.5 billion by year-end.