Bayer (BAYN) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales rose 3.1% currency and portfolio-adjusted to €11.1B, with reported growth at 1% due to FX headwinds; H1 sales up 1% to €24.9B.

• Core EPS was €0.94 in Q2, down 23% year-over-year; free cash flow improved to €1.3B from -€0.5B in Q2 2023.

• EBITDA before special items fell 16.5% in Q2 to €2.1B, mainly due to negative currency effects and lower Crop Science earnings.

• Full-year group guidance reaffirmed; Crop Science expected at lower end, Pharma outlook upgraded, Consumer Health guidance confirmed.

• Strategic focus on innovation, operational efficiency, litigation management, and cash generation.

Financial highlights

• Q2 EBITDA margin before special items was 18.9%, down from 22.9% prior year.

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

• FX headwinds impacted sales by €240M and EBITDA by €130M.

• Q2 net income was -€34M, but H1 net income reached €1,966M, reflecting lower special charges and improved EBIT.

• Q2 core net income was €0.9B, down from €1.2B in Q2 2023.

Outlook and guidance

• Group outlook for 2024 confirmed; Crop Science expected at lower end of guidance, Pharma sales growth now seen at 0–3%.

• Core EPS guidance for 2024 is €5.10–5.50, with free cash flow of €2.0–3.0B.

• Seed and crop protection market expected to decline 1% in 2024; pharmaceuticals market to grow ~9%; consumer health market to grow ~4%.

• FX assumptions unchanged; estimated FX impact of -2% to -3% on sales.