Bayer (BAYN) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales rose 3.1% currency and portfolio-adjusted to €11.1 billion, with reported growth at 1% due to FX headwinds; H1 sales up 1.0% to €24.9 billion.

• Core EPS was €0.94 in Q2, down 23% year-over-year, and €3.76 in H1, down 9.8%, mainly due to lower divisional earnings and currency effects.

• Free cash flow improved to €1.3 billion in Q2 from -€0.5 billion in Q2 2023, driven by higher operating cash flow and lower litigation payouts.

• Full-year 2024 group guidance reaffirmed, with divisional outlooks adjusted for market-driven headwinds and FX impacts.

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

Financial highlights

• Q2 EBITDA before special items was €2.1 billion, 16% below prior year, mainly due to unfavorable mix and higher incentive provisions.

• Q2 EBITDA margin before special items was 18.9%; H1 margin was 26.2%.

• Net financial debt reduced to €36.8 billion by end of Q2, down €0.7 billion sequentially.

• Q2 core net income was €0.9 billion, down from €1.2 billion prior year.

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

Outlook and guidance

• 2024 group net sales expected at €47.6 billion (-1% to +3% at constant FX), with estimated FX impact of -2% to -3%.

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

• Crop Science expected at lower end of sales and margin guidance due to volume declines in glyphosate and generic pricing pressure.

• Pharmaceuticals net sales guided at 0–3% growth, EBITDA margin 26–29%.

• Consumer Health net sales guided at 3–6% growth, EBITDA margin 23–24%.