Bayer (BAYN) Q3 2024 (Media) earnings summary

Executive summary

• Group sales grew 1% year-over-year in Q3 2024 to €9.97 billion (up 0.6% currency- and portfolio-adjusted), with Pharmaceuticals and Consumer Health offsetting Crop Science declines.

• EBITDA before special items fell 25.8% to €1.25 billion, mainly due to lower Pharma and Crop Science results.

• Net income was negative €4.18 billion, primarily due to €3.78 billion in non-cash impairment losses at Crop Science.

• Strategic focus on innovation, operational efficiency, and scaling a new operating model, with 5,500 job reductions, mostly managerial, year-to-date.

• Litigation risks, especially glyphosate and PCBs, remain a key focus, with ongoing efforts to contain exposure through legal and legislative avenues.

Financial highlights

• Gross profit declined to €4.88 billion from €5.53 billion year-over-year.

• EBITDA margin before special items dropped to 12.6% from 16.3% in Q3 2023.

• Core EPS for Q3 was €0.24, down 36.8% year-over-year; reported EPS was €4.26, impacted by impairment.

• Free cash flow in Q3 was €1.15 billion, down from €1.6 billion last year; year-to-date free cash flow at €200 million versus €2.9 billion prior year.

• Net financial debt reduced to €35.0 billion at Q3 end, down €1.8 billion sequentially.

Outlook and guidance

• Full-year 2024 group targets for sales growth, core EPS, free cash flow, and net debt reaffirmed at constant currencies.

• Crop Science and Consumer Health guidance revised downward due to weaker-than-expected market conditions.

• Pharmaceuticals expected at the upper end of revised guidance.

• EBITDA margin before special items for Crop Science now expected at 18–20%, Pharmaceuticals at 24–27%, Consumer Health at 23–24%.

• 2025 outlook is muted, with likely declining earnings and continued FX headwinds; cost and efficiency measures to be accelerated.