Bayer reports Q1 core EPS EUR 2.82 vs. EUR 2.95 last year

Reports Q1 group sales EUR 13.77B vs. EUR 14.39B last year. EBITDA before special items decreased by 1.3% to EUR 4.412B. EBIT advanced by 4% to EUR 3.092B after net special charges of EUR 207M. The special charges primarily related to expenses for ongoing restructuring measures and affected all divisions and functional areas. Net income fell by 8.2% to EUR 2B, while core earnings per share decreased by 4.4% to EUR 2.82. Free cash flow came in at minus EUR 2.626B, mainly due to the improvement in operating cash flow. Net financial debt as of March 31, 2024, came in at EUR 37.488B, up 8.7% from year-end 2023. This was mainly attributable to cash outflows from operating activities due to seasonal factors. “First-quarter sales declined slightly versus the prior year. The Pharmaceuticals Division saw gains in growth and profitability, and the Crop Science Division outperformed in a difficult market. Consumer Health started slower, but is set to get back to growth over the course of the year,” CEO Bill Anderson said. He reaffirmed Bayer’s outlook for 2024 at constant currencies. Anderson also commented on the company’s strategic priorities. “In March, I highlighted four areas we’re focused on to get Bayer back on track. Two months later, we’ve made progress in each one,” he said, referring to growth and innovation, the US litigation, cash and deleveraging, and the new Dynamic Shared Ownership operating model. Regarding the implementation of DSO, Bayer’s CEO explained: “We’re consolidating roles, designing teams for more impact, and taking out layers. The most important measure of our impact will be much greater than a job number or a cost savings target. It will be in our ability to innovate, grow our businesses, and improve life for our customers.”