December 7, 2022

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Bayer’s Q1 revenue grows backed by agriculture business; confirms FY22 outlook


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Bayer’s (OTCPK:BAYRY) (OTCPK:BAYZF) Q1 profits grew on the back again of product sales in its Agriculture section, and the company managed its FY22 outlook.

The German conglomerate’s main EPS grew +36.3% Y/Y to €3.53.

Net profits (including discontinued operations) grew +57.5% to ~€3.29B.

Team gross sales grew +18.7% Y/Y (or +14.3% on a forex and portfolio-altered basis, or Forex & portfolio adj.) to ~€14.64B.

“We realized outstanding profits and earnings development, with particularly sizeable gains for our agriculture business,” said Werner Baumann, chairman of the board of administration.

The business said that in Q1 group gross sales and earnings ended up not negatively impacted by Russia’s invasion of Ukraine. In whole, the two nations around the world account for ~3% of revenue.

Bayer included that gross sales from Agricultural company (Crop Science) improved +27.1% Y/Y (+21.6% on Fx & portfolio adj.) to ~€8.45B thanks to significant selling price and quantity expansion.

Herbicides grew at +59.8% and Fungicides 18.6% Y/Y, each on Forex & portfolio adj. basis. Corn Seed & Qualities posted income gains, mostly thanks to selling price boosts in all locations. When product sales at Soybean Seed & Qualities were largely flat Y/Y.

EBITDA ahead of exclusive items at Crop Science grew by +49.9% to ~€3.67B.

Income from the Prescription drugs division grew +5.9% Y/Y (+2.6% on Fx & portfolio adj.) to ~€4.62B.

Bayer said the division was far more than able to offset rate-associated declines in sales owing to tender strategies in China, particularly for oral anticoagulant Xarelto (Forex & portfolio adj. -5%) and most cancers drug Nexavar (Fx & portfolio adj. -34.7%) by means of better volumes for other products and solutions.

Revenue of moist-AMD drug Eylea, designed with Regeneron, grew 13.9% Y/Y (Fx & portfolio adj.). X-ray imaging drug Ultravist grew +26.4% Y/Y both of those on Forex & portfolio adj. foundation.

EBITDA ahead of special things at Prescription drugs declined by -7.3% to ~€1.39B, mostly thanks to marketing and distribution of new merchandise — kidney sickness drug Kerendia, prostate cancer treatment Nubeqa and coronary heart failure drug Verquvo.

Sales from Customer Health section grew +20.8% Y/Y (+17.2% Forex & portfolio adj.) to ~€1.51B.

EBITDA just before particular objects at Customer Wellness superior by 32.9% Y/Y to ~€388M

Bayer pointed out that free money circulation improved by 63.2% to -€1.19B.

As of March 31, 2022, Web money debt was ~€34.53B, +4.2% larger than at year-close 2021.

Outlook:

“Our forecast going forward this calendar year remains assured in spite of the excellent uncertainties, which includes the security of supply chains and electricity provides, and we verify the forex adjusted outlook for the complete year printed in March,” reported Baumann.

In its Q4 earnings release in March, Bayer reported that for FY 2022, it expects profits of ~€46B. EBITDA of ~€12B and free funds move of €2B-€2.5B just after deducting settlement payments.

The enterprise expects main EPS at ~€7.00, and plans to maintain its dividend at €2.00.



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