In This Article:
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Net Sales Growth: 1% increase on a currency and portfolio-adjusted basis for 2024.
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EBITDA Before Special Items: EUR 10.1 billion, 14% below the prior year.
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Net Debt: Reduced to EUR 32.6 billion by the end of 2024.
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Free Cash Flow: EUR 3.1 billion, ahead of guidance.
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Core Earnings Per Share: EUR 5.05, below the prior year.
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Reported Earnings Per Share: Minus EUR 2.60, impacted by impairment losses.
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Pharmaceuticals Sales Growth: 3.3% increase on a currency and portfolio-adjusted basis.
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Pharmaceuticals EBITDA Margin: 26% for 2024.
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Consumer Health Sales Growth: 1.9% year over year.
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Consumer Health EBITDA Margin: 23.3%, in line with last year.
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Crop Science Sales Decline: 2% decrease, with an EBITDA margin of 19.4%.
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2025 Net Sales Outlook: EUR 45 billion to EUR 47 billion.
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2025 EBITDA Before Special Items Outlook: EUR 9.5 billion to EUR 10 billion.
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2025 Free Cash Flow Outlook: EUR 1.5 billion to EUR 2.5 billion.
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2025 Core Earnings Per Share Outlook: EUR 4.50 to EUR 5.
Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bayer AG (BAYRY) achieved a slight growth in net sales by 1% in 2024, driven by strong performance in pharmaceuticals and consumer health.
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The pharmaceuticals division exceeded expectations with significant growth in flagship products NUBEQA and KERENDIA, reaching EUR 2 billion in sales.
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The company successfully reduced its net debt to EUR 32.6 billion, reflecting a strong commitment to debt reduction.
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Bayer AG (BAYRY) completed nine positive Phase 3 trials and advanced over 20 clinical programs, indicating a robust pipeline for future growth.
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The consumer health division maintained a solid EBITDA margin of 23.3% despite currency headwinds, showcasing operational efficiency.
Negative Points
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The crop science division faced challenges with a 4% decline in sales due to pricing pressures from generics and regulatory hurdles.
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Bayer AG (BAYRY) anticipates a difficult financial performance in 2025, with net sales expected to be roughly in line with 2024 and earnings behind prior year.
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The loss of the Xarelto patent is expected to accelerate, leading to a decline in pharmaceutical sales and margins.
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The company faces ongoing litigation challenges, particularly related to glyphosate, which could impact financial performance.
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Foreign exchange headwinds significantly impacted the company's EBITDA, reducing it by almost EUR 600 million in 2024.
Q & A Highlights
Q: Can you provide an update on the Asundexian Phase 3 trial and its market potential? A: Stefan Oelrich, Head of the Pharmaceuticals Division, confirmed that the Asundexian Phase 3 trial is on track, with data expected in the second half of the year. The market potential depends on the trial's outcome and competition, but it could be a blockbuster if successful.