Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bayer AG (BAYRY, Financial) achieved a slight growth in net sales by 1% in 2024, driven by strong performance in pharmaceuticals and consumer health.
- The pharmaceuticals division exceeded expectations with significant growth in flagship products NUBEQA and KERENDIA, reaching EUR 2 billion in sales.
- The company successfully reduced its net debt to EUR 32.6 billion, reflecting a strong commitment to debt reduction.
- Bayer AG (BAYRY) completed nine positive Phase 3 trials and advanced over 20 clinical programs, indicating a robust pipeline for future growth.
- The consumer health division maintained a solid EBITDA margin of 23.3% despite currency headwinds, showcasing operational efficiency.
Negative Points
- The crop science division faced challenges with a 4% decline in sales due to pricing pressures from generics and regulatory hurdles.
- 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.
- The loss of the Xarelto patent is expected to accelerate, leading to a decline in pharmaceutical sales and margins.
- The company faces ongoing litigation challenges, particularly related to glyphosate, which could impact financial performance.
- 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.
Q: What are the expectations for dicamba and glyphosate in the crop science division?
A: Rodrigo Santos, Head of Crop Science, stated that they are working with the EPA for dicamba's return in 2026. Glyphosate pricing could benefit from tariffs on Chinese imports, but this is not yet factored into their plans.
Q: How did the short-stature corn trials perform, and what are the future expectations?
A: Rodrigo Santos reported positive results from the short-stature corn trials, with higher yields observed. They plan to expand trials and expect significant market penetration with future biotech and gene-edited versions.
Q: What is the status of the PCB litigation and its potential impact?
A: Bill Anderson, Chairman, explained that the Washington State Supreme Court's decision on the PCB case could significantly impact other verdicts. A ruling is expected possibly by mid-year, but it could extend into next year.
Q: How is Bayer addressing profitability in the crop science division?
A: Bill Anderson emphasized that improving crop science profitability is now a key focus due to structural issues in the market. They are implementing measures to address these challenges and enhance margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
