Leverkusen, February 28, 2023 – The Bayer Team achieved powerful growth previous yr, submitting appreciably greater profits and earnings. “2022 was a very prosperous calendar year for Bayer even with the complicated surroundings. We were being equipped to deliver, even during these tricky times, and fulfilled the upgraded monetary targets we set in August,” mentioned Werner Baumann, Chairman of the Board of Management, at the company’s Monetary News Conference on Tuesday. The business is lively in the proper fields, he reported. “Health and diet are elementary human requirements. Our eyesight of Health for all, starvation for none is and will remain vitally essential, specially in times like these.”
Team profits arrived in at fifty.739 billion euros in 2022, up eight.7 percent on a currency- and portfolio-adjusted basis (Forex & portfolio adj.). EBITDA in advance of exclusive merchandise rose by 20.9 percent to thirteen.513 billion euros, and included a beneficial forex impact of 429 million euros (2021: adverse forex result of 507 million euros). The EBITDA margin in advance of particular goods increased to 26.6 percent (2021: 25.four per cent). EBIT amounted to seven.012 billion euros, and was thus extra than twice as higher as in the previous yr. Internet revenue came in at 4.150 billion euros (2021: one.000 billion euros), even though core earnings for every share rose by 22.0 percent to seven.94 euros.
Totally free dollars circulation more than doubled against the prior yr, increasing to three.111 billion euros. Internet monetary debt amounted to 31.809 billion euros as of December 31, 2022, down 4.0 percent from 12 months-finish 2021. Income inflows from functioning things to do and the sale of the Environmental Science Specialist small business ended up partially offset by money outflows for dividends and negative forex effects.
“These are extremely excellent success. Alongside one another with the Supervisory Board, we are hence proposing a dividend of 2.40 euros to the Annual Stockholders’ Meeting. This represents a twenty p.c boost in contrast to the past year,” mentioned Chief Fiscal Officer Wolfgang Nickl. With 982.42 million shares entitled to the dividend, the company is hence established to distribute a whole of 2.358 billion euros to stockholders for fiscal 2022 (fiscal 2021: one.965 billion euros).
Crop Science achieves report income and business-top margin
Sales in the agricultural enterprise (Crop Science) advanced by 15.6 percent (Fx & portfolio adj.) to a history twenty five.169 billion euros, with business up in all areas. Advancement was strongest at Herbicides (Forex & portfolio adj. 43.nine per cent), which noticed profits rise in Latin and North The united states and in Europe/Middle East/Africa in certain thanks to bigger price ranges, as source for glyphosate-dependent goods was tight. Profits at Corn Seed & Traits rose 8.8 percent (Forex & portfolio adj.) as the division amplified its marketplace share. Price increases in all locations extra than offset a lower in acreages in North The us and reduce license revenues. Product sales at Fungicides ended up up 5.2 percent (Forex & portfolio adj.), with greater selling prices in the Latin America and Europe/Middle East/Africa regions in individual far more than offsetting a decrease in volumes in North America. Profits at Soybean Seed & Traits were stage with the prior yr, with business enterprise expanding in Latin The us but declining in North The usa because of to reduce volumes.
EBITDA in advance of specific items at Crop Science innovative by 46.2 percent to six.867 billion euros, primarily due to the significant raise in revenue. Earnings also benefited from contributions from ongoing effectiveness programs and a optimistic currency effect of 284 million euros (2021: negative forex result of 387 million euros). By contrast, earnings have been predominantly diminished by an raise in the price of goods offered, which was largely because of to significant inflation. The EBITDA margin ahead of unique goods elevated by 4.1 percentage factors to an field-major 27.3 percent.
Prescribed drugs added benefits from new items and Eylea™
Revenue of prescription medications (Prescribed drugs) amplified by 1.1 percent (Fx & portfolio adj.) to 19.252 billion euros. More than 50 % a billion euros in sales came from the division’s new merchandise: the most cancers drug Nubeqa™ and Kerendia™ for the treatment of long-term kidney disorder connected with style 2 diabetes. Gross sales of Nubeqa™, for instance, nearly doubled yr on 12 months. Strong progress was also recorded for the ophthalmology drug Eylea™ (Fx & portfolio adj. in addition nine.2 percent) and in the radiology enterprise, which involves the Gadovist™ (Fx & portfolio adj. plus 9. p.c) and Ultravist™ (Fx & portfolio adj. moreover seventeen.5 percent) product or service lines. This was partly offset by declines because of to components these as extra tender processes in China, particularly for the oral anticoagulant Xarelto™ (Forex & portfolio adj. minus 5.8 per cent) and the most cancers drug Nexavar™ (Fx & portfolio adj. minus forty one.2 percent). Xarelto™ gross sales have been also impacted by price strain in the United Kingdom and the expiration of the patent in Brazil.
EBITDA ahead of particular things at Pharmaceuticals rose by one.6 percent to 5.873 billion euros, benefiting from the raise in gross sales and, to a lesser extent, from cash flow from the sale of non-main companies. Earnings were being diminished by investments in advertising new goods and greater exploration and development expenditures for platform systems and projects in state-of-the-art medical development. In addition, better charges owing to a sharp maximize in procurement rates had a unfavorable influence. There was a beneficial forex result of 9 million euros (2021: adverse forex effect of 77 million euros). The EBITDA margin prior to unique goods declined by 1. percentage details to thirty.5 percent.
Consumer Wellbeing grows business enterprise in all regions and types
Gross sales of self-care merchandise (Client Well being) rose by 8.4 percent (Fx & portfolio adj.) to six.080 billion euros, with advancement in all areas and categories towards a solid prior calendar year. The Allergy & Chilly business enterprise registered the strongest gains, with revenue up by a considerable 21.5 percent pursuing consistently elevated cold incidence premiums and the start of the Astepro™ antihistamine nasal spray in the United States. The Dermatology group also realized double-digit proportion progress (Forex & portfolio adj. 10.five percent), in element because of to bigger need for Bepanthen™. Just after a quite potent prior year, the Nutritionals business enterprise also registered an increase in product sales (Fx & portfolio adj. 1. p.c).
EBITDA just before specific products at Consumer Wellness rose by 14.9 percent to one.367 billion euros next the substantial increase in revenue, solid contributions from productiveness applications and lively value management. The division reached this progress in a company surroundings that was impacted by sizeable inflation-related value increases even though also creating big investments in the start of innovative products and solutions, especially for Astepro™. There was a beneficial currency impact of 85 million euros (2021: negative forex impact of 39 million euros). The EBITDA margin before special goods came in at 22.5 percent, matching the prior-year determine.
Outlook: Even more expansion in gross sales – Earnings beneath prior 12 months thanks to inflation and selling price components
“Following two consecutive many years of high single-digit proportion development costs, we hope our company to continue to be at a substantial stage and increase by two to a few % in 2023 on a currency- and portfolio-modified basis,” claimed Baumann. The corporation anticipates decrease selling prices for agricultural herbicides as effectively as for some of its recognized pharmaceutical products. Projected revenue advancement in the other parts of the portfolio and from new goods are predicted to have a positive impact. As regards earnings in 2023, advancement-pushed margin contributions and beneficial effects from ongoing effectiveness courses will not be enough to offset the expected drop in rates as well as significant inflation-driven price tag will increase, which are envisioned to proceed.
On a currency-altered basis (i.e. centered on the average month to month exchange premiums in 2022), Bayer expects to deliver profits of 51 billion to 52 billion euros in 2023. The corporation anticipates EBITDA in advance of specific objects of 12.5 billion to 13.0 billion on a forex-altered basis (Fx adj.). It forecasts core earnings for each share of seven.20 to 7.forty euros (Forex adj.) and absolutely free funds circulation of somewhere around three.0 billion euros (Forex adj.). Web economic personal debt as of yr-conclusion 2023 is envisioned to quantity to 32 billion to 33 billion euros (Fx adj.).
With respect to the divisions, Bayer anticipates product sales growth (Fx & portfolio adj.) of about 3 percent at Crop Science, around 1 percent at Prescription drugs, and around 5 percent at Consumer Health. The firm also expects the EBITDA margin prior to unique objects (Fx adj.) to come in at twenty five to 26 percent at Crop Science, previously mentioned 29 percent at Prescription drugs, and about 23 percent at Purchaser Wellbeing.
Bayer has also well prepared its guidance centered on the closing trade costs as of December 31, 2022, and the variances to the forex-modified forecast higher than are as follows: Team income are anticipated to occur in at 50 billion to 51 billion euros, and the Pharmaceuticals Division’s EBITDA margin just before special objects is projected to sum to all-around 30 percent.
Major strides in innovation and sustainability
Bayer has also built considerable progress in launching and establishing improvements. This is evident in the Prescription drugs Division, for occasion, with the items Nubeqa™ and Kerendia™ as well as jobs in late-phase growth, these kinds of as asundexian for the prevention of stroke in atrial fibrillation sufferers and elinzanetant for the treatment of girls in menopause. The business currently believes that these key advancement motorists have a blended peak revenue probable of more than 12 billion euros every year. The Crop Science Division superior the start of new merchandise that are designed to defend harvests even more proficiently and reduce environmental affect. In the industry of biologicals, it shifted its investigation solution to an open up innovation model, with the division engaging in strategic collaborations with the Boston-based mostly biotech organization Ginkgo Bioworks and the Spanish biologicals company Kimitec, for illustration. At last, the Buyer Well being Division strengthened its products portfolio with the addition of Astepro™, the initially steroid-free of charge antihistamine spray on the US sector that is out there above the counter. It commences to function considerably more quickly, giving allergy sufferers with the reduction they need to have.
Turning to the company’s sustainability targets, Baumann spelled out: “In 2022, we after all over again managed to cut down our greenhouse fuel emissions in general – when at the same time accomplishing dynamic progress in our businesses.” The company’s attempts are attaining ever greater recognition, he remarked, with MSCI getting upgraded its environmental, social and governance (ESG) ranking for Bayer from “BB” to “A”. In addition, the firm has for the very first time created it into the prime ten in the renowned Access to Drugs index, Baumann extra. The index ranks firms in conditions of their similar endeavors in low- and center-cash flow nations. Bayer is also generating excellent progress in attaining its formidable social accountability objectives, he claimed. By 2030, the enterprise aims to help a hundred million smallholder farmers in small- and center-income international locations (LMICs), fulfill the require of 100 million ladies in LMICs for fashionable contraception, and assistance a hundred million persons in underserved communities with self-care.
The following tables incorporate the crucial facts for the Bayer Grou p and its divisions for the comprehensive yr and the fourth quarter of 2022.
The comprehensive Once-a-year Report 2022 is readily available on the world wide web at:
The Sustainability Report 2022 is also posted on the net at:
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