Bayer AG Revenue & Financials

For the fiscal year ended December 31, 2024, Bayer AG reported total group sales of $50800.5 million ($50.8 billion at average 2024 EUR/USD exchange rate of approximately 1.09), representing a 2.2% decline on a reported basis but 0.7% growth on a currency- and portfolio-adjusted basis. The discrepancy reflects substantial negative currency effects of $1470.4 million, primarily from euro strength against emerging market currencies. The company reported a net loss of $2781.7 million attributable to Bayer AG stockholders, compared to a net loss of $3205.7 million in 2023. On a per-share basis, this translated to diluted loss per share of $2.8, compared to $3.3 in 2023. The net loss was driven by $4813.4 million in net special charges, primarily comprising litigation-related expenses, restructuring costs, and impairment losses. EBITDA before special items declined 13.5% to $11034.1 million from $12751.9 million in 2023, with the EBITDA margin before special items falling to 21.7% from 24.6%. Core earnings per share, the company's preferred non-GAAP metric, fell to $5.5 from $6.9 in 2023—a 20.1% decline. The divisional financial performance varied significantly. Pharmaceuticals sales rose 3.3% (currency- and portfolio-adjusted) to $19762.8 million, but EBITDA before special items fell 9.0% to $5147.0 million due to product mix shifts (declining high-margin Xarelto, growing lower-margin new launches), increased selling expenses for new products, and a negative currency effect of $535.2 million. The EBITDA margin before special items declined to 26.0% from 28.7%. Crop Science sales fell 2.0% (currency- and portfolio-adjusted) to $24262.3 million, with EBITDA before special items declining to $4714.2 million from $5414.0 million. The division faced price declines in crop protection amid competitive pressure, a 19% decline in glyphosate sales, and lower corn acreage in Latin America. The EBITDA margin before special items was 19.4%, unchanged from 2023. Consumer Health sales rose 1.9% (currency- and portfolio-adjusted) to $6398.3 million, with EBITDA before special items of $1488.9 million, down 3.2%. The EBITDA margin before special items was 23.3%, down 0.1 percentage points. The cost structure reveals margin pressure across all divisions. Cost of goods sold increased 7.7% to $23184.3 million, with the ratio to sales rising to 45.6% from 41.5%. Selling expenses rose 7.1% to $14566.8 million. R&D expenses increased 15.6% to $6767.8 million, reflecting investments in cell and gene therapy, chemoproteomics, and early-stage research. General administration expenses rose 4.9% to $2805.7 million. Personnel expenses surged 16.5% to $13571.6 million, driven by restructuring program costs and incentive program expenses. EBIT was negative $77.4 million, compared to positive $667.1 million in 2023, after special charges of $4813.4 million. The financial result was negative $2466.7 million, broadly stable from negative $2434.0 million in 2023, reflecting interest expense on the substantial debt load. Income before income taxes was negative $2544.1 million. Income taxes provided a $231.1 million benefit (due to loss carryforwards and jurisdictional mix), resulting in the net loss of $2775.1 million from continuing operations. Free cash flow improved to $3.4 billion in 2024, up from lower prior-year levels, driven by working capital improvements and reduced capital expenditures. However, the 2025 guidance projects free cash flow of only $1.6-2.5 billion, reflecting continued litigation cash outflows, restructuring costs, and higher capital investment. Net financial debt stood at approximately $36.0 billion as of December 31, 2024, down from higher levels but still representing a debt-to-equity ratio of 134.27%. The balance sheet shows total equity of approximately $28.9 billion and total debt of approximately $38.7 billion. The 2025 guidance calls for sales of $49.1-47 billion (currency- and portfolio-adjusted change of -3% to +1%), EBITDA before special items of $10.4-10.0 billion (-6% to -1%), core EPS of $4.9-5.00 (-11% to -1%), and free cash flow of $1.6-2.5 billion. The financial narrative is therefore one of a company in defensive mode: managing decline in legacy products, investing in new launches, funding litigation defense, and restructuring operations—all while trying to reduce debt and preserve cash.