Group sales rise by 14.3 percent (Fx & portfolio adj.) to 9.781 billion euros / EBITDA before special items increases by 16.4 percent to 2.089 billion euros / Crop Science reports strong increase in sales and earnings / Pharmaceuticals and Consumer Health again post considerable sales growth / Core earnings per share advance by 29.6 percent to 1.05 euros / Net income at 85 million euros / Free cash flow remains strong at 1.954 billion euros / Revised outlook confirms good business performance
The Bayer Group registered a significant increase in deals and earnings in the third quarter of 2021. “ We delivered strong functional performance, with all divisions showing strong growth instigation,” said Werner Baumann, Chairman of the Board of Management, on Tuesday when presenting the company’s third- quarter results. Bayer posted substantial growth in the agrarian business, while the Medicinals Division served in particular from large earnings for the Eylea ™ ophthalmology medicine. Business at the Consumer Health Division was over in all regions and product orders. Bayer has also streamlined the upgraded outlook for 2021 that it had issued in August.
Group deals in the third quarter of 2021 rose by14.3 percent on a currency-and portfolio- acclimated base (Fx & portfolioadj.) to9.781 billion euros. There was a positive currency effect of 67 million euros. EBITDA before special particulars increased by16.4 percent to2.089 billion euros, and included a negative currency effect of 44 million euros. EBIT came in at 530 million euros (Q3 2020 minus9.399 billion euros) after net special charges of 694 million euros (Q3 202010.181 billion euros) that primarily related to restructuring measures at all three divisions. Net income amounted to 85 million euros (Q3 2020 minus2.744 billion euros), while core earnings per share advanced by29.6 percent to1.05 euros, substantially due to the development of business within the Crop Science Division.
Free cash inflow increased by58.0 percent to1.954 billion euros. Net fiscal debt as of September 30, 2021, dropped to33.981 billion euros, down1.1 percent from June 30, 2021.
Crop Science reports strong deals earnings and significant earnings growth
In the agrarian business (Crop Science), deals rose by25.8 percent (Fx & portfolioadj.) to3.850 billion euros thanks to a substantial increase in volumes and prices. Growth was particularly strong at Sludge Seed & Traits (Fx & portfolioadj.92.6 percent), driven by earnings in North America due to lower product returns and the after damage of license earnings. As anticipated, these license earnings were recorded in the third quarter this time as opposed to the alternate quarter as in 2020. Deals also advanced in Latin America due to the launch of the new VTPro4 particularity for bettered pest control as well as advanced volumes and prices. Soybean Seed & Traits also registered strong growth (Fx & portfolioadj.58.0 percent), driven by earnings in North America – due to lower product returns and advanced license earnings – and in Latin America as a result of advanced prices and volumes.
EBITDA before special particulars at Crop Science rose to 471 million euros (Q3 2020 minus 34 million euros), performing in a periphery of12.2 percent. The enhancement in earnings was substantially attributable to advanced prices and volumes, an increase in license earnings, and benefactions from ongoing effectiveness programs. By discrepancy, earnings were lowered in particular by an increase in the cost of goods vended.
Consumer Health continues to grow and increases earnings
Deals of tone- care products (Consumer Health) came in at1.346 billion euros, up10.9 percent (Fx & portfolioadj.) against a veritably strong previous- time quarter, with growth in all regions and orders. Business primarily served from continued high demand in Nutritionals, which saw deals rise20.1 percent (Fx & portfolioadj.), and the launch of innovative products in all orders throughout the time. The Pain & Cardio order also registered particularly strong growth of17.4 percent (Fx & portfolioadj.)
EBITDA before special particulars at Consumer Health increased by2.3 percent to 308 million euros, performing in a periphery of22.9 percent. The growth in earnings was driven by the division’s strong business performance and nonstop cost operation sweats. This was incompletely neutralize by investments associated with the launch of innovative products and by affectation- related increases in costs.
Grounded on the ending exchange rates on September 30, 2021, the company continues to anticipate full- time deals to come in at roughly 43 billion euros. This now corresponds to currency-and portfolio- acclimated deals growth of roughly 7 percent ( preliminarily roughly 6 percent). The EBITDA periphery before special particulars is now anticipated to amount to roughly25.5 percent ( preliminarily roughly 25 percent). The company is now anticipating core earnings per share of roughly6.10 euros to6.30 euros ( preliminarily roughly6.00 euros to6.20 euros). Free cash inflow is now anticipated to come in at between roughly minus0.5 billion euros and minus1.5 billion euros ( preliminarily between roughly minus 2 billion euros and minus 3 billion euros). The company’s cast for net fiscal debt remains unchanged at around 35 billion euros.
About Bayer
Bayer is a global enterprise with core capabilities in the life wisdom fields of health care and nutrition. Its products and services are designed to help people and earth thrive by supporting sweats to master the major challenges presented by a growing and growing global population. Bayer is committed to drive sustainable development and induce a positive impact with its businesses. At the same time, the Group aims to increase its earning power and produce value through invention and growth. The Bayer brand stands for trust, trustability and quality throughout the world. In financial 2020, the Group employed around people and had deals of41.4 billion euros. R&D charges before special particulars amounted to4.9 billion euros.
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