Group reports on solid start to 2025, but notes that earnings were “held back” by the performance of its crop science division
The Bayer Group has revealed its results for the opening quarter of 2025, describing the three-month performance as a “solid start” to the year.
Company sales came in at €13.74bn for the period, almost level with the prior-year quarter (down 0.1 per cent), while EBITDA before special items decreased by 7.4 per cent to just under €4.09bn.
According to Bayer, earnings were held back by the business performance of the crop science division, higher expenses for the group-wide long-term incentive (LTI) programme, and a negative currency effect of €165mn euros arising primarily from hyperinflationary impacts.
Sales in the agricultural business decreased as expected, falling 3.3 per cent to €7.58bn.
Net income decreased by 35.1 per cent to €1.299bn, while core earnings per share fell by 11.7 per cent to €2.49.
“Our first quarter puts us in a good spot to deliver in a challenging and important year for the company,” said CEO Bill Anderson.
Bayer said it was closely monitoring the current geopolitical and economic uncertainties, and analysing potential impacts on the company.
“Based on the current status of tariffs announcements and our mitigation measures, we expect to manage the impact, and we confirm our outlook at constant currencies for the full year 2025,” confirmed CFO Wolfgang Nickl.
The group also unveiled a new five-year plan for crop science to strengthen the company.
Anderson noted that Bayer had a plan in place to advance its strategic priorities, with profitability in the crop science division added as a focus area at the start of the year.
Bayer confirmed the mid-term ambition for crop science, with the division expected to achieve above-market growth and deliver more than €3.5bn of incremental sales from innovation by 2029.
By the same year, the division is targeting an EBITDA margin before special items in the mid-20s percentage range.
Cash productivity is also set to increase, with crop science targeting a free operating cash flow of over €3bn in 2029.
The division had a “comprehensive strategy” in place to achieve these goals, it said, and had already begun executing it.
The company has launched a five-year plan to combat industry-wide cost pressures, especially in the crop protection business.
The measures include streamlining the product portfolio, focusing research and development on value-generating innovations, and optimising the production network.
“We are radically focusing on improving profitability, delivering top-notch innovation and leveraging new value pools,” added Rodrigo Santos, head of the crop science division.
”We are taking decisive action on our challenges, and we are focusing the business to deliver innovations faster than ever before.”
