Bayer AG
DUS:BAYN
Bayer AG
Bayer AG, a German multinational behemoth, traces its roots back to 1863 in Barmen, when Friedrich Bayer and Johann Friedrich Weskott began their enterprise as a dye-making factory. Fast forward to the present day, and Bayer has evolved into a global powerhouse, seamlessly weaving through pharmaceuticals, consumer health, and agricultural science. At its core, Bayer’s business operations spin around its three main segments: Pharmaceuticals, Consumer Health, and Crop Science. The Pharmaceuticals division is the jewel in Bayer’s crown, focusing on prescription medicines across various therapeutic areas such as oncology, cardiology, and gynecology, allowing Bayer to cater to the world's increasing demand for healthcare solutions, which not only drive patient outcomes but also account for a significant chunk of revenue.
Not to be overshadowed, Bayer’s Crop Science division plays a pivotal role, emphasizing its strong commitment to sustainable agriculture. Here, the company develops seeds, traits, and crop protection products that appeal to farmers seeking to enhance yield and manage crop threats. Meanwhile, the Consumer Health division targets over-the-counter products, covering a range of everyday health issues, resonating with consumers seeking self-care solutions. Bayer’s ability to seamlessly integrate its scientific prowess into real-world applications enables the company to extract value across these sectors, creating an intricate mosaic of interdependent streams of revenue and continually reinforcing its stature as a leader in life sciences.
Bayer AG, a German multinational behemoth, traces its roots back to 1863 in Barmen, when Friedrich Bayer and Johann Friedrich Weskott began their enterprise as a dye-making factory. Fast forward to the present day, and Bayer has evolved into a global powerhouse, seamlessly weaving through pharmaceuticals, consumer health, and agricultural science. At its core, Bayer’s business operations spin around its three main segments: Pharmaceuticals, Consumer Health, and Crop Science. The Pharmaceuticals division is the jewel in Bayer’s crown, focusing on prescription medicines across various therapeutic areas such as oncology, cardiology, and gynecology, allowing Bayer to cater to the world's increasing demand for healthcare solutions, which not only drive patient outcomes but also account for a significant chunk of revenue.
Not to be overshadowed, Bayer’s Crop Science division plays a pivotal role, emphasizing its strong commitment to sustainable agriculture. Here, the company develops seeds, traits, and crop protection products that appeal to farmers seeking to enhance yield and manage crop threats. Meanwhile, the Consumer Health division targets over-the-counter products, covering a range of everyday health issues, resonating with consumers seeking self-care solutions. Bayer’s ability to seamlessly integrate its scientific prowess into real-world applications enables the company to extract value across these sectors, creating an intricate mosaic of interdependent streams of revenue and continually reinforcing its stature as a leader in life sciences.
Sales: Group sales grew by 1% year-over-year in Q3 on a currency and portfolio adjusted basis, despite significant FX headwinds.
Earnings: Core EPS was EUR 0.57 for Q3, up EUR 0.33 from last year, driven by higher EBITDA and lower interest expenses.
Margins: Group EBITDA margin year-to-date is 26.1%, slightly down due to pricing pressure, FX effects, and investment in launches.
Crop Science: Crop Science sales increased 1% in Q3, with corn up 22% and core crop protection down 2%. Growth expected to continue in Q4, especially for glyphosate.
Pharma: Strong momentum for launch brands Nubeqa (up 56% YoY in Q3) and Kerendia (up 85% YoY in Q3), offsetting declines in Xarelto and Eylea.
Consumer Health: Market remains challenging, especially in the US and China; full-year sales growth guidance lowered to -1% to +1%.
Litigation: Additional EUR 934 million provisioned for litigation in Q3; management confident in multipronged strategy to contain risk by end 2026.
Guidance: Full-year 2025 group outlook confirmed; confidence in top and bottom line delivery for Crop Science and Pharma, with profitability targets reiterated.
