Bayer: negative third quarter and reductions on the horizon

Bayer confirmed its outlook for 2023 after releasing third-quarter numbers that fell from the previous year. Group sales reached €10,342 billion. Similar value "to the same period of the previous year on a currency and portfolio adjusted basis", according to the company's statement.

EBITDA before special items decreased by 31,3% to €1,685 billion, mainly due to "the decline in profits in the Crop Science division". There was a loss of €4,569 billion (3rd quarter 2022: profit of €546 million).

“The results came in largely as we expected, knowing that the third quarter is never our strongest quarter,” he said. Bill Anderson (in the photo), CEO of the company, this Wednesday. “We are redesigning Bayer to focus only on what is essential to our mission – and get rid of everything else.” By the end of next year, Bayer will remove multiple layers of management and coordination, he confirmed. (Cultivar Magazine reported on these reductions in "Reuters Agency reveals possible cuts at Bayer")

“This step will free our teams to focus on the mission necessary to turn the situation around. Ninety-five percent of decision making in the organization will move from managers to the people doing the work.” That includes “significant reductions in the workforce,” Anderson said.

In terms of structural options, in addition to maintaining three divisions, a separation between Consumer Health and Agricultural Science continues to be evaluated. The company will release further details in March on Capital Markets Day, alongside the publication of its annual report and 2024 guidance.

Sales of Bayer's Crop Science division

Sales in the agricultural business (Crop Science) were stable: €4,365 billion, as reported by the company. Higher volumes in all regions were primarily offset by lower prices for glyphosate-based products.

Sales at "Corn Seed & Traits" increased 21,2%. Fungicide business increased 16,2%, mainly due to higher volumes in Latin America. The soybean seed business also recorded growth of 15,6%, driven mainly by higher license revenues in Latin America. On the other hand, Herbicide sales decreased by 17,3%, with substantial price drops offsetting higher volumes in all regions.

EBITDA before special items in the Crop Science division fell to a loss of €24 million (Q3 2022: profit of €629 million), mainly due to lower prices for glyphosate-based products.