Bayer reports strong growth, warns of lower 2023 earnings

The German pharmaceuticals and biotechnology giant said that was driven largely by a strong performance in crop science, which saw a surge in sales.

Pharmaceuticals also experienced growth, with the consumer health sector maintaining a dynamic pace.

The company's EBITDA before special items rose 20.9% to €13.51bn, which Bayer said reflected strong performance across its various sectors.

Core earnings per share saw a 22% increase to 794 euro cents, while the net income stood at €4.15bn.

The firm’s free cash flow increased to €3.11bn, while its net financial debt reduced to €31.81bn.

Bayer’s board proposed a dividend of 240 cents per share, making for a 20% increase over the previous year.

Operationally, Bayer said new products launched in the period saw significant growth, adding that there were encouraging developments in its research pipeline.

The firm said it also made significant progress in its efforts to achieve its long-term sustainability targets.

Its outlook for 2023 showed an increase in sales after adjustment for currency and portfolio effects, although EBITDA before special items and core earnings per share were set to be lower, mainly due to high inflation.

“2022 was a very successful year for Bayer despite the challenging environment,” said management board chairman Werner Baumann.

“We were able to deliver, even during these difficult times, and met the upgraded financial targets we set in August.

“Health and nutrition are fundamental human needs - our vision of health for all, hunger for none is and will remain vitally important, especially in times like these.”

At 1335 CET (1235 GMT), shares in Bayer AG were down 3.24% at 56.68p.

Reporting by Josh White for Sharecast.com.