The Bayer Group has made a solid start to the year. The first quarter 2025 results highlight earnings growth in the Pharmaceuticals Division in particular. The company expects the division's sales growth and profit margin to be in the upper end of its full-year forecast range.

The division is expected to achieve above-market growth, generating more than €3.5 billion in incremental innovation revenue by 2029. The division is targeting an EBITDA margin before special items of around 25% by that year. Cash flow productivity is also set to increase, with Crop Science targeting free operating cash flow of more than €3 billion in 2029. This is an encouraging sign that our operating model is helping teams do more with less,” said CEO Bill Anderson .

For his part, CFO Wolfgang Nickl said: "Based on the current status of tariff announcements and our mitigation measures, we plan to manage the impact and confirm our constant exchange rate forecast for the full year 2025."

The Crop Science Division has a comprehensive strategy to achieve these goals and has already started to implement it. The company has launched a five-year plan to counter industry-wide cost pressure, especially in the crop protection sector. Measures include streamlining the product portfolio, focusing research and development (R&D) on value-generating innovations, and optimizing the production network. In doing so, the Crop Science Division aims not only to improve its position in the medium term, but also to increase the resilience and adaptability of the entire organization to manage macroeconomic and geopolitical uncertainties.

With the world population set to reach 10 billion in 2050, the future of agriculture lies in innovative solutions that enable farmers to produce more while reducing environmental impact and restoring soil health. As an innovation leader in the industry, the Crop Science Division is committed to delivering successful new products and tools that enable regenerative farming systems. Examples include the Preceon smart corn system, Vyconic soybeans, an industry-first trait package with five-herbicide tolerance, and the new herbicide icafolin.
"We are radically focusing on improving profitability, delivering world-class innovation and tapping into new value pools. We are decisively addressing our challenges and focusing our business to deliver innovations faster than ever before," Rodrigo Santos, member of the Board of Management of Bayer AG and head of the Crop Science division, said in an investor webinar.

Group sales amounted to EUR 13.738 billion in the first quarter of 2025. Adjusted for currency and portfolio effects (adj. currency and portfolio), sales were unchanged compared to the prior-year quarter (minus 0.1%). The negative currency effect amounted to EUR 55 million (first quarter 2024: EUR 525 million). EBITDA before special items decreased by 7.4% to EUR 4.085 billion. Earnings were dampened by the business performance of the Crop Science division, higher expenses for the Group-wide long-term incentive (LTI) program and a negative currency effect of EUR 165 million (first quarter 2024: EUR 206 million), mainly resulting from the impact of hyperinflation.

EBIT decreased by 24.8% to EUR 2.324 billion after net extraordinary expenses of EUR 587 million (Q1 2024: EUR 207 million). The extraordinary expenses mainly related to provisions for legal disputes related to Roundup and expenses for ongoing restructuring measures.

Net income decreased by 35.1% to EUR 1.299 billion, while core earnings per share decreased by 11.7% to EUR 2.49, mainly due to lower EBITDA before special items in the Crop Science division. Free cash flow improved to EUR -1.528 billion (Q1 2024: EUR -2.626 billion), mainly due to advance payments from Crop Science customers, which partially offset negative seasonal impacts related to the cyclical nature of the division's business. Net financial debt as of March 31, 2025 amounted to EUR 34.255 billion.