Bayer closes 2022 on strong growth
Multinational company reports sales at 50.7 billion euros, up 8.7 percent
The Bayer Group ended 2022 with "strong growth" and a significant increase in sales and profits. Sales reached 50.7 billion euros, an increase of 8.7 percent, ebitda increased by 20.9 percent to 13.5 billion euros with margin increasing to 26.6 percent from 25.4 percent in 2021. Free cash flow more than doubled from the previous year, rising to 3.1 billion euros.Net financial debt amounted to 31.8 billion, down 4 percent from the end of 2021.
"The year 2022 was a very successful year for Bayer, despite the challenging environment -explained Chairman Werner Baumann-. We were able to deliver results even in these difficult times and achieved the updated financial targets we set in August. Health and nutrition are basic human needs. Our vision of health for all, hunger for none is and will remain vital, especially in times like these".
Agricultural (Crop Science) sales increased by 15.6 percent to a record 25.1 billion euros, with increased business in all regions. The greatest growth was seen in the herbicides sector (+43.9%), which saw increased sales in Latin America and North America, and particularly in Europe, the Middle East, and Africa, due to higher prices in the face of a limited supply of glyphosate products.
The outlook according to Baumann is for a business that remains "at a high level" growing by "2 percent to 3 percent in 2023. "The company -the chairman explains-, expects lower prices for agricultural herbicides and some of its established pharmaceuticals. Expected sales growth for other parts of the portfolio and new products should have a positive impact. As for profit in 2023, growth-driven contributions to margins and the positive effects of ongoing efficiency programs will not be sufficient to offset the expected price declines and high cost increases due to inflation, which are expected to continue".
Bayer expects to generate sales of € 51-52 billion in 2023, with ebitda of € 12.5-13 billion, earnings per share of € 7.20-7.40, and free cash flow of about € 3 billion, while keeping net debt more or less stable, which, at the end of 2023, is expected to be € 32-33 billion. Regarding the divisions, Bayer expects sales growth of about 3 percent for Crop Sciencecon an ebitda between 25 percent and 26 percent for the Crop Science division.
EFA News - European Food Agency