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Bayer (BAYRY) Q1 Earnings Fall Y/Y on Lower Product Sales

Bayer AG BAYRY reported first-quarter 2024 core earnings of 77 cents per American Depositary Receipt (ADR). The company reported earnings of 79 cents per ADR in the year-ago quarter.

Core earnings of €2.82 per share declined 4.4% year over year.

Total sales in the reported quarter were $14.95 billion (€13.77 billion), down 4.3% on a reported basis. On a currency and portfolio-adjusted basis, sales declined 0.6% year over year.

All growth rates mentioned below are on a year-over-year basis after adjusting for currency and portfolio changes.

Quarter in Detail

Bayer reports under three segments, namely Crop Science, Pharmaceuticals and Consumer Health.

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In the reported quarter, Crop Science sales declined 3% to €7.9 billion, primarily due to lower volumes for non-glyphosate-based herbicides and the Fungicides business in Europe/Middle East/Africa.

Herbicides sales plunged 13.3%, mainly due to adverse weather conditions and increased generic competition that led to substantial volume declines for non-glyphosate-based products, especially in Europe/Middle East/Africa. Lower prices for glyphosate-based products across all regions also contributed to the decline.

Fungicides sales were down 8.5%. Sales of Corn Seed & Traits improved 2% due to increased prices in all regions. Sales from the Soybean Seed & Traits business were flat year over year. The Insecticides business also grew 2.3% on the back of increased volumes in Europe/Middle East/Africa and North America. The Vegetable Seeds business rose 5% in the reported quarter, driven by price increases in all regions.

Year to date, shares of Bayer have lost 14.3% against the industry’s growth of 13.4%.

Zacks Investment Research
Zacks Investment Research


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BAYRY’s revenues in the Pharmaceuticals segment increased 3.9% to €4.4 billion in the first quarter. Sales declined in China due to the tender procedure, especially for Adalat (nifedipine). The drug’s sales plunged 23% globally during the reported quarter.

However, Bayer’s new products, Nubeqa for cancer and Kerendia for the treatment of patients with chronic kidney disease associated with type II diabetes, continued to grow in the reported quarter, along with its Radiology business. Nubeqa sales jumped 64.1%, recording gains in all regions and witnessing significant improvements in volumes, especially in the United States, EU and China. Kerendia sales surged 66.2%, mainly due to a substantial rise in volumes in the United States, along with business expansion in China.

Other product sales, such as the oral anticoagulant Xarelto, co-developed with J&J JNJ, rose 1.7% due to a rise in volumes in the EU. The improvements were, however, partially offset by competitive and pricing pressure from generics, especially in China. In the U.S. market, Xarelto is marketed by J&J. Bayer earns license revenues from JNJ for Xarelto sales in the United States, which were down year over year.

Sales of the ophthalmology drug, Eylea, increased 3.4%, driven by higher volumes and prices in all regions, particularly in Canada. Please note that Bayer’s HealthCare unit co-develops Eylea with Regeneron REGN. Regeneron records net product sales of Eylea in the United States. BAYRY records net product sales of Eylea outside the United States. REGN records its share of profits/losses in connection with sales of Eylea outside the United States.

Consumer Health sales declined 1.8% to €1.4 billion as customer demand reduced following a strong previous quarter in which inventories were replenished due to an improvement in the supply situation. Sales of cough, cold and allergy products fell 16.8% due to a weaker cold season.

Bayer’s Dermatology sales increased 7.3% to €349 million, driven by continued strong demand for Bepanthen. Sales in the Nutritionals category were relatively flat year over year.

2024 Guidance Updated

Bayer reiterated its previously provided currency-adjusted financial guidance for 2024.

On a currency-adjusted basis, the company expects to generate sales in the range of €47-€49 billion for the full year.

Core earnings per share are now anticipated between €4.80 and €5.20, down from the previous guidance of €4.95-€5.35.

On a currency-adjusted basis, the company forecasts core earnings per share in the range of €5.10-€5.50.

Bayer Aktiengesellschaft Price and EPS Surprise

Bayer Aktiengesellschaft Price and EPS Surprise
Bayer Aktiengesellschaft Price and EPS Surprise

Bayer Aktiengesellschaft price-eps-surprise | Bayer Aktiengesellschaft Quote

Zacks Rank & Stock to Consider

BAYRY currently carries a Zacks Rank #3 (Hold).

A better-ranked stock from the drug/biotech industry is Ligand Pharmaceuticals LGND, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2024 earnings per share has remained constant at $4.56. During the same time frame, the estimate for 2025 earnings per share has remained constant at $5.27. Year to date, shares of LGND have gained 17.7%.

Ligand beat estimates in each of the trailing four quarters, delivering an average surprise of 56.02%.

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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report

Johnson & Johnson (JNJ) : Free Stock Analysis Report

Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report

Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report

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