Core Viewpoint - Bayer AG reported a decline in core earnings and sales in the fourth quarter of 2024, primarily due to challenges in its Crop Science and Pharmaceuticals divisions, while the overall performance showed some resilience in the Pharmaceuticals segment [1][12][16]. Financial Performance - Core earnings for Q4 2024 were 28 cents per ADR, down from 50 cents per ADR in the same quarter last year, reflecting a 43.2% year-over-year decline [1]. - Total sales for the quarter were 12.02 billion [2][12]. - For the full year 2024, revenues totaled 48.94 billion, with core earnings per ADR of $1.36 also beating expectations [12]. Segment Performance - Crop Science sales fell by 2.3% to €5.4 billion, impacted by lower prices in the crop protection business due to competitive pressures [4]. - Pharmaceuticals segment revenues increased by 2.4% to €4.6 billion, driven by strong sales of Nubeqa and Kerendia, which surged by 73.4% and 62% respectively [7][8]. - Consumer Health sales decreased by 0.9% to €1.6 billion, with declines in Nutritionals and Allergy & Cold categories, although Dermatology and Pain & Cardio categories showed growth [11]. Future Guidance - Bayer expects 2025 sales to range between €45-€47 billion, with Crop Science projected to have a currency and portfolio-adjusted sales growth of -2% to +2%, and Pharmaceuticals expected to decline by -4% to -1% [13]. - Core EPS for 2025 is projected to be between €4.50 and €5 [13]. Pipeline Developments - Bayer announced positive results from its phase III OASIS 4 study for elinzanetant, which is under review in the U.S. and EU [14]. - The company has submitted regulatory applications for finerenone for heart failure treatment in the U.S. and China [15]. Market Context - Bayer's stock has underperformed, losing 14.3% over the past year compared to the industry growth of 2.4% [2]. - The company faces ongoing challenges, including litigation related to Roundup, which has impacted its financials and dividend policies [16][17].
Bayer Q4 Earnings In Line, Revenues Top on Nubeqa, Kerendia Sales