Bayer Group reports modest Q2 financials amid challenging market

GERMANY – Bayer Group has announced modest financial results for the second quarter (Q2) of 2024, revealing a rise in sales but a decline in earnings due to a tough agricultural market.

For Q2 2024, Bayer’s sales grew by 3.1% to €11.14 billion (USD 12.27 billion) when adjusted for currency and portfolio changes.

Despite this increase, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items fell by 16.5% to €2.11 billion (USD 2.32 billion).

The decrease was primarily attributed to an unfavorable product mix and a negative currency impact of €240 million (USD 264.39 million).

In Bayer’s Crop Science division, which focuses on agricultural products, sales rose by 1.1% to €4.98 billion (USD 5.49 billion).

This growth was driven largely by increased sales of glyphosate-based herbicides, with North America showing particularly strong performance.

However, the EBITDA for Crop Science dropped by 27.7% to €524 million (USD 577 million), despite a positive currency effect of €49 million (USD 54 million).

CEO Bill Anderson commented on the results, stating, “Our Crop Science business nearly offset headwinds in a challenging agricultural market environment.” He added, “We remain on track to deliver on our full-year 2024 outlook.”

In East Africa, Bayer’s commitment to high standards in crop protection is evident. Joern Kraegeloh, Bayer’s Crop Science Commercial Lead and Managing Director for East Africa, emphasized the company’s adherence to safety and environmental regulations.

“At the core of Bayer’s crop protection initiatives is a commitment to compliance with established standards and thorough risk assessments,” Kraegeloh said.

“In Kenya, we ensure that all products are certified by the Pesticide Control Products Board, which regulates all aspects of pest control products to protect both consumers and the environment.”

Kraegeloh also highlighted Bayer’s dedication to rigorous research, noting that “before any product is launched, it undergoes over 10 years of intense research and scientific study to ensure safety for humans and the environment.”

Additionally, Bayer is working with industry players, national regulators, and stakeholders to improve the use of pesticides and support the professionalization of agriculture.