The Bayer Group performed as expected in the opening months of the year.

“First-quarter sales declined slightly versus the prior year. The Pharmaceuticals Division saw gains in growth and profitability, and the Crop Science Division outperformed in a difficult market. Consumer Health started slower, but is set to get back to growth over the course of the year,” CEO Bill Anderson said on Tuesday when presenting the company’s quarterly statement for the first quarter.

He reaffirmed Bayer’s outlook for 2024 at constant currencies. Anderson also commented on the company’s strategic priorities. “In March, I highlighted four areas we’re focused on to get Bayer back on track. Two months later, we’ve made progress in each one,” he said, referring to growth and innovation, the US litigation, cash and deleveraging, and the new Dynamic Shared Ownership (DSO) operating model.

Regarding the implementation of DSO, Bayer’s CEO explained: “We’re consolidating roles, designing teams for more impact, and taking out layers. The most important measure of our impact will be much greater than a job number or a cost savings target. It will be in our ability to innovate, grow our businesses, and improve life for our customers.”

Group sales came in at € 13.76 billion in the first quarter of 2024, and were therefore slightly below the prior-year figure on a currency- and portfolio-adjusted basis (Fx & portfolio adj. minus 0.6 percent). There was a negative currency effect of € 525 million (Q1 2023: positive currency effect of € 102 million). EBITDA before special items decreased by 1.3 percent to € 4.41 billion. EBIT advanced by 4.0 percent to € 3.09 billion after net special charges of € 207 million (Q1 2023: € 431 million). The special charges primarily related to expenses for ongoing restructuring measures and affected all divisions and functional areas. Net income fell by 8.2 percent to € 2 billion, while core earnings per share decreased by 4.4 percent to € 2.82.

Bayer has confirmed its currency-adjusted forecast for full-year 2024 (i.e. based on the average monthly exchange rates in 2023). However, the negative impact from anticipated currency effects has increased based on the closing rates as of March 31, 2024. Applying the rates on that closing date instead of December 31, 2023, leads to a reduction in the forecast for EBITDA before special items from between € 10.4 billion and € 11.0 billion to between € 10.2 billion and € 10.8 billion.