The Bayer Group had a very successful start to 2022. “We achieved outstanding sales and earnings growth, with particularly substantial gains for our agriculture business,” said Werner Baumann, Chairman of the Board of Management, on Tuesday as he presented the quarterly statement for the first quarter of 2022. “Our forecast going forward this year remains confident despite the great uncertainties, including the stability of supply chains and energy supplies, and we confirm the currency-adjusted outlook for the full year published in March.”
Crop Science increases earnings by around 50 percent
First quarter of 2022
Sales at Crop Science increased significantly in the first quarter of 2022, rising by 21.6% (Fx & portfolio adj.) to €8,447 million thanks to substantial price and volume growth. Bayer Crop Science achieved double-digit percentage growth in all regions.
Corn Seed & Traits posted sales gains, primarily due to price increases in all regions. We also benefited from volume gains in the Europe/Middle East/Africa, Latin America, and Asia/Pacific regions, while volumes declined in North America due to lower planted acres.
Herbicides recorded significant growth in all regions, especially in North America. Sales growth of glyphosate-based products was particularly strong due to price increases despite lower volumes. We also achieved higher volumes and prices for our other herbicide products.
Fungicides generated double-digit percentage sales growth in all regions, mainly driven by higher volumes, partially attributable to shifts in demand. We also benefited from higher prices in all regions.
Sales at Soybean Seed & Traits were level with the prior-year period. In North America, we benefited from price increases, while business was down in Latin America due to lower volumes.
Sales at Insecticides increased due to higher volumes and prices. In Latin America sales advanced through our Curbix™ product, while sales declined in North America due to shifts in demand.
Environmental Science recorded significant business growth, particularly in North America due to higher volumes and prices for glyphosate-based products.
Sales at Vegetable Seeds remained at the prior-year level. Shifts in demand from the previous quarter had a positive effect in North America, while business declined in Europe/Middle East/Africa.
The reporting unit Other recorded growth, largely due to higher prices and higher volumes in our cotton seed business.
EBITDA before special items at Crop Science increased to €3,669 million in the first quarter of 2022 (Q1 2021: €2,448 million), driven mainly by higher prices. We also benefited from higher volumes, as well as contributions from ongoing efficiency programs. By contrast, earnings were diminished by an increase in costs, particularly in the cost of goods sold, which was mainly due to high inflation. We recorded a positive currency effect of €98 million (Q1 2021: minus €252 million). The EBITDA margin before special items increased by 6.6 percentage points to 43.4%; currency effects had a dilutive effect of 0.8 percentage points.
EBIT amounted to €3,028 million (Q1 2021: €1,753 million), including special gains of €45 million (Q1 2021: special charges of €52 million). These primarily related to provisions in connection with the Roundup™ litigation as part of the glyphosate litigations.