The following is a summary of the Bayer AG (BAYZF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Bayer reported Q1 sales of €13.8 billion, slightly lower than the previous year.
Core earnings per share stood at €2.82, also slightly below the previous year's earnings.
The company's free cash flow was negative €2.6 billion, which marked an improvement from Q1 of the preceding year, largely due to lower litigation payouts.
Crop Science unit sales were down by 3%, impacted by adverse weather conditions and lower glyphosate pricing, while the Pharmaceuticals business saw a 4% rise in sales largely due to strong performance from their new launched products.
Business Progress:
Both Pharmaceutical products, Nubeqa and Kerendia, are seeing growth.
Bayer introduced Iberogast to the US market after its success in Europe.
Significant reductions in management roles are expected to save approximately €500 million in 2024 and target savings of $2 billion by 2026.
As part of their Dynamic Shared Ownership, Bayer is consolidating roles and designing teams for greater impact.
Bayer's Pharmaceuticals team expects to have readouts of Kerendia's first Phase 3 study in heart failure and Nubeqa's ARANOTE trial.
Despite competition, Eylea is showing positive longevity and volume increases in most territories.
Their Consumer Health segment has globally initiated around 90 teams, with one team reducing the product launch time from 36 months to 9 months in the ASEAN region.
Bayer is also working towards improving its supply situation for better product availability and gaining market share in key products.
More details: BAYER AG IR
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