Bayer AG

Sales Performance: Bayer reported flat net sales year-over-year, achieving a core EPS of €2.49, which is in line with guidance. The company remains on track to meet its full-year EPS outlook of €4.50 to €5 at constant currencies. A decline in Crop Science sales by 3% was notable, impacted by regulatory issues, while Pharmaceuticals grew by 4% driven by strong performances from new products like Nubeqa and Kerendia.

Free Cash Flow and Debt: Free cash flow showed a negative €1.5 billion, but this was an improvement of €1 billion from the previous year, with a strong expectation to land within the full-year guidance. Corporate debt increased by €1.7 billion to €34.3 billion since year-end 2024, but is down by about €3 billion year-over-year, indicating improved financial health over the long term.

Crop Science Challenges and Outlook: Bayer anticipates challenges in Crop Science due to regulatory impacts on products like Dicamba and glyphosate, leading to a forecast of mid-single-digit sales declines earlier in the year. However, growth is expected in Q2 with strong efficiency gains and recovery in Latin America. The company is monitoring the ongoing drought in Europe closely, which could affect the demand for fungicides and insecticides.