News Bayer
Substantial turnover growth and black numbers again for Bayer
The German chemical group Bayer has had a good year. The company is in the black and turnover has increased by almost 9% in the past financial year. This is evident from the presentation of the annual figures today, Tuesday 1 March.
The group's turnover in 2021 will amount to €44,081 billion. That is a growth of 8,9% compared to 2020 when turnover amounted to €41,4 billion. The EBITDA before exceptional items (gross profit) stands at €2021 billion in 11,179, a decrease of 2,5% compared to last year. Net profit for 2021 will be €1 billion. Last year, the group recorded a loss of €10 billion, largely due to a settlement surrounding the Round-up cases in the US. "Despite significant investments and research and development and the introduction of new products to the market, we have almost succeeded in compensating for negative currency movements and substantial cost increases," said Bayer CEO Werner Baumann during the presentation.
Bayer's Crop Science division had a turnover of €2021 million in 20.207, a growth of 11,1% compared to last year. EBITDA rose 3,6% to €4,698 billion. Crop Science's profit before interest and tax even increased by 35,1% compared to last year, to reach €2021 billion in 2,42. According to Rodrigo Santos president of Crop Science division, 2021 was an excellent year and Bayer has made significant progress in its innovation pipeline. "A good example of this are the RNAi-based agents against the corn rootworm VTPRO4 and Smartsatx in Brazil and the US. We are truly the first in the industry." Third generation herbicide resistant soybeans Intacta and 2 Xtend with 800.000 acres and Xtend Flex with 16 million acres also performed well in the US market.
Digitization
Digital solutions for agriculture are another branch that did well according to Santos. The Climate FieldView platform has registered over 180 million acres. Bayer has entered into partnerships with Amazon and Microsoft for the digitization of agriculture. “The digital platform also enabled us to make very strong progress on the Carbon Farming Program that allows farmers to capture carbon in the soil by adopting sustainable farming techniques, helping to combat climate change. More than 2.600 Farmers in ten countries around the world are now participating in the Carbon Farming Program," Santos said during the annual figures presentation. For 2022, Bayer expects Crop Science revenue to grow by 7% with an EBITDA increase of 25% to 26%.
The war in Ukraine was also discussed during the meeting. "For our part, we are doing everything we can to support our colleagues and their families in Ukraine," Baumann said. Likewise, we are working to ensure the delivery of our products to the population, including essential medicines and agricultural products to ensure food security. That is true of Ukraine, but our concern and commitment to food security goes far beyond, as Ukraine is one of world's largest grain exporters."
Jurphaas Lugtenburg
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