Bayer's revenue and market capitalization

  •   DEHOUI Lionel

Founded in 1863 and based in Leverkusen, Germany, Bayer is a German pharmaceutical and chemical company. It is one of the world's leading specialists in the development, production and sale of pharmaceutical products. In 2021, the group's business was revived after the Covid-19 crisis. Find out in this article about the annual results for the year 2021.

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Bayer's revenue and market capitalization
Copyright: Sebastian Rittau

Results for the first quarter of 2021

After a difficult year in 2020 due to the coronavirus health crisis, the Bayer Group returned to growth at the beginning of 2021. In the first quarter, the German chemical company took advantage of the recovery in its business to record good performances. This is illustrated in particular by the strong increase in its net profit over this period.

In the first three months of the 2021 financial year, the company recorded a net profit of 2.09 billion euros (up 40.3% on the previous year), at the same time. Operating profit (Ebit) amounted to 3.08 billion euros, up 23.4% year-on-year.

For the quarter as a whole, the company's turnover amounted to more than 12 billion euros, up by 2.8% (in organic terms). Over this period, the chemical group recorded an Ebitda (exceptional items) of 4.12 billion euros, down 6.2%. This result was penalised by exchange rate effects.

In Q1-2021, the pharmaceutical division recorded an operating profit of EUR 1.36 billion, up 25.8% year-on-year. This upward trend was also observed in the agrochemicals division. The operating profit of the agrochemicals division increased by 16.9 % in the quarter under review.

In contrast, the self-medication division continued to be negatively impacted by the health crisis. As a result, its operating profit fell by 23.6% in the period January to March 2021.

 

Quarterly review in the second quarter of 2021

In the second quarter of 2021, Bayer Group's business was adversely affected by US legal proceedings against glyphosate. This forced it to post a huge net loss of €2.3 billion over this period. In reality, these losses are related to additional provisions of €4.5 billion made in the context of the glyphosate lawsuits.

As a reminder, in Q2-2020, the Leverkusen-based group had recorded a huge loss of €9.5 billion, due to the Covid-19 epidemic and the group's legal troubles. The operating profit (Ebit) was in the red at around 2.3 billion euros in the second quarter of 2021.

On the other hand, the chemical group recorded an improvement in its turnover for the quarter as a whole. 10.85 billion, up 12.9% year-on-year. In addition, the pharmaceutical division saw its revenues increase by 16.2% between April and June 2021.

The agrochemicals division recorded a 10.6% increase in sales for the quarter as a whole. The self-medication business grew by a remarkable 12.8% in Q2 2021.

 

Performance in the third quarter of 2021

The Bayer Group returned to profit in the third quarter of 2021, after the heavy loss in the previous quarter. The company's sales for the period as a whole amounted to €9.78 billion, up 14.3% year-on-year. This performance was driven by business growth in all of the company's divisions.

Between July and September 2021, the German pharmaceutical and chemical giant posted a net profit of €85 million, following a net loss of €2.7 billion in Q2-2021. In the third quarter, the group's operating profit (Ebit) was €530 million, compared to a loss of €9.4 billion in the previous year.

In addition, during the publication of its quarterly results, the chemical group Bayer was optimistic in its forecasts for the whole of 2021. In particular, it expects to achieve annual sales growth of 7 %.

 

Overall picture of the group's business in the last quarter of 2021

In percentage terms, the chemical group recorded a financial return of 3.08% on all sales in 2021. This is the balance sheet as at 31 December 2021. In the previous year (2020), the financial loss was 34.19%.

The company accumulated a turnover of 11.11 billion euros in the last quarter of 2021. In 2020, in the same period, this figure was 9.33 billion euros. This represents a year-on-year increase of 19.07%. For the year 2021, the turnover of the Bayer chemical group rose to 44.08 billion euros from 41.4 billion euros in 2020. This represents an increase of 6.47% over the period.

At the end of December 2021, the group's net result was positive and amounted to 10.22 billion dollars. This is a real change compared to 2020 when the result was negative by -$10.4 billion. Similarly, the operating result went from a negative value (-$16.16 billion) in 2020 to $3.35 billion in 2021. The group's operating result is therefore out of the red.

The group's operating margin is up to 7.61% at the end of the last quarter of 2021. The previous year (2020), in the same period, the operating margin was negative (-39.06%).

 

About Bayer's dividend and market capitalization

The Bayer Group is one of the companies that pays a coupon to its shareholders at the end of each financial year. For the year 2021, the company's Board of Directors has decided to pay a dividend of €2 per share.

In addition, Bayer has an outstanding presence on the stock exchange. The company is listed on the Prime Standard of the Deutsche Boerse AG. It is also included in the DAX 30 stock index. As of November 2021, it has a market capitalisation of over 40 billion euros.

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