The Bayer Group maintained its strong business performance across all three divisions in the third quarter. "Despite rising inflation and global supply chain problems, we were again able to boost sales and earnings," said Werner Baumann, chairman of the Board of Management, when presenting the company's quarterly statement on Tuesday. Crop Science in particular continued its growth trajectory, and Pharmaceuticals and Consumer Health also saw sales rise against the prior-year quarter. Baumann confirmed the group outlook for 2022. "We are right on track to achieve the full-year financial targets that we raised in August."

Third-quarter Group sales rose by 5.7percent to 11.28 billion euros ($11.28 billion) on a currency- and portfolio-adjusted basis (Fx & portfolio adj.). Sales benefited from positive currency effects of 940million euros (Q3 2021: 67million euros). EBITDA before special items increased by 17.3percent to 2.451billion euros. This figure included a negative currency effect of 78million euros (Q3 2021: 44million euros). EBIT came in at 1.199billion euros (Q32021: 530million euros) after net special charges of 153million euros (Q3 2021: 694million euros). Net income amounted to 546million euros (Q32021: 85million euros), and core earnings per share advanced by 7.6percent to 1.13euros.

Sustained growth momentum at Crop Science

Sales in the agricultural business (Crop Science) rose by 8.4 percent (Fx & portfolio adj.) to 4.692billion euros. The division achieved double-digit percentage gains in Latin America and Europe/Middle East/Africa. Sales at Herbicides advanced by 44.9percent (Fx & portfolio adj.) thanks to price increases, as business continued to benefit from a positive market environment, especially in Latin and North America as well as in Europe/Middle East/Africa. Insecticides sales were up 9.1 percent (Fx & portfolio adj.), mainly driven by business in Latin America. Sales at Corn Seed & Traits decreased by 15.8percent (Fx & portfolio adj.) in the third quarter, but are up overall this year. In the July-September period, higher prices in Latin America only partly offset the impact of lower licensing revenues and higher returns due to lower acreages in North America. Soybean Seed & Traits business expanded in Latin America thanks to higher volumes and prices.

EBITDA before special items at Crop Science advanced by 33.5percent to 629million euros, primarily driven by its good business performance. The division also benefited from contributions from ongoing efficiency programs. The EBITDA margin before special items increased by 1.2 percentage points to 13.4 percent.

New products and Eylea™ drive growth at Pharmaceuticals

Sales of prescription medicines (Pharmaceuticals) increased by 2.9percent (Fx & portfolio adj.) to 4.955billion euros. Bayer continued its successful market launch of new products, especially Nubeqa™ and Kerendia™. Sales of the cancer drug Nubeqa™ nearly doubled thanks to significant gains in all regions. The division also received milestone payments via its cell and gene therapy (C>) and chemoproteomics platforms. Sales of the ophthalmology drug Eylea™ rose by 4.3percent (Fx & portfolio adj.). Business was up in all regions, with volumes mainly increasing in Europe and China. Sales of the long-term contraceptives in the Mirena™ product family grew particularly significantly, rising 20.5 percent (Fx & portfolio adj.) thanks to higher volumes and demand shifts in the United States. The division's radiology business registered higher volumes in all regions, with sales of the Gadovist™ and Ultravist™ product lines climbing 16.6percent and 22.1 percent (Fx & portfolio adj.), respectively.

EBITDA before special items at Pharmaceuticals advanced by 15.2percent to 1.573billion euros. Earnings primarily benefited from the growth in sales, as well as income from the sale of non-core businesses. These positive effects more than offset ongoing investments in marketing new products as well as research and development expenses. The EBITDA margin before special items increased by 1.6 percentage points to 31.7 percent.

Consumer Health grows sales and earnings

Sales of self-care products (Consumer Health) advanced by 4.4percent (Fx & portfolio adj.) to 1.548billion euros, marking a continued strong growth trajectory across all regions against a very strong prior-year quarter. Sales in the Allergy & Cold category rose by 16.6percent (Fx & portfolio adj.) due to continuously elevated cold incidence rates and the positive momentum behind the launch of the Astepro™ antihistamine nasal spray. The division also registered double-digit growth in the Dermatology category, with sales rising 14.3percent (Fx & portfolio adj.), particularly driven by the new product Bepanthen™ Derma.

EBITDA before special items at Consumer Health climbed by 9.1percent to 336million euros. This was particularly due to increased sales, operational efficiencies as well as the division's active price management.

Major strides in innovation and sustainability

The third quarter also saw some good news in terms of innovation, especially at Pharmaceuticals. The division has launched a clinical Phase III program investigating the use of the active ingredient asundexian in the prevention of strokes, marking one of the largest Phase III projects it has ever conducted. Progress has also been made with the development candidate aflibercept 8 mg, which was compared with Eylea™ containing 2mg of aflibercept in two pivotal studies. These trials showed that the dosing interval was able to be extended to 16 weeks in two different indications with aflibercept 8mg, compared with eight weeks for Eylea™, while maintaining a consistent safety profile.

Bayer is also making good progress in the field of sustainability. MSCI has upgraded its environmental, social and governance (ESG) rating for Bayer from BB to A, marking an important milestone in the company's efforts to strengthen its ESG profile. The improved rating was partly thanks to a reevaluation of the alleged environmental risks presented by genetically modified organisms as well as the additional disclosure of relevant data to investors and rating agencies.