Bayer’s Q3 Earnings Plummet 37%, CEO Urges Patience Amid Performance-Boosting Strategy

Earnings Decline:
Bayer reported a 37% decline in earnings per share in Q3, leading to a 12% drop in its stock price3.

Performance Strategy:
CEO Bill Anderson urged investors to be patient as the company executes a performance-boosting strategy outlined in March, which includes a supervisory board refresh, operating model overhaul, and management compensation changes3.

Pharma Unit Growth:
Despite overall decline, Bayer's pharma unit is growing thanks to new launches for prostate cancer drug Nubeqa and chronic kidney disease therapy Kerendia3.

Challenges Ahead:
Executives warned that 2025 could be a tough year due to currency headwinds, regulatory hurdles, and generic pricing pressures, particularly affecting the crop science division3.

Cost and Efficiency Measures:
Bayer plans to accelerate cost and efficiency measures to partly compensate for declining earnings, with discussions ongoing and an update on 2025 guidance expected when full-year earnings are reported3.

Job Cuts:
Bayer has already cut jobs to accelerate cost savings, especially across management positions, but did not commit to further layoffs3.

Pharmaceuticals Guidance:
Bayer expects to meet the top end of full-year sales guidance for the pharmaceuticals division, with expectations of net sales growth between 0% and 3%3.

Sources:

3. https://www.biospace.com/business/bayer-earnings-not-pretty-ceo-bill-anderson-admits-as-he-urges-calm